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Goal Programming: Nico R. Penaredondo Msict

Goal programming is a technique that can be used to solve linear programs with multiple objectives. It establishes a hierarchy of goals and attempts to satisfy higher priority goals before addressing lower priority goals. The goals are subtracted and added to the constraints with deviation variables representing surplus and slack. The objective is to minimize the deviations between goals and what is achievable given the constraints. An example problem involving a company that produces ceiling fans and chandeliers is presented to illustrate how goal programming formulations are set up and solved graphically.

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Dika Virginia Devintasari
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94 views

Goal Programming: Nico R. Penaredondo Msict

Goal programming is a technique that can be used to solve linear programs with multiple objectives. It establishes a hierarchy of goals and attempts to satisfy higher priority goals before addressing lower priority goals. The goals are subtracted and added to the constraints with deviation variables representing surplus and slack. The objective is to minimize the deviations between goals and what is achievable given the constraints. An example problem involving a company that produces ceiling fans and chandeliers is presented to illustrate how goal programming formulations are set up and solved graphically.

Uploaded by

Dika Virginia Devintasari
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Goal Programming

Nico R. Penaredondo
MSICT
Goal Programming
▪ May be used to solve linear programs with multiple
objectives, with each objective viewed as a “goal”.

▪ The goals themselves are subtracted and added to


the constraint set with di+ and di– acting as the
surplus and slack variables

▪ A hierarchy of importance needs to be established


so that higher-priority goals are satisfied before
lower-priority goals are addressed
Goal Programming
▪ It is not always possible to satisfy every goal so
goal programming attempts to reach a
satisfactory level of multiple objectives

▪ The main difference is in the objective function


where goal programming tries to minimize the
deviations between goals and what we can
actually achieve within the given constraints
Goal Programming and Linear Programming
Differences
Differences between GP and LP

Goal Programming Linear Programming

Multiple Goals One Goal

Deviation Variables are Maximizing Profit /


minimized Minimizing Costs

Once the GP is formulated, we can solved it as the same as LP


minimization problem
Example Problem
Spade Hardware
▪The company produces two products popular with home
renovators, old-fashioned chandeliers and ceiling fans

▪Each chandelier produced nets the firm $7 and each fan $6

▪Both the chandeliers and fans require a two-step production


process involving wiring and assembly

▪It takes about 2 hours to wire each chandelier and 3 hours


to wire a ceiling fan

▪Final assembly of the chandeliers and fans requires 6 and 5


hours respectively

▪The production capability is such that only 12 hours of


wiring time and 30 hours of assembly time are available
LP Formulation
[Maximize Profit]
Z = 7x1 + 6x2

[Subject To]
2x1 + 3x2 <= 12 (Wiring Hours)
6x1 + 5x2 <= 30 (Assembly Hours)
x1,x2 >= 0

[Let]
x1 = # of chandeliers produced
x2 = # of ceiling fans produced
Spade Hardware
▪ Spade Hardware is moving to a new location and feels
that maximizing profit is not a realistic objective

▪ Management sets a profit level of $30 that would be


satisfactory during this period

▪ The goal programming problem is to find the production


mix that achieves this goal as closely as possible given
the production time constraints

▪ We need to define two deviational variables


di– = underachievement of the profit target
di+ = overachievement of the profit target
List of Goals
Space’s management wants to achieve several goals of
equal in priority

Goal 1: To produce a profit of $30 if possible during


the production period
Goal 2: To fully utilize the available wiring
department hours
Goal 3: To avoid overtime in the assembly
department
Goal 4: To meet a contract requirement to produce
at least seven ceiling fans
Deviation Variables
d1– = underachievement of the profit target
d1+ = overachievement of the profit target
d2– = idle time in the wiring department (underutilization)
d2+ = overtime in the wiring department (overutilization)
d3– = idle time in the assembly department (underutilization)
d3+ = overtime in the assembly department (overutilization)
d4– = underachievement of the ceiling fan goal
d4+ = overachievement of the ceiling fan goal

Because management is unconcerned about d1+, d2+, d3–, and d4+


these may be omitted from the objective function
GP Model
[Minimize Total Deviation]
d1– + d2– + d3+ + d4–

[Subject To]
7x1 + 6x2 + d1– – d1+ = 30 (Profit Constraint)
2x1 + 3x2 + d2– – d2+ = 12 (Wiring Hours)
6x1 + 5x2 + d3– – d3+ = 30 (Assembly Hours)
x2 + d4– – d4+ = 7 (Ceiling Fan Constraint)

All xi,di variables >= 0


Ranking Goals with Priority Levels
▪In most goal programming problems, one goal will be more
important than another, which will in turn be more important
than a third

▪Goals can be ranked with respect to their importance in


management’s eyes

▪Higher-order goals are satisfied before lower-order goals

▪Priorities (Pi’s) are assigned to each deviational variable


with the ranking so that P1 is the most important goal, P2 the
next most important, P3 the third, and so on
Ranking Goals with Priority Levels

Goal Priority
Reach a profit as much above $30 as possible P1
Fully use wiring department hours available
P2
Avoid assembly department overtime
P3
Purchase at least seven ceiling fans
P4

Minimize total deviation = P1d1– + P2d2– + P3d3+ + P4d4–


3 Characteristics of GP Problems

1. Goal programming models are all minimization


problems

2. There is no single objective, but multiple goals to be


attained

3. The deviation from the high-priority goal must be


minimized to the greatest extent possible before the
next-highest-priority goal is considered
Recalling GP Model
[Minimize Total Deviation]
P1d1– + P2d2– + P3d3+ + P4d4–

[Subject To]
7x1 + 6x2 + d 1– – d1+ = 30 (Profit Constraint)
2x1 + 3x2 + d 2– – d2+ = 12 (Wiring Hours)
6x1 + 5x2 + d 3– – d3+ = 30 (Assembly Hours)
x2 + d 4– – d4+ = 7 (Ceiling Fan Constraint)

All xi,di variables >= 0


Solving GP Problems
Graphically
First Goal Analysis
X2

7– Minimize Z = P1d1–

6–

5–

4–

3–

2–

1– d1– 7X1 + 6X2 = 30

0– | | | | | |

1 2 3 4 5 6 X1
First Goal and Second Goal Analysis
X2

7– Minimize Z = P1d1– + P2d2–

6–

5–

4–

3–
2X1 + 3X2 = 12
2–
d2+
1–
7X1 + 6X2 = 30 d2–
0– | | | | | |

1 2 3 4 5 6 X1
All four priority goals analysis
X2
d4+
7– X2 = 7
d4–
6 –A Minimize Z = P1d1– + P2d2– + P3d3– + P4d4–
d3+
5 –D
d3–
4–
d1+
3–
d2+ 6X1 + 5X2 = 30
C
2–
B
2X1 + 3X2 = 12
1–
7X1 + 6X2 = 30
0– | | | | | |

1 2 3 4 5 6
X1
Solving GP Problems Graphically
▪ The optimal solution must satisfy the first three goals and come as
close as possible to satisfying the fourth goal

▪ This would be point A on the graph with coordinates of X1 = 0 and


X2 = 6

▪ Substituting into the constraints we find


d1– = $0 d1+ = $6
d2– = 0 hours d2+ = 6 hours
d3– = 0 hours d3+ = 0 hours
d4– = 1 ceiling fan d4+ = 0 ceiling fans

A profit of $36 was achieved


exceeding the goal
Thanks!
Goal Programming
Nico Penaredondo
MSICT

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