Microsoft® Office Excel® 2007: Data Analysis and Business Modeling, Second Edition

Chapter 27. Using Solver to Determine the Optimal Product Mix

• How can I determine the monthly product mix that maximizes profitability?

• Does a Solver model always have a solution?

• What does it mean if a Solver model yields the result Set Values Do Not Converge?

How can I determine the monthly product mix that maximizes profitability?

• Companies often need to determine the quantity of each product to produce on a monthly basis. In its simplest form, the product mix problem involves how to determine the amount of each product that should be produced during a month to maximize profits. Product mix must usually adhere to the following constraints:

  • Product mix can’t use more resources than are available.

  • There is a limited demand for each product. We ...