Excel Problem Solver: Optimize Manufacturing Costs Using Excel Solver

This video details a complex multi variable manufacturing problem and then shows how to minimize manufacturing costs using Excel's Solver Add-In. Emphasis is placed on setting the problem up in a way that Solver can process. A discussion of solver methods is included.

[@PosthumanAge]

Great tutorial!

[@user-sl6pt8yz5c]

I would use vlookup instead of nested IF functions
nice video
thanks

[@spreadsheetgeek4070]

Good idea. It would have worked for looking up the labor cost. I'm not sure it would be easier for the machine time cost due to greater complexity there (setup + machine time)

[@leixamonash7647]

How would one deal with different efficiency rates of the five people? Say one worker has an efficiency rate of 85% and the other of say 95%.

[@spreadsheetgeek4070]

Excellent question Leixa. Anything less than 100% employee efficiency will affect both the labor cost per job and the machine time cost per job (but NOT the raw materials cost). The short answer: I'd set up a new "run time" variable that is dependent on employee chosen in each Solver trial. That variable will in part, determines labor cost and machine time cost. You have inspired me to do another video that solves your problem. Look for it on Jan 10th.

[@mattmatt245]

Could you make a spreadsheet available for download ?

[@spreadsheetgeek4070]

email me at [e-mail] and I'll reply with a copy

[@khalidnawaz6536]

sir it is awesome..Can you please show how ro plot graph so we can the cost and everything. I will appreciate u sir

[@khalidnawaz6536]

Sir can you send me the spreadsheet on [e-mail]. So I can download it. Thx