CHAPTER TWO

LINEAR PROGRAMMING

Linear Programming- is an optimization method, which shows how to allocate scarce resources
such as money, materials, or time and how to do such allocation 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 an optimal solution to certain problems in which the solution must satisfy a
given set of requirements or constraints.
Optimization in linear programming implies either maximization (such as profit, revenue, sales,
and market share) or minimization (such as cost, time, and distance) of a certain objective
function. It implies that we cannot max/min two quantities in one model in LP. It involves linearly
related multi-variate functions, i.e., functions with more than one independent variable. The goal
in linear programming is to find the best solution given the constraints imposed by the problem;
hence the term constrained optimization.

2.1 Linear programming Models (LPM)

Linear Programming (LP) models are mathematical representations of LP problems. Some LP

models have a specialized format, whereas others have a more generalized format. Despite this,
LP Models have certain characteristics in common. Knowing these characteristics enables us to
recognize problems that are amenable to a solution using LP models and correctly formulate an
LP model. The characteristics can be grouped into two categories: Components and Assumptions.
The components relate to the structure of a model, whereas the assumptions reveal the conditions
under which the model is valid.
Components Assumptions
1. Objective function 1. Linearity
2. Decision variables Model 2. Divisibility Model
3. Constraints Structure 3. Certainty Validity
4. Parameters & RHSV 4. Non-negativity

2.1.1 Components of the LP model

1. The Objective Function- is the mathematical or quantitative expression of the objective of the
company/model. The objective in problem-solving is the criterion by which all decisions are
evaluated. In LPMs a single quantifiable objective must be specified by the decision maker. For

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 example, the objective might relate to profits, or costs, or market share, but to only one of these.
Moreover, because we are dealing with optimization, the objective will be either maximization or
minimization, but not both at a time.
2. The Decision Variables - represent unknown quantities to be resolved for. These decision
variables may represent such things as the number of units of different products to be sold, the
amount of Birr to be invested in various projects, and the number of ads to be placed with
different media. Since the decision maker has freedom of choice among actions, these decision
variables are controllable variables.
3. The constraints - are restrictions that define or limit the feasibility of a proposed course of action.
They limit the degree to which the objective can be pursued. Atypical restriction embodies scarce
resources (such as labor supply, raw materials, production capacity, machine time, storage space),
legal or contractual requirements (e.g. Product standards, work standards), or they may reflect
other limits based on forecasts, customer orders, company policies etc.
4. Parameters - are fixed values that specify the impact that one unit of each decision variable will
have on the objective and on any constraint, it pertains to as well as to the numerical value of each
constraint.
 The components are the building blocks of an LP model. We can better understand their
meaning by examining a simple LP model as follows.
Example:
Maximize: 4X1 + 7X2 + 5X3 (Profit) ________________ objective function
Subject to:
2X1 + 3X2 + 6X3  300 labor hrs
5X1 + X2 + 2X3  200 lb raw material A System constraints
3X1 + 5X2 + 2X3  360
X1 = 30 Individual
X2  40 constraints
X1, X2, X3 0 non-negativity constraints.
System constraints – involve more than one decision variable.
Individual constraints – involve only one decision variable.
None-negativity constraints specify that no variable will be allowed to take on a negative value.
The non-negativity constraints typically apply in an LP model, whether they are explicitly stated
or not.

2.1.2 Assumption of LP Models

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1. Linearity. The linearity requirement is that each decision variable has a linear impact on the
objective function and on each constraint in which it appears. Following the above example,
producing one more unit of product 1 adds Br. 4 to the total profit. This is true over the entire
range of possible values of X1. The same applies to each of the constraints. It is required that the
same coefficient (for example, 2 lb. per unit) apply over the entire range of possible values so the
decision variable.
2. Divisibility. The divisibility requirement pertains to the potential values of decision variables. It is
assumed that non-integer values are acceptable. For example, 3.5 TV sets/hr would be acceptable
 7 TV sets/2hrs.
3. Certainty. The certainty requirement involves two aspects of LP models.
i) With respect to model parameters (i.e., the numerical values) – It is assumed that these
values are known and constant e.g. in the above example each unit of product 1
requires 2 lab is known and remains constant, and also the 300 lab/hr available is
deemed to be known and constant.
ii) All the relevant constraints identified and represented in the model are as they are.
4. Non-negativity. The non-negativity constraint is that negative values of variables are unrealistic
and, therefore, will not be considered in any potential solution; only positive values and zero will
be allowed.
Formulating LP Models
Once a problem has been defined, the attention of the analyst shifts to
formulating a model. Just as it is important to carefully define a problem, it is
important to carefully formulate the model that will be used to solve the
problem. If the LP model is ill-formulated and ill-structured, it can easily lead
to poor decisions.
Formulating linear programming models involves the following steps:
1. Define the problem/problem definition
2. Identify the decision variables or represent unknown quantities
3. Determine the objective function
* Once the variables have been identified, the objective function can be
specified. It is necessary to decide if the problem is a maximization or a
minimization problem and the coefficients of each decision variable.
Note:

