USING MATHEMATICS TO SOLVE REAL WORLD PROBLEMS

Abstract

In this paper, to study the applications of Linear Programming( The BIG M Method ) in Business

problems. First we mention construct the Linear Programming Model ( LP Model ). Secondly,

Slack variables, Surplus Variables, Artificial Variables and Modified Problem. Then by using the

BIG M Method to solve the maximization and minimization of real life Business Problems.

Key Words : Linear Programming ( L P ), The Big M Method

1. INTRODUCTION

An algebraic method of solving the standard form of a linear programming problem

( l.p.p ) which allows the solution of multivariable problems.

1.1 Objectives

This study examined relationships between quality of life in people and cognitive

functioning in both abstract and real-world problem solving.

1.2 A Standard Maximization Problem in Standard Form

A linear programming problem( l p p ) is said to be a standard maximization

problem in standard form if its mathematical model is of the following form:

 2

Maximize the objective function

Subject to the problem constraints of the form

With non-negative constraints

1.3 Slack variables

To adopt a linear programming problem to the matrix methods used in the

simplex process, we convert the problem constraint inequalities into a system of linear equations

by using a simple device called a slack variable. In particular, to convert the system of problem

constraint inequalities from

--------------- *

into a system of equations, we add variables and to the left sides of * to obtain

The variables and are called slack variables because each makes up the difference ( take

up the slack ) between the left and right sides of the inequalities in *.

1.4 An Introduction to the BIG M Method

We introduce the big M method through a simple maximization problem with

mixed problem constraints. The key parts of the method will then be summarized and applied to

more complex problems.

 3

Consider the following problem:

Maximize

Subject to

-------------(1)

To form an equation out of the first inequality, we introduce a slack variable , as before, and

write

How can we form an equation out of the second inequality ? We introduce a second variable

and subtract it form the left side so that we can write

The variable is called a surplus variable, because it is the amount (surplus) by which the left

side of the inequality exceeds the right side.

We now express the linear programming problem (1) as a system of equations

------------- (2)

It can be shown that a basic solution of (2) is not feasible if any of the variables ( excluding P )

are negative. Thus, a surplus variable is required to satisfy the non-negative constraint.

The basic solution found by setting the nonbasic variables equal to 0 is

 4

But this basic solution is not feasible, since the surplus variable is negative (which is a

violation of the nonnegative requirements of all variables except P ). The simplex method works

only when the basic solution for a tableau is feasible, so we cannot solve this problem simply by

writing the tableau for (2) and starting pivot operations.

In order to use the simplex method on problems with mixed constraints, we turn

to an ingenious device called an artificial variable. This variable has no physical meaning in

the original problem (which explains the use of the word " artificial ") and is introduced solely

for the purpose of obtaining a basic feasible solution so that we can apply the simplex method.

An artificial variable is a variable introduced into each equation that has a surplus variable. As

before, to ensure that we consider only feasible basic solutions, an artificial variable is required

to satisfy the nonnegative constraint.

Returning to the problem at hand, we introduce an artificial variable into the

equation involving the surplus variable :

To prevent an artificial variable from becoming part of an optimal solution to the

original problem, a very large " penalty " is introduced into the objective function. This penalty

is created by choosing a positive constant M so large that the artificial variable is forced to be 0

in any final optimal solution of the original problem. We then add the term to the

objective function :

We now have a new problem , which we call the modified problem:

 5

Maximize

Subject to

----------------- (3)

The initial system for the modified problem (3) is

------------ (4)

We next write the augmented coefficient matrix for (4), which we call the preliminary simplex

tableau for the modified problem .

2. THE BIG M METHOD

The Big M Method – Introducing Slack, Surplus and Artificial Variables to Form the

Modified Problem

Step 1 - If any problem constraints have negative constants on the right side, multiply

both sides by ( -1) to obtain a constraint with a nonnegative constant. (If the

constraint is an inequality , this will reverse the direction of the inequality. )

Step 2 - Introduce a slack variable in each constraint.

Step 3 - Introduce a surplus variable and an artificial variable in each constraint.

