Optimization Techniques
Profile
Connect with me
K.A. Oladapo PhD
https://sites.google.com/view/kayodeabiodunoladapo
Course Objectives
Upon completion of this course, students should be able to:
1. Formulate and solve linear and non-linear optimization problems.
2. Analyze and solve transportation and assignment problems.
3. Apply network analysis tools to real-world projects.
4. Understand the principles of game theory and apply them in strategic
decision-making.
5. Model and analyze queuing systems.
6. Schedule and manage projects effectively.
7. Design and implement effective inventory control systems.
Definition of Optimization
Importance of Optimization
Types of Optimization Problems
Outline Applications of Optimization
Linear Programming
What is Linear Programming?
Linear Programming (LP) is a mathematical technique used for
optimizing a linear objective function, subject to a set of linear equality
and/or inequality constraints. The goal is to find the best values for the
decision variables that maximize or minimize the objective function.
Key Elements of an LP Problem:
•Decision Variables: The unknowns we want to solve for.
•Objective Function: A linear function representing what we want to
optimize (maximize profit or minimize cost).
•Constraints: Linear equations or inequalities that define the limits
within which the solution must lie.
•Feasibility Region: The set of all possible solutions that satisfy the
constraints.
Assumptions of Linear Programming
1.Linearity: Relationships among variables must be linear.
2.Additivity: The total effect is the sum of individual effects.
3.Divisibility: Decision variables can take fractional values (unless it's
an integer programming problem).
4.Certainty: All coefficients in functions and constraints are known
with certainty.
5.Non-negativity: Decision variables cannot be negative.
Formulation of a Linear Programming Model
Steps:
1.Identify the decision variables.
2.Formulate the objective function.
3.Write the constraints based on the problem context.
4.Add non-negativity restrictions.
Example
A company produces two products (x and y). Each unit of x requires 2
hours of labor and 1 unit of material. Each unit of y requires 1 hour of
labor and 2 units of material. The company has 100 labor hours and 80
units of material available. The profit is N40 per unit of x and N50 per
unit of y. How should the company produce to maximize profit?
Solution:
Identify the decision variables Constraints
Let x = units of product x Labour: 2x + y < 100
Let y = units of product y Material: x + 2y < 80
Objective Function: x, y > 0
Maximize Z = 40x + 50y
Graphical Method (for Two-Variable Problems)
Used when the LP problem has only two decision variables.
Steps:
1.Plot each constraint on a graph.
2.Identify the feasible region.
3.Find corner points (vertices) of the feasible region.
4.Evaluate the objective function at each corner point.
5.Choose the point that gives the best (maximum or minimum)
value.
Linear Programming:
https://www.youtube.com/watch?v=Bzzqx1F23a8
Graphical Method:
https://www.youtube.com/watch?v=qQFAvPF2OSI
Simplex Method (for Larger Problems)
The Simplex method is an iterative algebraic approach used to find
the optimal solution for LP problems with more than two variables.
Steps:
1.Convert inequalities into equalities using slack, surplus, and
artificial variables.
2.Construct the initial simplex tableau.
3.Identify the pivot element.
4.Perform row operations to update the tableau.
5.Repeat until there are no more positive indicators in the objective
row (for maximization).
Simplex Method:
https://www.youtube.com/watch?v=M8POtpPtQZc
Duality in Linear Programming
Every linear programming problem (Primal) has an associated
Dual Problem.
Key Points:
•If the primal is a maximization, the dual is a minimization.
•The number of constraints in the primal equals the number of
variables in the dual.
•Solving the dual gives insights into the shadow prices (marginal
worth of resources).
Duality helps in understanding resource valuation.
Duality in Linear Programming
https://www.youtube.com/watch?v=H0sBZdjuego
Sensitivity Analysis
Also known as post-optimality analysis, this examines how
changes in the coefficients of the objective function or right-hand
side values of constraints affect the optimal solution.
Aim:
•Understand stability of the solution.
•Determine how much a coefficient can change before the optimal
solution changes.
Linear Programming Sensitivity Analysis
https://www.youtube.com/watch?v=5Pgxo_7bNa8
Application of Linear Programming
Linear programming is widely used in various fields:
Field Application
Operations Production scheduling, workforce allocation
Finance Investment portfolio selection
Transportation Cost-effective shipping routes
Agriculture Crop planning and land allocation
Manufacturing Resource utilization and cost minimization
Marketing Media planning and advertising mix
