Submitted to:

Sir Mushtaq Ahmed

Submitted by:

Sabir Rashid 2015-ME-427

M.Irfan 2015-ME-428
Bilal Rasheed 2015-ME-429
Qamar islam 2015-ME-430
M.SUMAIR HASSAN 2015-ME-431

Mechanical Engineering Department, UET LAHORE

(Sub-campus, RCET Gujranwala)
Problem statement:
An electronic company sells its products of mouse, USB hubs, and keyboards. Details of these
products with constraints is given in following table:

Objective: Company wants to Maximize Profit by Optimizing Production mix of Mice,

Keyboards, and USB Hubs under given constraints.

Solution:
1) Excel Solver is used to fulfil the constraints while maximizing profits for given resources. First,
we calculated the total production per month, monthly profit, labor hours and production hours of
individual product and their total values are given below. But we can see, if we fulfil all monthly
demand as required, we exceed our constraints. So we need optimization.
2) For optimization (maximize profits while maintaining constraints) we used Excel Solver. If
Solver is not visible, then go to file>options > add ins and select the Solver command to enable.
When solver command is enabled then open Solver from Data Tab which appear as
3) Set the Objective which is to maximize the profit by selecting H15 Cell.
4) Add the value which have to be maximize.
5) Now we added the variable cell which have to be vary.
6) For the addition of constraint, we clicked on add. First we added the constraint of labor hour
by providing cell reference, putting less than or equal to symbol and constraint.
7) Add the other constraints which are production hours and production unit per month same as
above and click on ok.
8) Click on solve and then clicking on keep the solver solution we get the production unit of
every product which is suitable for maximum Profit.
Summary:
Excel Solver is great in situations like one demonstrated above where we had to maximize the
profit while maintaining maximum use of resources. Instead of going for hit and trial method, we
can put in our constraints like labor hours, time for production and maximum demand. These
parameters are then optimized by Solver in order to get maximum possible profit value. In our
case, profit can be maximized if Labor hours are fully utilized (10000 hours) and Production time
is utilized near its maximum value (1655 out of 1700) as demonstrated above.
Most importantly, Solver also tells us out of all the products demands, which product are to be
produced within optimum demand along with given constraints, so we can maximize our Profit.
We can see that, if Keyboards and USB Hubs are produced to their full demand (20,000 and 9000
respectively) while Mice are produced at optimum range (4889 out of 12,000), we can maximum
our profits.