GOAL PROGRAMMING

Faris Pencil Sharpener Company products three different models of pencil sharpeners, A, B, and C. The unit processing times and unit cost of each pencil sharpener are given in Table 2. The total machining plating, and assembly man-hours available per day 100, 50, and 75 respectively.

Table 2

Types	Machining Man-Hours/Unit	Plating Man-Hours/Unit	Assembly Man-Hours/Unit	Cost/Unit
A	0.5	0.01	0.04	$5
B	1.0	0.02	0.05	$9
C	1.0	0.05	0.06	$10

The management policy requires that no machining and plating work should be done on overtime and only 15 man-hours per day may be allowed for the assembly work. The company has daily production budget $1000.

The management has the following goals, stated in decreasing order of priority:

a. The combined daily underutilization of the three process should be limited to 30 man-hours.

b. Production budget should not be exceeded by 10%.

c. Limit the overtime assembly work to 15 man-hours per day.

d. Produce 30 units of type C.

FORMULATE THE MODEL