Step 4 - Introduce an artificial variable in each constraint.

Step 5 - For each artificial variable , add to the objective function .

Use the same constant M for all artificial variables.

 6

2.1 Example Find the modified problem for the following linear programming problem.

( Do not attempt to solve the problem )

Maximize

Subject to

Solution :

First, we multiply the second constraint by −1 to change −5 to 5.

Next,

We introduce the slack, surplus, and artificial variables according to the rules stated in the box

Finally,

We add to the objective function :

The modified problem is

 7

Maximize

Subject to

2.2 The Big M Method − Solving the Problem

STEP – 1 From the preliminary simplex tableau for the modified problem.

STEP – 2 Use row operations to eliminate the M 's in the bottom row of the preliminary

simplex tableau in the columns corresponding to the artificial variables. The

resulting tableau is the initial simplex tableau.

STEP – 3 Solve the modified problem by applying the simplex method to the initial simplex

tableau found in STEP – 2.

STEP – 4 Relat the solution of the modified problem to the original problem.

( A) If the modified problem has no solution, then the original problem has no solution.

(B) If all artificial variables are 0 in the solution to the modified problem, the delete the

artificial variables to find a solution to the original problem.

(C) If any artificial variables are nonzero in the solution to the modified problem, then the
original problem has no solution.

2.3 Petroleum Blending

A refinery produces two grades of gasoline, regular and premium, by blending together two
 8

components, A and B. Component A has an octane rating of 90 and costs $28 a barrel.

Component B has an octane rating of 110 and costs $32 a barrel . The octane rating for regular

gasoline must be at least 95, and the octane rating for premium must be at least 105. Regular

gasoline sells for $34 a barrel and premium sells for $40 a barrel. Currently, The company has

30,000 barrels of component A and 20,000 barrels of component B. It also has orders for 20,000

barrel s of regular and 10,000 barrels of premium that must be filled. Assuming that all the

gasoline produced can be sold, determine the maximum possible profit .

Solution:

First we organize the information given in the problem in table

Component Octane Rating Cost Available Supply

A 90 $28 30,000 barrels

B 110 $32 20,000 barrels

Grade Minimum Octane Rating Selling Price Existing orders

Regular 95 $34 20,000 barrels

Premium 105 $40 10,000 barrels

Let = Number of barrels of component A used in regular gasoline

= Number of barrels of component A used in premium gasoline

= Number of barrels of component B used in regular gasoline

= Number of barrels of component B used in premium gasoline

The total amount of component A used is .

 9

The total amount of component B used is .

The amount of regular and premium gasoline produced must be sufficient to meet the existing

orders

Regular

Premium

Now consider the octane ratings.

The octane rating of regular gasoline must be at least 95 ; thus

90

The octane rating of premium gasoline must be at least 105; thus

90

The cost of the components used is

C = 28( )
 10

The revenue from selling all the gasoline is

R = 34( )

The profit is

= 34( ) 28( )

To find the maximum profit , we must solve the following linear programming problem

Maximize

Subject to

and
 11

Maximize

Subject to
 1 1 0 0 1 0 0 0 0 0 0 0 0 0 0 30,000 Eliminate M

0 0 1 1 0 1 0 0 0 0 0 0 0 0 0 20,000 from column

1 0 1 0 0 0 1 1 0 0 0 0 0 0 0 20,000

0 1 0 1 0 0 0 0 1 0 0 0 0 0 10,000

-5 0 15 0 0 0 0 0 0 0 1 0 0 0 0

0 -15 0 5 0 0 0 0 0 0 0 0 1 0 0
-----------------------------------------------------------------------------------------------------------------------------

