Using Integer and Nonlinear Optimization in Analytic Solver

To solve integer optimization models in Analytic Solver, we need to ensure that the variables
are defined correctly as general integer or binary variables. To solve nonlinear models, we
must ensure that the correct Solver algorithm is chosen.
Defining Integer Variables

There are two ways to enforce integer restrictions on variables using Analytic Solver. First,
select the range of the variables and in the Analytic Solver ribbon, click the Constraints button,
choose Variable Type/Bound and then select Integer or Binary. Figure 1 illustrates for the
Sklenka Skis example in Chapter 14 for which we would select Integer. For binary optimization
models such as the Hahn Engineering example we would select Binary. (Note that AllDifferent
is also an option and would be used for job sequencing and traveling salesperson models.)
The second way of doing this is to open the Solver Parameters dialog by clicking on
Premium Solver from the Excel Add-ins tab. Select the variables and click the Add button as
shown in Figure 2. In the Add Constraint dialog (Figure 3), select the range of the variables and
click the dropdown box in the middle to choose the type of restriction (int for integer, bin for
binary, and dif for alldifferent).
If you click the Options button in the Solver Parameters dialog, the Options dialog will be
shown as in Figure 4. To ensure finding the true optimal integer solution, Integer Optimality (%)
must be set to 0. You should always check this before solving. If you want to solve an integer
model without the integer constraints, click the box Ignore Integer Constraints.

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2 Analytic Solver

Figure 1 Enforcing Integer Restrictions using the Analytic Solver Ribbon

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Figure 2 Premium Solver Solver Parameters Dialog

Figure 3 Add Constraint Dialog

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Figure 4 Solver Parameters Options

Solving Nonlinear Optimization Models

To solver nonlinear optimization models using Premium Solver, you should select “Standard
GRG Nonlinear” from the Select a Solving Method dropdown menu in the Solver Parameters
dialog. Figure 5 shows the Solver Parameters dialog for the Pricing Decision Model used in
Chapter 14 with this option selected. If you use the Analytic Solver ribbon, toggle the Model
button to display the Solver Options and Model Specifications pane, click on the Engine tab, and
select “Standard GRE Nonlinear Engine” from the dropdown list at the top as shown in Figure 6.

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Figure 5 Solver Parameters Dialog for a Nonlinear Optimization Model

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Figure 6 Solver Options and Model Specifications Engine Tab for a Nonlinear Optimization
Model

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