LINEAR PROGRAMMING mathematically.

It doesn’t
matter, by the way, whether
profits and costs are
 Linear programming is a measured in cents, dollars, or
technique that helps in millions of dollars.
resource allocation`
decisions.
 It is widely used  Constraints
mathematical modeling - Presence of restriction
technique designed to help - It limits the degree to which
managers in planning and we can pursue our objective.
decision making relative to Ex:
resource allocation.
 When a manager attempts to 1. The decision on how many
solve a general type of units of each product in a
problem by seeking an firm’s product line to
objective that is subject to manufacture is restricted by
restrictions, the management available personnel and
science technique called machinery.
linear programming 2. Selection of an advertising
 The linear programming policy or a financial portfolio
technique derives its name is limited by the amount of
from the fact that the money available to be spent
functional relationships in the or invested. (sir carlo
mathematical model are puppet)
linear, and the solution
technique consists of
predetermined mathematical NOTE: WE WANT THEREFORE TO
steps—that is, a program. MAXIMIZE OR MINIMIZE A
QUANTITY (THE OBJECTIVE
FUNCTION) SUBJECT TO LIMITED
PROGRAMMING – refers to RESOURCES (THE CONSTRAINTS).
modeling and solving a problem
mathematically.
Illustration:
If a company produces three
 Objective Function different products, management
- seek to maximize or may use LP to decide how to
minimize some quantity, allocate among them its limited
usually profit or cost. production resources (of personnel,
- This objective must be stated maachinery, and so on). Should it
clearly and defined devote all manufacturing capacity
to make only the first product, 6. Divisibility
should it produce equal amounts of 7. Nonnegative variables
each product, or should it allocate
the resources in some other ratio?
If there were no alternatives to
select from, we would not need LP.

 The term linear implies both

PROPORTIONALITY and
ADDITIVITY.

 Proportionality
- It means that if production of
1 unit of a product uses 3
hours, production of 10 units
would use 30 hours.

 Additivity
- The total of all activities
equals the sum of the
individual activities. STEPS IN FORMULATING A
- If the production of one LINEAR PROGRAM:
product generated 3$ profit
and the production of 1. Completely understand the
another product generated managerial problem being
$8 profit, the total profit faced.
would be the sum of these 2. Identify the objective and the
two, which would be 11$ constraints
3. Define the decision variables.
4. Use the decision variables to
PROPERTIES OF LINEAR PROGRAMS write mathematical
expressions for the objective
1. One objective function function and the constraints.
2. One or more constraints
3. Alternative courses of action
4. Objective function and LP APPLICATION:
constraints are linear –
proportionality and divisibility  Product mix problem
5. Certainty
 - Two or more products are region where all constraints
usually produced using overlap.
limited resources such as
personnel, machines, raw
materials, and so on. The ISOPROFIT LINE SOLUTION METHOD
profit that the firm seeks to
- The optimal solution is the
maximize is based on the
point lying in the feasible
profit contribution per unit of
region that produces the
each product.
highest profit.
- The company would like to
determine how many units of
each product it should
produce so as to maximize MODEL FORMULATION
overall profit given its limited DECISION VARIABLE - it represent
resources. the actual decision we will make.
Profit contribution
 Selling price per unit – 1. Relationship ng linear
variable cost per unit programming sa mngmt
science
2. What do they mean by
GRAPHICAL SOLUTION APPROACH programming
3. History ng LP
- It is useful only when there
4. Reason bakit walang non
are two decision variables in
negativity constraints
the problem.
5. Divisibility assumption na di
- When there are more than
naman lahat ng pagkakataon
two variables, it is not
ay whole numbers sila
possible to plot the solution
6. Bakit may constraints
on a two-dimensional graph,
7. Bakit di Gagana yung
and we must turn to more
dalawang steps sa
complex approaches.
formulating
8. Bakit isa lang yung objective
function
 Area of feasible solution or
9.
feasible region
- The shaded region that
represents the area of
solutions that do not exceed
either of the two constraints.
- It must satisfy all conditions
specified by the problem’s
constraints, and is thus the
 - bakit step 1 ang objective –
para malaman natin kung
ano
- step 2, decision variable
- step 3, constraints –
nagliliimit sa objective

LP in accounting
An individual wishes to invest 5000
over the next year in two types of
investment: Investment A yields
5% and investment B yields 8%.
Market research recommends an
allocation of at least 25% in A and
at most 50% in B. Moreover,
investment in A should be at least
half the investment in B. How
FLOW G: should the fund be allocated to the
1. Aside from the purpose of two investments?
management sa isang
organization like leading the
staff…. Buffalo Bob’s River Explorers rents
Yung mga decisions ng canoes and kayaks to people to
management ay float down the Buffalo River. He has
makakatulong to make the $45,000 to purchase new boats.
most effective use of an The canoes cost $600 each and
organization’s resources rent for $25/day and the kayaks
cost $750 each and rent for
2. Intro to linear programming $30/day. He only has room for 65
3. History of LP boats in his shop. How many of
4. Importance each type of boat should he but to
5. Relationship of LP to maximize his revenue?
management science
6. Steps in formulating LP
Linear programming, as it is known today, was
conceived in 1947 by George B. Dantzig while he
was the head of the Air Force Statistical
Control’s Combat Analysis Branch at the Penta
gon. The military referred to its plans for
training, supplying, and deploying combat units
as “programs.” When Dantzig analyzed Air Force
planning problems, he realized that they could
be formulated as a system of linear inequalities
— hence his original name for the technique,
“programming in a linear structure,” which was
later shortened to “linear programming.”

QUIZ: 6. It is the potential or

recommended decision of the
1-5 manager – Decision Variable

7. It is a widely used mathematical

modeling technique designed to
help managers in planning and
decision-making relative to
resource allocation – Linear
Programming

8. It limits the degree to which we

Kyawtii Company manufactures bowl and pot
can pursue our objectives –
using clay as the primary material. Their
Constraints
company aims to maximize their profit from the
two products, but there are only 40 hours of
9. It's the graph of the profit
labor and 120 pounds of clay available each day
for production. How many units of bowl and pot function. It’s called ___ because it
that Kyawtii Company has to produce to means the same or equal and the
maximize their profit. Formulate and solve the profit anywhere on the line is the
problem. same – Iso

2pts – Formulating 10. It is the first method in finding

the optimal solution – Isoprofit Line
2pts - Solving
Method
1pt – Graphing