CHAPTER TWO

LINEAR PROGRAMMING
PROBLEMS
 Chapter Content
2.1 Introduction to linear
programming
2.2 Mathematical Model Formulation
2.3 Graphical Solution Method
2.4 The Simplex Solution Method
2.5 Sensitivity Analysis
2.6 Duality in Linear Programming
Problems
 2.1 Introduction to Linear
Programming
 Linear programming is a mathematical technique
designed to aid managers in allocating scarce
resources such as labor, capital, or energy among
competing activities.
 It reflects, in the form of a model, the organization's

attempt to achieve some objective;

 Maximizing profit contribution, production
capacity,
 Minimizing cots, in view of limited or
constrained resources available such as capital or
labor, raw material, market demand, production
process, service levels, machine time, budgets and
storage capacity etc.
 Cont…
 The linear programming technique can
be said to have a linear objective function
that is to be optimized either maximized or
minimized, subject to linear equality or
inequality constraints and sign restrictions
on the variables.
 The term linear describes the proportionate
relationship of two or more variables.
 A given change in one variable will always
cause a resulting proportional change in
another variable.
 Properties of LPP
Any linear programming model
(problem) must have the following
properties:
1.There must be linear relationship
between variables and constraints
2. The model must have an objective
function
3. The model must have structural
constraints
4. The model must have non-
 Assumptions of LPP
There are four basic assumptions of LP models.
i) Linearity: requirement is that each decision variable
has a linear impact on the objective function and in each
constraint
ii) Divisibility: pertains to potential values of decision
variables can assume non-integer values are acceptable .
iii) Certainty: requirement involves two aspects of LP
models, one aspect relates to the model parameters (i.e.,
numerical value). It is assumed that those values are
known and constant. It is the assumption that all relevant
constraints have been identified and represented in the
model
iv) Non-negativity
Application of Linear
Programming
 Can be used for many
Managerial Decisions:
1. Product mix
2. Make or buy decision

3. Media selection

4. Marketing research

5. Portfolio selection

6. Shipping & transportation

7. Multi-period scheduling
2.2 Mathematical
Model Formulation
Components of LP Model
1. Objective and Objective Function -
a single,
quantifiable objective must be specified by the decision
maker
 Maximization
 Minimization
2. Decision Variables - unknown quantities to be solved for
3. Constraints - restrictions or limits coming from a variety of
sources
 System constraints – involve more than one decision variable
 Individual constraints – involve only one variable
 Non-negativity constraints – specify that no variable will be
allowed to take on a negative value
4. Parameters – are numerical values in objective function and
constraints
LP Model Example
 Steps in Model Formulation

 Steps for Formulating the LP Model

1. Identify the unknown decision variables
to be determined and assign symbols to
them.
2. Identify the objective or aim and
represent it also as a linear function of
decision variables.
3. Identify all the restrictions or constraints
in the problem and express them as linear
equations or inequalities of decision
variables.
 Example 1.
 A firm manufactures two products A & B on
which the profits earned per unit are Birr 3 & 4
respectively. Each product is processed on two
machines M1 & M2. Product A requires one
minute of processing time on M1 and two minute
on M2, while product B requires one minute in
M1 and one minute on M2. Machine M1 is
available for not more than 7:30 hours and M2 is
available for 10 hours, during any working day.
 Formulate the mathematical LP model that will
determine the optimal production quantities for
profit maximization
 Example 2.
 A firm produces three products. These
products are processed on three different
machines. The time required manufacturing
one unit of the three products and the daily
capacity of the three machines are given in
the next table.
 The profit per unit for product 1, 2 & 3 is Birr 4, 3
& 6 respectively.
 Formulate the mathematical LP model that will
determine the daily optimal production
quantities for profit maximization.
 Cont…

Time per unit (minutes) Machine

Machine capacity
Product 1 Product 2 Product 3 (minutes)

