Linear

Programming
In Real Life

By :- Aaryan Singh
 Index
1. Cover page
2. Index & Abstract
3. Introduction
4. History
5. Advantages
6. Limitations
7. Applications
8. Conclusion
Introduction to Linear Programming
Linear programming (LP) is a mathematical technique
used for optimization. It involves maximizing or
minimizing a linear objective function, subject to a set
of linear constraints. LP is widely used in various fields
such as economics, business, engineering, and military
applications to solve complex problems involving
resource allocation, production scheduling,
transportation, and more.

Key Concepts

1. Objective Function:

The objective function is a linear function that

represents the goal of the optimization. It can be
either maximized or minimized.

2. Decision Variables:

Decision variables are the unknowns that we are

solving for in the optimization problem.
 3. Constraints:

Constraints are linear inequalities or equations that

represent the restrictions or limitations on the
decision variables.

4. Feasible Region:

The feasible region is the set of all possible values

of the decision variables that satisfy all the
constraints.

The optimal solution must lie within this region.

5. Optimal Solution:

The optimal solution is the set of values for the

decision variables that maximize or minimize the
objective function while satisfying all the
constraints.

History Of LP
Linear programming (LP) is a method to achieve the
best outcome in a mathematical model whose
requirements are represented by linear relationships.
It is a special case of mathematical programming
(mathematical optimization). Linear programming has
various applications in industry, business, economics,
and engineering.

Early Development

1. George B. Dantzig:

In 1947, George B. Dantzig, a mathematician,

introduced the simplex method, an algorithm to
solve linear programming problems. This marked
the beginning of practical methods for solving
these problems.

2. Leonid Kantorovich:

In 1939, Leonid Kantorovich, a Soviet

mathematician and economist, developed similar
concepts independently. His work, however, was
not widely recognized in the West until later. He
eventually received the Nobel Prize in Economics in
1975 for his contributions.

Growth and Applications

 1. Post-War Era:

After World War II, the need for efficient

resource allocation and optimization in various
industries led to the rapid adoption of linear
programming. It was extensively used in logistics,
transportation, and manufacturing.

2. Development of Computer Technology:

The advancement of computer technology in the

1950s and 1960s significantly enhanced the ability
to solve large-scale linear programming problems.
Algorithms and methods were further refined,
making it feasible to tackle more complex
problems.

Key Milestones

1. 1960s-1970s:

During this period, linear programming began to be

applied in diverse fields such as agriculture,
economics, military, and health systems. It also
saw the development of integer programming and
 mixed-integer programming, extending the
applicability of LP.

2. Interior-Point Methods:

In 1984, Narendra Karmarkar introduced the

interior-point method, a new polynomial-time
algorithm for linear programming. This offered a
computationally efficient alternative to the
simplex method, especially for very large problems.

Modern Era

1. Software Development:

The development of sophisticated software

packages like CPLEX, Gurobi, and MATLAB has
made linear programming accessible to a broader
audience, including businesses, researchers, and
educators.

2. Integration with Other Disciplines:

Linear programming has been integrated with other

mathematical techniques and theories, such as
 game theory, network flows, and data science,
further expanding its range of applications.

Advantages of Linear Programming

Linear programming offers several advantages that
make it a widely used optimization technique in various
fields. Here are some key advantages:

1. Mathematical Simplicity:

LP involves solving linear relationships, which are

relatively straightforward compared to non-linear
optimization problems. This simplicity often leads
to faster computation times and easier
interpretation of results.

2. Versatility:
 LP can model a wide range of real-world scenarios,
including production planning, resource allocation,
transportation logistics, financial portfolio
optimization, and more.

3. Efficiency in Solving Large-Scale Problems:

LP algorithms are well-developed and optimized for

solving large-scale problems efficiently. Advances
in computing power and algorithmic techniques
have further improved the speed and scalability of
LP solutions.

4. Optimality:

LP provides optimal solutions, meaning it can find

the best possible outcome (such as maximizing
profit or minimizing cost) within the given
constraints. This optimality is valuable for making
informed decisions and maximizing efficiency.
 5. Transparency and Interpretability:

LP solutions are often easy to interpret and

understand. Decision variables and constraints are
explicitly defined, allowing decision-makers to
grasp the implications of different solutions and
scenarios easily.

