Goal Programming Concepts and Formulation

Departemen Teknologi Industri Pertanian
Fakultas Teknologi Pertanian
Goal Programming :
Conceptual, Formulation and
Cases
Prof Dr-Eng. Taufik Djatna 2021

Tujuan Pembelajaran (CPMK) diharapkan mahasiswa
mampu:
1. Memahami model goal programming melalui formulasi
2. Memodelkan goal linear programming melalui formulasi
matematis
3. Memahami pemecahan goal programming melalui Weights
Method
4. Memahami pemecahan goal programming melalui
Preemptive Method
tin Departemen Teknologi Industri Pertanian

OUTLINE
• Pre define GP
• Types
• Components
• Solution Steps and Examples
• Graphics Approach
• Complex GP Formulation
• Cases and Assignments
• Spreadsheet skill and exercises

Model Multi Criteria Decision Making (MCDM)
MCDM adalah subfield Operations Research dengan focus pada kemampuan penyelesaian masalah
pengambilan keputusan dalam lingkungan kompleks

What is Goal Programming?
• Mathematical model similar to Linear Programming,
however it allows for multiple goals to be satisfied at
the same time.
• Allows for the multiple goals to be prioritized and
weighted to account for the DM’s utility for meeting
the various goals.

Goal Programming vs Linear Programming
• Multiple goals (instead of Single goal)

• Deviational variables minimized (instead of
maximizing profit or minimizing cost of LP)
• “Satisficing” (instead of optimizing)
• Deviational variables are real (and replace slack
variables)

Assumptions
• Similar to LP:
• Non-negative variables
• Conditions of certainty
• Variables are independent
• Limited resources
• Deterministic

Goal Programming
d+
Kendala:
Kendala Tujuan &
Kendala Sumberdaya
d-
Four Goal type :
1. To find Goals with certain value
2. Goals with underachieved value
3. Goals with overachieved value
4. Goals with interval values
Goal Programming
Goal Programming Type:
1. Goals with equal priority
2. Goals with a sequence of priorities (Pre-emptive GP)
3. Goals with different weights (Weighted GP)

Goal Programming
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.
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.

Goal Programming Formulation
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.
Step 3: Set up the initial linear program.
Min w1d1+ + w2d2-
s.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.

Goal Programming Formulation
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 next-higher priority level goals to be maintained.
The new linear program might be:
Min w3d3+ + w4d4-

s.t. Functional Constraints,
Goal Constraints, and
w1d1+ + w2d2- = k
Go to step 4. (Repeat steps 4 and 5 until all priority levels have been
examined.)
GP Example: Conceptual Products
Conceptual Products produces CP400 and CP500 computers that use

memory modules, external hard drives, and cases. The CP400 model uses
two memory modules and no external hard drive, whereas the CP500 uses
one memory module and one external hard drive. Both models use one
case.
Suppliers can provide Conceptual Products with
1000 memory modules, 500 external hard drives, and
600 cases on a weekly basis. It takes one hour to
manufacture a CP400 and its profit is $200 and it takes
one and one-half hours to manufacture a CP500 and
its profit is $500.

GP Example: Conceptual Products
The company has four goals:
Priority 1: Meet a state contract of 200 CP400 machines

weekly. (Goal 1)
Priority 2: Make at least 500 total computers weekly.
(Goal 2)
Priority 3: Make at least $250,000 weekly. (Goal 3)
Priority 4: Use no more than 400 man-hours per week.
(Goal 4)

GP Example: Formulation
Variables
x1 = number of CP400 computers produced weekly
di- = amount the right hand side of goal i is deficient
di+ = amount the right hand side of goal i is exceeded
Functional Constraints
Availability of memory modules: 2x1 + x2 < 1000
Availability of external hard drives: x2 < 500
Availability of cases: x1 + x2 < 600

Goals
(1) 200 CP400 computers weekly:
x1 + d1- - d1+ = 200
(2) 500 total computers weekly:
x1 + x2 + d2- - d2+ = 500
(3) $250(in thousands) profit:
.2x1 + .5x2 + d3- - d3+ = 250
(4) 400 total man-hours weekly:
x1 + 1.5x2 + d4- - d4+ = 400
Non-negativity:
x1, x2, di-, di+ > 0 for all i

Objective Functions
Priority 1: Minimize the amount the state contract is not met: Min
d1-
Priority 2: Minimize the number under 500 computers produced
weekly: Min d2-
Priority 3: Minimize the amount under $250,000 earned weekly:
Min d3-
Priority 4: Minimize the man-hours over 400 used weekly: Min d4+

Formulation Summary
Min P1(d1-) + P2(d2-) + P3(d3-) + P4(d4+)
s.t. 2x1 +x2 < 1000

+x2 < 500
x1 +x2 < 600
x1 +d1- -d1+ = 200
x1 +x2 +d2- -d2+ = 500
.2x1+ .5x2 +d3- -d3+ = 250
x1+1.5x2 +d4- -d4+ = 400
x1, x2, d1-, d1+, d2-, d2+, d3-, d3+, d4-, d4+ > 0

GP Example: Graphical Solution
Iteration 1
To solve graphically, first graph the functional constraints. Then
graph the first goal: x1 = 200. Note on the next slide that there is a
set of points that exceed x1 = 200 (where d1- = 0).

