M.
TECH STRATEGY AND INNOVATION
BSI 7205: OPERATIONS AND RESEARCH TECHNIQUES
INDIVIDUAL ASSESSMENT 1: LINEAR PROGRAMMING MODELS
S/N NAME REG NUMBER
1. ISS-HOGAI SHAMU H240699Q
Question 1: Formulate a linear programming model for the single product company.
Pictorial Representation:
Figure 1: Pictorial Representation of the LP Model (Shamu, 2025)
Definition of Variables:
Ri : Number of single product produced using regular time in month i
Oi : Number of single product produced using over time in month i
Ii : Number of single product inventory carried over to month i + 1
Di : Demand from month i of production
And i Є {1, 2, 3, 4}
Decision Variables:
These are the variables that the decision maker wants to determine to get the best outcome.
Such variables should be quantifiable, controllable and non-negative.
Ri, Oi, and Ii are the variables we want to determine and optimize.
Objective Function:
This is a mathematical expression that defines the goal to be maximized or minimized. In our
case, we need to determine the best combination between the 3 decision variables that will
result to the minimum cost (z) incurred to meet the demand in the months in question.
[∑( )]
i.e: ( )
Constraints:
Restrictions to be satisfied by the linear programming model and they define the feasible
region where the optimal solution must be found.
Non-negative Constraints:
Ri, Oi, and Ii are the non-negative constraints,
Production Constraints:
For all i
For all i
Demand Constraints:
For all I, Given
That is:
Using Excel Solver:
To minimize the cost incurred in meeting the demand in the 4 months, the decision variables
have to be:
And the minimum cost (z) to meet the demand is:
