Linear Programming

1
 ISE 303
OPERATIONS RESEARCH I

PLOs CLOs Chapter Assessment / Marks

Mid Q Assign HW CW Final Total

2.2 Formulate and solve problems using Linear 5 5 5 10 20

Formulate the problem objectives and integer programming Programming
constraints relative to production and
mechanical problems
2.3 Develop heuristic methods to solve Heuristics 5 5 5 10 20
Find the different solution alternatives for problems Methods
the production and design problems
2.4 Develop dynamic programming models Dynamic 5 5 5 10 20
Analyse the solution alternatives and choose the optimum for certain set of decision problems and Programming
one solve them
2.11 Develop solution procedure for nonlinear Non-Linear 5 5 5 10 20
Design the production systems, projects, product, programming models Programming
component, process or operation to meet desired needs
within realistic constraints such as economical,
environmental, social, political, ethical, health and safety
considerations.

2.13 Built nonlinear programming models for problems Non-Linear 5 5 5 10 20

Interpret Industrial Engineering problems in-depth and find Programming
innovative solutions based on a feasibility study of the
economic and applicability

3
Quality & Accreditation Terminologies

• Program Leaning Outcomes : PLOs

• Course Leaning Outcomes : CLOs
• Course Specification : CS
• Course Report : CR
• Teaching Strategy : TS
• Assessment Methods : AM
• Rubric Sheets : RS
• Aptitude Exam : APE
• Benchmark : BM

Correlation between all of them?!

4
Linear Programming

• Linear programming is a problem-solving approach developed to help

managers make decisions
• Numerous applications of linear programming can be found in today’s
competitive business environment
• Conceived in 1947 by George B. Dantzig
• IBM uses linear programming to perform capacity planning and to make
capacity investment decisions for its semiconductor manufacturing
operations
• GE Capital uses linear programming to help determine optimal lease
structuring

5
Steps in Applying Linear Programming Technique

1. Problem must be identified as being solvable by linear programming

2. The unstructured problem must be formulated as a mathematical model
3. The model must be solved by using established mathematical techniques

• LP technique derives its name from the fact that the functional
relationships in the mathematical model are linear, and the solution
technique consists of predetermined mathematical steps – that is, a
program

6
LP – Model Formulation

• A LP model consists of certain common components and characteristics

• The model components include decision variables, an objective function,
and model constraints, which consist of decision variables and
parameters

7
Decision Variables

• Decision variables are mathematical symbols that represent levels of

activity by the firm
• For example, an electrical manufacturing firm desires to produce x1
radios, x2 toasters, and x3 clocks, where x1, x2 and x3 are symbols
representing unknown variable quantities of each item
• The final values of x1, x2 and x3 as determined by the firm, constitute a
decision (e.g., the equation x1 = 100 radios is a decision by the firm to
produce 100 radios)

8
Objective Function

• Objective function is a linear mathematical relationship that describes the

objective of the firm in terms of the decision variables
• Objective function always consists of either maximizing or minimizing
some value (e.g., maximize the profit or minimize the cost of producing
radios)

9
Model Constraints

• Model constraints are also linear relationships of the decision variables;

they represent the restrictions placed on the firm by the operating
environment
• The restrictions can be in the form of limited resources or restrictive
guidelines
• For example, only 40 hours of labor may be available to produce radios
during production
• The actual numeric values in the objective function and the constraints,
such as the 40 hours of available labor, are parameters

10
A Maximization Model Example

Beaver Creek Pottery Company is a small

crafts operation run by a Native American
tribal council. The company employs skilled
artisans to produce clay bowls and mugs
with authentic Native American designs
and colors. The two primary resources
used by the company are special pottery
clay and skilled labor. Given these limited
resources, the company desires to know
how many bowls and mugs to produce
each day in order to maximize profit. This is
generally referred to as a product mix
problem type. This scenario is illustrated in
Figure

11
A Maximization Model Example

• The two products have the following resource requirements for production
and profit per item produced (i.e., the model parameters):

Resource Requirements

Product Labor (hr / unit) Clay (hr / unit) Profit ($/unit)

Bowl 1 4 40
Mug 2 3 50

• There are 40 hours of labor and 120 pounds of clay available each day for
production

12
Solution

• Decision Variables
– The decision confronting management in this problem is how many
bowls and mugs to produce
– The two decision variables represent the number of bowls and mugs
to be produced on a daily basis. The quantities to be produced can be
represented symbolically as:
x1 = number of bowls to produce
x2 = number of mugs to produce

