Linear Programming

Model
 The Linear Programming Model (LP)
• All mathematical functions are linear functions.
• The word “programming” does not refer to
computer programming; rather, it is a synonym
for planning.
• involves the planning of activities to obtain
optimal result.

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 3 Main Components of the Linear
Programming Model (LP) …
• Decision Variables (xi)
• Objective Function
• Constraints

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 3 Main Components of Linear
Programming Model (LP) are…
Decision Variables (xi)
–It can be controllable or independent variables
–The values are unknown and are determined to
provide an optimal solution
–DV depend on the type of LP problem
–Also, DV can be quantities of the resources to be
allocated, or the number of units produced

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The Linear Programming Model (LP) …
The Objective Function
– the Linear Programming seeks to optimize a single goal
– It is written as a linear function
– The Objective Function is generally to maximize (revenue,
market share) or minimize (costs)
In the Objective Function, the Profit or Cost Coefficients
(cj) express the rate at which the value of the objective
function increases or decreases.

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The Linear Programming Model (LP) …
Constraints
one or more uncontrollable restrictions,
requirements, or regulations and are expressed as
linear equations and/or inequalities.

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The Linear Programming Model (LP) …
A constraint is composed of:
– input-output (technology) coefficients (aij) = the rate at
which a given resource is depleted or utilized
– capacities (or availability) (bi) = of various resources,
usually expressed as some upper or lower limit; can also
express minimum requirements
– limits to the decision variables = positive, negative,
unrestricted

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 There are three major steps in
Modeling Process
1. Formulation – initially, you need to define the
decision variables, objective function, and
constraints
2. Solution - determine the optimal values of the
decision variables and the objective function
3. Interpretation of results - understand the practical
meaning of the results and their sensitivity to
changes in the formulation
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Mathematical Linear Programming Model – Canonical Form
The general LP can be presented in the following mathematical terms.
Let:
aij = input-output coefficients cij = cost (or profit) coefficients
bi = capacities (right hand side) xj = decision variables
Find or set decision variables x1, x2, …, xn that minimizes (or maximizes) a linear
objective function
Max Z = c1x1 + c2x2 + … + cnxn Min Z = c1x1 + c2x2 + … + cnxn
Subject to the linear constraints:
a11x1 + a12x2 + … + a1nxn < b1 a11x1 + a12x2 + … + a1nxn > b1
a21x1 + a22x2 + … + a2nxn < b2 a21x1 + a22x2 + … + a2nxn > b2
... ... ... ... ... ...
am1x1 + am2x2 + … + amnxn < bm am1x1 + am2x2 + … + amnxn > bm
And the nonnegativity constraints for : x1 > 0, x2 > 0, x3 > 0, …, xn > 0
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 Assumptions of LP
• Certainty: assumes that all data are known with
certainty.
• Linear Objective Function: objective function is linear.
This means that per unit cost, price, and profit are
assumed to be unaffected by changes in production
methods or quantities produced or sold.
• Linear Constraints: constraints are linear.
• Independence: complete independence of coefficients is
assumed, both among activities and among resources.
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 Assumptions of LP …
• Additivity: total utilization of each resource is
determined by adding together that portion of the
resource required for the production of each of the
various products or activities.
• Proportionality: linearity of the objective function and
of the constraints is a proportionality requirement. This
means that the amount of resources used, and the
resulting value of the objective function, will be
proportional to the value of the decision variables.

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 Assumptions of LP …
• Nonnegativity: negative production, or activity levels
are not allowable
• Divisibility: unknown variables (x1, x2, …) are
assumed to be continuous, that is, they can take any
fractional value. If the variables are restricted to
whole numbers (thus indivisible), the problem is
considered an integer programming problem.

