GOAL

PROGRAMMING

INTRODUCTION
Goal programming may be used to solve linear programs
with multiple objectives, with each objective viewed as a
"goal".

In goal programming, di+ and di- , deviation variables, are

the amounts a targeted goal i is overachieved or
underachieved, respectively.

The goals themselves are added to the constraint set with

di+ and di- acting as the surplus and slack variables.

 For each priority level, the objective

function is to minimize the (weighted)
sum of the goal deviations.

One approach to goal programming is to

satisfy goals in a priority sequence.
Second-priority goals are pursued without
reducing the first-priority goals, etc

APPLICATION AREAS FOR GOAL

PROGRAMMING

Accounting
Agriculture
Economics
Engineering
Finance
Government
International Context
Management
Marketing

GOAL PROGRAMMING
APPROACH
Step 1: Decide the priority level of each goal.
Step 2: Decide the weight on each goal.
If a priority level has more than one goal,
for each goal i decide the weight, wi , to be
placed on the deviation(s), di+ and/or di-, from
the goal.
Step 3: Set up the initial linear program.
Min w1d1+ + w2d2s.t.

Functional Constraints,
and Goal Constraints
Step 4: Solve this linear program.
If there is a lower priority level, go to step

 Step 5: Set up the new linear program.

Consider the next-lower priority level goals
and formulate a new objective function based
on these goals. Add a constraint requiring
the achievement of the next-higher priority
level goals to be maintained. The new linear
program might be:
Min w3d3+ + w4d4s.t.
Functional Constraints,
Goal Constraints, and
w1d1+ + w2d2- = k
Go to step 4. (Repeat steps 4 and 5 until all
priority levels have been examined.)

EXAMPLE 1

Goal Programming Model

Formulation
Beaver Creek Pottery Company Example:
Minimize Z = $40x1 + 50x2
subject to:
1x1 + 2x2 40 hours of labor
4x2 + 3x2 120 pounds of clay
x1 , x 2 0
where: x1 = number of bowls produced
x2 = number of mugs produced

Adding objectives (goals) in order of

importance, the company:
Does not want to use fewer than 40 hours
of labor per
day.
Would like to achieve a satisfactory profit
level of $1,600 per day.
Prefers not to keep more than 120 pounds
of clay
on hand each day.
Would like to minimize the amount of
overtime.

Goal Constraint Requirements

All goal constraints are equalities that include

deviational variables d- and d+.
A positive deviational variable (d +) is the
amount by which a goal level is exceeded.
A negative deviation variable (d-) is the amount
by which a goal level is underachieved.
At least one or both deviational variables in a
goal constraint must equal zero.
The objective function in a goal programming
model seeks to minimize the deviation from
goals in the order of the goal priorities.

Goal Constraints and Objective

Function
Labor goals constraint (1, less than 40 hours
labor; 4, minimum overtime):
Minimize P1d1-, P4d1+
Add profit goal constraint (2, achieve profit of
$1,600):
Minimize P1d1-, P2d2-, P4d1+
Add material goal constraint (3, avoid keeping
more than 120 pounds of clay on hand):
Minimize P1d1-, P2d2-, P3d3+, P4d1+

Complete Goal Programming

Model:
Minimize P1d1-, P2d2-, P3d3+, P4d1+
subject to:
x1 + 2x2 + d1- - d1+ = 40
40x1 + 50 x2 + d2 - - d2 + = 1,600
4x1 + 3x2 + d3 - - d3 + = 120
x1, x2, d1 -, d1 +, d2 -, d2 +, d3 -, d3 + 0

Graphical Interpretation
Minimize P1d1-, P2d2-, P3d3+, P4d1+
subject to:
x1 + 2x2 + d1- - d1+ = 40
40x1 + 50 x2 + d2 - - d2 + = 1,600
4x1 + 3x2 + d3 - - d3 + = 120
x 1, x2 , d 1 -, d 1 + , d 2 -, d 2 + , d 3 -, d 3 + 0

Figure 1
Goal Constraints

Minimize P1d1-, P2d2-, P3d3+, P4d1+

subject to:
x1 + 2x2 + d1- - d1+ = 40
40x1 + 50 x2 + d2 - - d2 + = 1,600
4x1 + 3x2 + d3 - - d3 + = 120
x1, x2, d1 -, d1 +, d2 -, d2 +, d3 -, d3 + 0

Figure 2
The First-Priority
Goal: Minimize

Minimize P1d1-, P2d2-, P3d3+, P4d1+

subject to:
x1 + 2x2 + d1- - d1+ = 40
40x1 + 50 x2 + d2 - - d2 + = 1,600
4x1 + 3x2 + d3 - - d3 + = 120
x1, x2, d1 -, d1 +, d2 -, d2 +, d3 -, d3 + 0

Figure 3
The Second-Priority Goal:
Minimize

Minimize P1d1-, P2d2-, P3d3+, P4d1+

subject to:
x1 + 2x2 + d1- - d1+ = 40
40x1 + 50 x2 + d2 - - d2 + = 1,600
4x1 + 3x2 + d3 - - d3 + = 120
x1, x2, d1 -, d1 +, d2 -, d2 +, d3 -, d3 + 0