6. Integration with Other Models:

LP can be integrated with other mathematical

models, such as integer programming (IP) for
discrete decision variables or mixed-integer linear
programming (MILP) for hybrid decision cenarios.
This integration extends its applicability to more
complex problems.

7. Wide Availability of Software Tools:

Numerous software tools and libraries (e.g. Python

with libraries like PuLP, Gurobi, CPLEX) support LP
modeling and optimization, making it accessible to
analysts and practitioners across various domains.

Overall, these advantages highlight why linear

programming remains a powerful and widely used tool
for optimization and decision-making in diverse fields
ranging from operations research and economics to
engineering and management science.

Limitations of Linear Programing

Linearity Assumption:

LP assumes that relationships between variables (both

in the objective function and constraints) are linear.
This restricts its ability to accurately model scenarios
where non-linear relationships exist, such as economies
of scale, diminishing returns, or complex cost
structures.

Integer Constraints:

LP deals with continuous decision variables. When

variables must be integers (e.g., representing
quantities of discrete items), traditional LP may not
suffice. This necessitates the use of integer
programming (IP) or mixed-integer linear programming
(MILP), which can be more computationally intensive.
Complexity in Model Formulation:

Formulating an LP model requires translating real-world

problems into mathematical expressions of objectives
and constraints. For complex systems or when
numerous constraints are involved, the formulation
process can become challenging and prone to errors.

Sensitive to Input Data:

LP solutions are highly sensitive to changes in input

data (coefficients of the objective function and
constraints). Small variations in data can lead to
significant changes in optimal solutions, potentially
making the model less robust in dynamic or uncertain
environments.

Unrealistic Assumptions:

LP often assumes perfect divisibility of resources and

continuous availability of decision variables. In
practice, resources may be limited, indivisible, or
subject to discrete capacities, which can lead to
unrealistic solutions if not properly accounted for.

No Built-in Time Dimension:

LP models typically do not incorporate time explicitly.
This can be a limitation when dealing with dynamic or
sequential decision-making processes where the timing
of decisions and resource availability over time are
critical factors.

Combinatorial Explosion:

As the number of decision variables or constraints

increases, the computational complexity of solving LP
models can grow exponentially. This can pose challenges
in solving large-scale problems within reasonable time
frames.

No Guarantee of Global Optimal Solution:

While LP algorithms aim to find the optimal solution

within the given constraints, there is no guarantee that
the solution found is globally optimal across all possible
solutions. Local optima or suboptimal solutions may
occur, especially in non-convex problems.
Applications of Linear programming
Linear programming (LP) has applications in a variety of
fields and industries where optimizing resources,
processes, and decisions is important. LP is often used
to determine the optimal allocation of resources (such
as raw materials, labor, and machinery) to maximize
production while minimizing costs. LP helps optimize
logistics and distribution networks by determining the
most efficient transportation routes, inventory levels
at various points in the supply chain, and resource
allocation across multiple locations to minimize overall
transportation and storage costs. LP models are used in
financial portfolio management to optimize investment
strategies by allocating funds across different assets
to maximize returns while managing risk within certain
constraints such as investment limits and expected
returns. In marketing, LP helps determine optimal
pricing strategies, product mix decisions, and resource
allocation for advertising campaigns to maximize sales
or market share, given budget constraints and
consumer demand. LP is a fundamental tool in
operations research to optimize decisions in various
areas such as site planning, project planning, staffing,
and resource allocation in health care, education, and
public services.

Conclusion
In conclusion, linear programming (LP) stands as a
powerful and versatile optimization technique with
widespread applications across numerous industries and
decision-making contexts. Its ability to model linear
relationships and efficiently solve for optimal solutions
makes it a valuable tool in operational research,
economics, finance, logistics, and beyond.

However, LP does have its limitations, including

assumptions of linearity, sensitivity to input data, and
challenges in handling integer constraints and complex
real-world scenarios. These limitations necessitate
careful consideration and sometimes the use of more
advanced techniques like integer programming or
nonlinear optimization for certain applications.
Despite these challenges, LP continues to evolve with
advancements in computational algorithms and
technologies, making it increasingly applicable to
large-scale, real-time decision-making problems. Its
role in optimizing resource allocation, production
planning, supply chain management, and strategic
decision-making underscores its importance in modern
business and engineering practices.