Goal Programming Simplex Exercises
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Powered by AIBy using a goal programming model, Apricot Computer can strategically optimize its purchasing decisions to align quality and budget goals while minimizing additional costs due to special orders. This model allows Apricot to anticipate and adjust for supplier reliability variations, effectively managing supply chain costs by prioritizing quality needs within a fixed budget. The optimized allocation across suppliers reduces reliance on costly special orders, aligning procurement decisions with quality and fiscal goals for improved overall operating efficiency .
If Highland Appliance aims for a profit of exactly R11,000, the goal programming model will introduce new equality constraints indicating a precise profit target, rather than inequality constraints used for ‘at least R11,000’. This modification changes the nature of deviation variables in the model since the model now needs to balance both underachievement and overachievement of the profit target symmetrically . The deviation penalties need redefining to reflect exact target conditions in the goal hierarchy.
PromotionsInc should create an advertising schedule that optimally combines rugby and soap opera ads, considering cost-effectiveness and demographic reach. Rugby ads reach more HIM and LIP audiences while soap operas more effectively target HIW. By balancing the higher reach and cost of rugby with the lower reach but also lower cost of soap operas, and integrating penalties due to each demographic shortfall into a comprehensive model, PromotionsInc can minimize penalties and meet combined demographic exposure goals effectively within the R600,000 budget constraint .
In Deancorp's goal programming model, achieving specific protein and fat content is handled by establishing constraints corresponding to each level of protein and fat percentage. The model must ensure that at least 15% of the sausage consists of protein and that no more than 8% consists of fat. These percentages translate into constraints involving decision variables for each type of meat and water used in the blend. Deviations from these constraints result in penalties, effectively enforcing the nutritional quality of the final product .
The company's goal programming model prioritizes avoiding demand shortfall penalties by ensuring production schedules meet all product demands (particularly a minimum of 10 units for product 2) while adhering to a 32-hour labour cap. The model identifies optimal production levels that do not exceed labor availability, or add costly overtime, using constraints that align available labor with required production hours. Penalties are specifically factored into decision variables addressing unmet production demands or overtime, prompting proportional adjustments to labor allocations to optimize outcomes .
The company should employ a goal programming approach to prioritize its goals: 1) maximize labour utilization, 2) meet production demand for product 1, 3) satisfy marketing demand for at least 10 units of product 2, and 4) avoid overtime. One efficient technique involves constructing a model that aligns production scheduling with labour hours while minimizing the penalties for deviations such as unmet demand or excessive overtime. The problem can be solved using the goal programming simplex algorithm, dynamically adjusting constraints and prioritizing underutilization removal by optimizing the use of available and excess labours subject to penalties .
PromotionsInc needs to consider three primary goals when formulating a goal programming model for FastCars: 1) ensuring ads reach at least 40 million high-income men (HIM), for which falling short incurs a penalty of R200,000 per million exposures; 2) reaching at least 60 million low-income people (LIP), with a penalty of R100,000 per million shortfall; and 3) reaching at least 35 million high-income women (HIW), with a penalty of R50,000 per million shortfall. Additionally, they must decide between rugby and soap opera ads, constrained by a maximum budget of R600,000 .
Apricot can minimize penalties by formulating a goal programming model that prioritizes obtaining the needed 5,000 excellent chips, 3,000 good chips, and 1,000 mediocre chips within its $28,000 budget. The penalties arise from special-order costs for unmet chip requirements ($10 per excellent, $6 per good, $4 per mediocre) and from exceeding the budget, penalized at $1 for each dollar over . The strategy should use an optimal combination of supplier choices and potentially factoring budget excess penalties against special order costs to minimize total penalties.
Touche Young must balance between maximizing monthly billing and adhering to hiring constraints (max 1 partner, 3 senior employees, 5 junior employees) while completing three jobs requiring specific hours from qualified personnel. Challenges include aligning the partnership and senior/junior staff assignments to each job based on their billing rates without exceeding allowed hires, effectively needing an optimal distribution of assigned tasks that achieve billing goals while respecting the skill and workforce limitations. Ultimately, this requires optimizing the matrix of billing rates versus personnel allowed per task within goal priorities .
The goal programming model for Faber College would assign teacher-student allocations across courses to meet an average teaching effectiveness goal of 6 for each course. This involves assigning each of the four teachers to the courses in a way that balances their effectiveness scores, ensuring no course exceeds the set deviation in teaching quality. The model would also consider capacity constraints (each teacher can manage up to 200 students per semester), aiming to minimize deviations below and above the teaching effectiveness threshold across all subjects .