How To Use Solver in Microsoft Excel (Video transcript)
In the last lecture we seen the use of goal seek. We were able to change the result of a formula by changing one of the formula’s components.
The solver is the more sophisticated version of Goal Seek. In this worksheet, we have a total here and the total depends on what is happing in a lot of the other cells. If we imagine the profit will be higher, Say 260,000. How can we change the optimized inputs ?. Solver helps us to guess that.
So let’s first activate the solver add-ins. Go go file and option, add-ins, here we have the solver, click go to have it in the menu.
Now click it and we have this big dialog box. Our objective is to increase this total, select it, and 260,000. Let’s change the Sales, shipping, and goods, we can include these two but let’s skip them for simplicity. and let’s add some constraint. Sales can be increased by up to 138,000 and shipping my increased by one thousand. and finally, the cost of the goods can 73,000 thousand, say greater than equal to, and now click solve.
The solver does it’s mathematics come up with the solution. We can keep the solver solution or we restore the original values.