M1 2 3 2 440

M2 4 - 3 470

M3 2 5 - 430
 Example 3.
A toy manufacturer makes three versions of a toy
robot. The first version requires 10 minutes for
fabrication and 2 pound of plastic, the second version
requires 12 minutes for fabrication and 3 pounds of
plastic, and the 3rd version requires 15 minutes for
fabrication and 4 pounds of plastic. There are 8 hours
of fabrication time available and 200 pounds of plastic
available for the next production cycle. The unit
profits are Birr 12 for each version 1, Birr 60 for each
version 2, and Birr 72 for each version 3. A minimum of
10 units of each robot must be made to fill backorder.
 Formulate an LP model that will determine the
optimal production quantities for profit
maximization.
 Example 4.
The agriculture research institute suggested to
a farmer to spread out at least 4800kg of a
special phosphate fertilizer and not less than
7200kg of a special nitrogen fertilizer to raise
productivity of crops in his field. There are two
sources for obtaining these- mixtures A and B.
both of these are available in bags weighing
100kg each and they cost birr 40 and birr 24
respectively. Mixture A contains phosphate and
nitrogen equivalent of 20kg and 80kg
respectively, while mixture B contains these
ingredients equivalent of 50kg each.
Formulate an LP model.
 Example 5
The orient manufacturing company produces
three type of typewriters Tik-Tik, Mik-Mik, Pik-Pik.
All the three types are required first to be
machined and then to be assembled. The total
available machine time and assembly times are,
respectively, 4000 and 1240 hours per month.
The time requirements for the various types and
the data regarding selling price and costs for the
three are on the next slide.
 Formulate the mathematical LP model that may
help us to determine the optimal production
quantities for profit maximization.
 Cont…

Type Machine time assembly time

(in hours) (in hours)
Tik-Tik 15 4.4
Mik-Mik 13 3.5
Pik-Pik 12 4.0

Tik-Tik Mik-Mik Pik-pik

Selling 11000 5000 3000
price
Cost 8000 2400 1500
 Example 6
ABC Company is investigating the
possibility of introducing a new cereal.
It would be composed of wheat, rice,
and cornflakes. The cost per ounce
and dietary requirements are shown in
the following table.
 Cont…
Wheat Rice Corn Requirement per
oz box
Protein (g.per oz) 4 2 2 At least 27g
Carbohydrate (g per oz) 20 25 21 At least 240g
Calories (g per oz) 90 110 100 No more than
1260 calories
Cost per oz $.03 $.03 $.02

Formulate an LPM that will determine the optimal

quantities of wheat, rice and corn per box that will
achieve the requirement at minimum cost.
2.3 Graphical Solution
Method
 Considerations in Graphical
Solution Method

 In graphical method:
 The inequalities (structural constraints) are
considered to be equations. This is because; one
cannot draw a graph for inequality.
 Only two variable problems are considered,
because we can draw straight lines in two-
dimensional plane (X-1 axis and X-2 axis).
 More over as we have non negativity constraint
in the problem that is all the decision variables
must have positive values always the solution to
the problem lies in first quadrant of the graph.
 Cont…
 This method consists of the
following steps:
 Formulate the mathematical model for
the given problem.
 Convert the constraints given in the
form inequality to that of equality.
 Draw the x and y intercepts.
 Plot each of the constraints on the
graph.
 Identify the feasible (solution) region.
 Techniques of Graphical
Method
 Corner (extreme) point method: this
method includes the following steps.
 Identify each of the extreme points of the
feasible region.
 Find the values of objective function at each
extreme point.
 The optimal solution occurs at that corner
point which maximizes objective function in
case of maximization problem.
 The optimal solution occurs at that corner
point which minimizes objective function in
case of minimization problem.
 1. Maximization Problem
Example: a microcomputer firm is about to start production
of two new microcomputers, X1 and X2. The manager
wants to determine how much of each computer to produce
in order to maximize the profit generated by selling them.
Resources Amount Available
Assembly time 100 hours
Inspection time 22 hours
Storage space 39 cubic feet
Type 1 Type 2
Profit per unit $60 $50
Assembly time per unit 4 hours. 10 hours
Inspection time per unit 2 hours. 1 hour
Storage space per unit3 cubic feet. 3 cubic feet
1. Maximization Problem
 The model is:
 Maximize Z= 60X1 + 50X2
 Subject to: Assembly 4X 1 +10 X 2 < 100 hours
Inspection 2X 1 + 1X 2 < 22 hours
Storage 3 X 1 + 3X 2 < 39 cubic feet
Where; X1, X2 > 0
 Required: Solve the problem using graphic
method
 Interpret the result
 Check resource consumption (availability
of slack)
Cont…
Cont.….
Corne Coordinate Value of Objective Function
r Point (Z=60X1 + 50X2)
Point (X1, X2)
a (0, 10) 60(0) + 50(10) = 500
b (5, 8) 60(5) + 50(8) = 700
c (9, 4) 60(9) + 50(4) = 740
Interpretation:
d (11, 0) 60(11) + 50(0) = 660
 For a firm to maximize its profit (740), it should
produce 9 units of the Model I microcomputer
and 4 units of model II.
Checking resource consumption (availability
of slack)
 (4*9) + (10*4) = 76 assembly hours
 (2*9) + (1*4) = 22 inspection hours
 1. Maximization Problem
A company manufactures two types of boxes, corrugated
and ordinary cartons. The boxes undergo two major
processes: cutting and pinning operations. The profits per
unit are Br. 6 and Br. 4 respectively. Each corrugated box
requires 2 minutes for cutting and 3 minutes for pinning
operation, whereas each carton box requires 2 minutes
for cutting and 1 minute for pinning. The available
operating time is 120 minutes and 90 minutes for cutting
and pinning machines.
Required: Determine the optimum quantities
Interpret the result
Check if there is any slack/unused resource
 2. Minimization Problem
Example 1:
 A person requires at least 10, 12, and 12

