Elaborated Notes on Optimization and

Linear Programming
Introduction to Optimization and Linear Programming

Optimization refers to the process of finding the best solution to a problem, given a set of
constraints. It is commonly used in fields such as economics, operations research, and
engineering to maximize or minimize an objective, such as profit or cost. For example,
businesses often use optimization to determine the most cost-effective way to allocate
resources or to determine the optimal amount of production to maximize profit.

Linear Programming (LP) is a powerful mathematical technique for optimization. In LP,

both the objective function and the constraints are linear relationships. Linear
programming helps businesses, industries, and researchers solve optimization problems
efficiently.

Applications of Optimization

Optimization is used in various real-world situations, each involving different constraints

and objectives. Some of the most common applications of optimization are:

Resource Allocation: In manufacturing, companies aim to optimize how resources like labor
and materials are allocated to maximize production or minimize costs.
Supply Chain Management: Optimization can minimize transportation, storage, and logistics
costs while ensuring that products are delivered to customers on time.
Finance: In the financial world, optimization techniques can be used to maximize returns on
investments while minimizing risk.

These applications often require solving complex problems that involve finding the best
possible decision within a set of constraints.

What is Linear Programming?

Linear programming is a method used to solve optimization problems where both the
objective function (what you want to maximize or minimize) and the constraints (the limits
within which you need to operate) are linear. This means that the relationships between the
decision variables (the things you can control) are represented by straight lines or planes.
In an LP problem, you are typically trying to maximize or minimize an objective, such as
profit or cost, subject to certain constraints like resource availability, budget, or time limits.
Linear programming can be used to solve a wide range of problems in manufacturing,
transportation, finance, and many other fields.

Understanding Linear Programming Problem (LPP)

Consider a scenario where a chocolate manufacturing company produces two types of

chocolates: A and B. Each unit of chocolate A requires 1 unit of Milk and 3 units of Choco,
while each unit of chocolate B requires 1 unit of Milk and 2 units of Choco. The company has
a total of 5 units of Milk and 12 units of Choco available. Additionally, the company makes a
profit of Rs 6 per unit of chocolate A sold and Rs 5 per unit of chocolate B sold. The goal of
the company is to determine how many units of each type of chocolate it should produce to
maximize profit.

Step 1: Define the Decision Variables

Let the number of units of chocolate A produced be denoted by X, and the number of units
of chocolate B produced be denoted by Y.

Step 2: Formulate the Objective Function

The objective is to maximize the profit. The profit for each unit of chocolate A is Rs 6, and
for each unit of chocolate B is Rs 5. Therefore, the total profit Z can be written as:
Z = 6X + 5Y
Our objective is to maximize this profit.

Step 3: Define the Constraints

There are two key constraints: Milk and Choco availability.
The total amount of Milk used for both chocolates cannot exceed the 5 units available. Each
unit of both chocolates requires 1 unit of Milk, so the constraint is:
X+Y≤5
The total amount of Choco used for both chocolates cannot exceed the 12 units available.
Each unit of chocolate A requires 3 units of Choco, and each unit of chocolate B requires 2
units of Choco. Therefore, the constraint is:
3X + 2Y ≤ 12
Additionally, both X and Y must be non-negative, which is represented by:
X ≥ 0, Y ≥ 0

The above formulation is an example of how to translate a real-world problem into a

mathematical model that can be solved using linear programming.
Steps to Solve a Linear Programming Problem

To solve an LP problem, you typically follow a series of steps:

1. Identify Decision Variables: The first step is to clearly define what the decision
variables represent. In our chocolate problem, the decision variables are the number of
units of chocolate A and B to produce.
2. Construct the Objective Function: This is the function that you want to maximize or
minimize. In our case, the objective function is the total profit, Z = 6X + 5Y, that needs to be
maximized.
3. List the Constraints: The next step is to list all the constraints that limit or restrict the
decision variables, such as the availability of Milk and Choco in our example.
4. Non-Negativity Restrictions: Ensure that the decision variables are non-negative, as
producing negative quantities of a product is not feasible.
5. Solve the Problem: Once you have defined the objective function and constraints, you
can solve the problem using various methods, such as the Simplex Method or Graphical
Method.

Types of Linear Programming Problems

There are several common types of LP problems, each with its own unique focus:
1. Manufacturing Problems: These aim to optimize production decisions to maximize
profit or minimize cost, considering factors such as resource availability and production
rates.
2. Diet Problems: These involve minimizing the cost of a diet while meeting nutritional
requirements. A nutritionist may use LP to find the least expensive combination of foods
that meets a person’s dietary needs.
3. Transportation Problems: In these problems, the objective is to minimize
transportation costs while fulfilling supply and demand at various locations.
4. Optimal Assignment Problems: These problems involve efficiently assigning tasks or
resources. For instance, managers may use LP to assign employees to projects in a way that
minimizes time or cost.

Graphical Method of Solving Linear Programming Problems

The graphical method is one of the simplest ways to solve LP problems, especially when
there are only two decision variables. The key idea is to plot the constraints as lines on a
graph, identify the feasible region (the area where all constraints are satisfied), and then
find the optimal solution at one of the vertices of this region.
The steps to solving an LP problem using the graphical method are:

1. Plot the Constraints: First, you plot each of the constraints as straight lines on a graph.
2. Identify the Feasible Region: This is the area where all the constraints overlap. The
feasible region represents all the possible solutions that satisfy the constraints.
3. Locate the Vertices (Corner Points): The optimal solution will always be at one of the
vertices (corner points) of the feasible region.
4. Evaluate the Objective Function: Once you have the vertices, evaluate the objective
function at each vertex to determine which one gives the maximum or minimum value.
5. Verify the Solution: Finally, ensure that the solution satisfies all the constraints,
including the non-negativity conditions.

Example: Farmer’s Land Allocation Problem

A farmer has a 110-hectare piece of land and needs to decide how much land to allocate to
Wheat and Barley, given certain constraints such as cost, labor, and budget. The farmer’s
goal is to maximize profit.

The decision variables are:

X: Area planted with Wheat (in hectares)
Y: Area planted with Barley (in hectares)

The objective function is to maximize profit:

Z = 50X + 120Y
where 50 is the profit per hectare of Wheat, and 120 is the profit per hectare of Barley.

The constraints include:

Budget constraint: The farmer has a total budget of $10,000. The cost of producing Wheat
and Barley per hectare is $100 and $200, respectively. This gives the equation:
100X + 200Y ≤ 10,000
Labor constraint: The farmer has 1200 man-days available. The labor required for Wheat
and Barley per hectare is 10 and 30 man-days, respectively, resulting in:
10X + 30Y ≤ 1200
Land constraint: The farmer has 110 hectares available, so:
X + Y ≤ 110
Finally, the non-negativity constraints are X ≥ 0 and Y ≥ 0.

By solving this problem graphically, the optimal allocation of land would be to plant 60
hectares of Wheat and 20 hectares of Barley. This maximizes the farmer’s profit, which
would be $5400.