Microsoft Office

Analyzing Data Using Goal Seek and Solver 37
A simple Solver example
I start with a simple example to introduce Solver and then present some increasingly complex examples to
demonstrate what this feature can do.
Figure 37.3 shows a worksheet that is set up to calculate the profit for three products. Column B shows the
number of units of each product, Column C shows the profit per unit for each product, and Column D contains
formulas that calculate the total profit for each product by multiplying the units by the profit per unit.
ON the CD-ROM
This workbook, named three products.xlsx, is available on this book’s CD-ROM.
FIGURE 37.3
Use Solver to determine the number of units to maximize the total profit.
You don’t need an MBA degree to realize that the greatest profit comes from Product C. Therefore, in order
to maximize total profit, the logical solution is to produce only Product C. If things were really this simple,
you wouldn’t need tools such as Solver. As in most situations, this company has some constraints that must
be met:
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The combined production capacity is 300 total units per day.
The company needs 50 units of Product A to fill an existing order.
The company needs 40 units of Product B to fill an anticipated order.
Because the market for Product C is relatively limited, the company doesn’t want to produce more
than 40 units of this product.
These four constraints make the problem more realistic and a bit more challenging. In fact, it’s a perfect
problem for Solver.
I go into more detail in a moment, but here is the basic procedure for using Solver:
1. Set up the worksheet with values and formulas. Make sure that you format cells logically; for
example, if you can’t produce partial units of your products, format those cells to contain numbers
with no decimal values.
2. Choose Data ➪ Analysis ➪ Solver to bring up the Solver dialog box.
3. Specify the target cell.
4. Specify the range that contains the changing cells.
5. Specify the constraints.
6. Change the Solver options, if necessary.
7. Let Solver solve the problem.
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