
Stock Portfolio Management: Uses a VBA macro to optimize several scenarios for minimum risk at different target rates of return, then draws a graph of the efficient frontier.Portfolio Optimization - Markowitz Model: Allocate funds to stocks to minimize risk for a target rate of return - with known or computed variances and covariances.Capacity Planning: Determine which plants should be opened or closed.Cash Management: Determine where to locate lockboxes to minimize the "float" or interest lost to due mailing delays.Inventory Management: Compare inventory stocking and reordering policies with the EOQ (Economic Order Quantity) model.Capital Budgeting: Choose a combination of capital projects to maximize overall NPV (Net Present Value).Working Capital Management: Invest in 1-month, 3-month, and 6-month CDs to maximize interest while meeting cash requirements.Examples by Functional Area Corporate Finance You can do this any time after signing up.
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When you download and install a free trial of our enhanced Solvers for desktop Microsoft Excel, you'll find that more than ninety (90) small, but fully functional, example models are available for your use - covering conventional optimization, simulation and risk analysis, decision analysis (using decision trees), simulation optimization, stochastic optimization, and robust optimization. You can run all of these models with the basic Excel Solver. Here is a comprehensive list of example models that you will have access to once you login. To learn more, sign up to view selected examples online by functional area or industry. We guarantee a connection within 30 seconds and a customized solution within 20 minutes.Optimization is a tool with applications across many industries and functional areas. If you want to save hours of research and frustration, try our live Excelchat service! Our Excel Experts are available 24/7 to answer any Excel question you may have. Most of the time, the problem you will need to solve will be more complex than a simple application of a formula or function. Excel Solver offers other sensitivity reports and we can further explore this analysis tool to solve more complicated optimization problems and generate more detailed reports. The value of the Lagrange multiplier is a measure of the sensitivity of the constrained objective to changes in the constrained variables. The sensitivity report shows the names, corresponding cells and final values of the variable cells and constraints.
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Output: Sensitivity Report How to interpret a sensitivity report ? This is how a Sensitivity Report is presented:įigure 8. The Sensitivity Report will be generated in another worksheet named Sensitivity Report 1. The optimal solution will then reflect in cells C3 to C5 in our worksheet (Sheet 1 below). The time it takes for Solver to complete the calculations might vary depending on the complexity of the problem. Sensitivity Report option in Solver Results Tick Keep Solver Solution and under Reports, select Sensitivity.

Suppose we want to prepare a mixture in a laboratory, using water and two chemical reagents A and B.

Solver command button in Data tab Prepare our data

Goal Seek can be accessed through the Data tab > Solver buttonįigure 2. Final result: Sensitivity Report Where is Excel Solver? Solver is a What-if-Analysis tool that solves for an optimal value in the target cell by changing the values in the variable cells.įigure 1. Solver, like Goal Seek, is very useful in various fields of study and application. Sensitivity reports can be generated after using the Excel Solver add-in.
