We’ll use Solver to find out the number of units to maximize the total profit. Column B displays the number of units of each product. On Mac, Solver is added by going to Tools then Add-ins and selecting Solver.xlam from the menu. A Solver button will appear in the Analysis section of the Data tab in every version. How to use Solver in Excel with examples. When defining a problem for the Excel Solver. Apps for Excel for Mac. Profit per unit for each product is shown in Column C, and Column D contains formulas. These formulas calculate the total profit for each product by multiplying the units by the profit per unit. You don’t need to be a business graduate to realize that the highest profit comes from Product C. Therefore, to maximize total profit from production, the production management can produce only Product C. But if things were so straightforward, you wouldn’t need tools like Solver. This company has some constraints that must be met to produce products: • The combined production capacity is 300 units per day. • The company needs 50 units of Product A to fill an existing order. • The company needs 40 units of Product B to fill an expected order. Banner making software for mac. • The market for Product C is relatively limited. So the company is not interested in producing more than 40 units of this product per day. Read More: These four constraints make it a real problem and a bit more challenging. In fact, it’s a perfect problem for using Solver technique. The procedure of using Excel Solver Before going more detail, here’s the basic procedure for using Solver: • First of all, set up the worksheet with values and formulas. Make sure that you have formatted cells correctly; for example, maximum time you can’t produce partial units of your products, so format those cells to contain numbers with no decimal values. • Choose Data ➪ Analysis ➪ Solver. The Solver Parameters dialog box will appear. • Specify the target cell. Target cell also is known as objective. • Specify the range that contains the changing cells. • Specify the constraints. Link video into powerpoint for mac. • If necessary, change the Solver options. • Let Solver solve the problem. Tackling this example To solve this example using Solver, choose Data ➪ Analysis ➪ Solver. The Solver Parameters dialog box will appear. Set up this dialog box in the following steps to solve our problem. Note: Click this link. In this example, the target cell is D6. D6 cell calculates the total profit for three products. • • Enter D6 in the Set Objective field of the Solver Parameters dialog box. • We’re going to maximize the value of cell D6, so select the Max option button. • Specify the changing cells in the By Changing Variable Cells field. Our changing cells are B3: B5. ![]() • In this step, we’ll specify the constraints on the problem. The constraints are added one by one and appear in the Subject to the Constraints list. To add a constraint, click the Add button. The Add Constraint dialog box appears as shown in the following figure. This dialog box has three parts: a Cell Reference, an operator, and a Constraint value. • To set the first constraint (our first constraint is: the total production capacity is 300 units), enter B6 as the Cell Reference, choose equal (=) from the drop-down list of operators, and enter 300 as the Constraint value. Solver displays this Solver Result dialog box when it finds a solution to your problem. At this point, we have the following options in our hand: • You can keep the solution that Solver has found. • You can restore the original changing cell values. • You can create any or all of the three reports that show what Solver did. • Click the Save Scenario button to save the solution as a scenario so that Scenario Manager can use it. From the Reports section of the Solver Results dialog box, you can select any or all of three optional reports to produce reports. After selecting a report (or all), click OK. Excel will create each report on a new worksheet, with an appropriate name. The following figure shows an Answer Report. Answer Report, one of three reports that Solver can produce. Observe the Constraints section of the report. You will find that three of the four constraints are binding, which means that these constraints were satisfied at their limit. With this simple example, we have understood how Solver works. Sometimes, you can solve this type of problem manually, but this is not always the case.
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