How to Use the Solver Add-In in Excel

Introduction:

The Solver add-in in Microsoft Excel is a powerful optimization tool that allows you to find the optimal solution to problems by adjusting input values. It's particularly useful for problems involving linear programming, allocation of resources, and achieving specific goals. In this tutorial, we'll guide you through the steps to use the Solver add-in in Excel.

Step 1: Enable the Solver Add-In (If Not Enabled)

1. Go to "File" > "Options" in Excel.

2. In the Excel Options dialog box, select "Add-Ins."

3. In the Manage box, choose "Excel Add-ins," and click "Go."

4. In the Add-Ins dialog box, check the "Solver Add-In" box, and click "OK."

Step 2: Set Up the Problem

1. Define the objective cell in your worksheet that you want to optimize (e.g., maximize profit, minimize costs).

2. Identify the changing cells or input values that affect the objective cell.

3. Enter the constraints for the changing cells, specifying any limits or restrictions.

Step 3: Open the Solver Dialog Box

1. Go to the "Data" tab in the top menu.

2. In the "Analysis" group, click on "Solver." The Solver Parameters dialog box will appear.

Step 4: Configure the Solver Parameters

1. In the Solver Parameters dialog box, set the following options:

- Set "Objective" to the objective cell you want to optimize.

- Select the optimization goal (maximize or minimize).

- Set "By Changing Variable Cells" to the input cells that you want to adjust.

- Specify any "Subject to the Constraints" by adding constraints based on your problem requirements.

Step 5: Choose the Solving Method (Optional)

1. By default, Solver uses the Simplex LP solving method, which is suitable for most linear programming problems.

2. If your problem requires a different solving method, you can choose "GRG Nonlinear" or "Evolutionary" from the "Solving Method" drop-down list.

Step 6: Solver Options (Optional)

1. You can adjust various Solver options by clicking on the "Options" button in the Solver Parameters dialog box.

2. Options include setting the maximum iteration limit, precision, and convergence criteria.

Step 7: Solve the Problem

1. Once you've configured the Solver Parameters, click "Solve" in the Solver Parameters dialog box.

2. If Solver finds a solution, a dialog box will appear, indicating whether it found an optimal solution or if it reached the iteration limit.

3. If an optimal solution is found, click "OK" to apply the solution to your worksheet.

Step 8: Review the Solution

1. After solving the problem, Excel will adjust the input values (changing cells) to achieve the optimal solution for the objective cell.

2. Review the solution in your worksheet to see the optimized values and the resulting objective value.

Step 9: Saving the Workbook

1. Save your Excel workbook to retain the Solver settings and results for future reference.

Step 10: Closing Excel

1. When you're done working on your spreadsheet, go to the "File" menu and select "Close" to exit Excel.

Congratulations! You've successfully learned how to use the Solver add-in in Microsoft Excel. The Solver tool is a valuable resource for finding optimal solutions to complex problems, helping you make better decisions and achieve desired outcomes in various scenarios. With Solver, you can handle optimization tasks and efficiently allocate resources in your spreadsheets.