4.

2 Goal Programming Formulation

Example 2:
TopAd, a new advertising agency with 12 employees, has received a contract to
promote a new product. The agency can advertise by radio and television. The
following table gives the number of people reached daily by each type of
advertisement and the cost and labor requirements.

The contract prohibits TopAd from using no more than 6 minutes of radio
advertisement. Additionally, radio and television advertisements need to reach
at least 45 million people. TopAd has a budget goal of $100,000 for the project.
TopAd’s management assume that the exposure goal has a higher priority. How
many minutes of radio and television advertisement should TopAd use? Note
that the company have two goals
Solution : The objection function formulation USING

Preemptive method Or Weights method

Prof. Wafik Hachicha OR2 - Chapter 4 - Slide 25

 4.2 Goal Programming Formulation
Example 2:

Solution : Let X1 and X2 be the minutes allocated to radio and television

advertisements
X1 X2
Target
45
100
12

1) Radio and television advertisements need to reach at least 45 million people.

Exposure goal: 4X1 + 8X2 + d1- - d1+ = 45 (million persons/min)

We want higher than 45
→ Unfavorable deviation is d1- → minimize G1 = d1-

Prof. Wafik Hachicha OR2 - Chapter 4 - Slide 26

 4.2 Goal Programming Formulation
Example 2:
X1 X2
Target
45
100
12

2) TopAd has a budget goal of $100,000 for the project

Cost goal: 8X1 + 24X2 + d2- - d2+ = 100 (thousands of dollars /min)
We want less than 100
→ Unfavorable deviation is d2+ → minimize G2 = d2+
3) No more than 6 minutes of radio advertisement.

X1 ≤ 6 min → System constraint: There is no goal about X1

4) Advertising agency had 10 employees
X1 + 2 X2 ≤ 12 → System constraint: There is no goal about the number or employees

Prof. Wafik Hachicha OR2 - Chapter 4 - Slide 27

 4.2 Goal Programming Formulation
Example 2: If TopAd’s management estimates that the
exposure goal is twice as important as the
Complete Goal Programming budget goal. Only the combined objective
Model: function change

Minimize P1d1-, P2d2+ Minimize 2d1-+ d2+

Subject to : Subject to :

4X1 + 8X2 + d1- - d1+ = 45 4X1 + 8X2 + d1- - d1+ = 45

8X1 + 24X2 + d2- - d2+ = 100 8X1 + 24X2 + d2- - d2+ = 100
X1 ≤ 6 (Radio limit) X1 ≤ 6 (Radio limit)
X1 + 2 X2 ≤ 12 (Personnel limit) X1 + 2 X2 ≤ 12 (Personnel limit)

X1, X2, d1-, d1+, d2-, d2+  0 X1, X2, d1-, d1+, d2-, d2+  0

Preemptive method Weights method

Prof. Wafik Hachicha OR2 - Chapter 4 - Slide 28
 4.2 Goal Programming Formulation
Example 2: Preemptive method
A1 = d1-
A2 = d1+
B1 = d2-
B2 = d2+

- Goal 1 is achieved (because O.Value= 0 OR A1 = 0)

- Go with B2 to test Goal 2 (known that Goal 1 is
achieved (we forced A1 = 0)

Prof. Wafik Hachicha OR2 - Chapter 4 - Slide 29

 4.2 Goal Programming Formulation
Example 2: Preemptive method

Goal 2 is not achieved because 11 not 0 (or B2 ≠ 0)

Now, How choose the values of X1 and X2 ????
Generally in the final solution (X1 = 6, and X2 = 2.625)
BUT
Prof. Wafik Hachicha OR2 - Chapter 4 - Slide 30
 4.2 Goal Programming Formulation
Example 2: Preemptive method

 In both first LP and the second LP

Goal 1 is achieved (at least 45) and Goal 2 is not achieved (less than $100,000 for
project Budget). The two solutions are satisfactory (possible)
 In the first LP, X1 = 0 and X2 = 6
We obtain (A1 = 0 and A2 = 3) that means radio and television advertisements
can reach 48 million people.
However, (B1 = 0, and B2 = 44) the total Budget is $144,000

 In the second LP, X1 = 6 and X2 = 2.625 with A1 = 0 and A2 = 0

That means radio and television advertisements can reach exactly 45 million
people. However, (B1 = 0, and B2 = 11) the total Budget is $111,000

 Generally, the second solution is the final obtained solution, But the decision
maker can apply the first solution (if he want to maximize the reached people
whatever the budget, i.e. adding $33,000 in the budget to reach 3 million
people)
Prof. Wafik Hachicha OR2 - Chapter 4 - Slide 31
 4.2 Goal Programming Formulation
Example 2: Weights method
The exposure goal is twice as
important as the budget goal.

O.Value ≠ 0, so at least one objective not

achieved

Goal 1 not achieved (A1 ≠ 0)

Goal 2 is achieved (B2 = 0)
Choose X1 = 6 and X2 = 2.166

Prof. Wafik Hachicha OR2 - Chapter 4 - Slide 32

 4.2 Goal Programming Formulation
Example 2: Weights method
The exposure goal is three time as
important as the budget goal.

Goal 1 achieved
Goal 2 is not achieved
Choose X1 = 6 and X2 = 2.625

Of course, the final solution can be change is we change the O.F. model
formulation (Preemptive or weights) and also can be change if we change
the preference of the decision maker (in the weights method)

Prof. Wafik Hachicha OR2 - Chapter 4 - Slide 33