-6 -12 -2 -8 0 0 0 M 0 M 0 M 0 M 1 0

12
1 1 0 0 1 0 0 0 0 0 0 0 0 0 0 30,000 Eliminate M

0 0 1 1 0 1 0 0 0 0 0 0 0 0 0 20,000 from column

1 0 1 0 0 0 1 0 0 0 0 0 0 0 20,000

0 1 0 1 0 0 0 0 1 0 0 0 0 0 10,000

-5 0 15 0 0 0 0 0 0 0 1 0 0 0 0

0 -15 0 5 0 0 0 0 0 0 0 0 1 0 0
--------------------------------------------------------------------------------------------------------------------------------
-M-6 -12 -M-2 -8 0 0 M 0 0 M 0 M 0 M 1 -20,000M
 1 1 0 0 1 0 0 0 0 0 0 0 0 0 0 30,000 Eliminate M

0 0 1 1 0 1 0 0 0 0 0 0 0 0 0 20,000 from column

1 0 1 0 0 0 1 0 0 0 0 0 0 0 20,000

0 1 0 1 0 0 0 0 1 0 0 0 0 0 10,000

-5 0 15 0 0 0 0 0 0 0 1 0 0 0 0

0 -15 0 5 0 0 0 0 0 0 0 0 1 0 0
-----------------------------------------------------------------------------------------------------------------------------

-M-6 -M-12 -M-2 -M-8 0 0 M 0 M 0 0 M 0 M 1 -30,000M

13
1 1 0 0 1 0 0 0 0 0 0 0 0 0 0 30,000 Eliminate M

0 0 1 1 0 1 0 0 0 0 0 0 0 0 0 20,000 from column

1 0 1 0 0 0 1 0 0 0 0 0 0 0 20,000

0 1 0 1 0 0 0 0 1 0 0 0 0 0 10,000

−5 0 15 0 0 0 0 0 0 0 1 0 0 0 0

0 −15 0 5 0 0 0 0 0 0 0 0 1 0 0
-----------------------------------------------------------------------------------------------------------------------------
4M-6 -M-12 -16M-2 -M-8 0 0 M 0 M 0 M 0 0 M 1 -30,000M
 Enter

1 1 0 0 1 0 0 0 0 0 0 0 0 0 0 30,000

0 0 1 1 0 1 0 0 0 0 0 0 0 0 0 20,000

1 0 1 0 0 1 0 0 0 0 0 0 0 20,000

0 1 0 1 0 0 0 0 1 0 0 0 0 0 10,000

Exit 0 15
15 0 0 0 0 0 0 0 1 0 0 0 0

0 0 5 0 0 0 0 0 0 0 0 1 0 0
-----------------------------------------------------------------------------------------------------------------------------------

14
4M-6 14M-12 -16M-2 -6M-8 0 0 M 0 M 0 M 0 M 0 1 -30,000M

1 1 0 0 1 0 0 0 0 0 0 0 0 0 0 30,000
0 0 1 1 0 1 0 0 0 0 0 0 0 0 0 20,000

1 0 1 0 0 0 1 0 0 0 0 0 0 0 20,000

0 1 0 1 0 0 0 0 1 0 0 0 0 0 10,000

0 1 0 0 0 0 0 0 0 0 0 0 0

0 -15 0 5 0 0 0 0 0 0 0 0 1 0 0
--- -----------------------------------------------------------------------------------------------------------------------------------

4M-6 14M-12 -16M-2 -6M-8 0 0 M 0 M 0 M 0 M 0 1 -30,000M

 Enter

1 1 0 0 1 0 0 0 0 0 0 0 0 0 0 30,000

0 0 1 0 1 0 0 0 0 0 0 0 20,000

0 0 0 0 0 1 0 0 0 0 0 20,000

0 1 0 1 0 0 0 0 1 0 0 0 0 0 10,000

0 1 0 0 0 0 0 0 0 0 0 0 0

Exit 0 0 5 0 0 0 0 0 0 0 0 1 0 0

------------------------------------------------------------------------------------------------------------------------------------

15
14M-12 0 -6M-8 0 0 M 0 M 0 M 0 1

1 1 0 0 1 0 0 0 0 0 0 0 0 0 0 30,000

0 0 1 0 1 0 0 0 0 0 0 0 20,000

0 0 0 0 0 1 0 0 0 0 0 20,000

0 1 0 1 0 0 0 0 1 0 0 0 0 0 10,000

0 1 0 0 0 0 0 0 0 0 0 0 0

0 -3 0 1 0 0 0 0 0 0 0 0 0 0

---------------------------------------------------------------------------------------------------------------------------------------

