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Linear Programming Problem

The document discusses linear programming problems. It defines linear programming as a technique for choosing optimal alternatives when objectives and constraints can be expressed as linear functions. It outlines the key properties and objectives of linear programming models, including maximizing profit or minimizing costs. The assumptions of linear programming problems are described, such as deterministic conditions, linear relationships, and fixed technology. Applications in various fields are provided as examples. The steps to formulate a linear programming problem and solve it using graphical and other methods are also summarized.

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0% found this document useful (0 votes)
202 views39 pages

Linear Programming Problem

The document discusses linear programming problems. It defines linear programming as a technique for choosing optimal alternatives when objectives and constraints can be expressed as linear functions. It outlines the key properties and objectives of linear programming models, including maximizing profit or minimizing costs. The assumptions of linear programming problems are described, such as deterministic conditions, linear relationships, and fixed technology. Applications in various fields are provided as examples. The steps to formulate a linear programming problem and solve it using graphical and other methods are also summarized.

Uploaded by

Jaya Prakash
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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MANAGEMENT SCIENCE BBA

6𝑡ℎ SEMESTER
CHAPTER-2

LINEAR PROGRAMING PROBLEM


LINEAR PROGRAMING PROBLEM

Linear programming is widely used mathematical modeling technique, which


is developed to help decision makers in planning and decision making as far as
resource allocation is concerned. It is a technique for choosing the best
alternatives from a set of feasible alternatives, in situation in which the
objective function as well as constraints can be expressed as linear
mathematical functions. Linear programming involves optimization of certain
functions called objective function subject to certain constraints. Linear
programming technique may be used for solving broad range of problems
arising in business, government, industry, hospitals, libraries, etc.
The relationship between The model must
variables and constraints have an objective
must be linear. 01 function.

04 02

The model must have 03 The model must have


structural constraints non-negativity constraint.

PROPERTIES OF LINEAR PROGRAMING


MODEL(PROBLEM)
OBJECTIVES OF LINEAR PROGRAMING
MODEL (PROBLEM)

Linear programming is a quantitative tool for optimal allocation of


limited resources among competing activities. The objective of linear
programming is maximization of profit or minimization of cost.
ASSUMPTIONS ON LINEAR PROGRAMING
PROBLEM

01

It is assumed that the decision maker here is completely certain (i.e.,


deterministic conditions) regarding all aspects of the situation, i.e.,
availability of resources, profit contribution of the products,
technology, courses of action and their consequences etc.
ASSUMPTIONS ON LINEAR PROGRAMING
PROBLEM

02

It is assumed that the relationship between variables in the problem and


the resources available. i.e., constraints of the problem exhibit
linearity. Here the term linearity implies proportionality and additivity.
This assumption is very useful as it simplifies modelling of the problem.
ASSUMPTIONS ON LINEAR PROGRAMING
PROBLEM

03

We assume here fixed technology. Fixed technology refers to the fact


that the production requirements are fixed during the planning period
and will not change in the period.
ASSUMPTIONS ON LINEAR PROGRAMING
PROBLEM

04

It is assumed that the profit contribution of a product remains


constant, irrespective of level of production and sales.
ASSUMPTIONS ON LINEAR PROGRAMING
PROBLEM

05

It is assumed that the decision variables are continuous. It means that


the companies manufacture products in fractional units. For example,
company manufactures 2.5 vehicles, 3.2 barrels of oil etc. This is
referred to as the assumption of divisibility.
ASSUMPTIONS ON LINEAR PROGRAMING
PROBLEM

06

It is assumed that only one decision is required for the planning


period. This condition shows that the linear programming model is a
static model, which implies that the linear programming problem is a
single stage decision problem.
ASSUMPTIONS ON LINEAR PROGRAMING
PROBLEM

07

All variables are restricted to non negative values (i.e., their


numerical value will be ≥0).
APPLICATIONS OF LINEAR PROGRAMING
Agriculture

Linear programming can be applied in agriculture planning.


