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Operations Research: Goal Programming

Goal programming is a technique for multicriteria decision making that considers multiple objectives. It aims to minimize deviations from goals or targets for each objective, rather than optimizing a single objective. The document describes a two mine production problem with conflicting objectives of minimizing costs and avoiding excess ore production. It formulates the problem as a goal programming model that introduces deviation variables and weights to minimize the weighted sum of deviations from cost and production goals.

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Ashish Banstola
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205 views

Operations Research: Goal Programming

Goal programming is a technique for multicriteria decision making that considers multiple objectives. It aims to minimize deviations from goals or targets for each objective, rather than optimizing a single objective. The document describes a two mine production problem with conflicting objectives of minimizing costs and avoiding excess ore production. It formulates the problem as a goal programming model that introduces deviation variables and weights to minimize the weighted sum of deviations from cost and production goals.

Uploaded by

Ashish Banstola
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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Operations Research

Chapter 8

Goal Programming

1/29/2019 BG 1
Multicriteria decision making refers to situations where we have more than one
objective (or goal) and these objectives conflict and we must somehow reach a
decision taking them all into account. This contrasts with linear programming, where
we have a single objective – optimize a single linear objective.
“Goal programming” is one of the techniques used for multicriteria decision
making.

Goal Programming

Goal programming is a variation of linear programming considering more than one


objective (goals) in the objective function.

1/29/2019 BG 2
Two Mines Problem
The Two Mines Company own two different mines that produce an ore which, after being
crushed, is graded into three classes: high, medium and low-grade. The company has
contracted to provide a smelting plant with 12 tons of high-grade, 8 tons of medium-grade
and 24 tons of low-grade ore per week. The two mines have different operating
characteristics as detailed below.
How many days per week should each mine be operated to fulfil the smelting plant
contract? Assume that only 5 days are available per week for work.

Production (tons/day)
Mine Cost per day ($, 1,000 )
High Medium Low
X 180 6 3 4
Y 160 1 1 6

1/29/2019 BG 3
Soln.
x = number of days per week mine X is operated
y = number of days per week mine Y is operated
So the linear problem becomes:
Minimize z = 180x + 160y
subject to
6x + 1y ≥ 12
3x + 1y ≥ 8
4x + 6y ≥ 24
x≤5
y≤5
x, y ≥ 0
The solution to this linear program is:
x = 12/7 = 1.71, y = 20/7 = 2.86
The value of the objective function, z = 180x + 160y = 180(12/7) + 160(20/7) = 765.71

1/29/2019 BG 4
Now although the solution shown above is the minimum cost solution it does raise a
difficulty.
 We will be producing precisely as much medium and low-grade ore per week as we
need.
 However we will be producing 6(12/7)+1(20/7) = 13.14 tonnes of high-grade per
week. As the contract is only for 12 tonnes we will somehow have to deal with this
excess.
So this problem becomes a problem with two (conflicting) objectives:
• minimize cost
• do not produce excess ore
Now if we move from our current solution to reduce the excess of high-grade ore we
might find an excess of another grade of ore. Hence we need to consider all grades
and their excess rather than just high-grade.
Goal programming is one approach to dealing with problems of this kind.

1/29/2019 BG 5
Goal programming formulation
To deal with these two objectives in our example problem via GP we need to introduce
extra variables – these variables deal with the deviation from the goal for each objective.
To proceed we need to decide a numeric goal for each objective.
We now have two objectives:
• minimize cost – our previously calculated minimum cost was 765.71 (per week). The
company may consider that, in the interests of eliminating excess ore, they would be
prepared to increase the cost that they incur, but they would not like this cost to
increase beyond 800. This figure of 800 becomes our numeric cost goal.
• do not produce excess ore –three grades of ore for which the respective goals are the
amount that we need: 12, 8 and 24 tons respectively.
Let C+ (≥0) represent the amount by which we deviate upward from our cost goal and C-
(≥0) represent the amount by which we deviate downward from our cost goal. Then we
have an equation linking these new variables to our old variables:
180x + 160y = 800 + C+ - C-

1/29/2019 BG 6
180x + 160y = 800 + C+ - C-
This constraint, which must be an equality, says that whatever we decide in terms of
production on mines X and Y (x and y respectively) the cost of that (180x + 160y) must
equal the goal (800) adjusted by the deviation variables C+ and C-.
 C+ in this equation indicates an upward movement (deviation) from the goal and C-
indicates a downward movement (deviation) from the goal.
Similarly, let H+, M+ and L+ (all ≥ 0) be the upward deviation for high, medium and low-
grade respectively and H-, M- and L- (all ≥ 0) be the downward deviations.
So the LP problem becomes;
180x + 160y = 800 + C+ - C-
6x + 1y = 12 + H+ - H-
3x + 1y = 8 + M+ - M-
4x + 6y = 24 + L+ - L-
x≤5
y≤5
x, y, C+, C-, H+, H-, M+, M-, L+, L- ≥ 0
1/29/2019 BG 7
Two approaches to solve goal programming:
a) Weighted approach
To attach weights to each of the variables associated with upward/downward
deviation and then to solve a single problem whose objective is to minimize this
weighted deviation sum.
For the weighted approach suppose that we always wish to supply the amount of ore
we are contracted to supply, so that H- = M- =L- = 0 (i.e. these variables can be
eliminated from the problem). This leaves variables C+, C-, H+, M+ and L+ each of
which must be assigned a weight. This weight can only come from managerial
consideration of the situation and, if necessary, starting with a set of weights and then
revising them in the light of the solution obtained after solving the problem with those
weights.
In setting weights, the management needs to think in terms of the weight associated
with one percentage deviation from the current goal for each variable.

1/29/2019 BG 8
Suppose, to proceed, that
management have decided that
the weights to be applied are:

Then the objective becomes:


Minimize 25(C+/8) – 20(C-/8) + 40(H+/0.12) +10(M+/0.08) +3(L+/0.24)
In this objective (C+/8), for example, is the total percentage upward deviation from the cost goal.
Rearranging: 3.125C+ – 2.5C- + 333.333H+ + 125M+ + 12.5L+ and so the LPP becomes;
Minimize 3.125C+ – 2.5C- + 333.333H+ +125M+ +12.5L+
subject to
180x + 160y = 800 + C+ - C-
6x + 1y = 12 + H+
3x + 1y = 8 + M+
4x + 6y = 24 + L+
x ≤ 5, y ≤ 5, x, y, C+, C-, H+, M+, L+ ≥ 0
1/29/2019 BG 9

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