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1 Linear Programming

Linear programming is an optimization technique that seeks to maximize or minimize an objective function subject to constraints. It involves decision variables, an objective function representing goals, and constraints representing limitations. An example problem involves an mining company with two mines that have different production capacities and costs. The problem is to determine how many days per week each mine should operate to fulfill contractual obligations of supplying different grades of ore at minimum total cost. The solution models this as a linear program to graphically determine the optimal number of days for each mine.

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hafidh aulia muhammad
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28 views

1 Linear Programming

Linear programming is an optimization technique that seeks to maximize or minimize an objective function subject to constraints. It involves decision variables, an objective function representing goals, and constraints representing limitations. An example problem involves an mining company with two mines that have different production capacities and costs. The problem is to determine how many days per week each mine should operate to fulfill contractual obligations of supplying different grades of ore at minimum total cost. The solution models this as a linear program to graphically determine the optimal number of days for each mine.

Uploaded by

hafidh aulia muhammad
Copyright
© © 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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Linear Programming for Optimization

BDA JOPR 101


Components
• Decision Variables
Mathematical symbols representing levels of activity.
• Objective Function
A linear mathematical relationship that describes the objectives of the firm in
terms of the decision variables.
• Constraint
Linear relationships of the decision variables that represent the restrictions
placed on the firm by the operating environment.

BDA JOPR 101


Characteristics
1. Problems seek to maximize or minimize an
objective: Objective Function
2. Constraints limit the degree to which objective
can be obtained
3. Mathematical relationships are linear

BDA JOPR 101


Example: Ebel Mining Company

It owns two different mines that produce a given kind of ore. The mines are located in
different parts of country and hence have different production capacities and ore
quality. After crushing, the ore is graded into three classes: high, medium, and low.

Ebel has contracted to provide its parent company’s smelting plant with 12 tons of
high-grade, 8 tons of medium-grade, and 24 tons of low-grade ore per week. It costs
Ebel $20,000 per day to run the first mine and $ 16,000 per day to run the second.

However, in a day’s operation the first mine produces 6 tons of high-grade, 2 tons of
medium-grade, and 4 tons of low-grade, while the second mine produces daily 2 tons
of high-grade, 2 tons of medium-grade, and 12 tons of low-grade ore. How many days
a week should each mine operated in order to fulfill Ebel’s commitment most
economically?

BDA JOPR 101


Solution: Ebel Mining Co.
• Number of production days per week mine 1 = M1
Number of production days per week mine 2 = M2
• Objective Function
Min 20,000 M1 + 16,000 M2
• Constraint
6 M1 + 2 M2  12 (High-grade ore requirement)
2 M1 + 2 M2  8 (Med-grade ore requirement)
4 M1 + 12 M2  24 (Low-grade ore requirement )
M1, M2  7 (Days in a week)
M1 0, M2  0 (Non-negativity constraints)

BDA JOPR 101


Graphical Solution of Linear Programming Models

Graphical solution is limited to linear programming models


containing only two decision variables.
Graphical methods provide visualization of how a solution for
a linear programming problem is obtained.

BDA JOPR 101


Solution: Ebel Mining Co.

M2
8
: 0.0 M1 + 1.0 M2 = 7.0
7

6
: 1.0 M1 + 0.0 M2 = 7.0

5
Payoff: 20000.0 M1 + 16000.0 M2 = 68000.0
4 Optimal solution : M1= 1, M2= 3
3
Optimal Value : 68,000
: 6.0 M1 + 2.0 M2 = 12.0
2
: 4.0 M1 + 12.0 M2 = 24.0

1
: 2.0 M1 + 2.0 M2 = 8.0
0
M1
0 1 2 3 4 5 6 7 8

Optimal Decisions(M1,M2): ( 1.0, 3.0)


: 6.0M1 + 2.0M2 >= 12.0
: 2.0M1 + 2.0M2 >= 8.0
: 4.0M1 + 12.0M2 >= 24.0
: 1.0M1 + 0.0M2 <= 7.0
: 0.0M1 + 1.0M2 <= 7.0
BDA JOPR 101
Thank you

BDA JOPR 101

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