Study of Role of Linear Programming Model in Management and Optimization of Operating Costs in an Organization

In the past few years, there has been a remarkable development in methodologies to solve multi-objective programming (MOP) problems. Goal programming has been one of the most widely used techniques considered in solving MOP problems because of its inherent flexibility in handling decision-making problems with several conflicting objectives and incomplete or imprecise information. In this paper I would discuss the application of Goal Programming in operating cost distribution of an organization/institution using Nirmal Industries, Ahmedabad , India as a case study. This paper shall help in making the masses aware of the use of Goal Programming in achieving the institution's aim economically and financially. For this case study, five goals are considered in the order of priorities namely; Employment benefits (salary and allowance), General Expenses, CAPEX (capital expenditure), Revenue and the Total budget. The data on the operating cost estimates (of year 2016 and 2017) of Nirmal Industries, Ahmedabad , India, is used to formulate a Goal Programming Problem and Weighted Pre¬emptive Goal Programming method would be used to solve it. The process incorporates elements of operating cost and goal programming for budget reduction. It is also recommended that there should be a reliable operating cost monitoring team that could efficiently evaluate operating cost annually.