The linear programming Solver function in Excel 2004 had to be dropped in Office 2008 for Mac because it depended on Visual Basic for Applications (VBA). Solver is an Excel add-in that allows linear programming / analysis tool for Excel which was initially released for the Mac when Excel 2004 shipped but was dropped from Excel 2008 due to its.

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Under Add-ins, select Solver Add-in and click on the Go button. Check Solver Add-in and click OK. You can find the Solver on the Data tab, in the Analyze group. Formulate the Model The model we are going to solve looks as follows in Excel.

To formulate this linear programming model, answer the following three questions. What are the decisions to be made? For this problem, we need Excel to find out how much to order of each product (bicycles, mopeds and child seats). What are the constraints on these decisions? The constrains here are that the amount of capital and storage used by the products cannot exceed the limited amount of capital and storage (resources) available. For example, each bicycle uses 300 units of capital and 0.5 unit of storage. What is the overall measure of performance for these decisions?

The overall measure of performance is the total profit of the three products, so the objective is to maximize this quantity. To make the model easier to understand, the following ranges.

Range Name Cells UnitProfit C4:E4 OrderSize C12:E12 ResourcesUsed G7:G8 ResourcesAvailable I7:I8 TotalProfit I12 3. Insert the following three SUMPRODUCT functions. Explanation: The amount of capital used equals the of the range C7:E7 and OrderSize. The amount of storage used equals the sumproduct of the range C8:E8 and OrderSize. Total Profit equals the sumproduct of UnitProfit and OrderSize. Trial and Error With this formulation, it becomes easy to analyze any trial solution. For example, if we order 20 bicycles, 40 mopeds and 100 child seats, the total amount of resources used does not exceed the amount of resources available.

This solution has a total profit of 19000. It is not necessary to use trial and error. We shall describe next how the Excel Solver can be used to quickly find the optimal solution. Solve the Model To find the optimal solution, execute the following steps. On the Data tab, in the Analyze group, click Solver. Enter the solver parameters (read on).

The result should be consistent with the picture below. You have the choice of typing the range names or clicking on the cells in the spreadsheet.

Enter TotalProfit for the Objective. Enter OrderSize for the Changing Variable Cells. Click Add to enter the following constraint. Check 'Make Unconstrained Variables Non-Negative' and select 'Simplex LP'. Finally, click Solve.

Result: The optimal solution: Conclusion: it is optimal to order 94 bicycles and 54 mopeds. This solution gives the maximum profit of 25600. This solution uses all the resources available.