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 Most Common Allocation Problems
Product-Mix Problem (Maximization)
– there are two or more products (candidates or activities) that
compete for limited resources, such as limited production
capacity
– The problem is to find out which products to include in the
production plan and in what quantities these should be
produced - in order to maximize profit, market share or achieve
some other goal
– more generally: we decide on how to allocate scarce resources

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 Example 1: The Product-Mix Problem
The Wyndor Glass Co. produces high-quality glass products, including windows
and glass doors. It has 3 plants. Aluminum frames and hardware are made in
Plant 1, wood frames are made in Plant 2 and Plant 3 produces the glass and
assembles the products. Because of declining earnings, management has decided
to revamp the company’s product line. Two new products are to be launched:

Product 1: 8-foot glass door with aluminum framing

Product 2: 4×6 foot double-hung wood-framed window

The marketing division could sell as much of these 2 products as could be

produced by the plants. Determine the product mix that will maximize the
company’s total profits. Data for these two products are the following:

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 Example 1: The Product-Mix Problem
• In plant 1, only product 1 is produced and the processing time for 1 batch of
product 1 is 1 hr. The available time for production in 1 week for Plant 1 is only 4
hrs.
• In plant 2, only product 2 is produced and the processing time for 1 batch of
product 2 is 2hrs. The available time for production in 1 week for Plant 2 is
only 12 hrs.
• However, both products 1 and 2 are produced in plant3. The production time
per batch of product 1 and 2 are 3hrs and 2hrs respectively. The available time
for production in 1 week for Plant 3 is only 18 hrs.
• The profit for each batch of product 1 produced is $3,000 and the profit realized
for each batch of product 2 produced is $5,000. We have to formulate a Linear
Programming Model that will determine the number of batches of product 1 and
product 2 needed to be produced weekly to maximize the profit given the
different limitations. For Educational Purposes Only
Example 1: The Product-Mix Problem
Product 1 Product 2 Production Time
Production
Time Available/week
Plant Hrs/Batch
(Hrs/Batch) (hours)

1 1 0 4
2 0 2 12
3 3 2 18
Profit/Batch $3,000 $5,000
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 Example 1: The Product-Mix Problem
In model formulation, we just need to identify the decision variables,
the objective function and the constraints. Since we need to find out
the number of batches of products 1 and 2 needed to produce weekly to
maximize the profit, let our decision variables X1 and X2 be the
number of batches of product 1 and product 2 needed to be produced
weekly. Our objective function is to maximize z where z is your profit
and it is equal to 3,000x1 + 4000X2. Check the units of your equation,
the Left Hand Side (LHS) of the equation must have the same units
with the Right Hand Side (RHS) of the Equation. The profit must have
a unit of dollars, the units of your decision variables are in batches of
each product and the units of 3,000 and 4,000 is in $ / batch. So, the
unit of dollars in the LHS of the equation must be equal to the
remaining units in the RHS which isPurposes
For Educational in dollars
Only also.
 Formulation of the LP Model
Decision Variables
x1 = number of batches of Product 1 produced/week
x2 = number of batches of Product 2 produced/week

Objective Function
The daily profit realized from selling batches of Product 1
is 3,000 x1. Similarly, we can get 5,000 x2 from Product 2.
The total profit, Z, is therefore, 3000x1 + 5000x2. This is to be
maximized.
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 Example 1: The Product-Mix Problem
The objective function is subjected to the following constraints:
• 1st constraint is for plant 1: there are 4 hours of production time
available/week and 1 batch of product 1 is produced in 1 hour so it is expressed
as: x1 < 4. It is less than or equal to because the maximum time to work is
4hrs.
• 2nd constraint is for plant 2: there are 12 hours of production time
available/week and 1 batch of product 2 is produced in 2 hours so it is expressed
as: 2x2 < 12
• 3rd constraint is for plant 3: there are 18 hours of production time
available/week and 1 batch of product 1 is produced in 3 hours and 1batch of
product 2 is produced in 2 hours so it is expressed as: 3x1 + 2x2 < 18
• finally, it is not possible to produce a negative number of sets; values of
both x1 and x2 must be nonnegative (zero or positive). This is the Last constraint
which is the NonnegativityConstraint. This is expressed as: x1 > 0, x2 > 0.
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 Formulation of the LP Model …
The Constraints of the System: Production Time/Plant
• Plant 1 Constraint – there are 4 hours available/week. This is
expressed as: x1 < 4
• Plant 2 Constraint – there are 12 hours available/week. This
limitation is expressed as: 2x2 < 12
• Plant 3 Constraint – there are 18 hours available/week. This is
expressed as: 3x1 + 2x2 < 18
• Nonnegativity Constraint – finally, it is not possible to produce a
negative number of sets; that is, both x1 and x2 must be
nonnegative (zero or positive).
This is expressed as: x1 > 0, x2 > 0.
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 Formulation of the LP Model
Decision Variables
x1 = number of batches of Product 1 produced/week
x2 = number of batches of Product 2 produced/week
Objective Function
max z = 3000x1 + 5000x2
subject to: x1 < 4 (Plant 1 constraint)
2x2 < 12 (Plant 2 constraint)
3x1 + 2x2 < 18 (Plant 3 constraint)
x1 > 0, x2 > 0 (Nonnegativity Constraint)

