EXCEL SOLVER :
Excel solver is a part of an information system which organizes data in a tabular grid. Simple lists may beorganized, but the data can also be processed using advanced tools built into the information system .
Solver’s basic purpose is to find a solution –
that is, values for the decision variables in our model
thatsatisfies all of the constraints and maximizes or minimizes the objective cell value .Solver uses acomputer's fast processing power to subject any mathematical scenario to rapid data analysis for purposes of finding a solution to complicated formulas.
The kind of solution you can expect, and howmuch computing time may be needed to find a solution, depends primarily on three characteristics of your model:
Model size (number of decision variables and constraints, total number of formulas)
The mathematical relationships (e.g. linear or nonlinear) between the objective and constraintsand the decision variables
The use of integer constraints on variables in our model
With Solver, one can find an optimal (maximum or minimum) value for a formula in one cell
, or limits, on the values of other formula cells on aworksheet. Solver works with a group of cells
that participate incomputing the formulas in the objective and constraint cells. Solver adjusts the values in the decisionvariable cells to satisfy the limits on constraint cells and produce the result you want for the objectivecell.The objective, constraint and decision variable cells and the formulas interrelating them form a
; the final values found by Solver are a
for this model. Solver uses a variety of methods, from linear programming and nonlinear optimization to genetic and evolutionary algorithms,to find solutions.
ADVANTAGES: EXCel solver is the most common and one of the most effective ways tomanage business and supply chain operations. It provides the flexibility to address the issues
unique to one’s
business in a standard and easy to understand format.
The Solver functionality provides the power to find optimal o
r “best” solutions to meet
business objectives like maximizing profit, minimizing cost or achieving a specific businessgoal.
Very easy to prepare data within Excel and to post process the results for presentation.
Solver is not limited to linear-only constraints, thus component balance (bi-linear)reconciliation problems can be handled, although they were not tested here.
Solver is not limited to equality constraints, thus for example all estimates can be forced to bepositive.