Sometimes, you can solve this type of problem manually, but this is not always the case. With this simple example, we have understood how Solver works. You will find that three of the four constraints are binding, which means that these constraints were satisfied at their limit. Observe the Constraints section of the report. Set up this dialog box in the following steps to solve our problem.Īnswer Report, one of three reports that Solver can produce. The Solver Parameters dialog box will appear. To solve this example using Solver, choose Data ➪ Analysis ➪ Solver. If necessary, change the Solver options.Specify the range that contains the changing cells.Make sure that you have formatted cells correctly for example, the maximum time you can’t produce partial units of your products, so format those cells to contain numbers with no decimal values. First of all, set up the worksheet with values and formulas.The procedure of using Excel Solverīefore going into more detail, here’s the basic procedure for using Solver: In fact, it’s a perfect problem for using the Solver technique. These four constraints make it a real problem and a bit more challenging. Read More: Resource Allocation Model in Excel Using Solver So the company is not interested in producing more than 40 units of this product per day. The market for Product C is relatively limited.The company needs 40 units of Product B to fill an expected order.The company needs 50 units of Product A to fill an existing order.The combined production capacity is 300 units per day.This company has some constraints that must be met to produce products: But if things were so straightforward, you wouldn’t need tools like Solver. Therefore, to maximize total profit from production, the production management can produce only Product C. You don’t need to be a business graduate to realize that the highest profit comes from Product C. These formulas calculate the total profit for each product by multiplying the units by the profit per unit. Profit per unit for each product is shown in Column C, and Column D contains formulas. We’ll use Solver to find out the number of units to maximize the total profit.Ĭolumn B displays the number of units of each product.

Solver for excel 2000