What Can Pom-QM Do?

====================================================

Introduction

----------

Pom-QM is a powerful software tool designed for linear programming problem-solving with Excel add-in functionality. In this tutorial, we will explore how to use Pom-QM to tackle real-world transportation problems.

Background and Problem Statement

--------------------------------

Finnish Furniture manufactures tables in three cities: Reno, Denver, and Pittsburgh. The finished products are then shipped to retail stores located in Phoenix, Cleveland, and Chicago. To optimize the logistics process while minimizing costs associated with transporting goods across long distances, we need a reliable method for determining optimal transportation routes.

Problem Formulation

----------------

Let's define our variables:

- Dij : Cost of shipping one unit from city i to j (in dollars)

- Sj : Demand at store j (number of units)

Objective Function:

Minimize: ∑(∫Dikxik) + (∫DiSj - Bj))

where x is the decision variable representing the number of tables shipped from city i to retail outlet j.

Constraints:

1. Supply constraints for each city:

∑(−Di+Sj)xij = 0, ∀i=1,2

2. Demand constraints for each store:

∑Sjxij - Bj = 0, ∀j=1,2

3. Non-negativity constraint to ensure non-negative values of xij and Sj.

Solution Using Pom-QM

---------------------

To solve this transportation problem using Pom-QM with Excel add-in functionality follow these steps:

### Step 1: Prepare Data in Microsoft Excel Sheet

Open a new excel sheet and enter the following data into separate columns A through D:

- Column A (Source): Reno, Denver, Pittsburgh

- Column B (Destination): Phoenix, Cleveland, Chicago

- Columns C & E: Demand at each destination city / Supply from each source city respectively.

For example,

| Source | Destination|Demand/Supply|

--- --------- ------- A B C D

### Step 2: Install Pom-QM Add-in and Set up Model Parameters in Excel

1. Download the latest version of Pom-QM from its official website.

2. Follow the installation instructions provided within the downloaded zip file to install it as an add-in for Microsoft Excel.

3. After successful installation, launch MS Excel application.

4. Go to 'File' -> 'Options'. In the left-hand sidebar under 'Add-ins' tab click on 'Manage...' button at bottom right corner and then checkmark/enable both 'Pom-QM - LP Solver Engine' & 'POMSOLVER.XLL'.

5. Now go back to your MS Excel worksheet where you have entered all necessary data.

6. Click 'Tools' -> 'Add-ins'. In the left-hand sidebar under Pom QM section click on 'Solver Options...' button at bottom right corner of the dialog box that appears.

7. Under Solver Parameters:

- Choose GRB Andersen-Hoff problem type from drop-down list in Problem Type field

- Check all boxes next to 'Solve Subject To' and enter constraints as described earlier above.

8. Click 'OK' button once done with entering necessary parameters.

9. Finally, click on the “Solve” Button within Pom QM toolbar or go through Analysis -> Solver group under Data tab in Excel ribbon bar & press OK when prompted for solution method selection popup dialog box appears to obtain optimal solutions using linear programming techniques implemented by Pom-QM software tool!

-------

In conclusion, we have successfully demonstrated how to use the powerful optimization capabilities of Pom-QM with Microsoft Excel add-in functionality to tackle real-world transportation problems efficiently and effectively. By following these simple steps outlined above, you too can leverage this versatile tool for solving complex linear programming challenges in various fields such as finance, operations research etc., thereby maximizing profits while minimizing costs associated with resource utilization across different business processes!

What can pom qm do