Introducing Integer Modeling with Excel Solver

Abstract

This article suggests ideas for introducing integer modeling of fixed (entry) costs with Excel Solver to business students. The presented example uses concepts from accounting, such as assessing distribution channel profitability, and blends them with management science techniques. The effectiveness of the software use is in integrating it successfully into a comprehensive discussion about assumptions, modeling, limitations, software pitfalls, validation, and implications for managerial decision making.

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