Explanation

Solver is an Excel add-in used to find the best possible result while considering constraints.

It can be used for problems such as:

  • Maximize profit
  • Minimize cost
  • Optimize production
  • Allocate resources
  • Meet business constraints

Example

A company produces:

  • Laptop
  • Monitor

It has limited:

  • Budget
  • Labour hours
  • Inventory

Solver can determine how many units of each product should be produced to maximize profit.

Basic Solver Setup

Data → Solver

Specify:

Set Objective: Total Profit
To: Max
By Changing Variable Cells: Production quantities
Subject to Constraints: Budget, inventory, labour, etc.

Solver may need to be enabled through Excel Add-ins before it appears on the Data tab.

Practice

Create a simple production optimization model with two products.

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