MBA-H2040 Quantitative Techniques for Managers

UNIT I
LESSON

2 LINEAR PROGRAMMING –GRAPHICAL METHOD

LESSON STRUCTURE

2.1 Introduction to Linear Programming

2.2 Linear Programming Problem
Formulation
2.3 Formulation with Different Types of
Constraints
2.4 Graphical Analysis of Linear
Programming
2.5 Graphical Linear Programming Solution
2.6 Multiple Optimal Solutions
2.7 Unbounded Solution
2.8 Infeasible Solution
2.9 Summary
2.10 Key Terms
2.11 Self Assessment Questions
2.12 Key Solutions
2.13 Further References
MBA-H2040 Quantitative Techniques for Managers

Objectives
After studying this lesson, you should be able
to:

 Formulate Linear Programming Problem

 Identify the characteristics of linear
programming problem
 Make a graphical analysis of the linear
programming problem
 Solve the problem graphically
 Identify the various types of solutions
MBA-H2040 Quantitative Techniques for Managers

2.1 Introduction to Linear Programming

Linear Programming is a special and versatile technique which can be applied to a variety of
management problems viz. Advertising, Distribution, Investment, Production, Refinery Operations, and
Transportation analysis. The linear programming is useful not only in industry and business but also in
non-profit sectors such as Education, Government, Hospital, and Libraries. The linear programming
method is applicable in problems characterized by the presence of decision variables. The objective
function and the constraints can be expressed as linear functions of the decision variables. The
decision variables represent quantities that are, in some sense, controllable inputs to the system being
modeled. An objective function represents some principal objective criterion or goal that measures the
effectiveness of the system such as maximizing profits or productivity, or minimizing cost or
consumption. There is always some practical limitation on the availability of resources viz. man,
material, machine, or time for the system. These constraints are expressed as linear equations involving
the decision variables. Solving a linear programming problem means determining actual values of the
decision variables that optimize the objective function subject to the limitation imposed by the
constraints.
The main important feature of linear programming model is the presence of linearity in the
problem. The use of linear programming model arises in a wide variety of applications. Some model
may not be strictly linear, but can be made linear by applying appropriate mathematical transformations.
Still some applications are not at all linear, but can be effectively approximated by linear models. The
ease with which linear programming models can usually be solved makes an attractive means of dealing
with otherwise intractable nonlinear models.

2.2 Linear Programming Problem Formulation

The linear programming problem formulation is illustrated through a product mix problem. The product
mix problem occurs in an industry where it is possible to manufacture a variety of products. A product
has a certain margin of profit per unit, and uses a common pool of limited resources. In this case the
linear programming technique identifies the products combination which will maximize the profit
subject to the availability of limited resource constraints.

Example 2.1:

Suppose an industry is manufacturing tow types of products P1 and P2. The profits per Kg of the two
products are Rs.30 and Rs.40 respectively. These two products require processing in three types of
machines. The following table shows the available machine hours per day and the time required on each
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machine to produce one Kg of P1 and P2. Formulate the problem in the form of linear programming
model.

Profit/Kg P1 P2 Total available Machine

Rs.30 Rs.40 hours/day
Machine 1 3 2 600
Machine 2 3 5 800
Machine 3 5 6 1100

Solution:

The procedure for linear programming problem formulation is as follows:

Introduce the decision variable as follows:

Let x1 = amount of P1
x2 = amount of P2

In order to maximize profits, we establish the objective function as

30x1 + 40x2

Since one Kg of P1 requires 3 hours of processing time in machine 1 while the corresponding
requirement of P2 is 2 hours. So, the first constraint can be expressed as

3x1 + 2x2 ≤ 600

Similarly, corresponding to machine 2 and 3 the constraints are

3x1 + 5x2 ≤ 800

5x1 + 6x2 ≤ 1100
In addition to the above there is no negative production, which may be represented algebraically as

x1 ≥ 0 ; x2 ≥ 0

Thus, the product mix problem in the linear programming model is as follows:

