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Solver question

  1. #1
    Bill_S
    Guest

    Solver question

    I can't seem to solve this problem. I am setting up a bonus program for our
    sales people. Each sales person sells 3 products (A, B and C.) Management
    wants the products to be weighted 40%, 40%, 20% in the bonus plan. The bonus
    payouts kick in at a minimum of 70% sales to quota. However, there is a
    stipulation that no sales person can be paid if their sales growth is
    negative.

    I have been asked to set a growth target for each product. My concern is the
    products are not growing very fast (around 2%-4% each.) I need to determine
    the minimum targets need to be for each product to satisfy the above
    criteria. Is there a way the Solver tool can solve this?

  2. #2
    Tushar Mehta
    Guest

    Re: Solver question

    From what you've described there's no need for Solver. A worksheet model
    should do the job. Of course, you still need to better define things like
    "sales growth is negative," how product weighting affects the bonus, what
    happens after "70% sales to quota," are the threholds product specific or
    global, etc.

    --
    Regards,

    Tushar Mehta
    www.tushar-mehta.com
    Excel, PowerPoint, and VBA add-ins, tutorials
    Custom MS Office productivity solutions

    In article <[email protected]>,
    [email protected] says...
    > I can't seem to solve this problem. I am setting up a bonus program for our
    > sales people. Each sales person sells 3 products (A, B and C.) Management
    > wants the products to be weighted 40%, 40%, 20% in the bonus plan. The bonus
    > payouts kick in at a minimum of 70% sales to quota. However, there is a
    > stipulation that no sales person can be paid if their sales growth is
    > negative.
    >
    > I have been asked to set a growth target for each product. My concern is the
    > products are not growing very fast (around 2%-4% each.) I need to determine
    > the minimum targets need to be for each product to satisfy the above
    > criteria. Is there a way the Solver tool can solve this?
    >


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