Linear Programming: Model Formulation and Graphical Solution

Linear Programming: Model Formulation and Graphical Solution (Lecture-1)
Introduction
o Objectives of business decisions frequently involve maximizing profit or
minimizing costs.
o Linear programming uses linear algebraic relationships to represent a firm’s
decisions, given a business objective, and resource constraints.
o Steps in application:
1. Identify problem as solvable by linear programming.
2. Formulate a mathematical model of the unstructured problem.
3. Solve the model.
4. Implementation
Model Components
o Decision variables - mathematical symbols representing levels of activity of a
firm.
o Objective function - a linear mathematical relationship describing an objective of
the firm, in terms of decision variables - this function is to be maximized or
minimized.
o Constraints – requirements or restrictions placed on the firm by the operating
environment, stated in linear relationships of the decision variables.
o Parameters - numerical coefficients and constants used in the objective function
and constraints.
Summary of Model Formulation Steps

Step 1: Clearly define the decision variables
Step 2: Construct the objective function
Step 3: Formulate the constraints
LP Model Formulation A Maximization Example

o Product mix problem - Beaver Creek Pottery Company
o How many bowls and mugs should be produced to maximize profits given labor
and materials constraints?
o Product resource requirements and unit profit:
Resource Requirements
Labor Clay Profit
Product
(Hr./Unit) (Lb./Unit) ($/Unit)
Bowl 1 4 40
Mug 2 3 50
Resource Availability: 40 hrs of labor per day

120 lbs of clay
Decision Variables:
1
x1 = number of bowls to produce per da
x2 = number of mugs to produce per day
Objective Function:
Maximize Z = $40x1 + $50x2
Where Z = profit per day
Resource Constraints:
1x1 + 2x2  40 hours of labor
4x1 + 3x2  120 pounds of clay
Non-Negativity Constraints: x1  0; x2  0
Complete Linear Programming Model:

Subject to: 1x1 + 2x2  40
4x2 + 3x2  120
x1, x2  0
Graphical Solution of Maximization Model
subject to: 1x1 + 2x2  40
4x2 + 3x2  120
x1, x2  0
LP Model Formulation – Minimization Example

o Two brands of fertilizer available - Super-grow, Crop-quick.
o Field requires at least 16 pounds of nitrogen and 24 pounds of phosphate.
o Super-grow costs $6 per bag, Crop-quick $3 per bag.
o Problem: How much of each brand to purchase to minimize total cost of fertilizer
given following data?
Chemical Contribution
Nitrogen Phosphate
Brand
(lbs. / bag) (lbs./ bag)
Super-grow 2 4
Crop-quick 4 3
Decision Variables:
x1 = bags of Super-grow
x2 = bags of Crop-quick
The Objective Function:
Minimize Z = $6x1 + 3x2
Where: $6x1 = cost of bags of Super-Gro
$3x2 = cost of bags of Crop-Quick
Model Constraints:
2
2x1 + 4x2  16 lb (nitrogen constraint)
4x1 + 3x2  24 lb (phosphate constraint)
x1, x2  0 (non-negativity constraint)
Constraint Graph – Minimization

Minimize Z = $6x1 + $3x2
subject to: 2x1 + 4x2  16
4x2 + 3x2  24
x1, x2  0
Example 0.1.1 Prototype Example A paint manufacturer produces two types of paints,
one type of standard quality (S) and the other of top quality (T).S To make these paints,
he needs two ingredients, the pigment and the resin. Standard quality requires 2 units of
pigments and 3 units of resin for each unit made, & are sold at a profit of R1 per unit.
Top quality paint requires 4 units of pigments and 2 units of resin for each unit made,
and are sold at a profit of R1.50 per unit. He has stocks of 12 units of pigments and 10
units of resin. Formulate this problem as a linear programming problem to maximize his
profit?
We make the following table from the given data
Example 0.1.2: (Diet problem) A house wife wishes to mix two types of food F 1 and F2 in
such a way that the vitamin contents of the mixture contain at least 8 units of vitamins A
and 11 units of vitamin B. Food F1 costs E60 / Kg & Food F2 costs E80 / Kg. Food F1
contains 3 units per gram of vitamin A and 5 units per gram vitamin B while Food F2
contains 4 units per gram of vitamin A and 2 units per gram vitamin B. Formulate this
problem as a linear programming problem to minimize the cost of the mixtures.
We make the following table from the given data
3
Example 0.1.3: A furniture company produces inexpensive tables and chairs. The
production process for each is similar in that both require a certain number of hours of
carpentry work and a certain no. of labor hours in the painting department.
Each table takes 4 hours of carpentry and 2 hours in the painting department. Each
chair requires 3 hours of carpentry work and 1 hour in the painting department. During
the current production period, 240 hours of carpentry time are available and 100 hours
in painting are available.
Find the best combination of tables and chairs to manufacture in order to reach the
maximum profit.
We begin by summarizing the information needed to solve the problem in the form of a
table. This helps us understand the problem being faced
The objective is to maximize profit
Example 0.1.5 (Medicine) A Patient in a hospital is required to have at least 84 units of

