Chapter 2 n Development of all LP models can be examined in

a three step process:

An Introduction to Linear Programming : Graphical
and Computer Methods • (1) formulation
Learning Objectives • (2) solution and

 Understand basic assumptions and properties of • (3) interpretation.

linear programming (LP)
Properties of a LP Model
 General LP notation
 LP formulation of the model 1. All problems seek to maximize or minimize some
 A Maximization Problem quantity, usually profit or cost (called the objective
 Graphical solution function).
 A Minimization Problem 2. LP models usually include restrictions, or
 Special Cases constraints, that limit the degree to which one can
 Formulating a Spreadsheet Model pursue the objective.
Introduction 3. There must be alternative courses of action from
• Management decisions in many which one can choose.
organizations involve trying to make most 4. The objective and constraints in LP problems must
effective use of resources. be expressed in terms of linear equations or
• Include machinery, labor, money, time, inequalities.
warehouse space, and raw materials. Three Steps of Developing LP Problem
• May be used to produce products - such as Formulation.
computers, automobiles, or clothing or
• Process of translating problem scenario into
• Provide services - such as package a simple LP model framework with a set of
delivery, health services, or investment mathematical relationships.
decisions.
Solution.
Mathematical Programming
• Mathematical relationships resulting from
• Mathematical programming is used for the formulation process are solved to
resource allocation problems. identify an optimal solution.
• Linear programming (LP) is the most common
type of mathematical programming. Interpretation and What-if Analysis.
• One assumes that all the relevant input data
• Problem solver or analyst works with
and parameters are known with certainty in
manager to
models (deterministic models).
• Computers play an important role in the  Interpret results and implications of
advancement and use of LP. problem solution.
Development of a LP Model  Investigate changes in input
parameters and model variables
n LP has been applied extensively to various
and impact on problem solution
problems areas -
results.
• medical, transportation, operations,
Basic Assumptions of a LP Model
petroleum
1. Conditions of certainty exist.
• financial, marketing, accounting,
2. Proportionality in the objective function and
• human resources, agriculture, and others
constraints (1 unit – 3 hours, 3 units 9 hours).
 3. Additivity (the total of all activities equals the sum n If a constraint can be removed without affecting the
of the individual activities). shape of the feasible region, the constraint is said to
be redundant.
4. Divisibility assumption that solutions need not
necessarily be in whole numbers (integers). n A non-binding constraint is one in which there is
positive slack or surplus when evaluated at the
Linear Equations and Inequalities
optimal solution.
n This is a linear equation:
n A linear program which is over-constrained so that
2X1 + 15X2 = 10
no point satisfies all the constraints is said to be
n This equation is not linear: infeasible.
5X+4X2 + 15X3 = 100
n LP uses, in many cases, inequalities like:
Guidelines for Model Formulation
X1 + X2  C or X1 + X2  C
n Understand the problem thoroughly.
LP Solutions
n Write a verbal statement of the objective function
n The maximization or minimization of some and each constraint.
quantity is the objective in all linear programming
problems. n Define the decision variables.

n A feasible solution satisfies all the problem's n Write the objective function in terms of the
constraints. decision variables.

n Changes to the objective function coefficients do n Write the constraints in terms of the decision
not affect the feasibility of the problem. variables.

n An optimal solution is a feasible solution that A Simple Maximization Problem

results in the largest possible objective function
Olympic Bike is introducing two new lightweight bicycle
value, z, when maximizing or smallest z when
frames, the Deluxe and the Professional, to be made from
minimizing.
special aluminum and steel alloys. The anticipated unit
n A feasible region may be unbounded and yet there profits are $10 for the Deluxe and $15 for the Professional.
may be optimal solutions. This is common in
The number of pounds of each alloy needed per frame is
minimization problems and is possible in
summarized below. A supplier delivers 100 pounds of the
maximization problems.
aluminum alloy and 80 pounds of the steel alloy weekly.
n The feasible region for a two-variable linear How many Deluxe and Professional frames should Olympic
programming problem can be a single point, a line, produce each week?
a polygon, or an unbounded area.
Aluminum Alloy Steel Alloy
n Any linear program falls in one of three categories:
Deluxe 2 3
n is infeasible
Professional 4 2
n has a unique optimal solution or alternate
Max. Example: Olympic Bike Co.
optimal solutions
n Model Formulation
n has an objective function that can be
increased without bound (Unbounded) • Verbal Statement of the Objective Function
n A graphical solution method can be used to solve a Maximize total weekly profit.
linear program with two variables.
• Verbal Statement of the Constraints
n If a linear program possesses an optimal solution,
then an extreme point will be optimal. Total weekly usage of aluminum alloy < 100 pounds.
Total weekly usage of steel alloy < 80 pounds. x1, x2 > 0
• Definition of the Decision Variables Special Cases
x1 = number of Deluxe frames produced weekly. n Alternative Optimal Solutions
x2 = number of Professional frames produced weekly. n Infeasible Solutions
n Model Formulation (Continued) n Unbounded Problem
Max 10x1 + 15x2 (Total Weekly Profit) Alternative Optimal Solutions
n In the graphical method, if the objective function
line is parallel to a boundary constraint in the
s.t. 2x1 + 4x2 < 100 (Aluminum Available)
direction of optimization, there are alternate
3x1 + 2x2 < 80 (Steel Available) optimal solutions, with all points on this line
segment being optimal.
x1, x2 > 0 (Non-negativity)
Example:
Graphical Solution Procedure
Max z = 8x1 + 6x2
s.t. 4x1 + 3x2 < 12
9x1 + 12 x2 < 36
x1, x2 > 0

