MANAGEMENT SCIENCE (SEMI-FINALS)

COURSE TOPIC/LESSON PROPER WITH VALUES INTEGRATION

INTRODUCTION TO LINEAR PROGRAMMING MODEL (LNP MODEL)

Linear programming is a mathematical method that is used to determine the best possible
outcome or solution from a given set of parameters or list of requirements, which are represented
in the form of linear relationships. Because of its nature, linear programming is also called linear
optimization.

Linear programming can be defined as: "A method to allocate scarce resources to competing
activities in an optimal manner when the problem can be expressed using a linear objective
function and linear inequality constraints." Formulation is the process of translating a real-world
problem into a linear program.

One of the areas of mathematics which has extensive use in combinatorial optimization is called
linear programming (LP). It derives its name from the fact that the LP problem is an optimization
problem in which the objective function and all the constraints are linear.

It is most often used in computer modeling or simulation in order to find the best solution in
allocating finite resources such as money, energy, manpower, machine resources, time, space
and many other variables. In most cases, the "best outcome" needed from linear programming is
maximum profit or lowest cost.
Because of its nature, linear programming is also called linear optimization.

Terms in the Study of Linear Programming Model

 Linear Functions
 Objective Functions
 Decision Variables
 Constraints
 Non-Negativity Restrictions
 Feasible Solution

 A linear function has one independent variable and one dependent variable. The independent
variable is x and the dependent variable is y.

2x + 3y =2,000

The objective function is a function that defines some quantity that should be minimized or
maximized. The arguments of the objective function are the same variables that are used in the
constraints. In order for linear programming techniques to work, the objective function should be
linear.

P(x + y)

P(500x+300y)
To solve any problem, we first need to identify the decision variables. For the above example,
the total number of units for A and B denoted by X & Y respectively are the decision variables.

Example: Two different products represented by x and y.

The definition of a constraint is something that imposes a limit or restriction or that prevents
something from occurring. An example of a constraint is the fact that there are only so many
hours in a day to accomplish things. The threat or use of force to prevent, restrict, or dictate the
action or thought of others.

4x + 2y=1,000
x=250
y=500 constraints

A feasible solution is a set of values for the decision variables that satisfies all of the
constraints in an optimization problem. A local optimal solution is one where there is no
other feasible solution "in the vicinity" with a better objective function value.

Five Areas of Application for Linear Programming Techniques

•••

Linear programming is used to obtain optimal solutions for operations research. Using linear
programming allows researchers to find the best, most economical solution to a problem within
all of its limitations, or constraints. Many fields use linear programming techniques to make
their processes more efficient. These include food and agriculture, engineering, transportation,
manufacturing and energy.

TL;DR (Too Long; Didn't Read)

Linear programming provides a method to optimize operations within certain constraints. It is

Using linear programming requires defining variables, finding constraints and finding the
objective function, or what needs to be maximized. In some cases, linear programming is
instead used for minimization, or the smallest possible objective function value. Linear
programming requires the creation of inequalities and then graphing those to solve problems.
While some linear programming can be done manually, quite often the variables and
calculations become too complex and require the use of computational software.

Food and Agriculture

Farmers apply linear programming techniques to their work. By determining what crops they
should grow, the quantity of it and how to use it efficiently, farmers can increase their revenue.

In nutrition, linear programming provides a powerful tool to aid in planning for dietary needs.
In order to provide healthy, low-cost food baskets for needy families, nutritionists can use
linear programming. Constraints may include dietary guidelines, nutrient guidance, cultural
acceptability or some combination thereof. Mathematical modeling provides assistance to
calculate the foods needed to provide nutrition at low cost, in order to prevent
noncommunicable disease. Unprocessed food data and prices are needed for such calculations,
all while respecting the cultural aspects of the food types. The objective function is the total
cost of the food basket. Linear programming also allows time variations for the frequency of
making such food baskets.

Applications in Engineering

Engineers also use linear programming to help solve design and manufacturing problems. For
example, in airfoil meshes, engineers seek aerodynamic shape optimization. This allows for the
reduction of the drag coefficient of the airfoil. Constraints may include lift coefficient, relative
maximum thickness, nose radius and trailing edge angle. Shape optimization seeks to make a
shock-free airfoil with a feasible shape. Linear programming therefore provides engineers with
an essential tool in shape optimization.

Transportation Optimization

Transportation systems rely upon linear programming for cost and time efficiency. Bus and
train routes must factor in scheduling, travel time and passengers. Airlines use linear
programming to optimize their profits according to different seat prices and customer demand.
Airlines also use linear programming for pilot scheduling and routes. Optimization via linear
programming increases airlines' efficiency and decreases expenses.

Efficient Manufacturing

Manufacturing requires transforming raw materials into products that maximize company
revenue. Each step of the manufacturing process must work efficiently to reach that goal. For
example, raw materials must past through various machines for set amounts of time in an
assembly line. To maximize profit, a company can use a linear expression of how much raw
material to use. Constraints include the time spent on each machine. Any machines creating
bottlenecks must be addressed. The amount of products made may be affected, in order to
maximize profit based on the raw materials and the time needed.

Energy Industry

Modern energy grid systems incorporate not only traditional electrical systems, but also
renewables such as wind and solar photovoltaics. In order to optimize the electric load
requirements, generators, transmission and distribution lines, and storage must be taken into
account. At the same time, costs must remain sustainable for profits. Linear programming
provides a method to optimize the electric power system design. It allows for matching the
electric load in the shortest total distance between generation of the electricity and its demand
over time. Linear programming can be used to optimize load-matching or to optimize cost,
providing a valuable tool to the energy industry.

