Linear Programming:

Model Formulation and

Graphical Solution

Chapter 2

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 Chapter Topics

◼ Model Formulation
◼ A Maximization Model Example
◼ Graphical Solutions of Linear Programming Models
◼ A Minimization Model Example
◼ Irregular Types of Linear Programming Models
◼ Characteristics of Linear Programming Problems

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Linear Programming: An Overview

◼ Objectives of business decisions frequently involve

maximizing profit or minimizing costs.
◼ Linear programming uses linear algebraic relationships
to represent a firm’s decisions, given a business objective,
and resource constraints.
◼ Steps in application:
1. Identify problem as solvable by linear programming.
2. Formulate a mathematical model of the unstructured
problem.
3. Solve the model.
4. Implementation

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Model Components

◼ Decision variables - mathematical symbols representing levels

of activity by the firm.
◼ Objective function - a linear mathematical relationship
describing an objective of the firm, in terms of decision variables
- this function is to be maximized or minimized.
◼ Constraints – requirements or restrictions placed on the firm by
the operating environment, stated in linear relationships of the
decision variables.
◼ Parameters - numerical coefficients and constants used in the
objective function and constraints.

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Summary of Model Formulation Steps

Step 1 : Define the decision variables

Step 2 : Define the objective function

Step 3 : Define the constraints

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LP Model Formulation
A Maximization Example (1 of 3)
Resource Requirements

Labor Clay Profit

Product
(Hr./Unit) (Lb./Unit) ($/Unit)

Bowl 1 4 40
Mug 2 3 50

Figure 2.6 Beaver Creek Pottery Company

◼ Product mix problem - Beaver Creek Pottery Company

◼ How many bowls and mugs should be produced to maximize
profits given labor and materials constraints?
◼ Product resource requirements and unit profit:
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LP Model Formulation
A Maximization Example (2 of 3)

Resource 40 hrs of labor per day

Availability: 120 lbs of clay
Decision x1 = number of bowls to produce per day
Variables: x2 = number of mugs to produce per day
Objective Maximize Z = $40x1 + $50x2
Function: Where Z = profit per day
Resource 1x1 + 2x2  40 hours of labor
Constraints: 4x1 + 3x2  120 pounds of clay
Non-Negativity x1  0; x2  0
Constraints:

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LP Model Formulation
A Maximization Example (3 of 3)

Complete Linear Programming Model:

Maximize Z = $40x1 + $50x2

subject to: 1x1 + 2x2  40

4x2 + 3x2  120
x1, x2  0

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Feasible Solutions

A feasible solution does not violate any of the constraints:

Example: x1 = 5 bowls
x2 = 10 mugs
Z = $40x1 + $50x2 = $700

Labor constraint check: 1(5) + 2(10) = 25 ≤ 40 hours

Clay constraint check: 4(5) + 3(10) = 70 ≤ 120 pounds

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Infeasible Solutions

An infeasible solution violates at least one of the

constraints:

Example: x1 = 10 bowls
x2 = 20 mugs
Z = $40x1 + $50x2 = $1400

Labor constraint check: 1(10) + 2(20) = 50 > 40 hours

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Graphical Solution of LP Models

◼ Graphical solution is limited to linear programming

models containing only two decision variables (can
be used with three variables but only with great
difficulty).

◼ Graphical methods provide visualization of how a

solution for a linear programming problem is obtained.

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Coordinate Axes
Graphical Solution of Maximization Model (1 of 12)

X2 is mugs

Maximize Z = $40x1 + $50x2

subject to: 1x1 + 2x2  40
4x2 + 3x2  120
x1, x2  0

X1 is bowls
Figure 2.2 Coordinates for graphical analysis
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Labor Constraint
Graphical Solution of Maximization Model (2 of 12)

Maximize Z = $40x1 + $50x2

subject to: 1x1 + 2x2  40
4x2 + 3x2  120
x1, x2  0

Figure 2.3 Graph of labor constraint

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Labor Constraint Area
Graphical Solution of Maximization Model (3 of 12)

Maximize Z = $40x1 + $50x2

subject to: 1x1 + 2x2  40
4x2 + 3x2  120
x1, x2  0

Figure 2.4 Labor constraint area

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Clay Constraint Area
Graphical Solution of Maximization Model (4 of 12)

Maximize Z = $40x1 + $50x2

subject to: 1x1 + 2x2  40
4x2 + 3x2  120
x1, x2  0

Figure 2.5 The constraint area for clay

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Both Constraints
Graphical Solution of Maximization Model (5 of 12)

Maximize Z = $40x1 + $50x2

subject to: 1x1 + 2x2  40
4x2 + 3x2  120
x1, x2  0

Figure 2.6 Graph of both model constraints

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Feasible Solution Area
Graphical Solution of Maximization Model (6 of 12)

