--%>

Goal programming model

Write an article on Goal programming model to address the selection of the best group of quality control instruments in designing a quality control system for service organizations.

E

Expert

Verified

Schniederjans and Karuppan had developed a goal-programming (GP) model to address the selection of the best group of quality control instruments in designing a quality control system for service organizations. Their simple scoring method was highly susceptible to the bias introduced by the initial solution and there are chances to adjust this bias and fix upon initial points. However, this method lacks consistency in results since individuals, being humans, alter their mind through reconsideration or process of learning. Analytical Hierarchical Process (AHP) has been recommended by Schniederjans and Karuppan to obtain initial estimate of priorities and accurately rank the importance of quality measures. Badri (2001) followed their recommendation and demonstrated how limitations in decision-making involving the selection of quality control instruments could be easily overcome by combining the AHP and GP models.

Badri (2001) employed the combined AHP-GP model for a large department store in evaluating seven alternatives to design a quality control system for customer data collection purposes. Initially the AHP was used as a stand-alone model. The five decision criteria included were reliability, responsiveness, empathy, assurance and tangibles and decision alternatives included large-scale mail survey of known customers, large-scale telephone survey of known customers, personal interviews while shopping, open-ended comment cards, point of purchase surveys to measure employee service delivery and product-line service delivery and small-scale telephone surveys of known customers. Pair wise comparisons between alternatives and criteria results in a matrix, which on application of right eigenvector method and synthesization, gave the priorities of those alternatives. Responsiveness and large-scale telephone survey of known customers obtained the highest ranks and preferences.

While using the combined model, the resource limitations like budgetary constraints, labor constraints were included in the model. The objective function minimized the estimated cost, management hours and employee hours and AHP was employed to determine the weights of the decision alternatives along the five criteria. The equations were generated and the model was solved using the LINDO software. The combined model gave importance to three criteria namely responsiveness, reliability and assurance and chose four alternatives namely point of purchase survey to measure employee service delivery, open-ended comment cards, small-scale telephone survey of known customers and large-scale mail survey of known customers. This result was contradictory to the AHP model.

The combined model thus gave a thorough decision process wherein it included completeness and non-bias nature of pair wise comparisons. The other major advantage of this model is consistent decision making. In addition, the drawbacks of GP were avoided. This method serves to be a favorable tool for the management of the department store, however the model must be refined continuously according to customer tastes and include any other resource constraints, if any.

   Related Questions in Financial Accounting

  • Q : Trend of Gross profit of Company

    Describe the trend of Gross profit of Company?

  • Q : Concessionary loan with APV model State

    State nature of the concessionary loan and explain how it is handled within the APV model?

  • Q : Depriciation techniques What are the

    What are the merits and demerits of the techniques shown below of depreciation? • Straight line process • Reducing balance process• Revaluation process • Usage process &b

  • Q : Balance Sheets & Income Statement

    Bio-Pure Food Company Gary Green has recently inherited some money and is interested in investing in a small company with some growth potential.  Last week he r

  • Q : What is Account What is Account .

    What is Account. Explain briefly.

  • Q : Accounting Required parts are clearly

    Required parts are clearly describes at the end of the questions and additional resource contains the journal article related to question three.. Approx 2000 word assignment.. First Question is of not more than 1000 words to make memorandum and its example is given at end of assignment and require

  • Q : What is Triangular arbitrage What is

    What is meant by the Triangular arbitrage?  Explain about the condition which provides rise to opportunity of the triangular arbitrage?

  • Q : Computing cross-rate matrix Compute

    Compute cross-rate matrix for French franc, Japanese yen, German mark, and the British pound. Utilize most recent European term quotes in order to compute the cross-rates in order that the triangular matrix result is same as that of the portion above diagonal in Exhib

  • Q : State Return on Investment or ROI

    Return on Investment (ROI): It is a performance measure employed to calculate the efficiency of an investment or to compare the effectiveness of a number of various investments. To compute ROI, the advantage (return) of an investment is divided by the

  • Q : Case study of gene expression analysis

    The paper by Golub et al. that was the focus of the second part of the BioConductor practical was the first analysis of its kind, demonstrating that gene expression analysis could potentially be used to classify leukaemia sub-types. Since its publication in 1999 there