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Step-By-Step Optimization With Excel Solver              The Excel Statistical Master 
Copyright ©2011
Page 140 
Part 2 
 Note that the Variable Cells contain the Decision Variables 
 Note where the labels for each Decision Variable are placed in 
the Excel model so that the Decision Variable’s name will appear 
here in Part 2 of the Answer Report as it does 
 Note the type of variable  - Either Continuous or Integer (Integer, 
Binary, or Alldifferent) 
 Note the Before and After values of each Decision Variable 
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Step-By-Step Optimization With Excel Solver              The Excel Statistical Master 
Copyright ©2011
Page 141 
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Step-By-Step Optimization With Excel Solver              The Excel Statistical Master 
Copyright ©2011
Page 142 
Part 3 
 Note how each Constraint is labeled in the Excel model in order 
for the Constraint’s name to appear here in Part 3 of the Answer 
Report as it does 
 Note which Constraints are binding (had their limits hit) and which 
 Note how much slack is still available in any Constraint that has 
not had its limit hit. 
 Note any Integer Constraints (Integer, Binary, Alldifferent) 
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Step-By-Step Optimization With Excel Solver              The Excel Statistical Master 
Copyright ©2011
Page 143 
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Step-By-Step Optimization With Excel Solver              The Excel Statistical Master 
Copyright ©2011
Page 144 
Outbound Marketing Budget Optimization 
Reaching a Required Number of Prospects As 
Cheaply As Possible With Outbound Marketing 
This is a common corporate use of the Solver. The Solver is quite often 
used to select among outbound advertising media of varying Reach, 
Frequency, Ad Effectiveness, and Ad Cost to reach a maximum number 
of prospects while being constrained by the available advertising budget. 
The Problem
A company must divide a limited outbound broadcast media 
advertising budget among 3 broadcast media vehicles in order to 
generate at least 1,000,000 Effective Advertising Impressions at the 
lowest total cost. The broadcast media vehicles are a local TV 
station and 2 cable TV stations. 
Each of the 3 media vehicles is judged to have differing degrees of 
advertising effectiveness per each individual ad impression. This is 
due to differences in viewership demographics and relevancy of 
the programming to the company’s advertising message. The 
number of ad impressions for each media vehicle is weighted 
according to vehicles effectiveness to produce a unit of measure 
called an Effective Advertising Impression. 
Given the overall advertising budget and the maximum advertising 
spending per media vehicle, how should the overall advertising 
budget be divided up among the 3 broadcast media vehicles to 
produce at least 1,000,000 Effective Advertising Impression as 
cheaply as possible? 
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Step-By-Step Optimization With Excel Solver              The Excel Statistical Master 
Copyright ©2011
Page 145 
Specific details about each broadcast media vehicle are as follows: 
Problem Solving Steps 
Step 1 – Determine the Objective 
In this case, the objective is to minimize the total amount spent on all 3 
broadcast media vehicles in order to achieve at least 1,000,000 Effective 
Advertising Impressions. The total amount spent on advertising is the 
Objective that we are trying to reduce. The cell that calculates this total 
advertising expenditure is the Objective Cell. 
Step 2 – Determine the Decision Variables
We are trying to determine how many ad broadcasts to perform with 
each of the 3 media vehicles in order to achieve at least 1,000,000 
Effective Advertising Impressions at the lowest cost while staying within 
budget constraints. The numbers of ad broadcasts to perform with each 
broadcast media vehicle are the Decision Variables. 
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Step-By-Step Optimization With Excel Solver              The Excel Statistical Master 
Copyright ©2011
Page 146 
Step 3 – Build the Excel Equations That Combine 
the Objective With All Decision Variables
Following is an expanded view of the left and right halves of the 
preceding Excel model for clarity. Here is the left half of the model: 
Step-By-Step Optimization With Excel Solver              The Excel Statistical Master 
Copyright ©2011
Page 147 
Here is the right half of the model showing the interaction between the 
green Decision Variables (F3 to F5), the yellow Objective Cell (G7), and 
the light blue Constraints (G3 to G5, H7). 
The yellow Objective cell displays the total cost of advertising and will be 
minimized. The green Decision Variable cells display the number of 
Step-By-Step Optimization With Excel Solver              The Excel Statistical Master 
Copyright ©2011
Page 148 
advertising broadcasts that will be made on each type of outbound 
media vehicle. The light blue Constraint cells show the total ad spend for 
each advertising vehicle and the total number of Effective Advertising 
Impressions. These Constraint figures in the model are limited by the 
light blue user Constraint inputs as follows: 
Step 4 – List all Constraints
The light blue Constraint cells shown above are the cells that the user 
will input the maximum budgets for TV, Cable 1, and Cable 2. The final 
Constraint cell is the cell that the user will input the required minimum 
number Effective Advertising Impressions for the entire advertising 
campaign over all 3 media vehicles. 
Step 5 – Test the Excel spreadsheet
Test the Excel spreadsheet completely before adding information to the 
Solver dialogue box. Make sure that any changes to Decision Variables 
or Constraints produce the correct results in the Objective cell. 
Step-By-Step Optimization With Excel Solver              The Excel Statistical Master 
Copyright ©2011
Page 149 
Step 6 – Insert All Data into the Solver Dialogue 
Input the Objective cell, Decision Variable cell, and all Constraints into 
the Solver dialogue box as follows: 
The Integer Constraints ensure that the ad broadcasts are performed in 
whole numbers. The inequality Constraints ensure that the ad spend per 
vehicle will not exceed that vehicle’s budget and that at least the 
required number of Effective Advertising Impressions will be attained. 
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