Solver is part of a suite of commands sometimes called what-if analysis tools. What-if analysis: A process of changing the values in cells to see how those changes affect the outcome of formulas on the spredsheet. For example, varying the interest rate that is used in an amortization table to determine the amount of the payments. With Solver, you can find an optimal value for a formula. Solver works with a group of cells that are related, either directly or indirectly, to the formula in the target cell. Solver adjusts the values in the changing cells you specify — called the adjustable cells — to produce the result you specify from the target cell formula. You can apply constraints to restrict the values Solver can use in the model, and the constraints can refer to other cells that affect the target cell formula. Constraints: The limitations placed on a Solver problem. You can apply constraints to adjustable cells, the target cell, or other cells that are directly or indirectly related to the target cell.
Use Solver to determine the maximum or minimum value of one cell by changing other cells— for example, you can change the amount of your projected advertising budget and see the affect on your projected profit amount. Want to know more about the solver?
How to use the solver and scenario management
Click on Tools in the menu bar
Select Solver
If the Solver tool is not installed on your computer, click on Tools, select 'Add-Ins'.
In the Add-Ins available select 'Solver-Add-In', click 'OK' and follow the necessary instructions
The training video below shows how to calculate the desired result by applying the necessary constraints of the 'coffeee' business in Microsoft Excel.
