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Module IV

Linear programming is a mathematical technique used to optimally allocate limited resources to achieve business objectives, such as maximizing profit or minimizing costs. The document outlines the formulation of a linear programming problem with constraints and an objective function, illustrated through an example of a manufacturer determining the optimal production levels of two products to maximize profit. The example includes specific constraints related to production processes and the associated profits for each product.

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2 views

Module IV

Linear programming is a mathematical technique used to optimally allocate limited resources to achieve business objectives, such as maximizing profit or minimizing costs. The document outlines the formulation of a linear programming problem with constraints and an objective function, illustrated through an example of a manufacturer determining the optimal production levels of two products to maximize profit. The example includes specific constraints related to production processes and the associated profits for each product.

Uploaded by

souravkartiksahoo
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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MODULE-IV

Linear Programming
• Def:- It is a mathematical technique for the purpose of allocating the limited resources in an optimal manner to
achieve the objectives of the business which may be maximum overall profit or minimum overall cost.
Mathematical formulation of the problem:
• Assumptions:
1. A well defined objective function (maximum profit or minimize the cost)
2. No. of constraints
3. Parameters are subjected to variation in magnitude
4. Relationship expressed by constraints and objective functions are linear
5. The decision variables are non negative
• Example:
A manufacturer wishes to determine how to produce two products A and B so as to realize the maximum total
profit from the sale of the products. Both products are made in two processes I and II. It takes 7 hrs in process I and
4 hrs in process II to manufacture 100 units of product A. it requires 6 hrs in process I and 2 hrs in process II to
manufacture 100 units of product B. process I can handle 84 hrs of work and process II can take 32 hrs of work in
the scheduled period. If the profit is Rs.4 per 100 units of product B and Rs.11 per 100 units of product A, then how
many of each products A and B should be manufactured to realise the maximum profit? It is assumed that whatever
is produced can be sold and that the set up time on the two processes is negligeable.
Answer:
Let X1=No. of units (in hundreds) of product A to be manufactured
X2=No. of units (in hundreds) of product B to be manufactured
Z=Total incremental profit of the firm
The objective function is

Maximize Z = 11X1+4X2
Here X1≥ 0, X2 ≥ 0
For process I, 7X1+6X2 ≤ 84
Constraints
process II, 4X1+2X2 ≤ 32

Total formulation is
Maximize Z = 11X1+4X2
Subjected to 7X1+6X2 ≤ 84
4X1+2X2 ≤ 32
X1≥ 0, X2 ≥ 0

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