Linear Programming

Model Formulation and Graphical

Solution

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Part I: Linear Programming
Model Formulation and Graphical Solution

• 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 firms frequently include maximizing profit or minimizing costs.

• Linear programming is an analysis technique in which linear algebraic relationships 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.

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Model Components and Formulation

• 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, that is maximized or minimized
• Constraints: 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 constraint equations.

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A Maximization Model Example (1 of 2)

Problem Definition

• 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
Product Labor Clay Profit
(hr/unit) (lb/unit) ($/unit)
Bowl 1 4 40
Mug 2 3 50

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 A Maximization Model Example (2 of 2)
Resource availability:
40 hours of labor per day
120 pounds of clay
Decision Variables:
x1=number of bowls to produce/day
x2= number of mugs to produce/day
Objective function
maximize Z = $40x1 + 50x2
where Z= profit per day
Resource Constraints:
1x1 + 2x2  40 hours of labor
4x1 + 3x2  120 pounds of clay
Non-negativity Constraints:
x10; x2  0
Complete Linear Programming Model:
maximize Z=$40x1 + 50x2
subject to
1x1 + 2x2  40
4x2 + 3x2  120
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x1, x2  0
 Feasible/Infeasible Solutions
• A feasible solution does not violate any of the constraints:
Example x1= 5 bowls
x2= 10 mugs
Z = $40 x1 + 50x2= $700
Labor constraint check:
1(5) + 2(10) = 25 < 40 hours, within constraint
Clay constraint check:
4(5) + 3(10) = 70 < 120 pounds, within constraint

• An infeasible solution violates at least one of the constraints:

Example x1 = 10 bowls
x2 = 20 mugs
Z = $1400
Labor constraint check:
1(10) + 2(20) = 50 > 40 hours, violates constraint

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Graphical Solution of Linear Programming 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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 Graphical Solution of a Maximization Model
Coordinate Axes

maximize Z=$40x1 + 50x2

subject to
1x1 + 2x2  40 hours of labor
4x2 + 3x2  120 pounds of clay
x1 , x 2  0

Coordinates for graphical analysis

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 Graphical Solution of a Maximization Model
Labor Constraint

maximize Z=$40x1 + 50x2

subject to
1x1 + 2x2  40 hours of labor
4x2 + 3x2  120 pounds of clay
x1 , x 2  0

Graph of the labor constraint line

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 Graphical Solution of a Maximization Model
Labor Constraint Area

maximize Z=$40x1 + 50x2

subject to
1x1 + 2x2  40 hours of labor
4x2 + 3x2  120 pounds of clay
x 1 , x2  0

The labor constraint area

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 Graphical Solution of a Maximization Model
Clay Constraint Area

maximize Z=$40x1 + 50x2

subject to
1x1 + 2x2  40 hours of labor
4x2 + 3x2  120 pounds of clay
x1, x2 0

The constraint area for clay

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 Graphical Solution of a Maximization Model
Both Constraints

maximize Z=$40x1 + 50x2

subject to
1x1 + 2x2  40 hours of labor
4x2 + 3x2  120 pounds of clay
x 1 , x2  0

Graph of both model Constraints

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 Graphical Solution of a Maximization Model
Feasible Solution Area

maximize Z=$40x1 + 50x2

subject to
1x1 + 2x2  40 hours of labor
4x2 + 3x2  120 pounds of clay
x1 , x 2  0

The feasible solution area constraints

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 Graphical Solution of a Maximization Model
Objective Function = $800

Z= $800 = $40x1 + 50x2

subject to
1x1 + 2x2  40 hours of labor
4x2 + 3x2  120 pounds of clay
x1 , x 2  0

Objective function line for Z 5 $800

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 Graphical Solution of a Maximization Model
Alternative Objective Functions

Z=$800, $1200, $1600 = $40x1 + 50x2

subject to
1x1 + 2x2  40 hours of labor
4x2 + 3x2  120 pounds of clay
x 1 , x2  0

