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Excel is a solution to all the data problems that an individual might face in spreadsheet software. There are many functions that are pre-installed in Excel that make it easier for the analyst to process the data. A similar function is performed by the Solver add-in. To use the solver add-in you need to install it.
The steps to install the solver add-in are:
Go to the files and select the options button
In the options window, choose the add-ins option from the menu bar on the left side.
In the add-ins window, go to the Manage drop-down and select the option as an add-in.
Click the solver add-in in the available add-in and press OK.
Go back to the sheet; in the data tab, you will observe an added section as analyzed with the solver option. Now, you can successfully use the solver add-in in Excel.
The solver in Excel is a what-if analysis tool. It helps obtain the desired outcome by changing the assumptions of a model. Economists, marketers, and engineers often use it to find the best outcome with respect to some constraints. The solver add-in can be used to find the best, be it an optimum budget, best investment, minimizing the inventory cost, etc.
Once you have created the model to maximize, minimize or obtain the best solution, you must go to the Data tab > Solver.
Now, you have the solver parameters under which the values must be inserted. The solver requires 3 pieces of information to find the result: the objective cell, the variable cells, and the constraints.
The objective cell lays down the target calculation cell, which displays the result to be achieved. The target cell includes the calculation to achieve the maximum, minimum, or required objective.
In the variable cells, you need to place the cell references of the variables, i.e., the model's adjusting factors.
The constraints are the assumptions or restrictions under which the result must be obtained. Excel has up to 200 constraints for 1 model.
Once you fill in the required information, you can click the solve button.
Now, you have the final result for your model. Where statisticians spend multiple hours to obtain the best result, you have generated it in 5 minutes. Try using the solver add-in of Excel to find out the best solution to the problems that you come across, and do let us know in the comments section how it helped you get the results efficiently.
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