Microsoft Office Tutorials and References
In Depth Information
ASSIGNMENT 1: CREATING A SPREADSHEET FOR DECISION SUPPORT
Normally, you would choose Simplex LP for the solving method, but in this case the model is not linear,
so Solver would not provide a solution. If you try using Simplex LP, you should receive the error message
shown in Figure 9-7.
FIGURE 9-7
Error message when trying to use the Simplex LP method
The Simplex LP method will not work for a couple of reasons. First, you did not define an upper bound
for your monthly production; you defined the constraint as greater than or equal to the sales forecast. To see
what happens when you define an upper bound, add a
s
production in the Solver Parameters window. To open this window, click the Data tab and click Solver in the
Analysis group. For example, add $F$21
less than or equal to
constraint for each month
s
production. If you run Solver again using the Simplex LP method, you will receive the error message shown in
Figure 9-8.
$F$17
10 for January. Repeat the constraint for each month
þ
FIGURE 9-8
Solver error message indicating that the model is nonlinear
Solver discovered that some of the equations in your model are nonlinear. Remember the IF statements
in the formulas for Hires and Layoffs? Luckily, you can use other solving methods. Follow the advice shown
in the Solver Results window, and change your solving method to GRG Nonlinear in the Solver Parameters
 
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