1

Introduction:
Meaning and Importance of Linear Programming
Linear programming is used in situations where firms/producers, need to maximize
their profit within a given requirement or minimize costs. This is due to the fact that
firms/producers have objectives to achieve but at the same time there exist constraints
to achieve the objectives brought up by scarce resources. Such objectives and
constraints are stated mathematically in form of linear inequalities. The constrained
environment surrounding the firms therefore calls for decision making which is not
just “a haphazard” process.
Application Areas
1.Production Management: Manufacturing companies use LP to plan and schedule
production: E.g. Product mix that maximizes total contribution with limited resources;
Product planning; blending problems, etc.
2. Transportation and routing, and various types of scheduling: Airlines use linear
programs to schedule their flights, taking into account both scheduling aircraft and
scheduling staff.
3. Agricultural Applications: Planning land use to maximize revenue, etc.
4. Distribution/Delivery services: use linear programs to schedule and route
shipments to minimize shipment time or minimize cost.
5. Retailers use linear programs to determine how to order products from
manufacturers and organize deliveries with their stores.
6. Financial institutions use linear programming to determine the mix of financial
products they offer e.g. loans packages or to schedule payments transferring funds
between institutions. Portfolio selection–which maximizes the total expected return
or minimizes risk under certain limitations. Profit planning/ maximization from
investments.
7. Health care institutions use linear programming to ensure the proper supplies are
available when needed. LP has also been used to organize and coordinate lifesaving
health care procedures e.g. Organ Donations and transplants
8. Marketing Management: advertising media mix so as to maximize the effective
exposure, subject to limitation of budget, locating manufacturing plants and
distribution centers for physical distribution;
9. Personnel Management: Staffing problems (man-power allocations); job evaluation
and selection situations; Determination of equitable salaries:

MUBS QM LECTURE NOTES (Linear programming) prepared by: J.N 2023/2024

 2

Linear programming therefore helps managers in situations of optimal resource

allocation when a manager has to find the most optimal way to allocate the scarce
resources and achieve the intended goal that is either to maximize profits or minimize
costs in areas like manufacturing, advertising, transportation.
Solutions to linear programming are restricted to zero or positive amounts due to
situations dealt with like production, purchasing and selling that cannot take on
negative values. This is referred to as non-negativity situation for example
𝑋 ≥ 0, 𝑌 ≥ 0 and 𝑍 ≥ 0.
To understand the concept of linear programming, it is important to revise the subtopic
of linear inequalities.
A linear inequality is a mathematical expression in which variables appear in separate
terms and are raised to the first power while a linear program is a mathematical model
with the following properties;
i. a linear objective function
ii. a set of linear constraints and non-negativity conditions,
Properties of Linear Programming Problems
1.One Objective Function: All LP problems seek to maximize or minimize some
quantity or variable (profit or cost) referred to as the objective function. This must be
stated clearly and expressed mathematically
2. One or More Constraints: All LP problems have constraints or restrictions that limit
the degree to which an objective can be pursued e.g. the number of units produced
by a firm can be limited by the capacity of available machinery and personnel or
space of warehouse. I.e. The drive to achieve objectives is subject to constraints
(limited resources)
3. Alternative Courses of Action: There must be alternative courses of action to
choose from e.g. If a company manufactures three products, LP can be used to
decide whether to devote resources to one product or allocate to all in some ratios.
If there are no alternatives to choose from, then there is no need for LP
4. Objective Function and Constraints are Linear: The objective and constraints in LP
problems must be expressed in terms of linear equations or inequalities i.e. all terms
used in the linear relationships are of the first degree (and not appearing more than
once) –

MUBS QM LECTURE NOTES (Linear programming) prepared by: J.N 2023/2024

 3

Example. The Equation 2𝑥+5𝑦=10 is acceptable; but not 2𝑥 2 +5𝑦 3 +3𝑥𝑦=10 because
the variable 𝑥 is squared, the variable 𝑦 is cubed and the two variable 𝑥 & 𝑦 appear
again as a product of each other. In most problems, we encounter constraints as
inequalities of the form 𝑥 + 𝑦 ≤ 𝐶 𝑜𝑟 𝑥 + 𝑦 ≥ 𝐶;
In LP, if we are maximizing, we use the less than or equal to sign “≤” to imply that the
constraints must be minimized.
If we are minimizing, we use the greater than or equal to sign “≥” to imply that the
constraints are positive and should be maximized

Basic Assumptions of a linear programming situation;

1. It exists with an objective function showing what the firm intends to achieve for
example minimize or maximize e.g 𝒁 = 𝟐𝑿 + 𝟑𝒀.
2. It exists with the constraints since the environment is unpredictable for example the
objective function given is subject to constraints like 2𝑥 + 3𝑦 ≥ 0 𝑎𝑛𝑑 2𝑥+. 𝑦 ≥ 0.
3. Linearity: The Objective and constraints are expressed in terms of linear equations
or inequalities–all terms used are of the first degree. We assume straight line

4. Certainty: Conditions of certainty exists i.e. It is assumed that the number or

parameters in both objective and constraints are known with certainty and do not
change (are deterministic e.g. prices are fixed, resource known, time needed per unit
is same etc.) during the period of consideration.

5. Proportionality: exists in the objective and constraints i.e. if production of1unit of a

product uses 3hrs of a scarce resource, then making 10units of the same product
uses 30hrs of the resource.

6. Additivity. The total of all activities equals the sum of the individual activities i.e. if
an objective is to maximize profit=30,000/=per unit of first product made and
14,000/=per unit of a second product made; and if 1unit of each product is actually
produced, the profit contributions of 30k and14k must add up to produce a sum of
44,000/=.

7. Divisibility: Solutions need not to be whole numbers (integers)–but they are

divisible and may take on any fractional value.

8. No negativity: It is assumed that all answers or variables are non-negative.

Negative values of physical quantities are impossible i.e.it is impossible to produce
negative numbers of shirts, chairs or bulbs i.e. 𝑦 ≥ 0 𝑎𝑛𝑑 𝑥 ≥ ,0.

MUBS QM LECTURE NOTES (Linear programming) prepared by: J.N 2023/2024

 4

Linear Inequalities

Consider a linear inequalities below relating the two variables 𝒙 and 𝒚. We can examine
this inequalities in terms of graphs.
𝑦 > 2𝑥 – 4
𝑥+𝑦 <4
𝑦 − 2𝑥 < 6, We find three points on the lines. 𝑦 = 2𝑥 – 4, 𝑥 + 𝑦 = 4 𝑎𝑛𝑑 𝑦 − 2𝑥 = 6

Note A linear inequality between two variables 𝒙 and 𝒚 is any relationship of the form
𝑎𝑋 + 𝑏𝑌 + 𝑐 > 0 (𝑜𝑟 < 0) 𝑜𝑟 𝑎𝑋 + 𝑏𝑌 + 𝑐 ≥ 0 (𝑜𝑟 ≤ 0). The graph of a linear
inequality consists of all those points (x, y) that satisfy the inequality. It consists of a
region in the xy plane not simply a line or a curve
EXERCISES.
Sketch the graph of the linear inequalities and shade the unwanted regions.
2𝑥 – 3𝑦 < 6
𝑥 + 𝑦 > 6
2𝑥 + 3𝑦 < 12
2𝑥 – 𝑦 ≤ 8
3𝑥 ≥ 𝑦 – 6
0 ≤ 𝑦 ≤ 15

MUBS QM LECTURE NOTES (Linear programming) prepared by: J.N 2023/2024

 5

Some typical illustrations of situations that give rise to linear inequalities

1. A business tycoon plans to invest up to $30,000 in two stocks, A and B. Stock A is
currently priced at $165 and stock B at $90 per share. If the tycoon buys X shares of
A and Y shares of B, graph the region in the XY-plane that corresponds to possible
investment strategies.
Solution:(Refer to class work).

Specific definitions in linear programming

1. A Variable; this refers to a value that changes as a result of an action taken by
the manager. Recall that a variable is a measurable quantity which changes over
space or time.
2. A Solution: This refers to any set of values for the given variable.
3. A constraint refers to a limitation of the required decision variable.
MUBS QM LECTURE NOTES (Linear programming) prepared by: J.N 2023/2024
 6

4. Constraint function: the portion of the constraint containing the variables.

5. Feasible solution: a solution that satisfies all the constraints simultaneously
6. Feasible region: a set of all possible feasible solutions
7. Feasible solution point: any point on the boundary of the feasible region.
8. Objective function: this is a function that shows the goal to be achieved by the
firm that is either to maximize profit or minimize cost.
9. Non-negative constraints: a set of constraints that require variables to be equal
to or greater than zero but never to be negative taking into consideration the
fact that in linear programming we make decisions on factors like
transportation, advertising ,production etc.
10. Iso-profit line or Iso-cost line; refers to the line in the feasible region on which
different combinations will produce the same profit /cost:
11. Basic feasible solution a basic solution that also satisfies all the non-negativity
conditions and all variables are always greater than or equal to zero.
12. Optimal solution: this is a feasible solution that maximizes or minimizes the
value of the company’s objective function, that is, it provides the best possible
value in a linear programming situation at hand.
13. Multiple optimal solutions; If corner points are both optimal solutions to a linear
programming problem, then any point on the line segment joining them is also
an optimal solution, that is to say, when an objective function attains its
optimum value at more than one feasible point.
14. Infeasibility: a situation of infeasibility occurs when there are no solutions to the
given problem satisfying all the constraints including the non-negativity
conditions. In other words, the feasible region does not exist, that is to say, the
constraint equations have no points satisfying them.
15. Unboundedness (managerial utopia): These results from improper formation of
a problem and due to this, it is found out that the feasible solutions cannot be
enclosed together, that is under unboundedness the value of the objective
function can be increased without limit.

MUBS QM LECTURE NOTES (Linear programming) prepared by: J.N 2023/2024

 7

Linear Optimization (Geometric Approach)

A linear programming problem is one that involves finding the maximum or minimum
value of some linear algebraic expression when the variables in the expression are
subject to a number of linear inequalities.
Examples
1. A company manufactures two products X and Y. Each of these products requires a
certain amount of time on the assembly line and a further amount of time in the
finishing shop. Each item of type X needs 5 hours for assembling and 2 hours for
finishing, and each item of type Y needs 3 hours for assembling and 4 hours for
finishing. In any week, the firm has available 105 hours on the assembly line and 70
hours in the finishing shop. The firm can sell all it can produce of each item and makes
a profit of $200 on each item for X and $160 on each item of Y. Find the number of
items of each type that should be manufactured per week to maximize the total profit
Solution: ( refer to class work)

Note: The inequalities that must be satisfied by the variables in a linear programming problem are
called the constraints. The linear function that is to be maximized or minimized is called the
objective function
MUBS QM LECTURE NOTES (Linear programming) prepared by: J.N 2023/2024
 8

Fundamental Theorem of Linear Programming

•The Fundamental Theorem of Linear Programming states that the maximum (or
minimum) value i.e. the optimal solution of the objective function always takes place
at the vertices of the feasibility region i.e. must lie at one of the corner points in the
feasible region.

Therefore, we identify all the vertices (corner/extreme points) of the feasibility region.
We call these points’ critical points.

2. A shopkeeper wants to buy up to 500 necklaces for her shop. She has Shs.900, 000
to spend. There are two types of necklaces available, one type costing Shs.3, 000 each
and the other costing Shs.1, 000. She wants to buy at least 100 of each type of
necklace. If the shopkeeper buys x of the expensive type and y of the cheaper type of
necklace, show graphically the region in which points (x, y) must lie. The profit is Shs.1,
000 each on the expensive necklaces and Shs.500 each on the cheaper necklaces. How
many of each type of necklace should she buy to make the most profit?

