1. Using Excel Solver for Linear Optimization Problems
Wendy Pitchko
Irene Meglis
Shawn Lemko

2. What is Solver?
Solver is an Add-In for Microsoft Excel which can solve optimization problems, including multiple constraint problems.
You can maximize, minimize, or set a target value to achieve.

3. Installing Solver for Use
On Excel Menu, choose
Tools
Add-Ins...

4. Installing Solver for Use
On Excel Menu, choose
Tools
Add-Ins...
Put a Check in the Box Next to ‘Solver Add-in’

5. Using Solver On Excel Menu, choose Tools Solver
This brings up the Solver Parameters box which will be discussed next.

6. Refresher: Setting up a Linear Problem On Paper
Recall the Cargo Problem from the last homework assignment…
Our task is to maximize the profit for a shipping company using a combination of cargo weights without violating the given constraints
Revenue is $250 per ton of cargo shipped
Limit of 50,000 ft3 space and 100 tons
Three types of Cargos with different densities, maximum available amounts

7. Setting Up the Problem in Excel
The Objective Function

8. Setting Up the Problem in Excel
The Objective Function
The Decision Variables (optimal values will be calculated by Solver)

9. Setting Up the Problem in Excel
The Objective Function
The Decision Variables
The Constraints
Relationships

10. Setting Up the Problem in Excel
The Objective Function
The Decision Variables
The Constraints
Relationships
Values

11. Running Solver

12. Solver Solution

13. Understanding the Output: the Answer Report

14. Understanding the Output: the Sensitivity Report

15. The End
Thanks for your attention…