846

Chapter Nineteen  Linear Programming

TABLE 19.1
Changes to objective function coefficients that are within the
Summary of the impact
range of optimality
of changes within their
respective ranges Component Result
Values of decision variables No change
Value of objective function Will change

Changes to RHS values of constraints that are within the

range of feasibility
Component Result
Value of shadow price No change
List of basic variables No change
Values of basic variables Will change
Value of objective function Will change

constraint has a slack of 20. Similarly, for a ≥ constraint, going below its lower bound creates
a surplus for that constraint. The second case for each of these would be exceeding the oppo-
site limit (the lower bound for a ≤ constraint, or the upper bound for a ≥ constraint). In either
instance, a new solution would have to be generated.

Linear programming is a powerful tool used for constrained optimization situations. Components of LP
SUMMARY problems include an objective function, decision variables, constraints, and numerical values (param-
eters) of the objective function and constraints.
The size of real-life problems and the burden of manual solution make computer solutions the practi-
cal way to solve real-life problems. Even so, much insight can be gained through the study of simple,
two-variable problems and graphical solutions.

1. Optimizing techniques such as linear programming help business organizations make the best use
KEY POINTS of limited resources, such as materials, time, and energy, to maximize profits or to minimize costs.
2. As with all techniques, it is important to confirm that the underlying assumptions on which the
technique is based are reasonably satisfied by the model in order to achieve valid results.
3. Although the graphical technique has limited use due to the fact that it can only handle two-variable
problems, it is very useful in conveying many of the important concepts associated with linear pro-
gramming techniques.

binding constraint, 839 graphical linear redundant constraint, 836

KEY TERMS constraints, 826 programming, 828 sensitivity analysis, 843
decision variables, 826 objective function, 826 shadow price, 844
enumeration approach, 837 parameters, 826 simplex, 840
feasible solution range of feasibility, 845 slack, 839
space, 826 range of optimality, 843 surplus, 839

SOLVED PROBLEMS

Problem 1 A small construction firm specializes in building and selling single-family homes. The firm offers
two basic types of houses: model A and model B. Model A houses require 4,000 labor hours, 2 tons
of stone, and 2,000 board feet of lumber. Model B houses require 10,000 labor hours, 3 tons of stone,
and 2,000 board feet of lumber. Due to long lead times for ordering supplies and the scarcity of
skilled and semiskilled workers in the area, the firm will be forced to rely on its present resources for
the upcoming building season. It has 400,000 hours of labor, 150 tons of stone, and 200,000 board
feet of lumber. What mix of model A and B houses should the firm construct if model A yields a
 Chapter Nineteen  Linear Programming 847

profit of $3,000 per unit and model B yields $6,000 per unit? Assume that the firm will be able to
sell all the units it builds.

1. Formulate the objective function and constraints:1 Solution

Maximize Z = 3,000A + 6,000B
Subject to
Labor 4, 000A + 10, 000B ≤ 400,000 labor hours
Stone 2A + 3B ≤ 150 tons
    
     
     
​  ​ ​  ​  ​  ​  ​    ​ ​​
Lumber 2, 000A + 2, 000B ≤ 200,000 board feet
​ ​ A, B ≥ 0
2. Graph the constraints and objective function, and identify the optimum corner point (see graph).
Note that the lumber constraint is redundant: It does not form a boundary of the feasible solu-
tion space.

120

100
Number of units of model B

80 Redundant

60
Lu
m
be
r

40 Sto
ne Optimum

20 Lab
or

0
20 40 60 80 100 120
Number of units of model A

3. Determine the optimal quantities of models A and B, and compute the resulting profit. Because
the optimum point is at the intersection of the stone and labor constraints, solve those two equa-
tions for their common point:
Labor 4,000A + 10,000B     = 400,000
​     ​  ​
​________________________________
− 2,000 × (Stone 2A + 3B​ ​   =          150)​
​​     ​​
                               4,000B = 100,000
​    ​  ​
B =          25
Substitute B = 25 in one of the equations, and solve for A:
2A + 3(25) = 150 A = 37.5
Z = 3,000(37.5) + 6,000(25) = 262,500
4. We could have used the enumeration approach to find the optimal corner point. The corner
points and the value of the objective function at each corner point are:
A ​= 0, B = 40 (found by inspection); Z = 3,000(0) + 6,000(40) = 240,000​
​  ​= 37.5, B = 25 (found using simultaneous equations); Z = 262,500 (see step 3)​
       
​A​
        ​ ​
A ​= 75, B = 0 (found by inspection); Z = 3,000(75) + 6,000(0) = 225,000​
The best value of Z is 262,500 (because this is a maximization problem), so that indicates that the
optimal corner point is A = 37.5, B = 25.

