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Operations Management: William J. Stevenson

Linear Programming

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737 views26 pages

Operations Management: William J. Stevenson

Linear Programming

Uploaded by

aprian
Copyright
© Attribution Non-Commercial (BY-NC)
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Download as ppt, pdf, or txt
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6s-1

Linear Programming

Operations Management

William J. Stevenson

8th edition

6s-2

Linear Programming

CHAPTER

6s

Linear Programming

McGraw-Hill/Irwin

Operations Management, Eighth Edition, by William J. Stevenson Copyright 2005 by The McGraw-Hill Companies, Inc. All rights reserved.

6s-3

Linear Programming

Linear Programming

Used to obtain optimal solutions to problems that involve restrictions or limitations, such as:

Materials Budgets Labor Machine time

6s-4

Linear Programming

Linear Programming

Linear programming (LP) techniques consist of a sequence of steps that will lead to an optimal solution to problems, in cases where an optimum exists

6s-5

Linear Programming

Linear Programming Model

Objective: the goal of an LP model is maximization or


minimization

Decision variables: amounts of either inputs or


outputs

Feasible solution space: the set of all feasible


combinations of decision variables as defined by the constraints

Constraints: limitations that restrict the available


alternatives

Parameters: numerical values

6s-6

Linear Programming

Linear Programming Assumptions

Linearity: the impact of decision variables is


linear in constraints and objective function

Divisibility: noninteger values of decision


variables are acceptable

Certainty: values of parameters are known and


constant

Nonnegativity: negative values of decision


variables are unacceptable

6s-7

Linear Programming

Graphical Linear Programming


Set up objective function and constraints in mathematical format Plot the constraints

1.

2.

3.
4. 5.

Identify the feasible solution space


Plot the objective function

Determine the optimum solution

6s-8

Linear Programming

Linear Programming Example

Objective - profit
Maximize Z=60X1 + 50X2

Subject to
Assembly 4X1 + 10X2 <= 100 hours Inspection 2X1 + 1X2 <= 22 hours Storage 3X1 + 3X2 <= 39 cubic feet X1, X2 >= 0

6s-9

Linear Programming

Linear Programming Example


Assembly Constraint 4X1 +10X2 = 100
12 10 8 6 4 2 0

Product X2

10

12

14

16

18

20

22

Product X1

24

6s-10 Linear Programming

Linear Programming Example


Add Inspection Constraint 2X1 + 1X2 = 22
25

Product X2

20 15 10 5 0

10

12

14

16

18

20

22

Product X1

24

6s-11 Linear Programming

Linear Programming Example


Add Storage Constraint 3X1 + 3X2 = 39
25

Inspection Storage Assembly

Product X2

20 15 10 5 0

10

12

14

16

18

20

22

Feasible solution space

Product X1

24

6s-12 Linear Programming

Linear Programming Example


Add Profit Lines
25

Product X2

20 15 10 5 0

Z=900

10

12

14

16

18

20

22

Z=300

Z=600

Product X1

24

6s-13 Linear Programming

Solution

The intersection of inspection and storage Solve two equations in two unknowns
2X1 + 1X2 = 22 3X1 + 3X2 = 39 X1 = 9 X2 = 4 Z = $740

6s-14 Linear Programming

Constraints

Redundant constraint: a constraint that does


not form a unique boundary of the feasible solution space

Binding constraint: a constraint that forms the


optimal corner point of the feasible solution space

6s-15 Linear Programming

Slack and Surplus

Surplus: when the optimal values of decision


variables are substituted into a greater than or equal to constraint and the resulting value exceeds the right side value

Slack: when the optimal values of decision


variables are substituted into a less than or equal to constraint and the resulting value is less than the right side value

6s-16 Linear Programming

Simplex Method

Simplex:

a linear-programming algorithm that can solve problems having more than two decision variables

6s-17 Linear Programming

MS Excel Worksheet for Microcomputer Problem

Figure 6S.15

6s-18 Linear Programming

MS Excel Worksheet Solution

Figure 6S.17

6s-19 Linear Programming

Sensitivity Analysis

Range of optimality: the range of values for


which the solution quantities of the decision variables remains the same

Range of feasibility: the range of values for


the fight-hand side of a constraint over which the shadow price remains the same

Shadow prices: negative values indicating


how much a one-unit decrease in the original amount of a constraint would decrease the final value of the objective function

6s-20 Linear Programming

CHAPTER

Additional PowerPoint slides contributed by Geoff Willis, University of Central Oklahoma.

