Dr.

Bishram

Chapter Topics

 Model Formulation
 A Maximization Model Example
 Graphical Solutions of Linear Programming Models
 A Minimization Model Example
 Irregular Types of Linear Programming Models
 Characteristics of Linear Programming Problems

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Linear Programming: An Overview

 Objectives of business decisions frequently involve

maximizing profit or minimizing costs.
 Linear programming uses linear algebraic
relationships to represent a firm’s decisions, given a
business objective, and resource constraints.
 Steps in application:
1. Identify problem as solvable by linear
programming.
2. Formulate a mathematical model of the
unstructured problem.
3. Solve the model.
4. Implementation

Model Components

Decision variables - mathematical symbols representing

levels of activity of a firm.
Objective function - a linear mathematical relationship
describing an objective of the firm, in terms of decision
variables - this function is to be maximized or minimized.
Constraints – requirements or restrictions placed on the
firm by the operating environment, stated in linear
relationships of the decision variables.
Parameters - numerical coefficients and constants used in
the objective function and constraints.

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Summary of Model Formulation Steps

Step 1 : Clearly define the decision variables

Step 2 : Construct the objective function

Step 3 : Formulate the constraints

LP Model Formulation
A Maximization Example (1 of 4)

Product mix problem - Beaver Creek Pottery Company

How many bowls and mugs should be produced to maximize
profits given labor and materials constraints?
Product resource requirements and unit profit:
Resource Requirements

Labor Clay Profit

Product
(Hr./Unit) (Kg./Unit) ($/Unit)

Bowl 1 4 40
Mug 2 3 50

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LP Model Formulation
A Maximization Example (2 of 4)

LP Model Formulation
A Maximization Example (3 of 4)
Resource 40 hrs of labor per day
Availability: 120 lbs of clay
Decision x1 = number of bowls to produce per day
Variables: x2 = number of mugs to produce per day
Objective Maximize Z = $40x1 + $50x2
Function: Where Z = profit per day
Resource 1x1 + 2x2 ≤ 40 hours of labor
Constraints: 4x1 + 3x2 ≤ 120 pounds of clay
Non-Negativity x1 ≥ 0; x2 ≥ 0
Constraints:

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LP Model Formulation
A Maximization Example (4 of 4)

Complete Linear Programming Model:

Maximize Z = $40x1 + $50x2

subject to: 1x1 + 2x2 ≤ 40

4x1 + 3x2 ≤ 120
x1, x2 ≥ 0

Feasible Solutions

A feasible solution does not violate any of the

constraints:

Example: x1 = 5 bowls
x2 = 10 mugs
Z = $40x1 + $50x2 = $700

Labor constraint check: 1(5) + 2(10) = 25 < 40 hours

Clay constraint check: 4(5) + 3(10) = 50 < 120 pounds

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Infeasible Solutions

An infeasible solution violates at least one of the

constraints:

Example: x1 = 10 bowls
x2 = 20 mugs
Z = $40x1 + $50x2 = $1400

Labor constraint check: 1(10) + 2(20) = 50 > 40 hours

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Graphical Solution of LP Models

Graphical solution is limited to linear programming

models containing only two decision variables

Graphical methods provide visualization of how a

solution for a linear programming problem is obtained.

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Coordinate Axes
Graphical Solution of Maximization Model (1 of 12)

X2 is mugs

Maximize Z = $40x1 + $50x2

subject to: 1x1 + 2x2 ≤ 40
4x2 + 3x2 ≤ 120
x1, x2 ≥ 0

X1 is bowls
Figure 2.2 Coordinates for Graphical
Analysis

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Both Constraints
Graphical Solution of Maximization Model (5 of 12)

Maximize Z = $40x1 + $50x2

subject to: 1x1 + 2x2 ≤ 40
4x2 + 3x2 ≤ 120
x1, x2 ≥ 0

Figure 2.6 Graph of Both Model

Constraints

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Feasible Solution Area
Graphical Solution of Maximization Model (6 of 12)

Maximize Z = $40x1 + $50x2

subject to: 1x1 + 2x2 ≤ 40
4x1 + 3x2 ≤ 120
x1, x2 ≥ 0

Figure 2.7 Feasible Solution Area

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Objective Function Solution = $800

Graphical Solution of Maximization Model (7 of 12)

Maximize Z = $40x1 + $50x2

subject to: 1x1 + 2x2 ≤ 40
4x2 + 3x2 ≤ 120
x1, x2 ≥ 0

Figure 2.8 Objection Function Line for Z =

$800

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Alternative Objective Function Solution Lines
Graphical Solution of Maximization Model (8 of 12)

