2 LINEAR PROGRAMMING 

INTRODUCTION
Linear programming (LP, also called linear optimization) is a method to
achieve the best outcome (such as maximum profit or lowest cost) in
a mathematical model whose requirements are represented by linear
relationships. Linear programming is a special case of mathematical
programming (also known as mathematical optimization).
More formally, linear programming is a technique for the optimization of
a linear objective function, subject to linear equality and linear
inequality constraints. Its feasible region is a convex polytope, which is a set
defined as the intersection of finitely many half spaces, each of which is
defined by a linear inequality. Its objective function is a real-valued affine
(linear) function defined on this polyhedron. A linear
programming algorithm finds a point in the polytope where this function has
the smallest (or largest) value if such a point exists.
Linear programs are problems that can be expressed in canonical form as

where x represents the vector of variables (to be

determined), c and b are vectors of (known) coefficients, A is a

(known) matrix of coefficients, and   is the matrix transpose. The

expression to be maximized or minimized is called the objective
function (cTx in this case). The inequalities Ax ≤ b and x ≥ 0 are the
constraints which specify a convex polytope over which the objective
function is to be optimized. In this context, two vectors
are comparable when they have the same dimensions. If every entry in the
first is less-than or equal-to the corresponding entry in the second, then it
can be said that the first vector is less-than or equal-to the second vector.
Linear programming can be applied to various fields of study. It is widely
used in mathematics, and to a lesser extent in business, economics, and for
some engineering problems. Industries that use linear programming models
include transportation, energy, telecommunications, and manufacturing. It
 has proven useful in modelling diverse types of problems
in planning, routing, scheduling, assignment, and design.

Requirement of Linear Programme Problem (L.P.P)

The term linear indicates that the function to be maximized or minimized is
linear in nature and that the corresponding constraints be represented by a
system of linear equalities or linear equation involving the variable. Regardless
of the way one defines linear programming, certain basic requirements which
are given below are necessary before the technique can be employed for
optimization problems.

(1) Decision Variable and their Relationship:

The decision variables refer to candidates that are completing with one
another for sharing the given limited resources. These variables are usually
interrelated in terms of utilization of resources and need simultaneous
solutions. The relationship among these variables should be linear.

(2) Well-Defined Objective Function:

A linear programming problem must have a clearly- defined objective function
to optimize which may be either to maximize contribution by utilizing available
resources, or it may be to produce at the lowest possible cost by using a
limited amount of productive factors. It should be expressed as a linear
function of decision variables and can be represented in the following form.

Optimize (maximize or minimize) z = C1x1 + C2x2 +……………… + Cnxn

Where Z is the measure-of-performance variable. Which is a function of x 1, x2,
……xn.
The C1, C2……….. C4 are parameters that give the contribution of a unit of the
respective Variable x1, x2, ………………… xn to the measure-of-performance Z.

(3) Presence of Constraints or Restrictions:

There must be limitations or constraints on the use of limited resources which
are to be allocated among various competitive activities. These constraints
must be capable of being expressed as linear equalities or inequalities in terms
of decision variables. The solution of on LP model satisfy these constraints.

(4) Alternative Courses of Action:

 There must be alternative courses of action. For example, it must be possible
to make a selection between various combinations of the productive factors
such as men, machines, materials, market-etc.

(5) Non-Negative Restriction:
All decision variables must assume non-negative values as negative values of
physical quantities is an impossible situation.

In other words, x1 ≥ 0; x2 ≥ 0……….. xn ≥ 0

Assumptions of Linear programming

There are several assumptions on which the linear programming works, these
are:

1. Proportionality: The basic assumption underlying the linear programming is

that any change in the constraint inequalities will have the proportional change
in the objective function. This means, if product contributes Rs 20 towards the
profit, then the total contribution would be equal to 20x1, where x1 is the
number of units of the product.
 For example, if there are 5 units of the product, then the contribution would
be Rs 100 and in the case of 10 units, it would be Rs 200. Thus, if the output
(sales) is doubled, the profit would also be doubled.

2. Additivity: The assumption of additivity asserts that the total profit of the

objective function is determined by the sum of profit contributed by each
product separately. Similarly, the total amount of resources used is
determined by the sum of resources used by each product separately. This
implies, there is no interaction between the decision variables.

3. Continuity: Another assumption of linear programming is that the decision

variables are continuous. This means a combination of outputs can be used
with the fractional values along with the integer values.

For example, If 52/3 units of product A and 101/3 units of product B to be

produced in a week. In this case, the fractional amount of production will be
taken as a work-in-progress and the remaining production part is taken in the
following week. Therefore, a production of 17 units of product A and 31 units
of product B over a three-week period implies 52/3 units of product A and
101/3 units of product B per week.

4. Certainty: Another underlying assumption of linear programming is a certainty,

i.e. the parameters of objective function coefficients and the coefficients of
constraint inequalities is known with certainty. Such as profit per unit of
product, availability of material and labour per unit, requirement of material
and labour per unit are known and is given in the linear programming problem.

5. Finite Choices: This assumption implies that the decision maker has certain
choices, and the decision variables assume non-negative values. The non-
negative assumption is true in the sense, the output in the production problem
can not be negative. Thus, this assumption is considered feasible.

Thus, while solving for the linear programming problem, these assumptions
should be kept in mind such that the best alternative is chosen.

Applications of Linear programming

1. Devising of a production schedule that could satisfy future demands
(seasonal or otherwise) for the firm's product and at the same time minimize
production (including inventory) costs.
2. Choice of investment from a variety of shares and debentures so as to
maximize return on investment.
3. Allocation of a limited publicity budget on various heads in order to
maximize its effectiveness.
4. Selection of the product-mix to make the best use of available resources like
machine man-hours, etc. with a view to maximize profits.
5. Selecting the advertising mix that will maximize the benefit subject to the
total advertising budget, Linear Programming be effectively applied.
6. Determination of the distribution system that will minimize transportation
costs from several warehouses to various markets.
7. Designing, routing and assignment problems.
8. Manufacturing Problems. To find the number of items of each type that
should be manufactured so as to maximize the profit subject to production
restrictions imposed by limitations on the use of machinery and labour.
9. Transportation Problems. To find the least expensive way of transporting
shipments from the warehouses to customers.
10. Diet Problems. To determine the minimum requirement of nutrients
subject to availability of foods and their prices.
11. Blending Problems. To determine the optimum amount of several
constituents to be used in producing a set of products while determining the
optimum quantity of each product to produce.
12. Assembling Problems. To have the best combination of basic components
to produce goods according to certain specifications. 13. Production Problems.
To decide the production schedule to satisfy demand and minimize cost in face
of fluctuating rates and storage expenses.
14. Job Assigning Problems. To assign job to workers for maximum
effectiveness and optimum results subject to restrictions of wages and other
costs.
15. Trim-Loss Problems. To determine the best way to obtain a variety of small
rolls of paper from a standard width of roll that is kept in stock and, at the
same time, minimize wastage.