1. Applied Statistical and Optimization Models
Topic 02: Linear Programming with Excel

2. Objectives Specify a programming problem in Excel
Solve a simple linear programming problem using Excel solver

3. Linear Programming with Excel
This was the Falcons Toys Inc.
Optimum

4. Linear Programming with Excel
In order to have Excel solve it for you, you need to program the model like this:
Everything that is blue you need to enter and is given information that comes from the problem.
Everything that is grey is a formula need to enter.

5. Linear Programming with Excel
In order to have Excel solve it for you, you need to program the model like this:
=C3*C4+D3*D4
=$C$3*C6+$D$3*D6
=$C$3*C5+$D$3*D5
=$C$3*C7+$D$3*D7

6. Linear Programming with Excel
Using Excel Solver
Make sure you have installed Excel solver
If not, go in Excel to File  Options  Add-Ins  Manage Excel Add-ins  check Solver add-in.
This is what you need to see

7. Linear Programming with Excel
Open Excel Solver and Enter Relevant Fields

8. Linear Programming with Excel
Then Solve, and Excel will Find the Optimum Solution

9. What you Should Have Learned
Enter a linear programming problem in Excel
Set the right settings in Excel’s solver
Run Excel solver with confidence