Maximize
30x1 + 40x2

Subject to:
3x1 + 2x2 ≤ 600
3x1 + 5x2 ≤ 800
5x1 + 6x2 ≤ 1100
x1≥ 0, x2 ≥ 0

2.3 Formulation with Different Types of Constraints

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The constraints in the previous example 2.1 are of “less than or equal to” type. In this section we are
going to discuss the linear programming problem with different constraints, which is illustrated in the
following Example 2.2.
Example 2.2:

A company owns two flour mills viz. A and B, which have different production capacities for high,
medium and low quality flour. The company has entered a contract to supply flour to a firm every month
with at least 8, 12 and 24 quintals of high, medium and low quality respectively. It costs the company
Rs.2000 and Rs.1500 per day to run mill A and B respectively. On a day, Mill A produces 6, 2 and 4
quintals of high, medium and low quality flour, Mill B produces 2, 4 and 12 quintals of high, medium
and low quality flour respectively. How many days per month should each mill be operated in order to
meet the contract order most economically.
Solution:

Let us define x1 and x2 are the mills A and B. Here the objective is to minimize the cost of the machine
runs and to satisfy the contract order. The linear programming problem is given by
Minimize
2000x1 + 1500x2

Subject to:
6x1 + 2x2 ≥ 8
2x1 + 4x2 ≥ 12
4x1 + 12x2 ≥ 24

x1 ≥ 0, x2 ≥ 0

2.4 Graphical Analysis of Linear Programming

This section shows how a two-variable linear programming problem is solved graphically, which is
illustrated as follows:

Example 2.3:
Consider the product mix problem discussed in section 2.2

Maximize
30x1 + 40x2

Subject to:
3x1 + 2x2 ≤ 600
3x1 + 5x2 ≤ 800
5x1 + 6x2 ≤ 1100
x1≥ 0, x2 ≥ 0

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From the first constraints 3x1 + 2x2 ≤ 600, draw the line 3x1 + 2x2 = 600 which passes through the point
(200, 0) and (0, 300). This is shown in the following graph as line 1.

300
3x1 + 2x2 = 600(line 1)

200

B
X2

C
100

3x1 + 5x2 = 800(line 2)

5x1 + 6x2 = 1100(line 3)

A
D
0 50 100 150 X1
200 275

Graph 1: Three closed half planes and Feasible Region

Half Plane - A linear inequality in two variables is called as a half plane.

Boundary - The corresponding equality (line) is called as the boundary of the half plane.

Close Half Plane – Half plane with its boundary is called as a closed half plane.
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In this case we must decide in which side of the line 3x1 + 2x2 = 600 the half plane is located. The

easiest way to solve the inequality for x2 is

3x1 ≤ 600 – 2x2

And for the fixed x1, the coordinates satisfy this inequality are smaller than the corresponding ordinate

on the line and thus the inequality is satisfied for all the points below the line 1.

Similarly, we have to determine the closed half planes for the inequalities 3x1 + 5x2 ≤ 800 and
5x1 + 6x2 ≤ 1100 (line 2 and line 3 in the graph). Since all the three constraints must be satisfied
simultaneously we have consider the intersection of these three closed half planes. The complete
intersection of these three closed half planes is shown in the above graph as ABCD. The region ABCD
is called the feasible region, which is shaded in the graph.
Feasible Solution:
Any non-negative value of x1, x2 that is x1 ≥ 0 and x2 ≥ 0 is known as feasible solution of the linear
programming problem if it satisfies all the existing constraints.
Feasible Region:
The collection of all the feasible solution is called as the feasible region.

Example 2.4:
In the previous example we discussed about the less than or equal to type of linear programming
problem, i.e. maximization problem. Now consider a minimization (i.e. greater than or equal to type)
linear programming problem formulated in Example 2.2.

