Linear Programming

Quantitative Transportation Problem

Assignment Problem
Methods Prof Punit Neb

Quantitative Methods – Linear Programming Transportation Problem

Assignment Problem by Punit Neb is licensed under CC BY-NC 4.0
Pre-session Essential OER

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Basics of LPP
https://www.youtube.com/watch?v=5-BnD1hSiWw
Learning Outcome

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Understand the structure of an LP Model
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Formulate a given simplified description of a suitable real-world
problem as a linear programming model
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Sketch a graphical representation of a two-dimensional linear
programming model
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Formulate a Transportation Problem as an LPP
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Formulate a Assignment Problem as an LPP
Contents
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Introduction
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Linear Programming [LP]
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Structure of an LP Model
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LPP Solution
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LPP Graphical Method
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Special Class of LPP
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LPP Formulation of a Transportation Problem
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LPP Formulation of an Assignment Problem
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Numericals
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References
Introduction
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In 1947, during World War II, George B Dantzing while working with
the US Air Force, developed LP model, primarily for solving military
logistics problems
●
Post World War II, the LP model was deployed to solve business
problems
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As times progressed, LP model was extensively being used in all
functional areas of management, airlines, agriculture, military
operations, oil refining, education, energy planning, pollution control,
transportation planning and scheduling, research and development,
health care systems, etc
… Introduction
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Even though the applications of LP are diverse, all LP models
consist of certain common properties and assumptions
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Optimization
An act, process, or methodology of making something (such as a
design, system, or decision) as fully perfect, functional, or
effective as possible. Specifically: the mathematical procedures
(such as finding the maximum of a function)
●
Optimization is an important and fascinating area of management
science
… Introduction
●
Linear programming [LP] is a central topic in optimization and operations
research - it helps to do less work, but gain more
●
LP provides a powerful tool in modeling many applications
●
LP has attracted most of its attention and practically efficient techniques in
optimization during the last six decades for two main reasons
– Applicability
Many real- world applications that can be modeled as LP
– Solvability
There are theoretical and practical techniques for solving large-scale problems
Linear Programming [LP]
●
Linear programming [LP] is a mathematical technique useful for allocation
of scarce or limited resources, to competing activities on the basis of a
given criterion of optimality
●
Linear
– Implies a linear relationship among the variables that make-up the
model
– Hence a given change in one variable will always cause a resulting
proportional change in another variable
– e.g. Doubling the investment on a certain project will also double the
rate of return
… Linear Programming [LP]
●
Programming
– Refers to the mathematical modelling and solving of a problem that
involves the economic allocation of limited resources, by choosing a
particular course of action or strategy among various alternative
strategies in order to achieve the desired objective
●
The usefulness of LP is enhanced by the availability of several user-
friendly computer software such as STORM, TORA, QSB,, LINDO, etc
●
However, there is no computer software for building an LP model
which is an art that improves with practice
Structure of an LP Model
●
An LP model consists of three basic components
– Decision Variables
– Objective Function
– Constraints
– Non-negativity
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The process of defining the above is known as LPP formulation
… Structure of an LP Model

Decision Variables
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Represent the entities about which a decision is to be taken
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Decision variables consume resources
● Denoted by x1, x2, x3, …., xn
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In an LP model all decision variables are continuous,
controllable and non-negative
– x1 ≥ 0, x2 ≥ 0, x3 ≥ 0, …., xn ≥ 0
… Structure of an LP Model

Objective Function
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The goal function of each LP problem, expressed in terms of
decision variables to optimize the criterion of optimality
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AKA measure-of-performance
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e.g Maximization of profit or revenue
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e.g Minimization of cost or time or distance
… Structure of an LP Model
Objective Function
●
Represented as
Max Z = c1x1 + c2x2 + c3x3 + ….. + cnxn
or
Min Z = c1x1 + c2x2 + c3x3 + ….. + cnxn
Where
Z is the measure-of-performance variable and is a function of x 1, x2, x3, …. , xn
Quantities c1, c2, c3, …. , cn represent the contribution of a unit of respective
variable x1, x2, x3, …. , xn
… Structure of an LP Model

Objective Function
●
Methods for obtaining the optimal value of Z
– Graphical Method
– Simplex Method
… Structure of an LP Model