units of chemicals A, B and C respectively

for his garden. A liquid product contains
5, 2 and 1 units of A, B and C respectively
per jar. A dry product contains 1, 2 and 4
units of A, B and C per carton. If the
liquid product sells for Br.3 per jar and
the dry product sells for Br.2 per carton,
 How many of each should be purchased, in

order to minimize the cost and meet the

requirements?
2. Minimization Problem
Example 1:
 Suppose that a machine shop has two

different types of machines; machine 1

and machine 2, which can be used to
make a single product. These machines
vary in the amount of product produced
per hr. and the amount of labor used and
in the cost of operation. Assume that at
least a certain amount of product must
be produced and that we would like to
minimize at least the regular labor
force.

2. Minimization Problem
2. Minimization Problem
 Example 2:
 Min. Z = 0.1X+0.07Y
 Subject to:

6X+2Y > 18
8X+10Y > 40
Y>1
 Where; X, Y > 0
 Find the values of X and Y which
makes the objective function
minimum.
 Cont…
Solution:
 The coordinates of corner point’s feasible region are:
 A = (0, 9), B = (2.27, 2.18), C = (3.75, 1)
Compute objective function value at each corner
point of the feasible region.
Corner point coordinates(x1, x2) Z =
0.1x1+0.07x2
A (0, 9) (0.1x 0) + (0.07 x 9) =0.63

B (2.27, 2.18) (0.1 x 2.27) + (0.07 x2.18) =0.38

C (3.75, 1) (0.1 x 3.75) + (0.07 x 1) = 0.445
Exercise
A company owns two flour mills (A and B) which
have different production capacities for HIGH,
MEDIUM and LOW grade flour. This company has
entered contract supply flour to a firm every
week with 12, 8, and 24 quintals of HIGH,
MEDIUM and LOW grade respectively. It costs the
Co. $1000 and $800 per day to run mill A and mill
B respectively. On a day, Mill A produces 6, 2, and
4 quintals of HIGH, MEDIUM and LOW grade flour
respectively. Mill B produces 2, 2 and 12 quintals
of HIGH, MEDIUM and LOW grade flour
respectively.
Required:
Exercise - Mix of
Constraints

ABC Gasoline Company has two refineries with

different production capacities. Refinery A can
produce 4,000 gallons per day of SUPER
UNLEADED GASOLINE, 2,000 gallons per day of
REGULAR UNLEADED GASOLINE and 1,000
gallons per day of LEADED GASOLINE. On the
other hand, refinery B can produce 1,000 gallons
per day of SUPER UNLEADED, 3,000 gallons per
day of REGULAR UNLEADED and 4,000 gallons
per day of LEADED. The company has made a
contract with an automobile manufacturer to
provide 24,000 gallons of SUPER UNLEADED,
42,000 gallons of REGULAR UNLEADED and
Exercise Cont…

