Linear Programmin1 Summary
Linear Programmin1 Summary
INTRODUCTION
Business organizations have various objectives which they have to meet using a certain
available resources that are usually in scarce supply, for instance:
i) A manufacturing company deems to provide quality products and make profit through
utilization of the limited resources like personnel, material, machine, lime, market etc.
ii) A hospital has the main objective of maintaining and restoring good health to its
patients at an affordable cost to the patients. Resources include medical personnel,
number of beds, pharmacies and laboratories.
ILLUSTRATION
Maximization case
A company produces inexpensive tables and chairs. The production process for each is
similar in that both require a certain number of hours of carpentry work and a certain
number of labour hours in the painting department. Each table takes 4 hours of carpentry
and 2 hours in the painting shop. Each chair requires 3 hours of carpentry and 1 hour in
painting. During the current production period, 240 hours of carpentry time are available
and 100 hours in painting time are available. Each table sold yield a profit of $7 and each
chair produced is sold for a $5 profit.
Formulate this problem as a linear programming problem to determine as to how many
tables and chairs should be produced so that the firm can maximize the profit. Assume
that there are no marketing constraints so that all that is produced can be sold.
QUANTITATIVE ANALYSIS
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SOLUTION
The objective function:
The goal of the firm is the maximization of profit, which would be obtained by producing
and selling the tables and chairs.
It we let x1 be the number of tables, x2 be the number of chairs and Z be the total profit.
Then Z = 7x1 + 5x2 (this is the objective function which is linear in nature)
NB: since the problem calls for a decision about the optimal (best possible) values of x1
and x2, these are known as the decision variables.
Constraint
These are the resources which must be in limited supply. The mathematical relationship
involving ≤ or ≥ sign). Each table requires 4 hours of carpentry while a chair requires
which it used to explain this limitation is inequality (a mathematical relationship
3hours. Hence the total consumption of carpentry hours would be 4x1 + 3x2 , which
inequality of the form. 4x1 + 3x2≤ 240. Similarly, a table requires 2 hours of painting
cannot exceed the total availability of 240 hours. This constraint can be expressed as an
while a chair requires 1 hour, With the availability of 100 hours, we have 2x1 + x2≤ 100
as the painting constraint.
Non-negativity condition: