All you do is fill out a dialog box or two, and Solver does the rest. Solver incorporates many of the algorithms from operations research, but it keeps the sordid details in the background. In other words, it’s a perfect job to hand off to a computer. The drawback to linear and nonlinear programming is that solving even the simplest problem by hand is a complicated, arcane, and time-consuming business. An entire mathematical field known as operations research has been developed to handle such problems, which are found in all kinds of disciplines. Problems such as “What product mix will maximize profit?” and “What transportation routes will minimize shipping costs while meeting demand?” traditionally have been solved by using numerical methods such as linear programming and nonlinear programming. This chapter introduces you to Solver (a complete discussion would require a book in itself) and takes you through a few examples. ![]() ![]() Solver is a sophisticated optimization program that enables you to find solutions to complex problems that would otherwise require high-level mathematical analysis. For these bigger challenges, you need a more muscular tool. Often, a problem will have more than one solution, and your challenge will be to find the optimal solution (that is, the one that maximizes profit, or minimizes costs, or matches other criteria). You’ll usually face formulas with at least two and sometimes dozens of variables. Unfortunately, most problems in business aren’t so easy. In Chapter 15, “ Using Excel’s Business Modeling Tools,” you learned how to use Goal Seek to find solutions to formulas by changing a single variable.
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