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 a) The units of all the coefficients in the objective function must be the same. E.g. If the
contribution of type 1 is in terms of Br so does for type 2.
b) All terms in the objective function must include a variable each term have to have 1
variable.
c) All decision variables must be represented in the objective function.
4. Identifying the constraints
- System constraints
- Individual constraints
- Non-negative constraints
Example
1. A firm that assembles computers and computer equipment is about to start
production of two new microcomputers. Each type of micro-computer will
require assembly time, inspection time, and storage space. The amount of
each of these resources that can be devoted to the production of
microcomputers is limited. The manager of the firm would like to determine
the quantity of each microcomputer to produce in order to maximize the
profit generated by sales of these microcomputers.
Additional information
In order to develop a suitable model of the problem, the manager has met
with design and manufacturing personnel. As a result of these meetings, the
manager has obtained the following information:
Type 1 Type 2
Profit per unit Birr 60 Birr 50
Assembly time per unit 4hrs 10hrs
Inspection time per unit 2hrs 1hr
Storage space per unit 3cubic ft 3cubic ft
The manager also has acquired information on the availability of company
resources. These weekly amounts are:
Resource Resource available
Assembly time 100hrs
Inspection time 22hrs
Storage space 39 cubic feet

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 The manager also meets with the firm’s marketing manager and learned that
demand for the microcomputers was such that whatever combination of
these two types of microcomputers is produced, all of the output can be sold.
Required: Formulate the Linear programming model.
Solution:
Step 1: Problem Definition
- To determine the number of two types of microcomputers to be
produced (and sold) per week so as to maximize the weekly profit
given the restriction.
Step 2: Variable Representation
- Let X1 and X2 be the weekly quantities of type 1 and type 2
microcomputers, respectively.
Step 3: Develop the Objective Function
Maximize or Z max = 60X1 + 50X2
Step 4: Constraint Identification
System constraints: 4X1 + 10X2  100hrs Assembly
time
2X1 + X2  22hrs inspector time
3X1 + 3X2  39 cubic feet Storage space
Individual constraint No
Non-negativity constraint X1, X2  0
In summary, the mathematical model for the microcomputer problem
is:
Zmax = 60X1 + 50X2
Subject to: 4X1 + 10X2  100
2X1 + X2  22
X1 + 3X2  39
X1, X2  0
2. An electronics firm produces three types of switching devices. Each type
involves a two-step assembly operation. The assembly times are shown in the
following table:
Assembly time per Unit (in minutes)
Section #1 Section #2

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 Model A 2.5 3.0
Model B 1.8 1.6
Model C 2.0 2.2
Each workstation has a daily working time of 7.5 hrs. The manager wants to
obtain the greatest possible profit during the next five working days. Model
A yields a profit of Birr 8.25 per unit, Model B a profit of Birr 7.50 per unit,
and Model C a profit of Birr 7.80 per unit. Assume that the firm can sell all it
produces during this time, but it must fill outstanding orders for 20 units of
each model type.
Required: Formulate the linear programming model of this problem.
Solution:
Step 1: Problem definition
To determine the number of three types of switching devices to be
produced and sold for the next 5 working days so as to maximize the 5
days’ profit.
Step 2: Variable representation
Let X1, X2, and X3 be the number of Model A, B, and C switching
devices respectively, to be produced and sold.
Step 3: Develop an objective function
Z max: 8.25X1 + 7.50X2 + 7.80X3

Step 4: Constraint identification

2.5X1 + 1.8X2 + 2.0X3  2250 minutes Ass. time station 1 System
3.0X1 + 1.6X2 + 2.2X3  2250 minutes Ass. time station 2
X1  20 Model A
X2  20 Model B Individual
constraint
X3  20 Model C
X1, X2, X3 0 Non negativity
In summary:
Zmax: 8.25X1 + 7.50X2 + 7.80X3
: 2.5X1 + 1.8X2 + 2.0X3  2250 minutes
3.0X1 + 1.6X2 + 2.2X3  2250 minutes
X1  20 model A
X2  20 model B
X3  20 model C

