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When solving goal programming problems using spreadsheets, the problem must be solved sequentially by formulating and solving for each priority goal in the objective function starting with the highest. Once a solution is reached, the deviational variable value is added as a constraint and the next priority variable becomes the new objective. This process continues sequentially until all priorities are exhausted or a better solution cannot be found. The document provides an example of using Excel's Solver tool to sequentially solve a modified goal programming problem for a company with goals around labor, overtime, and storage levels.

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49 views

2F

When solving goal programming problems using spreadsheets, the problem must be solved sequentially by formulating and solving for each priority goal in the objective function starting with the highest. Once a solution is reached, the deviational variable value is added as a constraint and the next priority variable becomes the new objective. This process continues sequentially until all priorities are exhausted or a better solution cannot be found. The document provides an example of using Excel's Solver tool to sequentially solve a modified goal programming problem for a company with goals around labor, overtime, and storage levels.

Uploaded by

JP
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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When using a spreadsheet (or any regular linear programming program) to solve a goal programming

problem, it must be solved sequentially. In this procedure, a new problem is formulated and solved for
each priority goal in the objective function, beginning with the highest priority. Once a solution for this
formulation is achieved, the value of the deviational variable that is the objective is added to the model as
a constraint, and the second-priority deviational variable becomes the new objective. A new solution is
achieved for each new objective sequentially until all the priorities are exhausted or it is clear that a better
solution cannot be reached. For our purposes, this means editing Excel’s Solver for each new solution.
Exhibit 9.5 shows the Solver Parameters window for our spreadsheet example. Recall that the first-
priority goal for our model is the minimization of the negative deviational variable (d 1-) for our labor
goal. This deviational variable is located in cell E5; thus, we start Solver by minimizing cell E5. We
identify B10:B11 (the decision variables) as well as E5:F7 (the deviational variables) as variables in the
model. The model constraints are for our goals (i.e., G5:G7=I5:I7).
Next, we will use Excel to solve a slightly more complicated goal programming model— that is, the
altered Beaver Creek Pottery Company example we developed at the beginning of this chapter, with goals
for overtime and maximum storage levels for bowls and mugs:

The spreadsheet for this modified version of our example is shown in Exhibit 9.7. The spreadsheet is set
up much the same as the original version of this example, with the exception of the goal constraint for
overtime. The formula for this goal constraint is included in cell G8 as =F5+E8-F8. In addition, the
positive deviational variables for the last two goal constraints are now included in the formulas
embedded in cells G9 and G10. For example, in cell G9 the constraint formula is C9*B13+E9 .
You will notice that this solution achieves the first two priority goals for minimizing d 1– and d2- which are
in cells E5 and E6. However, the third-priority goal to minimize d3 + is not achieved because its cell (F7)
has a value of 24 in it. Thus, we must follow the sequential approach to attempt to obtain a better
solution. We accomplish this by including E=50 (the achievement of our first goal) as a constraint in
Solver, as well as our second-priority goal that this solution achieved, E6=0 and then minimizing F7. This
Solver Parameters screen is shown in Exhibit 9.10.

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