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    CH 9

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    08bch022
    This chapter discusses multicriteria decision making and goal programming. It begins with an overview of goal programming, which involves modeling problems with multiple objectives by assigning priorities to goals and minimizing deviations from them. The chapter then presents a worked example of formulating and solving a goal programming model for a pottery company facing multiple objectives. It demonstrates graphical interpretations of the goal constraints and priorities. Finally, it shows how goal programming problems can be solved using QM for Windows and Excel, and presents an example problem on determining staffing needs for a public relations firm to satisfy multiple interview goals.

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    CH 9

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    08bch022
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    This chapter discusses multicriteria decision making and goal programming. It begins with an overview of goal programming, which involves modeling problems with multiple objectives by assigning priorities to goals and minimizing deviations from them. The chapter then presents a worked example of formulating and solving a goal programming model for a pottery company facing multiple objectives. It demonstrates graphical interpretations of the goal constraints and priorities. Finally, it shows how goal programming problems can be solved using QM for Windows and Excel, and presents an example problem on determining staffing needs for a public relations firm to satisfy multiple interview goals.

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    CH 09

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    Ch 9

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    This chapter discusses multicriteria decision making and goal programming. It begins with an overview of goal programming, which involves modeling problems with multiple objectives by assigning priorities to goals and minimizing deviations from them. The chapter then presents a worked example of formulating and solving a goal programming model for a pottery company facing multiple objectives. It demonstrates graphical interpretations of the goal constraints and priorities. Finally, it shows how goal programming problems can be solved using QM for Windows and Excel, and presents an example problem on determining staffing needs for a public relations firm to satisfy multiple interview goals.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    95 views33 pages

    CH 9

    Uploaded by

    08bch022
    This chapter discusses multicriteria decision making and goal programming. It begins with an overview of goal programming, which involves modeling problems with multiple objectives by assigning priorities to goals and minimizing deviations from them. The chapter then presents a worked example of formulating and solving a goal programming model for a pottery company facing multiple objectives. It demonstrates graphical interpretations of the goal constraints and priorities. Finally, it shows how goal programming problems can be solved using QM for Windows and Excel, and presents an example problem on determining staffing needs for a public relations firm to satisfy multiple interview goals.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 33
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    The chapter discusses multicriteria decision making and goal programming, which is a technique for solving problems with multiple objectives. Goal programming extends linear programming by incorporating goals or targets instead of a single objective function.

    Goal programming is a variation of linear programming that considers multiple objectives or goals in the objective function, rather than a single objective. It allows for priorities to be assigned to different goals and attempts to minimize deviations from the goals in order of priority.

    A goal programming model includes goal constraints with deviation variables to represent the amount a goal is exceeded or underachieved. The objective is to minimize the deviations from goals in the specified priority order.

    Introduction to Management Science

    8th Edition
    by
    Bernard W. Taylor III
    Chapter 9
    Multicriteria Decision Making

    Chapter 9 - Multicriteria Decision Making

    Chapter Topics
    Goal Programming
    Graphical Interpretation of Goal Programming
    Computer Solution of Goal Programming Problems with
    QM for Windows and Excel
    Overview
    Study of problems with several criteria, multiple criteria, instead of a
    single objective when making a decision.
    Goal programming is a variation of linear programming considering
    more than one objective (goals) in the objective function.

    Chapter 9 - Multicriteria Decision Making

    Goal Programming
    Model Formulation (1 of 2)
    Beaver Creek Pottery Company Example:
    Maximize Z = $40x1 + 50x2
    subject to:
    1x1 + 2x2 40 hours of labor
    4x2 + 3x2 120 pounds of clay
    x1, x2 0
    Where: x1 = number of bowls produced
    x2 = number of mugs produced

    Chapter 9 - Multicriteria Decision Making

    Goal Programming
    Model Formulation (2 of 2)
    Adding objectives (goals) in order of importance (i.e.
    priorities), 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.

    Chapter 9 - Multicriteria Decision Making

    Goal Programming
    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.
    Chapter 9 - Multicriteria Decision Making

    Goal Programming: Goal Constraints (1 of 3)


    x1 + 2x2 = 40 - d1- + d1+

    40x1 + 50 x2 = 1,600 - d2- + d2+

    4x1 + 3x2 = 120 - d3- + d3+


    x1, x2, d1 -, d1 +, d2 -, d2 +, d3 -, d3 + 0

    Chapter 9 - Multicriteria Decision Making

    Goal Programming: Objective Function (2 of 3)


    Let Pi= Priority i, where i = 1, 2, 3, and 4.
    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+
    Chapter 9 - Multicriteria Decision Making

    Goal Programming
    Goal Constraints and Objective Function (3 of 3)
    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

    Chapter 9 - Multicriteria Decision Making

    Goal Programming
    Alternative Forms of Goal Constraints (1 of 2)
    Changing fourth-priority goal limits overtime to 10 hours
    instead of minimizing overtime:
    d1- + d4 - - d4+ = 10
    minimize P1d1 -, P2d2 -, P3d3 +, P4d4 +
    Addition of a fifth-priority goal- due to limited warehouse
    space, cannot produce more than 30 bowls and 20 mugs
    daily.
    x1 + d5 - = 30 bowls
    x2 + d6 - = 20 mugs
    minimize P1d1 -, P2d2 -, P3d3 -, P4d4 -, 4P5d5 -, 5P5d6 Chapter 9 - Multicriteria Decision Making

    Goal Programming
    Alternative Forms of Goal Constraints (2 of 2)
    Complete Model with New Goals:
    Minimize P1d1-, P2d2-, P3d3-, P4d4-, 4P5d5-, 5P5d6subject to:
    x1 + 2x2 + d1- - d1+ = 40
    40x1 + 50x2 + d2- - d2+ = 1,600
    4x1 + 3x2 + d3- - d3+ = 120
    d1+ + d4- - d4+ = 10
    x1 + d5- = 30
    x2 + d6- = 20
    x1, x2, d1-, d1+, d2-, d2+, d3-, d3+, d4-, d4+, d5-, d6- 0
    Chapter 9 - Multicriteria Decision Making

    Goal Programming
    Graphical Interpretation (1 of 6)

    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 9.1
    Goal Constraints

    Chapter 9 - Multicriteria Decision Making

    Goal Programming
    Graphical Interpretation (2 of 6)

    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 9.2
    The First-Priority Goal: Minimize

    Chapter 9 - Multicriteria Decision Making

    Goal Programming
    Graphical Interpretation (3 of 6)

    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 9.3
    The Second-Priority Goal: Minimize

    Chapter 9 - Multicriteria Decision Making

    Goal Programming
    Graphical Interpretation (4 of 6)

    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 9.4
    The Third-Priority Goal: Minimize

    Chapter 9 - Multicriteria Decision Making

    Goal Programming
    Graphical Interpretation (5 of 6)

    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 9.5
    The Fourth-Priority Goal: Minimize

    Chapter 9 - Multicriteria Decision Making

    Goal Programming
    Graphical Interpretation (6 of 6)
    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
    Chapter 9 - Multicriteria Decision Making

    Goal Programming
    Computer Solution Using QM for Windows (1 of 3)
    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

    Exhibit 9.1

    Chapter 9 - Multicriteria Decision Making

    Goal Programming
    Computer Solution Using QM for Windows (2 of 3)

    Exhibit 9.2

    Chapter 9 - Multicriteria Decision Making

    Goal Programming
    Computer Solution Using QM for Windows (3 of 3)

    Exhibit 9.3

    Chapter 9 - Multicriteria Decision Making

    Goal Programming
    Computer Solution Using Excel (1 of 3)

    Exhibit 9.4

    Chapter 9 - Multicriteria Decision Making

    Goal Programming
    Computer Solution Using Excel (2 of 3)

    Exhibit 9.5

    Chapter 9 - Multicriteria Decision Making

    Goal Programming
    Computer Solution Using Excel (3 of 3)

    Exhibit 9.6

    Chapter 9 - Multicriteria Decision Making

    Goal Programming
    Solution for Alternate Problem Using Excel (1 of 6)
    Minimize P1d1-, P2d2-, P3d3-, P4d4-, 4P5d5-, 5P5d6subject to:
    x1 + 2x2 + d1- - d1+ = 40
    40x1 + 50x2 + d2- - d2+ = 1,600
    4x1 + 3x2 + d3- - d3+ = 120
    d1+ + d4- - d4+ = 10
    x1 + d5- = 30
    x2 + d6- = 20
    x1, x2, d1-, d1+, d2-, d2+, d3-, d3+, d4-, d4+, d5-, d6- 0

    Chapter 9 - Multicriteria Decision Making

    Goal Programming
    Solution for Alternate Problem Using Excel (2 of 6)

    Exhibit 9.7

    Chapter 9 - Multicriteria Decision Making

    Goal Programming
    Solution for Alternate Problem Using Excel (3 of 6)

    Exhibit 9.8

    Chapter 9 - Multicriteria Decision Making

    Goal Programming
    Solution for Alternate Problem Using Excel (4 of 6)

    Exhibit 9.9

    Chapter 9 - Multicriteria Decision Making

    Goal Programming
    Solution for Alternate Problem Using Excel (5 of 6)

    Exhibit 9.10

    Chapter 9 - Multicriteria Decision Making

    Goal Programming
    Solution for Alternate Problem Using Excel (6 of 6)

    Exhibit 9.11

    Chapter 9 - Multicriteria Decision Making

    Goal Programming
    Excel Spreadsheets (1 of 4)

    Exhibit 9.12

    Chapter 9 - Multicriteria Decision Making

    Goal Programming
    Excel Spreadsheets (2 of 4)

    Exhibit 9.13

    Chapter 9 - Multicriteria Decision Making

    Goal Programming
    Excel Spreadsheets (3 of 4)

    Exhibit 9.14

    Chapter 9 - Multicriteria Decision Making

    Goal Programming
    Excel Spreadsheets (4 of 4)

    Exhibit 9.15

    Chapter 9 - Multicriteria Decision Making

    Goal Programming Example Problem


    Problem Statement
    Public relations firm survey interviewer staffing requirements
    determination.
    One person can conduct 80 telephone interviews or 40 personal
    interviews per day.
    $50/ day for telephone interviewer; $70 for personal interviewer.
    Goals (in priority order):
    At least 3,000 total interviews.
    Interviewer conducts only one type of interview each day. Maintain
    daily budget of $2,500.
    At least 1,000 interviews should be by telephone.
    Formulate a goal programming model to determine number of
    interviewers to hire in order to satisfy the goals, and then solve the
    problem.

    Chapter 9 - Multicriteria Decision Making

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