14M-12 0 -6M-8 0 0 M 0 M 0 M 0 1
 Enter

1 1 0 0 1 0 0 0 0 0 0 0 0 0 0 30,000

3 0 0 0 1 0 0 0 0 0 20,000

0 0 0 0 0 1 0 0 0 0 0 20,000

Exit 0 4 0 0 0 0 0 0 1 0 0 0 10,000

0 1 0 0 0 0 0 0 0 0 0 0 0

0 0 1 0 0 0 0 0 0 0 0 0 0

------------------------------------------------------------------------------------------------------------------------------------

16
- 4M-36 0 0 0 0 M 0 M 0 1

1 1 0 0 1 0 0 0 0 0 0 0 0 0 0 30,000

3 0 0 0 1 0 0 0 0 0 20,000

0 0 0 0 0 1 0 0 0 0 0 20,000

0 1 0 0 0 0 0 0 0 0 0 2,500

0 1 0 0 0 0 0 0 0 0 0 0 0

0 -3 0 1 0 0 0 0 0 0 0 0 0 0

------------------------------------------------------------------------------------------------------------------------------------

- 4M-36 0 0 0 0 M 0 M 0 1
 Enter

1 0 0 0 1 0 0 0 0 0 0 27,500

0 0 0 0 1 0 0 0 12,500

Exit 0 0 0 0 0 1 0 0 0 0 0 20,000

0 1 0 0 0 0 0 0 0 0 0 2,500

0 1 0 0 0 0 0 0 0 0 0 0 0

0 0 0 1 0 0 0 0 0 0 0 7,500

--------------------------------------------------------------------------------------------------------------------------------------------

17
0 0 0 0 0 M 0 M+9 1

1 0 0 0 1 0 0 0 0 0 0 27,500

0 0 0 0 1 0 0 0 12,500

1 0 0 0 0 0 0 0 0 0 0 15,000

0 1 0 0 0 0 0 0 0 0 0 2,500

0 1 0 0 0 0 0 0 0 0 0 0 0

0 0 0 1 0 0 0 0 0 0 0 7,500

--------------------------------------------------------------------------------------------------------------------------------------------

0 0 0 0 0 M 0 M+9 1
 Enter

0 0 0 0 1 0 0 12,500

Exit 0 0 0 0 1 0 7,500

1 0 0 0 0 0 0 0 0 0 0 15,000

0 1 0 0 0 0 0 0 0 0 0 25,000

0 1 0 0 0 0 0 0 0 0 5,000

0 0 0 1 0 0 0 0 0 0 0 7,500

-------------------------------------------------------------------------------------------------------------------------------------

18
0 0 0 0 0 M+5 M+9 1 190,000

0 0 0 0 1 0 0 12,500

0 0 0 0 1 0 10,000

1 0 0 0 0 0 0 0 0 0 0 15,000

0 1 0 0 0 0 0 0 0 0 0 25,000

0 1 0 0 0 0 0 0 0 0 5,000

0 0 0 1 0 0 0 0 0 0 0 7,500

---------------------------------------------------------------------------------------------------------------------------------------

0 0 0 0 0 M+5 M+9 1 190,000

 Enter

Exit 0 0 0 0 1 0 0 0 10,000

0 0 0 0 1 0 10,000

1 0 0 0 0 0 0 0 0 0 0 15,000

0 1 0 0 0 0 5,000

0 1 0 0 0 0 0 0 0 0 5,000

0 0 0 1 0 1 0 15,000

-------------------------------------------------------------------------------------------------------------------------------------

19
0 0 0 0 12 M+2 M 1 280,000

0 0 0 0 1 0 0 0 15,000

0 0 0 0 1 0 10,000

1 0 0 0 0 0 0 0 0 0 0 15,000

0 1 0 0 0 0 5,000

0 1 0 0 0 0 0 0 0 0 5,000

0 0 0 1 0 1 0 15,000

-------------------------------------------------------------------------------------------------------------------------------------

0 0 0 0 12 M+2 M 1 280,000
 0 0 0 0 1 0 0 0 15,000

0 0 0 0 0 5,000

1 0 0 0 0 0 0 26,250

0 1 0 0 0 3,750

0 1 0 0 0 0 8,750

0 0 0 1 0 0 0 0 11,250

-------------------------------------------------------------------------------------------------------------------------------------------

20
P 0 0 0 3 11 M M 1 310,000

The refinery should blend 26,250 barrels of component A and 8,750 barrels of component B to produce 35,000 barrels of regular.