Constraints
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Represent the limitations / constraints on the availability or use
of resources
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e.g. labour, machine, raw material, space, money
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Limit the degree to which an objective can be achieved
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Solution to the LP model must satisfy these constraints
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Expressed as linear equalities / inequalities in terms of the
decision variables
… Structure of an LP Model
Constraints
●
Each constraint may take only one of the three possible forms
– Less than or equal to ≤
Associated with availability of resources or restriction on a decision variable
– Greater than or equal to ≥
Generally associated with achieving minimum supply conditions or
minimum consumption conditions
– Equal to =
Associated with complete consumption of a resource
… Structure of an LP Model

Non-negativity
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A restriction imposed on the decision variables
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Ensures negative values are not assigned to the decision
variables
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Expressed as
x1, x2, x3, …. , xn ≥ 0
LPP Solution
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After an LPP is formulated the solution can be obtained using
the following methods
– Graphical Method
Restricted to an LPP of two decision variables
– Simplex Method
No restriction on the number of decision variables
LPP Graphical Method
Steps for solving an LPP using the Graphical Method
●
Formulation
– State the given problem in terms of the decision variables, objective function, constraints and non-
negativity
●
Plot constraints on graph paper and decide the feasible region
– Replace the inequality sign in each constraint by an equality sign
– Obtain coordinates of each constraint line
– Plot straight lines on the graph paper, each constraint line will be represented on the graph by one line
– For each constraint line decide the area of feasible solutions according to the inequality sign of the
constraint
– Shade the common portion of the graph that satisfies all the constraints simultaneously drawn on the
graph
… LPP Graphical Method

Steps for solving an LPP using the Graphical Method

●
Corner point method
– Determine the coordinates of each corner point of the feasible
solution space
– Compute and compare the value of the objective function at
each corner point
– Identify the corner point that gives optimal (max. or min.)
value of the objective function
Special Class of LPP
●
The Graphical Method is used to solve LPP with only two variables x, y
●
Real life scenarios business problems rarely involve two variables
● The Simplex method is used for solve LPP with more than two variables x1,
x2, x3,,…. xn
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A special branch of LPP comprises of the following
– Transportation Problem (One-to-many)
– Assignment Problem (One-to-one)
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After a TP / AP has been formulated as an LPP, the problem can be solved by
simplex method
 LPP Formulation of a Transportation Problem
The transportation problem seeks to minimize the total shipping costs of transporting
goods from i sources (each with a supply si) to j destinations (each with a demand dj),
when the unit shipping cost from source, i, to a destination, j, is cij

D1
c11
S1 c12
c13
D2
c21
S2 c22
SOURCES c23 D3 DESTINATIONS
.
. .
. c31 .
.
c32
Sm c33 Dn
… LPP Formulation of a Transportation Problem

The linear programming formulation in terms of the amounts shipped from

the sources to the destinations, xij , can be written as
Objective Function: Minimize total transportation cost
n m
Min Z = ∑ ∑ (c ij∗x ij )
j=1 i=1
Subject to constraints
m

∑ (cij∗x ij ) ≤ si for each source i (supply constraints)

i=1
n

∑ (cij∗x ji ) ≥ d j for each destination j (destination constraints)

j=1
x ij , x ji ≥ 0
LPP Formulation of an Assignment Problem

●
An assignment problem seeks to minimize the total cost
assignment of m workers to m jobs, given that the cost of
worker i performing job j is cij.
●
Assumption - all workers are assigned and each job is
performed
●
An assignment problem is a special case of a transportation
problem in which all supplies and all demands are equal to 1
… LPP Formulation of an Assignment Problem

The linear programming formulation

Objective Function: Minimize total cost
n n
Min Z = ∑ ∑ (c ∗x
i=1 j=1
ij ij )

Subject to constraints
n

∑ (x
j=1
ij ) = 1
n

∑ (x
i=1
ij ) = 1
x ij ≥ 0
Numericals
●
For the upcoming festive season, Delicious Sweets is planning to offer two
gift packages A and B. Each package will comprise of sweets S1, S2 and
S3. Package A contains 20 units of S1, 15 units of S2 and 10 units of S3.
Package B contains 10 units of S1, 30 units of S2 and 12 units of S3. Total
quantities of S1, S2 and S3 available to Delicious Sweets are 40,000 units,
60,000 units and 27,000 units respectively. The profit per unit on package
A is Rs. 200 and on package B is Rs. 300. Formulate this problem as a
liner programming problem. Assuming that all the packages will be sold,
solve the problem use the graphical method to determine how many
packages of A and B should be prepared to maximize the profit?
… Numericals
Solution:
Decision variables
x = quantity of package A
y = quantity of package B

