(Winston, 1987) Williams, 1990) .Such Examples Will Be Formulated in This Review., (

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REVIEW AND COMPILATION OF LP MODELS

1. INTRODUCTION
Since the development of the Simplex Algorithm by Dantzig in 1947, Linear
Programming (LP) has been used to solve optimization problems in various
industries. An extensive list of LP applications has been provided by Gass in his
bibliography (Gass, 1985). Many other authors have presented real life problems
which may be solved with LP techniques. Shapiro, for- example, describes actual
business case studies (Shapiro, 1984). See also (Hillier & Lieberman, 1986),
(Winston,1987) ,( Williams,1990).Such examples will be formulated in this review.
The formulation of real life problems into LP models has lead to the classification
of models into typical prototypes, eg: production; distribution; blending; manpower
planning; cutting stock; transportation; network; process-flow. Each of these classes
of models has intrinsic characteristics which demand particular modeling
techniques. Many real situations will involve a combination of these
prototype models and will therefore require a mixture of such techniques. Thus
the simple skills used for formulating these prototypes form the basis of LP
modelling. A compilation of basic prototype models follows in section two with
illustrative examples. Although these examples are formulated in this section in a
mathematical form, the models are not the most clearly defined. Thus a discussion
of model formulation and a more formal approach to model description follows in
section three. The basic prototype models may also be extended to deal with
multi-time periods or multi-locations. This is illustrated in section four. Section five
examines process flow models in more detail and section six describes network
models which due to their special structure may be solved with specialist
algorithms.

2. A COMPILATION OF BASIC PROTOTYPE MODELS

2.1 Production (how much of each product to produce)


This type of problem is also commonly known as a product mix problem. This is
because it usually involves the production of various products competing for the
same limited production lines and resources; the task being to determine the
optimum production level for each product, which maximizes profit, subject to
the production capacity available and the production capacity required for each
product. The following example is taken from Hillier and Lieberman (Hillier &
Lieberman, 1986, p30f).

Example 2.la

A glass manufacturer decides to produce two new products: product 1 is an


aluminium framed glass door and product 2 is a wood-framed window. The
company has three plants. Aluminium frames and hardware are made in plant 1,
wood frames are made in plant 2 and plant 3 is used to produce the glass and
assemble the products. The market is such that the company could sell as much of
either product as could be produced with the available capacity. However, because
- 1-

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