They should blend 3,750 barrels of component A and 11,250 barrels of component B to produce 15,000 barrels of premium.

They will result in a maximum profit of $310,000.

 21

3. Minimization By The BIG M Method

The Big M method can be used to solve minimization problems. To minimize an

objective function, we have only to maximize its negative. Figure illustrates the fact that the

minimum value of a function f occurs at the same point as the maximum value of the function

– . Furthermore, if m is the minimum value of f , then – is the maximum value of and

conversely. Thus, we can find the minimum value of a function f by finding the maximum

value of – and then changing the sign of the maximum value.

m ---------------- •

O X

-m -------------------

3.1 Manufacturing – Production Scheduling

A tire company has plants in Chicago and Detroit . The Chicago plant can make 600 radials and

100 standard tires per day . The Detroit plant can make 300 radials and 100 standard tires per

day. Its costs $20,000 per day to operate the Chicago plant and $15,000 per day to operate the
 22

Detroit plant. The company has a contract to make at least 24,000 radials and 5,000 standard

tires. How many days should each plant be scheduled to minimize operating costs?

solution

Let = number of days the Chicago plant operate

= number of days the Detroit plant operate

The number of radial tires produced is

The number of standard tires produced is

The operating expenses are

The linear programming problem is as follows:

Minimize C =

Subject to

Maximize =

Subject to

State the modified problem

Maximize

Subject to
 23

600 300 1 0 0 0 24,000 Eliminate M from

100 100 0 0 1 0 5,000 column

------------------------------------------------------------------------
P 20,000 15,000 0 M 0 M 1 0

600 300 1 0 0 0 24,000 Eliminate M from

100 100 0 0 1 0 5,000 column

------------------------------------------------------------------------
M

+ 20,000 + 15,000 M 0 0 M 1

Enter

Exit 600 300 1 0 0 0 24,000

100 100 0 0 1 0 5,000

---------------------------------------------------------------------

P + 20,000 + 15,000 M 0 M 0 1

1 0 0 0 40

100 100 0 0 1 0 5,000

------------------------------------------------------------------------

+20,000 + 15,000 M 0 M 0 1
 24

Enter

1 0 0 0 40

Exit 0 500 1 0 1,000

---------------------------------------------------------------------

P 0 +5,000 M 0 1

1 0 0 0 40

0 1 0 20

---------------------------------------------------------------------

0 +5,000 M 0 1

1 0 30

0 1 0 20

----------------------------------------------------------------------------------

P 0 0 100 1

Since the bottom row has no negative indicator the optimal solution for the modified problem is

Thus

Min C =

The minimum operating costs are $900,000 when the Chicago plant operates 30 days and the

Detroit plant operates 20 days.

 25

4. Conclusion

This paper is to teach the various tools and techniques so that we will be able to

solve the various real life business problems.

Acknowledgement

I am extremely grateful to Dr. Yi Yi Win, Rector, Co-operative University, Thanlyin. I special

Thanks to Daw Hninn Moe San, Professor and Head, Department of Mathematics, Co-operative

University, Thanlyin. I would like to thank all people help to me for this paper.

References

1. Raymond A Barnet & Michael R. Ziegler, Finite Mathematics, For Business, Economics,

Life Sciences, and Social Sciences, Fifth Edition, 1990.

2. Howard L.Rolf, Raymond J.Cannon, Jr. & Gaerth Willams, Mathematics for Management,

Social & Life Sciences, Wm.C.Brown Publishers, 1991.