Spreadsheet Modeling and Excel Solver A mathematical model implemented in a spreadsheet is called a spreadsheet model. Major spreadsheet packages come with a built-in optimization tool called Solver. Now we demonstrate how to use Excel spreadsheet modeling and Solver to find the optimal solution of optimization problems. Exploring the Excel 2016 Environment Open Excel by using the Start menu or by double-clicking the Desktop icon for Excel 2016. Note the Title Bar section which has window controls at the right end, as in other Microsoft Office programs. Note that a blank workbook opens with a default file name of Book1. Quick Access Toolbar.

Excel Solver Tutorial Pdf Templates

Prerequisite Skills in Microsoft^® Excel

We will be using Microsoft Excel throughout the semester.

There are a number of excellent tools for solving optimization programs as part of a subject such as 15.053. We have selected Excel because of its broad applicability and power of expression, including a variety of graphical tools for visualizing data. For optimization, the most important 'add-in' is Excel Solver, which can be used to solve a wide range of optimization problems.

The expressiveness of Excel comes at the cost of having a long learning curve. We do not (and should not) expect a mastery of Excel, or even anything close to mastery. However, students who have little or no experience with Excel should acquaint themselves with the fundamentals in the following areas:

• Getting started with Excel
• Managing workbooks
• Managing worksheets, cells, and cell data
• Summarizing data using formulas and functions
• Formatting worksheet elements
• Working with charts (graphs)
• Printing and exporting

For its enrolled students and staff, MIT provides free use of the software tutorial service Lynda.com. Many excellent tutorials for Excel can be found there.

Course Topic Tutorials

These tutorials were provided to students for background and supplemental study. Some are intended as skill refreshers, while others are on topics not covered in class.

Tutorial 10: Branch and bound (PDF) (Courtesy of Zachary Leung. Used with permission.)

Tutorial 11: Gomory cuts and a little more (PDF) (Courtesy of Zachary Leung. Used with permission.)

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Load the Solver Add-in | Formulate the Model | Trial and Error | Solve the Model

Excel includes a tool called solver that uses techniques from the operations research to find optimal solutions for all kind of decision problems.

Load the Solver Add-in

To load the solver add-in, execute the following steps.

1. On the File tab, click Options.

2. Under Add-ins, select Solver Add-in and click on the Go button.

3. Check Solver Add-in and click OK.

4. You can find the Solver on the Data tab, in the Analyze group.

Formulate the Model

The model we are going to solve looks as follows in Excel.

1. To formulate this linear programming model, answer the following three questions.

a. What are the decisions to be made? For this problem, we need Excel to find out how much to order of each product (bicycles, mopeds and child seats).

b. What are the constraints on these decisions? The constrains here are that the amount of capital and storage used by the products cannot exceed the limited amount of capital and storage (resources) available. For example, each bicycle uses 300 units of capital and 0.5 unit of storage.

c. What is the overall measure of performance for these decisions? The overall measure of performance is the total profit of the three products, so the objective is to maximize this quantity.

2. To make the model easier to understand, create the following named ranges.

3. Insert the following three SUMPRODUCT functions.

Explanation: The amount of capital used equals the sumproduct of the range C7:E7 and OrderSize. The amount of storage used equals the sumproduct of the range C8:E8 and OrderSize. Total Profit equals the sumproduct of UnitProfit and OrderSize.

Excel Solver Tutorial Pdf

Trial and Error

With this formulation, it becomes easy to analyze any trial solution.

For example, if we order 20 bicycles, 40 mopeds and 100 child seats, the total amount of resources used does not exceed the amount of resources available. This solution has a total profit of 19000.

It is not necessary to use trial and error. We shall describe next how the Excel Solver can be used to quickly find the optimal solution.

Solve the Model

To find the optimal solution, execute the following steps.

1. On the Data tab, in the Analyze group, click Solver.

Enter the solver parameters (read on). The result should be consistent with the picture below.

You have the choice of typing the range names or clicking on the cells in the spreadsheet.

2. Enter TotalProfit for the Objective.

3. Click Max.

4. Enter OrderSize for the Changing Variable Cells.

5. Click Add to enter the following constraint.

6. Check 'Make Unconstrained Variables Non-Negative' and select 'Simplex LP'.

7. Finally, click Solve.

Result:

The optimal solution:

Conclusion: it is optimal to order 94 bicycles and 54 mopeds. This solution gives the maximum profit of 25600. This solution uses all the resources available.