Optimal Resource Allocation:
a. Define Decision Variables:
Identify the resources to be allocated (e.g., labor, materials,
machines).
Define decision variables for the allocation (e.g. Xij representing
the quantity of resource i allocated to task j).
b. Formulate the Objective Function:
Decide on the objective, such as maximizing profit or minimizing
costs.
Construct the objective function based on the decision variables
and their contributions to the goal.
c. Set Up Constraints:
List the constraints related to resource availability, production
capacities, and any other relevant limitations.
Include constraints as mathematical expressions.
d. Choose Optimization Software or Tools:
Select a tool to implement and solve your linear programming
model. Options include Excel Solver, Python with PuLP or Gurobi,
or other optimization software.
e. Sensitivity Analysis:
After solving the model, perform sensitivity analysis to understand
how changes in resource availability or demand affect the optimal
solution.
In linear programming problem, the method commonly used for
optimal resource allocation is the simple method. It is an iterative
algorithm that systematically explores the feasible region of the
problem to find the optimal solution. By optimizing a linear objective
function subject to linear constraints, the simplex method helps
determine the best allocation of resources to maximize the desired
outcome. It's a powerful tool for solving optimization problems.
Real-World Problem: Production Planning in a Factory
Objective: A factory produces two types of products, Product X and
Product Y. The goal is to maximize the profit from production.
Decision Variables:
x: Number of units of Product X to be produced
y: Number of units of Product Y to be produced
Objective Function:
Maximize z = 5x + 3y (where 5 is the profit per unit of Product X and 3
is the profit per unit of Product Y)
Constraints:
2x + y ≤ 20 : Limit on the total amount of raw material available
4x − 5y≥−10 : Production capacity constraint
x,y ≥ 0 : Non-negativity constraints
In this scenario, the company wants to determine the optimal
production quantities for Products X and Y to maximize profit,
considering the limitations imposed by the available resources and
production capacity.
By applying the simplex method, the company can iteratively adjust the
production quantities to move towards the optimal solution. The
simplex method helps in finding the values of x and y that maximize the
profit function while satisfying all constraints.
Objective Function :
Maximize z = 5x+3y
Subject to ;
2x + y ≤ 20
4x-5y ≤ -10
X,y ≥ 0
Solution :-
Maximize z = 5x+3y
Subject to ;
2x + y ≤ 20
- 4x + 5y ≤ 10
x, y ≥ 0
Standard form :
Maximize z = 5x + 3y + 0s₁ + 0s2
Subject to ;
2x + y + s₁ = 20
- 4x + 5y + s2 = 10
5 3 0 0
C.B B.V x y s₁ s2 Sol Ratio
0 s₁ 2 1 1 0 20 10
0 s2 -4 5 0 1 10 -5/2
zj 0 0 0 0
Cj-zj 5 3 0 0
5 3 0 0
C.B B.V x y s₁ s2 Sol Ratio
5 x 1 1/2 1/2 0 10 20
0 s2 0 7 2 1 50 50/7
zj 5 5/2 5/2 0
Cj-zj 0 1/2 -5/2 0
5 3 0 0
C.B B.V x y s₁ s2 Sol
5 x 1 0 5/14 -1/14 45/7
3 y 0 1 2/7 1/7 50/7
zj 5 3 37/14 1/14
Cj-zj 0 1/2 -37/14 -1/14
Stopping criteria of simplex method maximization problem is :-
Cj-zj ≤ 0
X = 45/7
y = 50/7
Max z = 5x + 3y
By putting the values of x and y we get ;
Max z = 5(45/7) + 3 (50/7)
Max z = 225/7 + 150/7
Max z = 375/7
So, the maximum profit by using optimal production quantities for
Products X and Y is 375/7.
