1. Linear Programming with Excel Solver

2.  Use Excel’s Solver as a tool to assist the decision maker in identifying the optimal solution for a business decision.  Business decisions are often subject to constraints or business rules to solve business problems.  Solver can be used for decisions, such as, maximizing profit or reducing costs.

3.  Determine the changing cells. These are the variables that Excel will use to determine the optimal result.  Wyndor Glass Co. Example

4. Plant Production Time per Batch (hrs) Production Time Available per Week Product1Product2 110≤ 4 202≤ 12 332≤ 18 Profit per Batch$3,000$5,000

5.  What are the decisions to be made? What are the variables?  Production Rate (how much to produce) of Products 1 and 2  What are the constraints?  Hours of production time used (per week) cannot exceed the number of available hours at each plant  What is the overall measure of performance?  Total profit per week from Products 1 and 2 (objective is to maximize)

6. Set up in Excel worksheet

7. What are the decisions to be made? What are the variables? Production Rate (how much to produce) of Products 1 and 2

8. What are the constraints? Hours of production time used cannot exceed the number of available hours at each plant

9. What is the overall measure of performance? Total profit per week from Products 1 and 2 (objective is to maximize)

10. Enter the target cell, changing cells, and constraints into the Solver Parameters window.