Linear Programming

with

Excel Solver

Use Excel’s Solver as a tool to assist the decision maker in identifying the optimal solution for a business decision.

Business decisions are often subject to constraints or business rules to solve business problems.

Solver can be used for decisions, such as, maximizing profit or reducing costs.

Determine the changing cells. These are the variables that Excel will use to determine the optimal result.

Wyndor Glass Co. Example

Plant

Production Time per Batch (hrs)

Production TimeAvailable per Week

Product1 Product2

1 1 0 ≤ 42 0 2 ≤ 123 3 2 ≤ 18

Profit per Batch $3,000 $5,000

What are the decisions to be made? What are the variables? Production Rate (how much to produce)

of Products 1 and 2 What are the constraints?

Hours of production time used (per week) cannot exceed the number of available hours at each plant

What is the overall measure of performance? Total profit per week from Products 1

and 2 (objective is to maximize)

Set up in Excel worksheet

What are the decisions to be made? What are the variables?

Production Rate (how much to produce) of Products 1 and 2

What are the constraints?Hours of production time used cannot exceed the number of available hours at

each plant

What is the overall measure of performance?Total profit per week from Products 1 and 2 (objective is to maximize)

Enter the target cell, changing cells, and constraints into the Solver Parameters window.