Chapter 15

Goal Programming
What is Goal Programming?
 Mathematical model similar to Linear
Programming, however it allows for multiple
goals to be satisfied at the same time.
 Allows for the multiple goals to be prioritized
and weighted to account for the DM’s utility
for meeting the various goals.
Assumptions
 Similar to LP:
 Non-negative variables
 Conditions of certainty
 Variables are independent
 Limited resources
 Deterministic
Components
 Economic Constraints
 Physical
 Concerned with resources
 Cannot be violated
 Example: # of production hours each week
Components
 Goal Constraints
 Variable
 Concerned with target values
 Can be changed/modified
 Example: Desire to achieve a certain level of
profit
Components
 Objective Function
 Minimizes the sum of the weighted deviations
from the target values – this is ALWAYS the
objective for Goal Programming
 Not the same as LP (which was maximize
revenue/minimize costs)
Goal Programming Steps
 Define decision variables
 Define Deviational Variable for each goal
 Formulate Constraint Equations
 Economic constraints
 Goal constraints
 Formulate Objective Function
Goal Programming Terms
 Decision Variables are the same as those in
LP formulations (represent products, hours
worked)
 Deviational Variables represent overachieving
or underachieving the desired level of each
goal
 d+ Represents overachieving level of the goal
 d- Represents underachieving level of the goal
Goal Programming Constraints
 Economic Constraints
 Stated as <=, >=, or =
 Linear (stated in terms of decision variables)
 Example: 3x + 2y <= 50 hours
 Goal Constraints
 General form of goal constraint:

Decision Desired Goal

Variables - d+ + d - = Level
Goal Programming Example
 Microcom is a growth oriented firm which
establishes monthly performance goals for its
sales force
 Microcom determines that the sales force has
a maximum available hours per month for
visits of 640 hours
 Further, it is estimated that each visit to a
potential new client requires 3 hours and
each visit to a current client requires 2 hours
Goal Programming Example
 Microcom establishes two goals for the
coming month:
 Contact at least 200 current clients
 Contact at least 120 new clients
 Overachieving either goal will not be
penalized
Goal Programming Example
 Steps Required:
1. Define the decision variables
2. Define the goals and deviational variables
3. Formulate the GP Model’s Parameters:
 Economic Constraints
 Goal Constraints
 Objective Function
4. Solve the GP using the graphical approach
Goal Programming Example
 Step 1: Define the decision variables:
 X1 = the number of current clients visited
 X2 = the number of new clients visited

 Step 2: Define the goals:

 Goal 1 – Contact 200 current clients
 Goal 2 – Contact 120 new clients
Goal Programming Example
 Step 3: Define the deviational variables
 d1+ = the number of current clients visited in
excess of the goal of 200
 d1- = the number of current clients visited less
than the goal of 200
 d2+ = the number of new clients visited in excess
of the goal of 120
 d2- = the number of new clients visited less than
the goal of 120
Goal Programming Example
 Formulate the GP Model:
 Economic Constraints:
 2X1 + 3X2 <= 640 (note: can be <, =, >)
 X1, X2 => 0
 d1+, d1-, d2+, d2- => 0
 Goal Constraints:
 Current Clients: X1 + d1- - d1+ = 200
Must be =
 New Clients: X2 + d2- - d2+ = 120
Goal Programming Example
 WebNet establishes two goals for the coming
month:
 Contact at least 200 current clients
 Contact at least 120 new clients
 Overachieving either goal will not be
penalized
Goal Programming Example
 Objective Function:
 Minimize Weighted Deviations
 Minimize Z = d1- + d2-
Goal Programming Example
 Complete formulation:
 Minimize Z = d1- + d2-
 Subject to:
 2X1 + 3X2 <= 640

 X1 + d1- - d1+ = 200

 X2 + d2- - d2+ = 120

 X1, X2 => 0

 d1+, d1-, d2+, d2- => 0

Goal Programming Example
 Graph constraint:
 2X1 + 3X2 = 640
 If X1 = 0, X2 = 213
 If X2 = 0, X1 = 320
 Plot points (0, 213) and (320, 0)
Graphical Solution
X2
(0,213)
200
2X
150 1 +3
X
2 =6
40
100

50
(320,0)
X1
0 50 100 150 200 250 300 350
Goal Programming Example
 Graph deviation lines
 X1 + d1- - d1+ = 200 (Goal 1)
 X2 + d2- - d2+ = 120 (Goal 2)
 Plot lines for X1 = 200, X2 = 120
Goal Programming Example
X2
Goal 1
(0,213) 2X
200 1 +3
X d1-
2 <= d1+
150 64
0 d22++
Goal 2
100 (140,120)
d22--
(200,80)
50
(320,0)
X1
0 50 100 150 200 250 300 350
Solving Graphical Goal
Programming
 Want to Minimize d1- + d2-
 So we evaluate each of the candidate Optimal Point
solution points:

For point (140, 120) For point (200, 80)

d1- = 60 and d2- = 0 d1- = 0 and d2- = 40
Z = 60 + 0 = 60 Z = 0 + 40 = 40

Contact at least 200 current

clients
Contact at least 120 new
Goal Programming Solution
 X1 = 200 Goal 1 achieved
 X2 = 80 Goal 2 not achieved
 d1+ = 0 d2+ = 0
 d1- = 0 d2- = 40

 Z = 40
For Next Class
 Complete reading Goal Programming pages
(thru 727&
 Do Goal Programming HWs