Slack and Surplus Variables

n A linear program in which all the variables are non-
negative and all the constraints are equalities is said
to be in standard form.
n Standard form is attained by adding slack variables
to "less than or equal to" constraints, and by
subtracting surplus variables from "greater than or
equal to" constraints.
n Slack and surplus variables represent the difference
between the left and right sides of the constraints. Example: Infeasible Problem
n Slack and surplus variables have objective function n Solve graphically for the optimal solution:
coefficients equal to 0.
Max z = 2x1 + 6x2
A Simple Minimization Problem
s.t. 4x1 + 3x2 < 12
n Solve graphically for the optimal solution:
2x1 + x2 > 8
Min z = 5x1 + 15x2
x1, x2 > 0
s.t. x1 + x2 > 500
x1 < 400
x2 > 200
 Chapter 2
Linear Programming Models:
Graphical and Computer Methods
Steps in Developing a Linear Programming (LP) Model
1) Formulation
2) Solution
3) Interpretation and Sensitivity Analysis
Properties of LP Models
Example: Unbounded Problem
1) Seek to minimize or maximize
n Solve graphically for the optimal solution:
2) Include “constraints” or limitations
Max z = 3x1 + 4x2
3) There must be alternatives available
4) All equations are linear
s.t. x1 + x2 > 5
Example LP Model Formulation:
3x1 + x2 > 8 The Product Mix Problem
x1, x2 > 0 Decision: How much to make of > 2 products?
Objective: Maximize profit
Constraints: Limited resources
Example: Flair Furniture Co.
Two products: Chairs and Tables
Decision: How many of each to make this
month?
Objective: Maximize profit

Using Excel for solving LP problems

n Use “Solver” in Excel and solve the LP problems
given previously.
• Tools/Solver
End of chapter 2
Decision Variables:
T = Num. of tables to make
C = Num. of chairs to make
Objective Function: Maximize Profit
Maximize $7 T + $5 C
Constraints:
• Have 2400 hours of carpentry time available
3 T + 4 C < 2400 (hours)
• Have 1000 hours of painting time available
2 T + 1 C < 1000 (hours)
More Constraints:
• Make no more than 450 chairs
C < 450 (num. chairs)
• Make at least 100 tables
T > 100 (num. tables)
Nonnegativity:
Cannot make a negative number of chairs or tables
T>0
C>0
Model Summary
Max 7T + 5C (profit)
Subject to the constraints:
3T + 4C < 2400 (carpentry hrs)
2T + 1C < 1000 (painting hrs)
C < 450(max # chairs)
T > 100(min # tables)
T, C > 0(nonnegativity)
Graphical Solution
• Graphing an LP model helps provide insight into
LP models and their solutions.
• While this can only be done in two dimensions, the
same properties apply to all LP models and
solutions.
 Example: x < 10

x > 15

Using Excel’s Solver for LP

LP Characteristics Recall the Flair Furniture Example:
• Feasible Region: The set of points that satisfies all Max 7T + 5C (profit)
constraints
Subject to the constraints:
• Corner Point Property: An optimal solution must
lie at one or more corner points 3T + 4C < 2400 (carpentry hrs)

• Optimal Solution: The corner point with the best 2T + 1C < 1000 (painting hrs)
objective function value is optimal C < 450 (max # chairs)
Special Situation in LP T > 100 (min # tables)
1. Redundant Constraints - do not affect the T, C > 0 (nonnegativity)
feasible region
Go to file 2-1.xls
Example: x < 10
x < 12
The second constraint is redundant because it is less
restrictive.
2. Infeasibility – when no feasible solution exists
(there is no feasible region)