Feasibility.

pro

Deciding Product Mix Using Solver

Total Allowed GFA

Asset Class
Retail
Residential
Commercial
Hospitality*
Community

200,000 sqm
2,152,800 SqFt

Construction Cost Sale Price

(Rs/Sqft)
(Rs/SqFt)
4,000
7,500
2,500
3,200
3,500
5,000
5,000
10,000
2,000
0

Margin
(Rs/SqFt)
3,500
700
1,500
5,000
-2,000

Recommended
GFA
X1
X2
X3
X4
X5

* Hospitality are generally sold as price/key. For the sake of simplicity, we have assumed per sqft rate.
* All the cost and sale prices are just assumption.

Market Constraints
Asset Class
Retail
Residential
Commercial
Hospitality
Community

X1
X2
X3
X4
X5

Regulatory Constraints
Asset Class
Total GFA allowed
X1+X2+X3+X4+X5
Commumity
X5
Commercial
X3

<=
<=
<=
<=

=
=>
<=

Absorption (SqFt)
500,000
900,000
800,000
200,000
N/A

2,152,800
20%
35%

Some of the constraints are overlapping, so let's do a final version

Constraints
Retail
Residential
Commercial
Hospitality
Community
Total GFA (X1+X2+X3+X4+X5)

X1
X2
X3
X4
X5

<=
<=
<=
<=
>=

500,000
900,000
753,480
200,000
430,560

<=

2,152,800

we have assumed per sqft rate.

 Feasibility.pro

Deciding Product Mix Using Solver

Objective

4,875,856,000

Margin / GFA
GFA

X1
3,500.00
900,000.00

X2
700.00
191,680.00

X3
1,500.00
200,000.00

X4
5,000.00
430,560.00

X5
-2,000.00
430,560.00

1
1
0
0
0
0

1
0
1
0
0
0

1
0
0
1
0
0

1
0
0
0
1
0

1
0
0
0
0
1

Constraints

Total GFA
X1
X2
X3
X4
X5

2,152,800
900,000
191,680
200,000
430,560
430,560

2,152,800
900,000
753,480
200,000
430,560
430,560

Microsoft Excel 14.0 Answer Report

Worksheet: [Product Mix Optimization.xlsx]Problem Formulation
Report Created: 9/15/2012 1:12:37 PM
Result: Solver found a solution. All Constraints and optimality conditions are satisfied.
Solver Engine
Engine: Simplex LP
Solution Time: 0.016 Seconds.
Iterations: 5 Subproblems: 0
Solver Options
Max Time 100 sec, Iterations 100, Precision 0.000001
Max Subproblems Unlimited, Max Integer Sols Unlimited, Integer Tolerance 5%, Assume NonNegative

Objective Cell (Max)

Cell
Name
$D$3 Z

Original Value
4,875,856,000

Final Value
4,875,856,000

Variable Cells
Cell
Name
$C$7 GFA X1
$D$7 GFA X2
$E$7 GFA X3
$F$7 GFA X4
$G$7 GFA X5

Original Value
900,000.00
191,680.00
200,000.00
430,560.00
430,560.00

Final Value
900,000.00
191,680.00
200,000.00
430,560.00
430,560.00

Constraints
Cell
Name
$H$10 Total GFA
$H$11 X1
$H$12 X2
$H$13 X3
$H$14 X4
$H$15 X5

Cell Value
2,152,800
900,000
191,680
200,000
430,560
430,560

Formula
$H$10<=$I$10
$H$11<=$I$11
$H$12<=$I$12
$H$13<=$I$13
$H$14<=$I$14
$H$15>=$I$15

Integer
Contin
Contin
Contin
Contin
Contin

Status
Binding
Binding
Not Binding
Binding
Binding
Binding

Slack
0
0
561800
0
0
0

NonNegative

Microsoft Excel 14.0 Sensitivity Report

Worksheet: [Product Mix Optimization.xlsx]Problem Formulation
Report Created: 9/15/2012 1:12:37 PM

Variable Cells
Cell
$C$7
$D$7
$E$7
$F$7
$G$7

Name
GFA X1
GFA X2
GFA X3
GFA X4
GFA X5

Final Reduced Objective Allowable Allowable

Value
Cost
Coefficient Increase Decrease
900000
0
3500
1E+30
2800
191680
0
700
800
700
200000
0
1500
1E+30
800
430560
0
5000
1E+30
4300
430560
0
-2000
2700
1E+30

Constraints
Cell
$H$10
$H$11
$H$12
$H$13
$H$14
$H$15

Name
Total GFA
X1
X2
X3
X4
X5

Final
Shadow Constraint Allowable Allowable
Value
Price
R.H. Side
Increase Decrease
2152800
700
2152800
561800
191680
900000
2800
900000
191680
561800
191680
0
753480
1E+30
561800
200000
800
200000
191680
200000
430560
4300
430560
191680
430560
430560
-2700
430560
191680
430560

Microsoft Excel 14.0 Limits Report

Worksheet: [Product Mix Optimization.xlsx]Problem Formulation
Report Created: 9/15/2012 1:12:37 PM

Objective
Cell
Name
$D$3 Z

Value
4,875,856,000

Variable
Name
GFA X1
GFA X2
GFA X3
GFA X4
GFA X5

Value
900,000.00
191,680.00
200,000.00
430,560.00
430,560.00

Cell
$C$7
$D$7
$E$7
$F$7
$G$7

Lower
Limit
0.00
0.00
0.00
0.00
430,560.00

Objective
Result
1,725,856,000.00
4,741,680,000.00
4,575,856,000.00
2,723,056,000.00
4,875,856,000.00

Upper
Limit
900,000.00
191,680.00
200,000.00
430,560.00
430,560.00

Objective
Result
4,875,856,000.00
4,875,856,000.00
4,875,856,000.00
4,875,856,000.00
4,875,856,000.00