Objective function
Max Z = 200x + 300y

Subject to constraints
20x + 10y ≤ 40,000 ------ Sweet S1
15x + 30y ≤ 60,000 ------ Sweet S2
10x + 12y ≤ 27,000 ------ Sweet S3
x, y ≥ 0
… Numericals
x y co-ordinate
20x + 10y = 40,000 ------ eqn 1
0 4000 (0 , 4000)
2000 0 (2000 , 0)
15x + 30y = 60,000 ------ eqn 2 0 2000 (0 , 2000)
4000 0 (4000 , 0)
10x + 12y = 27,000 ------ eqn 3 0 2250 (0 , 2250)
2700 0 (2700 , 0)
… Numericals
… Numericals
Corner Point Table
Vertex x y Max Z = 200x + 300y
O 0 0 0
A 0 2000 6,00,000
B 750 1625 6,37,500
C 1500 1000 6,00,00
D 2000 0 4,00,000
… Numericals
Optimal Solution
Quantity of Package A = 750 units
Quantity of Package A = 1625 units
Optimal Profit = Rs. 6,37,500
… Numericals

A transportation tableau is given below. Each cell represents a

shipping route. The unit shipping costs are given in an upper right
corner in the cell. Formulate as an LPP

To
From D1 D2 D3 Supply
15 30 20
S1 50
30 40 35
S2 30

Demand 25 45 10
… Numericals
Decision Variables
x11 = No of units transported from S1 to D1
x12 = No of units transported from S1 to D2
x13 = No of units transported from S1 to D3
x21 = No of units transported from S2 to D1
x22 = No of units transported from S2 to D2
x23 = No of units transported from S2 to D3

Objective Function
Min Z = 15 x11 + 30 x12 + 20 x13 + 30 x21 + 40x22 + 35x23
… Numericals

Subject to constraints
Supply constraints
x11 + x12 + x13 ≤ 50
x21 + x22 + x23 ≤ 30

Demand constraints
x11 + x21  25
x12 + x22  45
x13 + x23  10

x11, …, x23  0
… Numericals

There are 3 jobs A, B, and C and three machines X, Y, and Z. All

the jobs can be processed on all machines. The time required for
processing job on a machine is given below in the form of matrix.
Formulate as an LPP to minimize the total processing time.
Machines
Job
X Y Z
A 11 16 21
B 20 13 17
C 13 15 12
… Numericals
Decision Variables
x11 = Time of job A on machine X
x12 = Time of job A on machine Y
x13 = Time of job A on machine Z
x21 = Time of job B on machine X
x22 = Time of job B on machine Y
x23 = Time of job B on machine Z
x31 = Time of job C on machine X
x32 = Time of job C on machine Y
x33 = Time of job C on machine Z

Objective Function
Min Z = 11 x11 + 16 x12 + 21 x13 + 20 x21 + 13x22 + 17x23 + 13x31 + 15 x32 + 12x33
… Numericals

Subject to constraints
Each job must be assigned to one machine
x11 + x12 + x13 = 1
x21 + x22 + x23 = 1
x31 + x32 + x33 = 1

Each machine must be assigned to one job

x11 + x21+ x31 = 1
x12 + x22+ x32 = 1
x13 + x23+ x33 = 1

x11, …, x33  0
 References
●
Chapter 2 & 3
Operations Research: Theory and Applications by Sharma 4th Edition
https://books.google.co.in/books?
id=1EZxJHO32swC&printsec=frontcover&source=gbs_ge_summary_r&cad=0#v=onepage&q&f=false
●
https://ocw.mit.edu/courses/sloan-school-of-management/15-053-optimization-methods-in-management-science-
spring-2013/tutorials/MIT15_053S13_tut01.pdf
● https://www.merriam-webster.com/dictionary/optimization
●
https://en.wikibooks.org/wiki/Operations_Research/Linear_Programming
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Images
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