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Goal Programming

The document discusses goal programming, which is used to solve multi-objective optimization problems. It describes how goal programming formulates problems with desirable and undesirable deviations from goals. An example is provided to illustrate how goal programming can be used to solve an advertising optimization problem with multiple objectives.

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ajeng.saraswati
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87 views7 pages

Goal Programming

The document discusses goal programming, which is used to solve multi-objective optimization problems. It describes how goal programming formulates problems with desirable and undesirable deviations from goals. An example is provided to illustrate how goal programming can be used to solve an advertising optimization problem with multiple objectives.

Uploaded by

ajeng.saraswati
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

Goal Programming

Multiple-Objectives Problem: In most practical cases, decision


makers are faced a situation where they must achieve more
than two objectives (those may even be in conflict) at same
time.
Or more than two criteria must be used to evaluate a decision.

Examples:
Production Planning - Maximize Profit/Maximize Market
Share
Location Selection - Maximize Sales/Minimize Delivery Cost
Personal Schedule - Maximize GPA/Maximize Income
Formulation of GP Problems
Deviations: the amount away from the desired standards or objectives:
– Overachievement (d+i ≥ 0) vs. Underachievement (d-i ≥ 0)

– Desirable vs. Undesirable Deviations: (depend on the objectives)


• Max goals (≥) - the more the better - d+i desirable.
• Min goals (≤) - the less the better - d-i desirable.
• Exact goals (=) - exactly equal - both d+i and d-i undesirable

– In GP, the objective is to minimize the (weighted) sum of


undesirable deviations (all undesirable d+i and d-i →→ 0 ).

– For each goal, at least, one of d+i and d-i must be equal to "0"
Formulation of GP Problems

• Goals are prioritized in some sense, and their level of aspiration


is stated.

• An optimal solution is attained when all the goals are reached as


close as possible to their aspiration level, while satisfying a set
of constraints.

• There are two types of goal programming models:


– Nonpreemptive goal programming - no goal is pre-determined to
dominate any other goal.
– Preemptive goal programming - goals are assigned different priority
levels. Level 1 goal dominates level 2 goal, and so on.
NONPREEMPTIVE GOAL PROGRAMMING
An Advertisement Example
• A company is considering three forms of advertising.
Cost per Ad Customers
Television 3000 1000
Radio 800 500
• Goals Newspaper 250 200

– Goal 1: Spend no more $25,000 on advertising.


– Goal 2: Reach at least 30,000 new potential customers.
– Goal 3: Run at least 10 television spots.
An Advertisement Example

LP Model:

3000X1 + 800X2 + 250X3  25,000


1000X1 + 500X2 + 200X3  30,000
X1  10
An Advertisement Example

• Detrimental variables
Ui = the amount by which the left hand side falls short
of (under) its right hand side value.
Ei = the amount by which the left hand side exceeds its
right hand side value.
• The goal equations
3000X1 + 800X2 + 250X3 + U1 – E1 = 25,000
1000X1 + 500X2 + 200X3 + U2 – E2 = 30,000
X1 + U3 – E3 = 10
An Advertisement Example

• The objective is to minimize the penalty of not meeting the


goals, represented by the detrimental variables

E1 U2 U3

 25,000  30,000  10

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