Example; allocation of limited resources such as acreage, labour,
water supply, working capital etc. in a way so as to maximize net
revenue.
Military application

It includes the problem of selecting weapons system against the


enemy.
Production management :

Product mix: Production planning:


A company can produce different
products each of which requires
the use of limited production
This deals with the
resources. The management
determination of the minimum
wants to determine the quantity
cost of production over the
of each product to be produced,
planning period.
knowing the managerial
contribution and the amount of
resources to be used. In this case
the objective function may be
maximization of the total profit
or minimization of loss subject to
certain constraints.
Portfolio selection

This involves the selection of specific investment activity among


several activities. The objective function is to find the allocation
which maximizes the expected return.
Profit planning

It involves the maximization of profit margin from investment in


plant facilities and equipment, cash in hand etc.
Physical distribution

It determines the most economical and efficient manner of


allocating manufacturing plants and distribution centers for
physical distribution.
Job evaluation

Selection of suitable person for a specified job and evaluation of a


job in organization has been done with the help of Linear
programming technique.
FORMULATION OF MATHEMATICAL MODEL
TO LINEAR PROGRAMMING PROGRAM
Identification of the problem and setting up of objectives.
Establish the interrelationship between the variables of the
situation.
Identification of alternative variables

Specification of constraints.

Summarizing the problem in a mathematical form.

FORMULATION OF LINEAR PROGRAMMING


PROGRAM
ILLUSTRATION-1
QUESTION

An animal feed company must produce at least 200kgs of a


mixture consisting of ingredients 𝑥1 and 𝑥2 daily. 𝑥1 costs
Rs.3 per kg and 𝑥2 Rs. 8 per kg. No more than 80kg of 𝑥1
can be used and at least 60kgs of 𝑥2 must be used.
Formulate a mathematical model to the problem.
SOLUTION

𝑥=Number of units of the ingredients 𝑥1


𝑦=Number of units of the ingredients 𝑥2

The Objective function is


Minimise Z=𝟑𝒙 + 𝟖𝒚
Subject to
𝒙 + 𝒚 ≥ 𝟐𝟎𝟎
𝒙 ≤ 𝟖𝟎
𝒚 ≥ 𝟔𝟎
𝒙 ≥ 𝟎; 𝒚 ≥ 𝟎
FEASIBLE SOLUTION

Any combination of activity levels which satisfies


all constraints, including non negativity
restrictions, is known as feasible solution to the
problem.
SOLVING OF LINEAR PROGRAMMING PROBLEM

GRAPHICAL METHOD
GRAPHICAL METHOD

Graphical method is used to solve linear programming problem. It


involves two variables. Each line is represented by each constraint.

STEPS
01 02 03 04
Formulate All Draw Find out
the constraints the the
problem. may be curve.. feasible
written as region.
equality.
ILLUSTRATION-2
QUESTION

Solve the following problem graphically.

Maximize 𝑍 = 60𝑥1 + 40𝑥2

Subject to 2𝑥1 + 𝑥2 ≤ 60

𝑥1 ≤ 25

𝑥2 ≤ 35

𝑥1 ≥ 0; 𝑥2 ≥ 0
SOLUTION

2𝑥1 + 𝑥2 = 60 … … . . (1)

𝑥1 = 25…..(2)
𝑥2 = 35 … . 3
𝑥1 = 0 … … (4)
𝑥2 = 0 … … . (5)
Consider equation—(1) 𝟐𝒙𝟏 + 𝒙𝟐 = 𝟔𝟎

= 0 then
Let 𝑥1
2 × 0 + 𝑥2 = 60
𝑥2 = 60 (0,60)

Let 𝑥2= 0 then


2𝑥1 + 0 = 60
60
𝑥1 = = 30 (30,0)
2
Consider equation—(2) 𝒙𝟏 = 𝟐𝟓

Here the line is parallel to the Y-axis

(25,0)
Consider equation—(3) 𝒙𝟐 = 𝟑𝟓

Here the line is parallel to the X-axis

(0,35)
P Q

2𝑥1 + 𝑥2 = 60
R 𝑥1 = 25
𝑥2 = 35

O S
SOLUTION

Points 𝑥1 𝑥2 𝑍 = 60𝑥1 + 40𝑥2


O 0 0 0
P O 35 60 × 0 + 40 × 35 = 1400

Q 12.5 35 60 × 12.5 + 40 × 35 = 2150

R 25 10 60 × 25 + 40 × 10 = 1900

S 25 0 60 ×25 + 40 × 10 = 1500
LINEAR PROGRAMMING PROBLEM

MERITS AND DEMERITS


MERITS

• It helps an organization to
study the information through
scientific approach the
application of LPP helps to • Plans can be reevaluated for
consider all possible solutions changing conditions
of a problem and select the
optimal solution • Can be used for production
problems
• LP helps to identify the
constraints under which an
organization operates.
DEMERITS

• LP model can only be applied if the constraints and objectives functions


can be stated as linear expressions
• co-efficient in the objective function and the constraints equations
must co-efficient in the objective function and the constraints
equations must
• it may provide fractional valued answers
• if the management has conflicting multiple goals, the LP will fail to give
correct solution
• LP does not consider the effect of time and uncertainty

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