Introducing Linear Programming
though the Merton Truck Company
case
Decision Analysis
2016 17 Session
(selected slides for distribution)
In Search of a Better Solution
Contribution
from Model 101: $3000
Contribution from Model 102: $5000
Current solution:
If
If there
there is
is aa better
better solution,
solution, it
it is
is not
not here!
here!
In Search of a Better Solution
Contribution
from Model 101: $3000
Contribution from Model 102: $5000
Current solution:
If
If there
there is
is aa better
better solution,
solution, it
it is
is not
not here!
here!
In Search of a Better Solution
Contribution
from Model 101: $3000
Contribution from Model 102: $5000
Availabl
e
Current solution:
Resourc
e
Remaini
ng
Remaini
ng
Remaini
ng
Eng.
Assy.
4000
4000
3998
4000
Mtl.
Stmp.
6000
5000
1000
4998
1002
5002
998
101 Assy.
5000
102 Assy
4500
2000
3000
$10,500,000
$10,500,000
4500
0
2000
3000
$10,495,000
$10,495,000
4497
3
2004
2996
$10,501,000
$10,501,000
4497
3
In Search of a Better Solution
Contribution
from Model 101: $3000
Contribution from Model 102: $5000
Availabl
e
Current solution:
Resourc
e
Remaini
ng
Eng.
Assy.
4000
4000
Mtl.
Stmp.
6000
5000
1000
101 Assy.
5000
102 Assy
4500
2000
3000
$10,500,000
$10,500,000
4500
0
STEP
Remaini
ng
NO CHANGE
3998
2 HOURS
4000
USE 2 EXTRA
USE 4 EXTRA HOURS
4998
1002
5002
USE 3 LESS HOURS
2000
3000
INCREASE
$10,495,000
BY $1000
$10,495,000
4497
3
Remaini
ng
0
998
2004
2996
$10,501,000
$10,501,000
4497
3
In Search of a Better Solution
Contribution
from Model 101: $3000
Contribution from Model 102: $5000
Availabl
e
Current solution:
Resourc
e
Remaini
ng
Eng.
Assy.
4000
4000
Mtl.
Stmp.
6000
5000
1000
101 Assy.
5000
102 Assy
4500
2000
3000
$10,500,000
$10,500,000
4500
0
Remaini
ng
Remaini
ng
3998
2
500
steps
After
500
steps
4000
4998
6000
1002
2000
3000
$10,495,000
$10,495,000
4497
3
4000
1000
$11,000,000
$11,000,000
3000
1500
In Search of a Better Solution
Contribution
from Model 101: $3000
Contribution from Model 102: $5000
Current solution:
In Search of a Better Solution
Contribution
from Model 101: $3000
Contribution from Model 102: $5000
Availabl
e
Current solution:
Resourc
e
Remaini
ng
Remaini
ng
Remaini
ng
Eng.
Assy.
4000
4000
3998
3999
Mtl.
Stmp.
6000
6000
5998
6000
101 Assy.
5000
102 Assy
4500
4000
1000
$11,000,000
$11,000,000
3000
1500
4000
1000
$10,995,000
$10,995,000
2997
1503
4002
998
$10,998,000
$10,998,000
2997
1503
Building a Model
What is a solution to the problem?
(What are you allowed to change?)
Decision variables
How much change will be tolerated?
Constraints
How do you measure how good a
solution is?
Objective function
What is a best solution?
Objective
(Engine Assembly)
(Metal Stamping)
(Model 101 Assembly)
(Model 102 Assembly)
Finding optimal solutions: Graphical
Method
(linear function)
Di
re
ct
io
of
in
cr
ea
se
Finding optimal solutions: Graphical
Method
(linear function)
Subject to
Better solution
Set of feasible solutions
(obeys all constraints)
Di
r
cr . of
ea
se
Best
Best solution
solution must
must be
be at
at the
the
boundary
boundary
in
Finding optimal solutions: Graphical
Method
(linear function)
Subject to
Better solution
Set of feasible solutions
(obeys all constraints)
Di
r
cr . of
ea
se
Best
Best solution
solution must
must be
be at
at aa
corner
corner
in
Finding optimal solutions: Graphical
Method
Engine
Assembly
Metal
Stamping
Model 101
Assembly
Model 102
Assembly
Finding optimal solution: Graphical
method
M
M
M
Million
Tying up the two approaches
Current solution:
Tying up the two approaches
Current solution:
5
2
6
4
1
1
4
4
6
6
2
2
7
7
3
3
5
5
8
8
Tying up the two approaches
Metal
Stamping
Engine
Assembly
Model 102
Assembly
Pr
op
to or
1 0 t io
00 nal
Current solution:
Resourc
e
Available
Eng. Assy.
4000
4000
Mtl. Stmp.
6000
5000
1000
101 Assy.
5000
2000
3000
102 Assy
4500
4500
Remaini
ng
Tying up the two approaches
Remaining
Mtl. Stmp.
resource
Remaining
102 Assy.
resource
Current solution:
Resourc
e
Available
Remaini
ng
Eng. Assy.
4000
4000
Mtl. Stmp.
6000
5002
998
101 Assy.
5000
2004
2996
102 Assy
4500
4497
Tying up the two approaches
101 Assembly resource
runs out here
So
lut
io
thi n m
s w ove
s
ay
Metal stamping resource
runs out here
Resourc
e
Availabl
e
Remaini
ng
Remaini
ng
Eng.
Assy.
4000
4000
4000
Mtl.
Stmp.
6000
5000
1000
5002
998
101 Assy.
5000
2000
3000
2004
1996
102 Assy
4500
4500
4497
And now to Microsoft Excel
