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Profit Maximization Algorithm



THe Problem





A midstream oil blending startup was achieving success and was in that stage of needing more help but not able to expand staff. A time consuming part of the operation is the modeling of the source, quality and quantity of inputs that will maximize profits. In addition the strength of so many startups is the flexibility of the systems adapted to the requirements of the day, so a spreadsheet was the core business support system.



The Solution





Create a linear programing model that would take the inputs from the existing model and determine the optimal volumes from each of the suppliers that would maximize profit while attaining quality standards.



THe Technology





The solution used a Python linear programing library as the foundation of the linear programing model, which was written as an Azure Cloud Function and given a Remote State Transfer interface (RST). This cloud based function was integrated directly to the existing spreadsheet model using visual basic for applications and simple commands were presented to allow the user to activate the cloud function. The cloud function would read from the spreadsheet, perform the calculations on highspeed servers, and then download the results directly into the spreadsheet which would auto update the financial forecast.



The Business Value





The value proposition of using this tool is three fold:

  1. The users continue to use the tool and model that they are used to while being able to access the linear programing model in the cloud.
  2. The users can update and modify the financial model independently from the linear programing model.
  3. The use of the cloud server enables many users to access the model which will auto scale to meet demand.


LET US ASSIST YOUR FIRM



let our experience and success help you!


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2089 Emerald Crs Burlington Ontario L7R 1N2

289-400-9674

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