6s-1 Linear Programming

Operations Management

William J. Stevenson

8th edition
 6s-2 Linear Programming

CHAPTER
6s

Linear
Programming

Operations Management, Eighth Edition, by William J. Stevenson

McGraw-Hill/Irwin Copyright © 2005 by The McGraw-Hill Companies, Inc. All rights reserved.
6s-3 Linear Programming

Linear Programming

 Used to obtain optimal solutions to problems

that involve restrictions or limitations, such
as:
 Materials
 Budgets

 Labor

 Machine time
6s-4 Linear Programming

Linear Programming

 Linear programming (LP) techniques

consist of a sequence of steps that will lead
to an optimal solution to problems, in cases
where an optimum exists
6s-5 Linear Programming

Linear Programming Model

 Objective: the goal of an LP model is maximization or

minimization
 Decision variables: amounts of either inputs or
outputs
 Feasible solution space: the set of all feasible
combinations of decision variables as defined by the
constraints
 Constraints: limitations that restrict the available
alternatives
 Parameters: numerical values
6s-6 Linear Programming

Linear Programming Assumptions

 Linearity: the impact of decision variables is

linear in constraints and objective function
 Divisibility: noninteger values of decision
variables are acceptable
 Certainty: values of parameters are known and
constant
 Nonnegativity: negative values of decision
variables are unacceptable
6s-7 Linear Programming

Graphical Linear Programming

1. Set up objective function and constraints

in mathematical format
2. Plot the constraints
3. Identify the feasible solution space
4. Plot the objective function
5. Determine the optimum solution
6s-8 Linear Programming

Linear Programming Example

 Objective - profit
Maximize Z=60X1 + 50X2
 Subject to
Assembly 4X1 + 10X2 <= 100 hours
Inspection 2X1 + 1X2 <= 22 hours
Storage 3X1 + 3X2 <= 39 cubic feet
X1, X2 >= 0
6s-9 Linear Programming

Linear Programming Example

Assembly Constraint
4X1 +10X2 = 100

12
10
Product X2

8
6
4
2
0
0 2 4 6 8 10 12 14 16 18 20 22 24
Product X1
6s-10 Linear Programming

Linear Programming Example

Add Inspection Constraint

2X1 + 1X2 = 22

25
20
Product X2

15
10
5
0
0

10

12

14

16

18

20

22

24
Product X1
6s-11 Linear Programming

Linear Programming Example

Add Storage Constraint

3X1 + 3X2 = 39

25
Inspection
20
Product X2

Storage
15 Assembly
10
5
0
0

10

12

14

16

18

20

22

24
Feasible solution space Product X1
6s-12 Linear Programming

Linear Programming Example

Add Profit Lines

25

20
Z=900
Product X2

15

10
5

0
0

10

12

14

16

18

20

22

24
Product X1
Z=300 Z=600
6s-13 Linear Programming

Solution

 The intersection of inspection and storage

 Solve two equations in two unknowns
2X1 + 1X2 = 22
3X1 + 3X2 = 39

X1 = 9
X2 = 4
Z = $740
6s-14 Linear Programming

Constraints

 Redundant constraint: a constraint that does

not form a unique boundary of the feasible
solution space
 Binding constraint: a constraint that forms the
optimal corner point of the feasible solution
space
6s-15 Linear Programming

Slack and Surplus

 Surplus: when the optimal values of decision

variables are substituted into a greater than or
equal to constraint and the resulting value
exceeds the right side value
 Slack: when the optimal values of decision
variables are substituted into a less than or equal
to constraint and the resulting value is less than
the right side value
6s-16 Linear Programming

Simplex Method

 Simplex: a linear-programming algorithm

that can solve problems having more than
two decision variables
6s-17 Linear Programming
MS Excel Worksheet for
Microcomputer Problem
Figure 6S.15
6s-18 Linear Programming

MS Excel Worksheet Solution

Figure 6S.17
6s-19 Linear Programming

Sensitivity Analysis

 Range of optimality: the range of values for

which the solution quantities of the decision
variables remains the same
 Range of feasibility: the range of values for
the fight-hand side of a constraint over which
the shadow price remains the same
 Shadow prices: negative values indicating
how much a one-unit decrease in the original
amount of a constraint would decrease the
final value of the objective function