Solver - Maximise 2 variables

[pauldooley]

Hi All

Is it possible to maximise 2 variables using solver?

Basically i have a sales organisation, i want to get the optimum product mix to maximise both Sales per unit sold & Profit per unit sold. Some products have high revenue but would loose money and vice versa. It is also subject to volume constraints. A basic example would be

Volume Revenue per unit Profit per Unit
Product 1 25 10 5
Product 2 50 12 4.5
Product 3 75 14 4.75
Product 4 10 8 3

The volume can only move 5% up or down. Can solver get me the optimum volume sales?

Many thanks

Paul

 

[BadgerRoad]

Hi All

Is it possible to maximise 2 variables using solver?

Basically i have a sales organisation, i want to get the optimum product mix to maximise both Sales per unit sold & Profit per unit sold. Some products have high revenue but would loose money and vice versa. It is also subject to volume constraints. A basic example would be

Volume Revenue per unit Profit per Unit
Product 1 25 10 5
Product 2 50 12 4.5
Product 3 75 14 4.75
Product 4 10 8 3

The volume can only move 5% up or down. Can solver get me the optimum volume sales?

Many thanks

Paul

You can only maximize one variable with Solver. Also, it is very possible you would have multiple solutions producing the same result.

 

[Jerry Sullivan]

Hi Paul,

I think you can achieve your objective by establishing a single variable to maximize that represents what you define to be the "optimum" balance of Sales per unit sold & Profit per unit sold.

One approach would be to create your model to calculate Profit $ (net or gross) and maximize the value of that cell given the constraints on the model's variables.