UNIT 2:

INTRODUCTION TO LINEAR PROGRAMMING

2.0 OBJECTIVES AND AIMS

At the end of this chapter students will be able to apply the knowledge of linear programming to
solve managerial problems; they will be able to use linear programming models to solve
managerial problems having quantitative application.
2.1 INTRODUCTION
Linear programming- is an optimization method which shows how to allocate scarce resources in
the best possible way subject to more than one limiting condition expressed in the form of
inequalities and /or equations. It

- enables users to find optional solution to certain problems in which the solution must
satisfy a given set of requirements or constraints.
- Optimization in linear programming implies either maximization (max) Profit, revenue,
We can’t
max/min two
quantities in one
sales, market share or minimization (min) Cost, time, distance, or a certain objective
model.
function.
- Involves linearly related multi-variety functions i.e. functions with more than one
independent variables.
- The goal in linear programming is to find the best solution given the constraints imposed
by the problem, hence the term constrained optimization.

2.2 LINEAR PROGRAMMING MODELS

LP models are mathematical representation of LP problems. Some models have a specialized format
where as others have a more generalized format. Despite this, LPMs have certain characteristics in
common knowledge of these characteristics enables us to recognize problems that are amenable to a
solution using LP models and to correctly formulate an LP model. The characteristics can be grouped into
two categories: Components and assumptions. The components relate to the structure of a model, where
as the assumptions describe the conditions under which the model is valid.
Components Assumptions

1. Objective function 1. Linearity

2. Decision variables Model 2. Divisibility
Model
3. Constraints Structure 3. Certainty
4. Parameters and Right. 4. Non-negativity Validity

Hand Side Values

2.2.1 Components of LP Model

a) The Objective function: is the mathematical/ quantitative expression of the objective of
the company/ model. The objective in problem solving is the criterion by which all
decisions are evaluated. In LPMs a single quantifiable objective must be specified by the
decision maker. For example, the objective might relate to profits, or costs or market
share, best to only one of these. Moreover, because we are dealing with optimization, the
objective will be either maximization or minimization, but not both at a time
b) The Decision Variables: represent unknown quantities to be resolved for. These decision
variables may represent such things as the:
- number of units of different products to be sold
- the # of dollars to invest in various projects
- the # of ads to place with different media
Since the decision maker has freedom of choice among actions, these decision variables are
controllable variables.

c) The constraints: are restrictions which define or limit the attainability (achievability)
feasibility of a proposed course of action. They limit the degree to which the objective
can be pursued.
A typical restriction embodies scarce resources (such as labor supply, RMs, production capacity,
machine time, storage space), legal or contractual requirements (leg. Product standards, work
standards), or they may reflect other limits based on forecasts, customer orders, company
policies etc.
 d) Parameters- are fixed values that specify the impact that one unit of each decision
variable will have on the objective and on any constraint it pertains to as well as to the
numerical value of each constraint.
The components are the building blocks of an LP model. We can better understand their meaning
by examining a simple LP model as follows.

Example:
Maximize:
Maximize: 4X1 + 7X2 + 5X3 (profit)… objective function subject to
2X1 + 3X2 + 6X3 ¿ 300 labor hrs
System
5X1 + 4X3 ¿ 200 raw mat.
3X1 + 5X2 + 2X3 ¿ 360 Constraints

X1 = 30 Individual
X1 – qty of product 1 X2 ¿ 40
Decision
Variable

Constraints
X2 qty of product 2 X1, X2, X3 ¿ 0 Non negativity constructs
s

X3 qty of product 3

System constraints- involve more than one decision variables

Individual constraint- involve only one decision variable.
None-negativity constrains- specify that no variable will be allowed to take on a negative value.
The non negativity constraints typically apply in an LP model, whether they are explicitly stated
or not.

2.2.2 Assumption of LP models

a) Linearity
The linearity requirement is that each decision variable has a linear impact on the objective
function and in each constraint in which it appears. Taking the above example, producing one
more unit of products add br 4 to the total profit. This is true over the entire range of possible
values of x1. The same applies (true) to each of the constraints.

b) Divisibility: The divisibility requirement pertains to potential values of decision variables. If

is assumed that non-integer values are acceptable. For example: 3.5 TV sets/ hr would be
acceptable 7TV sets/ 2hr.
c) Certainty: The parameters are known and constant. The certainty requirement involves two
aspects of LP models. The constraint equations do not change.
(1) With respect to model parameters (i.e. the numerical values) –If is assumed that these
values are known and constant. Eg. In the above example each unit of product 1 requires 2
labor hours is known and remain constant, and also the 300 labor available is deemed to be
known and constant.
(2) All the relevant constraints identified and represented in the model are as they are.

d) Non-negativity- The non-negativity constraint is that negative values of variables are

unrealistic and, therefore, will not be considered in any potential solutions, only positive values
and zero will be allowed.