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 X1, X2, X3  0 non negativity
3. A diet is to include at least 140 mgs of vitamin A and at least 145 Mgs of
vitamin B. These requirements are to be obtained from two types of foods:
Type 1 and Type 2. Type 1 food contains 10Mgs of vitamin A and 20mgs of
vitamin B per pound. Type 2 food contains 30mgs of vitamin A and 15 mgs of
vitamin B per pound. If type 1 and 2 foods cost Birr 5 and Birr 8 per pound
respectively, how many pounds of each type should be purchased to satisfy
the requirements at a minimum cost?
Vitamins
Foods A B
Type 1 10 20
Type 2 30 15
Solution:
Step 1. Problem definition
To determine the pounds of the two types of foods to be purchased to
make the diet at a minimum possible cost within the requirements.
Step 2. Variable representation
Let X1 and X2 be the number of pounds of type 1 and type 2 foods to be
purchased, respectively.
Step 3. Objective function
Cmin: 5X1 + 8X2
4. Constraints
10X1 + 30X2  140 System constraints
20X1 + 15X2  145
X1, X2 0 non-negativity constraints.

2.2 Solution Approaches to Linear Programming

Problems

There are two approaches to solving linear programming problems:

1. The Graphic solution method
2. The Algebraic solution/ simplex algorithm method

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2.2.1 Graphical Solution
To use the graphic method, the following steps are needed:
1. Formulating linear programming model
i.e.: problem definition, the decision variables, the objective function, and the
constraints
2. Draw a graph including all the constraints and identify the feasible region
3. Obtain a point on the feasible region that optimizes the objective function-
Optimal solution
4. Interpret the results
 Graphical LP is a two-dimensional model.

A Maximization Problem
Example: Consider two models of color TV sets; Model A and B, which are
produced by a company to maximize profit. The profit realized is $300 from A
and $250 from set B. The limitations are
A. availability of only 40hrs of labor each day in the production department.
B. a daily availability of only 45 hrs on machine time
C. ability to sell 12 sets of model A.
How many sets of each model will be produced each day so that the total
profit will be as large as possible?
Resources used per unit
Constraints Model A Maximum Available hrs.
Model B
(X1)
(X2)
Labor hr. 2 1 40
Machine hr. 1 3 45
Marketing hr. 1 0 12
Profit $300
$250

Solution
1. Formulation of mathematical modeling of LPP
Max Z=300X1 +250X2
St:

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 2X1 +X2< 40
X1 +3X2< 45 LPP Model
X1 < 12
X1, X2 > 0
2. Convert constraints inequalities into equalities
2X1 +X2 = 40
X1 +3X2= 45
X1 = 12
3. Draw the graph by intercepts
2X1 +X2 = 40 ==> (0, 40) and (20, 0)
X1 +3X2= 45==> (0, 15) and (45, 0)
X1 = 12==> (12, 0)
X1, X2 = 0
2
X2 X1
X1= +
40 0 X2 X1=12
=
4
X1
+
15 B 3
X2
Feasib C(12, 11) =
4
le X2=
5
Region 0 X1
D
4. AIdentify the feasible
12 20
area of the solution 45
which satisfies all constraints.
5. Identify the corner points in the feasible region
A (0, 0), B (0, 15), C (12, 11), and D (12, 0)
6. Identify the optimal point
7. Interprete the result
Corners Coordinates MaxZ=300 X1
+250X2
A (0, 0) $0
B (0, 15) $3750
C (12, 11) $6350
D (12, 0) $3600

Interpretation:
12 units of product A and 11 units of product B should be produced so that
the total profit will be $6350.
Exercise:

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A manufacturer of lightweight mountain tents makes two types of tents, a REGULAR
tent, and a SUPER tent. Each REGULAR tent requires 1 labor hour from the cutting
department and 3 labor hours from the assembly department. Each SUPER tent
requires 2 labor hours from the cutting department and 4 labor hours from the
assembly department. The maximum labor hours available per week in the cutting
department and the assembly department are 32 and 84 respectively. Moreover, the
distributor, because of demand, will not take more than 12 SUPER tents per week.
The manufacturer sells each REGULAR tent for $160 and costs $110 per tent to
make. Whereas SUPER tent ales for $210 per tent and costs $130 per tent to make.
Required:
A. Formulate the mathematical model of the problem
B. Using the graphic method, determine how many of each tent the company should
manufacture each week so as to maximize its profit.
C. What is this maximum profit assuming that all the tents manufactured in each
week are sold in that week?
Solution
Labor hours per tent
Department REGULAR (X 1) SUPER(X2) Maximum
labor-hours
available per week
Cutting department 1 2 32
Assembly department 3 4 84
Selling price per tent $160 $210
Cost per tent $110 $130
Profit per tent $50 $80