Maximize Z = $40x1 + $50x2

subject to: 1x1 + 2x2 ≤ 40
4x2 + 3x2 ≤ 120
x1, x2 ≥ 0

Figure 2.9 Alternative Objective Function

Lines

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Optimal Solution
Graphical Solution of Maximization Model (9 of 12)

Maximize Z = $40x1 + $50x2

subject to: 1x1 + 2x2 ≤ 40
4x2 + 3x2 ≤ 120
x1, x2 ≥ 0

Figure 2.10 Identification of Optimal Solution

Point

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Optimal Solution Coordinates
Graphical Solution of Maximization Model (10 of 12)

Maximize Z = $40x1 + $50x2

subject to: 1x1 + 2x2 ≤ 40
4x2 + 3x2 ≤ 120
x1, x2 ≥ 0

Figure 2.11 Optimal Solution

Coordinates
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Extreme (Corner) Point Solutions

Graphical Solution of Maximization Model (11 of 12)

Maximize Z = $40x1 + $50x2

subject to: 1x1 + 2x2 ≤ 40
4x2 + 3x2 ≤ 120
x1, x2 ≥ 0

Figure 2.12 Solutions at All Corner

Points

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Optimal Solution for New Objective Function
Graphical Solution of Maximization Model (12 of 12)

Maximize Z = $70x1 + $20x2

subject to: 1x1 + 2x2 ≤ 40
4x2 + 3x2 ≤ 120
x1, x2 ≥ 0

Figure 2.13 Optimal Solution with Z = 70x1 +

20x2
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Slack Variables

 Standard form requires that all constraints be in the

form of equations (equalities).
 A slack variable is added to a ≤ constraint (weak
inequality) to convert it to an equation (=).
 A slack variable typically represents an unused
resource.
 A slack variable contributes nothing to the
objective function value.

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Linear Programming Model: Standard Form

Max Z = 40x1 + 50x2 + s1 + s2

subject to:1x1 + 2x2 + s1 = 40
4x2 + 3x2 + s2 = 120
x1, x2, s1, s2 ≥ 0
Where:
x1 = number of bowls
x2 = number of mugs
s1, s2 are slack variables

Figure 2.14 Solution Points A, B, and C with

Slack
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LP Model Formulation – Minimization (1 of 8)

 Two brands of fertilizer available - Super-gro, Crop-quick.

 Field requires at least 16 pounds of nitrogen and 24 pounds of
phosphate.
 Super-gro costs $6 per bag, Crop-quick $3 per bag.
 Problem: How much of each brand to purchase to minimize
total cost of fertilizer given following data ?
Chemical Contribution

Nitrogen Phosphate
Brand
(lb/bag) (lb/bag)
Super-gro 2 4
Crop-quick 4 3

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LP Model Formulation – Minimization (2 of 8)

Figure 2.15 Fertilizing

farmer’s field

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LP Model Formulation – Minimization (3 of 8)

Decision Variables:
x1 = bags of Super-gro
x2 = bags of Crop-quick

The Objective Function:

Minimize Z = $6x1 + 3x2
Where:$6x1 = cost of bags of Super-Gro
$3x2 = cost of bags of Crop-Quick

Model Constraints:
2x1 + 4x2 ≥ 16 lb (nitrogen constraint)
4x1 + 3x2 ≥ 24 lb (phosphate constraint)
x1, x2 ≥ 0 (non-negativity constraint)

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Constraint Graph – Minimization (4 of 8)

Minimize Z = $6x1 + $3x2

subject to: 2x1 + 4x2 ≥ 16
4x2 + 3x2 ≥ 24
x1, x2 ≥ 0

Figure 2.16 Graph of Both Model

Constraints

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Feasible Region– Minimization (5 of 8)

Minimize Z = $6x1 + $3x2

subject to: 2x1 + 4x2 ≥ 16
4x2 + 3x2 ≥ 24
x1, x2 ≥ 0

Figure 2.17 Feasible Solution Area

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Optimal Solution Point – Minimization (6 of 8)

Minimize Z = $6x1 + $3x2

subject to: 2x1 + 4x2 ≥ 16
4x2 + 3x2 ≥ 24
x1, x2 ≥ 0

Figure 2.18 Optimum Solution

Point

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Surplus Variables – Minimization (7 of 8)

 A surplus variable is subtracted from a ≥

constraint to convert it to an equation (=).
 A surplus variable represents an excess above a
constraint requirement level.
 A surplus variable contributes nothing to the
calculated value of the objective function.
 Subtracting surplus variables in the farmer problem
constraints:
2x1 + 4x2 - s1 = 16 (nitrogen)
4x1 + 3x2 - s2 = 24 (phosphate)

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Graphical Solutions – Minimization (8 of 8)

Minimize Z = $6x1 + $3x2 + 0s1 + 0s2

subject to: 2x1 + 4x2 – s1 = 16
4x2 + 3x2 – s2 = 24
x1, x2, s1, s2 ≥ 0

Figure 2.19 Graph of Fertilizer

Example

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Irregular Types of Linear Programming Problems

For some linear programming models, the general

rules do not apply.

