Goal Programming is applied to the Queensland Government's State Purchasing Policy. A rigorous methodology is developed which measures the trade-offs between multiple conflicting objectives arising in the procurement of photocopiers within the Queensland Government.
The management problem is presented. Relevant sections of the State Purchasing Policy are discussed and details are provided on the usage and characteristics of photocopiers. Goals identified include Quality Assurance, environmental considerations (remanufactured machines, ozone emissions, sound emissions, recycled paper, organic drums), Australian content, and value for money (whole of life costs versus capital costs). Quantitative data is provided on these goals and data sources and limitations are discussed.
Alternative methods of capital acquisition are evaluated using Net Present Value techniques. Prioritised objective objections and constraints are developed and their coefficients determined. A commentary on the preference structure is provided.
Because of ambiguity within the State Purchasing Policy, the major aim of the study is to identify and evaluate the trade-offs of competing objectives. This is accomplished through the development of sixteen scenarios based on lexicographic goal programming which capture possible differences in the prioritization of goals. The results provide a wide range of measures of system performance and measure trade-offs between different goals. A two dimensional trade-off matrix is provided. In addition, a weighted goal programming approach is developed using comparative indices.