INTRODUCTION:

Air Liquide Philippines Inc., produces gases from air or by using the planet's natural
resources. Then, the Group packages and distributes them to its customers directly for
their processes. Air Liquide supplies its customers in extremely diverse industries such
as steel industry, food and beverage, electronics or pharmaceuticals. In order to match
the needs of all of these clients, the Group is organized in different World Business
Lines. Having different business lines, ALPI must have Goal setting in order to achieve
success in any endeavour. The objective of this study is to put priorities first. It is very
complex to know where one is going if one does not know where to go. This is the
reason why having priorities may lessen the different objectives of a company at the
same time, and in order to have accomplished the goals, ALPI needs to be enthused,
grow or increase performance to satisfy the needs of different customers.

METHODOLOGY:
Goal Programming is a method to which its main purpose is not to develop an optimal
solution, but to “satisfice”, that is, to meet the desired level of achievement set for each
goal. Sometimes, one goal is more important than another goal, but their priority levels
are very same, In many Linear Programming problems, the objective function or goal
extends beyond just maximizing total profit or minimizing total cost for Air Liquide
Philippines Inc., two goals was introduced in this study however there are priorities that
needed to be considered in order to achieve those two goals.

RESULT:

Objective Function

Goal Programming was used to achieve two goals with different priorities. The two
goals that ALPI sought to achieve were:

1) maximize the numbers of deliveries from ALPI to other destinations

2) maximize the number of hours a worker performs all the set activities daytime
that can supply a continuous production of gasses that their main consumer
(Texas Instruments Philippines Inc.,) is requiring to have.

Maximizing the number of deliveries from ALPI to other destination requires scheduling
of gasses transferred to cylinders, and to have an inventory of their products. The mode
of transportation in the case of ALPI is through track, biggest track in which it can
accommodate a capacity of 8 by 16 cylinders while having a transportation cost of 18,
000.
Here is the list of gasses that must be delivered to Air Liquide Main Plant, Pasig City
107 km:

Gases Quantity Cost of Delivery

Nitrogen 32 sm3 4900
Hydrogen 32 sm3 4100
Oxygen 35 sm3 4450
Argon 29 sm3 4550

Maximizing the number of hours a worker performs all the activities at daytime depends
on the 24/7 production requirement of Texas Instruments. In order to do so, ALPI must
manage the time the workers perform all set of activities daytime to reduce accidents
and to produce different types of gasses.

Here are the set of gasses through which it is recommended to perform at daytime:

Gasses Cost Absorption Compressio Distillation Liquefaction Manpower

n (3 /12hrs)

Nitrogen 2490 9hrs 3hrs 12

Hydrogen 2075 3hrs 9hrs 12

Oxygen 2312 6hrs 6hrs 12

Argon 2479 5hrs 7hrs 12

Decision Variables:

W – Nitrogen

X – Hydrogen

Y – Oxygen

Z – Argon
Objective Function:

2490W + 2075X + 2312Y +2479Z

4900W + 4100X + 4450Y + 4550Z

subject to:

3w + 9x <= 12 (distillation process)

9w + 3x <= 12 (liquefaction process)

6y + 6z <= 12 (absorption)

5y + 7z <= 12 (compression)

32w + 32x + 35y + 29z <= 128 (quantity)

Using Winqsb

Inputs:
First Iteration

2nd Iteration

3rd Iteration

4th Iteration
5th Iteration

Solution Summary

Constraints Summary
Combine Solution:

Discussion: