4120_lecture17-F10

# 4120_lecture17-F10 - Computational Methods for Management...

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Computational Methods for Management and Economics Carla Gomes Lecture 17 Reading: Section 11.1-11.3 of text book.

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Outline Goal Programming Introduction to Integer Programming
Goal Programming

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Goal Programming Key assumption so far – a single objective Is that realistic? Often not; A variety of objectives should be considered
Weighted Goal Programming A common characteristic of many management science models (linear programming, integer programming, nonlinear programming) is that they have a single objective function. It is not always possible to fit all managerial objectives into a single objective function. Managerial objectives might include: Maintain stable profits. Increase market share. Diversify the product line. Maintain stable prices. Improve worker morale. Maintain family control of the business. Increase company prestige. Weighted goal programming provides a way of striving toward several objectives simultaneously . (Adapted from Mark Hillier’s slides)

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Goal Programming Idea behind Goal Programming: Define Numeric goal for each of the objectives Formulate Objective function for each objective Minimize Weighted sum of the deviations of these objective functions from their
Types of Goals A lower , one sided goal : sets a lower limit that we do not want to fall under (but exceeding the limit is okay) An upper , one sided goal : sets an upper limit that we do not want to fall under (but falling under is okay) A two-side goal – sets a specific target that we do not want to miss on either side.

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Relative Importance of Goals Non-preemptive goal programming - all the goals are roughly comparable Preemptive goal programming - there is a hierarchy of priority levels for goals
Non-preemptive goal programming Goal are roughly comparable in importance

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11.10 The Dewright Company
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4120_lecture17-F10 - Computational Methods for Management...

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