Figure 4
The Third-Priority Goal:
Minimize

Minimize P1d1-, P2d2-, P3d3+, P4d1+

subject to:
x1 + 2x2 + d1- - d1+ = 40
40x1 + 50 x2 + d2 - - d2 + = 1,600
4x1 + 3x2 + d3 - - d3 + = 120
x1, x2, d1 -, d1 +, d2 -, d2 +, d3 -, d3 + 0

Figure 5
The Fourth-Priority Goal:
Minimize

Goal programming solutions do not always achieve

all goals and they are not optimal, they achieve the
best or most satisfactory solution possible.
Minimize P1d1-, P2d2-, P3d3+, P4d1+
subject to:
x1 + 2x2 + d1- - d1+ = 40
40x1 + 50 x2 + d2 - - d2 + = 1,600
4x1 + 3x2 + d3 - - d3 + = 120
x1, x2, d1 -, d1 +, d2 -, d2 +, d3 -, d3 + 0
x1 = 15 bowls
x2 = 20 mugs
d1 + = 15 hours

Goal Programming
Computer Solution Using QM for
Windows
Minimize
Pd ,Pd ,Pd ,Pd
1

+
3

+
1

subject to:
x1 + 2x2 + d1- - d1+ = 40
40x1 + 50 x2 + d2 - - d2 + = 1,600
4x1 + 3x2 + d3 - - d3 + = 120
x1, x2, d1 -, d1 +, d2 -, d2 +, d3 -, d3 + 0

SUMMARY

FINAL TABLEAU

GRAPH

EXAMPLE 2

The production manager of a company wants to schedule a weeks

production run for two product P1 and P2, each of which requires the
labor and materials as shown below:
Product
P1

P2

Labour Hours

Material M1 (kg)

Material M2 (kg)

The weekly availability of resources is limited to 600 labor hours,

1000 kg of material M1 and 1200kg of M2 . The unit profit for P1
and P2 is Rs 20 and Rs 32, respectively.
Product P1 and P2 are, in fact, new models and are replacemets of
the older ones which have been discontinued very recently. The
manager would like to maximise profit but he is equally concerned
with maintaining workforce of the division at nearly constant level
in the interest of employee morale.

The workforce which consists of people engaged in

production, sales, distribution, peons and other general
staff, consisted of 108 persons in all. From a detailed
study, it is known that production of one unit of P 1
would maintain 0.3 person in the workforce, while one
unit of P2 would maintain 0.75 person.

Had

the

production

maximising

profit,

manager

without

been

regard

to

considering
maintaining

only
the

workforce, he would do so by producing 167.67 units of P1

and 66.67 units of P2 (this can be checked by solving the
problem as an LPP). On the basis of the available capacity,
this would yield a profit equal to 167.67*20 + 66.67*32 or
Rs 5486.67.

However, this would maintain 100.3 people in the

workforce. The manager feels that probably he could
increase the workforce requirement to desired level by
accepting somewhat lower profit. In keeping with this,
the following two goals are established: a profit of Rs
5400 per work and a workforce of 108 persons.
Formulate and solve this as a goal programming
problem.

Let X1 and X2 represent the number of units of P1 and P2, respectively,

to be produced every week, the goals and constraints of the problem
can be stated as follows:

5400

Goal 1

108

Goal 2

600

Labour

1000 Material M1
1200 Material M2
This problem may not have a feasible solution which satisfies both the
goals. Futher, to be able to solve this problem using simplex method,
we need to introduce deviational variables in each of the constraints

Let

= number of rupees below the profit goal of Rs

5400
1

= number of rupees above the profit goal of Rs 5400

2

= number of people below the workforce goal of

108
2

= number of people above the workforce goal of 108

Now, considering the nature of goals, it may be presumed

that overachievement of either of them would attract no
penalty and we may seek a solution which would minimise
the underachievement of both of them. According, the

Minimise

Z=

Subject to 5400
108
600
1000
1200
,,
SOL
1

20

32

-1

5400

3/10

3/4

-1

108

600

1000

1200

Cj

Cj - Z j

203/1

131/

SOL
1

36/5

-1

128/
3

128/
3

792

2/5

4/3

-4/3

144

2/5

-16/3

16/3

24

-20/3

20/3

280

17/5

-16/3

16/3

624

Cj

Cj - Z j
1

-36/5
4

0
0

0
1

1
-1

0
0

0
0

1/2

131/
0
03
0 128/ -8
3
0
0
1/4

150

3/40

-1

3/16

9/2

3/2

-5/4

250

-1

600

Cj

SOL
600

SOL
1

-1

160/
3

160/
3

-18

360

20/3

-20/3

-1

120

-40/3

40/3

5/2

60

20

-20

-5

160

40

-40

17/2

420

Cj

SOL

Cj - Z1
j

00

0
0 0 3/160

27/4

-1/8

1/8

5/4

75

-1/4

-2

150

-3/8

3/8

7/4

25

-3/4

3/4

150

Cj

1-1
3/16 157/
3
0

160/
18
-1
3 27/80

27/4 = 6.75

therefore the objective function value equal to 6.75

Goal Programming
Computer Solution Using QM for
Windows

SUMMARY

FINAL TABLEAU

Thank you