Functional Constraints and Goal 1 Graphed

x2
1000
2x1 + x2 < 1000
800 Goal 1: x1 > 200

x2 < 500
600
x1 + x2 < 600
400
Points
200 Satisfying
Goal 1
x1
200 400 600 800 1000 1200

Iteration 2
Now add Goal 1 as x1 > 200 and graph Goal 2:
x1 + x2 = 500. Note on the next slide that there is
still a set of points satisfying the first goal that also
satisfies this second goal (where d2- = 0).

Goal 1 (Constraint) and Goal 2 Graphed

x2
1000
2x1 + x2 < 1000
800
Goal 1: x1 > 200
x2 < 500
600
x1 + x2 < 600
400
Points Satisfying
200 Both Goals 1 and 2
Goal 2: x1 + x2 > 500
x1
200 400 600 800 1000 1200

Iteration 3
Now add Goal 2 as x1 + x2 > 500 and Goal 3:
.2x1 + .5x2 = 250. Note on the next slide that no points
satisfy the previous functional constraints and goals
and satisfy this constraint.
Thus, to Min d3-, this minimum value is achieved when
we Max .2x1 + .5x2. Note that this occurs at x1 = 200
and x2 = 400, so that .2x1 + .5x2 = 240 or d3- = 10.

Goal 2 (Constraint) and Goal 3 Graphed

x2
2x1 + x2 < 1000
1000
Goal 1: x1 > 200
800
x1 + x2 < 600 x2 < 500
600
(200,400)
400 Points Satisfying
Both Goals 1 and 2
200 Goal 2: x1 + x2 > 500
Goal 3: .2x1 + .5x2 = 250

x1
200 400 600 800 1000 1200

Goal Programming: More Complex Problems
Now we will formulate and solve a GP problem that involves multiple goals within
the same priority level.
No tradeoffs occur in the achievement of goals with different priorities. However,
tradeoffs can occur in the achievement of goals with the same priority and different
weights.
A GP problem with p preemptive goal priorities can be solved as a series of p linear
programming problems.
Solving a GP problem as a series of LPs, the objective functions (always to be
minimized) will include only relevant deviation variables and not decision variables.

GP Example 2: Conceptual Products
Conceptual Products is a computer company that

produces the CP400, CP500, and CP600 computers.
Many of the components used in the three computer
models are produced in abundant supply by the
company. However, the memory modules, external
hard drives, and cases are bought from suppliers.
The CP400 model uses two memory modules and
no external hard drive, the CP500 uses one memory
module and one external hard drive, and the CP600
uses two memory modules and one external hard
drive . All three models use the same case.

Suppliers can provide Conceptual Products with 1000

memory modules, 500 external hard drives, and 600 cases on a
weekly basis. It takes one hour to
manufacture a CP400 and its profit is $200; it takes one and
one-half hours to manufacture a CP500 and its profit is $500; and
it takes two hours to manufacture
a CP600 and its profit is $900.

The company has four goals:

Priority 1: Meet a state contract of 200 CP400 machines weekly. (Goal 1)
Priority 2: Make at least 500 total computers weekly. (Goal 2)
Priority 3: Make at least $250,000 profit
weekly. (Goal 3)
Priority 3: Use no more than 400 man-hours
per week. (Goal 4)
Each $1000 underachieved from its profit goal is five times as important as an
extra man-hour.

GP Example 2: Formulation
Variables
d i- = amount the right hand side of goal i is deficient
di+ = amount the right hand side of goal i is exceeded
Functional Constraints
Availability of memory modules: 2x1 + x2 + x3 < 1000
Availability of external hard drives: x2 + x3 < 500
Availability of cases: x1 + x2 + x3 < 600

GP Example 2: Formulation
Goals
(1) 200 CP400 computers weekly:
x1 + d1- - d1+ = 200
(2) 500 total computers weekly:
x1 + x2 + x3 + d2- - d2+ = 500
(3) $250(in thousands) profit:
.2x1 + .5x2 + .9x3 + d3- - d3+ = 250
(4) 400 total man-hours weekly:
x1 + 1.5x2 + 2x3 + d4- - d4+ = 400
Non-negativity:
x1, x2, x3, di-, di+ > 0 for all i

