Solver Add-In

Excel provide a very important tool to perform

what if analysis with multiple adjustable cells. This
tool is the Solver add-in.

Excel Goal Seek feature has certain limitations. It

can solve for only one adjustable cell and it returns
only a single solution. Solver add-in extends this
capability. We can specify:
More than one adjustable cells
Some constraints on the value of adjustable cells
Solver can be a better choice for problems that have:
A target cell depends upon other cells and formulas.
Typically, you want to maximize or minimize this target
cell or set it equal to some value.
The target cell depends on a group of cells (called
changing cells) that Solver can adjust to get the result.
The solution with certain limitations, or constraints.
How to obtain solver dialog box?
1. Choose Office ➪ Options.
2. In the Excel Options dialog box, click the Add-Ins tab.
3. At the bottom of the dialog box, select Excel Add-Ins
from the Manage drop-down list and
then click Go. Excel displays its Add-Ins dialog box.
4. In the Add-Ins dialog box, place a check mark next
to Solver Add-In and then click OK.
A sample problem for Solver:

A Marketing Company is engaged in selling following

products:
Name of product Profit per Unit
Product A 87
Product B 98
Product C 67
Product D 82
There are some constraints which must be satisfied:
i) A maximum of 100 units can be sold in a day.
ii) A minimum of 10 units of Product C is required in a day
to fill existing orders.
iii) A maximum of 20 units of Product A can be sold, and
a maximum of 25 units of Product B in a day.
iv) A minimum of 1 unit of each product should be sold to
the customer.

Now find an optimum solution for maximized profit.

Add
Constraint
Dialog
Box
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Q. Suppose you have to purchase 5 different types of fruits
with limited budget. Find a solution for optimized cost.
Fruit Name Price/Kg
Apple 60
Pineapple 55
Grapes 30
Pomegranate 80
Orange 25

You have a bag with capacity 20kg. It must be full with

fruits with minimum cost.
Following restrictions should be imposed while
purchasing:
1)Each type of fruits should be purchased at least
1kg except Grapes.
2)Weight of Grapes should be double of Apple.
3)Weight of Pomegranate should be half of Grapes.
4)Grapes should be purchased at least 5Kg.
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Q. Suppose we are given Indian currency notes
of all denominations, e.g. {1,2,5,10,20,50,100,200,
500,2000}. The problem is to find the minimum
number of currency notes to make the required
amount A, for payment.
Formula
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Q. A hypothetical credit union takes member deposit
and invest them in loans to other members, bank FDs,
and other types of investments. The Union distributes
part of the return on these investment in the form of
dividends.
Now find a solution for maximum return how much
money should be invested in these different types of
investment with following constraints:
Amount invested in new car loans must be at least 3
times the amount invested in old car loans.
Car loans should be at least 15% of portfolio.
Unsecured loans should be less than or equal to
25% of total investment.
At least 10% of portfolio should be invested in bank
FDs.
All investments should be positive.
Total investment 5,00,000.
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