Solver is a Microsoft Excel add-in program that is used for what-if analysis. It is a mathematical tool that performs calculations by working under some constraints/conditions and then calculates the solution for the problem. Solver is used to find an optimal (maximum or minimum) value for a formula in one cell, called the objective cell, subject to constraints or limits on the values of other formula cells on a worksheet. Solver works with a group of cells called decision variables or variable cells that are used in computing the formulas in the objective and constraint cells. Solver adjusts the values in the decision variable cells to satisfy the limits on constraint cells and produce the result you want for the objective cell.
To use Solver in Excel, you need to activate it by following these steps:
- Go to File and select options.
- Select the Add-ins option and click on Go and finally click on OK.
- Select Solver Add-in and press OK.
Once Solver is activated, you can find it on the Data tab, in the Analyze group. Solver is especially useful for solving linear programming problems, aka linear optimization problems, and therefore is primarily purposed for simulation and optimization of various business and engineering models. It can help you maximize the return of investment, choose the optimal budget for your advertising campaign, make the best work schedule for your employees, minimize the delivery costs, and so on.