1
For the sake of consistency, we will assign to the horizontal axis the first decision variable mentioned in the
problem. In this case, variable A will be represented on the horizontal axis, and variable B on the vertical axis.
848 Chapter Nineteen  Linear Programming

Problem 2 This LP model was solved by computer:

Maximize 15​x​ 1​ + 20​x​ 2​ + 14​x​ 3​ where ​x​ 1​ = quantity of product 1
      
​  ​  ​  ​  ​x​ 2​ = quantity of product 2​​
​ ​ ​x​ 3​ = quantity of product 3
Subject to:
Labor 5​x​ 1​ + 6​x​ 2​ + 4​x​ 3​ ≤ 210 hours
Material 10​x​ 1​ + 8​x​ 2​ + 5​x​ 3​ ≤ 200 pounds
    
    
    
​ ​​ ​  ​  ​  ​   ​​ ​ ​​
Machine 4​x​ 1​ + 2​x​ 2​ + 5​x​ 3​ ≤ 170 minutes
​ ​x​ 1​, ​x​ 2​, ​x​ 3​ ≥ 0
The following information was obtained from the output. The ranges were also computed based on
the output, and they are shown as well.
TOTAL PROFIT = 548.00      
Variable Value Reduced Cost Range of Optimality
Product 1 0 10.6 unlimited to 25.60
Product 2 5 0 9.40 to 22.40
Product 3 32 0 12.50 to 50.00
Constraint Slack Shadow Price Range of Feasibility
Labor 52 0.0 158.00 to unlimited
Material 0 2.4 170.00 to 270.91
Machine 0 0.4 50.00 to 200.00
a. Which decision variables are basic (i.e., in solution)?
b. By how much would the profit per unit of product 1 have to increase for it to have a nonzero value
(i.e., for it to become a basic variable)?
c. If the profit per unit of product 2 increased by $2 to $22, would the optimal production quantities
of products 2 and 3 change? Would the optimal value of the objective function change?
d. If the available amount of labor decreased by 12 hours, would that cause a change in the optimal val-
ues of the decision variables or the optimal value of the objective function? Would anything change?
e. If the available amount of material increased by 10 pounds to 210 pounds, how would that affect
the optimal value of the objective function?
f. If profit per unit on product 2 increased by $1 and profit per unit on product 3 decreased by $.50,
would that fall within the range of multiple changes? Would the values of the decision variables
change? What would be the revised value of the objective function?
Solution a. Products 2 and 3 are in solution (i.e., have nonzero values). The optimal value of product 2 is 5
units, and the optimal value of product 3 is 32 units.
b. The amount of increase would have to equal its reduced cost of $10.60.
c. No, because the change would be within its range of optimality, which has an upper limit of
$22.40. The objective function value would increase by an amount equal to the quantity of prod-
uct 2 and its increased unit profit. Hence, it would increase by 5($2) = $10 to $558.
d. Labor has a slack of 52 hours. Consequently, the only effect would be to decrease the slack to 40 hours.
e. The change is within the range of feasibility. The objective function value will increase by the
amount of change multiplied by material’s shadow price of $2.40. Hence, the objective function
value would increase by 10($2.40) = $24.00. (Note: If the change had been a decrease of 10
pounds, which is also within the range of feasibility, the value of the objective function would
have decreased by this amount.)
f. To determine if the changes are within the range for multiple changes, we first compute the ratio of
the amount of each change to the end of the range in the same direction. For product 2, it is $1/$2.40
= .417; for product 3, it is −$.50/ − $1.50 = .333. Next, we compute the sum of these ratios: .417
+ .333 = .750. Because this does not exceed 1.00, we conclude that these changes are within the
range. This means the optimal values of the decision variables will not change. We can compute
the change to the value of the objective function by multiplying each product’s optimal quantity by
its changed profit per unit: 5($1) + 32(−$.50) = −$11. Hence, with these changes, the value of the
objective function would decrease by $11. Its new value would be $548 − $11 = $537.
 Chapter Nineteen  Linear Programming 849

1 . For which decision environment is linear programming most suited?

