Template: Linear Programming Optimization in Excel


Making the right decisions about optimal output can be challenging for businesses, especially with limited resources like materials, labor, and time. Linear programming (LP) helps companies may help the best decisions to maximize profits while staying within their resource limits.

What is Linear Programming?

Linear programming is a method that helps find the best outcome, such as the highest profit, considering certain limitations or constraints.

How Does it Help in Decision-Making?

For example, when a company produces several products, each needing different amounts of resources, LP helps determine the most profitable mix of products. Here’s a simplified process:

  1. Set the Goal: The goal is to maximize profit from all products.
  2. Identify Constraints: Constraints are the available resources like materials and labor; production cannot use more products than available.
  3. Ensure Non-Decimal/Non-Negative Production: Neither a decimal nor a negative number of products can be produced, in general.

Linear programming is a useful tool that helps identify potentially more optimal decisions by balancing resources and goals effectively. Below is attached a simple template that can be modified for the use. In case of making any updates to the template, please refer to the screenshot within the file and consider modifying Solver appropriately.

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