--%>

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 : Merits of Budgetary Control Write down

    Write down the merits of Budgetary Control?

  • Q : Legal Reasoning and Writing This

      This exercise does not require you to do any research, and does not require you to cite to any references or external materials.  Do not include any constitutional arguments. Like many legal and policy questions

  • Q : Define status and role Define status

    Define status and role, explain the difference between the two, provide illustrations.

  • Q : Introduction of the term Financial

    Give a brief introduction of the term ‘Financial Accounting’. And also write down its elements?

  • Q : Concessionary loan with APV model State

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

  • Q : Prepare the journal entry to record the

    The Webster Company uses the aging method to estimate the allowance for doubtful accounts. The following schedule of accounts receivable was prepared as at December 31, 20x6: Age Balance % uncollectible 0-30 days $674,000 0.5% 31-60 days 186,000 1.2% <

  • Q : Avoidable Interest The book says

    The book says "avoidable interest is the amount of interest cost during the period that a company could theoretically avoid if it had not made expenditures for the asset." This makes it sound like avoidable interest is the total amount of interest paid for an asset. I know it's not but I was wonder

  • Q : Economic exposure How economic exposure

    How economic exposure can be defined in order to exchange the risk?

  • Q : Progressives The progressives were

    The progressives were fascinated in “making people better.” What types of things were they fascinated in changing and who were they aiming their changes at?

  • Q : Portfolio of Sharemarket SHAREMARKET

     SHAREMARKET ASSIGNMENT SHEET  - Select a share portfolio consisting of one company from each group listed above. The total value of your portfolio should add up to