Linear Programming Part
Linear Programming Part
- The decision maker has to solve for which product to include and in what quantities should be
included in the production plan that will help achieve profit maximization.
Blending problem
- Deals with finding the best blend of available raw materials or ingredients that will contribute to
cost efficiency.
Decision Variables
Objective Function
- A mathematical expression of the relationship between the decision variable and a single goals.
Goals are given as total profit, total cost, market share etc.
- Expressed as the rate at which the value of the objective function is increased based on the
decision variables.
Constraints
- The use of resources has limitations or production has certain requirements, and these consider
constraints.
Input-Output Coefficients
- The capacities or availability of the varying resources are indicated by their highest or lowest
limit
Optimization
Non-negativity
Advantages
1. Resources are deployed productively and efficiently with the use of linear programming
2. The Approach to decision-making is geared toward objectively. Decision makers improve the
quality of decisions and enhance their ability to come to more sensible conclusions.
3. The optimal use of resources is attained by taking into account the constraints of a production
problem or business scenario
4. Bottlenecks are vital considerations when making a decision
Limitations
1. The decision variables, constrains and objective function are not always linearly related in real
life situations
2. Decision variables do not always result to get an integer value. To round off to the nearest
integer might not give an optimal solution
3. The effects of time and uncertainty are ignored in the linear programming solution
4. Parameters in linear programming are assumed to be constant, which contradicts real business
situations
5. An linear programming is focused on one main objective. On the other hand decisions in real life
are oftentimes characterized by multiple incompatible objectives.
Step1: Identify decision Variables. Gather data on the constraints and explore the applicable objective
function.
Step2: Identify the data/information related to the problem, such as constants and parameters
Step3: Formulate the constraints. Express the constraints in linear equality or inequality based on the
identified decision variables in step 1
Step4: Formulate the objective function. First decide whether the objective is maximization or
minimization. Then, express it in linear mathematical terms using the decision variables, taking into
consideration the problem desired goal ( profit or cost )