*The distributor will not take more than 12 SUPER tents per week. Thus, the
manufacturer should not produce more than 12 SUPER tents per week.
Let X1 =The No of REGULAR tents produced per week.
X2 =The No of SUPER tents produced per week.
X1 and X2 are called the decision variables

………. Cutting department constraint

………. Assembly department constraint
………. Demand constraint
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………. Non-negativity constraints
 Max . Z=50 X 1 +80 X 2
St :
X 1 +2 X 2 ≤32
3 X 1 +4 X 2 ≤84
X 2≤12
LPP Model
X 1 , X 2≥0

X2
X1
21 =0

16

B (0, 12) C(8,12)

D (20, 6) X2
Feasible
Region =0
X1
A(0,0) E (28, 0) 32

Corners Coordinates MaxZ=50 X1 +800X2

A (0, 0) $0
B (0, 12) $960
C (8, 12) $1360
D (20, 6) $1480
E (28, 0) $1400

Interpretation:
The manufacturer should produce and sell 20 REGULAR tents and 6 SUPERS tents
to get a maximum weekly profit of $1480.

B Minimization Problem
Example:
Suppose that a machine shop has two different types of machines; machine 1 and
machine 2, which can be used to make a single product. These machines vary in the
amount of product produced per hr., in the amount of labor used, and in the cost of
operation. Assume that at least a certain amount of product must be produced and
that we would like to utilize at least the regular labor force. How much should we

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utilize for each machine in order to utilize total costs and still meets the
requirement?
Resource used
Machine 1 (X1) Machine Minimum required
(X2) hours
Product 20 15 100
produced/hr
Labor/hr 2 3 15
Operation Cost $25 $30

Solution
Min. Z=25 X 1 +30 X 2
St :
20 X 1 +15 X 2 ≥100 LPP Model

2 X 1 +3 X 2 ≥15
X 1 , X 2≥0
Constraint equation:
20X1 +15X2=100 ==> (0, 20/3) and (5, 0)
2X1+3X2=15 ==> (0, 5) and (7.5, 0)
X1 X2> 0
X2
X1 =0
A (0, 20/3)

Feasible
Region
B (2.5, 3.33)
X2
=0
X1
5 C (7.5, 0)

Corners Coordinates MinZ=25 X1 +

30X2 X
A (0, 20/3) 200 1

B (2.5, 3.33) 162.5

C (7.5, 0) 187.5
=2.5

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X2=3.33 and
MinZ= 162.5dollar
Exercise:
A company owns two flour mills (A and B) which have different production capacities
for HIGH, MEDIUM, and LOW-GRADE flour. This company has entered a contract to
supply flour to a firm every week with 12, 8, and 24 quintals of HIGH, MEDIUM, and
LOW grade respectively. It costs the Co. $1000 and $800 per day to run mill A and
mill B respectively. On a day, mill A produces 6, 2, and 4 quintals of HIGH,
MEDIUM, and LOW-GRADE flour respectively. Mill B produces 2, 2, and 12 quintals
of HIGH, MEDIUM, and LOW-GRADE flour respectively. How many days per week
should each mill be operated in order to meet the contract order most economically
standardize? Solve graphically.
Solution:
No of days per week
Mil A (X1) Mill B(X2) Minimum flour in quintals
HIGH Capacity (in quintal) 6 2 12
MEDIUM Capacity (in quintal) 2 2 8
LOW Capacity (in quintal) 4 12 24
$1000 $800
Min. Z=100 X 1 +800 X 2
St :
6 X 1 +2 X 2 ≥12
2 X 1 +2 X 2 ≥8
4 X 1 +12 X 2 ≥24
X 1 , X 2≥0
Constraint equation:
6 X 1 +2 X 2 =12
2 X 1 +2 X 2 =8 (0, 6), (2, 0)
(0, 4), (4, 0)
4 X 1 +12 X 2 =24
(0, 2), (6, 0)
X 1 , X 2=0
Corners MinZ=$1000 X1 + 800X2
(0, 6) $4800
(1, 3) $3400
(3, 1) $3800
(6, 0) $6000
X1 =1
X2=3 and