Required:
a. Formulate this problem as a LPP.
b. Determine the number of days the
gasoline company should operate each
refinery in order to meet the terms of the
above contract most economically (i.e. At a
minimum running cost)
c. Which grade of gasoline would be over
produced?
 Quiz
G.J. Breweries Ltd have two bottling plants, one located at ‘G’
and the other at ‘J’. Each plant produces three drinks, whisky,
beer and brandy named A, B and C respectively. The number of
the bottles produced per day are shown in the table. A market
survey indicates that during the month of July, there will be a
demand of 30,000 bottles of whisky, 40,000 bottles of beer and
44,000 bottles of brandy. The operating cost per day for plants at
G and J are 600 and 400 monetary units. For how many days
each plant be run in July so as to minimize the production cost,
while still meeting the market demand?
Formulate this problem as an LP problem and solve that using
graphical method.Drink Plant at
G J
Whisky 1,500 2,000
Beer 3,000 1,000
Brandy 2,000
5,000
Graphical Solutions
for the Special
Cases of LP
 i) Unboundedness
 Example:
Max Z = 10X1 + 20X2
Subject to 2X1 + 4X2 > 16
X1 + 5X2 > 15
X1, X2 > 0
The reason for it may be concluded to be wrong
formulation of the problem such as incorrectly
maximizing instead of minimizing and/or errors
in the given problem.
Checking equalities or rethinking the problem
statement will resolve the problem.
 Cont…

The shaded area represents the set of all

feasible solutions and as can be seen from
the graph, the solution is unbounded.
 ii) Infeasibility

 Infeasibility is a condition that arises when

no value of the variables satisfy all the
constraints simultaneously.
 Such a problem arises due to wrong model
formulation with conflicting constraints
 Example:
Max Z = 3X1+2X2
Subject to: 2X1 + X2 < 2
3X1 + 4X2 > 12
X1, X2 > 0
Cont…
 iii) Multiple Optimal Solutions

 Example:
Max Z = 8X1+16X2
Subject to: X1 + X2 < 200 ……. C1
3X1 + 6X2 < 900 ……. C2
X2 < 125 ……. C3
X1, X2 > 0
 Cont..

 The objective function assumes its maximum

value of 2,400 at two corner points;
 B (50,125) and C (100,100).
Therefore, the optimal solution is found on the
line segment connecting the two corner points.
 Important terms of Solutions
in LPP
 Solutions: are values of decisions variable of linear
programming model
 A feasible solution is a solution for which all the
constraints are satisfied.
 An infeasible solution is a solution for which at least
one constraint is violated.
 The feasible region is the collection of all feasible
solutions.
 An optimal solution is a feasible solution that has
the most favorable value of the objective function.
The most favorable value is;
 the largest value if the objective function is to be
maximized,
 whereas it is the smallest value if the objective
 Slack Versus Surplus
Slack:
 Slack is the amount of a scarce resource that is
unused by a given solution. Slack can potentially
exist in a < constraint. Slack variables are
considered in the objective function by using a
coefficient of zero for each of them. When all the
constraints are written as equalities after adding a
slack variable to each of them, the linear program
is said to be in standard form. For example, in
the Assembly constraint 4X1 +10X2 < 100 hrs,
the slack value is 100 – [4(9) +10(4)] = 24.
 Cont…
 Surplus: on the other hand 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,
i.e., substitute the optimal 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 should also be
accounted for in the objective function by using
coefficients of zero like wise.
2.4 THE SIMPLEX SOLUTION
METHOD
 Steps in Simplex Method

1. Write the Problem in Standard Form

 Characteristics:
 All constraints are expressed in the form of equalities
or equations.
 All right hand sides are non-negative