Minimize
2000x1 + 1500x2

Subject to:
6x1 + 2x2 ≥ 8
2x1 + 4x2 ≥ 12
4x1 + 12x2 ≥ 24

x1 ≥ 0, x2 ≥ 0

The three lines 6x1 + 2x2 = 8, 2x1 + 4x2 = 12, and 4x1 + 12x2 = 24 passes through the point
(1.3,0) (0,4), (6,0) (0,3) and (6,0) (0,2). The feasible region for this problem is shown in the following
Graph 2. In this problem the constraints are of greater than or equal to type of feasible region, which is
bounded on one side only.

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X2 A
4
6x1 + 2x2 ≥ 8

2 2x1 + 4x2 ≥ 12

C 4x1 + 12x2 ≥ 24
0
X1
2 4 6 8

Graph 2: Feasible Region

2.5 Graphical Liner Programming Solution

A two variable linear programming problem can be easily solved graphically. The method is simple but
the principle of solution is depends on certain analytical concepts, they are:
Convex Region:
A region R is convex if and only if for any two points on the region R the line connecting those points
lies entirely in the region R.
Extreme Point:
The extreme point E of a convex region R is a point such that it is not possible to locate two distinct
points in R, so that the line joining them will include E. The extreme points are also called as corner
points or vertices.
Thus, the following result provides the solution to the linear programming model:
 “If the minimum or maximum value of a linear function defined over a convex region exists,
then it must be on one of the extreme points”.
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In this section we are going to describe linear programming graphical solution for both the
maximization and minimization problems, discussed in Example 2.3 and Example 2.4.

Example 2. 5:

Consider the maximization problem described in Example 2.3.

Maximize
30x1 + 40x2
Subject to:
3x1 + 2x2 ≤ 600
3x1 + 5x2 ≤ 800
5x1 + 6x2 ≤ 1100
M = 30x1 +40x2
x1 ≥ 0, x2 ≥ 0

The feasible region identified in the Example 2.3 is a convex polygon, which is illustrated in the
following Graph 3. The extreme point of this convex region are A, B, C, D and E.

300

200

X2 C

100

A D
E

0 50 100 150 X1
200 275
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Graph 3: Graphical Linear Programming Solution

In this problem the objective function is 30x1 + 40x2. Let be M is a parameter, the graph 30x1 +
40x2 = M is a group of parallel lines with slope – 30/40. Some of these lines intersects the feasible region
and contains many feasible solutions, whereas the other lines miss and contain no feasible solution. In
order to maximize the objective function, we find the line of this family that intersects the feasible
region and is farthest out from the origin. Note that the farthest is the line from the origin the greater will
be the value of M.
Observe that the line 30x1 + 40x2 = M passes through the point D, which is the intersection of the
lines 3x1 + 5x2 = 800 and 5x1 + 6x2 = 1100 and has the coordinates x1 = 170 and x2 = 40. Since D is the
only feasible solution on this line the solution is unique.
The value of M is 6700, which is the objective function maximum value. The optimum value
variables are x1 = 170 and X2 = 40.
The following Table 1 shows the calculation of maximum value of the objective function.

Extreme Point Coordinates Objective Function

X1 X2 30x1 + 40x2
A X1 = 0 X2 = 0 0
B X1 = 0 X2 = 160 6400
C X1 = 110 X2 = 70 6100
D X1 = 170 X2 = 40 6700
E X1 = 200 X2 = 0 6000

Table 1: Shows the objective function Maximum value calculation

Example 2.6:
Consider the minimization problem described in Example 2.4.

Minimize
2000x1 + 1500x2

Subject to:
6x1 + 2x2 ≥ 8
2x1 + 4x2 ≥ 12
4x1 + 12x2 ≥ 24
x1≥ 0, x2 ≥ 0

The feasible region for this problem is illustrated in the following Graph 4. Here each of the half
planes lies above its boundary. In this case the feasible region is infinite. In this case, we are concerned
with the minimization; also it is not possible to determine the maximum value. As in the previous

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example let us introduce a parameter M in the objective function i.e. 2000x1 + 1500x2 = M and draw the
lines for different values of M, which is shown in the following Table 2.