Alternative objective function lines for profits, Z, of $800, $1,200, and $1,600

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 Graphical Solution of a Maximization Model
Optimal Solution

Z= $800 =$40x1 + 50x2

subject to
1x1 + 2x2  40 hours of labor
4x2 + 3x2  120 pounds of clay
x1 , x 2  0

Identification of optimal solution point

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 Graphical Solution of a Maximization Model
Optimal Solution Coordinates

maximize Z=$40x1 + 50x2

subject to
1x1 + 2x2  40 hours of labor
4x2 + 3x2  120 pounds of clay
x1 , x 2  0

Optimal solution coordinates

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 Graphical Solution of a Maximization Model
Corner Point Solutions

maximize Z=$40x1 + 50x2

subject to
1x1 + 2x2  40 hours of labor
4x2 + 3x2  120 pounds of clay
x1, x2  0

Solutions at all corner points

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 Graphical Solution of a Maximization Model
Optimal Solution for New Objective Function

maximize Z=$40x1 + 50x2

subject to
1x1 + 2x2  40 hours of labor
4x2 + 3x2  120 pounds of clay
x1 , x 2  0

The optimal solution with Z 5 70x1 1 20x2

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Slack Variables

• Standard form requires that all constraints be in the form of

equations.

• A slack variable is added to a  constraint to convert it to

an equation (=).

• A slack variable represents unused resources.

• A slack variable contributes nothing to the objective

function value.

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 Complete Linear Programming Model in Standard Form

maximize Z=$40x1 + 50x2 + 0s1 + 0s2

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

Solutions at points A, B, and C with slack

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A Minimization Model Example
Problem Definition
• 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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 A Minimization Model Example Model Construction

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 (nonnegativity constraint)

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 A Minimization Model Example
Complete Model Formulation and Constraint Graph

Complete model formulation:

minimize Z = $6x1 + 3x2
subject to
2x1 + 4x2  16 lb of nitrogen
4x1 + 3x2  24 lb of phosphate
x 1 , x2  0

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 A Minimization Model Example
Feasible Solution Area

minimize Z = $6x1 + 3x2

subject to
2x1 + 4x2  16 lb of nitrogen
4x1 + 3x2  24 lb of phosphate
x1, x2  0

Feasible solution area

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 A Minimization Model Example
Optimal Solution Point

minimize Z = $6x1 + 3x2

subject to
2x1 + 4x2  16 lb of nitrogen
4x1 + 3x2  24 lb of phosphate
x1, x2  0

The optimal solution point

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A Minimization Model Example
Surplus Variables

• 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.

• Surplus variables contribute nothing to the calculated value of the

objective function.

• Subtracting slack variables in the farmer problem constraints:

2x1 + 4x2 - s1 = 16 (nitrogen)
4x1 + 3x2 - s2 = 24 (phosphate)

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 A Minimization Model Example
Graphical Solutions

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

subject to
2x1 + 4x2 - s1 = 16
4x1 + 3x2 - s2 = 24
x1, x2, s1, s2 = 0

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:

1. Multiple optimal solutions
2. Infeasible solutions
3. Unbounded solutions

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 Multiple Optimal Solutions

Objective function is parallel to a

constraint line:

maximize Z=$40x1 + 30x2

subject to
1x1 + 2x2  40 hours of labor
4x2 + 3x2  120 pounds of clay
x1, x2  0
where x1 = number of bowls
x2 = number of mugs

Graph of the Beaver Creek Pottery Company 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

Graph of an infeasible problem

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 An Unbounded Problem

Value of objective function

increases indefinitely:

maximize Z = 4x1 + 2x2

subject to
x1  4
x2  2
x1, x2  0

An unbounded problem

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Characteristics of Linear Programming Problems

• A linear programming problem requires a decision - a choice amongst alternative courses of

action.
• 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.
• 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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