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MinZ= $3400

X2
X1 =0
6 6X1+2 X2=12
2X1+2 X2=8
4 FR
4X1+12 X2=24
(1, 3)
(3, 1)
X2 =0
X1
2 4 6

Note:
-In maximization problems, our point of interest is looking at the furthest point from the
origin.
-In minimization problems, our point of interest is looking at the point nearest to the
origin.
2.3. SPECIAL CASES IN GRAPHICS METHODS

1. Redundant Constraint
If a constraint when plotted on a graph doesn’t form part of the boundary making the feasible
region of the problem that constraint is said to be redundant.
Example:
A firm is engaged in producing two products A and B. Each unit of product A requires 2 kg of
raw materials and 4 labor-hrs for processing. Whereas each unit of product B requires 3 kg of raw
materials and 3hrs of labor. Every unit of product A needs 4hrs to package and every unit of
product B needs 3.5 hours to package. Every week the firm has availability of 60 kg of raw
materials, 96 labor hours, and 105 hrs in the packaging department. 1 unit of product A sold yields
a Br. 40 profit and 1 unit of B sod yield Br. 35 profit.
Required:
a. Formulate this problem as a LPP
b. Find the optimal solution
Solution

Products Resource available per week

Resources A B
Raw materials (Kg) 2 3 60
Labor (hr) 4 3 96
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Packaging (hr) 4 3.5 105
Profit per unit Br.40 Br.35
Let X1 =The No of units of product A produced per week
X2 =The No of units of product B produced per week
a. LPP Model
Max . Z=40 X 1 +35 X 2
St :
2 X 1 +3 X 2 ≤60
4 X 1 +3 X 2 ≤96
4 X 1 +3 . 5 X 2 ≤105
X 1 , X 2≥0

X2
(0, 32)

Labor: 4X1 +3X2 = 96

(0, 30)
Packaging: 4X1 +3.5X2 = 105
(0, 20) C (18,8)
Raw material: 2X1 +3X2 = 60
FR
X1
A (0, 0) D (24, 0) (26, 0) (30, 0)

 The packaging hr is redundant.

Corners Coordinates MinZ=40 X1 + 35X2

A (0, 0) 0
B (0, 20) 700
C (18, 8) 1000
D (24, 0) 960
X1 =18
X2=8 and
MinZ= 1000
Interpretation:
The company should produce and sell 18 units of product A and 8 units of product B per week so
as to get a maximum profit of 1000.
 By this production plan the entire raw material will be consumed.

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 2X1 +3X2 <60
2(18) +3(8) =60
60=60==> No idle or unused raw material
 4X1 +3X2 <96
4(18) +3(8) <96
96=96 ==>the entire labor hour will be consumed
 4X1 +3.5X2 <105
100<105==>There is to be idle or unused capacity of 5hrs in the packaging department.
Note:
The packaging hour’s constraint does not form part of the boundary making the feasible region.
Thus, this constraint is of no consequence and is, therefore, redundant. The inclusion or exclusion
of a redundant constraint does not affect the optimal solution to the problem.

2. Multiple optimal Solutions

/Alternative optimal solutions/
This is a situation whereby an LPP has more than one optimal solution.
Multiple optimal Solutions will be found if two corners give an optimal solution, then the line
segment joining these points will be the solution.
We have an unlimited number of optimal solutions without increasing or decreasing the
objective function.
When the objective function is parallel to a binding constraint; (a constraint that is satisfied in
the equality sense by the optimal solution), the objective function will assume the same
optimal value at more than one solution point, for this reason, they are called alternative
optima.

Example:
The information given below is for products A and B.
Department Product A Product B Maximum available per
week
Cutting 3 6 900
Assembly 1 1 200
Profit per unit Br.8 Br.16

Assume that the company has a marketing constraint on selling product B and therefore it can sell
a maximum of 125 units of this product.

