Loading a Solver model is just a matter of providing Excel with the range of cells where your model is saved.

But did you know that it also has a tool that can help you find optimal solutions for decision problems.

It is primarily purposed for simulation and optimization of various business and engineering models.

Apart from that, it can handle smooth nonlinear and non-smooth problems.

Please see Excel Solver algorithms for more details.

For example, it can help you maximize the return of investment, choose the optimal budget for your advertising campaign, make the best work schedule for your employees, minimize the delivery costs, and so on.

In Excel 2007, click the Microsoft Office button, and then click Excel Options.

If you have another Excel version, the screenshots may not match your version exactly, although the Solver functionality is basically the same.

In this example, lets find a solution for the following simple optimization problem.

For this, you need to buy a new equipment that costs 40,000, which should be paid by instalments within 12 months.

The objective can be to maximize, minimize, or achieve some target value.

To put it differently, constraints are the conditions that must be met.

You set these relationships by selecting a cell in the Cell Reference box, choosing one of the following signs:,, or, and then typing a number, cell reference cell name, or formula in the Constraint box (please see the above screenshot).

Excel will recalculate the worksheet with the last values found for the Variable cells.

First, we will find a solution for a well-known puzzle, and then solve a real-life linear programming problem.

What the Excel Solver add-in really needs are the SUM formulas that total each row, column and 2 diagonals.

More complex optimization models of this kind are used by many companies to save thousands of dollars each year.

Each warehouse has a limited supply and each customer has a certain demand.

You can do this with simple Sum formulas demonstrated in the below screenshot.

Also, insert the SUMPRODUCT formula in C12 to calculate the total cost of shipping.

If you are not sure what kind of problem yours is, you can leave the default GRG Nonlinear solving method.

In this example, the Excel Solver add-in calculated the optimal quantity of goods to deliver to each customer from each warehouse with the minimal total cost of shipping.

At that, you may want to save the most probable scenario youve already calculated and restore it at any moment.

Microsoft Excel Solver Add In For Mac