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Goal Session

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Rahul Patil
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9 views22 pages

Goal Session

Uploaded by

Rahul Patil
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Goal Programming

Shivani Tiwari
What is Goal Programming?

 Mathematical model similar to Linear


Programming, however it allows for multiple
goals to be satisfied at the same time.
 Allows for the multiple goals to be prioritized
and weighted.
Introduction

 Most of the optimization problems considered to this point have


had a single objective(as seen in lpp)
 Often, more than one objective can be identified for a given
problem.
 Maximize Return or Minimize Risk
 Maximize Profit or Minimize Pollution
 These objectives often conflict with one another.
Goal Programming (GP)

 Most LP problems have hard constraints that cannot be violated...


 E.g.
 There are 1,566 labor hours available.
 There is $850,00 available for projects.
 We use soft constraints to represent such goals or targets we’d like to achieve.
 This way we are prioritizing the objectives and may forgo the least impacting
objective.
Assumptions

 Similar to LP:
 Non-negative variables
 Conditions of certainty
 Variables are independent
 Limited resources
 Deterministic
Components

 Goal Constraints
 Variable
 Concerned with target values
 Can be changed/modified
 Objective Function
 Minimizes the sum of the weighted deviations from the target values – this is ALWAYS the objective
for Goal Programming
 Not the same as LP (which was maximize revenue/minimize costs)
Practical Case Study:
 Problem: Amaze is an MNC which manufactures high end laptops. At one of its production facility, below are
the inventory levels, profit per unit and man hour availability.

 Model A: needs 1 processor and 2 SSDs


 Model B : needs 1 processor, 1 SSD and 1 HDD.
 Rest components can be assumed as pre fit ones and focus on above mentioned critical components.
 Inventory levels: 600 processor, 1000 SSDs, 500 HDD
 Profit per model A: 200$, Model B: 500$
 Assembly time-man-hour : 1 hr for model A and 1.5 hrs for model B.
 Following targets are received to production managerr from higher management to the production in
charge. The targets are from high priority to low priority.
 Target 1: Minimum 200 Model A to be made.
 Target 2: Minimum 500 total laptops to be made.
 Target 3: Minimum 2,50,000 $ profit to be made.
 Target 4: Maximum 400 man-hrs to be utilized .
 As a production manager, how many units for each models will you plan to manufacture in order to satisfy
the maximum no. of targets suggested by management?
Step-1: Constraints

 Say x1 = optimal qty of Model A and X2 = optimal qty of model B.


 Let's list down constraints.
 Model A: needs 1 processor and 2 SSDs
 Model B : needs 1 processor, 1 SSD and 1 HDD.
 Inventory levels:
 600 processor i.e. 1x1 + 1x2 <= 600 (because, 1 processor in model A and 1 in B)
 1000 SSDs, i.e. 2x1+x2 <= 1000 (because, 2 SDD in Model A and 1 in B)
 500 HDD, i.e. x2 <=500 (because, 0 HDD in Model A and 1 in B)
Step 2: Goal model

 Target 1: Minimum 200 Model A to be made. i.e. X1>= 200


 Target 2: Minimum 500 total laptops to be made. i.e. x1+x2 >= 500
 Target 3: Minimum 2,50,000 $ profit to be made. i.e. 200x1+ 500x2>=250000 (as Profit per model A:
200$, Model B: 500$ given)
 Target 4: Maximum 400 man-hrs to be utilized . i.e. x1+1.5x2<= 400 (as Assembly time-man-hour : 1
hr for model A and 1.5 hrs for model B given)

Can we satisfy all goals? Lets check…..


Step 3: First thing first-Plot constraints one
by one

 600 processor i.e. x1 + x2 <= 600


Step 3: contd.

 1000 SSDs, i.e. 2x1+x2 <= 1000


Step 3: contd.

 500 HDD, i.e. x2 <=500


Step – 4 Bring in goals as per priority

 Target 1: Minimum 200 Model A to be made. i.e.


X1>= 200
 Introduce in feasible region.
 Is it possible?
 Yes
Step-4 Contd.

 Target 2: Minimum 500 total laptops to be


made. i.e. x1+x2 >= 500
 Is it possible?

 Yes
Step-4 contd.

 Target 3: Minimum 2,50,000 $ profit to be


made. i.e. 200x1+ 500x2>=250000
 Is it possible in green zone?
 Ummmm…??/
 Close enough but just missed touching green
area
 Ans: Strictly no but, softly, little compromised
Step-4 contd.

 Target 4: Maximum 400 man-hrs to be


utilized . i.e. x1+1.5x2<= 400 Is it possible
in green zone?
 Ummmm…
 Not at all
 Ans: Strictly & softly No
Step 5: Study best possible options.

 Lets see the vertex of green zone


 A: (200,400)
 B: (200,300)
 C: (500,0)
 D: (400,200)
 Goal 1, 2 satisfied.
 Lets plug values for goal 3.
Step 5: Study best possible options.

 Goal 3: 200x1+ 500x2>=250000


 A: (200,400) = 2,40,000 $
 B: (200,300) = 1,90,00 $
 C: (500,0) = 1,00,000 $
 D: (400,200) = 1,80,000 $
 We’ll go with option A
 (Remember, slightly missed line in goal 3)
 Little compromised
Step 5: Study best possible options.

 Goal 4 : 200x1+ 500x2>=250000


 A: (200,400) = 2,40,000 $
 x1+1.5x2<= 400
 Actually, 800 hrs.
 Largely compromised
Summary

 You’ll suggest to manufacture 200 nos of model A and 400 nos of model B.
 This fully satisfies targets 1 and 2 of management
 Upto larger extents target 3 and not at all target 4.
Take Away

 Management decisions are often critical and we need to give priority to most concerned
one.
 Apply this to some of your personal or organizational problem.
 Try using solver.
 Exam point of view: small numerical with some goals and analyse using graphical way.
Practical case study analogy 2

Analogy: In simpler terms to produce batch of samosa, the constraints are 50kg potato, manpower
of 2 ppl is available. Your goal is to produce :
- 500 samosa(x1)
-maintain quality
-time taken shall not be 2 hrs(x2)
how many number for samosa will you plan to make in order to satisfy the maximum no. of targets
suggested by management
Here, you cant do anything with available material and man power, they are hard and real
contraints
Having lts manpower and material we want to satisfy the priorities of our goal as much as possible
By applying goal programming you may end up with satisfying first two goals ie 500 samosa and
highest quality rating. But it may take 6 hrs to complete the whole process.
Summary: with given constraints goal 1 and 2 are satisfied and goal 3 is greatly compromised
which is taking 4 hr extra than goal hours
 Most business situations end up achieving major goals and softly compromising few goals

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