Linear Programming Key Concepts and Formulations
1. Key Concepts in Linear Programming (LP)
a. Decision Variables
Decision variables are the unknowns that we are solving for in an LP problem. They represent
choices available to the decision-maker, typically denoted by x1, x2, ..., xn. These variables can be
amounts of resources to allocate, quantities of products to produce, etc.
b. Objective Function
The objective function is a mathematical expression that defines the goal of the LP problem, which
can be either maximization or minimization. It is a linear function of the decision variables, typically
written as:
Maximize or Minimize Z = c1x1 + c2x2 + ... + cnxn
where Z is the objective function, ci are the coefficients representing the contribution of each
decision variable xi to the objective.
c. Constraints
Constraints are the restrictions or limitations on the decision variables. They are linear inequalities or
equations that the solution must satisfy, typically written as:
a11x1 + a12x2 + ... + a1nxn <=, >=, = b1
a21x1 + a22x2 + ... + a2nxn <=, >=, = b2
...
am1x1 + am2x2 + ... + amnxn <=, >=, = bm
where aij are the coefficients of the constraints and bi are the right-hand side constants.
2. Mathematical Formulation of LP Problems
A standard LP problem can be formulated as follows:
Objective Function:
Maximize or Minimize Z = c1x1 + c2x2 + ... + cnxn
Subject to Constraints:
a11x1 + a12x2 + ... + a1nxn <=, >=, = b1
a21x1 + a22x2 + ... + a2nxn <=, >=, = b2
...
am1x1 + am2x2 + ... + amnxn <=, >=, = bm
Non-negativity Constraints:
xi >= 0 for all i
3. Components of LPP and Significance of Non-Negativity Restriction
Components of LPP
1. Decision Variables: Variables that decisions are being made about.
2. Objective Function: The function to be maximized or minimized.
3. Constraints: Restrictions or limits on the decision variables.
4. Parameters: Coefficients in the objective function and constraints that are constants.
5. Non-negativity Restrictions: Conditions that all decision variables must be greater than or equal to
zero.
Significance of Non-Negativity Restriction
The non-negativity restriction ensures that the decision variables make practical sense in real-world
scenarios, where negative quantities often have no meaning (e.g., negative production quantities,
negative resource allocation).
4. Limitations of LPP
1. Linearity Assumption: LP assumes that both the objective function and the constraints are linear,
which may not always be the case in real-world problems.
2. Certainty Assumption: LP requires that all coefficients in the objective function and constraints are
known with certainty, which is not always realistic.
3. Divisibility: LP assumes that decision variables can take any values, including fractions, which
may not be applicable for indivisible items.
4. Single Objective: LP typically optimizes a single objective function, whereas real-world problems
may require balancing multiple objectives.
5. Proportionality: It assumes that the contribution of each decision variable is directly proportional to
its value, which may not hold true in all situations.
5. Assumptions and Advantages of LPP
Assumptions of LPP
1. Linearity: Relationships between variables are linear.
2. Certainty: All coefficients in the functions are known with certainty.
3. Non-negativity: Decision variables cannot take negative values.
4. Additivity: The total effect is the sum of individual effects.
5. Divisibility: Decision variables can take any non-negative real values.
Advantages of LPP
1. Optimal Solutions: Provides the most efficient solution to the problem, maximizing or minimizing
the objective function.
2. Flexibility: Can be applied to a wide range of problems in various industries.
3. Simplicity: The mathematical formulation and solution methods are well-established and
straightforward.
4. Resource Allocation: Helps in the efficient allocation of limited resources.
5. Sensitivity Analysis: Facilitates understanding of how changes in parameters affect the optimal
solution.
6. Decision Making: Assists managers in making informed and objective decisions.