Special types of problems include those with:

 Multiple optimal solutions
 Infeasible solutions
 Unbounded solutions

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Multiple Optimal Solutions Beaver Creek Pottery

The objective function is

parallel to a constraint line.
Maximize Z=$40x1 + 30x2
subject to: 1x1 + 2x2 ≤ 40
4x2 + 3x2 ≤ 120
x1, x2 ≥ 0
Where:
x1 = number of bowls
x2 = number of mugs

Figure 2.20 Example with Multiple Optimal

Solutions

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An Infeasible Problem

Every possible solution

violates at least one
constraint:
Maximize Z = 5x1 + 3x2
subject to: 4x1 + 2x2 ≤ 8
x1 ≥ 4
x2 ≥ 6
x1, x2 ≥ 0

Figure 2.21 Graph of an Infeasible Problem

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An Unbounded Problem

Value of the objective

function increases indefinitely:
Maximize Z = 4x1 + 2x2
subject to: x1 ≥ 4
x2 ≤ 2
x1, x2 ≥ 0

Figure 2.22 Graph of an Unbounded Problem

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Characteristics of Linear Programming Problems

A decision amongst alternative courses of action is

required.
The decision is represented in the model by decision
variables.
The problem encompasses a goal, expressed as an
objective function, that the decision maker wants to
achieve.
Restrictions (represented by constraints) exist that limit
the extent of achievement of the objective.
The objective and constraints must be definable by linear
mathematical functional relationships.

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Properties of Linear Programming Models

Proportionality - The rate of change (slope) of the

objective function and constraint equations is constant.
Additivity - Terms in the objective function and constraint
equations must be additive.
Divisibility -Decision variables can take on any fractional
value and are therefore continuous as opposed to integer
in nature.
Certainty - Values of all the model parameters are
assumed to be known with certainty (non-probabilistic).

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Problem Statement
Example Problem No. 1 (1 of 3)

■ Hot dog mixture in 1000-pound batches.

■ Two ingredients, chicken ($3/lb) and meat ($5/lb).
■ Recipe requirements:
at least 500 pounds of “chicken”
at least 200 pounds of “meat”
■ Ratio of chicken to meat must be at least 2 to 1.
■ Determine optimal mixture of ingredients that will
minimize costs.

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Solution
Example Problem No. 1 (2 of 3)
Step 1:
Identify decision variables.
x1 = lb of chicken in mixture
x2 = lb of meat in mixture
Step 2:
Formulate the objective function.
Minimize Z = $3x1 + $5x2
where Z = cost per 1,000-lb batch
$3x1 = cost of chicken
$5x2 = cost of meat

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Solution
Example Problem No. 1 (3 of 3)

Step 3:
Establish Model Constraints
x1 + x2 = 1,000 lb
x1 ≥ 500 lb of chicken
x2 ≥ 200 lb of meat
x1/x2 ≥ 2/1 or x1 - 2x2 ≥ 0
x1, x2 ≥ 0
The Model: Minimize Z = $3x1 + 5x2
subject to: x1 + x2 = 1,000 lb
x1 ≥ 500
x2 ≥ 200
x1 - 2x2 ≥ 0
x1,x2 ≥ 0

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Example Problem No. 2 (1 of 3)

Solve the following model

graphically:
Maximize Z = 4x1 + 5x2
subject to: x1 + 2x2 ≤ 10
6x1 + 6x2 ≤ 36
x1 ≤ 4
x1, x2 ≥ 0

Step 1: Plot the constraints

as equations

Figure 2.23 Constraint Equations

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Example Problem No. 2 (2 of 3)

Maximize Z = 4x1 + 5x2

subject to: x1 + 2x2 ≤ 10
6x1 + 6x2 ≤ 36
x1 ≤ 4
x1, x2 ≥ 0
Step 2: Determine the feasible
solution space

Figure 2.24 Feasible Solution Space and Extreme

Points

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Example Problem No. 2 (3 of 3)

Maximize Z = 4x1 + 5x2

subject to: x1 + 2x2 ≤ 10
6x1 + 6x2 ≤ 36
x1 ≤ 4
x1, x2 ≥ 0
Step 3 and 4: Determine the
solution points and optimal
solution

Figure 2.25 Optimal Solution Point

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Thank You

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