DISCUSSION AND
2. What is meant by the term feasible solution space? What determines this region?
REVIEW QUESTIONS
3. Explain the term redundant constraint.
4. What is an isocost line? An isoprofit line?
5. What does sliding an objective function line toward the origin represent? Away from the origin?
6. Briefly explain these terms:
a. Basic variable
b. Shadow price
c. Range of feasibility
d. Range of optimality

1. Solve these problems using graphical linear programming and answer the questions that follow. Use
simultaneous equations to determine the optimal values of the decision variables. PROBLEMS
a. Maximize      Z = 4x1 + 3x2
Subject to
Material 6​x​ 1​ + 4​x​ 2​ ≤ 48 lb
​ Labor​  ​ 
    4​x​ 1​ + 8​x​ 2​  ≤​​  80 hr​
  ​
​ ​x​ 1​, ​x​ 2​ ≥ 0
b. Maximize      Z = 2x1 + 10x2
Subject to
Durability 10​x​ 1​ + 4​x​ 2​ ≥ 40 wk
Strength 1​x​ 1​ + 6​x​ 2​ ≥ 24 psi
​     
    ​  ​  ​  ​  ​    ​ ​
Time 1​x​ 1​ + 2​x​ 2​ ≤ 14 hr
​ ​x​ 1​, ​x​ 2​ ≥ 0
c. Maximize      Z = 6A + 3B (revenue)
Subject to
Material 20A + 6B ≤ 600 lb
Machinery 25A + 20B ≤ 1,000 hr
    
    
    
​  ​  ​  ​  ​  ​  ​  ​    ​ ​​
Labor 20A + 30B ≤ 1, 200 hr
​ ​ A, B ≥ 0
(1)  What are the optimal values of the decision variables and Z?
(2)  Do any constraints have (nonzero) slack? If yes, which one(s) and how much slack does each have?
(3) Do any constraints have (nonzero) surplus? If yes, which one(s) and how much surplus does
each have?
(4)  Are any constraints redundant? If yes, which one(s)? Explain briefly.
2 . Solve these problems using graphical linear programming and then answer the questions that fol-
low. Use simultaneous equations to determine the optimal values of the decision variables.
a. Minimize      Z = 1.80S + 2.20T
Subject to:
Potassium 5S + 8T ≥ 200 gr
Carbohydrate 15S + 6T ≥ 240 gr
​ Protein​ 
    
    
​​ ​  ​  ​  4S + 12T​ ​  ≥​ ​  180 gr​
 ​​​ ​
T T ≥ 10 gr
​ S, T ≥ 0
b. Minimize      Z = 2x1 + 3x2
Subject to:
D 4​x​ 1​ + 2​x​ 2​ ≥ 20
E 2​x​ 1​ + 6​x​ 2​ ≥ 18
    ​  ​ ​  ​  ​   ​​
F 1​x​ 1​ + 2​x​ 2​ ≤ 12
​ ​x​ 1​, ​x​ 2​ ≥ 0
(1)  What are the optimal values of the decision variables and Z?
(2)  Do any constraints have (nonzero) slack? If yes, which one(s) and how much slack does each have?
(3) Do any constraints have (nonzero) surplus? If yes, which one(s) and how much surplus does
each have?
(4)  Are any constraints redundant? If yes, which one(s)? Explain briefly.
850 Chapter Nineteen  Linear Programming