6s-21 Linear Programming

Linear Programming in Excel - Part 1


One of Excels useful features is the ability to solve linear programming problems (especially those beyond our graphical abilities). The feature is invoked by creating a spreadsheet containing the objective function and constraints, selecting Tools from the main menu, and Solver from the submenu

6s-22 Linear Programming

Linear Programming in Excel - Part 2


Corn (bushels) Sugar (pounds) Jugs Hours White Lightning 2 3 1 3 12 10 Rotgut 1 2 1 2 8 20 =C60*$C$52+D60*$D$52 =C61*$C$52+D61*$D$52 =C62*$C$52+D62*$D$52 =C63*$C$52+D63*$D$52 =C65*C64+D65*D64 <= <= <= <= Profit 40 70 50 72

Here is an Excel version of the moonshine problem


Corn (bushels) Sugar (pounds) Jugs Hours White Lightning Rotgut 2 1 3 2 1 1 3 2 $12.00 $8.00 10 20 40 70 30 70 <= <= <= <= 40 70 50 72

$280.00 Profit

The top view shows formulas and the bottom view shows initial calculations.

6s-23 Linear Programming

Linear Programming in Excel - Part 3


Once the basic set of equations has been entered, launch Solver and fill in the dialog boxes with references to your sheet. Target cell - The objective function value (E52) Equal to - Choose max or min based on the problem By changing cells - The decision variables (C52:D52) Subject to the constraints - Add all constraints one at a time by referencing their function values (e.g., the amount of corn used, E47 must be less than the amount of corn on hand, G47) Once all constraints have been entered, choose Options and check the boxes for Assume Linear Model and Assume Non-Negative. Finally, choose Solve and wait for Excel to work its magic

6s-24 Linear Programming

Solver Output Reports Part 1

Answer Report - contains the basic answer to the problem and reveals which constraints had an impact on your situation. Sensitivity Report - tells you reduced costs and shadow prices Limits Report - dont bother asking for this one. We wont use its information.

6s-25 Linear Programming

Solver Output Reports Part 2

Microsoft Excel 8.0e Answer Report The value of the Worksheet: [P/OM.xls]Sheet1 objective function at the Report Created: 7/28/2000 11:03:04 AM optimal solution Target Cell (Max) Cell Name Original Value Final Value The optimal values $E$52 Profit $20.00 $280.00 of the decision Adjustable Cells variables Cell Name Original Value Final Value $C$52 White Lightning 1 10 $D$52 Rotgut 1 20 Constraints Cell Name Cell Value Formula Status Slack $E$47 Corn 40 $E$47<=$F$47 Binding 0 $E$48 Sugar 70 $E$48<=$F$48 Binding 0 $E$49 Jugs 30 $E$49<=$F$49 Not Binding 20 $E$50 Hours 70 $E$50<=$F$50 Not Binding 2 A binding constraint is one that limits the value our objective function can assume. We use up all of our corn and sugar (we have no slack).

If a constraint is not binding, then we have some left over (slack) when we implement the optimal solution. We have 20 extra jugs and 2 hours to spare.

6s-26 Linear Programming

Solver Output Reports Part 3

Microsoft Excel 8.0e Sensitivity Report Worksheet: [P/OM.xls]Sheet1 Increases or decreases within these ranges will result in the same Report Created: 7/28/2000 11:03:05 AM product mix (but a different objective function value). Adjustable Cells Final Reduced Objective Allowable Allowable Cell Name Value Cost Coefficient Increase Decrease $C$52 White 10 0 12 4 0 $D$52 Rotgut 20 0 8 0 2 Constraints

Cell $E$47 $E$48 $E$49 $E$50

Name Corn Sugar Jugs Hours

Final Value 40 70 30 70

Shadow Price 4 -

Constraint R.H. Side 40 70 50 72

Allowable Increase 6.67 2 1E+30 1E+30

Allowable Decrease 5 10 20 2

A one unit decrease in the original amount of sugar available will decrease our profit by this amount Extra amount of resource needed for a binding constraint to become non-binding. Note that this doesnt apply to nonbinding constraints, hence the huge amounts indicated.

Amount of resource to be taken away for a non-binding constraint to become binding, or a binding constraint to become more so.

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