Linear Programming

Prepared by Dr. Sneha Amre

Linear Programming

Prepared by Dr. Sneha Amre

Prepared by Dr. Sneha Amre
Prepared by Dr. Sneha Amre
Prepared by Dr. Sneha Amre
Prepared by Dr. Sneha Amre
Prepared by Dr. Sneha Amre
Deciding Co-ordinate

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Prepared by Dr. Sneha Amre
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LPP USING EXCEL SOLVER

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HOW TO ADD SOLVER
• MS EXCEL – FILE - OPTIONS – ADD INS – GO – CLICK SOLVER - OK

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Solver Table

Step 1: Make the table indicating decision variables and constraints

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Step 2: calculate used capacity and total
profit using sum product

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Step 3: after applying function make input 0
to run solver

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Step 4: run solver (below data analysis tool pack)

• Set objective = total profit (decision)

• Click max for maximization decision
• By changing variables cells = select decision
Prepared by Dr. Sneha Amre variables (x and y units)
• In subject to constraint select constraints
• Values of ‘used’ in ‘cell reference’, appropriate equation sign, values
of ‘available’ in ‘constraints’
• Ok
• Click on make uncontrained variables non negative
• solve

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Select answer, sensitivity, limits reports - ok

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Final solution

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 Sensitivity Analysis
• In reality, profit coefficients of variables may increase or decrease. Similarly,
availability of resources may also increase or decrease. In that case, the optimal
profit calculated as per LPP solution will change
• The objective of sensitivity analysis is to determine the new values of solution. If
possible, from the given solution.
• This will be possible only if the changes (increase/decrease) in the objective
function or constraint capacities is in certain limits. These will be two limits,
lower limit (max. possible decrease) and upper limit (max. possible increase).
• These two limits provide the range within which the present simplex table
remains optimal.
• Hence, if the change in profit or change in capacity constraints is in the range, we
can find new values of the solution. If it is not in the range, we cannot find the
new values of the solution. Because the present simplex table will not remain
optimal any more.
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Answer Report

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Answer Report
Slack variable / constraint is the constraint which is under utilized.
If constraint has a slack then the constraint is called as non binding as
calculated answer is not equal to RHS

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Sensitivity Analysis

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Sensitivity Analysis

The allowable increase/decrease associated with the original

coefficient (A,B) of a decision variable tells us the range in which the
coefficient of a given decision variable in the objective function may
be increased/decreased without changing the optimal solution, where
all other data are fixed.

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Sensitivity Analysis

By putting the x and y values in s1, s2, s3

equation we get final values which are
lesser than RHS values of the same
constraint. So no violation of constraint.

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Sensitivity Analysis

The shadow price of a given constraint can be interpreted as the rate of

improvement in the optimal objective function value(max z). "Rate of
improvement" means "rate of increase" for a maximization model; and
"rate of decrease" for a minimization model.

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Every one unit increase in the RHS of the constraint by how many units optimum
solution(max z or min c) will increase or decrease is indicated by Shadow Price.
If constraint is slack variable its shadow price will always be 0

• For S2 constraint, RHS is 60,000 and Optimum solution max z is 63750. If RHS of S2 increased by 1
unit ie 60001
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As RHS increased by 1 unit the Optimum solution increased by 5 units
and its already mentioned in shadow price column.

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.

Infeasibility
• A linear programming problem is said to be infeasible if there is no
solution that satisfies all the constraints. It represents a state of
inconsistency in the set of constraints.
• A feasible solution for a linear program is a solution that satisfies
all constraints that the program is subjected. It does not violate
even a single constraint

Minimize z = 200x1 + 300x2

subject to
2x1 + 3x2 ≥ 1200
x1 + x2 ≤ 400
2x1 + 1.5x2 ≥ 900
x1, x2 ≥ 0
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Unboundedness
• It is a solution whose objective function is infinite. If the feasible region is unbounded
then one or more decision variables will increase indefinitely without violating feasibility,
and the value of the objective function can be made arbitrarily large. In other words
region of the given constraint is open ended and profit can be increased infinitely
without violating any constraint Consider the following model:

• Minimize z = 40x1 + 60x2

• subject to
• 2x1 + x2 ≥ 70
• x1 + x2 ≥ 40
• x1 + 3x2 ≥ 90
• x1, x2 ≥ 0
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Numerical 2
• The India Manufacturing Corporation (IMC) has one plant located on the outskirts
of a city. Its production is limited to two products, say naphtha and urea. The unit
contribution for each product has been compute by the firm’s costing dept as Rs.
50 per unit for product naphtha and Rs. 60 per unit for product urea. IMC wants
to maximize the profit function. The demand for products restricts the production
to a maximum of 400 units of each product. How units of naphtha and urea IMC
should produce in order to get maximum profit.

• The total time available in each departments are as follows:

Department Hours Required Available hours in a
Naphtha Urea month

1 2.0 3.0 1500

2 3.0 2.0 1500
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Special Class of LPP
● The Graphical Method is used to solve LPP with only two variables x, y
● Real life scenarios business problems rarely involve two variables
● The Simplex method is used for solve LPP with more than two variables x1,
x2, x3,,…. xn
●
A special branch of LPP comprises of the following
– Transportation Problem (One-to-many)
– Assignment Problem (One-to-one)
●
After a TP / AP has been formulated as an LPP, the problem can be solved by
simplex method
Transportation Problem

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• The transportation problem is a special type of linear programming
problem where the objective consists in minimizing transportation
cost of a given commodity from a number of sources or origins (e.g.
factory, manufacturing facility) to a number of destinations (e.g.
warehouse, store).
• Each source has a limited supply (i.e. maximum number of products
that can be sent from it) while each destination has a demand to be
satisfied (i.e. minimum number of products that need to be shipped
to it).
• The cost of shipping from a source to a destination is directly
proportional to the number of units shipped.

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Types of Transportation Problems

• There are two different types of transportation problems based on the

initial given information:
• Balanced Transportation Problems: cases where the total supply is equal
to the total demand.
• Unbalanced Transportation Problems: cases where the total supply is not
equal to the total demand. When the supply is higher than the demand,
a dummy destination is introduced in the equation to make it equal to the
supply (with shipping costs of $0); the excess supply is assumed to go to
inventory. On the other hand, when the demand is higher than the supply,
a dummy source is introduced in the equation to make it equal to the
demand (in these cases there is usually a penalty cost associated for not
fulfilling the demand).

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 The transportation problem seeks to minimize the total shipping costs of transporting
goods from i sources (each with a supply si) to j destinations (each with a demand
dj), when the unit shipping cost from source, i, to a destination, j, is cij

Source : i
Destination: j

•m = number of sources (i = 1 … m)
•n = number of destinations (j = 1 … n)
•c i,j = unit cost of shipping from source i to destination j
•x i,j = amount of prodts shipped from source i to
destination j Prepared by Dr. Sneha Amre
… LPP Formulation of a Transportation Problem
The linear programming formulation in terms of the amounts shipped
from the sources to the destinations, xij , can be written as
O b j e c t i ve F u n c t i o n: M i n i m i ze total transportation cost
n m
Min Z = ∑∑ ( c ij∗ x ij )
j=1 i=1
S u b j e c t to constraints
∑
m
( x ij ) ≤ si for e a c h s o u rc e i ( s u p p l y constraints i.e. max
i= 1 number of products that can be sent from source)

∑
n ≥ d j for each destination j (destination/demand
( x ji ) constraints i.e. min number of products that needs to be
j=1
shipped from source)

x ij , x ji ≥ 0 (transport from demand to supply or store to

w a r e h o u s e n o t p o s s i b l e h e n c e x ij h a s t o b e n o n n e g a t i v e )
… Numericals

A transportation tableau is given below. Each cell represents a

shipping route. The unit shipping costs are given in an upper right
corner in the cell. Formulate as an LPP

To
From D1 D2 D3 Supply
S1 15 30 20
50
30 40 35
S2 30

Demand 25 45 10
… Numericals
Decision Variables
x11 = No of units transported from S1 to D1
x12 = No of units transported from S1 to D2
x13 = No of units transported from S1 to D3
x21 = No of units transported from S2 to D1
x22 = No of units transported from S2 to D2
x23 = No of units transported from S2 to D3

Objective Function
Min Z = 15 x11 + 30 x12 + 20 x13 + 30 x21 + 40x22 + 35x23
… Numericals

Subject to constraints
Supply constraints
x11 + x12 + x13 ≤ 50
x21 + x22 + x23 ≤ 30

Demand constraints
x11 + x21 25
x12 + x22 45
x13 + x23 10

x11, …, x23 0
Example 2

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Formulation

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Assignment Problem

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LPP Formulation of an Assignment Problem

• An assignment problem seeks to minimize the total cost assignment

of m facilities / workers to m jobs, given that the cost of worker/
facility i performing job j is cij.
• Assumption - all workers are assigned and each job is performed
• An assignment problem is a special case of a transportation problem in
which all supplies and all demands are equal to 1
… LPP Formulation of an Assignment Problem

The linear programming formulation

Objective Function: M i n i m i z e total cost
n n

Min Z = ∑∑ ( c ij ∗ x ij )
i=1 j=1
Subject to constraints
∑
n
( x ij ) = 1
j= 1

∑
n
( x ij ) = 1
i=1
xij ≥ 0
… Numericals

• There are 3 jobs A, B, and C and three machines X, Y, and Z. All the jobs
can be processed on all machines. The time required for processing job
on a machine is given below in the form of matrix. Formulate as an LPP
to minimize the total processing time.
Machines
Job
X Y Z
A 11 16 21
B 20 13 17
C 13 15 12
… Numericals
Decision Variables
x11 = Time of job A on machine X
x12 = Time of job A on machine Y
x13 = Time of job A on machine Z
x21 = Time of job B on machine X
x22 = Time of job B on machine Y
x23 = Time of job B on machine Z
x31 = Time of job C on machine X
x32 = Time of job C on machine Y
x33 = Time of job C on machine Z

Objective Function
Min Z = 11 x11 + 16 x12 + 21 x13 + 20 x21 + 13x22 + 17x23 + 13x31 + 15 x32 + 12x33
… Numericals

Subject to constraints
Each job must be assigned to one machine
x11 + x12 + x13 = 1
x21 + x22 + x23 = 1
x31 + x32 + x33 = 1

Each machine must be assigned to one job

x11 + x21+ x31 = 1
x12 + x22+ x32 = 1
x13 + x23+ x33 = 1

x11, …, x33 0