Goal Programming: Example 1 on Page 191 Show HIM LIP HIW Cost/min Football 7 M 10 M 5 M $100,000 Soap Opera 3 M 5 M 4 M $60,000 min min min max 40 M 60 M 35 M $600,000 O.F. S.t. HIM LIP HIW Budget No feasible solution IE 416, Chap 4, August 99

Deviational Variables = amount exceeded ith goal = amount under ith goal Penalty cost: based on the order and magnitude of importance. O.F. S.t. HIM LIP HIW Budget All Variables are nonnegative IE 416, Chap 4, August 99

Preemptive Goal Programming Order of importance is known: P1>>P2>>P3 O.F. S.t. HIM LIP HIW Budget All Variables are nonnegative IE 416, Chap 4, August 99

Suncoast Office, Summary Problem a Goal Programming Problem Number of Contact Sales no. / contact hr / cust. $ / cust. mon. Customer Previous 200 2 250 X1 New 120 3 125 X2 * 4 contact agent * max 40 hr/ mon. overtime *at least * max 30 hr/ mon. under $70,000/ mon. utilization From: An Introduction to Management Science By: Anderson, Sweeney, Williams IE 416, Chap 4, Sept. 2009

Suncoast Office, Formulation, a Goal Programming Problem O.F: Min Min IE 416, Chap 4, Sept 2009

Suncoast Office, Sensitivity Analysis a Goal Programming Problem Priorities Optimal Solution Second Deviation Highest Highest Lowest X1 X2 Z1 Z2 Z3 S1+, S2- S3- S4-, S5- 250 60 0 0 60 S3- S1+, S2- S4-, S5- 250 60 0 0 60 S4-, S5- S1+, S2- S3- 200 120 0 80 5000 Based on solution on “Class Notes & Video” web page. IE 416, Chap 4, May ‘99

Goal Programming Available Formulation of Problem . Information Goal as. Coefficient of O.F. mpi goals & constraint zero no O.F. mpi goals & modified const. penalty penalty with deviation var. mpi goals & multi O.F. P1>>P2 ... order (ordered) IE 416, Chap 14:1, July 98

Goal Programming Assume to know relative importance of goals Have an additive linear cost function Use LP Do not know precisely the relative importance of goals Have a rank order of goals Use preemptive goal programming (goal programming simplex) IE 416, Chap 14:2, July 98