3. a. An appliance manufacturer produces two models of microwave ovens: H and W. Both models
require fabrication and assembly work; each H uses four hours of fabrication and two hours
of assembly, and each W uses two hours of fabrication and six hours of assembly. There are
600 fabrication hours available this week and 480 hours of assembly. Each H contributes
$40 to profits, and each W contributes $30 to profits. What quantities of H and W will maxi-
mize profit? (1) Use the objective function method. (2) Use the enumeration method.
b. The company also produces two refrigerator models: large (L) and medium (M). Although materi-
als to produce the refrigerators is available, fabrication time and assembly time are limited. There are
540 hours available for fabrication and 600 hours available for assembly this week. Each unit of model
L requires 6 hours for fabrication and 3 hours for assembly, and each unit of M requires 4 hours for
fabrication and 5 hours for assembly. Each unit of L contributes $50 to profit, and each unit of model
M contributes $40 to profit. How many units of each model should be produced if the objective is to
maximize profit? (1) Use the objective function method. (2) Use the enumeration method.
4. A small candy shop is preparing for the holiday season. The owner must decide how many bags of
deluxe mix and how many bags of standard mix of Peanut/Raisin Delite to put up. The deluxe mix
has 2​  ⁄ 3​pound raisins and 1​​ ⁄  3​​pound peanuts, and the standard mix has 1​​ ⁄  2​​pound raisins and 1​​ ⁄  2​​ pound
peanuts per bag. The shop has 90 pounds of raisins and 60 pounds of peanuts to work with.
  Peanuts cost $.60 per pound and raisins cost $1.50 per pound. The deluxe mix will sell for $2.90
for a one-pound bag, and the standard mix will sell for $2.55 for a one-pound bag. The owner esti-
mates that no more than 110 bags of one type can be sold.
a. If the goal is to maximize profits, how many bags of each type should be prepared?
b. What is the expected profit?
5. A retired couple supplement their income by making fruit pies, which they sell to a local grocery
store. During the month of September, they produce apple and grape pies. The apple pies are
sold for $4.50 to the grocer, and the grape pies are sold for $3.60. The couple is able to sell all
of the pies they produce owing to their high quality. They use fresh ingredients. Flour and sugar
are purchased once each month. For the month of September, they have 1,200 cups of sugar and
2,100 cups of flour. Each apple pie requires 1​1​ ⁄  2​cups of sugar and 3 cups of flour, and each grape
pie requires 2 cups of sugar and 3 cups of flour.
a. Determine the number of grape and the number of apple pies that will maximize revenues if the
couple working together can make an apple pie in six minutes and a grape pie in three minutes.
They plan to work no more than 60 hours.
b. Determine the amounts of sugar, flour, and time that will be unused.
6. Solve each of these problems by computer and obtain the optimal values of the decision variables
and the objective function.
a. Maximize Z = 4x1 + 2x2 + 5x3
Subject to:
1​x​ 1​ + 2​x​ 2​ + 1​x​ 3​ ≤ 25
1​x​ 1​ + 4​x​ 2​ + 2​x​ 3​ ≤ 40
​      ​  ​    ​
3​x​ 1​ + 3​x​ 2​ + 1​x​ 3​ ≤ 30
​x​ 1​, ​x​ 2​, ​x​ 3​ ≥ 0

b. Maximize Z = 10x1 + 6x2 + 3x3

Subject to:
1​x​ 1​ + 1​x​ 2​ + 2​x​ 3​ ≤ 25
2​x​ 1​ + 1​x​ 2​ + 4​x​ 3​ ≤ 40
​      ​  ​    ​
1​x​ 1​ + 2​x​ 2​ + 3​x​ 3​ ≤ 40
​x​ 1​, ​x​ 2​, ​x​ 3​ ≥ 0

7. For Problem 6a, determine the following:

a. The range of feasibility for each constraint
b. The range of optimality for the coefficients of the objective function
8. For Problem 6b:
a. Find the range of feasibility for each constraint, and interpret your answers.
b. Determine the range of optimality for each coefficient of the objective function. Interpret your results.
 Chapter Nineteen  Linear Programming 851

9. A small firm makes three similar products, which all follow the same three-step process, consist-
ing of milling, inspection, and drilling. Product A requires 12 minutes of milling, 5 minutes for
inspection, and 10 minutes of drilling per unit; product B requires 10 minutes of milling, 4 ­minutes
for inspection, and 8 minutes of drilling per unit; and product C requires 8 minutes of milling,
4 minutes for inspection, and 16 minutes of drilling. The department has 20 hours available during
the next period for milling, 15 hours for inspection, and 24 hours for drilling. Product A contributes
$2.40 per unit to profit, product B contributes $2.50 per unit, and product C contributes $3.00 per
unit. Determine the optimal mix of products in terms of maximizing contribution to profits for the
period. Then, find the range of optimality for the profit coefficient of each variable.
10. Formulate and then solve a linear programming model of this problem, to determine how many
containers of each product to produce tomorrow to maximize profits. The company makes four
juice products using orange, grapefruit, and pineapple juice.

