Goal Programming Problems

Prototype example for objective programming.

A company is considering producing three new products and wishes to
determine what mixture of these products should be produced. Management wants to provide
primary attention to three factors:

Achieve a long-term profit of at least US$ 125 million.

for these three products.
Maintain the current employment level of 4,000 employees.
Keep the capital investment under US$ 55 million.

However, management realizes that it is possible that not all of them will be reached.
simultaneous goals, so it has analyzed the priorities. This analysis led to
establish penalty weights of 5 if the target is not met
earnings (for each million less achieved), a penalty of 2 for
exceeding the employment level target (for every 100 employees), a penalty
of 4 for finishing lower in this same goal and a penalty of 3 for exceeding the
capital investment target (for every million in excess). The contribution to the
profit from each new product, the level of employment, and capital investment is
proportional to the production rate. These contributions by unit rate of
production is shown in the following table along with the goals and the
penalties.

Unit contribution Weighting

Factor Product: Meta (Units) of
1 2 3 penalization
Long-term gain 12 9 15 >= 125 (million dollars) 5
Employment level 5 3 4 40 (hundreds of employees) 2( + ), 4( - )
Capital investment 5 7 8 <= 55 (million dollars) 3

QUESTION 1
Two products are manufactured in two sequential machines. The following table
provides the machine employment times in minutes per unit for the
two products:

Machine Product 1 Product 2

1 5 3
2 6 2

The daily production quota for the two products is 80 and 60 units,
respectively. Each machine works 8 hours a day. The overtime, still
when they are not desirable, they can be used, if necessary, to fulfill the
production quota. Formulate the problem as a programming model
goals.
QUESTION 2
The production of each gallon of premium gasoline costs 20% more than the
production of regular, and each gallon of extra costs 10% more than regular. The
production department manager has determined that the minimum costs of
production to meet the demand for the three types of gasoline for this
The period is US$ 50,000, with a cost of US$ 0.80 per gallon of regular.
In an attempt to maximize the amount of regular gasoline produced, it has been established
a goal of 40,000 gallons. The manager also thinks that for every dollar with which
the production costs exceed the established target by 10% above the
the minimum possible must be penalized 3 times, as well as each gallon that is missing from the
regular production to reach the goal. Using the number of gallons of each
type of gasoline to produce as a decision variable, write (a) constraints of
appropriate goals and (b) a single objective that minimizes the total penalty for not
meet the goals.

QUESTION 3:
A developing country has 15 million acres of agricultural land in active use,
controlled by the government. It plans a way to divide this land among three
basic crops next year. A certain percentage of each of these is exported.
crops to obtain foreign capital (dollars) that is very much needed and the rest is used
to feed the population. The cultivation of these crops also provides
employment for a significant proportion of the population. So the main
Factors that must be considered when assigning land are: 1) the amount of capital
generated foreigner, 2) the number of citizens fed, and 3) the number of
citizens employed in the harvesting crop. The following table shows the
contribution of every 1,000 acres of harvest to these factors and the column of the
right gives the goal set by the government PATRA for each factor.

Contribution for 1,000 acres

Harvest
Factor 1 2 3 Meta
Foreign capital $ $3,000 $5,000 $4,000 >= $70,000,000
Fed citizens 150 75 100 >= 1,750,000
Employed citizens 10 15 12 = 200,000

In evaluating the relative seriousness of not achieving these goals, the government has concluded that
the following deviations from the goals should also be considered
undesirables: 1) every $100 below the foreign capital target, 2) each person
below the citizens' feeding target and 3) each deviation of one (in
any direction) of the goal of employed citizens.
PROBLEM 4
A company manufactures three types of men's coats: sports (A), formal (B) and
executive (C). The company is a family-owned business and operated by it, but the
the majority of the company's employees are not family members. Due to the
competitive nature of the business and the high demand for labor in the industry, it is
It is of great importance to keep employees satisfied. Managers consider
that an important measure to meet the needs of its employees is to offer
full-time employment, even when this requires producing excessively and incurring some
losses. Fortunately, the managers hope that the demand for their products will continue
quite high. In fact, to meet part of the demand, it may be necessary
operar en tiempo extra. Las tres líneas de abrigo de la ABC, se fabrican en dos
departments. The table shows a weekly schedule of labor requirements.
and materials for the manufacturing process.

