COMMERCE 4QC3 Lecture Notes - Imber, Profit Maximization, Vehicle Identification Number

• School: McMaster University
• Department: Commerce
• Course: COMMERCE 4QC3
• Professor: Manish Verma

Document Summary

Ch. 07: multicriteria and nonlinear programming models (cid:120) not responsible for section 7. 2: the analytic hierarchy process. Goal programming models (cid:120) profit maximization or cost minimization is not always a firm"s only objectives. Often, it is combined with one or more objectives in the real business environment. (cid:120) lp and ip can measure objective function in only one dimension. For example, lp models cannot combine multiple objectives unless they are measured in the same units such as dollars. (cid:120) goal programming can overcome the above shortcoming, by: first setting a goal for each objective. E=number of exterior doors to make; i=number of interior doors to make; and, c=number of commercial doors to make. (cid:1839)(cid:1853)(cid:1876)(cid:1861)(cid:1865)(cid:1861)(cid:1878)(cid:1857) (cid:1872)(cid:1867)(cid:1872)(cid:1853)(cid:1864) (cid:1871)(cid:1853)(cid:1864)(cid:1857)(cid:1871)=(cid:1831)+(cid:1835)+(cid:1829) 2(cid:1831)+3(cid:1835)+4(cid:1829)(cid:3409)5200 (assembly time) (cid:1831),(cid:1835),(cid:1829) (cid:3410)0 subject to: (cid:120) optimal lp solution: e=1400, i=800, and c=0 for total sales of 000. Total sales goal is 5 times more important than that on the other three goals. Interpreting the results: (cid:120) (cid:120) (cid:120) (cid:120) (cid:120)