An Advertisement Example

• 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.
 NONPREEMPTIVE GOAL PROGRAMMING
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.
NONPREEMPTIVE GOAL PROGRAMMING
Conceptual Products
NONPREEMPTIVE GOAL PROGRAMMING
Conceptual Products
NONPREEMPTIVE GOAL PROGRAMMING
Conceptual Products
NONPREEMPTIVE GOAL PROGRAMMING
Conceptual Products