Maximize Z = $40x1 + $50x2

subject to: 1x1 + 2x2  40
4x2 + 3x2  120
x1, x2  0

Figure 2.7 The feasible solution area constraints

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Objective Function Solution = $800
Graphical Solution of Maximization Model (7 of 12)

Maximize Z = $40x1 + $50x2

subject to: 1x1 + 2x2  40
4x2 + 3x2  120
x1, x2  0

Figure 2.8 Objective function line for Z = $800

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Alternative Objective Function Solution Lines
Graphical Solution of Maximization Model (8 of 12)

Maximize Z = $40x1 + $50x2

subject to: 1x1 + 2x2  40
4x2 + 3x2  120
x1, x2  0

Figure 2.9 Alternative

objective function lines for
profits, Z, of $800, $1,200,
and $1,600

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Optimal Solution
Graphical Solution of Maximization Model (9 of 12)

Maximize Z = $40x1 + $50x2

subject to: 1x1 + 2x2  40
4x2 + 3x2  120
x1, x2  0

Figure 2.10 Identification of optimal solution point

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Optimal Solution Coordinates
Graphical Solution of Maximization Model (10 of 12)

Maximize Z = $40x1 + $50x2

subject to: 1x1 + 2x2  40
4x2 + 3x2  120
x1, x2  0

Figure 2.11 Optimal solution coordinates

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Extreme (Corner) Point Solutions
Graphical Solution of Maximization Model (11 of 12)

Maximize Z = $40x1 + $50x2

subject to: 1x1 + 2x2  40
4x2 + 3x2  120
x1, x2  0

Figure 2.12 Solutions at all corner points

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Optimal Solution for New Objective Function
Graphical Solution of Maximization Model (12 of 12)

Maximize Z = $70x1 + $20x2

subject to: 1x1 + 2x2  40
4x2 + 3x2  120
x1, x2  0

Figure 2.13 Optimal solution with Z = 70x1 + 20x2

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Slack Variables

◼ Standard form requires that all constraints be in the form

of equations (equalities).
◼ A slack variable is added to a  constraint (weak
inequality) to convert it to an equation (=).
◼ A slack variable typically represents an unused resource.
◼ A slack variable contributes nothing to the objective
function value.

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Linear Programming Model: Standard Form

Max Z = 40x1 + 50x2 + s1 + s2

subject to:1x1 + 2x2 + s1 = 40
4x2 + 3x2 + s2 = 120
x1, x2, s1, s2  0
Where:
x1 = number of bowls
x2 = number of mugs
s1, s2 are slack variables

Figure 2.14 Solutions at points A, B, and C with slack

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LP Model Formulation – Minimization (1 of 7)

Figure 2.15 Fertilizing farmer’s field

◼ Two brands of fertilizer available -
Super-gro, Crop-quick.
◼ Field requires at least 16 pounds of
nitrogen and 24 pounds of phosphate.
◼ Super-gro costs $6 per bag, Crop-
quick $3 per bag.
◼ Problem: How much of each brand to
purchase to minimize total cost of Chemical Contribution
fertilizer given following data ? Nitrogen Phosphate
Brand
(lb/bag) (lb/bag)
Super-gro 2 4
Crop-quick 4 3
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LP Model Formulation – Minimization (2 of 7)

Decision Variables:
x1 = bags of Super-gro
x2 = bags of Crop-quick

The Objective Function:

Minimize Z = $6x1 + 3x2
Where: $6x1 = cost of bags of Super-Gro
$3x2 = cost of bags of Crop-Quick

Model Constraints:
2x1 + 4x2  16 lb (nitrogen constraint)
4x1 + 3x2  24 lb (phosphate constraint)
x1, x2  0 (non-negativity constraint)

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Constraint Graph – Minimization (3 of 7)

Minimize Z = $6x1 + $3x2

subject to: 2x1 + 4x2  16
4x2 + 3x2  24
x1, x2  0

Figure 2.16 Constraint lines for fertilizer model

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Feasible Region– Minimization (4 of 7)

Minimize Z = $6x1 + $3x2

subject to: 2x1 + 4x2  16
4x2 + 3x2  24
x1, x2  0

Figure 2.17 Feasible solution area

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Optimal Solution Point – Minimization (5 of 7)

Minimize Z = $6x1 + $3x2

subject to: 2x1 + 4x2  16
4x2 + 3x2  24
x1, x2  0

The optimal solution of

a minimization problem
is at the extreme point
closest to the origin.

