Optimization

Introduction
➢ Linear programming (LP or linear optimisation) is a mathematical method for
determining a way to achieve the best outcome (such as maximum profit or lowest
cost) in a given mathematical model for some list of requirements represented as
linear relationships.
➢ A model consisting of linear relationships representing a firm’s objective and
resource constraints.
➢ LP is a mathematical modeling technique used to determine a level of operational
activity in order to achieve an objective, subject to restrictions called constraints
➢ Linear programming is a specific case of mathematical programming (mathematical
optimisation).
➢ More formally, linear programming is a technique for the optimisation of a linear
objective function, subject to linear equality and linear inequality constraints.
➢ Optimization (either maximised or minimized the objective function )
➢ Linear Programming is a very important tool of quantitative techniques for the best
possible distribution of scarce resources including labor, materials, machinery,
money, energy, and so forth. It is used in almost every aspect of life, whether
marketing or domestic or Production or anything else.
 Types of LPP
• There are various types of LPP based on uses i.e. Product mix, Transportation &
logistics, networking, production, diet requirement, industrial and social problems.
Production Model, Investment Model, Cost Minimization Model, etc. which are
summarized as:-
Types of LPP
 Applications of LPP
1. Product mix problem
2. Diet problem
3. Blending problem
4. Media selection problem
5. Assignment problem
6. Transportation problem
7. Portfolio selection problem
8. Work-scheduling problem
9. Production scheduling problem
10. Inventory Problem
11. Multi period financial problem
12. Capital budgeting problem
13. Many more as discussed above
 Definition and Terms of LPP
1) Linear Function :
Definition :
A function f(x1, x2,......xn) of x1, x2,..... xn is a linear function if and only if for some set
of constants c1, c2,.......cn
f(x1, x2,......xn) = c1x1 + c2x2 + .......... + cnxn

Examples:
i) x1
ii) 5x1+ 6x4- 2x2+1
iii) 3x+5y=7(equality)
2)Linear Inequalities :
Definition :
For any linear functions f(x1, x2,......xn) and any number b, the inequalities.
f(x1, x2,......xn) ≤ b and
f(x1, x2,......xn) > b are linear inequalities.

Examples :
i) x1 + x2 ≤ 4
ii) 5x1 - 4 > 0
iii) 6x+9y=0(equality)
 Definition and Terms of LPP
3) Linear Equalities :
Definition :
For any linear function f(x1, x2,......xn) and any number b, the equality f(x1, x2,......xn) = b is a
linear equality.
4)LP (Linear Programming) :
Definition:
Linear -It is used to describe how two or more variables in a model relate to one another
proportionally and the change in one variable occurs will always follow a given change in
another variable.
Programming :-Program," in this context, has to do with a “plan,” not a computer program or
device some technique-models for doing work in well organized manner. A linear Programming
problem (LP) is an optimisation problem for which :
a)We attempt to maximize (or minimize) a linear function of the decision variables. (objective
function)
b)The values of the decision variables must satisfy a set of constraints, each of which must be
a linear inequality or linear equality.
c)A sign restriction on each variable. For each variable xi the sign restriction can either say
i) xi> 0,
ii) xi ≤ 0,
iii) xi unrestricted (urs).
 Definition and Terms of LPP

5) Solution :
A Solution to a linear program is a setting of the variables and satisfied the inequalities.
6)Feasible region:
The feasible region in a linear program is the set of all possible feasible solutions.
7)Feasible solution:
A feasible solution to a linear program is a solution that satisfies all constraints.
8)Basic and Non basic variables and solutions :
Consider a linear programming problem in which all the constraints are equalities (conversion
can be accomplished with slack and excess variables.)
Definitions :
1)If there are n variables and m constraints, a solution with at most m non-zero values is a
basic solution.
2)In a basic solution, n-m of the zero-valued variables are considered non-basic variables and
the remaining m variables are considered basic variables.
9) Dual of LPP :Duality is the state of having two distinct but related parts. It turns out that every
LP problem has a related problem called the dual problem or dual. The dual is formulated from
information contained in the original problem called the primal problem or primal
 Formulation of LPP
Decision Variables :mathematical symbols representing levels of activity of an
operation
Objective Function:
• A linear relationship reflecting the objective of an operation
• Most frequent objective of business firms is to maximize profit
• Most frequent objective of individual operational units (such as a production or
packaging department) is to minimize cost
Constraint :
a linear relationship representing a restriction on decision making
Non Negativity Restriction : All the decision variables must be non-negativity

Standard LPP/DPP(Condensed matrix notation)

Primal Dual
 Formulation of LPP
There are mainly four steps in the mathematical formulation of linear programming problem
as a mathematical model.
Formulation of LPP
 Solution by Graphical Method
Linear programming with two decision variables can be solved graphically, Although the method
is quite simple the principle of solution is based on certain analytical concepts.

