EM6113-Engineering Management
Techniques
Week 13
Decision Tools – Introduction to linear
Programming
1
Overview of Linear Programming
Linear Programming is an optimisation
technique. It aims to minimise or maximise a
variable (cost, profit, productivity, …) under a
set of constraints (resources, land, time, …).
The value of the variable to optimise is
determine by the level of Decision Variables
in the problem.
Decision variables represent the actions
available to the decision maker within the
context of the problem.
2
Constraints in Linear Programming
Given that the value of the objective function is
driven by the decision variables, someone can
just increase the value of the decision variables
to increase the value of the objective function.
For example, if a company sells two products A
and B at unit prices PA and PB, the revenue of
this company is
TR=(A x PA)+(B x PB)
3
Effect of Constraints
So, if this company would like to increase its
revenues, it has to increase the sales of A and B
(assuming products prices PA and PB are
constant).
However, in reality they will always be a limit on
the production (or sales) level of products.
These limits are determined by the problem
constraints.
Therefore, the revenues can only be increased
to an amount allowed by the maximum
production (or sales) levels of products A and B 4
Characteristics of Linear Programming
The maximization or minimization of a variable
is the objective in all linear programming
problems.
All LP problems have constraints that limit the
degree to which the objective can be pursued.
A feasible solution satisfies all the problem's
constraints.
An optimal solution is a feasible solution that
results in the largest possible objective function
value when maximizing (or smallest when
minimizing).
Linear Programming (LP) Problem
If both the objective function and the
constraints are linear (with respect to the
decision variables), the problem is referred to
as a linear programming problem.
Linear functions are functions in which each
variable appears in a separate term raised to
the first power and is multiplied by a constant
(which could be 0).
Linear constraints are linear functions that are
restricted to be "less than or equal to", "equal
to", or "greater than or equal to" a constant.
Problem Formulation
Problem formulation or modeling is the
process of translating a verbal statement of
a problem into a mathematical statement.
Formulating models is an art that can only
be mastered with practice and experience.
Every LP problems has some unique
features, but most problems also have
common features.
General guidelines for LP model formulation
are illustrated on the slides that follow.
Guidelines for Model Formulation
Understand the problem thoroughly.
Describe the objective.
Describe each constraint.
Define the decision variables.
Write the objective in terms of the decision
variables.
Write the constraints in terms of the decision
variables.
Example
A company is launching an advertising campaign for
two new products A and B. This will be dome through
a one minute slot to be aired on Sunday in December.
The total number of available slots is 8 and the total
budget for the campaign is £19,000. The cost of each
slot is £2,000 and £3,000 for products A and B
respectively. The number of slots of product A cannot
exceed 6
The expected sales revenue from each slot of
products A and B is £5,000 and £7,000 respectively.
How many slots of products A and B should be aired
in order to maximize the sales revenues
Solution
Assume the following
x1: Number of slots of product A
x2: Number of slots of product B
Therefore
a/ x1+ x2≤8 so that we do not exceed the total
number of available slots
b/ x1≤6 so that slots of product A do not exceed
6
c/ 2x1+ 3x2≤19 so that the budget is not
exceeded
d/ Total sales revenue is Z=5x1+ 7x2
The linear program
The aim is to maximise the sales revenues.
Therefore the LP is as follows Objective
Max 5x1 + 7x2 Function
s.t. x1 < 6 “Regular”
Constraints
2x1 + 3x2 < 19
x1 + x2 < 8
Non-negativity
x1 > 0 and x2 > 0 Constraints
Example 1: Graphical Solution
First Constraint Graphed
x2
8
7 x1 = 6
6
Shaded region
5 contains all
4 feasible points
for this constraint
3
2 (6, 0)
1
x1
1 2 3 4 5 6 7 8 9 10
Example 1: Graphical Solution
Second Constraint Graphed
x2
8 (0, 6 1/3)
7
6
2x1 + 3x2 = 19
5
4
Shaded
3
region contains
2 all feasible points (9 1/2, 0)
1 for this constraint
x1
1 2 3 4 5 6 7 8 9 10
Example 1: Graphical Solution
Third Constraint Graphed
x2
(0, 8)
8
7
6 x1 + x2 = 8
5
4
Shaded
3
region contains
2 all feasible points
for this constraint (8, 0)
1
x1
1 2 3 4 5 6 7 8 9 10
Example 1: Graphical Solution
Combined-Constraint Graph Showing Feasible Region
x2
x1 + x2 = 8
8
7
x1 = 6
6
5
4
3
Feasible 2x1 + 3x2 = 19
2 Region
1
x1
1 2 3 4 5 6 7 8 9 10
Example 1: Graphical Solution
Objective Function Line
x2
8
7
(0, 5)
6 Objective Function
5x1 + 7x2 = 35
5
4
3
2
(7, 0)
1
x1
1 2 3 4 5 6 7 8 9 10
Example 1: Graphical Solution
Selected Objective Function Lines
x2
8
7
5x1 + 7x2 = 35
6
5 5x1 + 7x2 = 39
4
3 5x1 + 7x2 = 42
2
1
x1
1 2 3 4 5 6 7 8 9 10
Example 1: Graphical Solution
Optimal Solution
x2
Maximum
Objective Function Line
8 5x1 + 7x2 = 46
7
6 Optimal Solution
(x1 = 5, x2 = 3)
5
4
3
2
1
x1
1 2 3 4 5 6 7 8 9 10
Optimal Solution
The optimal solution is determined by the intersection
of the following constraints
x1 x2 8 (1)
2 x1 3x2 19 (2)
To determine the values of the decision variables x1
and x2, we need to solve the previous system of 2
equations
From (1) x1 8 x2
Substitute this in (2) 2(8 x2 ) 3 x 19
2
16 2 x2 3 x 2 19
Optimal Solution (Continued)
The equation becomes 16 x2 19
Therefore x2 19 16 3
x1 8 3 5
The optimal solution is x1 5; x2 3
The company should air 5 slots of product A and 3 slots
of product B. The maximum sales revenue is
z 5 x1 7 x 2 5(5) 7(3) 46
The company should make sales of £46,000
Summary of the Graphical Solution
Procedure
Prepare a graph of the feasible solutions for each of
the constraints.
Determine the feasible region that satisfies all the
constraints simultaneously.
Draw an objective function line.
Move parallel objective function lines toward larger or
smaller objective function values without entirely
leaving the feasible region.
Any feasible solution on the objective function line
with the largest or smallest value is an optimal
solution.
Extreme Points and the Optimal
Solution
The corners or vertices of the feasible region
are referred to as the extreme points.
An optimal solution to an LP problem can be
found at an extreme point of the feasible
region.
When looking for the optimal solution, you do
not have to evaluate all feasible solution
points.
You have to consider only the extreme points
of the feasible region.
Extreme Points for Solved Problem
x2
8
7 5 (0, 6 1/3)
6
5
4
Feasible 4 (5, 3)
3 Region
3 (6, 2)
2
1 1 (0, 0) 2 (6, 0)
x1
1 2 3 4 5 6 7 8 9 10
Questions?
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