Figure 2.18 The optimal solution point

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Surplus Variables – Minimization (6 of 7)

◼ A surplus variable is subtracted from a  constraint to

convert it to an equation (=).
◼ A surplus variable represents an excess above a
constraint requirement level.
◼ A surplus variable contributes nothing to the calculated
value of the objective function.
◼ Subtracting surplus variables in the farmer problem
constraints:
2x1 + 4x2 - s1 = 16 (nitrogen)
4x1 + 3x2 - s2 = 24 (phosphate)

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Graphical Solutions – Minimization (7 of 7)

Minimize Z = $6x1 + $3x2 + 0s1 + 0s2

subject to: 2x1 + 4x2 – s1 = 16
4x2 + 3x2 – s2 = 24
x1, x2, s1, s2  0

Figure 2.19 Graph of the fertilizer example

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Irregular Types of Linear Programming Problems

For some linear programming models, the general rules

do not apply.

Special types of problems include those with:

▪ Multiple optimal solutions
▪ Infeasible solutions
▪ Unbounded solutions

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Multiple Optimal Solutions Beaver Creek Pottery

The objective function is

parallel to a constraint line.
Maximize Z=$40x1 + 30x2
subject to: 1x1 + 2x2  40
4x2 + 3x2  120
x1, x2  0
Where:
x1 = number of bowls
x2 = number of mugs

Figure 2.20 Graph of Beaver Creek Pottery

example with multiple optimal solutions
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An Infeasible Problem

Every possible solution

violates at least one constraint:
Maximize Z = 5x1 + 3x2
subject to: 4x1 + 2x2  8
x1  4
x2  6
x1, x2  0

Figure 2.21 Graph of an infeasible problem

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An Unbounded Problem

Value of the objective

function increases indefinitely:
Maximize Z = 4x1 + 2x2
subject to: x1  4
x2  2
x1, x2  0

Figure 2.22 Graph of an unbounded problem

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Characteristics of Linear Programming Problems

◼ A decision among alternative courses of action is required.

◼ The decision is represented in the model by decision variables.
◼ The problem encompasses a goal, expressed as an objective
function, that the decision maker wants to achieve.
◼ Restrictions (represented by constraints) exist that limit the
extent of achievement of the objective.
◼ The objective and constraints must be definable by linear
mathematical functional relationships.

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Properties of Linear Programming Models

◼ Proportionality - The rate of change (slope) of the objective

function and constraint equations is constant.
◼ Additivity - Terms in the objective function and constraint
equations must be additive.
◼ Divisibility - Decision variables can take on any fractional value
and are therefore continuous as opposed to integer in nature.
◼ Certainty - Values of all the model parameters are assumed to
be known with certainty (non-probabilistic).

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Problem Statement
Example Problem No. 1 (1 of 3)

■ Hot dog mixture in 1000-pound batches.

■ Two ingredients, chicken ($3/lb) and beef ($5/lb).
■ Recipe requirements:
at least 500 pounds of “chicken”
at least 200 pounds of “beef ”
■ Ratio of chicken to beef must be at least 2 to 1.
■ Determine optimal mixture of ingredients that will
minimize costs.

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Solution
Example Problem No. 1 (2 of 3)
Step 1:
Identify decision variables.
x1 = lb of chicken in mixture
x2 = lb of beef in mixture
Step 2:
Formulate the objective function.
Minimize Z = $3x1 + $5x2
where Z = cost per 1,000-lb batch
$3x1 = cost of chicken
$5x2 = cost of beef
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Solution
Example Problem No. 1 (3 of 3)

Step 3:
Establish Model Constraints
x1 + x2 = 1,000 lb
x1  500 lb of chicken
x2  200 lb of beef
x1/x2  2/1 or x1 - 2x2  0
x1, x2  0
The Model: Minimize Z = $3x1 + 5x2
subject to: x1 + x2 = 1,000 lb
x1  50
x2  200
x1 - 2x2  0
x1,x2  0
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Example Problem No. 2 (1 of 3)

Solve the following model

graphically:
Maximize Z = 4x1 + 5x2
subject to: x1 + 2x2  10
6x1 + 6x2  36
x1  4
x1, x2  0

Step 1: Plot the constraints

as equations

Figure 2.23 Constraint equations

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Example Problem No. 2 (2 of 3)

Maximize Z = 4x1 + 5x2

subject to: x1 + 2x2  10
6x1 + 6x2  36
x1  4
x1, x2  0
Step 2: Determine the feasible
solution space

Figure 2.24 Feasible solution space and extreme points

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Example Problem No. 2 (3 of 3)

Maximize Z = 4x1 + 5x2

subject to: x1 + 2x2  10
6x1 + 6x2  36
x1  4
x1, x2  0
Step 3 and 4: Determine the
solution points and optimal
solution

Figure 2.25 Optimal solution point

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