The Solver add-in in Excel is a powerful optimization tool that allows you to find the optimal solution to a problem by changing the values of a set of input variables. The Solver add-in can be used to solve a wide range of optimization problems, including linear and nonlinear programming, integer programming, and nonlinear least squares.
Here are the steps to use the Solver add-in in Excel:
Enable the Solver add-in: Before you can use Solver, you need to enable the add-in. In Excel, go to File > Options > Add-ins > Manage Excel Add-ins > Solver Add-in, and check the box next to Solver Add-in. Click OK to enable the add-in.
Define the objective function: The first step in using Solver is to define the objective function, which is the function that you want to optimize. This function should be entered in a cell, and it should be a formula that depends on the input variables. For example, if you want to minimize the cost of production given the number of units produced and the cost of materials, the objective function could be the formula for total cost: "=B2*C2+B3".
Define the input variables: Next, you need to define the input variables that will be changed by Solver to optimize the objective function. These variables should be entered in separate cells, and you should specify the allowable range of values for each variable.
Set the constraints: Constraints are additional conditions that must be satisfied when Solver finds the optimal solution. You can specify constraints on the input variables or on the value of the objective function. For example, if you want to produce at least 100 units, you could add a constraint that specifies that the value of the input variable for units produced must be greater than or equal to 100.
Set the Solver options: Solver has several options that you can customize to control how it searches for the optimal solution. You can specify the method that Solver uses to search for the solution, the maximum time allowed for the search, and the level of precision required.
Run Solver: Once you have defined the objective function, input variables, and constraints, and set the Solver options, you can run Solver to find the optimal solution. To do this, go to Data > Solver, and enter the objective function cell, the input variable cells, and the constraints in the Solver Parameters dialog box. Then click Solve to start the optimization process.
Review the results: After Solver has finished running, it will display the optimal values for the input variables, the value of the objective function at the optimal solution, and any constraints that were satisfied or violated. You can review these results to determine whether they meet your requirements, and make any necessary adjustments to the model or constraints to improve the solution.
Using Solver in Excel can be a powerful tool for optimization and decision-making in a wide range of applications. By carefully defining the objective function, input variables, and constraints, and customizing the Solver options to suit your needs, you can find the optimal solution to complex problems quickly and easily.