Production requirements (per unit)

Resources:
A B C Labor / Material
Sporting Formal Executive
Department 1 4 hours 12 hours 10 hours 8000 hours
Department 2 6 hours 6 hours 16 hours 4000 hours
Material 8 yards 6 yards 12 yards 8000 yards

The unit prices of the three lines are: $100, $150, and $250, respectively. The
administradores han determinado que a un nivel normal de producción los costos variables
They are $70, $80, and $100 per coat respectively. The costs of overtime are $2 per
hour above their normal wage for department 1 and $3 for department 2.
Extra materials can be purchased at a cost of $2 per yard above the cost.
normal. The company's managers have forecasted that market demand
for the sports coat it is 1000 units per week and the demand for the other lines
is 500 and 200 units respectively. The equilibrium production level is 100.
one unit of the sports product and 50 units of each of the other two products.
To help analyze the problem, they have identified the following in order of priority:
metas:

. Meta 1: Utilize all available production operations, that is, there should be no
dead time in no department.
. Meta 2: Reach the break-even production levels in each of the
production lines.
. Meta 3: Given that there may be a labor shortage in department 2,
and given that personnel can be sent, overtime to that department, the time
extra here may be greater than that of department 1. However, the extra time of the
Department 2 must be limited to 600 hours. The extra time from department 1 does not.
it must be more than 200 hours.
. Goal 4: Achieve a weekly profit target of $20,000.
. Goal 5: Meet all market demands. Within this goal, it should be
use different weights to reflect the normal unit contribution to the
utilities.

PROBLEM 5:
A foundry produces three types of pipes: A, which sells for $10 per foot; B, which
sells for $12 per foot, and C, which sells for $9 per foot. To manufacture one foot of tube A
0.5 minutes of machine processing time are required. One foot of tube B is
it takes 0.45 min and one foot of tube C, 0.6 min on the same machine. After the
production, each foot of pipe, regardless of type, requires an ounce of
welding material. The total production cost is estimated at US$3, US$4 and
US$4 per foot of tube A, B, and C, respectively.
For the following week, the foundry has received an exceptionally order.
large consisting of 2,000 feet of tube A, 4,000 feet of tube B, and 5,000 feet of
tube C. As for this week, there are only 40 hours available.
machine time and only 5,500 ounces of welding material are
they find in inventory, the production department will not be able to meet
with the demand. Due to the fact that the administration does not expect the level to continue
such high demand, does not want to extend the production facilities, but neither
he wants to lose the contract. Consequently, he is considering the possibility of
acquire some tubes from Japanese suppliers at the delivery cost of US$6 per
A tube foot is $6 per foot for tube B and $7 per foot for tube C. This data is
summary in the following table:

Time Material
Type Price Cost of Cost of
Demand of of
of of Production Acquisition
pie welding machine
Tube sale (US$/pie) (US$/piece)
(min/pie) (onza/pie)
A 10 2,000 0.50 1 3 6
B 12 4,000 0.45 1 4 6
C 9 5,000 0.60 1 4 7
Available quantity 40 hr 5,500 oz.

It should be noted that the government is asking to reduce monetary spending on

imports, in addition to maximizing total profit. How does the foundry
addresses the goals in conflicts of maximizing profits and minimizing costs
Imports? Consider the following goals:
Reach a goal of at least US$55,000, imposing a penalty of 2
for every dollar of profit that is below US$55,000.
Consider a maximum expenditure on imports of US$40,000, giving a
penalty of 1 for every dollar of import that is above
$40,000.