Goal Programming

GOAL PROGRAMMING
2003 Thomson/South-Western
Slide 1
Introduction
Most of the optimization problems
considered to this point have had a single
objective.
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.
Slide 2
Goal Programming (GP)
Most LP problems have hard

constraints that cannot be violated...
There are 1,566 labor hours
available.
There is RM850,00 available for
projects.
Slide 3
Goal Programming (GP)

o
In some cases, hard constraints are too

restrictive...
oYou have a maximum price in mind when
buying a car (this is your goal or target
price).
oIf you cant buy the car for this price
youll likely find a way to spend more.
We use soft constraints to represent such
goals or targets wed like to achieve.
Slide 4
GP: Example 1
Indah Beach Hotel Expansion
Roslan wants to expand the convention center at his
hotel in Port Dickson.
The types of conference rooms being considered are:
Size (sq m)
Unit Cost
Small
400
RM18,000
Medium
750
RM33,000
1,050
RM45,150
Large
Slide 5
Example 1
Roslan would like to add 5 small, 10 medium and 15
large conference rooms.
He would also like the total expansion to be 25,000
square meter and to limit the cost to RM1,000,000.
Slide 6
Defining the Decision Variables

X1 = number of small rooms to add
X2 = number of medium rooms to add
X3 = number of large rooms to add
Slide 7
Defining the Goals

Goal 1: The expansion should include approximately 5 small
conference rooms.
Goal 2: The expansion should include approximately 10
medium conference rooms.
Goal 3: The expansion should include approximately 15 large
conference rooms.
Goal 4: The expansion should consist of approximately
25,000 square meter.
Goal 5: The expansion should cost approximately
RM1,000,000.
Slide 8
Defining the Goal Constraints

Small Rooms
X1 d 1 d 1 5
Medium Rooms
X 2 d d 10
Large Rooms
X 3 d d 15
where
d ,d 0
Slide 9
Defining the Goal Constraints

(contd)
Total Expansion
400X1 750X 2 1,050X 3 d d 25,000

Total Cost
(in RM1,000s)
18X1 33X 2 4515

. X 3 d d 1,000
where
d ,d 0
Slide 10
GP Objective Functions
There are numerous objective functions
we could formulate for a GP problem.
Minimize the sum of the deviations:
MIN d
i
di
(choice 1)
Problem: The deviations measure different things, so what does

this objective represent?
Slide 11
GP Objective Functions (contd)

Minimize the sum of percentage deviations
MIN
1
i t di di
i
where ti represents the targetvalue ofgoal i .
(choice 2)
Slide 12

Problem:
Suppose the first goal is underachieved
by 1 small room and the fifth goal is
overachieved by RM20,000.
We underachieve goal 1 by 1/5=20%
We overachieve goal 5 by 20,000/1,000,000= 2%
Slide 13

This implies being RM20,000 over
budget is just as undesirable as
having one too few small rooms.
Is this true? Only the decision maker
can say for sure.
Slide 14

Weights can be used in the previous objectives to
allow the decision maker indicate desirable vs.
undesirable deviations the relative importance
of various goals
Slide 15

Minimize the weighted sum of deviations
MIN
w d
i

i i

i i
w d
(choice 3)
Minimize the weighted sum of % deviations

MIN
1

w
d
w
i t i i i di
i
(choice 4)
Slide 16
Defining the Objective
Assume
It is undesirable to underachieve any of the first
three room goals
It is undesirable to overachieve or underachieve the
25,000 sq meter expansion goal
It is undesirable to overachieve the RM1,000,000
total cost goal
Slide 17
Defining the Objective

w 1 w 2 w 3
w 4
w 4
w 5
MIN : d1
d2
d3
d4
d4
d 5
5
10
15
25,000
25,000
1,000,000
Initially, we will assume all the above