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Required:
a. Formulate the LPP of this problem
b. Find the optimal solution
Solution:
Let X1 =The No of units f product A produced per week
X2 =The No of units f product B produced per week
a. The LPP Model of the problem is:
Max . Z=8 X 1 +16 X 2
St : B (0, 125)
3 X 1 +6 X 2 ≤900 (0,150) (0, 200)

X 1 +X 2 ≤200 X2
A (0, 0)
X 2≤125
X 1 , X 2≥0

X1=0
D (100,100)

C (50, 125) X2=125 Marketing equation

Cutting: 3X1+6X2=900

FR X2=0

X1
E (200, 0) (300,0)

Corners Coordinates MaxZ=8 X1 + 16X2

A (0, 0) 0
B (0, 125) 2000
C (50, 125) 2400
D (100, 100) 2400
E (200, 100) 1600

Interpretation:
Both C and D are optimal solutions. Any point on the line segment CD will also lead to the same
optimal solution.
==>Multiple optimal solutions provide more choices for management to reach their objectives.

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 3. Infeasible Solution

A solution is called feasible if it satisfies all the constraints and the constraints and non-negativity
condition. However, it is sometimes possible that the constraints may be inconsistent so that there
is no feasible solution to the problem. Such a situation is called infeasibility.

Example:
MaxZ=20X1+30X2
St:
2X1+X2< 40
4X1+X2< 60
X1 > 30
X1, X2 > 0
Solution:

X2 X1=0
(0, 60) X1=30

4X1+X2= 60
(0, 40)

2X1+X2= 40
X2=0
X1
(15, 0) (20, 0) (30, 0)

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Note:
-In the above graph, there is no common point in the shaded area.
-All constraints cannot be satisfied simultaneously and there is no feasible solution to the problem.

4. Mix of constraints

Example:
ABC gasoline company has two refineries with different production capacities. Refinery A can
produce 4,000 gallons per day of super unleaded gasoline, 2000 gallons per day of regular
unleaded gasoline, and 1000 gallons per day of leaded gasoline. On the other hand, refinery B
can produce 1000 gallons per day of super unleaded, 3000 gallons per day of regular unleaded,
and 4,000 gallons per day of leaded. The company has made a contract with an automobile
manufacturer to provide 24000 types of gasoline super unleaded, 42000 gallons of regular
unleaded, and 36000 gallons of leaded. The automobile manufacturer wants delivery in not more
than 14 days.
The cost of running refinery A is Br.1500 per day and refinery B is Br.2400 per day.
Required:
A. Formulate this problem as a LPP
B. Determine the number of days the gasoline company should operate each refinery in order to meet the
terms of the above contract most economically. (i.e., At a minimum running cost)
C. Which grades of gasoline would be overproduced?
Solution:
Production per day (in gallons) Contract with an automobile
manufacturer
Grade of gasoline A B
SUPER UNLEADED 4000 1000 24,000
REGULAR UNLEADED 2000 3000 42,000
LEADED 1000 4000 36,000
Running cost per day Br.1,500 Br.2,400

 The automobile manufacturer wants delivery in not more than 14 days.

Let X1 =The No of days refinery A should work.
X2 =The No of days refinery B should work.
a. LPP of the problem
MinZ=1500X1+2400X2
St:

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 4000X1+1000X2>24000
2000X1+3000X2>42000
1000X1+2000X2> 36000
X1 < 14
X2< 14
X1, X2 > 0
==>To simplify the problem, divide by 1000 the constraints
MinZ=1500X1+2400X2
St:
4X1+1X2>24
2X1+3X2>42
X1+4X2 > 36
X1 < 14
X2< 14
X1, X2 > 0

24 Delivery time: X1=14

SUG: 4X1+X2 =24

A (2.5, 14) B (14, 14) Delivery time: X2=14

FR

D (12, 6) C (14, 5.5)

LG: X1+4X2=36

RUG: 2X1+3X2 =42

(6, 0) (14, 0) (21, 0) (36, 0)

Note: Point A, B, C, and D are solved by the elimination-substitution method
________________________________________________________________
Corners Coordinates MaxZ=1500X1 + 2400X2
A (2.5, 14) $37350
B (14, 14) 54600
C (14, 5.5) 34200
D (12, 6) 32400
E (3, 12) 33300
_________________________________________________________________

