Use of Goal Seek and Solver in Toronto General Hospital
Solver and Goal seek are add-on applications in Microsoft excel to increase its data analysis capabilities. Its application is being used inmost business environment due to its ease in availability and use, Microsoft excel is one of the Microsoft suite software’s which are installed once one install Microsoft office (Blattner, 2001). Its use in goal seeks and solver is by application of software’s which is being used in Toronto GeneralHospital.
Solver and Goal Seek are two immense tools which are incorporated in Excel which perform the art of data analysis and are keys for the provision of answers to simple and complex puzzles. Usually, Goal Seek is mostly primarily implemented in the occurrences where there is one indefinite variable. The solver is usually utilized when the variables are several and they pose constraints in multiple numbers. According to Jain, (2010) Solver is mostly used to implement primarily on complex financial analysis tables; however, one can also combine it with Grant charts. The solver is also handy in several other processes and function like production, marketing, accounting and financial models. Usually one should implement Solver when sourcing for an outcome in variables which are multiple and have constraint characteristics. When constraints are more complex, Goal Seek is usually implemented as a key feature which would support in reaching a particular goal, although this process usually deals with a single variable.
Usually in the majority of the business the variables usually are very complex. The complexity in this traits are based on ideologies and poses problems like; if the advertisement expenses escalate how will the profit goal be obtained? In the first quarter which is the best product which should be increased sales in case of business revenue decline? Which of the supply is cable of offering price and delivery optimal combination? Usually when such problems arises the best program to inject is Solver which is an add-in program which is Excel compatible. The mechanism behind Solver which is considered a powerful tool for analysis, capacitate to operate compound changing variables and constraints to source a solution which is optimal to decipher a problem. Previously solver has been a tool which has been used primarily as a tool for modeling analysis only. However, this program can be incorporated into any other models which can be created in Excel as well as Grant chart.
Solver Functions in the Hospital
- Solver helps in the evaluation of the Toronto General hospital’s future cost
- When Solver is implemented by the hospital, it will follow through against all projected cost from the actual cost
- Solver also helps to predict the hospital’s inventory strategies
- Follows through against projected inventory the actual production
- Predicts headcount adjacent to production loads
- For utmost competence run resource loading models
Goal seek and solver features to maximize the output of your financial model
Solver and Goal Seek in the financial model usually assist in maximizing of the output. This would be helpful in assisting the Toronto General hospital to evaluate the expenditure and thus this will tally in the maximizing of the output, thus the hospital would have saved a lot of revenues which would have been consumed through sourcing for this juncture. Through this docket, this two programs while using data tables they undertake and inject sensitivity analysis in the Toronto GeneralHospital financial capital budget. Usually, when using Goal Seek program it is usually appropriated that it be implemented on while sourcing the indifference point. When extreme output maximization is the target application of two-way data tables and Solver is essential. Usually when the financial model main juncture is to maximize profit the most appropriate program is Solver, when this program is adapted then the Toronto GeneralHospital profit maximize. These programs are usually best implemented when evaluating two-way data tables and also are best sources for a decision making in the cases of uncertainty (SC-Education, 2010).
Determining the appropriate capital budgeting models to formulate effective capital investment decisions
When both Goal Seek and Solver programs are injected in the system of Toronto GeneralHospital, this will be helpful in the determination of the capital budgeting models; this will facilitate the decision which will be effective to the capital investment. However for this juncture to fully materialize the hospital has to incorporate Goal Seek and Solver. This will help the hospital in being able to judge investments and projects through NPV rule of understanding.
Toronto GeneralHospital will also be able to evaluate investments through the means of IRR rule assessment. These programs allow the hospital to negotiate which form of rule to implement strategically either NPV or IRR. This gives the hospital an upper hand in most critical decision making which may affect capital budgeting. These programs help the hospital to establish in different project rankings when is best to implement and execute IRR or NPV. The programs also incorporate and inject a modified IRR (MIRR) this will assist in eliminating the weakness of IRR.
These programs are ideal for the smooth running of Toronto General Hospital when implemented they empower the hospital to save financially and be able to make some sound decision which facilitates recommendable in the capital budget. Solver would be essential in helping the hospital to analyze which services to implement and also how to rate the prices of the services they are offering. Through such analysis, the hospital will be able to articulate on the kind of revenue to implement and in which juncture they are to the source to derive at maximizing output in the financial model. This programs also offers the hospital with a choice of either implementing Goal Seek or Solver, this is because it is articulate that because the mechanism of Solver incorporate principles like minima, boundaries and maxima this model is complex, however, Goal seek to compliment it with simpler terms.