Application of Excel in the Operation Management of the Group Company

Abstract

In the operation management of the group company, we often need make decisions about production, manufacturing, transportation, investment and other programs based on the group's profit maximization. In other words, we often need solve optimization problems such as maximum profit, minimum cost, etc.. In the manual state, the graphical method and the simplex method are usually used to solve this kind of problem. But the graphical method is not accurate enough, and the simplex method is very complicated. Through an example, the paper introduces the application of Excel function and solver tool in the decision-making about production and transportation programs. The modeling ideas and solving methods can be generalized to other decision-making problem about maximum profit or minimum cost. This will help improve greatly the company's decision-making efficiency.