What Careers Use Linear Equations?

A surprising number of occupations use linear equations. In math, linear equations use two or
more variables that produce a graph that proceeds in straight line, such as y = x + 2. Learning
how to use and solve linear equations can be vital to entering some popular careers. Careers
using linear equations range from health care workers to store clerks and everything in
between.

Business Manager

Managers in a variety of fields are required to use linear equations to calculate measurements,
make purchases, evaluate raises and determine how many employees are required to complete
specific jobs. Some of the more common managerial positions using linear equations include
advertising, real estate, funeral director, purchasing and agriculture. For example, an
advertising manager might plan an online ad campaign budget using linear equations based on
the cost per click.

Financial Analyst

Financial occupations often require the use of linear equations. Accountants, auditors, budget
analysts, insurance underwriters and loan officers frequently use linear equations to balance
accounts, determine pricing and set budgets. Linear equations used in financial occupations
may also be used in creating family budgets as well. A financial planner, for example, uses
linear equations to determine the total worth of a client's stocks.

Computer Programmer

Computer programmers and support specialists must be able to solve linear equations. Linear
equations are used within software applications, on websites and security settings, which must
be programmed by a computer programmer. Support specialists must be able to understand
linear equations to troubleshoot many software and networking issues. A programmer, for
example, might use linear equations to calculate the time needed to update a large database of
information.
 Research Scientist

Scientists of all types use linear equations on a regular basis. Life, physical and social
scientists all have situations where linear equations make their jobs easier. Biologists to
chemists all use the same linear equation format to solve problems such as determining
ingredient portions, sizes of forests and atmospheric conditions. A chemist might, for example,
set up several linear equations to find the right combination of chemicals needed for an
experiment.

Professional Engineer

Engineering is one of the most well-known fields for using linear equations. Engineers include
architects, surveyors and a variety of engineers in fields such as:

 biomedical
 chemical
 electrical
 mechanical
 nuclear

Linear equations are used to calculate measurements for both solids and liquids. An electrical
engineer, for example, uses linear equations to solve problems involving voltage, current and
resistance.

Resource Manager

Human resources positions and even store clerks may find the need for linear equations. This is
most common when calculating payroll and purchases without calculators. Linear equations
are also used when placing orders for supplies and products, and can help find the lowest costs
for an order, taking into account prices and volume discounts.

Architect and Builder

The construction field frequently uses linear equations when measuring and cutting all types of
materials for job sites. Both carpenters and electricians are included in the construction field
and use linear equations on many of the jobs they do. A carpenter might, for example, use a
linear equation to estimate the cost of wood and nails for a remodeling project.

Health Care Professional

The health care field, including doctors and nurses, often use linear equations to calculate
medical doses. Linear equations are also used to determine how different medications may
interact with each other and how to determine correct dosage amounts to prevent overdose with
patients using multiple medications. Doctors also use linear equations to calculate doses based
on a patient's weight.
Linear Programming Model Application

Illustrative Problem 1

Hi-Tech Company produces 2 types of Automated Voltage Regulator, AVR 1 and AVR 2.
There are four important stages where each product undergoes before they become finished
products. AVR 1 requires 4, 1, 2 and another 2 hours respectively for partition, assembly, testing
and quality control while AVR 2 requires 3, 2.5, 1.5 and 1 hours respectively.

Per month, 12,000 hours are available for the stage of partition and 10,000 hours for the stage of
assembly while testing and quality control stages require 6,000 and 8,000 hours respectively. The
expected profit per unit of AVR 1 and AVR 2 are Php500 and 300 respectively.

REQUIRED: Using the Linear Programming Model, determine the number of each type
of voltage regulator that should be produced in order to maximize the total monthly profit.

SOLUTION:

A) Summary Table of Production Stages

PRODUCTS PARTITION ASSEMBLY TESTING QUALITY CONTROL

AVR 1 4 1 2 2

AVR 2 3 2.5 1.5 1

No. of Hours 12,000 10,000 6,000 8,000

B) Let x be the number of units of AVR 1 and y the number of units of AVR 2.

Linear Equations/Functions (Lesser Than or Equal)

4x + 3y = 12,000

x + 2.5y = 10,000

2x + 1.5y = 6,000

2x + y = 8,000

C) Objective Function

P=(x + y)

P= (500x + 300y)

D) Evaluation of Linear Function Per Stage of Production (Lesser Than or Equal)

Assembly
x + 2.5y = 10,000
x=10,000
y=4,000

Testing
2x + 1.5y = 6,000
x=3,000
y=4,000

Quality Control
2x + y = 8,000
x=4,000
y=8,000

Graphical Presentation to Determine the Maximum Profit

10,000
9,000
8,000
7,000
6,000
5,000
4,000
3,000
2,000
1,000
0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000

Number of AVR 1 to Produce (x) = 3,000 units

Objective Function:
P=(x + y)
= (500x + 300x)
= (Php500 x 3,000 units) + (Php300 x 3,000 units)
= Php1,500,000 + Php900,000
= Php2,400,000

Conclusion: Hi-Tech Company has to produce 3,000 units of AVR 1 and another 3,000 units
of AVR 2 to meet maximum profit of Php2,400,000.