Example 1, Section 4.
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The Leon Burnit Ad Agency is trying to determine a TV schedule for Priceler Auto.
The Leon Burnit Ad Agency is trying to determine a TV schedule for Priceler
Auto. The company wants to buy advertising time that targets three specific de-
mographics: High income men (HIM), high income women (HIW) and low income
people (LIP). We can purchase time during football games (x1 ), and time during
soap operas (x2 ). From ratings agencies, we have the following data, where the
numbers are in millions of viewers. Underneath, we list the ad agency’s total goals.
Ad HIM LIP HIW Cost
Football 7 10 5 100, 000
Soap Opera 3 5 4 60, 000
Goals 40 60 35 600, 000
This means, for example, that the ad agency wants to reach at least 40 million
viewers “HIM”, 60 million “HIW”, and 35 million “LIP”, with a total budget of
$600,000.00.
1
Example 2, Section 4.16 (Goal Programming)
The Dewright company is considering three new products to replace current mod-
els. Primary consideration should be given to three factors:
• Long-run profit of at least 125 million dollars.
• Maintain current employment of 4000 employees.
• Hold the level of capital investment required now for new equipment to less
than 55 million dollars.
It will probably not be possible to attain all of these goals simultaneously, so
some relative penalty weights were assigned (penalties relative to each other) as
shown below. Each new product’ contribution to profit, employment and capital
is proportional to the rate of production. These contributions (per unit rate of
production) are shown in the table below.
Factor Prod 1 2 3 Goal (units) Penalty
Long run profit 12 9 15 ≥ 125 (millions dollars) 5
Employment 5 3 4 = 40 (hundreds of people) 2(+), 4(−)
Capital 5 7 8 ≤ 55 (millions dollars) 3
(Let x1 , x2 , x3 be the production rates of Products 1, 2, 3 respectively). Formulate
a system for goal programming.
2
Example 3: Preemptive Goal Programming, In-Class
Going back to Example 1, suppose we prioritize the goals:
min z = P1 s−
1
min z = P 2 s−
2
min z = P3 s −
3
To reiterate, the “constraints” were:
7x1 + 3x2 ≥ 40 HIM
10x1 + 5x2 ≥ 60 LIP
5x1 + 4x2 ≥ 35 HIW
100x1 + 60x2 ≤ 600 Budget
Write the tableau that we will put into Maple:
3
Example 4: Color TVs and VCRs
This is a modification of Exercise 3 from the text.
Highland Appliance must determine how many color TVs and VCRs should be
stocked. It costs Highland $300 to purchase a TV and $200 to purchase a VCR.
A TV requires 3 square yards of storage space, and a VCR requires 1 square yard.
A TV will bring $150 in profit, a VCR $100. Highland has set the following goals
(in order of importance):
• Goal 1: We have $20,000 to buy TVs and VCR’s
• Goal 2: We need at least $11,000 in profit
• Goal 3: We have no more than 200 square yards of storage space.
First, formulate a nonpreemptive goal program that makes the penalty for profit
10 times that of the other two goals, and solve with LINDO. Then make them all
equal and re-solve (using LINDO).
Secondly, write a preemptive goal program and solve it with Maple.
