LINEAR PROGRAMMING

- - one of the simplest ways to perform optimization

- is a simple technique where we depict complex relationships through linear
functions and then find the optimum points.
Example of Linear Programming Problem:
 Linear programming is used for obtaining the most optimal solution
for a problem with given constraints.
 In linear programming, we formulate our real life problem into a
mathematical model.
 It involves an objective function, linear inequalities with subject to
constraints.
Common Terminologies Used in Linear
Programming:
 Decision Variables: The decision variables are the variables which
will decide my output. They represent my ultimate solution. To solve
any problem, we first need to identify the decision variables.
 Objective Function: It is defined as the objective of making
decisions.
 Constraints: The constraints are the restrictions or limitations on the
decision variables. They usually limit the value of the decision
variables.
 Non-negativity restriction: For all linear programs, the decision
variables should always take non-negative values. Which means the
values for decision variables should be greater than or equal to 0.
Process to formulate a Linear Programming
problem:
 Let us look at the steps of defining a Linear Programming problem generically:

1. Identify the decision variables

2. Write the objective function.
3. Mention the constraints.
4. Explicitly state the non-negativity restriction
A farmer has recently acquired an 110 hectares piece of land. He has decided to grow
Wheat and barley on that land. Due to the quality of the sun and the region’s excellent
climate, the entire production of Wheat and Barley can be sold.

He wants to know how to plant each variety in the 110 hectares, given the costs, net profits
and labor requirements according to the data shown below:

The farmer has a budget of US$10,000 and an availability of 1,200 man-days during the
planning horizon. Find the optimal solution and the optimal value.

Cost Net Profit

Variety Man-days/Hec
(Price/Hec) (Price/Hec)

Wheat 100 50 10

Barley 200 120 30

 Net
Cost Man-
Profit
Variety (Price/ days/H
(Price/
Step 1: Identify the decision variables. Hec) ec
Hec)
Let: X (in hectares) = total area of growing wheat
Wheat 100 50 10
Y (in hectares) = total area for growing barley
X and Y are my decision variables. Barley 200 120 30

Step 2: Write the objective function. Budget: US Dollars 10,000

Z = 50X + 120Y Man-days: 1200 days
Total Hectares: 110 hectares
Step 3: Writing the constraints.
100X + 200Y ≤ 10,000
10X + 30Y ≤ 1,200
X + Y ≤ 110
Step 4: The non-negativity restriction.
X ≥ 0, Y ≥ 0
A linear program can be solved by multiple methods. In this section, we
are going to look at the Graphical method for solving a linear program.
This method is used to solve a two variable linear program. If you have
only two decision variables, you should use the graphical method to find
the optimal solution.

A graphical method involves formulating a set of linear inequalities

subject to the constraints. Then the inequalities are plotted on a X-Y
plane. Once we have plotted all the inequalities on a graph the
intersecting region gives us a feasible region. The feasible region
explains what all values our model can take. And it also gives us the
optimal solution.
Solving a Linear Programming through Graphical method:

 Since we know that X, Y ≥ 0. We will consider only the first quadrant.

 To plot for the graph for the above equations, first I will simplify all the
equations.
100X + 200Y ≤ 10,000 can be simplified to X + 2Y ≤ 100.
10X + 30Y ≤ 1200 can be simplified to X + 3Y ≤ 120.
The third equation is in its simplified form, X + Y ≤ 110.
The optimal feasible solution is achieved at the point of intersection where the
budget & man-days constraints are active. This means the point at which the
equations X + 2Y ≤ 100 and X + 3Y ≤ 120 intersect gives us the optimal solution.

Budget equation: X + 2Y ≤ 100

Man-days equation: X + 3Y ≤ 120
The values for X and Y which gives the
optimal solution is at (60,20).

The maximum profit the company will gain is,

Z = 50 * (60) + 120 * (20)
= US$5400
Example #2:
A store has requested a manufacturer to produce pants and sports jackets.
For materials, the manufacturer has 750 m2 of cotton textile and 1,000 m2 of
polyester. Every pair of pants (1 unit) needs 1 m2 of cotton and 2 m2 of
polyester. Every jacket needs 1.5 m2 of cotton and 1 m2 of polyester.
The price of the pants is fixed at $50 and the jacket, $40.
What is the number of pants and jackets that the manufacturer must give to the
stores so that these items obtain a maximum sale?

Solution:
Step 1: Identify the decision variables
let: X = number of pants
Y = number of jackets
Step 2: Write the objective function.
let: Z = 50X + 40Y

Step 3: Write the constraints.

Pants Jackets Available

Cotton 1 1.5 750
Polyester 2 1 1000

X + 1.5Y ≤ 750 --------- 2x+3y ≤ 1500

2x + y ≤ 1000

Step 4: The non-negativity restriction

X ≥ 0, Y ≥ 0
Using Graphical Method:

Let’s graph the given constraints:

2x+3y ≤ 1500
2x + y ≤ 1000

The area of intersection of the solutions of the inequalities

would be the solution to the system of inequalities,
which is the set of feasible solutions.
Calculate the coordinates of the vertices from the compound
of feasible solutions.

2x + 3y = 1,500; x = 0 (0, 500)

2x + y = 1,000; y = 0 (500, 0)
2x + 3y =1,500; 2x + y = 1,000 (375, 250)

In the objective function, place each of the vertices that

were determined in the previous step.
Z= 50x + 40y
Z(0, 500) = 50·0 + 40·500 = $20,000
Z(500, 0) = 50·500 + 40·0 = $25,000
Z(375, 250) = 50·375 + 40·250 = $28,750 Maximum

The optimum solution is to make 375 pants and 250 jackets to

obtain a benefit of $28,750.