Module 5: Working With

Solver
Solver

 Solver is an extended version of Goal Seeking.

 Goal Seeking has a major limitation that only one of the fields can be
chosen as a changing field. Also it does not consider any constraint that
may be there for the value of changing field.
 All these limitations ha been covered by the solver in MS Excel.
 Solver is an add-in feature to MS Excel that needs to be enabled before
using.
 To enable solver go to File → Options → Add-in. Manage Excel Add-in and
then click Go. Check on the Solver Add-in check box and click ok.
 Solver is displayed in the Data Tab.
Features of Solver

 They have a single objective cell or target cell that contains the formula to
be minimized, maximized or set to a specific value.
 The objective cell formula contains reference to one or more variable cells.
Solver adjusts these cells to find the optimal solution.
 Optionally, there may be one or more constraints over the cell values that
can be specified.
Working With Solver
Types of Problems that can be solved
with Solver
 Transportation Problem
 This problem involves minimizing shipping cost from multiple manufacturing plants to
multiple warehouses while meeting demand.
 The Allocation Problem
 This problem requires minimizing employee costs while maintaining appropriate
staffing requirement.
 The product mix problem
 This problem requires generating the maximum profit with a mix of products while still
meeting customer requirements.
 The blending problem
 This problem involves manipulating the materials used for one or more products to
minimize production costs meet customer demand and maintain minimum level of
quality.
 Linear Algebra
 This problem involves solving sets of linear equations
Using Solver

1. Select Data → Solver to display solver dialog box.

2. In the Set Objective range box, enter a reference to the objective cell, i.e.
the cell with formula whose value is to be optimized.
3. In the To section, select the appropriate option button (Min/Max/Set To ).
4. Use the By Changing Variable Cells box to enter the changing cells for the
Solver.
5. Click Solve to get an appropriate solution.
6. If the solver finds a value that is ok then Click Ok . Else Click on Restore
Original Values and then click ok or just cancel.
Solver Methods of Computation

 Solver uses three different types of methods for computation:

 Simplex LP
 Used when the model in worksheet is linear, i.e. the variables are not raised to powers
and nether uses transcendent functions like sin(), cows() etc.

 GRG Nonlinear
 Used when the model is non-linear and smooth.

 Evolutionary
 Used when the worksheet model is non linear and non smooth. The sheet may contain
formulas like VLOOKUP< HLOOKUP etc.
Question

 For accompany ABC Stationary, It cells pens on certain cost and along with
certain discount. The number of pens sold for the batch is 1000.
 If the cost for manufacturing 1 pen is ₹ 6 and involves a fixed charge of
4000 for the batch.
 Compute the solution if the company requires a margin of 35% for the
batch of pens.
 Also company is not willing to spare more than 12% discount on the batch.
Also it does not want the cost of each pen to be greater than ₹10
 Use solver to achieve result for the problem.
Question

 Bank24 processes checks 7 days a week. So it needs people to work in 7

days. All the employees work 5 days a week. Some people start their week
at Monday, some at Tuesday, some at Wednesday, some at Thursday,
some at Friday, some at Saturday and some at Sunday. In total the daily
human resource requirement is as follows and the work can not be carried
without this much people:

 Depend upon this scenario, how many people should start work at each
day so that the total manpower becomes minimum? The values will be
non-negative and can not be fractions.