Ch. 3 Linear Programming-1
Ch. 3 Linear Programming-1
Linear programming: a mathematical and systematic technique for finding or planning the
best use of limited resources to achieve a given goal of maximization or minimization
under certain condition. This is the crucial problem facing most business and decision
makers at every level. It is an allocation model.
Linear programming: is a technique of constrained optimization. Constraints are anything
that affect goal achievement; in LP the major constraint is scarcity of resources.
Optimization is the best way of doing things. It is all about achieving efficiency and
effectiveness. The former refers to being economic, cost saving, avoiding wastage in the
use of resources, while the latter relates to goal achievement. The optimization may
involve maximizing profit, sales, market share and etc. or minimizing cost, time, distance,
space etc.
LPM: mathematical representation of linear programming problems.
LPP: problem (involving resource limitations) where one in tends to know amounts that
help to achieve objectives (max/min)
History
Historically, LPP evolved out of the need to solve problems involving resource allocation by
the U.S. Army during world War II. Among these who looked on such problems was
George Dantzig, who later gave a general formulation of LPP and offered method for
solving it called the simplex method. Since its introduction in 1940s, LP has gained ever
wider acceptance and application. Today airlines, brokerage houses, and oil companies
routinely construct large-scale LPPs involving thousands, even tens of thousands of
variables and constraints.
Components of LPM
1. Objective function: describes mathematically/quantitatively the firm's goal. It is criteria
by which all d/n variables are evaluated.
2. Decision Variables: those factors where a choice could be made. They are manipulated
and are controllable by the decision maker .e.g. Amounts: units sold, number of dollar
invested, number of ad's placed/.
3. Constraints: restrictions which limit the achievability /feasibility of a certain course of
action, it embodies scarce resources: Labor, Raw material, Machine time, Space/storage/,
legal requirement or other limits based on forecasts, customer orders, company policies
etc.
4. Parameters: fixed values that specify the impact that one unit of each decision variable
will have on the objective and on any constraint if pertains to as well as to the numerical
value of each constraint.
Assumptions Underlying LP
Generally, the problems that we may have to solve using linear programming techniques
are not handed down to us in a ready to solve format. The given information is to be
transformed into the form of equations and inequalities so that linear programming
techniques are applicable.
(It is confirmed that whatever produced can be sold.) Form the Linear programming
model for the following problem.
Required:
A. Formulate the LPM (show all the necessary steps required to form LPM).
B. Solve it using the graphic approach.
Determine the number of each type of microcomputers to be made in the
coming week in order for the company to maximize its profit.
What is the maximum profit?
At the maximum profit, which resources, if any, are not fully utilized?
C. Interpret your result. (2 points)
Answer
A. Formulate the LPM
Step 1: Problem definition
To determine the number of two types of microcomputers to be produced and sold per
week, so as to maximize the weekly profit given the resource limitations.
Step 2: Variable representation
Let X1 and X2 be the weekly quantities of type 1 and type 2 microcomputers assembled
respectively.
Find x and y intercepts for each equation to easily draw respective graphs
Example 2:
The Indoor Games Company manufactures two products namely: table tennis rackets and
chess sets. Each tennis racket yields a profit per unit of $2 and each chess set profit per
unit of $4. A tennis racket requires four hours of processing time in machine center I and
two hours at Machine center II. A chess set requires six hours at Machine center I, six
hours at Machine center II, and one hour at Machine center III. Machine center I has a
maximum of 120 hours of available capacity per day, while Machine center II has 72 hours
and Machine center III has 10 hours.
Required:
A. Formulate the LPM (show all the necessary steps required to form LPM).
B. Solve it using the graphic approach. (Show all the necessary steps clearly.)
Determine the number of each product to be made in the coming week in
order for the company to maximize its profit.
What is the maximum profit?
At the maximum profit, which resources, if any, are not fully utilized?
C. Interpret your result.
Problem Statement
Determine the optimal amount of the two products namely: table tennis racket and chess
sets to be produced and sold by Indoor Games Company to attain maximum profit given
limitations.
Let x1 be the amount of table tennis rackets to be produced and sold.
Let x2 be the amount of table tennis rackets to be produced and sold.