X2 A
4

C
0
2000x1+ 1500x2=M X1
2 4 6 8

Graph 4: Graphical Linear Programming Solution

Extreme Point Coordinates Objective Function

X1 X2 2000x1 + 1500x2
A X1 = 0 X2 = 4 6000
B X1 = 0.5 X2 = 2.75 5125
C X1 = 6 X2 = 0 12000

Table 2: Shows the objective function Minimum value computation

The minimum value is 5125 at the extreme point B, which is the value of the M (objective
function). The optimum values variables are X1 = 0.5 and X2 = 2.75.

2.6 Multiple Optimal Solutions

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When the objective function passed through only the extreme point located at the intersection of two
half planes, then the linear programming problem possess unique solutions. The previous examples i.e.
Example 2.5 and Example 2.6 are of this types (which possessed unique solutions).
When the objective function coincides with one of the half planes generated by the constraints in
the problem, will possess multiple optimal solutions. In this section we are going to discuss about the
multiple optimal solutions of linear programming problem with the help of the following Example 2.7.

Example 2.7:

A company purchasing scrap material has two types of scarp materials available. The first type has 30%
of material X, 20% of material Y and 50% of material Z by weight. The second type has 40% of
material X, 10% of material Y and 30% of material Z. The costs of the two scraps are Rs.120 and
Rs.160 per kg respectively. The company requires at least 240 kg of material X, 100 kg of material Y
and 290 kg of material Z. Find the optimum quantities of the two scraps to be purchased so that the
company requirements of the three materials are satisfied at a minimum cost.
Solution

First we have to formulate the linear programming model. Let us introduce the decision variables x1 and
x2 denoting the amount of scrap material to be purchased. Here the objective is to minimize the
purchasing cost. So, the objective function here is
Minimize
120x1 + 160x2

Subject to:
0.3x1 + 0.4x2 ≥ 240
0.2x1 + 0.1x2 ≥ 100
0.5x1 + 0.3x2 ≥ 290

x1 ≥ 0; x2 ≥ 0

Multiply by 10 both sides of the inequalities, then the problem becomes

Minimize
120x1 + 160x2
Subject to:
3x1 + 4x2 ≥ 2400
2x1 + x2 ≥ 1000
5x1 + 3x2 ≥ 2900

x1 ≥ 0; x2 ≥ 0

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Let us introduce parameter M in the objective function i.e. 120x1 + 160x2 = M. Then we have to

determine the different values for M, which is shown in the following Table 3.

Extreme Point Coordinates Objective Function

X1 X2 120x1 + 160x2
A X1 = 0 X2 = 1000 160000
B X1 = 150 X2 = 740 136400
C X1 = 400 X2 = 300 96000
D X1=800 X2=0 96000

Table 3: Shows the calculation of Minimum objective function value

Note that there are two minimum value for the objective function (M=96000). The feasible
region and the multiple solutions are indicated in the following Graph 5.

1100

A
1000

900

800

700

5x1 + 3x2 ≥ 2900

600

X2
500

400 2x1 + x2 ≥ 1000

300 C

200

3x1 + 4x2 ≥ 2400

100
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MBA-H2040 Quantitative Techniques for Managers

X1
Graph 5: Feasible Region, Multiple Optimal Solutions

The extreme points are A, B, C, and D. One of the objective functions 120x1 + 160x2 = M family
coincides with the line CD at the point C with value M=96000, and the optimum value variables are x1 =
400, and x2 = 300. And at the point D with value M=96000, and the optimum value variables are x1 =
800, and x2 = 0.
Thus, every point on the line CD minimizes objective function value and the problem contains
multiple optimal solutions.
2.7 Unbounded Solution
When the feasible region is unbounded, a maximization problem may don’t have optimal solution, since
the values of the decision variables may be increased arbitrarily. This is illustrated with the help of the
following problem.
Maximize
3x1 + x2

Subject to:
x1 + x2 ≥ 6
-x1 + x2 ≤ 6
-x1 + 2x2 ≥ -6
and
x1, x2 ≥ 0

Graph 6 shows the unbounded feasible region and demonstrates that the objective function can
be made arbitrarily large by increasing the values of x1 and x2 within the unbounded feasible region. In
this case, there is no point (x1, x2) is optimal because there are always other feasible points for which
objective function is larger. Note that it is not the unbounded feasible region alone that precludes an
optimal solution. The minimization of the function subject to the constraints shown in the Graph 6
would be solved at one the extreme point (A or B).
The unbounded solutions typically arise because some real constraints, which represent a
practical resource limitation, have been missed from the linear programming formulation. In such
situation the problem needs to be reformulated and re-solved.

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-x1 + x2 = 6

A
6
x1 + x2 = 6
5

4 -x1 + 2x2 = 6
X2
3

Graph 6: Unbounded Feasible Region

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1 2 3 4 5 6 B X1
2.8 Infeasible Solution

A linear programming problem is said to be infeasible if no feasible solution of the problem exists. This
section describes infeasible solution of the linear programming problem with the help of the following
Example 2.8.
Example 2.8:
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Minimize
200x1 + 300x2

Subject to:
0.4x1 + 0.6x2 ≥ 240
0.2x1 + 0.2x2 ≤ 80
0.4x1 + 0.3x2 ≥ 180
x1, x2 ≥ 0

On multiplying both sides of the inequalities by 10, we get

4x1 + 6x2 ≥ 2400

2x1 + 2x2 ≤ 800
4x1 + 3x2 ≥ 1800
700

A
600
4x1 + 3x2 = 1800

500

B
400
X2

300

200 F
2x1 + 2x2 = 800

100
4x1 + 6x2 = 2400

0
D
C E
100 200 300 400 500 600 X1

Graph 7: Infeasible Solution

The region right of the boundary AFE includes all the solutions which satisfy the first (4x1 + 6x2
≥ 2400) and the third (4x1 + 3x2 ≥ 1800) constraints. The region left of the BC contains all solutions
which satisfy the second constraint (2x1 + 2x2 ≤ 800).

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Hence, there is no solution satisfying all the three constraints (first, second, and third). Thus, the
linear problem is infeasible. This is illustrated in the above Graph 7.
2.9 Summary

In Operations Research linear programming is a versatile technique with wide applications in various
management problems. Linear Programming problem has a number of characteristics. That is first we
have to identify the decision variable. The problem must have a well defined objective function, which
are expressed in terms of the decision variables.
The objective function may have to be maximized when it indicates the profit or production or
contribution. If the objective function represents cost, in this case the objective function has to be
minimized.
The management problem is expressed in terms of the decision variables with the objective
function and constraints. A linear programming problem is solved graphically if it contains only two
variables.

2.10 Key Terms

Objective Function: is a linear function of the decision variables representing the objective of the
manager/decision maker.

Constraints: are the linear equations or inequalities arising out of practical limitations.

Decision Variables: are some physical quantities whose values indicate the solution.

Feasible Solution: is a solution which satisfies all the constraints (including the non-negative) presents
in the problem.

Feasible Region: is the collection of feasible solutions.

Multiple Solutions: are solutions each of which maximize or minimize the objective function.

Unbounded Solution: is a solution whose objective function is infinite.

Infeasible Solution: means no feasible solution.

2.11 Self Assessment Questions

Q1. A juice company has its products viz. canned apple and bottled juice with profit margin Rs.4 and
Rs.2 respectively pre unit. The following table shows the labour, equipment, and ingredients to produce
each product per unit.

Canned Apple Bottled Juice Total

Labour 2.0 3.0 12.0
Equipment 3.2 1.0 8.0
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Ingredients 2.4 2.0 9.0

Formulate the linear programming problem (model) specifying the product mix which will maximize the
profit without exceeding the levels of resources.

Q2. An organization is interested in the analysis of two products which can be produces from the idle
time of labour, machine and investment. It was notified on investigation that the labour requirement of
the first and the second products was 4 and 5 units respectively and the total available man hours was
48. Only first product required machine hour utilization of one hour per unit and at present only 10 spare
machine hours are available. Second product needs one unit of byproduct per unit and the daily
availability of the byproduct is 12 units. According to the marketing department the sales potential of
first product cannot exceed 7 units. In a competitive market, first product can be sold at a profit of Rs.6
and the second product at a profit of Rs.10 per unit.

Formulate the problem as a linear programming model. Also determine graphically the feasible
region. Identify the redundant constraints if any.

Q3. Find graphically the feasible region of the linear programming problem given in Q1.

Q4. A bed mart company is in the business of manufacturing beds and pillows. The company has 40
hours for assembly and 32 hours for finishing work per day. Manufacturing of a bed requires 4 hours for
assembly and 2 hours in finishing. Similarly a pillow requires 2 hours for assembly and 4 hours for
finishing. Profitability analysis indicates that every bed would contribute Rs.80, while a pillow
contribution is Rs.55 respectively. Find out the daily production of the company to maximize the
contribution (profit).

Q5. Maximize
1170x1 + 1110x2
Subject to:
9x1 + 5x2 ≥ 500
7x1 + 9x2 ≥ 300
5x1 + 3x2 ≤ 1500
7x1 + 9x2 ≤ 1900
2x1 + 4x2 ≤ 1000
x1, x2 ≥ 0
Find graphically the feasible region and the optimal solution.

Q6. Solve the following LP problem graphically

Minimize
2x1 +1.7x2
Subject to:
0.15x1 + 0.10x2 ≥ 1.0
0.75x1 + 1.70x2 ≥ 7.5
1.30x1 + 1.10x2 ≥ 10.0

x1, x2 ≥ 0

Q7. Solve the following LP problem graphically

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Maximize
2x1 + 3x2
Subject to:
x1 – x2 ≤ 1
x1 + x2 ≥ 3
x1, x2 ≥ 0

Q8. Graphically solve the following problem of LP

Maximize
3x1 + 2x2
Subject to:
2x1 – 3x2 ≥ 0
3x1 + 4x2 ≤ -12
x1, x2 ≥ 0

Q9. Solve the following problem graphically

Maximize
4x1 + 4x2
Subject to:
-2x1 + x2 ≤ 1
x1 ≤ 2
x1 + x2 ≤ 3
x1, x2 ≥ 0

2.12 Key Solutions

Q1.
Canned Apple x1
Bottled Juice x2

Maximize
4x1 + 2x2

Subject to:
2x1 + 3x2 ≤ 12
3.2x1 + x2 ≤ 8
2.4x1 + 2x2 ≤ 9
x1, x2 ≥ 0

Q2.
First Product x1
Second Product x2

Maximize
6x1 + 10x2
Subject to:
4x1 + 5x2 ≤ 48
x1 ≤ 10
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x2 ≤ 12
x1 ≤ 7

x1, x2 ≥ 0
The constraints x1 ≤ 10 is redundant.
Q4.
Beds = 8
Pillows = 4
Maximum Profits is: Rs.860

Q5.
Optimum variables values are: x1=271.4, x2=0
The maximum value is: 317573

Q6.
Optimum variables values are: x1=6.32, x2=1.63
The minimum values is: 15.4

Q7.
The solution is unbounded

Q8.
The problem has no feasible solution

Q9.
The problem has multiple solutions with the following optimum variable values:
x1=2, x2 =1 or x1=2/3, x2=7/3

The Maximum objective function value is: 12

2.13 Further References

Mittal, K.V. 1976. Optimization Methods in Operations Research and Systems Analysis, Wiley Eastern
Ltd, New Delhi.

Taha, H.A1999. Operations Research An Introduction, PHI Ltd., New Delhi.

Richard I.Levin, David S. Rubin, Joel P. Stinson, Everette S.Gardner, Jr.1992. Quantitative Approaches
to Management, McGraw Hill, NJ.

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