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SolverTutorialStepbyStepProductMixExampleInExcel|solver

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SolverTutorialStepbyStepProductMixExampleInExcel
EssentialSteps
TodefineanoptimizationmodelinExcelyou'llfollowtheseessentialsteps:
1.
2.
3.
4.
5.

Organizethedataforyourprobleminthespreadsheetinalogicalmanner.
Chooseaspreadsheetcelltoholdthevalueofeachdecisionvariableinyourmodel.
Createaspreadsheetformulainacellthatcalculatestheobjectivefunctionforyourmodel.
Createaformulasincellstocalculatethelefthandsidesofeachconstraint.
UsethedialogsinExceltotelltheSolveraboutyourdecisionvariables,theobjective,constraints,anddesired

boundsonconstraintsandvariables.
6. RuntheSolvertofindtheoptimalsolution.
Withinthisoverallstructure,youhaveagreatdealofflexibilityinhowyouchoosecellstoholdyourmodel'sdecision
variablesandconstraints,andwhichformulasandbuiltinfunctionsyouuse.Ingeneral,yourgoalshouldbetocreatea
spreadsheetthatcommunicatesitspurposeinaclearandunderstandablemanner.
CreatinganExcelWorksheet
AssumingthatyouhaveorganizedthedatafortheprobleminExcel,thenextstepistocreateaworksheetwherethe
formulasfortheobjectivefunctionandtheconstraintsarecalculated.Becausedecisionvariablesandconstraints
usuallycomeinlogicalgroups,you'lloftenwanttousecellrangesinyourspreadsheettorepresentthem.
Intheworksheetbelow,wehavereservedcellsB4,C4,D4andE4torepresentourdecisionvariablesX1,X2,X3,andX4
representingthenumberofpalletsofeachtypeofpaneltoproduce.TheSolverwilldeterminetheoptimalvaluesfor
thesecells.(Clickontheworksheetforafullsizeimage.)
Noticethattheprofitforeachpalletofpanels($450,$1,150,$800and$400)wasenteredincellsB5,C5,D5andE5,
respectively.ThisallowsustocomputetheobjectiveincellF5as:
FormulaforcellF5:=B5*B4+C5*C4+D5*D4+E5*E4
orequivalently,
FormulaforcellF5:=SUMPRODUCT(B5:E5,B4:E4)
IncellsB8:E11,we'veenteredtheamountofresourcesneededtoproduceapalletofeachtypeofpanel.Forexample,
thevalue15incellC9meansthat15hoursofpressingisrequiredtoproduceapalletofPacificstylepanels.These
numberscomedirectlyfromtheformulasfortheconstraintsshownearlier.Withthesevaluesinplace,wecanentera
formulaincellF8tocomputethetotalamountofglueusedforanynumberofpalletsproduced:
FormulaforcellF8:=SUMPRODUCT(B8:E8,$B$4:$E$4)
WecancopythisformulatocellsF9:F11tocomputethetotalamountofpressing,pinechips,andoakschipsused.
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2/13/2015

SolverTutorialStepbyStepProductMixExampleInExcel|solver

(Thedollarsignsin$B$4:$E$4specifythatthiscellrangestaysconstant,whilethecellrangeB8:E8becomesB9:E9,
B10:E10,andB11:E11inthecopiedformulas.)TheformulasincellsF8:F11correspondtothelefthandsidevaluesof
theconstraints.
IncellsG8:G11,we'veenteredtheavailableamountofeachtypeofresource(correspondingtotherighthandsidevalues
oftheconstraints).Thisallowsustoexpresstheconstraintsshownearlieras:
F8:F11<=G8:G11
Thisisequivalenttothefourconstraints:F8<=G8,F9<=G9,F10<=G10,andF11<=G11.Wecanenterthissetof
constraintsdirectlyintheSolverdialogsalongwiththenonnegativityconditions:
B4:E4>=0
ClickonthelinksbelowtoseehowthismodelcanbesolvedusingExcel'sbuiltinSolver(orPremiumSolver)orwith
FrontLineSystems'flagshipRiskSolverPlatformproduct.
<Backto:ProductMixExample
<<Backto:TutorialStartNext:UsingExcel'sSolver>
Next:UsingRiskSolverPlatform>

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