3. A company produces two products S and T. Each unit of S requires 1 hour on one
machine and 4 hours on a second machine. Each unit of T requires 2 hours on the first
machine and 4 hours on the second machine. There are 120 hours available per week
on the first machine and 100 hours on the second machine. If the company makes a
profit of $60 on each unit of S, and $70 on each unit of T, how many of each unit
should be produced to maximize the total profit?

4. Rwab Ltd. produces two products X and Y each of which requires time on machines
M1, M2 and M3. During the production process, each unit of X requires 2 hours on
machine M1, 4 hours on machine M2 and 3 hours on machine M3. And each unit of Y
requires 5 hours on machine M1, 1 hour on machine M2 and 2 hours on machine M3.
The company makes profits of $250 and $300 on each unit of both products X and Y
respectively. The numbers of machine hours available per month are 200 for machine
M1, 240 for M2 and 190 for M3. Find the number of units of each product that must
be produced to maximize the total profit.

MUBS QM LECTURE NOTES (Linear programming) prepared by: J.N 2023/2024

 9

REVISION EXERCISES

1. A manufacturer wants to produce two products pancake and chocolate coke. The
profit contribution potential of each product is 200 and 500 respectively. To produce
a chocolate cake it requires 40kg of sugar while to produce a pancake it doesn’t
require anything. He also reveals that the assembly time required to produce a pan
cake is 1.2 hours while the chocolate cake requires 4hrs. Similarly the inspection time
required for pancake is 1/2hrs and 1hr for a chocolate cake. He noted that time
available for both assembly and inspection does not exceed 240 and 81 respectively.
Required Develop a linear programming model that fits the manufacturer’s
constraints. Graph the constraints to obtain a feasible region. Find how many pancakes
and chocolate cakes that should be produced in order to maximize profits

2. GM Tumpeco limited is a producing company specializing in two products x and y.

It found out that its products go through a number of stages which include assembly,
finishing and testing. Product x takes 8 hours in the assembly stage and y also takes 4
hours in the same stage. Finishing requires 6 hours for x and 6 hours for y and testing
requires 5 hours for x and 4 hours for y. It’s established that the available hours for
each stage are 72, 96 and 60 respectively. The company makes profits of 40 and 50
and 30 on each product. Determine the combination of products that GM Tumpeco
limited should produce to maximize its profits.

3. Write short notes on the following as used in linear programming

Multiple optimal solutions -Linear programming model

Iso- cost line and Iso- profit line -Non-negativity condition

Mention the properties of a linear programming problem.

Explain the rationale of linear programming to a decision maker and the extent to
which its application is limited.

4 .Briefly explain the concepts of infeasibility, multiple optimal solutions and

unboundedness.

UBL deals in production of two products C and P. Each unit of C requires one nutrient
of food color and 5 nutrients of Muchuzi mix. Each unit of P requires 2 nutrients of
food color and 3 nutrients of muchuzi mix. The production manager says there are
MUBS QM LECTURE NOTES (Linear programming) prepared by: J.N 2023/2024
 10

only 6 nutrients available for product C and 15 nutrients for product P. If UBL makes a
profit of 2 on each unit of C and 15 on each unit of product P. How many units of each
product should be produced to maximize the total profit?

5. A linear programming problem is given to you as follows:

Minimize Costs : = 12𝑎 + 4𝑏

Subject to the constraints:

1
𝑎 + 2𝑏 > 20 2𝑎 + 2 𝑏 > 10

5
5𝑎 + 𝑏 > 30 𝑎 ≥ 0, 𝑏 ≥ 0
2

Required;

Determine the values of 𝒂 and 𝒃 that will minimize the costs, hence obtain the
minimum costs.

READING ASSIGNMENT:

Read and make notes about the SIMPLEX METHOD of solving linear inequalities.

MUBS QM LECTURE NOTES (Linear programming) prepared by: J.N 2023/2024