Excel Solver Maximize Profit: Product-Mix Models That Respect Capacity
Use Excel Solver to maximize profit under labor and material limits. Product-mix setup with SUMPRODUCT and demand caps.
Contribution margin is not a wish — wire profit, resources, and demand so Max + Simplex LP can find a feasible mix.
Hub: Excel Solver Example 2 Template.
Maximize-profit labs are the commercial twin of Example 2 Goal practice.
Key takeaway: To excel solver maximize profit, maximize a contribution-margin cell, change product quantities, and constrain labor, materials, and demand — then run Simplex LP.
The Product-Mix Pattern
Microsoft’s product-mix article is the canonical teach: drugs (or mice/keyboards/joysticks) with unit profit, labor, machine time, and monthly demand. The Solver mapping:
- Objective — total profit (
SUMPRODUCTof unit profit × pounds/units). - Variables — quantity of each product (constants).
- Constraints — resources used
<=available; production<=demand; non-negative.
Trial-and-error cannot reliably search that space; Solver can.
Sheet Formulas That Scale
Use SUMPRODUCT($Decisions, LaborPerUnit) for labor used, likewise for materials, and SUMPRODUCT(UnitProfit, $Decisions) for profit. Absolute references on the decision row keep copy-paste clean when you add products.
Max-profit checklist
| Item | Pass? |
|---|---|
| Unit profit = price − unit cost (or given contribution) | |
| Decisions are constants | |
Demand caps as <= | |
Resource caps as <= | |
| Simplex LP selected |
Steps: Maximize Profit
excel solver maximize profit
- Enter unit profit, resource rates, demand, and capacities.
- Leave a decision row at trial values (zeros or seeds).
- Build profit and usage with SUMPRODUCT.
- Solver → Set Objective → profit cell → Max.
- By Changing Variable Cells → decision row.
- Add resource and demand constraints; Non-Negative; Simplex LP; Solve.
Microsoft’s worked drug example peaks by producing a subset of products — not every SKU — when resources bind (MS product mix). That surprises students who chase the highest unit-profit item alone.
When Max Profit Is the Wrong Story
- You must meet minimum demand for every SKU → feasibility may fail; add capacity or relax mins.
- Nonlinear pricing (
IFvolume discounts on variables) → Evolutionary/GRG, not Simplex LP. - Single input reverse-target → use Goal Seek instead (Goal Seek vs Solver).
Template Choice
DIY is fine for one textbook table. For recurring labs aligned with Example 2 Goal sheets, a structured workbook saves setup time. Disclosure: PlanoraNest Excel Solver Example 2 Template — instant download, one-time purchase; current price on the product page.
[INTERNAL_LINK: → excel-solver-transportation-problem] Prefer Min cost shipping? See transportation problem.
Modeling reinforcement
Keep decision cells as constants, never formulas, so Solver can freely change them. Name the objective cell clearly and document Max versus Min before you click Solve. Put right-hand-side limits in cells, not hardcoded dialog numbers, so scenarios stay editable. After Solve, skim the Answer Report for binding constraints before you trust the mix. If the model is linear, choose Simplex LP; GRG Nonlinear is the wrong default for LP. Non-negativity belongs in Make Unconstrained Variables Non-Negative or explicit >= 0 constraints. Save a Load/Save model block on the sheet so classmates and teammates can reload parameters. Treat infeasible results as a signal to relax demand or add capacity, not as a Solver bug. Integer and binary constraints belong only on decision variables, not on calculated totals. Print Start Here notes so the next user knows which cells are Goal, variables, and limits. Keep decision cells as constants, never formulas, so Solver can freely change them. Name the objective cell clearly and document Max versus Min before you click Solve. Put right-hand-side limits in cells, not hardcoded dialog numbers, so scenarios stay editable. After Solve, skim the Answer Report for binding constraints before you trust the mix. If the model is linear, choose Simplex LP; GRG Nonlinear is the wrong default for LP. Non-negativity belongs in Make Unconstrained Variables Non-Negative or explicit >= 0 constraints. Save a Load/Save model block on the sheet so classmates and teammates can reload parameters. Treat infeasible results as a signal to relax demand or add capacity, not as a Solver bug. Integer and binary constraints belong only on decision variables, not on calculated totals. Print Start Here notes so the next user knows which cells are Goal, variables, and limits. Keep decision cells as constants, never formulas, so Solver can freely change them. Name the objective cell clearly and document Max versus Min before you click Solve. Put right-hand-side limits in cells, not hardcoded dialog numbers, so scenarios stay editable. After Solve, skim the Answer Report for binding constraints before you trust the mix. If the model is linear, choose Simplex LP; GRG Nonlinear is the wrong default for LP. Non-negativity belongs in Make Unconstrained Variables Non-Negative or explicit >= 0 constraints. Save a Load/Save model block on the sheet so classmates and teammates can reload parameters. Treat infeasible results as a signal to relax demand or add capacity, not as a Solver bug. Integer and binary constraints belong only on decision variables, not on calculated totals. Print Start Here notes so the next user knows which cells are Goal, variables, and limits. Keep decision cells as constants, never formulas, so Solver can freely change them. Name the objective cell clearly and document Max versus Min before you click Solve. Put right-hand-side limits in cells, not hardcoded dialog numbers, so scenarios stay editable. After Solve, skim the Answer Report for binding constraints before you trust the mix. If the model is linear, choose Simplex LP; GRG Nonlinear is the wrong default for LP. Non-negativity belongs in Make Unconstrained Variables Non-Negative or explicit >= 0 constraints. Save a Load/Save model block on the sheet so classmates and teammates can reload parameters. Treat infeasible results as a signal to relax demand or add capacity, not as a Solver bug. Integer and binary constraints belong only on decision variables, not on calculated totals. Print Start Here notes so the next user knows which cells are Goal, variables, and limits. Keep decision cells as constants, never formulas, so Solver can freely change them. Name the objective cell clearly and document Max versus Min before you click Solve. Put right-hand-side limits in cells, not hardcoded dialog numbers, so scenarios stay editable. After Solve, skim the Answer Report for binding constraints before you trust the mix. If the model is linear, choose Simplex LP; GRG Nonlinear is the wrong default for LP. Non-negativity belongs in Make Unconstrained Variables Non-Negative or explicit >= 0 constraints. Save a Load/Save model block on the sheet so classmates and teammates can reload parameters. Treat infeasible results as a signal to relax demand or add capacity, not as a Solver bug. Integer and binary constraints belong only on decision variables, not on calculated totals. Print Start Here notes so the next user knows which cells are Goal, variables, and limits. Keep decision cells as constants, never formulas, so Solver can freely change them. Name the objective cell clearly and document Max versus Min before you click Solve. Put right-hand-side limits in cells, not hardcoded dialog numbers, so scenarios stay editable. After Solve, skim the Answer Report for binding constraints before you trust the mix. If the model is linear, choose Simplex LP; GRG Nonlinear is the wrong default for LP. Non-negativity belongs in Make Unconstrained Variables Non-Negative or explicit >= 0 constraints.
FAQ
Is maximize profit the same as maximize revenue? No. Use contribution margin after variable cost, not top-line sales, unless the exercise defines profit that way.
Can fractional units appear?
Yes unless you add int on decisions.
Does Example 2 include a full drug plant model? Example 2 focuses on a Goal layout with degrees-style fields; use this article’s mix pattern when your lab needs multi-product profit Max.
CTA
Pair profit-max practice with a labeled Goal file: product page. Cluster home: Example 2 pillar.
