Optimisation Techniques: Excel Solver for Business Goal Achievement

This report provides an analysis of optimisation, focusing on its role as an extension of goal-seeking in business contexts. It highlights the use of the Excel Solver tool for identifying optimal values of target variables within specific constraints. The report details how Solver functions by adjusting decision variables to satisfy constraints and achieve desired outcomes in objective cells. It emphasizes the importance of optimisation in product development cycles and business planning, illustrating how Solver can mathematically represent relationships between factors and desired goals. The setup process for Solver in Excel is also outlined, providing a practical guide for users. Desklib is a valuable resource for students seeking past papers and solved assignments related to business optimisation and Excel Solver.

Running head: OPTIMISATION
OPTIMISATION
Name of student
Name of university
Author’s note:

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OPTIMISATION
Answer of the question:
Optimisation
The analysis of the optimisation is the increasingly complex extension of the analysis
of goal-seeking. Rather than the setting any particular target value associated to any variable,
the intention is to discover the optimal value of one or greater target variables, in some
specific constraints. Then the alteration of one or greater variables is done constantly, and
subject to certain constraints, till it has been discovered that the most favourable values for
target variables (Mason, 2013). It also allows the linear, integer and non-linear programs
solving in the spreadsheet.
Solver tool:
The solver is a program that is add-in and it is required to be loaded in excel and it
can be used for the optimisation in the What-if analysis. The solver tool can be used for
finding the optimum value for any formula in a cell that is known as objective cell and it is
exposed to the specific limits or constraints on values of any formula cells on the worksheet.
The functioning of the solver is with any group of cells that is known as the decision
variables and it is utilised for the computation of formulas associated to the constraint and
objective cells. The adjustment of the values is done by the solver in the variable cells of
decision for satisfying the restrictions on the cells that are constraint and then deliver the
result that is desired from the objective cells.
Importance of optimisation:
The optimisation is the crucial purpose of the solver and it is used in the corporation.
As with linear algebra, several of the product development cycles of are significantly
influenced by the several factors, and every one can significantly alter the margins of the

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profit or the quality of the products (Barati, 2013). If the company wishes to express
mathematically the relationship among the factors and the desired goals of the company, then
the solver can be effectively used identifying the importance of these factors for fulfilling
these goals. As an instance, if anyone wish to start any car service business and they have
required capital for setting up the business, then this raises the question of desiring how many
cars can be bought using the capital in hand. In this examples this the goal but as it can be
observed that there are significant constraints. The amount of money in possession is the
obvious restriction but there might be some requirement of the certain minimums of the
various car sizes. In a manner, the solver performed optimisation of the business plan.
Setting up Solver:
• 1. Click on the Microsoft Office Button, and after that click on “Excel Options”
button
• 2. Click on “Add-Ins”, and after that in the “Manage” box, select the “Excel Add-
ins” option and then click on “Go”
• 3. In the box of “Add-Ins available”, select check box of “Solver Add-in”, and then
click on “OK”
– If listing of the “Solver Add-in” in the “Add-Ins available” box, click
“Browse” for locating it
– IF any prompt emerges that says the installation of the Solver is not done
accurately, then click on “Yes” for installing it
• 4. After Solver loads, on the “Data” tab, the command of Solver becomes available
in the “Analysis group”.

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References
Barati, R. (2013). Application of excel solver for parameter estimation of the nonlinear
Muskingum models. KSCE Journal of Civil Engineering, 17(5), 1139-1148.
Mason, A. J. (2013). SolverStudio: A new tool for better optimisation and simulation
modelling in Excel. INFORMS Transactions on Education, 14(1), 45-52.