Title: Setting Priorities in Air Liquide Philippines Inc., using Goal Programming By : Yves A.

Coloma

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 Nitrogen Hydrogen Oxygen Argon Quantity 32 sm3 32 sm3 35 sm3 29 sm3 Cost of Delivery 4900 4100 4450 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 Absorpti on Compressi Distillatio Liquefacti on n on 9hrs 3hrs 6hrs 5hrs 6hrs 7hrs 3hrs 9hrs Manpowe r (3 / 12hrs) 12 12 12 12

Nitrogen Hydroge n Oxygen Argon

2490 2075 2312 2479

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: Air Liquide Philippines Inc., has two goals through which they have a main purpose of maximizing the total profit and the number of production through which ALPI considers certain factors that affect the production of gasses, like the availability of manpower, machines operations and the required hours a process is done. Goal 1: Having a total profit of Php. 9,356.00/cylinder of each gasses during daytime with four manpower operating 12hours. Goal 2: Cost of deliveries resulting to 18,000, meeting the demand of the customer while having continuous production.