This is one of the simplest method to solve Linear Programming Problems :

Steps:
1)Treat each inequality into equality.
2)Plot the point and Draw line on Graph for equality.
3)Draw the region whether it is towards the origin i.e. (0,0) or away from origin shown
by (  ) arrow.
4)Find out common feasible region. This may be open region or closed polygon.
5)The optimum value is always at vertices of polygon.
6)Substitute the values of vertices in minimize or maximize objective and find the optimum
solution. That is for maximize objective where the solution is maximum and for minimize
objective where the solution is minimum
 Problems on Linear Programme
Ex. No. 1)
A company manufactures two products A & B. Both the product passes through two machines.
M1& M2. The available capacity of each machines time required to each process each unit of
product A & B & Profit per unit of product A & B are given below.

Product Machine One Machine Two Profit per Unit

Q1 M1 M2
A 3 5 25
B 4 6 30
Available Hours 300 320

Formulate the Above Problem as - LPP so as to Maximise profit.

 Problems on Linear Programme
Solution :
I)Decision Variable :
The profit is depend upon the No. of products A & B to be produced.
Let the No. of products A be produced = X &
Let the No. of product B be produce = y.
II)Objective Function :

Our objectives is to maximize profit.
To Maximize profit = f = 25x + 30y .....(I)
III)Constraints :
M1 = M1 requires 3 hours for product A and 4 hours for product B but available Hours are 300.
3x + 4y must be 300 ......(II)
M2 = M2 requires 5 hours for product A and 6 hours for product B but available hours are 320.
5x + 6y 320 ......(III)
IV)Formulation of L.P.P :
To maximize profit = f = 25x + 30y
Subject to = 3x + 4y  300
5x + 6y  320
x> 0
y> 0
 Problems on Linear Programme
Ex. No. 2)
A manufacturer make two types of Lamps A & B requiring treatment by a cutter a
finisher. Lamp A requires 2 hours of cultures time & 1 hour of finisher's time. Lamp B
requires 1 hour of cutter & 2 hours of finishers time.
The cutter has 104 hours & Finisher has 76 hours of available time; each month profit
on 1 Lakh. A is Rs 6 & on Lamp B is Rs.11. Formulate the given problem as L.L.P.
Production Culture Finisher Profit per hr.
A 2 1 6
B 1 2 11
Available Hours 104 76
Problems on Linear Programme
 Problems on Linear Programme

Ex. No. 3)
A company Manufacture two types of presentation goods A and B that requires
Gold & Silver. Each unit of type A requires 4 grams of silver & 1 gram of gold; while that of B
requires 1 gram of silver & 3 grams of gold the availability of silver & gold per day are 120
grams & 100 grams respectively. The manufacturing Cost per unit of type A is Rs 920 & that of
type B is Rs 16. Formulate the above problem as L.L.P. to minimise Cost.
Goods Gold Silver (Profit) Cost Price
A 1 4 920
B 3 1 1600
Available 100 120
 Problems on Linear Programme
Solution:
Problems on Linear Programme
 Problems on Linear Programme

Ex. No. 4)
A dealer wishes to purchase a No. of fans &Sewning Machine he had only Rs 5760 to invest &
he has space for almost 20 items a fan cost Rs. 360 & a sewn machine Rs. 240 his expectation
is that he can sale a fan at a profit of Rs. 22 and sewning machine at a profit of Rs. 18
assuming that he can raise all the items can by formulate his problem L.L.P to maximize his
profit.
Fans 350
Sewing 240
Available 5760
Problems on Linear Programme
Problems on Linear Programme
 Problems on Linear Programme
Ex. No. 5)
A company Manufactures two types of toys A and B. Each Toy of type A requires 1
minutes for costing and 1 minutes of for assembling. Each toy of type B requires 3 min for
cutting and 4 min for assembling. Their are 150 min available for cutting and 160 min for
assembling on selling a toy of type A company gets a profit of Rs. 10 and that on selling a toy
of type B company gets a profit of Rs. 20 formulates the problem as L.P.P. to maximize the
profit.
Toys Cutting Assembling Profit
A 2 1 10
B 3 4 20
Available Time 180 160
Problems on Linear Programme
Problems on Linear Programme
 General Linear Programme Problem
Max/min z = c1x1 + c2x2 + ... + cnxn

