Multi-objective Goal

Programming Methodology
Based on the article of “An IT/IS acquisition and justification model for
supply-chain management” by Srinivas Talluri

1
IT/ITES Investment Decisions regarding: - Long-range planning IT/ITES Investment Decision
- Involving supply-chain network Evaluation Criteria
design (e.g., plant location, size,
optimal number of suppliers, COST
distributors, etc.)
1. Purchasing or Implementing Software for
Supporting Strategic-level Planning Process of Supply
Chain Management FLEXIBILITY
- Mid-range planning
- Involving optimization of flow of
goods and services, which product QUALITY
should be produced in which
plants.
2. Purchasing or Implementing Software for
Supporting Tactical-level Planning Process of Supply TIME
Chain Management

- Short-range planning COMPATIBILITY

- Involving day-to-day or hour-to-
hour production scheduling
SELECTION
3. Purchasing or Implementing Software for
Supporting Operational-level Planning Process of
Supply Chain Management
2
 Proposed Scientific Tool by
IT/ITES Investment Decision the Author
Evaluation Criteria
Multi-objective Mathematical
COST Model (a.k.a., Goal
Programming)

FLEXIBILITY

Constraint Functions or Objective Function

QUALITY Equations

TIME Basically represents the Basically represents the cost

resource limitations (i.e.,
time, money, etc.) and fixed
COMPATIBILITY requirements (i.e., targeted
levels of software quality,
flexibility, compatibility, etc.)
SELECTION
elements (which will be
minimized) or profit/revenue
elements (which will be
maximized)

3
1. Constraint Equations (for Cost)

4
5
2. Constraint Equations (for Flexibility)

6
7
3. Constraint Equations (for Quality)

8
4. Constraint Equations (for Time)

9
5. Constraint Equations (for Compatibility)

10
6. Constraint Equations (for Selection)

11
Objective Function

12