TI184416

GOAL PROGRAMING

Stefanus Eko Wiratno

Jurusan Teknik Industri – FTI

Institut Teknologi Sepuluh Nopember

Teknik Industri – ITS

 Pendahuluan
 In many situations, a company wants to achieve several
objectives. Given limited resources, it may prove impossible
to meet all objectives simultaneously.
 If the company can prioritize its objectives, then goal
programming can be used to make good decisions.

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 Formulasi Goal Programming (1)
 
Fairville is a small city with a population of about 20,000 residents. The annual
taxation base for real estate property is $550 million. The annual taxation bases
for food and drugs and for general sales are $35 million and $55 million,
respectively. Annual local gasoline consumption is estimated at 7.5 million
gallons. The city council wants to develop the tax rates based on four main goals:
1. Tax revenues must be at least $16 million to meet the city’s financial
commitments.
2. Food and drug taxes cannot exceed 10% of all taxes collected.
3. General sales taxes cannot exceed 20% of all taxes collected.
4. Gasoline tax cannot exceed 2 cents per gallon
Let the variables and represent the tax rates (expressed as proportions of
taxation bases) for property, food and drug, and general sales and define the
variable as the gasoline tax in cents per gallon. The goals of the city council are
then expressed as

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 Formulasi Goal Programming (2)

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 Formulasi Goal Programming (3)

 The
  nonnegative variables and , i = 1, 2, 3, 4, are deviational variables
representing the deviations below and above the right-hand side of
constraint i.
 The deviational variables and are by definition dependent, and hence
cannot be basic variables simultaneously (per the theory of the simplex
method).
 Logically, a good compromise solution seeks to minimize the amount by
which each goal is violated.
 In the Fairville model, given that the first three constraints are of the
type Ú and the fourth constraint is of the type … , the deviational
variables , , , and represent the amounts by which the respective goals
are violated. Thus, the compromise solution seeks to satisfy the
following four objectives as much as possible:

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 Formulasi Goal Programming (4)
 Thus, the compromise solution seeks to satisfy the following four
objectives as much as possible:

 How can we optimize a multiobjective model with conflicting goals?

Two methods have been developed for this purpose: (1) the weights
method and (2) the preemptive method. Both methods are based
on converting the multiple objectives into a single function.

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 The Weights Method (1)

 Suppose
  that the GP model has n goals and that the i-th goal is
given as
Minimize

 The combined objective function used in the weights method is

then defined as
Minimize

 The parameters , , are positive weights that reflect the decision

maker’s preferences regarding the relative importance of each goal

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 The Weights Method (2)
TopAd, a new advertising agency with 10 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 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. How many minutes of radio and television advertisement
should TopAd use?
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 The Weights Method (3)
 Let
   and be the minutes allocated to radio and television advertisements.
The GP formulation for the problem is given as

𝑴𝒊𝒏 𝒛 =𝟐 𝑮 𝟏+𝑮 𝟐=𝟐 𝒔 −

𝟏 + 𝒔𝟐
+¿ ¿
 

Subject to

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 The Preemptive Method (1)

 In
  the preemptive method, the decision maker ranks the goals of the
problem in order of importance. Given an n-goal situation, the
objectives of the problem are written as

 The variable is the component of the deviational variables, or ,

representing goal i.
 The solution procedure starts with optimizing the highest priority,,
and terminates with optimizing the lowest, . The preemptive method
is designed such that a lower-priority solution never degrades a
higher-priority solution

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 The Preemptive Method (2)

 The
  literature on GP presents a “special” simplex method that guarantees the
nondegradation of higher-priority solutions. The method uses the column- dropping rule
that calls for eliminating a nonbasic variable with nonzero reduced cost from the
optimal tableau of goal prior to solving the problem of goal .
 The proposed column-dropping modification needlessly complicates GP. In this
presentation, we show that the same results can be achieved in a more straightforward
manner using the following steps:

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 The Preemptive Method (3)

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 The Preemptive Method (4)

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