subject to:
a11x1 + a12x2 + ... + a1nxn (≤, =, ≥) b1
a21x1 + a22x2 + ... + a2nxn (≤, =, ≥) b2
:
am1x1 + am2x2 + ... + amnxn (≤, =, ≥) bm
All Xij≥0

xj = decision variables
bi = constraint levels
cj = objective function coefficients
aij = constraint coefficients
 Problems on Linear Programme
Ex. No. 6) RESOURCE REQUIREMENTS
Labor Clay Revenue
PRODUCT (hr/unit) (lb/unit) ($/unit)
Bowl 1 4 40
Mug 2 3 50

Maximize revenue if there are 40 hours of labor and 120 pounds of clay
available each day
Lets Decision variables x1 = number of bowls to produce & x2 =
number of mugs to produce.
Maximize Z = $40 x1 + 50 x2
Then Formulated LPP is Subject to
x1 + 2x2  40 hr (labor constraint)
4x1 + 3x2  120 lb (clay constraint)
x1 , x2  0

Solution is x1 = 24 bowls x2 = 8 mugs

Revenue = $1,360
Graphical MethodsGraphical Method
The region of a graph that The convention for linear programming
problems is to leave the feasible region
satisfies all the constraints (which satisfies all inequalities) unshaded.
of a linear programming Graphing software .Always shade the
problem is called the region which satisfies the inequality, so be
careful if using graphing software to check
feasible region. your answers.

It is a well known rule of

flower arranging that the
overall height of the

Height of arrangement (cm)

arrangement should be
between 1.5 and twice the
height of the vase. We can
visualise this on the plot on
the right, with the white
region representing the
feasible region for the
vase/arrangement
combinations.
Height of vase (cm)
 Ex. No. 6) LPP-Graphical Solution

x2
50 –

40 –
4 x1 + 3 x2  120 lb

30 –

20 – Area common to
both constraints

10 – x1 + 2 x2  40 hr

0– | | | | | |
10 20 30 40 50 60 x1
 Computing Optimal Values

x1 + 2x2 = 40
x2
4x1 + 3x2 = 120
40 – 4 x + 3 x  120 lb 4x1 + 8x2 = 160
1 2
-4x1 - 3x2 = -120
30 – 5x2 = 40
x2 = 8
20 –
x1 + 2 x2  40 hr x1 + 2(8) = 40
x1 = 24
10 –
8
0– | | 24 | | x1
10 20 30 40
Z = $50(24) + $50(8) = $1,360
 Extreme Corner Points

x1 = 0 bowls
x2 x2 = 20 mugs
x1 = 224 bowls
Z = $1,000
40 – x2 = 8 mugs
Z = $1,360 x1 = 30 bowls
30 – x2 = 0 mugs
20 – A
Z = $1,200

10 –
B
0– | | | C|
10 20 30 40 x1
 Objective Function

x2
40 –
4x1 + 3x2  120 lb

30 – Z = 70x1 + 20x2
Optimal point:
x1 = 30 bowls
20 –A x2 = 0 mugs
Z = $2,100

10 – B

x1 + 2x2  40 hr
0– | | | C |
10 20 30 40 x1
 LPP-Minimization Problem
Ex. No. 7) CHEMICAL CONTRIBUTION(To minimize Chemical uses)
Brand Nitrogen (lb/bag) Phosphate (lb/bag) Chemical Cost
Gro-plus 2 4 $6
Crop-fast 4 3 $3
Minimum availability 16 24