weights equal 1.
Slide 18
GP: EXAMPLE 2
Kreatif Company employs skilled artisans to
produce clay bowls and mugs with authentic
Malaysian designs and colors. The two
primary resources used by the company are
special pottery clay and skilled labor.
Slide 19
EXAMPLE 2
The company desires to know how many
bowls and mugs to produce each day to
maximize profit. The two products have
the following resource requirements for
production and profit per item produced:
Slide 20
EXAMPLE 2
Resource requirement
Products
Bowl
Mug
Labor
(hr/unit)
1
2
Clay
(kg/unit)
4
3
Profit
(RM/unit)
40
50
There are 40 hours of labor and 120 kg of clay available each day
for production. Formulate a LP model.
Slide 21
EXAMPLE 2
Decision variables:
x1 = number of bowls to produce
x2 = number of mugs to produce
Objective function: to maximize total profit
Maximize Z = 40x1 + 50x2
Constraints:
Labor: x1 2 x 2 40
Clay: 4 x1 3 x2 120
Slide 22
The Complete LP Model

Subject to
x1 2 x 2 40
4 x1 3x2 120
x1 , x2 0
1. Solve using graph
2. Solve using Excel Solver
3. Solve using DS For Windows
Slide 23
Goal Programming
Goal programming may be used to solve
linear programs with multiple
objectives, with each objective
viewed as a "goal".
In goal programming, di+ and di- ,
deviation variables, are the amounts a
targeted goal i is overachieved or
underachieved, respectively.
Slide 24
Goal Programming
The goals themselves are added to the
constraint set with di+ and di- acting
as the surplus and slack variables.
One approach to goal programming is to
satisfy goals in a priority sequence.
Second-priority goals are pursued
without reducing the first-priority
goals, etc.
Slide 25
Goal Programming
For each priority level, the objective
function is to minimize the (weighted)
sum of the goal deviations.
Previous "optimal" achievements of goals
are added to the constraint set so that
they are not degraded while trying to
achieve lesser priority goals.
Slide 26
Goal Programming Approach

Step 1:
Decide the priority level of each goal.
Step 2:
Decide the weight on each goal. If a priority
level has more than one goal, for each goal i
decide the weight, wi , to be placed on the
deviation(s), di+ and/or di-, from the goal.
Slide 27

Step 3:
Set up the initial linear program.
Min w1d1+ + w2d2s.t. Functional Constraints,
and Goal Constraints
Step 4: Solve the current linear program.
If there is a lower priority level, go to
Step 5. Otherwise, a final solution has been
reached.
Slide 28

Step 5: Set up the new linear program.
Consider the next-lower priority level goals
and formulate a new objective function
based on these goals. Add a constraint
requiring the achievement of the nexthigher priority level goals to be maintained.
Slide 29

Step 5: cont
The new linear program might be:
s.t.
Min w3d3+ + w4d4Functional Constraints,

Goal Constraints, and
w1d1+ + w2d2- = k
Go to step 4. (Repeat steps 4 and 5 until all

priority levels have been examined.)
Slide 30
Recall Kreatif Company Problem

Subject to
x1 2 x 2 40
4 x1 3x2 120
x1 , x2 0
Now, let us suppose that instead of having one objective, the company
has several objectives that are listed below in order of importance.
Slide 31
Alter the problem:

To avoid layoffs, the company do not
want to use fewer than 40 hours of
labor per day (priority 1).
The company would like to achieve a
satisfactory profit of RM 1,600 per
day (priority 2).
Slide 32
Alter the problem:

Because the clay must be stored in a
special place so that it does not dry out,
the company prefers not to keep more
than 120 kg on hand each day (priority
3).
Because high overhead costs results when
the plant is kept open past normal
hours, the company would like to
minimize the amount of overtime
(priority 4).
Slide 33
Alter the problem:

To avoid layoffs, the company do not want to use
fewer than 40 hours of labor per day (priority 1).
x1 2 x2 40
x1 2 x2 d d 40
1 are deviational variables.
d ,d
will minimize the underachievement variable: d
Slide 34
Alter the problem:

The company would like to achieve a satisfactory profit
of RM 1,600 per day (priority 2).
40 x1 50 x 2 1600
40 x1 50 x2 d d 1600
will minimize the underachievement variable:
Slide 35
Alter the problem:

Because the clay must be stored in a special place so
that it does not dry out, the company prefers not to
keep more than 120 kg on hand each day (priority 3).
4 x1 3x2 120
4 x1 3 x2 d d 120
will minimize the overachievement variable:
Slide 36
Alter the problem:

Because high overhead costs results when the plant is kept
open past normal hours, the company would like to
minimize the amount of overtime (priority 4).
x1 2 x 2 40
x1 2 x2 d d 40
will minimize the overachievement variable:
Slide 37
The Complete GP Model
Minimize ( d1 , d 2 , d 3 , d1 )
Subject to
x1 2 x2 d d 40
40 x1 50 x2 d d 1600
4 x1 3 x2 d d 120
x1 2 x2 d d 40
Slide 38
The Complete GP Model
Minimize ( d1 , d 2 , d 3 , d1 )
Subject to
x1 2 x2 d d 40
40 x1 50 x2 d d 1600
4 x1 3 x2 d d 120
x1 , x 2 , d , d , d , d , d , d 0
Slide 39
Demonstration Using Excel Solver

and DS for Windows
Slide 40
Comments About GP
GP involves making trade-offs among
the goals until the most satisfying
solution is found
GP objective function values should not
be compared because the weights are
changed in each iteration. Compare
the solutions!
Slide 41
Comments About GP
An arbitrarily large weight will
effectively change a soft constraint
to a hard constraint.
Hard constraints can be place on
deviational variables.
Slide 42
Summary of Goal Programming

1.
Identify the decision variables
in the problem.
2.
Identify any hard constraints
in the problem and formulate them in
the usual way.
3.
State the goals of the problem
along with their target values.
Slide 43

4.
Create constraints using the
decision variables that would achieve the
goals exactly.
5.
Transform the above constraints
into goal constraints by including
deviational variables.
6.
Determine which deviational
variables represent undesirable
deviations from the goals.
Slide 44

7.
Formulate an objective that
penalizes the undesirable deviations.
8.
Identify appropriate weights for
the objective.
9.
Solve the problem.
10.
Inspect the solution to the
problem. If the solution is unacceptable,
return to step 8 and revise the weights
as needed.
Slide 45
Food of thought
One cannot escape the feeling that
these mathematical formulas have an
independent existence and an
intelligence of their own, that they are
wiser than we are, wiser even than
their discoverers.
Slide 46

Goal Programming

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Goal Programming

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GOAL PROGRAMMING

Goal Programming (GP)

Most LP problems have hard

Goal Programming (GP)

In some cases, hard constraints are too

Defining the Decision Variables

Defining the Goals

Defining the Goal Constraints

Defining the Goal Constraints

400X1 750X 2 1,050X 3 d d 25,000

18X1 33X 2 4515

Problem: The deviations measure different things, so what does

GP Objective Functions (contd)

where ti represents the targetvalue ofgoal i .

GP Objective Functions (contd)

GP Objective Functions (contd)

GP Objective Functions (contd)

GP Objective Functions (contd)

Minimize the weighted sum of % deviations

Defining the Objective

Defining the Objective

Initially, we will assume all the above

The Complete LP Model

Goal Programming Approach

Goal Programming Approach

Goal Programming Approach

Goal Programming Approach

Min w3d3+ + w4d4Functional Constraints,

Go to step 4. (Repeat steps 4 and 5 until all

Recall Kreatif Company Problem

Alter the problem:

Alter the problem:

Alter the problem:

1 are deviational variables.

will minimize the underachievement variable: d

Alter the problem:

Maximize Z = 40x1 + 50x2

Alter the problem:

Alter the problem:

The Complete GP Model

The Complete GP Model

Demonstration Using Excel Solver

Summary of Goal Programming

Summary of Goal Programming

Summary of Goal Programming

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