CHAPTER FOUR:

GOAL PROGRAMMING
 GOAL PROGRAMMING(GP)
• Goal programming provides a way of striving toward several
objectives simultaneously.
• GP seeks a solution that minimizes the weighted sum of deviations
of these objective function from their respective goal.
Three types of goals:
1. A lower, one sided goal: sets a lower limit that we do not want to
fall under ( but exceeding the limit is fine).
2. An upper, one sided goal: sets an upper limit that we do not want
to exceed (but falling under the limit is fine).
3. A two-sided goal: sets a specific target that we do not want to
miss on either side (i.e, =).
 GOAL PROGRAMMING
• Most LP problems have hard constraints that can’t be
violated. The availability of labor hours, materials and
budgets for the project are limited.
• In some cases hard constraints are too restrictive,
– You have a maximum price in mind when buying a car (this is
your “goal” or target price).
– If you can’t buy the car for this price you will likely find a way to
spend more.
• We use soft constraints to represent such goals or
targets we’d like to achieve.
 A GOAL PROGRAMMING EXAMPLE:
• Davis wants to expand the convention center at his hotel. The
types of potential conference rooms:

  Size (sq ft.) Unit cost ($)

Small 400 18,000

Medium 750 33,000

Large 1,050 45,150

• Davis would like to add 5 small, 10 medium and 15 large

conference rooms, but the numbers are flexible.
• He prefers that the total expansions is 25,000 sq ft. His budget is
$1,000,000. If possible he doesn’t want to invest more than this
limit.
 Cont…
• He wants to know how many different types of rooms
should be built.
• Solution: use small room as an example
• x1= actual number of small rooms to add.
• We have already known the targeted value for x1 is 5, but
the final value for x1 is not decided yet. To integrate the
uncertainties, we have
x1 + d1 - - d1+ = 5
• 1 Under developed number of small rooms.
‘d -‘

• ‘d1+ ’ Over developed number of small rooms.

 Defining the goal constraint-I
• Small rooms:
x1 + d1 - - d1+ = 5
• Medium rooms:
x2 + d2 - - d2+ = 10
• Large rooms:
x3 + d3- - d3+ = 15
• Where
di-, di+ ≥ 0
 Defining the goal constraint-II
• Total expansion
400x1 + 750x2 + 1,050x3 + d4- - d4+ = 25,000
• Total cost (in $1,000s)
18x1 + 33x2 + 45.15x3 + d5- - d5+ =1,000,000
• Where
di-, di+ ≥ 0
 GP Objective Functions
• There are numerous objective functions we could
formulate for a GP problems.

• Minimize the sum of the deviations:

MIN)
 GP Objective Functions (cont’d)
• Minimize the sum of percentage deviations
MIN

• Where ti represents the target value of goal i.

• Suppose the first goal is underachieved by 1 small room
and the fifth goal is overachieved by $20,000.
• We underachieve goal 1 by 1/5 = 20%
• We overachieve goal five by 20,000/1,000,000=2%
• This implies being $20,000 over budget is just as
undesirable as having one too few small rooms.
 Cont…
• The final result is calculated by using Microsoft excel
and he should built 5 small and 20 large rooms at
23,000 square feet by $993,000.
• As the result show Davis saves 2000 square feet and
$7000. So all soft constraints are satisfied since, the
space and budget constraints are satisfied.
 Exercise#1
• The DEWRIGHT COMPANY is considered three new products to
replace current models that are being discontinued, so their OR
department has been assigned the task of determining which mix
of these products should be produced. Management wants primary
consideration given to three factors: long run profit, stability in the
workforce, and the level of capital investment that would required
now for new equipment. In particular, management has established
the goals of:
1. Achieving a long-run profit (net present value) of at least $125
million from these products,
2. Maintaining the current employment level of 4,000 employees and
3. Holding the capital investment to less than $55 million.
However, management realizes that it probably will not be possible to
attain all these goals simultaneously, so it has discussed priorities with
the OR department.
 Exercise#1 (Cont’d)
This discussion has led to setting penalty weights of 5 for
missing the profit goal, (per $1 million under), 2 for going
over the employment goal (per 100 employees), 4 for going
under this same goal, and 3 for exceeding the capital
investment (per $1 million over). Each new product’s
contribution to profit, employment level, and capital
investment level is proportional to the rate of production.
The long-run profit contributions per unit rate of product 1,
2, and 3 is 12, 9, and 15 respectively. The employment level
contribution for product 1,2,and 3 is 5,3, and 4 respectively.
Similarly, capital investment for product 1, 2 ,and 3 is5,7,
and 8 respectively. Solve the optimal solution of this
problem based on the given information above.
 Exercise#2
• The project manager is trying to determine the
quantity of three types of products to produce. All
information are given the table below.

• Formulate goal programing

• Determine the optimal solution