Chapter Three

Linear Programming

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 3.1 Introduction
• Linear programming - is an optimization method which shows how to allocate
scarce resources in the best possible way subject to more than one limiting
condition expressed in the form of inequalities and /or equations.
• It enables users to find optional solution to certain problems in which the solution
must satisfy a given set of requirements or constraints.
• Optimization in linear programming implies either
– Maximization:
• Profit, Revenue, Sales, Market share
or
– Minimization:
• Cost, Time, Distance or a certain objective function.

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 3.1 Introduction
• We can’t max/min two quantities in one model

• It involves linearly related multi-variety functions i.e.

functions with more than one independent variables.

• The goal in linear programming is to find the best solution

given the constraints imposed by the problem, hence the
term constrained optimization.

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 3.2 Linear Programming Models
• LP models are mathematical representation of LP problems.
• Some models have a specialized format where as others have a more
generalized format.
• Despite this, LPMs have certain characteristics in common.
• Knowledge of these characteristics enables us recognize problems that are
amenable to a solution using LP models and to correctly formulate a LP
model.
• The characteristics can be grouped into two categories:
– Components and
– Assumptions.
• The components relate to the structure of a model, where as the
assumptions describe the conditions under which the model is valid.
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3.2 Linear Programming Models

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• Components of LP Model
a. The Objective function: mathematical expression of objective of
company/model. The objective will be either maximization or
minimization, but not both at a time
b. The Decision Variables: represent unknown quantities to be resolved for.
c. The constraints: restrictions which limit the attainability (achievability)
feasibility of a proposed course of action. scarce resources (labor supply,
production capacity, machine time, storage space), legal or contractual
requirements (Product standards, work standards), or they may reflect
other limits based on forecasts, customer orders, company policies etc.
d. Parameters: fixed values that specify the impact that one unit of each
decision variable will have on the objective and on any constraint.

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Assumption of LP models
a. Linearity: Each decision variable has a linear impact on the
objective function and in each constraint
b. Divisibility: non-integer values are acceptable values of
decision variables. E.g 3.5 TV sets/hr would be acceptable 7
TV sets/2hr.
c. Certainty: the parameters are known and constant.
d. Non-negativity: values of variables only + & 0 allowed.

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 4.3 Formulating LP Models
• Once a problem has been defined, formulating a model will be the next.
• Ill-formulated, ill-structured LP model leads to poor decisions.
• Formulating linear programming models involves the following steps:
1. Define the problem/problems definition: determine no. of type 1 & type 2
products to be produced.
2. Identity the decision variables or represent unknown quantities.
3. Determine the objective function: maximization or a minimization problem
4. Identify the constraints
– System constraints - more than one variable
– Individual constraints - one variable
– Non-negativity constraints.

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Example: A firm that assembles computers is about to start production of two
new micro computers. Each type of microcomputer will require assembly
time, inspection time, and storage space. The amount of each of there
resources that can be devoted to the production of micro computers is
limited. The manager of the firm would like to determine the quantity of each
micro computer to produce in order to maximize the profit generated by sales
of these micro computers.
Additional information:
In order to develop a suitable model of the problem, the manager has met
with the design and manufacturing personnel. As a result of these meetings,
the manager has obtained the following information:

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 4.4 Solution Approaches to Linear Programming Problems
• There are two approaches to solve linear programming
problems.

 The graphic solution method

 The algebraic solution/ simplex algorithm

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 1. The Graphic solution Method
• It’s a relatively straight forward method for determining
the optional solution to certain linear programming
problems.
• This method can be used only to solve problems that
involve two decision variables.
• However, most linear programming applications involve
situations that have more than two decision variables, so
the graphic approach is not used to solve these.

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 1. The Graphic solution Method
• Steps

 Plot each of the constraints and identify its region.

 Identify the common region, which is all area that contains

all of the points that satisfy the entire set of constraints.

 Determine the optional solution-identify the point which

leads to maximum benefit or minimum cost.
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Example: Solving the micro-computer problem with
graphic approach.

Max Z = 60X1 + 50X2

4X1 + 10X2 100
2X1 + X2 22
3X1 + 3X2 39
X1 , X2 0
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Optimal Solution
X1 = 9
X2 = 4
Max Z = 740 Br.
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• If there is any unused resource we can use it for any other purpose.
• The amount of unused resource is known as slack- the amount of a scarce
resource that is unused by a given solution.
• The slack can range from zero, for a case in which all of a particular
resource is used; to the original amount of the resource that was available
(i.e. none of it is used.)
Computing the amount of slack
Constraints Originally Used time Unused time (slack)
Available X1=9 X2=4 Available to use
Time
Assembly Time 100hr 4(9) + 10(4) = 76 100-76=24hr
Inspection Time 22hr 2(9) + 1(4) = 22 22-22=0hr
Storage 39sq.feet 3(9) + 3(4) = 39 39-39=0hr
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• Constraints that have no slack are sometimes referred to as binding
constraints since they limit or bind the solution.
• In the above cases, inspection time and storage space are binding
constraints, while assembly time has slack.
• Knowledge of unused capacity can be useful for planning.
• A manager may be able to use the remaining assembly time for
other products, or, perhaps to schedule equipment maintenance,
safety seminars, training sermons or other activities
• Interpretation: The Company is advised to produce 9 units of type 1
micro computer and 4 units of type 2 micro computers per week to
maximize its early profit to Br. 740, and in doing so the company
would be left with unused resource of 24 assembly hrs which can
be used for other purposes.
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Example 2: Solving the diet problem with graphic approach.
C min = 5X1 + 8X2
L1: 10X1 + 30X2  140
L2: 20X1 + 15X2  145
X1, X2  0

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 Solution
X1 = 5 pounds
X2 = 3 pounds
Min Z = 49 Br.
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• Interpretation to make the diet the minimum cost of br 49 we have
to purchase 5 pounds of type 1 food and 3 pounds type 2 food.
• If there is a difference between the minimum required amount and
the optimal solution, we call the difference surplus; that is: surplus
is the amount by which the optimal solution causes a constraint to
exceed the required minimum amount.
• It can be determined in the same way that slack can: substitute the
optimum values of the decision variables into the left side of the
constraint and solve. The difference between the resulting value
and the original right-hand side amount is the amount of surplus.
• Surplus can potentially occur in a constraint.

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 Activity
Solve the problem with graphic approach!
Max Z: 60x + 20y
s.t
3x + 2y ≤ 12
2x + 2y ≤ 10
X&y≥0

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 Activity
Solve the problem with graphic approach!
Min Z: 10x + 20y
s.t
4x + 2y ≥ 12
2x + 3y ≥ 6
X&y≥0

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