Product Retail Price per Quart

Orange juice $1.00
Grapefruit juice .90
Pineapple juice .80
All-in-One 1.10

The All-in-One juice has equal parts of orange, grapefruit, and pineapple juice. Each product is
produced in a one-quart size (there are four quarts in a gallon). On hand are 400 gallons of orange
juice, 300 gallons of grapefruit juice, and 200 gallons of pineapple juice. The cost per gallon is
$2.00 for orange juice, $1.60 for grapefruit juice, and $1.40 for pineapple juice.
  In addition, the manager wants grapefruit juice to be used for no more than 30 percent of the
number of containers produced. She wants the ratio of the number of containers of orange juice to
the number of containers of pineapple juice to be at least 7 to 5.
1 1. A wood products firm uses available time at the end of each week to make goods for stock.
Currently, two products on the list of items are produced for stock: a chopping board and a knife
holder. Both items require three operations: cutting, gluing, and finishing. The manager of the
firm has collected the following data on these products.

    TIME PER UNIT (MINUTES)

Item Profit/Unit Cutting Gluing Finishing
Chopping board $2 1.4   5 12
Knife holder $6 0.8 13   3

The manager has also determined that, during each week, 56 minutes are available for cutting, 650
minutes are available for gluing, and 360 minutes are available for finishing.
a. Determine the optimal quantities of the decision variables if the goal is to maximize profit.
b. Which resources are not completely used by your solution? How much of each resource
is unused?
12. The manager of the deli section of a grocery superstore has just learned that the department has
112 pounds of mayonnaise, of which 70 pounds is approaching its expiration date and must be
used. To use up the mayonnaise, the manager has decided to prepare two items: a ham spread
and a deli spread. Each pan of the ham spread will require 1.4 pounds of mayonnaise, and each
pan of the deli spread will require 1.0 pound. The manager has received an order for 10 pans of
ham spread and 8 pans of the deli spread. In addition, the manager has decided to have at least
10 pans of each spread available for sale. Both spreads will cost $3 per pan to make, but ham
spread sells for $5 per pan, and deli spread sells for $7 per pan.
a. Determine the solution that will minimize cost.
b. Determine the solution that will maximize profit.
13. A manager wants to know how many units of each product to produce on a daily basis to achieve
the highest profit. Production requirements for the products are shown in the following table.
852 Chapter Nineteen  Linear Programming

Material 1 Material 2 Labor

Product (pounds) (pounds) (hours)
A 2 3 3.2
B 1 5 1.5
C 6 — 2.0

Material 1 costs $5 a pound, material 2 costs $4 a pound, and labor costs $10 an hour. Product
A sells for $80 a unit, product B sells for $90 a unit, and product C sells for $70 a unit. Available
resources each day are 200 pounds of material 1; 300 pounds of material 2; and 150 hours of labor.
  The manager must satisfy certain output requirements: The output of product A should not be
more than one-third of the total number of units produced; the ratio of units of product A to units
of product B should be 3 to 2; and there is a standing order for 5 units of product A each day. For-
mulate a linear programming model for this problem, and then solve.
14. A chocolate maker has contracted to operate a small candy counter in a fashionable store. To start
with, the selection of offerings will be intentionally limited. The counter will offer a regular mix
of candy made up of equal parts of cashews, raisins, caramels, and chocolates, and a deluxe mix
that is one-half cashews and one-half chocolates, which will be sold in one-pound boxes. In addi-
tion, the candy counter will offer individual one-pound boxes of cashews, raisins, caramels, and
chocolates.
  A major attraction of the candy counter is that all candies are made fresh at the counter. How-
ever, storage space for supplies and ingredients is limited. Bins are available that can hold the
amounts shown in the table.

Capacity
Ingredient (pounds per day)
Cashews 120
Raisins 200
Caramels 100
Chocolates 160
I n order to present a good image and to encourage purchases, the counter will make at least 20
boxes of each type of product each day. Any leftover boxes at the end of the day will be removed
and given to a nearby nursing home for goodwill.
  The profit per box for the various items has been determined as follows.