 All variables are non-negative

 Standardization/Tableau Form/:
Types of constraint Standard form
≤ Add a slack variable
= Add an artificial variable
≥ Subtract a surplus variable
and add an artificial variable
 Cont…
2. Develop an Initial Simplex Tableau
 Steps in developing initial simplex tableau:
I. List the variables in the model across the top of
the tableau
II. Next fill-in the parameters of the model in the
appropriate rows and columns
III. Add two columns to the left side of the tableau.
The first column is a list of variables called Basis.
IV. The C at the top column indicates that the
values in that column and the values in that row
are objective function coefficients.
 Cont…
V. The last column at the right is called the
quantity column. It refers to the right hand
side values (RHS) of the constraints.
VI. There are two more rows at the bottom of the
tableau. The first raw is a Z-row. For each
column the Z – value is obtained by
multiplying each of the number of the column
by their respective row coefficient in column C.
VII. The last raw is Cj-Z row. The values in this row
are also calculated column by column. For
each Column, the value in row Z is subtracted
form the C value in the top row.
 Cont…
3. Determining the Entering Variable:
 For a maximization problem; the entering variable is
identified as the one which has the largest positive value in
Cj-Z row.
 This column corresponding to the entering variable is called
pivot column.
 In a minimization problem, the entering variable is the one
which has the largest negative Cj-Z row value in the simplex
tableau.
4. Determining the Leaving Variable:
 The leaving variable is identified as the one with the smallest
non-negativity ratio for quantity divided by respective
positive pivot columnar entries.
 The row of the leaving variable is pivot row.
 Cont...

5. Drive the Revised Tableau for

Improved Solution
A. Divide each element of the pivot row (including
quantity) by the pivot element to get the
corresponding value in the new tableau. The
divided raw values is called the replacement
row.
B. For each raw other than the pivot raw;
 New row element = old row element – (row
element in pivot column X corresponding
replacement row elements)
 Cont…
6. Check for Optimality
 Remark:
 A simplex solution for a maximization
problem is optimal if and only if cj – z row
contains only zeros and negative value (i.e. if
there are no positive values in the cj – z row).
 The simplex solution for a minimization

problem is optimal if Cj-Z row contains only

zero and positive values (Cj-Z ≥ 0).
Note: if the solution is not optimal the steps will
be repeated again and again until the optimal
solution is obtained!
 1. Maximization
Problems
Example: Solve the problem using simplex
method.
 Max Z = 60X +50X
1 2
 Subject to: 4X1+10X2 ≤100
2X1+ X2 ≤ 22
3X1+ 3X2 ≤ 39
 Where; X1, X2 > = 0
 1. Maximization
Problems
A Juice Company has available two kinds of food Juices:
Orange Juice and Grape Juice. The company produces
two types of punches: Punch A and Punch B. One
bottle of punch A requires 20 liters of Orange Juice and 5
liters of Grape Juice. One Bottle of punch B requires 10
liters of Orange Juice and 15 liters of Grape Juice. From
each of bottle of Punch A, a profit of $4 is made and
from each bottle of Punch B, a profit of $3 is made.
Suppose that the company has 230 liters of Orange
Juice and 120 liters of Grape Juice available.
Required:
a. Formulate this problem as a LPP (2%)
b. How many bottles of Punch A and Punch B the
company should produce in order to maximize profit?
 2. Minimization
Problems
 The Big-M Method is a technique, which is used in
removing artificial variables from the basis
 In this method; we assign coefficients to artificial
variables, undesirable from the objective function
point of view
 If objective function Z is to be minimized, then a very
large positive price (called penalty) is assigned to
each artificial variable
 Example
 Minimize Z = 7X1+9X2
 Subject to 3X1+6X2 >= 36
8X1+4X2 > = 64
Where; X1, X2 > = 0
Step 1: Write in Standard Form
We subtract surplus and add artificial variables
into both constraints and write as follows
Minimize Z = 7X1+9X + 0S1+0S2+MA1+MA2
Subject to 3X1+6X - S1 + A1= 36
8X1+4X2 –S2+A2 = 64
X1, X2 > = 0
 Step 2: Initial Tableau