2.3 FORMULATING LP MODELS

Once a problem has been defined, the attention of the analyst shifts to formulating a model. Just
as it is important to carefully formulate the model that will be used to solve the problem. If the
LP model is ill formulated, ill-structured, it can easily lend to poor decisions.

Formulating linear programming models involves the following steps:

1) Define the problem/ problems definition: to determine the no. of type 1 and type 2
products to be produced per month so as to maximize the monetary profit given the
restriction.
2) Identity the decision variables or represent unknown quantities.
* Let X1 and X2 be the monthly quantities of type 1 and type 2 products.
3) Determine the objective function: Once the variables have been identified, the objective
function can be specified. It is necessary to decide if the problem is a maximization or a
minimization problem and the coefficients of each decision variable.

4) Identify the constraints

- system constraints- more than one variable
- individual constraints- one variable
- non-negativity constraints.

Q(1) Check Your Progress Question

1. A firm that assembles computers computer equipment is about to start production of two new
micro computers. Each type of microcomputer will require assembly time, inspection time, and
storage space. The amount of each of three resources that can be devoted to the production of
micro computers is limited. The manager. Of the firm would like to determine the quantity of
each micro computer to produce in order to maximize the profit generated by sales of these
micro computers.

Additional information
In order to develop a suitable model of the problem, the manager has met with the design and
manufacturing personnel. As a result of these meetings, the manager has obtained the following
information:

Type 1 Type 2
Profit per unit $ 60 $ 50
Assembly time per unit 4hrs 10hrs
Inspection time per unit 2hrs 1hr
Storage space per unit 3 cubic ft 3 cubic ft

The manager also has acquired information on the available company resources. These (weekly)
amounts are:
Resource Resource available
Assembly time 100hrs
Inspection time 22hrs
Storage space 39cubic feet

The manager has also met with the firms marketing manager and learned that demand for the
micro computers was such that what ever combination of these two types of micro computers is
produced, all of the out put can be sold.

Answer for the above check your progress question

Step 1: Problem definition

 - To determine the no. of two types of microcomputers to be produced (and sold) per week
so as to maximize the weekly profit given the restrictions.
Step 2: Variable representation
- Let X1 and X2 be the weekly quantities of type 1 and type 2 microcomputers respectively.
Step 3: Develop the objective function
Maximize or Z max = 60X1 + 50X2

Step 4: Constraint iden tification

 System constraints: 4X1 + 10X2 ¿ 100hrs Assembly
2X1 + X2 ¿ 22hrs Inspective
3X1 + 3X2 ¿ 39 cub Feet Storage
 Individual constraints ….No
 Non-negativity constraint ….X1, X2 ¿ 0

In summary, the mathematical model for the microcomputer problem is:

Z max = 60X1 + 50X2
Subject to
4X1 + 10X2 ¿ 100
2X1 + X2 ¿ 22
3X1 + 3X2 ¿ 39
X1, X2 ¿ 0
SOLUTION APPROACHES TO LINEAR PROGRAMMING PROBLEMS

There are too approaches to solve linear programming problems.

1. The graphic solution method
2. The algebraic solution/ simplex algorithm

2.4.1 The Graphic solution Method

It’s a relatively straight forward method for determining the optional solution to certain linear
programming problems.
It gives us a clear picture.
This method can be used only to solve problems that involve two decision variables. However,
most linear programming applications involve situations that have more than two decision
variables, so the graphic approach is not used to solve these.

Example 1. Solving the micro-computer problem with graphic approach.

Z max: 60X1 + 50X2
S.t: AX1 + 10X2 ¿ 100
2X1 + X2 ¿ 22
3X1 + 3X2 ¿ 39
X1 X2 ¿ 0
Steps
1. Plot each of the constraints and identify its region.
2. Identify the common region, which is all area that contains all of the points that satisfy
the entire set of constraints.
3. Determine the optional solution-identify the point which lead to maximum benefit or
minimum cost.
4X1 + 10X2 = 100 2X1 + X2 = 22 3X1 + 3X2 = 39
X1 0 25 X1 0 11 X1 0 13
X2 10 0 X2 22 0 X2 13 0
24 Region ABCDE is called feasible region point C = ?
(0 22) 2x1 + x2 = 22 x-3
20 3x1 + 3x2 = 39
-6x1 + 3x2 = -66
16 3x1 + 3x2 = 39
-3x1 = -27
12
x1 = -27/-3 = 9
2(9) + x2 = 22
8 x2 = 22 – 18 = 4
Point D = 3x1 + 3x2 = 39 x - 4
4 4x1 + 10x2 = 100x3
= -12x1 + 12x2 = -156
12x1 + 30x2 = 300
0
18x2 = 144
A 4 8 B 12 16 20 24 x2 = 8
3x1 + 3(8) = 39
3x1 = 39 – 24
x1 = 15/3 = 5

