Solver Tutorial - Introduction to Optimization Models

On the next few pages, accessed by the link at the bottom of this page, we will go over an example to highlight some key points about defining a model including:

1. The decisions to be made, called Decision Variables
2. The measure to optimize, called Objective
3. Any logical  restriction on potential solutions, called Constraints

You may also be interested in video demos on building models, as we well as our step by step tutorial where we build on this example by walking you through how to set it up yourself using: a) the basic Excel solver included with Excel, b) our advanced Risk Solver Platform, and c) using our SDK.

Inside Excel or Outside?

Using Spreadsheets.  Spreadsheets such as Microsoft Excel provide a convenient way to build such a model.  Cells on a worksheet can hold numbers, labels, or formulas that calculate new values.

• The decision variables for a model are simply worksheet cells containing numbers that Solver can change.
• The objective is a cell containing a formula you want Solver to maximize (or minimize) by adjusting the values of the decision variable cells.
• Constraints are logical conditions on formula cells that must be satisfied (specified with <=, = or >= relations). Frontline's various Solver products provide powerful tools for solving, or optimizing, such models.

Using Custom Programs.  Another way to build an optimization model is to write code in a programming language such as Visual Basic, C#, Java or C/C++.  Variables and arrays in the program hold the decision variables and other needed data while code is written to calculate values for the constraints and objective. Frontline's Solver SDK products provide equally powerful tools for solving, or optimizing, models in this form.

The choice of approach is yours

Spreadsheets offer a quick way to build a model, and you can easily explain the model and its results to other users.  Application programs written in a programming language may offer higher performance and may be easier to distribute widely, within a company or to commercial users.

No matter which approach you choose, Frontline Systems' Solver products provide the key optimization technology in an easy-to-use, reliable form.

Next: How Do I Define a Model? >

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