Objective Functions
Priority 1: Minimize the number of CP400 under
200 units: Min d1-
Priority 2: Minimize the number under 500
computers produced weekly: Min d2-
Priority 3: Minimize the amount under $250,000
earned weekly: Min 5d3-
Priority 3: Minimize the man-hours over 400 used
weekly: Min d4+

Priority 1 Formulation
Min d1-
s.t. 2x1 +x2 +x3 < 1000
+x2 +x3 < 500
x1 +x2 +x3 < 600
x1 +d1- -d1+ = 200
x1 +x2 +x3 +d2- -d2+ = 500
.2x1+ .5x2 +.9x3 +d3- -d3+ = 250
x1+1.5x2 +2x3 +d4- -d4+ = 400
x1, x2, x3, d1-, d1+, d2-, d2+, d3-, d3+, d4-, d4+ > 0

Computer Solution (First LP)

Objective Function Value = 0.000
Variable Value Reduced Cost
x1 200.000 0.000
x2 0.000 0.000
x3 233.333 0.000
d1- 0.000 1.000
d1+ 0.000 0.000
d2- 66.667 0.000
d2+ 0.000 0.000
d3- 0.000 0.000
d3+ 0.000 0.000
d4 - 0.000 0.000
d4 + 266.667 0.000

Min d2-
( include the previous 7 constraints,
i.e. 3 functional constraints and 4 goal constraints )
( add the constraint: d1- = 0 )

Computer Solution (Second LP)

x1 285.714 0.000
x2 0.000 0.000
x3 214.286 0.000
d1- 0.000 0.000
d1+ 85.714 0.000
d2- 0.000 1.000
d2+ 0.000 0.000
d3- 0.000 0.000
d3+ 0.000 0.000
d4- 0.000 0.000
d4+ 314.286 0.000

Min 5d3- + d4+
( include the previous 8 constraints
i.e. 3 functional constraints and 4 goal constraints
and d1- = 0 )
( add the constraint: d2- = 0 )

Computer Solution (Third LP)

x1 285.714 0.000
x2 0.000 0.071
x3 214.286 0.000
d1- 0.000 0.000
d1+ 85.714 0.000
d2- 0.000 0.000
d2+ 0.000 0.714
d3- 0.000 3.571
d3+ 0.000 1.429
d4- 0.000 1.000
d4+ 314.286 0.000

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.

LP Model:
3000X1 + 800X2 + 250X3 £ 25,000

1000X1 + 500X2 + 200X3 ³ 30,000
X1 ³ 10

• 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

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

goals, represented by the detrimental variables
E1 U2 U3
£ 25,000 ³ 30,000 ³ 10

• The penalties are estimated to be as follows:
• Each extra dollar spent on advertisement above $25,000

cost the company $1.
• There is a loss of $5 to the company for each customer not

being reached, below the goal of 30,000.
• Each television spot below 10 is worth 100 times each
dollar over budget.

An Advertisement Example –
The goal programming model
• It is assumed that no advantage is gained by overachieving a

goal.
Minimize 1E1 + 5U2 + 100U3

s.t.
3000X1 + 800X2 + 250X3 + U1 – E1 = 25,000
1000X1 + 500X2 + 200X3 + U2 – E2 = 30,000
X1 + U3 – E3 = 10
All variables are non-negative.

Conceptual Products
Conceptual Products is a computer company that produces the

CP400 and the CP500 computers. The computers use different
mother boards produced in abundant supply by the company, but use
the same cases and disk drives. The CP400 models use two floppy
disk drives and no zip disk drives whereas the CP500 models use one
floppy disk drive and one zip disk drive. The disk drives and cases are
bought from vendors. There are 1000 floppy disk drives, 500 zip disk
drives, and 600 cases available to Conceptual Products on a weekly
basis. It takes one hour to manufacture a CP400 and its profit is $200
and it takes one and one-half hours to manufacture a CP500 and its
profit is $500.

Goals:
• Goal 1: Produce at least 200 CP400 computers
each week.
• Goal 2: Produce at least 500 total computers
each week.
• Goal 3: Reach at least $250 (in thousands) on
profit.
• Goal 4: Consume no more than 400 total man-
hours each week.

Conceptual Products

Conceptual Products

Conceptual Products

Conceptual Products

PREEMPTIVE GOAL PROGRAMMING









Modeling A Goal Programming Problem in
Spreadsheet using Excel

Goal Programming
Model Goal programming merupakan perluasan dari model
pemrograman linear, sehingga seluruh asumsi, notasi,
formulasi model matematis, prosedur perumusan model dan
penyelesaiannya tidak berbeda.
Perbedaan hanya terletak pada kehadiran sepasang variabel

deviasional yang akan muncul di fungsi tujuan dan fungsi-
fungsi kendala.

