Scribd Logo
Upload

Welcome to Scribd!

  • 206 views

    Goal Programming Group4 Amat112b

    Uploaded by

    bernabarillo
    The document discusses goal programming, an extension of linear programming that deals with maximizing or minimizing multiple objective functions subject to constraints. It provides examples of how goal programming formulates problems with multiple goals by introducing deviation variables and prioritizing goals. The example presented is of a paint company that wants to minimize overtime use, achieve a weekly profit target, and produce a minimum amount of enamel paint using its labor constraints. The document outlines the steps to model this as a goal programming problem.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd

    Goal Programming Group4 Amat112b

    Uploaded by

    bernabarillo
    206 views24 pages
    The document discusses goal programming, an extension of linear programming that deals with maximizing or minimizing multiple objective functions subject to constraints. It provides examples of how goal programming formulates problems with multiple goals by introducing deviation variables and prioritizing goals. The example presented is of a paint company that wants to minimize overtime use, achieve a weekly profit target, and produce a minimum amount of enamel paint using its labor constraints. The document outlines the steps to model this as a goal programming problem.

    Original Description:

    POWERPOINT PRESENTATION ON APPLICATION OF GOAL PROGRAMMING

    Copyright

    © © All Rights Reserved

    Available Formats

    PPTX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    The document discusses goal programming, an extension of linear programming that deals with maximizing or minimizing multiple objective functions subject to constraints. It provides examples of how goal programming formulates problems with multiple goals by introducing deviation variables and prioritizing goals. The example presented is of a paint company that wants to minimize overtime use, achieve a weekly profit target, and produce a minimum amount of enamel paint using its labor constraints. The document outlines the steps to model this as a goal programming problem.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    206 views24 pages

    Goal Programming Group4 Amat112b

    Uploaded by

    bernabarillo
    The document discusses goal programming, an extension of linear programming that deals with maximizing or minimizing multiple objective functions subject to constraints. It provides examples of how goal programming formulates problems with multiple goals by introducing deviation variables and prioritizing goals. The example presented is of a paint company that wants to minimize overtime use, achieve a weekly profit target, and produce a minimum amount of enamel paint using its labor constraints. The document outlines the steps to model this as a goal programming problem.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 24

    PROJECT SELECTION

    DECISION MAKING
    -A GOAL PROGRAMMING APPROACH
    Group 4
    Aspi, Maria Mercedes
    Barillo, Bernadette Joyce
    Billones, Jesica
    Dela Cruz, Mark Allan
    Realizo, Regina Marie

    Objectives
    Define goal programming
    Compare goal programming with linear
    programming
    Give an example of goal programming
    Explain an application of goal programming
    in insurance

    Goal Programming
    -an extension of linear programming, is a branch of multiobjective optimization, in which it deals with maximizing or
    minimizing multiple objective functions subject to a set of
    constraints.

    Goal Programming

    Linear Programming

    Multiple Goals

    One Goal

    Deviation Variables are Minimized

    Maximizing Profit / Minimizing Costs

    The feasible region of the Goal


    programming is approximately certain
    Comparison:
    They

    are both are formulated under the requirements and assumptions of linear
    programming which are linearity, non-negativity, and certainty.
    It also uses graphical methods to illustrate linear programming concepts.

    Definition of Terms:
    Deviation Variables are variables that show
    whether the goals are attained or otherwise.
    oPositive Deviation Variables
    oNegative Deviation Variables
    Example:
    10 L+ 15 E+ Y1- Y1+= 40

    Goal Function
    Example:
    100 L+ 100 E+ Y2 Y2+= 1000
    Achievement Function
    Example:
    Minimize
    A = P1d1-+ P2d2-+ P3d3-+P2d4-+ P3d5-+ P4d6-+ P4d7-+
    P5d4++ P6d6+ + P6d7

    Example
    A small paint company manufactures two types of paint,
    latex and enamel. In production, the company uses 10 hours
    of labor to produce 100 gallons of latex and 15 hours of
    labor to produce 100 gallons of enamel. The company has
    40 hours of daily labor and 30 hours of overtime labour
    available each week. Furthermore, if enamel paint is
    produced, latex paint must also be produced. Each paint
    generates a profit at the rate of $1.00 per gallon.

    The company has the following objectives listed in


    decreasing priority:
    Avoid the use of overtime
    Achieve a weekly profit of $1000
    Produce at least 700 gallons of enamel paint each week

    Goal Programming Formulation


    Step 1: State the Decision Variables
    Latex

    Enamel

    Labor for 100 gallons (hours)

    10

    15

    Profit for 1 gallon

    $1

    $1

    Let
    L = no. of 100 gallons of latex paint produced per week
    E = no. of 100 gallons of enamel paint produced per week

    Step 2: State the (Functional) Constraints


    Labour 70 hours/ wk
    Latex paint Enamel paint

    Functional Constraints:
    10 L + 15 E 70
    LE 0 because, L E

    Step 3a: Decide the priority level of each goal.


    P1: Goal 1 - Labour has to be 40 hrs/wk
    P2: Goal 2 - Profit $1000
    P 3: Goal 3 - Enamel paint i.e. enamel paint 700 gallons/wk
    Where P1, P2, P3 are the priorities of the goals, where P1 P2 P3

    Step 3b: Rewrite the goal constraints using the decision


    variables
    P1: Goal 1 - 100L + 15 E 40 hrs/wk
    P2: Goal 2 - 100 L + 100 E 1000
    P 3: Goal 3 E 7
    Where P1, P2, P3 are the priorities of the goals, where P1 P2 P3

    Step 4: Add deviation variables to the goal constraints

    Goal 1: 10 L+ 15 E+ Y1- Y1+= 40


    Goal 2: 100 L+ 100 E+ Y2 Y2+= 1000
    Goal 3: E+ Y3- Y3+= 1000

    Step 5: Write the objective function with priorities

    Minimize
    +
    Z =P1Y1 + P2Y2 + P3Y3

    Goal Programming Model


    Min Z = P1Y1++ P2Y2-+ P3Y3-

    s.t.
    10 L + 15 E 70
    L E 0

    (Labour)

    (Production)

    Goal 1: 10 L+ 15 E+ Y1- Y1+= 40

    (Overtime)

    Goal 2: 100 L+ 100 E+ Y2 -Y2+= 1000


    Goal 3: E+ Y3- Y3+= 1000

    (Profit)

    (Profit)

    PROJECT SELECTION
    DECISION MAKING
    -A GOAL PROGRAMMING APPROACH
    V. Subbaiah, G. Ravindra Babu & S. D. Sahrma
    Pacific-Asian Journal of Mathematics, Volume 5, No. 2, July-December 2011

    Capital Budgeting
    is a method for evaluating, comparing, and
    selecting projects to achieve the best long-term
    financial return of companies or businesses.

    The data specifies for consideration nine mutually exclusive projects with given present
    values of outlays for periods I&II and given present values of investment proposals of
    large-scale industry in Hyderabad.

    Objective Function

    Minimize

    A = P1d1 + P d + P3d3 +P d + P d +
    -

    2 2

    2 4

    P4d6 + P4d7 + P5d4 + P d + P6d7

    3 5

    +
    6 6

    REFERENCES:
    Hoisen, A. (2005). Two Variable Goal Programming Model with Priorities. Retrieved
    from http://prejudice.tripod.com/ME30B/two_gp.htm
    Kumar, A. (2015). Goal programming approach for the study of industrial problems,
    (Mcdm), 141. Retrieved from http://shodhganga.inflibnet.ac.in/handle/10603/46789
    V. Subbaiah, G. Ravindra Babu & S. D. Sahrma(2011). Project Selection Decision
    Making-a Goal Programming Approach, Pacific-Asian Journal of Mathematics, 5(2).
    Workday, H., & Erp, L. (n.d.). Innovation in Financial Management Innovation in
    Financial Management, 3, 211229.

    Man is a goal seeking animal. His life only has meaning if he is reaching
    out and striving for his goals.
    Aristotle 384-322 BC

    You might also like