Modified Goal Programming Model for Limited Available Budget Allocation for Equipment Procurement under Inflation Condition

Abstract

Equipment procurement budget is of a great challenge in manufacturing industries by reasons of its multi-objectives, insufficient funds, and inflation problems. Solutions were proffered to these problems by identifying the strategic decisions required in equipment procurement (machine, accessories, spare parts and miscellaneous costs). Procurement changes from year to year based on equipment industrial needs. Hence eleven (11) scenarios for procurement but this study focused on a scenario where all the decisions are needed for procurement. This problem is multi-objective decision problem where there is need for multi-objective decision tool for its solution, therefore a goal programming tool was adopted and improved by integrating inflation model into it to be able to solve inflation problems. International Brewery Ilesha, Nigeria was used as case study for the model’s application to evaluate its performance. The strategic decisions deviated above or positively by 0.4604, 4.1311 and 2.3760 for machines, spare-parts and miscellaneous costs respectively while accessories cost was not deviated. Therefore, the procurement cost for Machines, Accessories, Spare-parts and Miscellaneous costs would be (N 166,015,000; $ 461,152.77), (N 127,968,000; $ 355,466.67), (N 548,075,000; $ 1,522,430.56), (N 271,091,500; $ 753,031.94). US Dollar exchange rate was at N 360 to a Dollar as at the time of this research. This multi-criteria decision tool will find its application useful in small, medium and large scale industries that equipment procurement budget affects their production.v

Using a Product Life Cycle Cost Model to Solve Supplier Selection Problems in a Sustainable, Resilient Supply Chain

“…All mixed-integer terms in Equations ( 27) and ( 29) can be easily linearized through the approach developed by Chang [47]. As presented in Equations ( 27), ( 29) and (30), no selection limitations were imposed on a specific objective, but some dependent relationships were observable between goals. Thus, we can add the auxiliary constraint b i ≤ b i+1 + b i+2 to the RMCGP achievement function model, where b i , b i+1 , and b i+2 are binary variables.…”

“…Step 10: Implement RMCGP through the geometric-mean-weighted and no-penalty-weighted construction of the fuzzy optimization problem, as expressed in Equations ( 27) and (30).…”

“…In this SCPLCC example, the optimal quota allocations (i.e., purchasing order), production capacity limitations, and budget constraints of the suppliers were determined through RMCGP with a penalty-weighted approach, as expressed in Equations ( 27) and (30). This SCPLCC problem can now be reformulated as the following program:…”

Accountability in the financial management practices of school principals

“…They pave the way for dealing with and the subsequent legal and disciplinary repercussions and misconduct as described in Sections 81(1) (a) and (b) and 38-42 of the PFMA (Mantzaris, 2019). Budget is a powerful tool for planning and controlling the resources available to the manager (Ojo et al, 2020). Budgeting itself is the process of estimating the needs of the institution for a future period based on experience and future Financial management of school principals needs (Ojo et al, 2020).…”

“…Budget is a powerful tool for planning and controlling the resources available to the manager (Ojo et al, 2020). Budgeting itself is the process of estimating the needs of the institution for a future period based on experience and future Financial management of school principals needs (Ojo et al, 2020). The inflation factor also plays an important role in assisting managers to determine what the budget for the future should be.…”