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Interpretation:
The oil company should operate refinery A for 12 days and refinery B for 6 days at a minimum
operating cost of $32,400.
c. Is there any overproduction
SUG: 4000X1+1000X2>24000
4000(12) +1000(6)>24000
54000 > 24000
Therefore, 30,000 gallons overproduction
RUG: 2000X1+3000X2>42000
2000(12) +3000(6)>42000
42000 > 42000
Therefore, there is no overproduction of RUG
LG: 1000X1+4000X2>36000
1000(12) +1000(6)>36000
36000 > 36000 Therefore, No over production of LG
5. Unbounded Solution
When the value of decision variables in LP is permitted to increase infinitely without
violating the feasibility condition, then the solution is said to be unbounded. Here,
the objective function value can also be increased infinitely. However, an unbounded
feasible region may yield some definite value of the objective function.
Example:
Use the graphical method to solve the following LPP.
1. Max.Z=3X1+4X2
St:
X1-X2<-1==> -X1+X2>1 since the quantity solution is positive
-X1+X2<0
X1, X2 > 0
X2 X1-X2 =-
1
X1+X2
=0

Unbounded
1 Feasible Region

X1

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Fig: Unbounded Solution
2. Max.Z=3X1+2X2
St:
X1-X2<1
X1+X2>3
X1, X2 > 0

X2

A(0,3) Unbounded
Feasible Region
X1-X2=1

B (2, 1)
X1+X2=3
X1

Note: here that the two corners of the region are A (0,3) and B (2,1). The value of MaxZ (A)=6
and MaxZ (B)=8. But there exist a number of points in the shaded region for which the value of
the objective function is more than 8. For example, point (10, 12) lies in the region, and the
function value at this point is 70 which is more than 8.
Remark:
An unbounded solution does not mean that there is no solution to the given LPP but implies that
there exists an infinite number of solutions.
2.4 SIMPLEX METHOD
The graphical method of solving LPPs provides fundamental concepts for fully
understanding the LP process. However, the graphical method can handle problems
involving only two decision variables (say X1 and X2).

In 1940’s George B.Dantzig developed an algebraic approach called the Simplex

Method which is an efficient approach to solving applied problems containing

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numerous constraints and involving many variables that cannot be solved by the
graphical method.

The simplex method is an ITERATIVE or “step by step” method or repetitive algebraic approach that
moves automatically from one basic feasible solution to another basic feasible solution improving the
situation each time until the optimal solution is reached.

Note:

The simplex method starts with a corner that is in the solution space or feasible
region and moves to another corner. The solution space improves the value of the
objective function each time until an optimal solution is reached at the optimal
corner.

Scope of solution of LPP by simplex method

The following types of problems are solved by the simplex method:
Maximize Z with inequalities of constraints in “< “form.
Minimize Z with inequalities of constraints in “>“form.
Maximize Z with inequalities of constraints in “>“form.
Maximize Z or Minimize Z with inequalities of constraints in “< “, “>“or “=” form.

2.4. 1 MAXIMIZATION PROBLEMS

Maximize Z with inequalities of constraints in “< “form
Example:
Solve the problem using the simplex approach
Max.Z=300x1 +250x2
Subject to:
2x1 + x2 < 40 (Labor)
x1+3x2 < 45 (Machine)
x1 < 12 (Marketing)
x1, x2 > 0
Solution
Step 1: Formulate LPP Model
Using the four steps discussed so far (problem definition, variable
representation, determining the objective function, and identifying
constraints)
Step 2: Standardize the problem

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 i.e Convert constraint inequality into equality form by introducing a variable
called Slack variable.
Slack Variables: A slack variable(s) is added to the left-hand side of a <
constraint to convert the constraint inequality to equality. The value of the
slack variable shows unused resources.
A slake variable emerges when the LPP is a maximization problem.
Slack variables represent unused resources or idle capacity. Thus, they don’t
produce any product and their contribution to profit is zero.
Slack variables are added to the objective function with zero coefficients.

Let that s1, s2, and s3 are unused labor, machine, and marketing hrs respectively.
Max.Z=300x1 +250x2 + 0 s1 +0 s2+ 0 s3
St:
2 x1+x2 + s1 +0 s2+ 0 s3= 40 Standard form
x1+3x2 +0s1 + s2+ 0 s3= 45
x1 + 0s1 + 0s2+ s3= 12
x1, x2, s1 , s2, s3 > 0
Step 3: Obtain the initial simplex tableau
To represent the data, the simplex method uses a table called the simplex
table or the simplex matrix.
In constructing the initial simplex tableau, the search for the optimal solution
begins at the origin. Indicating that nothing can be produced;
Thus, the first assumption, the number of productions implies that x1 =0 and x2=0

==>2 x1+x2 + s1 +0 s2+ 0 s3= 40 ==> x1+3x2 +0 s1 + s2+ 0 s3= 45

2(0) +0 + s1 +0 s2+ 0 s3= 40 0 +3(0) + 0s1 + s2+ 0 s3= 45
s1= 40 – Unused labor hrs. s2= 45 – Unused machine
hrs.

