How can you use Excel Solver for optimization in operational planning?

1 What is Excel Solver?

Excel Solver is a feature that allows you to find the optimal values for a set of cells, called decision variables, that affect an objective cell, which represents your goal or criterion. You can also specify constraints, or limits, on the values of the decision variables or other cells that are related to your problem. Excel Solver uses various algorithms, or methods, to find the best solution, such as linear programming, nonlinear programming, or evolutionary algorithms. You can access Excel Solver from the Data tab in the ribbon, under Analyze.

2 How to set up Excel Solver?

To use Excel Solver for optimization in operational planning, you need to define your objective cell, decision variables, and constraints. Your objective cell should contain the formula or value you want to maximize, minimize, or set to a specific target. Your decision variables are usually input values such as quantities, prices, or rates. Your constraints are the rules or limits that you want to apply to the decision variables or other cells, such as budget constraints, capacity constraints, or demand constraints. You should also choose a solving method; the default is GRG Nonlinear, but you can also choose Simplex LP for linear problems or Evolutionary for problems that are not smooth or continuous. Finally, click Solve and review the results to see the optimal values for the decision variables and objective cell.

3 How to use Excel Solver for operational planning problems?

Excel Solver can be used to solve various operational planning problems, such as production planning to maximize profit, revenue, or customer satisfaction; inventory planning to minimize costs like holding costs, ordering costs, or shortage costs; and staffing planning to minimize labor costs while meeting the service level. All these problems need to take into account the relevant constraints, such as raw materials, labor, machines, capacity, lead time, safety stock, availability, skills, or preferences.

4 What are some tips for using Excel Solver effectively?

To use Excel Solver effectively for optimization in operational planning, you should organize your data and formulas clearly and logically, using labels, tables, and named ranges. Additionally, check your assumptions and constraints carefully to ensure they are realistic and consistent with your problem. Experimenting with different solving methods and options can also be helpful in comparing the results. The Sensitivity Report, Limit Report, Save Scenario option, Answer Report, and Solver Options dialog box can all help you adjust the parameters and settings of each solving method for precision, convergence, or population size. Doing so will make it easier to set up and modify your Excel Solver model as well as understand and communicate your results.

5 How to learn more about Excel Solver?

Excel Solver is a powerful and versatile tool that can help you with optimization in operational planning, but it requires some practice and knowledge to use it properly. To learn more about Excel Solver, you can visit the official website, read the Help topics, or take an online course or workshop. The website provides tutorials, examples, videos and support for Excel Solver. The Help topics provide detailed information and instructions on how to use Excel Solver and its features. An online course or workshop can help you learn from experts and practice with real-world problems and cases.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?