Management Science Decision Variables

Linear Programming These are variables whose values are under

our control and influence the performance
Definition and Characteristics of the Model of the system.
- Linear Programming is one of the foremost Example:
flexible, capable and valuable procedure for
making administrative choices. Linear X = no. of products to be produced
programming method may be utilized for in Machine A
tackling wide extend of issues emerging in Y = kgs. of Mixture A to be produced
trade, government, industry, clinics, in Plant A
libraries, etc.
- Being a decision-making tool, it has
illustrated its esteem in different areas such Constraints
as production, finance, research, marketing These are the limitations or restrictions on
and improvement of staff administration. the values of decision variables.
Example:
Prescriptive or Optimization Models Volume must be between 1 and 5
A prescriptive model “prescribes” behavior liters.
for an organization that will enable it to Pressure must be between 200 and
best meet its goal(s). The components of a 400 milliliters.
prescriptive model include:
Temperature must be between 100
 objective function(s) and 200 degrees Celsius.
 decision variables
 Constraints with Parameters Mixture must be made up entirely of
A, B, and C.
For the drug to properly perform,
Objective Function(s) only half the mixture at most can be
It is being defined as the function that it is product A.
desired to maximize or minimize.
Example: The above constraints can be expressed
Max P = Maximize Profit mathematically by the following:

Min C = Minimize Cost V≤5 T ≥ 100

V≥1 A≥0
P ≤ 400 B≥0
P ≥ 200 A+B+C=1 Decision Variables
T ≤ 200 A≤5 In order for us to be guided on how to
maximize the profit, we should determine
the respective values of the related
Parameter quantifiable decisions. The decision
variables for the example are the following:
Numerical values (coefficient or RHS) in the
constraints. X1 = No. of barrels of tank fuel

Example: X2 = No. of barrels of gasoline

X1 + 3X2 + 2X3 ≤ 10
Objective Function

Sample Problem 1: In this part, we should be determining the

appropriate measure of performance that is
An oil refinery produces two (2) products:
expressed as a mathematical function of the
tank fuel and gasoline. The profit for the
decision variables. The OF for the above
refinery is $0.20 per barrel for tank fuel and
problem is:
$0.40 per barrel for gasoline. The following
conditions must be met. Max P = $0.20X1 + $0.40X2

1.) Only 1000 barrels of crude oil are

available for processing. In the above equation, $0.20X1 refers to
the cost/barrel of tank fuel and $0.40X2 for
2.) The refinery has a government
gasoline.
contract to produce at least 1000
barrels of tank fuel.
3.) The refinery has a government
Constraints
contract to produce at least 2000
barrels of gasoline. To establish balance in the resources of any
4.) Both products are shipped in trucks, industry and acknowledging that each
the delivery capacity of truck fleet resource has limitation, we should be
180,000 barrel-miles. determining the restrictions on the values
5.) The tank fuel is delivered to an which will be assigned to the decision
airfield 10 miles from the refinery. variables expressed by means of
6.) The gasoline is transported 30 miles inequalities or equations. The constraints
to the distributor. involved in the above problem are the
following:
What model will give the refinery maximum
profit?
1.) X1 + X2 ≤ 1000 (refers to restriction
no. 1 in the problem. Combination
of tank fuel and gasoline should not
exceed 1000)
2.) X1 ≥ 1000 (refers to restriction no. 2.
Per government contract the
refinery has to produce at least 1000
barrels of tank fuel.)
3.) X2 ≥ 2000 (refers to restriction no. 3.
Per government contract the
refinery has to produce at least 2000
barrels of gasoline.)
4.) 10X1 + 30X2 ≤ 180000 (combination
of restriction 4, 5 and 6.
Transportation capacity to 180,000
barrel-miles)
5.) X1, X2 ≥ 0 (non-negativity constraint.
Assurance that there are no
negative resources.)

Sample Problem 2:
A fertilizer company makes bag of
manure labeled “not less than 60 lbs dry
weight”. The package manure is a
combination of compost and sewage
wastes. To provide good quality of
fertilizer, each bag should contain at
least 30 lbs of compost but no more
than 40 lbs of sewage. Each pound of
compost costs the company P0.05 and
each pound of sewage cost the
company P0.04. Determine the LP
model that will give you the least cost
blend.