==> x1+0s1 +0s2+ s3= 12

0 +0s1 +0 s2+ s3= 12
s3= 12 – Unused Marketing hrs.
Therefore, Max.Z=300x1 +250x2 + 0 s1 +0 s2+ 0 s3
=300(0) +250(0) + 0(40) +0(45) + 0(12)
=0
Note:

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In general, whenever there are n variables and m constraints (excluding the
non-negativity), where m is less than n (m<n), n-m variables must be set
equal to zero before the solution can be solved algebraically.

a. Basic variables are variables with non-zero solution values.

Or: basic variables are variables that are in the basic solution. Basic
variables have 0 values in the Cj-Zj row.

b. Non-basic variables are variables with zero solution values.

Or: non-basic variables are variables that are out of the solution.

==>n=5 variables (x1, x2, s1, s2, and s3) and m=3 constraints (Labor,
machine, and marketing constraints), excluding non-negativity.

Therefore, n-m=5-3=2 variables (x1 and x2) are set equal to zero in the 1st
simplex tableau. These are non-basic variables
. 3 Variables (s1, s2, and s3) are
basic variables (in the 1 st simplex tableau) because they have non-zero
solution values.

Step 4: Construct the initial simplex tableau

Initial simplex tableau
Slack variables

Real
Basic
columns

or
Pro or
decis
fit Solutio
ion
per n
varia
quantity
Solution

uni variabl
column

bles
t e
colu
col column
mn
um

Profit per unit

300 250 0 0
Cj
0
X1 X2 S1 S2
SV Q
S3
Constraint
2 1 1 0 40 equation R1
0 S1
0
R2
Gross Profit
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| P aProfit
ge
row
/Indicator
 1 3 0 1 45
0 S2
0 R3
1 0 0 0
0 S3 12
1
0 0 0 0
Zj 0
0
Cj - 300 250 0 0
Zj 0

Step 5: Choose the “incoming” or “entering” variables

Note: The entering variable is the variable that has the most positive value in
the Cj - Zj row also called as indicator row. Or the entering variable is the
variable that has the highest contribution to profit per unit.
a) X1 in our case is the entering variable
b) The column associated with the entering variable is called the key or pivot
column (X1 column in our case)
Step 6: Choose the “leaving “or “outgoing” variable
==> In this step, we determine the variable that will leave the solution for X1 (or
entering variable)
Note:
The row with the minimum or lowest positive (non-negative) replacement
ratio shows the variable to leave the solution.

Replacement Ratio (RR) = Solution Quantity (Q)

Corresponding values in pivot column

Note: RR>0
The variable leaving the solution is called leaving variable or outgoing
variable.
The row associated with the leaving variable is called the key or pivot
row (s3 column in our case)
The element that lies at the intersection of the pivot column and pivot row
is called the pivot element (No 1 in our case)
Step 7: Repeat step 3-5 till an optimum basic feasible solution is
obtained.
Or: repeat steps 3-5 till no positive value occurs in the Cj - Zj row.

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Note:
Divide each element of the pivot row by the pivot element to find new
values in the key or pivot row.
Perform row operations to make all other entries for the pivot column
equal to zero.
2nd simplex tableau
300 250 0 0
Cj
0
X1 X2 S1 S2
SV Q
S3
0 1 1 0
0 S1 16
-2
0 3 0 1
0 S2 33
-1
30 1 0 0 0
X1 12
0 1
300 0 0 0
Zj
300
0 250 0 0
Cj - Z j
-300

R2 NEW=R2 OLD-R3 NEW

R1 NEW=R1OLD-2 R3NEW
R3 NEW=R3OLD
3rd
simplex tableau

Cj 300 250 0 0 0
X1 X2 S1 S2
SV Q
S3
0 0 1 -1/3 -
0 S1 17/3
5/3
25 0 1 0 1/3 -
X2 31/3
0 1/3
30 1 0 0 0 R2 NEW=R2
X1 12
0 1 OLD/3
300 250 0 250/3 R1 NEW=R1
Zj 6350
650/3 OLD-R2 NEW
0 0 0 -250/3 -
Cj - Z j R3 NEW=R3
650/3
OLD
Since all the Cj - Zj < 0 optimal solution is reached.
Therefore, X1=12, X2=11, S1=5 and Max Z=6350

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