Product Mix OptQuest Solution

Note:

Except where indicated, this example uses the recommended Crystal Ball run preferences. See Setting Crystal Ball Run Preferences.

  To run the optimization:

  1. With Product Mix.xls open in Crystal Ball, set the number of trials in Crystal Ball to 2000, since tail-end percentile requirements need more accuracy.

  2. Start OptQuest from the Crystal Ball Run menu and click Next to view each wizard panel:

    • The objective is to maximize the mean of gross profit.

    • The only requirement ensures that at most a 5% chance exists of exceeding the casing limitation.

    • This problem has five decision variables (one for each product), and three constraints (one each for availability of veal, pork, and beef).

  3. On the Options panel, click Advanced Options and select Automatically stop after 500 non-improving solutions.

  4. Run the optimization.

Figure 33, Product mix model optimization results shows the OptQuest solution. The optimal mean profit is $11,695.62, obtained by producing 2800 pounds of bratwurst, 1310 pounds of Italian sausage, 1280 pounds of pepperoni, 1000 pounds of Polish sausage, and 500 pounds of summer sausage.

Figure 33. Product mix model optimization results

Product mix model optimization results, as described in the preceding paragraph.

Figure 34, Product mix – remaining casing forecast chart shows the Casing Remaining forecast chart for these decision variables, verifying that the chance of running out of casing is indeed at most 5%.

Figure 34. Product mix – remaining casing forecast chart

Product mix – remaining casing forecast chart.