To identity the maximum (minimum) value we use the corner point approach or the extreme
point approach. The corner point/ extreme point approach has one theorem. It states that:

For problems that have optional solutions, a solution will occur at an extreme, or corner point.
Thus if a problem has a single optional solution, it will occur at a corner point. If it has multiple
optional solutions, at least one will occur at a corner point consequently, in searching for an
optional solution to a problem, we need any consider the extreme points because one of those
must be optional. Further, determining the value of the objective function at each corner point,
we could identify the optional solution by selecting the corner point that has the best value (i.e.
maximum or minimum, depending on the optimization case) of the objective function. Extreme
points represent interactions of constraints.

Determine the values of the decision variables at each corner point. Some times, this can be done
by impaction (observation) and sometimes by simultaneous equation.
Substitute the value of the decision variables at each corner point into the objective function to
obtain its value at each corner point.
After all corner points have been so evaluated, select the one with the highest or lowest value
depending on the optimization case.
Value of the obi
Corner Coordinates How function Z = 60X1 + 50X2
 Points X1 X2 determined?
A 0 0 observation 0 br
B 11 0 observation 660 br
C 9 4 Simultaneous 740 br
equation

D 5 8 Simultaneous 700 br

equation

E 0 10 Observation 500 br

BASIC SOLUTION
X1 = 9 X2 = 4 Z = 740 Br.

After we have got the optimal solution, we have to substitute the value of the decision variables into the
constraints and check whether all the resources available are used or not. If there is any unused resources
we can use it for any other purpose. The amount of unused resource is known as slack- the amount of a
scarce resource that is unused by a given solution. The slack can range from zero, for a case in which all
of a particular resource is used, to the original amount of the resource that was available (i.e. none of it is
used.)

Computing the amount of slack

Originally unused Amount of slack

Amount used available (Available-used)

Constraint X1 = 9X2 = 4

Assembly 4(9) + 10(4) = 76 100 100 – 76 = 24 hrs

Impective 2(9) 9+ 1(4) = 22 22 22 – 22 = 0 hr

Storage 3(9) + 3(4) = 39 39 39 – 39 = 0 hr

Constraints that have no slack are sometimes referred to as binding constraints since they limit or bind the
solution. In the above cases, inspection time and storage space are binding constraints, while assembly
time has slack.

Knowledge of unused capacity can be useful for planning. A manager may be able to use the remaining
assembly time for other products, or, perhaps to schedule equipment maintenance, safety seminars,
training sermons or other activities

Interpretation: The company is advised to produce 9 units of type 1 micro computer and 4 units of type
2 micro computers per week to maximize its early profit to Br. 740, and in doing so the company would
be left with unused resource of 24 assembly hrs which can be used for other purposes.

Example 2: Solving the diet problem with graphic approach.

C min = 5X1 + 8X2

10X1 + 30X2 ¿ 140 10X1 + 30X2 = 140

20X1 + 15X2 ¿ 145 X1 0 14

X 1 , X2 ¿ 0 X2 14/3 0

20X1 + 15X2 = 145 X1 0 +-25

X2 9.67 0

X2

12

4
A

B
0 X1
4 8 12 16
 C

20X1 +15X2 = 145

Value of obj

coordinates How determined Function cmin = 5X + 8X2

Points X1 X2

A 0 9.67 Observation 77.3 br.

B 5 3 Simul. equn. 49 br.

C 14 0 Observation 70 br.

Basic solution X1 = 5 pounds X2 = 3 pounds C = 49 br.

Interpretation to make the diet the minimum cost of br 49 we have to purchase 5 pounds of
type 1 food and 3 pounds type 2 food.

If there is a difference between the minimum required amount and the optimal solution, we call the
difference surplus; that is: surplus is the amount by which the optimal solution causes a ¿ constraint to
exceed the required minimum amount. It can be determined in the same way that slack can: substitute
the optimum values of the decision variables into the left side of the constraint and solve. The difference
between the resulting value and the original right-hand side amount is the amount of surplus.

Surplus can potentially occur in a ¿ constraint.