Z max.: 2x1+4x2
Suject to:
4x1+6x2< 120 hrs ( Processing time in center 1)
2x1+6x2<72 hrs (Processing time in center 2)
x2 < 10 hrs (Processing time in center 3)
x1,x2 > 0
1. 4x1+6x2=120 x1=0 x2=20 x1=30 x2=0
2. 2x1+6x2=72 x1=0 x2=12 x1=36 x2=0
3. X2=10
Evaluate corner points by the objective
Corner points 2X1+4X2=Profit
A (0,0) 2(0)+4(0)=0
B (30,0) 2(30)+4(0)=60
C (0,10) 2(0)+4(10)=40
D (6, 10) 2(6)+4(10)=52
E (24,4) 2(24)+4(4)=64
Points A, B, & C can be identified by observation; however, D & E are identified by
solving simultaneously their respective equations.
Region ACDEB is called feasible region
At point E (Graph for equation 1 and 2intersect)
4x1+6x2=120
2x1+6x2=72
2x1 = 48
X1=48/2 =24
2x1+6x2=72
2(24)+6x2=72
48+6x2=72
6x2=72-48=24
X2=24/6=4
Zmin.= 400x+300Y
subject to: x>4000 1
y>5000
x+y>10,000
x,y>0
Find x and y intercepts to draw graph
1 X=4000 2. Y=5000 3. X+Y=10,000 X=0 Y=10,000 & Y=0 X=10,000
At point A graphs for equations 1 & 3 intersect
X=4000; X+Y=10000 4000+Y=10000 Y=6000
At point B graphs for equations 2 & 3 intersect
Y=5000; X+Y=10000 X+5000=10000 X=5000
3 20
15 B
1
14 A
10
10 20 30 40 50 60
2 3
Corner Points
A= 1&3; Y=14; 5x1+10x2=150 Solution: X=2,Y=14 Z*=116 B=(0,15)
Z=120
The firm is advised to use 2 units of A and 14 units of B to attain a minimize its operating
cost to 116 birr; in doing so 18units of A will be unused while all of B is fully used; in
addition this mix will satisfy the weight requirement of the product to be produced.
Zmax.:500X1+600X2+1200X3 (Profit)
Subject to
2X1+4X2+6X3=160 (Platinum)
3X1+2X2+4X3=120 (Gold)
X1,X2,X3 ≥0 (non-negativity constraint)
Zmax.:500X1+600X2+1200X3+0S1+0S2
Subject to
2X1+4X2+6X3+1S1=160
3X1+2X2+4X3+1S2=120
X1,X2,X3,S1,S2>0
Step 2. Develop the initial feasible solution tableau
Enter the model parameters into the tableau as follows:
List decision variables (Xn) and Cj (coefficients) of the objective function across the
top of the tableau
List aijs of each constraint per row and column respectively in the body of the
tableau
Likewise list the corresponding RHSV one per row in the last quantity (Q)
column.
Variables to which the solution in the quantity (RHSV or Bi) column belong are
called Basic variables (BV/Basis); List each slack in the basis column one per row
with its coefficient in the objective function i.e. (0) one per row.
Note: Simplex begins with the Slack variables as basic variables, ìf all the signs in
constraint are ≤. We start with 0 solution to determine the first feasible
solution.
Compute values for row Zj by summing the product of Cj (coefficients of basic
variables) and Aij (row coefficients of the constraints).
Compute values for row C-Zj (net evaluation row): subtract Zj values from objective
functions coefficients (Cj)
Initial Feasible Solution Simplex Tableau
500 600 1200 0 0
BV Cj Q
X1 X2 X3 S1 S2
S1 0 2 4 6 1 0 160
S2 0 3 2 4 0 1 120
Zj 0 0 0 0 0
0
Cj-Zj 500 600 1200 0 0
Use elementary row operation to convert all the entries of the pivot column into 0
except the pivot point which is to be changed into unit (1). Use the same
operations to convert the other entries in each row of the new tableau.
