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Note the formula in cell C26. It uses Excels SUMIF function to sum over all fixed costs in row 14 that correspond to products produced at any positive level. This function jumps sharply if you change the value of any adjustable from 0 to a positive level or vice versa. This makes the model non-smooth (jump discontinuities), which makes the optimization much more difficult. However, Evolvers algorithms are able to handle non-smooth models quite well.
Click the Add button in the Adjustable Cell Ranges section. This brings up the following dialog box, where you can select a range of adjustable cells. When you click OK, the Model Definition dialog shows this range, and then you need to enter lower and upper bounds on the adjustable cell values. The limits 0 and 1800 work well here, because even if the company devotes all of its resources to a single product, it can never produce more than 1800 units of any product.
If you click the dropdown next to the Any label, you see the following dialog box. If you accept the Any default, this means that any values in the 0 to 1800, even decimal values, can be chosen. For this model, you should select the Integer option. Then Evolver will search only through integer values in the adjustable cells, which makes physical sense for the current model. The Discrete option could also be used. This is typically chosen to speed up the search. For example, you could choose the Discrete option with a Step Size of 5, and Evolver would try only the values 0, 5, 10, 15, and so on for the adjustable cells.
There are no other adjustable cells in this model, so you can now specify the resource availability constraint. Click the Add button in the Constraints section, and fill in the resulting dialog as follows. Note that there is an upper limit on the C20:C21 range, but there is no lower limit, so you leave the Minimum box blank.
When you click OK, the Model Definition dialog box looks as follows.
If you had other adjustable cell ranges or constraints, you would add them in the same way. Once you are finished and you click OK in this dialog box, nothing happens, at least not yet. You have only defined the optimization model. In Step 4, you will actually optimize.
one shown, which indicates when Evolver should stop. The settings shown are suggested. With these options, Evolver will stop when it has made very little progress (in maximizing profit) over the last 20,000 trials. However, you should be aware of a tradeoff here. The reason for such a large number of trials is that it gives Evolver a chance to find new solutions that are better than the best solution found so far. Otherwise, it might quit too early. On the other hand, if Evolver has already found the best solution, it will be spinning its wheels for the next 20,000 trials. Therefore, for simple models such as this one, you might want to reduce this to a smaller number, such as 5000 or even 1000, as I will do here.
Step 4: Optimize
So far, you have done most of the work. Now its time to let Evolver do the hard part, that is, it is time to let Evolver use its complex algorithms to find the values of the adjustable cells that satisfy the constraints and make profit as large as possible.
To optimize:
Click the Start button on the Evolver ribbon.
Depending on the size and complexity of the model, Evolver will spend seconds to minutes searching for the optimal solution, and you can watch its progress in Excels status bar at the bottom of the screen. This particular model requires only a few seconds. When Evolver finishes, it shows the following dialog box, and you can examine the information on the four tabs. For this model, you can simply click OK to accept Evolvers solution.
When you look at an optimal solution generated by Evolver, you should look at several things: Which adjustable cells are zero and which are positive? In this case, shirts, pants, and skirts arent produced at all; only shorts and jackets are produced at positive levels. Which constraints are met exactly? In this case, all of the cloth is used, and almost all of the labor hours are used. This is important information. It could motivate the company to purchase more of these resources if the price is right. Is the solution plausible from a business point of view? In this case, the company might not like the idea of producing only 2 out of 5 products. But if it really wants to produce more products, its profit is going to decrease, mainly because of the fixed cost of equipment. There is an important concept here, namely, that if you impose more restrictions, such as requiring that more products be produced, the objective can only get worse; it can never get better. The company must weigh these alternatives when making a final decision.
In addition, there is extensive documentation on all Evolver features under the Help dropdown list, there are many more resources on the Palisade web site www.palisade.com, and Palisade offers a range of training, consulting, and customization services. We hope these will help you to become one of the increasing number of people who use powerful optimization tools to make better decisions.