An example of how to use Microsoft Excel Solver

Imagine that you are a firm with two different production facilities. You need to optimize the use of b
Your task is to find the solution that miximizes the profits

To do this task you need to set up the solver correctly. The following steps are necessary:
1. Enable the solver. This step depends on the version of Excel you are using so the best is to search o
2. In excel 2010 and later: Go to the DATA tab. On the right you will find the solver button. Click on it
3. Now you need to specify the problem you want to solve.
3a) The objective is to maximize profits. Select the blue profit cell and select the max radio button
3b) Now we need to set up some constraints. The first is that profits should be at least 1 Euro.
3c) The second is that the units used should be at least 1 Unit
3d) The third is that the units used may not exceed the maximum of input units available (237)
4) Now set the two cels that the solver is allowed to modify to the two yellow cells in this document.
5) Click solve

The correct solution should be:

Units 1: 1.78
Units 2: 3.13
Total profit: 165.25

Plant 1 Fixed costs 50

Input (per unit) 5.3

Plant 2 Fixed costs 30

Input (per unit) 4

Sales price per unit 100

xcel Solver

es. You need to optimize the use of both in order to maximize profits

owing steps are necessary:

ou are using so the best is to search online for a tutorial for your version.
will find the solver button. Click on it

ll and select the max radio button

ofits should be at least 1 Euro.

m of input units available (237)

he two yellow cells in this document. Also, use the GRG Nonlinear solver

Input units available 237

Units plant 1: 0
Cost plant 1: 0

Units plant 2: 0
Cost plant 2: 0

Total units used 0

Total cost 0

Income 0

Profit 0