Optimization is a tool with applications across many industries and functional areas. To learn more, sign up to view selected examples online by functional area or industry. Here is a comprehensive list of example models that you will have access to once you login. You can run all of these models with the basic Excel Solver.
When you download and install a free trial of our enhanced Solvers for desktop Microsoft Excel, you’ll find that more than ninety (90) small, but fully functional, example models are available for your use — covering conventional optimization, simulation and risk analysis, decision analysis (using decision trees), simulation optimization, stochastic optimization, and robust optimization. You can do this any time after signing up.
Examples by Functional Area
Corporate Finance
Working Capital Management. Invest in 1-month, 3-month, and 6-month CDs to maximize interest while meeting cash requirements
Capital Budgeting : Choose a combination of capital projects to maximize overall NPV (Net Present Value)
Inventory Management : Compare investory stocking and reordering policies with the EOQ (Economic Order Quantity) model
Cash Management : Determine where to locate lockboxes to minimize the float or interest lost to due mailing delays
Capacity Planning : Determine which plants should be opened or closed
Portfolio Optimization — Markowitz Model : Allocate funds to stocks to minimize risk for a target rate of return — with known or computed variances and covariances
Stock Portfolio Management : Uses a VBA macro to optimize several scenarios for minimum risk at different target rates of return, then draws a graph of the efficient frontier
Portfolio Optimization — Sharpe Model (CAPM) : Uses Excel’s regression functions to calculate alphas and betas for stocks relative to a market index, then uses these to find an efficient portfolio
Bond Portfolio Management : Allocate funds to bonds to maximize return while ensuring that the portfolio duration equals the investment horizon for maturity — with known or computed durations
Bond Portfolio Exact Matching : Allocate funds to bonds to maximize portfolio return while ensuring that periodic liabilities are met — with or without reinvestment
Product Mix : Determine how many products of each type to assemble from certain parts to maximize profits while not exceeding available parts inventory
Machine Allocation : Allocate production of a product to different machines, with different capacities, startup cost and operating cost, to meet production target at minimum cost
Blending : Determine which raw materials from different sources to blend to produce a substance with certain desired qualities at minimum cost
Process Selection — Decide which of several processes (with different speeds, costs, etc.) should be used to make a desired quantity of product in a certain amount of time, at minimum cost
Cutting Stock : Determine how to cut larger pieces of wood, steel, etc. into smaller pieces of desired sizes, each needed in certain quantities, to minimize waste
Transportation Model : Determine how many products to ship from each factory to each warehouse, or from each factory to each warehouse and direct to each end customer, to minimize shipping cost while meeting warehouse demands and not exceeding factory supplies
Multi-Level, Multi-Commodity Transportation Model : Determine how many products of several different types to ship from each factory to each warehouse and each customer, to minimize total shipping cost while meeting demands and not exceeding capacities and supplies
Partial Loading — Decide which sizes or types of products to load into a vehicle, given its size limits, to best meet demand or to minimize wasted space
Facility Location : Determine which (if any) plants to close to minimize total costs, including fixed operating costs and shipping costs between facilities
Production / Transportation Model : Determine how many products to produce in each factory and ship to warehouses and customers, to minimize overall costs while meeting demands, warehouse capacities and factory supplies
Contract Awards — Award contracts to suppliers who have bid certain prices to supply products to facilities in several states — allow for bids specifying a minimum size for each state
Inventory Stocking/Reordering : Compare inventory stocking and reordering policies with the EOQ (Economic Order Quantity) model
Media Planning — Decide how much advertising to purchase in different media to minimize total cost while achieving a target level of reach or frequency
Purchasing / Transportation Model : Determine how much to purchase from different suppliers at specified prices, to be shipped from their locations to various plants, to minimize total costs including purchase and shipping costs
Human Resources
Crew Scheduling : Assign crews to different airline flight segments to minimize total cost while ensuring that a crew rotation begins and ends in the same city
Office Assignment : Assign employees to available offices to maximize satisfaction of employee preferences
Employee Scheduling : Schedule park employees for weekly shifts (five works days plus two consecutive days off) to minimize payroll costs while meeting varying demand for each day of the week, optionally taking into account employee seniority and preferences
Workforce Composition. Decide how many employees to retrain, hire and fire to meet changing workforce composition requirements while minimizing costs or employee turnover
Workforce Movement : Decide how many troops to move from several camps to several other bases, to minimize movement time or total cost
Airlines and Trucking
Crew Scheduling : Given a flight schedule, aircraft assignments, and restrictions on duty periods, allocate crews most effectively to flights
Fleet Routing and Assignment : Determine which aircraft to fly on each route, and the sequence of segments flown by each aircraft
Revenue Management : For different classes of tickets, determine how many seats to sell or hold back as flight date approaches
Gasoline Blending. From hydrocarbons with specific octane ratings, vapor pressure, volatility and cost, determine how much of each should be blended together to produce regular, midgrade, and premium gasoline
Gas Contract Purchase : With forecasted but uncertain demand for gas, determine which contracts to buy, and how much gas to store at different times
Pipeline Capacity Auction : Determine which bids, at different prices, should be awarded to maximize sales revenue while not exceeding daily pipeline capacity
Lumber, Paper and Steel
Cutting Stock Problems : Given large wood / paper sheets or steel slabs / bars, and demand for units of smaller lengths/widths, determine the cutting pattern of large into small pieces that meets demand while minimizing waste
Crop Planning: Given forecasted crop prices and growing conditions, determine how much of each crop to plant
Electric Power
Generator Commitment : Given forecasted demand by period and operating cost for each generator, determine which generators should be run in each time interval
Index Fund Management : Solve a portfolio optimization problem that minimizes tracking error for a fund mirroring an index composed of thousands of securities
Asset/Liability Management : Allocate funds to various investments to maximize portfolio return while ensuring that periodic liabilities are fully funded
