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Goal Programming

This document introduces goal programming as a technique to solve problems with multiple objectives or goals. It describes how goal programming differs from linear programming by allowing goals to be "satisficed" rather than optimized. It then provides an example of formulating a goal programming model to solve a production planning problem with multiple objectives, including minimizing deviations from profit, production, and resource utilization goals.

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Rajesh Mishra
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451 views

Goal Programming

This document introduces goal programming as a technique to solve problems with multiple objectives or goals. It describes how goal programming differs from linear programming by allowing goals to be "satisficed" rather than optimized. It then provides an example of formulating a goal programming model to solve a production planning problem with multiple objectives, including minimizing deviations from profit, production, and resource utilization goals.

Uploaded by

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

Introduction
Profit maximization or cost minimization not always only objectives.
Maximizing total profit is one of several objectives including other
contradictory objectives as:
maximizing market share,
maintaining full employment,
providing quality ecological management,
minimizing noise level, and
meeting other non-economic targets or goals.
Important technique developed to supplement LP is goal
programming
A technique designed to solve problems in which there is more than one
objective/ multiple goals (Multicriteria Decision Problems).
Goal Programming (vs.
LP)
Multiple Goals (instead of one goal)
Satisfices (instead of optimize)
Coming as close as possible to reaching
the goal
Objective function is the main difference
DeviationalVariables Minimized (instead of
maximizing profit or minimizing cost of LP)
Once the goal programming is
formulated, we can solved it the same
as a LP minimization problem
Example of Goal Programming:
Harison Electric Company
Revisited
Case presented earlier as IP problem:
Objective: maximize profit = $600X1 + $700X2
subject to 2X1 + 3X2 <= 12 (wiring hours)
6X1 + 5X2 <= 30 (assembly hours)
X1, X2 >= 0
where
X1 = number of chandeliers produced
X2 = number of ceiling fans produced
Integer LP used to find single optimal solution (X1 = 3, X2= 2,
profit=$3,200)
Firm to move to new location.
Maximizing profit not realistic goal during move horizon.
Management sets $3,000 profit level as satisfactory during
adjustment period.
It is a goal Programming problem in which we want to find the production
mix that achieves this goal as closely as possible given the production time
constraints.
GP Model Formulation
Define two deviational variables:
d1-: underachievement of the profit target
d1+ : overachievement of the profit target
Min. under-or-overachievement of Z = d1- + d1+
Subject to
$600X1 + $700X2 + d1- - d1+ = $3,000 (profit goal)
2X1 + 3X2 <= 12 (wiring hours)
6X1 + 5X2 <= 30 (assembly hours)
X1, X2, d1-, d1+ >= 0
Comments on the GP
Model
First constraint -

$600X1 + $700X2 + d1- - d1+ = $3,000


Constraint contains over-achievement and under-
achievement variables with respect to $3,000 revised
target.
In event target exceeds $3,000, over-achievement variable
will state amount over the target.
In event target not met, under-achievement variable will
state amount under the target.
In event target amount achieved, the under- and over-
achievement variables will equal zero.
Comments on the GP
Model
If Harrisons management was only
concerned with underachievement of
the target goal, how would the objective
function change?
d1+ eliminated from the objective function
Min. underachievement of Z = d 1-
Comments on the GP
Model-Contd
Overachievement acceptable the
appropriate variable di+ can be
eliminated from the objective function.
Underachievement acceptable the di-
variable should be dropped.
Seek to attain a goal exactly both di-
and di+ must appear in the objective
function.
Extension to Equally
Important Multiple goals
Goal 1: to produce as much profit above
$3,000 as possible during the production
period.
Goal 2: to fully utilize the available wiring
department.
Goal 3: to avoid overtime in assembly
department.
Goal 4: to meet a contract requirement to
produce at least seven ceiling fans
Definition of the
Deviational variables
d1-: underachievement of the profit target
d1+ : overachievement of the profit target
d2-: idle time in the wiring department
d2+ : overtime in the wiring department
d3-: idle time in the assembly department
d3+ : overtime in the assembly department
d4-: underachievement of the ceiling fan goal
d4+ : overachievement in the ceiling fan goal
Model Formulation
Min. total deviation = d1- + d2- + d3+ + d4-
Subject to

$600X1 + $700X2 + d1- - d1+ = $3000 (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 (integer) and di variables >= 0


Ranking/Weighting
Goals
A key idea in goal programming is that
one goal is more important than
another.
Prioritiesor weights are assigned to each
deviational variable (e.g. P1 is most
important goal, P2 the next most important,
then P3, and so on.)
Example: lets say Harison Electric sets
the priorities shown in the following
table:
Ranking Goals
Goal Priority
Reach a profit as much above $3000 as possible P1
Fully use wiring department hour available P2
Avoid assembly department overtime P3
Produce at least seven ceiling fans P4

Objective function becomes:


- - + -
Min. total deviation = P1d1 + P2d2 + P3d3 + P4d4
The constraints remain identical to the previous ones.
Or Weigthed Goals
Goal weight
Reach a profit as much above $3000 as possible 40
Fully use wiring department hour available 30
Avoid assembly department overtime 20
Produce at least seven ceiling fans 10

Objective function becomes:


- - + -
Min. total deviation = 40d1 + 30d2 + 20d3 + 10d4
The constraints remain identical to the previous ones.
Solving the Goal
Programming problem
Solve multiple goal program using
weighted goals approach
Weights can be used to distinguish between different goals
(refer to the excel file)
The problem reduces to a simple LP model
Or
prioritized goals approach
Requires to solve a series of LP models
Four LP models in the case of our example
Solutions with weighted goals and ranked goals
can be different for the same problem.
Example (Final Exam, fall
02)
Michelow Ski Ldt. (MSL) is planning its winter production schedule
for its top-end designer winter sports equipment. MSL manufactures
three product lines: snowboards, downhill skis and cross-country
skis. To produce a designer snowboard requires two hours of
fabrication time and six hours of finishing time. Three hours of
fabrication time and five hours of finishing time are needed to
produce a pair of designer downhill skis, while a pair of cross-
country skis requires 3.5 hours of fabrication time a 4.5 hours of
finishing time. Profit per unit for the products is $600 for a
snowboard, $700 for a pair of downhill skis and $675 for a pair of
cross-country skis. There are 120 hours of fabrication time
available, and 300 hours of finishing time.
MSL has three objectives it would like to meet. First, MSL would like
to achieve a profit of at least $30,000. Second, MSL would like to
produce exactly 55 snowboards. Finally, MSL would like to use all of
the available fabrication time.
Develop a goal programming model for this problem.

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