Quantitative Techniques
Linear Programming:
• Linear Programming (LPP) is a mathematical technique
• Optimize (maximizing or minimizing) a linear objective function
subject to a set of linear constraints.
• Maximize profit, production, or output.
• Minimize cost, waste, or time.
• It is widely used in business, economics, engineering, production,
transportation, and resource allocation.
Decision Variables:
• Decision variables are the unknowns in a Linear Programming Problem (LPP).
• They represent the choices we can control or decide (like how many units to
produce, how many resources to use, etc.).
• Usually represented by x1,x2,x3,…,xn
• Must be non-negative (xi≥) because negative production or negative resource
use doesn’t make sense in real life.
•Business (Production Planning):
x= number of product A produced
y= number of product B produced
•Transportation Problem:
xij= units shipped from warehouse I to destination j
Objective Function:
• Without an objective function, LPP would just be a set of inequalities
(constraints) with many possible solutions.
• If profit from product A = ₹5 per unit, profit from product B = ₹8 per
unit, then
• Z=5x+8y is the objective function (maximize profit).
• When we find feasible region (all possible solutions), there may be infinite
points.
• The objective function helps us compare these points and select the optimal
solution (best point).
Constrains:
• Constraints are the limitations or restrictions placed on the decision
variables in a linear programming problem.
• They are expressed as linear inequalities or equations.
• Constraints ensure solutions are practical and feasible.
• Less than or equal to ( ≤ ) → Resource limitations
Example: Material, time, or budget limit
• Greater than or equal to ( ≥ ) → Demand requirements
Example: At least 50 units must be produced
• Equal to ( = ) → Exact requirements
Example: Balance between supply and demand
Components:
Feasible Region
• The set of all points (solutions) that satisfy the constraints.
• Usually represented as a polygon in graphical LPP.
Optimal Solution
• The point in the feasible region that gives the best value of the objective
function (maximum or minimum).
Linear Programming Solution:
Graphical Method:
• Corner point Method
• Iso-Profit Method
Simplex Method:
• Standardized Method
• Big-M Method
• Two-Phase Method
Simplex Method:
Standardized Method:
• Only in case of Maximization
• Constrain less than equal to (<=)
3
Subject to;
Cb Xb Bi x1 x2 x3 S1 S2 S3 Cb Xb Bi x1 x2 x3 S1 S2 S3 Min
Ratio
0 S1 90 1 2 3 1 0 0
0 S1 90 1 2 3 1 0 0 45
0 S2 60 2 1 1 0 1 0
0 S2 60 2 1 1 0 1 0 60
0 S3 80 3 1 2 0 0 1
0 S3 80 3 1 2 0 0 1 80
Cj 3 4 1 0 0 0
Cj 3 4 1 0 0 0
Zj 0 0 0 0 0 0
Zj 0 0 0 0 0 0
Cj- 3 4 1 0 0 0
Zj Cj-Zj 3 4 1 0 0 0
Cb Xb Bi x1 x2 x3 S1 S2 S3 RR Cb Xb Bi x1 x2 x3 S1 S2 S3
4 x2 45 ½ 1 3/2 ½ 0 0 90 4 x2 40 0 1 5/3 2/3 -1/3 0
0 S2 15 3/2 0 -1/2 -1/2 1 0 10 3 x1 10 1 0 -1/3 -1/3 2/3 0
0 S3 35 5/2 0 1/2 -1/2 0 1 14 0 S3 10 0 -5/2 -1/3 1/3 -5/3 -3/2
Cj 3 4 1 0 0 0 Cj 3 4 1 0 0 0
Zj 2 4 6 2 0 0 Zj 3 4 17/3 5/3 2/3 0
Cj-Zj 1 0 -5 -2 0 0 Cj-Zj 0 0 -14/3 -5/3 -2/3 0
Z= 3*10+ 4*40 + 1*0= 190
Subject to;
Max M: Reduce Artificial Variables
Cb Xb Bi x₁ x₂ S₁ S₂ A₁ A₂ RR
0 S₁ 8 1 1 1 0 0 0 8
-M A₁ 12 6 4 0 -1 1 0 3
-M A₂ 20 5 8 0 0 0 1 5/2
Cⱼ 30 20 0 0 -M -M
Zj -11M -12M 0 M -M -M
Cⱼ – Zⱼ 30+11M 20+12M 0 0 0 0
Cb Xb Bi x₁ x₂ S₁ S₂ A₁ RR
0 S₁ 11/2 3/8 0 1 0 0 5.5*8/3=14.67
-M A₁ 2 3.5 (7/2) 0 0 -1 1 2/3.5 = 0.571
20 x2 2.5 (5/2) 5/8 1 0 0 0 2.5/ 5/8= 4
Cⱼ 30 20 0 0 -M
Zj 25/2-7M/2 20 0 M M
Cⱼ – Zⱼ 35/2+7M/2 0 0 -M 0
1, 2, 3, 4, 5, 6, 7, 8, 9, 10
Old value 11/2 3/8 0 1 0
New Values of key Row 4/7 1 0 0 -2/7
Key Column Element 3/8 3/8 3/8 3/8 3/8
Product (N*K) 3/14 3/8 0 0 -3/28
New Value ( Old value-Product) 74/14 0 0 1 3/28
Cb Xb Bi x₁ x₂ S₁ S₂ RR
0 S1 37/7 0 0 1 3/28 148/3
30 X1 4/7 1 0 0 -2/7 -2
20 X2 15/7 0 1 0 5/28 12
Cj 30 20 0 0
Zj 30 20 0 -20/28
0 0 0 20/28
Cb Xb Bi x₁ x₂ S₁ S₂
0 S1 4 0 0 2/5 0
30 X1 4 1 8/5 0 0
0 S2 12 0 28/5 0 1
Cj 30 20 0 0
Zj 30 48 0 0
X1=4, X2=0, Total Cost: 120
Total Cost: 1200
Min M: Add Artificial Variables
Transportation Problem:
• North-west Corner Method
• Least Cost Method
• VAM Method
From / To D E F Supply
A 6 4 1 50
B 3 8 7 40
C 4 4 2 60
Demand 20 95 35 150
W1 W2 W3
F1 4 6 8 25
F2 5 3 7 40
F3 6 4 5 35
F4 3 6 9 30
30 50 70
12 1 9
Ui
A
5 2 4 3
2 4 3 0
15
B -3
1
4 8 1 6
7 1 4 7 3
C
4 6 7 5 Vj 1 2 4 3
Duality:
A company makes products and . Profit is per unit of , and per unit of .
Two resources are available.
Subject to resource limits:
• Primal:
Subject to resource limits:
• Dual:
Let be the shadow prices of the two resources.
Subject to:
