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Ms6... LP Graphical Solution - Part 1

The document introduces linear programming (LP) models, focusing on maximizing profits through resource allocation in production scenarios, such as creating dragons and tigers from paper. It outlines the properties, assumptions, and formulation of LP problems, including a practical example involving pharmaceutical production. Key concepts include objective functions, constraints, and the importance of linear relationships in modeling.

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dilaraarslan2003
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8 views17 pages

Ms6... LP Graphical Solution - Part 1

The document introduces linear programming (LP) models, focusing on maximizing profits through resource allocation in production scenarios, such as creating dragons and tigers from paper. It outlines the properties, assumptions, and formulation of LP problems, including a practical example involving pharmaceutical production. Key concepts include objective functions, constraints, and the importance of linear relationships in modeling.

Uploaded by

dilaraarslan2003
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Introduction to Management

Science
Linear Programming Models: The
Graphical Solution
お
An Origami Game り
が
み

• We have 6 pieces of large paper and 9


pieces of small paper
Small Small Small
Large Large
Small
Large Small Small
Large Small

Large Large Small


Small
お
り
が
み
• A dragon needs

Large Large Small Small

• A tiger needs

Large Small Small


お
り
が
み

• Father will give 5 candies for a dragon and


3 candies for a tiger
• Summary
Dragon needs Tiger needs Available
Large paper 2 paper/unit 1 paper/unit 6 paper
Small paper 2 paper/unit 2 paper/unit 9 paper
Profit 5 candy/unit 3 candy/unit
お
り
が
み
• What is my objective?
• Maximize the received candy
• Notice that making dragons is more
profitable than making tigers
Dragon Tiger Profit Unused Unused
large small
Trial 1: 0 4 12 2 1
Dragon Tiger Profit Unused Unused
large small
Trial 2: 3 0 15 0 3
お
り
が
み
Dragon Tiger Profit Unused Unused
large small
Trial 3: 2 2 16 0 1

• This common sense method is suitable for


such a small problem
• What if we had 10 products and each
product needs 5 different resources?
• We need a formal approach
Linear Programming

• Linear programming (LP) is the most


common type of mathematical programming.
• One assumes all relevant input data and
parameters are known with certainty in
models (deterministic models).
• Computers play important role in
advancement and use of LP.
Linear Programming

• Brief History
• Kolmogorov: optimality – before WWII
• Kantorovich: optimal planning
• Stigler: diet problems – 1945
• Dantzig: Simplex algorithm – 1947
• Karmarkar: Karmarkar algorithm - 1984
Properties of an LP Model
1. All problems seek to maximize or minimize some
quantity, usually profit or cost (called objective
function).
2. LP models usually include restrictions, or
constraints, limit degree to which one can pursue
objective.
3. Must be alternative courses of action from which
to choose.
4. Objective and constraints in LP problems must be
expressed in terms of linear equations or
inequalities.
• linear
2A + 5B = 10

• NOT linear
2A2 + 5B3 + 3AB = 10

• Linear constraints are linear functions


2A + 5B = 10 or 2A + 5B  10 or 2A + 5B  10
• A feasible solution satisfies all the
problem's constraints.
• An optimal solution is a feasible solution
that results in the largest possible objective
function value when maximizing (or
smallest when minimizing).
Assumptions of an LP model

1. Conditions of certainty exist.

2. Proportionality in objective function and


constraints (1 unit – 3 hours, 4 units 12 hours).

3. Additivity (total of all activities equals sum of


individual activities).

4. Divisibility assumption that solutions need not


necessarily be in whole numbers (integers).
Problem Formulation

Problem formulation or modeling is the


process of translating a verbal statement of a
problem into a mathematical statement.
• Define the decision variables
• Construct the objective function
• Formulate the constraints
Product-mix problem
(a maximization problem)
• GETWELLSOON Pharmaceutical Inc.
• Each gram of brand D brings $5 profit, brand P
brings $7 profit.
• Due to the current inventory, brand D should be
produced no more than 6 units.
• Brand D requires 2 units of antibiotics, brand P
requires 3 units of antibiotics. Total antibiotics
available is 19 units.
• Brand D and brand P each require a single unit of
painkiller. Total painkillers available is 8 units.
• What are our decision variables?
• Amount(gr) of brand D to produce = x1.
• Amount(gr) of brand P to produce = x2.
• What is our objective?
• Maximize total profit
• What are our constraints?
• Production limit, antibiotics, painkillers
• Non-negative decision variables
• LP model for GETWELLSOON

Max 5x1 + 7x2

s.t. x1 < 6 (production limit)


2x1 + 3x2 < 19 (antibiotic const.)
x1 + x2 < 8 (painkiller const.)

x1, x2 > 0 (non-negativity)

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