Modeling with
Linear
Programming
Chapter 2
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2-1
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 firms
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.
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2013 Pearson Education
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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
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LP Model Formulation
A Maximization Example (1 of 3)
Resource Requirements
Labor
Clay
Produ
(Hr./Unit (Lb./Unit
ct
)
)
Bowl
1
4
Mug
Profit
($/Unit)
40
50
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:
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LP Model Formulation
A Maximization Example (2 of 3)
Resource
Availability:
40 hrs of labor per day
120 lbs of clay
Decision
per day
Variables:
day
x1 = number of bowls to produce
x2 = number of mugs to produce per
Objective
Maximize Z = $40x1 + $50x2
Function: Where Z = profit per day
Resource
Constraints:
1x1 + 2x2 40 hours of labor
4x1 + 3x2 120 pounds of clay
Non-Negativity
x1 0; x2 0
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LP Model Formulation
A Maximization Example (3 of 3)
Complete Linear Programming Model:
Maximize Z = $40x1 + $50x2
subject to:
1x1 + 2x2 40
4x2 + 3x2 120
x1, x2 0
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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) = 70
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 (can be used with
three variables but only with great
difficulty).
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
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Education
analysis
2-12
Labor Constraint
Graphical Solution of Maximization
Model (2 of 12)
Maximize Z = $40x1 +
$50x2
subject to: 1x1 + 2x2
40
4x2 + 3x2
120
x1, x2 0
Figure 2.3 Graph of labor
constraint
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Labor Constraint Area
Graphical Solution of Maximization
Model (3 of 12)
Maximize Z = $40x1 +
$50x2
subject to: 1x1 + 2x2
40
4x2 + 3x2
120
x1, x2 0
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Figure 2.4 Labor constraint
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area
Clay Constraint Area
Graphical Solution of Maximization
Model (4 of 12)
Maximize Z = $40x1 +
$50x2
subject to: 1x1 + 2x2
40
4x2 + 3x2
120
x1, x2 0
Figure 2.5 The constraint area for
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2-15
clay
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
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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
4x2 + 3x2
120
x1, x2 0
Figure 2.7 The feasible
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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 Objective function line for
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Education
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Z=
$800
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 for
profits Z of $800,
$1,200, and $1,600
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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
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Pearson Education
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
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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
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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 =
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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 Solutions at points A, B, and
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LP Model Formulation Minimization
(1 of 7)
Two brands of fertilizer
available - Super-gro, Cropquick.
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
?
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LP Model Formulation
Minimization (2 of 7)
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 SuperGro
$3x2 = cost of bags of Crop-Quick
Model Constraints:
2x1 + 4x2 16 lb (nitrogen constraint)
4x1 + 3x2 24 lb (phosphate constraint)
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1, x2 0 (non-negativity constraint)
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Constraint Graph Minimization
(3 of 7)
Minimize Z = $6x1 + $3x2
subject to: 2x1 + 4x2 16
4x2 + 3x2 24
x1, x2 0
Figure 2.16 Constraint lines for
fertilizer
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Educationmodel
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Feasible Region Minimization
(4 of 7)
Minimize Z = $6x1 + $3x2
subject to: 2x1 + 4x2 16
4x2 + 3x2 24
x1, x2 0
Figure 2.17 Feasible solution
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area
Optimal Solution Point
Minimization (5 of 7)
Minimize Z = $6x1 + $3x2
subject to: 2x1 + 4x2 16
4x2 + 3x2 24
x1, x2 0
The optimal
solution of a
minimization
problem is at the
extreme point
closest to the
origin.
Figure 2.18 The optimal
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solution
point
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Surplus Variables Minimization (6
of 7)
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)
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Graphical Solutions Minimization
(7 of 7)
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 the 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
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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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Education
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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 (nonprobabilistic).
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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 beef
($5/lb).
Recipe requirements:
at least 500 pounds of
chicken
at least 200 pounds of
beef
Ratio of chicken to beef must be at least 2
to 1.
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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 beef in mixture
Step 2:
Formulate the objective function.
Minimize Z = $3x1 + $5x2
where Z = cost per 1,000-lb batch
$3x1 = cost of chicken
$5x
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2 = cost of beef
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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 beef
x1/x2 2/1 or x1 - 2x2 0
x 1, x 2 0
The Model: Minimize Z = $3x1 + 5x2
subject to: x1 + x2 = 1,000 lb
x1 50
x2 200
x1 - 2x2 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
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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
x 1, x 2 0
Step 3 and 4:
Determine the solution
points and optimal
solution
Figure 2.25 Optimal solution
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point
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