What is Goal Programming?
Goal Programming is generally regarded as an adaptation of linear programming
and is sometimes referred to as multi-objective linear programming.
The example problem.. The company wants:

The example problem was taken from a goal programming 1. To avoid the loss of staff –
problem discussed in “Introduction to Management Science” does not want less than
40hrs labour / day.
by Bernard W. Taylor (a great resource for further reading on
2. To minimise employee
Goal Programming): overtime.
A pottery company makes ceramic bowls and mugs. 3. To make at least £1,600
The company makes £40 profit per bowl and £50 profit per mug. profit per day.
It takes the employees 1hr to make a bowl and 2hrs to make a 4. To only use the 120kg of
mug and there are 40hrs labour available per day. clay per day.
To make a bowl requires 4kg of clay while a mug requires 3kg.
Only 120kg of clay can be delivered to the company each
morning.

Formulation
You will notice there are two extra columns called LHS (Left Hand Side) and RHS (Right Hand Side). These will be used
to optimise each goal. As all of the variables need to be ≥ 0, create a new row called lower limit which we can use to set
the lower bounds for each variable:

Formulation
I have coloured these cells so they are easy to identify and visualise.
Now we can set the formulas for the LHS column. In cell K3 insert the following formula:
In Excel the SUMPRODUCT formula multiplies corresponding components in the given sets

of values and returns the sum of those products. In this case the sets of values are the
decision variables and the labour goal row. As the decision variables row was set as a
constant, you can select the bottom right of cell K3 and drag it down by two cells, adding
formulas into cells K4 & K5
This is the sum of all of the decision

variables. The spreadsheet will now
look like:
The final cell to add to the table is a cell for the

objective function. In cell M10 insert the following
formula

Now it is time to use solver to optimise the goal programming problem. Open
solver from the data tab. If the Solver button isn’t there, click File then Options –
click the Add-Ins tab on the left – click the Go button at the bottom and finally tick
the Solver Add-In.
Set the objective function to minimise cell M10 and the

changing variable cells to C9:J9.
Then we need to set two constraints, one for the lower
limits and the other for the LHS equalling the RHS:
Finally, select the
solving method as
Simplex LP and you
are ready to click the
Solve button:

The solver should come to a
solution quickly and provide you
with the following information
from this you can see 15 mugs (x1) and 20 bowls (x2) provides
only one deviation of 15 hours in d1+

Goal Programming
d+
Kendala:
Kendala Tujuan & Penetapan Bobot ( w) :
Kendala Sumberdaya 1. Prespecified weights (cardinal)
2. Preemptive priorities (ordinal)
d-
Desain rantai pasok alokasi anggaran sourcing---- dengan

prioritas 7 & 5

Hasil menggunakan paket LiPS1.11
Goal-1
Goal-1

WELL, SATISFY YOUR
GOALS


Goal Programming Concepts and Formulation

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Departemen Teknologi Industri Pertanian

Fakultas Teknologi Pertanian

Prof Dr-Eng. Taufik Djatna 2021

tin Departemen Teknologi Industri Pertanian

tin Departemen Teknologi Industri Pertanian

tin Departemen Teknologi Industri Pertanian

tin Departemen Teknologi Industri Pertanian

• Multiple goals (instead of Single goal)

tin Departemen Teknologi Industri Pertanian

tin Departemen Teknologi Industri Pertanian

tin Departemen Teknologi Industri Pertanian

For each priority level, the objective function is to minimize the

Previous "optimal" achievements of goals are added to the

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Step 2: Decide the weight on each goal.

Step 4: Solve the current linear program.

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Step 5: Set up the new linear program.

Min w3d3+ + w4d4-

Conceptual Products produces CP400 and CP500 computers that use

tin Departemen Teknologi Industri Pertanian

The company has four goals:

Priority 1: Meet a state contract of 200 CP400 machines

tin Departemen Teknologi Industri Pertanian

tin Departemen Teknologi Industri Pertanian

tin Departemen Teknologi Industri Pertanian

tin Departemen Teknologi Industri Pertanian

Min P1(d1-) + P2(d2-) + P3(d3-) + P4(d4+)

s.t. 2x1 +x2 < 1000

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Functional Constraints and Goal 1 Graphed

800 Goal 1: x1 > 200

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Goal 1 (Constraint) and Goal 2 Graphed

Goal 2: x1 + x2 > 500

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Goal 2 (Constraint) and Goal 3 Graphed

Goal 3: .2x1 + .5x2 = 250

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Conceptual Products is a computer company that

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Suppliers can provide Conceptual Products with 1000

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The company has four goals:

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tin Departemen Teknologi Industri Pertanian

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Computer Solution (First LP)

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Computer Solution (Second LP)

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( add the constraint: d2- = 0 )

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Computer Solution (Third LP)

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