Revise R2: i.e. row for S2 -4R1new+R2old=R2new
Cell S2X1 -4(1/3)+3=-4/3+3=5/3
Cell S2X2 -4(2/3)+2=-8/3+2=-2/3
Cell S2X3 -4(1)+ 4=0
Cell S2S1 -4(1/6)+0=-4/6=-2/3
Cell S2S2 -4(0)+1=1
Cell S2Q -4(80/3)+120=-320/3 + 120=40/3
Calculate the Zj and Cj-Zj values and go to step 3, if the solution is optimal
finish, if not repeat step 4 until you arrive at the optimal feasible solution.
2nd tableau
500 600 1200 0 0
BV Cj X1 X2 X3 S1 S2 Q Q/x1
X3 1200 1/3 2/3 1 1/6 0 80/3 80
S2 0 5/3 - 2/3 0 - 2/3 1 40/3 8 Pivot row
Zj 400 800 1200 200 0 32000
Cj-Zj 100 -200 0 -200 0
Pivot column
Pivot point
Note: All the entries for the basic variables consist of identity 1 & 0s, this is always true,
and so you can save your time by setting the entries of the basic variables into 1 &
0s
Go back to Step 3 & 4 Test optimality & if solution is not optimal; identify
entering and leaving variables
As the net evaluation row Cj-Zj row has positive value, solution is not optimal; thus to
improve the solution S2 will leave the Basic variables (BVs) and X1 will replace it.
Now revise the tableau that is not optimal by dividing the pivot row by the pivot point just
as in the previous case.
Station 1 Station2
Model A 2.5 3.0
Model B 1.8 1.6
Model C 2.0 2.2
Each work station has a daily working time of 7.5hours. The manager wants to obtain the
greatest possible profit during the next five working days. Model A yields a profit of Br.
8.25 per unit. Model B a profit of Br. 7.5 per unit and model C a profit of Br. 7.80 per unit.
Assume the firm can sell all it produces. During this time, it must fill outstanding orders for
at least 20 units of each model type.
Formulate the LPM:
Prob. def: Determine the number of 3 types of switching devices to be produced and sold
for the next 5 days (working) to as to maximize 5 days profit.
Let x1,x2,x3 be the number of model A, B, C switching devices to be produced and sold.
Summary
Zmax: 8.25x1+7.5X2+7.8X3
Subject to:
2.5x1+1.8x2+2.0x3 <450 min. Assembly time station 1
3.0x1+1.6x2+2.2x3 < 450 Assembly time station 2
x1≥20, x2≥20, x≥20 Model A, B, C order (demand)
x1,x2,x3≥0 non-negativity constraints
2. A dealer wishes to purchase certain number of fans and sewing machines. He has only
5760 birr to invest and has a space for at the most 20 items. A fan costs him 360 birr
and a sewing machine 240 birr. His expectation is that he can sell a fan at a profit of 22
birr and a sewing machine at a profit of 18 birr. Assuming that he can sell all the items
that the buys, how should he invest his money in order to maximize his profit.
Formulate the LPM (show all the necessary steps required to form LPM).
Solve the LPM using graph
o Determine the number of each product to be made in the coming week in
order for the company to maximize its profit.
o What is the maximum profit?
o At the maximum profit, which resources, if any, are not fully utilized?
Interpret result
Solution:
The dealer is advised to buy 8 fans and 12 sewing machines in order to maximize his
profit to 392 birr in doing so all resources will be fully utilized.
3. Two machines ( I and II) produce two grades of Tires, A and B. In one hour of
operations machine I produce 20 units of grade A and 10 units of grade B Tires, while
machine II produce 30 units of grade A and 40 units of grade B Tires. The machines
are required to meet a production schedule of at least 1400 units of grade A and 1200
units of grade B Tires. The cost of operating machine I is $50 per hour and the cost of
operating machine II is $80 per hour. if the objective is to minimize the cost of
operating the machines;
Solution: in order to Minimize costs of operating the Machines; M I Has to produce 40
tires; M II has to produce 20 tires; Z min = 3600
4. Attempt the question on page 76 of your module
Solution:
The company is advised to produce 24 units of push type mower and 40 units of self-
propelled mowers so as to realize a profit of Br. 4020. in doing so, the company would be
left with unused resource of engine which can be used for other purposes.