2 Linear Programming

Linear programming is a mathematical modeling technique used for planning and decision making involving limited resources. It involves developing a linear objective function to maximize or minimize subject to constraints. The key elements are objectives, constraints, decision variables, and linear relationships. It assumes certainty, proportionality, additivity, divisibility, and non-negativity. Linear programming can help allocate resources efficiently and arrive at optimal solutions while considering constraint limits. Common applications areas include production, finance, marketing, and personnel management.

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2 Linear Programming

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Linear Programming

OPSRES1 Maria Elena Yabut-Timbang, PIE

What is Linear Programming?

a widely used mathematical modeling technique

designed to help managers in planning and
decision making relative to resource allocation.

Maria Elena Yabut- Timbang, PIE

Linear and Programming defined

 linear refers to linear relationship among variables in a

model

 programming refers to the mathematical modelling and

solving of a problem that involves the use of limited
resources
Maria Elena Yabut- Timbang, PIE
Requirements of a Linear Programming Problem

 Objective function (maximize or minimize)

 Restrictions or constraints
 Decision variables
 Linear equations or inequalities.

Maria Elena Yabut- Timbang, PIE

Basic Assumptions of LP

Certainty
Proportionality
Additivity
Divisibility
Nonnegative

Maria Elena Yabut- Timbang, PIE

LP Properties and Assumptions

 One objective function

 One or more constraints
 Alternative courses of action
 Objective function and constraints are linear—proportionality and
divisibility
 Certainty
 Divisibility
 Nonnegative variables
Maria Elena Yabut- Timbang, PIE
Advantages of using Linear Programming

 helps decision-makers to use their productive resources effectively

 improves the quality of decisions
 helps to arrive at optimal solution of a decision problem by taking
into account constraints on the use of resources
 highlight bottlenecks in the production processes

Maria Elena Yabut- Timbang, PIE

Limitations of Linear Programming

 In real-life problems, decision variables, neither in the objective

function nor in the constraints are linearly related.
 There is no guarantee that decision variables will get integer value.
 LP does not take into consideration the effect of time and
uncertainty.
 In real-life situations, parameters of the model are frequently neither
known nor constant.
 In real-life situations a decision problem may have conflicting and
multiple objectives Maria Elena Yabut- Timbang, PIE
Application Areas of Linear Programming

 PRODUCT MANAGEMENT  FINANCIAL MANAGEMENT  PERSONNEL

 Portfolio Selection MANAGEMENT
 Product Mix
 Production Planning  Profit Planning  Staffing Problem

 MARKETING  Determination of
 Assembly line balancing
MANAGEMENT Equitable Salaries
 Blending Problems
 Media Selection  Job Evaluation and
 Trim Loss Selection
 Traveling Salesman
Problem
 Physical Distribution
Maria Elena Yabut- Timbang, PIE
References:

Render, B., Stair, T., & Hanna, M.(2012). Quantitative analysis for
management. (11th Ed.) Boston: Pearson Education Inc.