Profit per
Item Box
Regular $.80
Deluxe .90
Cashews .70
Raisins .60
Caramels .50
Chocolates .75

a. Formulate the LP model.

b. Solve for the optimal values of the decision variables and the maximum profit.
15. Given this linear programming model, solve the model and then answer the questions that follow.
Maximize Z = 12x1 + 18x2 + 15x3 where x1 = the quantity of product 1 to make, etc.
Subject to:
Machine 5​x​ 1​ + 4​x​ 2​ + 3​x​ 3​ ≤ 160 minutes
Labor 4​x​ 1​ + 10​x​ 2​ + 4​x​ 3​ ≤ 288 hours
​ Materials​
    
    
    
     ​  ​   ​ 2​x​ 1​ + 2​x​ 2​ + 4​x​ 3​  ≤​​  200 pounds​
  ​ ​ ​
Product 2 ​x​ 2​ ≤ 16 units
​ ​x​ 1​, ​x​ 2​, ​x​ 3​ ≥ 0
a. Are any constraints binding? If so, which one(s)?
 Chapter Nineteen  Linear Programming 853

b. If the profit on product 3 were changed to $22 a unit, what would the values of the decision
variables be? The objective function? Explain.
c. If the profit on product 1 were changed to $22 a unit, what would the values of the decision
variables be? The objective function? Explain.
d. If 10 hours less of labor time were available, what would the values of the decision variables
be? The objective function? Explain.
e. If the manager decided that as many as 20 units of product 2 could be produced (instead of
16), how much additional profit would be generated?
f. If profit per unit on each product increased by $1, would the optimal values of the decision
variables change? Explain. What would the optimal value of the objective function be?
16. A garden store prepares various grades of pine bark for mulch: nuggets (x1), mini-nuggets (x2),
and chips (x3). The process requires pine bark, machine time, labor time, and storage space. The
following model has been developed.
Maximize Z = 9x1 + 9x2 + 6x3 (profit)
Subject to:
Bark 5​x​ 1​ + 6​x​ 2​ + 3​x​ 3​ ≤ 600 pounds
Machine 2​x​ 1​ + 4​x​ 2​ + 5​x​ 3​ ≤ 600 minutes
​ Labor​
    
    
    
     ​    ​  ​  2​x​ 1​ + 4​x​ 2​ + 3​x​ 3​  ≤​​  480 hours​
  ​ ​​
Storage 1​x​ 1​ + 1​x​ 2​ + 1​x​ 3​ ≤ 150 bags
​ ​x​ 1​, ​x​ 2​, ​x​ 3​ ≥ 0
a. What is the marginal value of a pound of pine bark? Over what range is this price value
appropriate?
b. What is the maximum price the store would be justified in paying for additional pine bark?
c. What is the marginal value of labor? Over what range is this value in effect?
d. The manager obtained additional machine time through better scheduling. How much addi-
tional machine time can be effectively used for this operation? Why?
e. If the manager can obtain either additional pine bark or additional storage space, which one
should she choose and how much (assuming additional quantities cost the same as usual)?
f. If a change in the chip operation increased the profit on chips from $6 per bag to $7 per bag,
would the optimal quantities change? Would the value of the objective function change? If so,
what would the new value(s) be?
g. If profits on chips increased to $7 per bag, and profits on nuggets decreased by $.60, would
the optimal quantities change? Would the value of the objective function change? If so, what
would the new value(s) be?
h. If the amount of pine bark available decreased by 15 pounds, machine time decreased by
27 minutes, and storage capacity increased by five bags, would this fall in the range of feasibil-
ity for multiple changes? If so, what would the value of the objective function be?

CASE SON, LTD.

Son, Ltd., manufactures a variety of chemical products used by to as Q, R, and W. The budget is intended to pay for direct labor
lawn care companies. Son was recently bought out by a conglom- and materials. Processing requirements for the three products, on
erate, and managers of the two organizations have been working a per-unit basis, are shown in the table.
together to improve the efficiency of Son’s operations. Labor Material A Material B
Managers have been asked to adhere to weekly operating Product (hours) (pounds) (pounds)
budgets and to develop operating plans using quantitative meth-
Q 5 2 1
ods whenever possible. The manager of one department has been
given a weekly operating budget of $11,980 for production of R 4 2 —
three chemical products, which for convenience shall be referred W 2 ½ 2
(continued)