Goal Programming Example

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Goal Programming Example

• Henry C. Co
• California Polytechnic State University

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The System Constraint

• Two principal product lines
• Portable circular saw
• Precision table saw.
• Average contribution to profits and overhead
• 900 for each circular saw
• 600 for each table saw.
• Management would like contribution to profits and
  overhead to be at least 2,000,000 per month.

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Goal 1

• Past experience indicates that sales of circular
  saw are three times that of precision table. As
  much as possible, marketing would like to
  maintain a 31 ratio in the product mix.
• Note If X1 no. of circular saw and X2 no. of
  precision table saw, then X1 3X2 or X1-3X20.

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Goal 2 (Fabrication)

• Two crucial operations fabrication and assembly.
  
• Fabrication
• Each circular saw requires 2 hours
• Each table saw requires 1 hour
• Hours available is 4,000 hours/month
• Though idle time and overtime are acceptable,
  management would like the fabrication hours to be
  as close to 4,000 hours as possible.

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Goal 3 (Assembly)

• Assembly
• Each circular saw requires 1 hour
• Each table saw requires 2 hours
• Hours available is 5,000 hours/month
• Though idle time and overtime are acceptable,
  management would like the assembly hours to be as
  close to 5,000 hours as possible.

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Excel Solution
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Goal 1
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Goal 2
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Goal 3
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