Using Linear Optimization in Analytic Solver

Analytic Solver’s optimization methods are 100% upward compatible from the Excel Solver,
meaning that any model you create in the standard Excel Solver will work in Analytic Solver.
Analytic Solver Basic restricts the number of variables and constraints to 200 and 100,
respectively.
You may use the buttons in the Optimization Model group in the Analytic Solver ribbon,
or the Premium Solver link in Excel’s Add-ins menu to create and solve your model. In the
example below, we describe both methods. Use the method you find to be easier. The user
interface for optimization models is different than the one used in the standard Solver that
comes with Excel.

Example: Using the Analytic Solver Ribbon to Create an Optimization Model

We will use the Sklenka Skis model developed in Chapter 13 and the buttons in the Analytic
Solver ribbon to set up the optimization model. We will first define the decision variables.
Highlight the cells containing your decision variables. For the SSC model, these are cells
B14:C14. In the Analytic Solver ribbon, click the Decisions button and select Normal (see Figure
1). Next, define the objective function cell. Click on cell D22, the total profit and click on
Objective. Click the Max button and select Normal from the options (see Figure 2). Finally,
define the constraints. You could define each constraint individually, but it is easier to use a
range of cells if all constraints are of the same type. So, in this example, select the range of the
constraint function cells for the fabrication and finishing constraints, D15:D16, then click the
Constraints button, choose Normal and click on the <= icon (see Figure 3). The Add Constraint
dialog appears; enter the cell references for the right-hand sides of these constraints, which are
in the range D6:D7 (see Figure 4). If you have no additional constraints to enter, click OK,
otherwise click Add. In this example, we have to add the constraint for the market mixture. If
you click Add, a blank Add Constraint dialog appears. Enter the Cell Reference for the constraint
function (cell D19), choose the type of constraint from the drop-down menu (>=), and enter the
reference or value for the right-hand side in the Constraint box (in this case, the number 0).
The completed dialog is shown in Figure 5. Since there are no more constraints to add, click OK.
If you click the Model button in the Analytic Solver ribbon, a Solver Options and Model
Specifications pane is displayed at the right of the spreadsheet, which provides a summary of
the model information (see Figure 6). You can see the specifications of the objective, variables,
and constraints in the model as a means of verifying their correctness. This pane provides
additional information for advanced users and can also be used as an optional method for
specifying the model components. You may delete this pane by clicking on the “x” in the upper
right corner or toggling the Model button in the Analytic Solver ribbon.

Using the Premium Solver Add-in to Edit and Solve Models

To solve an optimization model, we recommend that you choose the latest version of Premium
Solver from the Add-Ins tab in Excel. This brings up a Solver Parameters dialog as shown in
Figure 7. Because we have a simple linear optimization model, we want to ensure that the box
Copyright © 2020 Pearson Education, Inc.
1
2 Analytic Solver

for Make Unconstrained Variables Non-Negative is checked, and that the solving method
selected is Standard LP/Quadratic. You should not have to worry about the Options button.
When you click Solve, you will be given the option to use the Guided Mode; we recommend
skipping this. If Solver finds a solution, a Solver Results dialog similar to the one shown in Figure
13.4 for the standard Solver appears (Figure 8). Click on the reports you want to save (do not
click on the box for Outline Reports) and click OK.
From Solver Parameters dialog, you can easily edit the model. First click on the model
component you wish to edit (objective, variables, or constraints). Then use the Add, Change, or
Delete buttons to add variables or constraints, change any model component, or delete any of
them. Reset All will remove all of them.

Creating Models using the Premium Solver Add-in

Finally, you may use the Premium Solver add-in to easily create a model instead of using the
Analytic Solver ribbon. Start with your spreadsheet model and open Premium Solver from the
Add-ins menu. In the Solver Parameters dialog, click the Objective, Variables, or Constraints
headings and then click Add. Solver will bring up dialogs for you to enter the relevant
information or cell references for your model. After you use this once or twice, you will
probably find it easier than using the ribbon buttons.

Figure 1 Defining Decision Variables

Copyright © 2020 Pearson Education, Inc.

 Linear Optimization 3

Figure 2 Setting the Objective Cell

Figure 3 Defining Fabrication and Finishing Constraints

Copyright © 2020 Pearson Education, Inc.

4 Analytic Solver

Figure 4 Add Constraint Dialog

Figure 5 Adding the Market Mixture Constraint

Figure 6 Solver Options and Model Specifications Pane

Copyright © 2020 Pearson Education, Inc.

 Linear Optimization 5

Figure 7 Solver Parameters Dialog

Figure 8 Solver Results Dialog

Copyright © 2020 Pearson Education, Inc.