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Excel Solver


Implementing the Solver feature in Excel to optimize product-mix to optimize manufacturing profits:
1. We wish to use the solver to decide what quantities of two products (X, Y)  to manufacture that use 3 ingredients (A, B, C) to maximize our profits
2. Let's enter the data in the Excel worksheet  so that it models the problem. The details of manufacturing quantity of products, their profit contribution, requirements of raw materials to produce unit quantities and the planned quantities and the available raw material quantities is entered systematically. The total profit is calculated using the sumproduct formula.
3. Next we start the Solver.
4. We define our target cell (F5=profit). Here we wish to maximize our profits.
5. We enter changing cells or variables which our planned quantities of the two products X and Y..
6. We next enter the constraints. For example, we cannot use more raw materials than we have. Also our production values cannot be negative or less than zero.
7. We next click solve to see the result. 

 

Reference

Solver Excel