SPREADSHEET MODELLING AND

OPTIMISATION USING THE GOAL-SEEK AND

SOLVER TOOLS
By Anthony

CUK

March 2020
GOALSEEK
Allows us to determine an input value that
would be needed to get a given output
Used for a single output and a single input
 Allows us to work backwards in a worksheet
 Lets you vary only one input variable
 What-if analysis in the reverse direction.
• Ex. How much would we have to pay our part-time
workers in $/hr to only spend $26,000 per year?
GOALSEEK

Output cell address

Target level sought

Input to vary
GOALSEEK
 Part of Standard Excel Installation
 Finds the root of a scalar function

f ( x) = 0
• Recall that root-finding methods (e.g., bisection method,
Newton’s method) rely on a change in sign of the
objective function
• Any f(x) function used in GOALSEEK should have a well
defined sign change
GOALSEEK - EXAMPLE
 Use Excel’s GOALSEEK feature to find the root of f(x) = x –
cos(x) between 0 and 1.

0.6
0.4
0.2
0
x - cos(x)

-0.2 0 0.2 0.4 0.6 0.8 1 1.2

-0.4
-0.6
-0.8
-1
-1.2

x
GOALSEEK - EXAMPLE
 Make use of named ranges in Excel
 Create solution variable cell “xval” and target cell “fofx”
 Highlight cells that
will be named. Under
Formulas Tab select
Create from Selection
GOALSEEK - EXAMPLE
 Input the function into the “target cell”
 Use the named variable

 Type “=xval – cos(xval)” into the target cell

EXAMPLE 1 - SOLUTION
GOALSEEK - EXAMPLE
 Put an initial guess in the variable cell
 0.5 is the middle of the interval, so use it

 Now invoke the GOALSEEK function

 You can use the named ranges in the GOALSEEK dialog box, or
point and click
GOALSEEK

Goal Seek found

on Data Tab
under “What-If
Analysis”
EXAMPLE 1 - SOLUTION
GOALSEEK - EXAMPLE

 Then click “OK”

EXAMPLE 1 - SOLUTION
SOLVER
 Solver is an “add-in” to Excel
 It is not installed by default
 SOLVER will find a particular value, the maximum, or
the minimum of a scalar function of a vector

f ( x1 , x2 , x3 , , xn ) = 0
max[ f ( x1 , x2 , x3 , , xn )]
min[ f ( x1 , x2 , x3 , , xn )]
SOLVER
 Uses a gradient-based method (like Newton’s method) to
find the root or the max/min
 Works very well for functions that have a well-defined
minimum (or maximum), like a quadratic form (a parabola)
FINDING THE ADD-INS
IN EXCEL 2000

Go to Excel
Options
FINDING THE ADD-INS IN EXCEL

Go to Add-Ins Tab
on left and click Go
at bottom
FINDING THE ADD-INS IN EXCEL

Make sure
Solver Add-In is
checked and
click ok
FINDING THE SOLVER ADD-IN
Now go to Data
tab and click on
Solver on the
far right
SOLVER - EXAMPLE
 Find the minimum of
f(x,y)=(x-5)2 + (y-5)2

50

40
(X-5)2 +(Y-5)2

30

20

10

0
15

10

5 10 12
6 8
0 2 4
Y 0
X
SOLVER - EXAMPLE
 Use named ranges to establish variables for ‘xval’ and ‘yval’
 Use named range to create a target cell ‘fxy’
EXAMPLE 2: CREATING NAMED RANGES
SOLVER - EXAMPLE
 Put initial guesses for xval, yval in their cells (use (0,0))
 Type the formula into the target cell (“=(xval-5)^2 + (yval-
5)^2”)
EXAMPLE 2: SETTING UP THE SPREADSHEET
SOLVER - EXAMPLE
 Invoke the SOLVER function
MICROSOFT HELP ON “SOLVER”
 Define and solve a problem by using Solver
 On the Data Tab, click Solver (far right).
 If the Solver command is not on the Data Tab, you need to
install the Solver add-in.
 In the Set Target Cell box, enter a cell reference or name for
the target cell. The target cell must contain a formula.
EXAMPLE 2: INVOKING THE SOLVER FUNCTION

Solver is found
on far right of
Data tab
MICROSOFT HELP ON “SOLVER”
 To have the value of the target cell be as large as
possible, click Max.
 To have the value of the target cell be as small as
possible, click Min.
 To have the target cell be a certain value, click Value of,
and then type the value in the box.
 In the By Changing Cells box, enter a name or reference
for each adjustable cell, separating nonadjacent
references with commas. The adjustable cells must be
related directly or indirectly to the target cell. You can
specify up to 200 adjustable cells.
EXAMPLE 2: THE SOLVER DIALOG BOX
MICROSOFT HELP ON “SOLVER”
 To have Solver automatically propose the adjustable
cells based on the target cell, click Guess.
 In the Subject to the Constraints box, enter any
constraints you want to apply.

 Click Solve.

 To keep the solution values on the worksheet, click

Keep Solver Solution in the Solver Results dialog box.
EXAMPLE 2: THE SOLVER SOLUTION
MICROSOFT HELP ON “SOLVER”

 To restore the original data, click Restore Original

Values.
 Tips
 You can interrupt the solution process by pressing
ESC. Microsoft Excel recalculates the worksheet with
the last values found for the adjustable cells.
ASSIGNMENT 2 (10 MARKS)
7
 Let 𝑓 𝑥 = 5𝑥 +
𝑥
Use Goal Seek to find an 𝑥 so that 𝑓 𝑥 = 20.

Email your work to [email protected] not

later than 6pm 6th April.