AN APPLICATION OF LINEAR GOAL PROGRAMMING TO THE MARKETING DISTRIBUTION DECISION

This paper presents an application of linear goal programming to the distribution decision faced by the marketing department of a food products manufacturer. A model is developed to determine the optimal distribution structure in terms of the percentage of All-Commodity Volume, while simultaneously taking into consideration market share, profit, and budget goal constraints. After generating an optimal solution, the goal priority structure is modified, and an alternative solution is presented. Finally, the implications of these results for the management of the marketing function are discussed.