OpenSolver is a great Excel Add-in that solves optimization models. The following article will describe how to solve a Linear Programming model using this tool (first you must Download and install OpenSolver in Excel). For educational purposes we will consider a linear programming model with two decision variables and four constraints, nevertheless you can easily extend […]

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## Production and Inventory Problem solved using Solver in Excel

Linear Programming allows us to tackle various real life problems, some of which we have already gone over in previous articles, such as the Transportation Problem, the Product Mix Problem and the Diet Problem. In the following article we will analyze a different classic application known as the Production Inventory Problem. This problem is essentially […]

## What does a Shadow Price of Zero mean in Linear Programming

As we have discussed in previous articles, the Shadow Price of a constraint represents the rate of change of the optimal value as a result of a marginal change in the right-hand side of a constraint. “Marginal” is understood as a modification that does not change the geometry of the problem, that is to say, […]

## How to Calculate the Shadow Price of a Constraint

The Shadow Price of a constraint in Linear Programming indicates how much the value of an objective (optimal) function changes due to a marginal variation in the right-hand side of a constraint. It is assumed that the rest of the model’s parameters remain constant. It should be noted beforehand that the Shadow Price can be […]

## 10 Things You need to know about Simplex Method

The Simplex Method was developed by George Dantzing in 1947. It is without a doubt the most popular algorithm when it comes to solving a Linear Programming (LP) model, and it plays a major role in the introduction to Operations Research (OR). Today we’re presenting a summary of 10 main concepts about the use and […]