Minimize Z = $6x1 + $3x2

subject to
2x1 + 4x2  16 lb of nitrogen
4x1 + 3x2  24 lb of phosphate
x1, x2  0
LPP-Minimization Problem-Graphical Solution

x2

14 –
x1 = 0 bags of Gro-plus
12 – x = 8 bags of Crop-fast
2

10 –
Z = $24

8–A
Z = 6x1 + 3x2
6–

4–
B
2–
C
0– | | | | | | |
2 4 6 8 10 12 14 x1
 Ex. No. 8) LPP on Assignment problem
Example
A law firm maintains a large staff of young attorneys who hold the
title of junior partner. The firm concerned with the effective
utilization of this personnel resources, seeks some objective means
of making lawyer-to-client assignments.
On march 1, four new clients seeking legal assistance came to the
firm. While the current staff is overloads and identifies four junior
partners who, although busy, could possibly be assigned to the
cases.
Each young lawyer can handle at most one new client. Furthermore
each lawyer differs in skills and specialty interests.
Seeking to maximize the overall effectiveness of the new client
assignment, the firm draws up the following table, in which he
rates the estimated effectiveness (of a scale of 1 to 9) of each
lawyer on each new case.

35
 Ex. No. 8) LPP on Assignment problem
Model Formulated in tabular form as:-
[sum of total assigned values in row and column equal 1]
 Ex. No. 9) LPP on Transportation problem
Example
The Top Speed Bicycle Co. manufactures and markets a line of 10-speed
bicycles nationwide. The firm has final assembly plants in two cities
in which labor costs are low, New Orleans and Omaha.
Its three major warehouses are located near the larger market areas of
New York, Chicago, and Los Angeles.
The sales requirements for next year at the New York warehouse are
10000 bicycles, at the Chicago warehouse 8000 bicycles, and at the
Los Angeles warehouse 15000 bicycles.
The factory capacity at each location is limited. New Orleans can
assemble and ship 20000 bicycles; the Omaha plant can produce
15000 bicycles per year.
The cost of shipping one bicycle from each factory to each warehouse
differs, and these unit shipping costs are:

37
Ex. No. 9) LPP on Transportation problem

38
Network Distribution Models
Network Distribution Models
 Network Distribution Models

One of the main products of the P & T

Company is canned peas. The peas are
prepared at 3 canneries : Bellingham,
Washington; Eugene, Oregon; Albert Lea,
Minnesota and then shipped by truck to 4
distributing warehouses in the western
United States (Sacramento, California;
Salt Lake City, Utah; Rapid City, South
Dakota; Albuquerque, New Mexico).
 Network Distribution Models
• Network models are applicable to an enormous variety of decision problems that can be modeled
as networks optimization problems and solved efficiently and effectively.
• Some of these decision problems are really physical problems such as transportation or flow of
commodities. However, many network problems are more of an abstract representation of
processes or activities such as the critical path activity network in project management.
• The family of network optimization problems includes assignment, critical path, max flow,
shortest path, transportation, and min cost flow problems. These problems are easily stated by
using a network of arcs, and nodes.
• What is a node? Often called a vertex, or point. It is normally represented by a circle. In a
transportation Network, these might be locations or cities on a map.
• What is an arc? Often called an edge, or arrow. It may be either directed or undirected.
• The head is the destination, the tail is the origin. The head and tail are Nodes that are at either
end. In a transportation network, the Arcs might be roads, or navigation channels in rivers, or
aircraft flight patterns. They supply connectivity between the Nodes.
• A one-way street might be represented by a directed arc. A two-way street might be an
undirected arc or by two directed arcs that point in opposite directions.
 Network Distribution Models
• Objective:-
• To determining the optimal solution for distribution network problems.
• To determining shortest route between any two paces.
• To minimize the transportation cost between two places with maximize the efficiency of
transportation between any two points.
• To minimize the total time to complete a set of tasks, or to maximize skill ratings, or to minimize
the cost of the assignments.
Technique of networking distribution models includes using the idea of network. :-
• Transportation problem- the goal is to find the most cost effective way to transport the goods
• Assignment Problems- to assign one job to each applicant in such a way as to achieve the
minimum possible total cost
• Shortest Route Problem(Dijkstra’s algorithm)- to determine the best way to traverse a
network to get from an origin to a given destination as cheaply as possible
• Maximal Flow Problem(Ford-Fulkerson algorithm)-In a network with flow capacities on the
arcs, the problem is to determine the maximum possible flow from the source to the sink while
honoring the arc flow capacities(kij). Consider a network with m nodes and n arcs with a single
commodity flow. Denote the flow along arc (i to j) by Xij.
Network Distribution Models
Network Distribution Models