drug A and 120 units of drug B on each day. Each gram of M contains 10 units of drug
A and 8 units of drug B, and each gram of substance N contains 2 units of drug A and 4
units of drug B. Now suppose that both M and N contains an undesirable drug C, 3 units
per gram in M and 1 unit per gram in N. How many grams of substance M and N should
be mixed to meet the minimum daily requirements at the same time minimize the intake
of drug C? How many units of the undesirable drugs C will be in this mixture?
Simplex Method
Linear programming models could be solved algebraically. The most widely used
algebraic procedure for solving linear programming problem is called the Simplex
Method. The simplex method is a general-purpose linear-programming algorithm widely
used to solve large scale problems. Although it lacks the intuitive appeal of the graphical
approach, its ability to handle problems with more than two decision variables makes it
4
extremely valuable for solving problems often encountered in production/operations
management. Thus simplex method offers an efficient means of solving more complex
linear programming problems.
Characteristics of Simplex Method

o In the simplex method, the computational routine is an iterative process. To
iterate means to repeat; hence, in working toward the optimum solution, the
computational routine is repeated over and over, following a standard pattern.
o Successive solutions are developed in a systematic pattern until the best solution
is reached.
o Each new solution will yield a value of the objective function as large as or larger
than the previous solution. This important feature assures us that we are always
moving closer to the optimum answer. Finally, the method indicates when the
optimum solution has been reached.
Slack Variable
Slack variables are defined to transform an inequality expression into an equality
expression with an added slack variable. The slack variable is defined by setting a lower
bound of zero (>0).
Inequality Constraint Form x>b
x = b + slack
Equality Constraint Form with Slack Variable
slack > 0
Example (Simplex Method)

A company makes two types of products, A and B. These products are produced
during a 40-hour work week and then shipped out at the end of the week. They require
20 and 5 kg of raw material per kg of product, respectively, and the company has
access to 9500 kg of raw material per week. Only one product can be created at a time
with production times for each of 0.04 and 0.12 hour, respectively. The plant can only
store 550 kg of total product per week. Finally, the company makes profit of $45 and
$20 on each unit of A and B, respectively. Each unit of product is equivalent to a kg.
Solve the linear programming problem with the simplex method
Solution:-
Let x1 and x2 are the kinds of products A and B.

Maximize profit P  45x1  20 x2
Subject to
20 x1  5x2  9500 (Raw material constraint)
0.04 x1  0.12 x2  40 (Production time constraint)
x1  x2  550 (Storage Constraint)
x1  0, x2  0
5
Ans. P  22, 250 at x1  450 and x2  100
Steepest Ascent and Steepest Descent Methods

Steepest Ascent and Steepest Descent Methods are the optimization techniques
for the nonlinear programming models, both methods are the gradient method which is
used to maximize (Steepest Ascent) and minimize (Steepest Descent) the cost function.
Starting at x0 , y0 the coordinates of any point in the gradient direction can be expressed
as
Where h is distance along the h axis

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Linear Programming: Model Formulation and Graphical Solution (Lecture-1)

Summary of Model Formulation Steps

LP Model Formulation A Maximization Example

Resource Availability: 40 hrs of labor per day

Maximize Z = $40x1 + $50x2

LP Model Formulation – Minimization Example

Constraint Graph – Minimization

We make the following table from the given data

The objective is to maximize profit

Example 0.1.5 (Medicine) A Patient in a hospital is required to have at least 84 units of

Characteristics of Simplex Method

Example (Simplex Method)

Let x1 and x2 are the kinds of products A and B.

Steepest Ascent and Steepest Descent Methods

Where h is distance along the h axis

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