Much of Operations Management involves problem solving abilities. One way to solve problems is by using Excel's Linear Programming to minimize cost or maximize profits.
It is relatively simple to input the data then run the program. The majority of the problems occur when it is time to call on the limiting criteria.
It is very important to first model the criteria before typing it in manuscript form to Excel.
One important factor contributing to a decision model's success is the thought process behind its formulation and how well the manager uses the marketing-mix variables to formulate the model. It's important to focus on the actual problem at hand and then formulate the model with the variables directly related to the problem. Otherwise, implementation errors are inevitable.
Case in point, the problems with linear programming do not lie in the technology, for there will always be an algorithm for every query. However, if the formulation is off even a little bit, the result could be malicious.
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Yes, the biggest problem of LP is in the formulation. Many solvers (above and beyond excel)exist, but garbage in leads to garbage out --- optimal garbage, but garbage none the less.
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