Quantitative Methods: Instructor: DR: Abdelhamid Mostafa

1. The document discusses linear programming models and their use in allocating limited resources to maximize an objective like profit. 2. An example problem is presented about a company that produces two product types using limited raw materials and labor to maximize profit. 3. A second example problem is given about a pottery company producing bowls and mugs with constraints on labor and clay to maximize daily profits. Graphical and algebraic methods are shown to find the optimal solution.

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Quantitative Methods: Instructor: DR: Abdelhamid Mostafa

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Quantitative Methods

Lecture 1
Instructor:
Dr: Abdelhamid Mostafa
Linear Programming
• Linear programming is a class of
mathematical programming models
concerned with the efficient allocation of
limited recourses to know activities with the
objective of meeting a desired goal such as
maximizing or minimizing.
Example(1)
• A Company produces two types of products. Type 1
requires 4 K.G of raw material, and 3 hours of direct
labor per unit .
Type 2 requires 6 K.G of raw material, 2 hours of direct
labor per unit .
360 K.G are available for raw material and 150 hours
for direct labor.
Each unit of Type 1 produces $10 profit, and each unit
of Type 2 yields $90 profit.
Use the graph method to find the maximum profit and
the production schedule that will produce this profit.
Let x= number of units of type 1
y= number of units of type 2
Maximize profit Z= 10x+ 90y

x y Availability
Raw material 4 6 360
Direct labor 3 2 150

10
Formulating the model
Maximize: Z = 10 x+ 90 y
(Objective function)
Subject to:
4x+ 6y ≤ 360 Raw material
3x+ 2y ≤ 150 Labor
Where x, y ≥ 0
(1) Transform inequalities to equations:
4x+ 6y = 360
3x+ 2y = 150
(2)Determine two points for each
equation:
4x+ 6y= 360 3x+ 2y= 150
x= 0 y= 60 (0, 60) x= 0 y= 75 (0, 75)
y= 0 x= 90 (90, 0) y= 0 x= 50 (50, 0)
(3)Graph of equations:

75y

50 90 x
4x+ 6y= 360 (1)
3x+ 2y= 150 (2) Multiply x 3
9x+ 6y= 450
)- ( )- ( )- (
4x+ 6y= 360 (1)
5x= 90 x=18
4x+ 6y= 360
4(18) + 6y=360
72+6y=360
6y=360-72=288 y=48
Intersection point (18,48)
(4) Objective function:
Z = 10 x+ 90 y
(0, 60) Z = 10 (0) + 90 (60) = 5400 Max
(18, 48) Z = 10 (18) + 90 (48) = 4500
(50, 0) Z = 10 (50) + 90 (0) = 500
Optimal Solution:
x= 0 , y= 60
EXAMPLE 2
PROBLEM DEFINITION:
BEAVER CREEK MAXIMIZATION
PROBLEM
• Product mix problem - Beaver Creek Pottery Company
• How many bowls and mugs should be produced per day to
maximize profits given labor and materials constraints?
• Product resource requirements and unit profit:

Resource Requirements
Labor Clay Profit
Product
(hr/unit) (lb/unit) ($/unit)
Bowl 1 4 40
Mug 2 3 50
PROBLEM DEFINITION: BEAVER
CREEK EXAMPLE

Resource 40 hours of labor per day

Availability: 120 lbs of clay per day
PROBLEM DEFINITION: BEAVER
CREEK EXAMPLE
Decision Variables x = number of bowls to produce per day
y = number of mugs to produce per day
Objective Maximize Z = $40x + $50y
Function: Where Z = profit per day
Resource 1x + 2y  40 hours of labor
Constraints: 4x + 3y  120 pounds of clay
Non-Negativity x  0; y  0
Constraints:
PROBLEM DEFINITION:
BEAVER CREEK EXAMPLE

Complete Linear Programming Model:

Maximize Z = $40x + $50y

subject to: 1x + 2y  40
4x + 3y  120
x, y  0
GRAPHICAL REPRESENTATION OF
CONSTRAINTS:
COORDINATE AXES-BEAVER CREEK
EXAMPLE