LINEAR

PROGRAMMING
LP Formulation, Graphical Solution
 Learning Outcomes

LO3.
LO2.
LO1. Create graphical
Solve real world
Define linear programming representation of linear
optimization problems
models.
What is Linear
Program?
According to Konnully, Joseph
George (nd), linear
programming uses linear
algebraic relationships to
represent a firm’s decisions,
given a business objective, and
resource constraints.
Model
Components
• Decision
variables
• Objective
function
• Constraints
• Non-Negativity
Constraints
Problem
Formulation
Problem Formulation is the
process of converting the
problems into a mathematical
statement for computational
process to solve the current
situation. According to Cengage
(2015) linear programming
formulation is an art that can be
mastered through practice and
experience.
Sample Problem
Par, Inc., is a small manufacturer of golf equipment and supplies whose management
has decided to move into the market for medium- and high-priced golf bags. Par’s
distributor is enthusiastic about the new product line and has agreed to buy all the golf
bags Par produces over the next three months. After a thorough investigation of the
steps involved in manufacturing a golf bag, management determined that each golf Department Production Time (hours)
bag produced will require the following operations: Standard Bag Deluxe Bag
1. Cutting and dyeing the material Cutting and 7/10 1
2. Sewing
Dyeing
Sewing 1/2 5/6
3. Finishing (inserting umbrella holder, club separators, etc.)
Finishing 1 2/3
4. Inspection and packaging Inspection 1/10 1/4
The director of manufacturing analyzed each of the operations and concluded that if and
the company produces a medium-priced standard model, each bag will require 7/10 Packaging
hour in the cutting and dyeing department, ½ hour in the sewing department, 1 hour
in the finishing department, and 1/10 hour in the inspection and packaging
department. The more expensive deluxe model will require 1 hour cutting and dyeing,
5/6 hour for sewing, 2/3 hour for finishing, and ¼ hour for inspection and packaging.
This production information is summarized in table below.
Par’s production is constrained by a limited number of hours available in each department. After studying departmental workload projections,
the director of manufacturing estimates that 630 hours for cutting and dyeing, 600 hours for sewing, 708 hours for finishing and 135 hours for
inspection and packaging will be available for the production of golf bags during the next three months.
Steps in Problem Formulation

1 2 3 4 5 6
Understand Describe the Describe each Define the Write the Write the
the Problem objective. constraint. decision objective in mathematical
thoroughly. variables. terms of the model.
decision
variables
 1. Understand the Problem
Understand the Problem thoroughly

Read the problem with comprehension to really feel what items

1 2 3 4 5

Understand the Problem Describe the Objective Describe each constraint. Define the decision Write the objective in terms
variables. of the decision variables.
 2. Describe the Objective
Maximization

Maximize the contribution to profit.

1 2 3 4 5

Understand the Problem Describe the Objective Describe each constraint. Define the decision Write the objective in terms
variables. of the decision variables.
 3. Describe the constraints
The Constraints
Constraint 1- Number of hours in cutting and dyeing time used must be less than or equal
to the number of hours of cutting and dyeing time available.
Constraint 2- Number of hours of sewing time used must be less than or equal to the
number of hours of sewing time available.
Constraint 3- Number of hours of finishing time of (inserting umbrella holder, club
separators, etc.) must be less than or equal to the number of hours of finishing time
available.
Constraint 4- Number of hours of inspection and packaging time must be less than or
equal to the number of hours of inspection and packaging time available.

1 2 3 4 5

Understand the Problem Describe the Objective Describe each constraint. Define the decision Write the objective in terms
variables. of the decision variables.
 4. Define the decision variables.
The controllable inputs for par, Inc. are (1) the number of standard
bags produced and (2) the number of deluxe bags produced. Let
S = Number of standard bags
D = number of deluxe bags
In optimization terminology, S and D are referred to as decision
variables..

1 2 3 4 5

Understand the Problem Describe the Objective Describe each constraint. Define the decision Write the objective in terms
variables. of the decision variables.
 5. Objective in terms of the decision
variables.
Write the objective in terms of the decision variables.
Par’s profit contribution comes from two sources which come from (1) contribution made
by producing S standard bag and (2) profit contribution made from deluxe bags. If Par
makes $10 for every strandard bag, the company will make $10S if S standards are
produced. Also if Par makes $9 for every deluxe bag, the company will make $9D if D
deluxe bags are produced. Thus we have a
Total Profit Contribution= 10S + 9D
Because the objective—maximize total profit contribution –is a function of the decision
variables S and D, we refer to 10S + 9D as the objective Function. Using Max as an
abbreviation for maximize, we write Par’s objective as follows:
Max 10S + 9D

1 2 3 4 5

Understand the Problem Describe the Objective Describe each constraint. Define the decision Write the objective in terms
variables. of the decision variables.
 6. Write the Mathematical Model
Max 10S + 9D
Subject to (s.t.)
7
S + 1D < 630 Cutting and Dyeing
10
5
½S+ D < 600 Sewing
6
2
1S+ D < 708 Finishing
3
1 1
S+ D < 135 Inspection and Packaging
10 4
S,D > 0

2 3 4 5 6

Define the decision Write the objective in terms Write the mathematical
Describe the Objective Describe each constraint. model.
variables. of the decision variables.
Assessment
Rachel owns a car and a moped.
She has at most 12 gallons of
gas to be used between the car
and the moped. The car's tank
holds at most 10 gallons and the
moped's 3 gallons. The mileage
for the car is 20 mpg and for
the moped is 100 mpg.
THANK YOU!