MGOC10H3 Lecture Notes - Lecture 6: Goal Programming
Document Summary
Lecture 07: 2 main approaches: (a) goal programming (b) scoring models (ahp, make decisions with more than one and sometimes conflicting requirements, need to convert some of these requirements into goals. [hard constraints] [soft constraints or goals: hence the name goal programming. Ad agency is trying to place tv ads for car company. Can purchase football or comedy ads with following exposure/ad and costs/ad. Abc wants to determine how many products 1, 2, 3 to produce. 4: achieve a profit of at least million, maintain current level of 4000 employees, hold capital investment to less than million. Penalty/weights: profit goal, employment goal 2 points/100 employee over, 4 points/100 under, capital goal. 5points/million $ under product 2 product 1. Preemptive goal programming procedure: does not require you to specify weights/penalty for each goal, but have to rank importance of each goal. Suppose model has goals in order of importance: d1+, d2-, d3-, .
