Interactive Optimization Aspects of Electronic Spreadsheet Models for Design and Planning

This paper extends the discussion of the relationship between optimization and electronic spreadsheet modelling. Previous authors have described two connections. These are, first, the use of spreadsheets to facilitate optimization projects and, second, the use of optimization within the spreadsheet model itself such as for cell value computation. In this paper we argue that use of the spreadsheet model for planning and design problems often may actually be viewed as interactive multi-criterion optimization per se. This provides a third connection between optimization and spreadsheet models. We base our arguments on a simplified example arising in insurance consulting work and note other examples as well. We also propose a method for incorporating this observation into existing spreadsheet models and indicate desirable innovations in spreadsheet software.