Basic V. Cj 7 9 0 0 M M

Quantity
X1 X2 S1 S2 A1 A2

M A1 3 6 -1 0 1 0 36

M A2 8 4 0 -1 0 1 64

Zj 11M 10M -M -M M M
100M
Cj-Zj 7-11M 9-10M M M 0 0
 Step 3: Determine the
Entering and Leaving
Variables
 The entering variable is identified as the
one which has the largest negative Cj-Z row
value in the simplex tableau
 The leaving variable is the smallest positive

ratio in quantity column

 The artificial variables in a minimization

problem will be expressed in the objective

function with a large positive coefficient so
that they are quickly eliminated as we
proceed with the solution
Step 4: Develop Second
Tableau
Cj 7 9 0 0 M
Basic V. X1 X2 S1 S2 A1 Quantity
A1 M 0 9/2 -1 3/8 1 12
X1 7 1 ½ 0 -1/8 0 8
Zj 7 7/2+9/2M -M 3/8M-7/8 M 56+12M
Cj-Zj 0 11/2-9/2M M 7/8-3/8M 0
 Step 5: Develop Third
Tableau
Cj 7 9 0 0
Basic V. X1 X2 S1 S2 Quantity
X2 9 0 1 -2/9 1/12 8/3
X1 7 1 0 1/9 -1/6 20/3
Zj 7 9 -11/9 -5/12 212/3
Cj-Zj 0 0 11/9 5/12
 Step 6: Check of
Optimality
 The third tableau represents a final
tableau since it is the optimal
solution with entirely zeros and non-
negative values in the Cj-Zj row

 Therefore, the optimal solution is: X1

= 20/3 and X2 = 8/3 and value of
objective function is 212/3
 Summary of Extra Variables

Coefficient of Extra Variables Presence of

Types of in the Objective Function variables in the
Extra Variables to be Initial Solution Mix
Constraint
added
Max Z Min Z
<= Add only slack variable (S) 0 0 Yes
>= Subtract surplus variable 0 0 No
(S) and add artificial
variable (A) -M +M Yes
= Add artificial variable (A) -M +M Yes
Special Issues in
Simplex Solution
 1. Non-feasible Solution/ Infeasibility

Example: Minimization Case

C5 8 0 0 M
Basic V. X1 X2 S1 S2 A2 Quantity
X1 5 1 1 -2 3 0 200
X2 8 0 1 1 2 0 100
A2 M 0 0 0 -1 1 20
Z 5 13 2 31-M M 1800 +
C-Z 0 -5 -2 -31 +M 0 200M

Even though all Cj - Zj are positive or 0(i.e. the criterion for an optimal solution in a
minimization case), no feasible solution is possible because an artificial variable (A2) remains
in the solution mix.
 2. Unbounded Solution
Example: Maximization case

C 6 9 0 0
Basic V. X1 X1 S1 S2 Quantity
X2 9 -1 1 2 0 30 30/-1 = -30
S2 0 -2 0 -1 1 10 10/-2 = -5
Z -9 9 18 0 270
C-Z 15 0 -18 0

 The entire ratios turn out to be

negative or undefined, it indicates
that the problem is unbounded.
 3. Degeneracy: Tie for Leaving and
Entering Variables

Example: Tie for Leaving Variables

C 5 8 2 0 0 0
Basic V. X1 X2 X3 S1 S2 S3 Quantity Ratio
X2 8 ¼ 1 1 -2 0 10 10/1/4 = 40
S2 0 4 0 1/3 -1 1 20 20/4 = 5
S3 0 2 0 2 2/5 0 10 10/2 = 5
Z 2 8 8 16 0 0 80
C-Z 3 0 -6 -16 0 0
 Cont…
 If a tie of two entering Variables,
use following rules:
 If there is a tie between two decision
variables, select arbitrary
 If there is a tie between a decision
variable and a slack (or surplus)
variable, select the decision variable to
enter into basis first
 If there is a tie between slack or surplus
variable, select arbitrary
 4. Multiple Optimum
Solution
Example: Maximization problem

C 3 2 0 0
Basic V. X1 X2 S1 S2 Quantity
X2 2 3/2 1 1 0 6
S2 0 1 0 ½ 1 3
Z 3 2 2 0 12
C-Z 0 0 -2 0

 The Cj - Zj value of the non-basic variable (X1)

is 0. Thus, this shows the existence of
alternative optimal solution.
THANK YOU!