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 Formulation of the LP Model
Decision Variables
x1 = number of batches of Product 1 produced/week
x2 = number of batches of Product 2 produced/week
Objective Function
$ $ $
Profit X batch of product 1 X batch of product 2
Batch of product 1 Batch of product 2
max z = 3000 x1 + 5000 x2
hour
Batch of product 1 X batch of product 1 hours

subject to: 1 x1 < 4 Plant 1 constraint)

2x2 < 12 (Plant 2 constraint)
3x1 + 2x2 < 18 (Plant 3 constraint)
x1 > 0, x2 > 0 (Nonnegativity Constraint)
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 Most Common Allocation Problems
Blending Problem (Minimization)

– determines the best blend of available ingredients to form a

certain quantity of a product under strict specifications
– best blend = least-cost blend of the required inputs
– especially important in the process industries such as
petroleum, chemicals and food
– more generally: decide how to allocate resources in the
best manner
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 Example 2: The Blending Problem
Sunshine Coffee Shop serves 2 coffee brews on a daily basis: Mountain and
Coastal. Each brew is a blend of 3 high-quality local coffee beans: Baraco,
Bukidnon and Kalinga. The coffee shop has 10 pounds each of these 3 coffees
daily. Each pound of coffee produces 16 cups of coffee blends, a cup contains 16
ounces. The shop has enough brewing capacity to brew 30 gallons of the 2 blends
daily (1 gallon = 160 ounces). Mountain is a blend of 20% Baraco, 35% Bukidnon
and 45% Kalinga. Coastal is a blend of 60% Baraco, 10% Bukidnon and 30%
Kalinga. The shop sells Mountain and Coastal daily at a ratio of 1.5:1. Mountain
sells for P80/cup and Coastal sells for P75/cup. The manager wants to know how
many cups of each blend to sell daily in order to maximize sales.
Formulate the LP model that will determine the optimal blend mix for
Sunshine Coffee Shop.
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Example 2: The Blending Problem

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 Formulation of LP Model
Decision Variables
Let: x1 = cups of Mountain brew/day
x2 = cups of Coastal brew/day
Z = daily sales

Objective Function: Maximize Daily Sales

Max Z = 80x1 + 75x2

Subject to :
Available blends: Sales ratio: x1 = 1.5 x2
Baraco : 0.2 x1 + 0.6 x2 < 160 Total cups: x1 + x2 < 480
Bukidnon : 0.35 x1 + 0.1 x2 < 160 Brewing cap.: x1 + x2 < 300
Kalinga: 0.45 x1 + 0.3 x2 < 160 Non-negativity: Z, x1, x2> 0

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 References
Hillier, F. & Lieberman, G. (2005). Introduction to operations research. New
York, NY: McGraw-Hill Higher Education.

Taha, H. (2007). Operations research: An introduction. Upper Saddle River, NJ:

Pearson Prentice Hall.

Wayne, W. & Goldberg, J. (2004). Operations research: Applications and

Algorithms. Belmont, CA: Thomson Brooks/Cole.

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