13
Solution

• Objective Function
– The objective of the company is to maximize total profit
– The company’s profit is the sum of the individual profits gained from each bowl
and mug. Profit derived from bowls is determined by multiplying the unit profit of
each bowl, $40, by the number of bowls produced, x1. Likewise, profit derived
from mugs is derived from the unit profit of a mug, $50, multiplied by the
number of mugs produced, x2
– Thus, total profit, which we will define symbolically as Z, can be expressed
mathematically as $40x1 + $50x2. By placing the term maximize in front of the
profit function, we express the objective of the firm – to maximize total profit
Maximize Z = $40x1 + $50x2

14
Solution

• Model Constraints
– In this problem, two resources are used for production – labor and clay – both
of which are limited
– Production of bowls and mugs requires both labor and clay
– For each bowl produced, 1 hour of labor is required. Therefore, the labor used
for the production of bowls is 1x1 hours. Similarly, each mug requires 2 hours of
labor; thus, the labor used to produce mugs every day is 2 x2 hours. The total
labor used by the company is the sum of the individual amounts of labor used
for each product:
1x1 + 2x2
– However, the amount of labor represented by 1 x1 + 2x1 is limited to 40 hours per
day; thus, the complete labor constraint is
1x1 + 2x2 ≤ 40 hrs

15
Solution

• Model Constraints
– The “less than or equal to” (≤) inequality is employed instead of an equality (=)
because the 40 hours of labor is a maximum limitation that can be used, not an
amount that must be used
– This constraint allows the company some flexibility; the company is not
restricted to using exactly 40 hours but can use whatever amount is necessary
to maximize profit, up to and including 40 hours
– Each bowl requires 4 pounds of clay, the amount of clay used daily for the
production of bowls is 4x1 pounds; and because each mug requires 3 pounds of
clay, the amount of clay used daily for mugs is 3 x2. Given that the amount of
clay available for production each day is 120 pounds, the material constraint
can be formulated as:
4x1 + 3x2 ≤ 120

16
Solution

• Model Constraints
– A final restriction is that the number of bowls and mugs produced must be
either zero or a positive value because it is impossible to produce negative
items. These restrictions are referred to as non-negativity constraints and are
expressed mathematically as
x1 ≥ 0, x2 ≥ 0
• Complete Formulation
Maximize Z = $40x1 + $50x2
Subject to:
1x1 + 2x2 ≤ 40 hrs of labour
4x1 + 3x2 ≤ 120 lb of clay
x1 ≥ 0, x2 ≥ 0

17
Solution Types

• A feasible solution does not violate any of the constraints: x1 = 5, x2 = 10

 Z = $700
• Optimal: in addition to feasible, it gives the best answer or solution
• An infeasible problem violates at least one of the constraints: x1 = 10, x2 =
20  Z = $1,400 violates the resource constraint for labor

18
Another Example

Giapetto’s Woodcarving, Inc., manufactures two types of wooden toys: soldiers and trains. A
soldier sells for $27 and uses $10 worth of raw materials. Each soldier that is manufactured
increases Giapetto’s variable labor and overhead costs by $14. A train sells for $21 and uses
$9 worth of raw materials. Each train built increases Giapetto’s variable labor and overhead
costs by $10. The manufacture of wooden soldiers and trains requires two types of skilled
labor: carpentry and finishing. A soldier requires 2 hours of finishing labor and 1 hour of
carpentry labor. A train requires 1 hour of finishing and 1 hour of carpentry labor. Each week,
Giapetto can obtain all the needed raw material but only 100 finishing hours and 80 carpentry
hours. Demand for trains is unlimited, but at most 40 soldiers are bought each week. Giapetto
wants to maximize weekly profit (revenues - costs).
Formulate a mathematical model of Giapetto’s situation that can be used to maximize
Giapetto’s weekly profit.

19
Solution

• Decision Variables
X1: number of soldiers produced each week
X2: number of trains produced each week

• Objective Function
– We note that fixed costs (such as rent and insurance) do not depend on the
values of X1 and X2. Thus, Giapetto can concentrate on maximizing (weekly
revenues) − (raw material purchase costs) − (other variable costs)
– Giapetto’s weekly revenues and costs can be expressed in terms of the
decision variables X1 and X2

20
Solution

• Objective
  Function
Weekly revenues = weekly revenues from soldiers + weekly revenues from trains
=
= 27X1 + 21X2
Weekly raw material costs: 10X1 + 9X2
Other weekly variable costs: 14X1 + 10X2

Company wants to maximize:

(27X1 + 21X2) – (10X1 + 9X2) – (14X1 + 10X2) = 3X1 + 2X2
Maximize Z = 3X1 + 2X2

21
Solution

• Constraints
Constraint 1: Each week, no more than 100 hours of finishing time may
be used
Constraint 2: Each week, no more than 80 hours of carpentry time may
be used
Constraint 3: Because of limited demand, at most 40 soldiers should be
produced each week

The amount of raw material available is assumed to be unlimited, so no

restrictions have been placed on this
Next step is to express constraints in terms of X1 and X2

22
Solution

• Constraints
 
Constraint 1: Each week, no more than 100 hours of finishing time may
be used
Total finishing hrs =
= 2(X1) + 1(X2) = 2X1 + X2

Constraint 1 will therefore be

2X1 + X2 ≤ 100

23
Solution

• Constraints
 
Constraint 2: Each week, no more than 80 hours of carpentry time may
be used
Total carpentry hrs =
= 1(X1) + 1(X2) = X1 + X2

Constraint 1 will therefore be

X1 + X2 ≤ 80

Constraint 3: Because of limited demand, at most 40 soldiers should be

produced each week
X1 ≤ 40
24
Solution

• Final Model Formulation

Maximize Z = 3X1 + 2X2
Subject to:
2X1 + X2 ≤ 100 (finishing constraint)
X1 + X2 ≤ 80 (carpentry constraint)
X1 ≤ 40 (constraint on demand for soldiers)
X1 ≥ 0, X2 ≥ 0

25
Assumptions of Linear Programming

• Proportionality and Additive Assumptions

1. The contribution of the objective function from each decision variable is
proportional to the value of the decision variable. For example, the
contribution to the objective function from making four soldiers (4  3 = $12)
is exactly four times the contribution to the objective function from making
one soldier ($3)
2. The contribution to the objective function for any variable is independent of
the values of the other decision variables. For example, no matter what the
value of X2, the manufacture of X1 soldiers will always contribute 31 dollars
to the objective function

26
Assumptions of Linear Programming

• Proportionality and Additive Assumptions

1. The contribution of each variable to the left-hand side of each constraint is
proportional to the value of the variable. For example, it takes exactly three
times as many finishing hours (2  3 = 6 finishing hours) to manufacture
three soldiers as it takes to manufacture one soldier (2 finishing hours)
2. The contribution of a variable to the left-hand side of each constraint is
independent of the values of the variable. For example, no matter what the
value of X1, the manufacture of X2 trains uses X2 finishing hours and X2
carpentry hours.

27
Assumptions of Linear Programming

• Divisibility Assumption
The divisibility assumption requires that each decision variable be permitted to
assume any fractional values…

• The Certainty Assumption

The certainty assumption is that each parameter (objective function coefficients,
right-hand side, and technological coefficients) are known with certainty

28
Graphical Solutions of Linear Programming Models

• Next stage in the application of linear programming to a decision-making

problem is to find the solution of the model
• A common solution approach is to solve algebraically the set of
mathematical relationships that form the model either manually or using a
computer program, thus determining the values for the decision variables
• However, because the relationships are linear, some models and
solutions can be illustrated graphically
• Graphical method is realistically limited to models with only two decision
variables, which can be represented on a graph of two dimensions.
• Models with three decision variables can be graphed in three dimensions,
but the process is quite cumbersome, and models of four or more
decision variables cannot be graphed at all
29
Graphical Solution Steps

The steps for solving a graphical linear programming model are summarized here:
1. Plot the model constraints as equations on the graph; then, considering the inequalities
of the constraints, indicate the feasible solution area
2. Plot the objective function; then, move this line out from the origin to locate the optimal
solution point
3. Solve simultaneous equations at the solution point to find the optimal solution values
Or
2. Solve simultaneous equations at each corner point to find the solution values at each
point
3. Substitute these values into the objective function to find the set of values that results in
the maximum Z value

30
Example

Maximize Z = $40x1 + $50x2

Subject to:
x1 + 2x2 ≤ 40 hrs of labour
4x1 + 3x2 ≤ 120 lb of clay
x1 ≥ 0, x2 ≥ 0

31
Graphical Solution

45

40
x1 + 2x2 ≤ 40
35 x1 = 0; x2 = 20
30 x2 = 0; x1 = 40
25

20

15

10

0
0.5 1 1.5 2 2.5 3 3.5 4 4.5 5 5.5

32
Graphical Solution

45

40
4x1 + 3x2 ≤ 120
35 x1 = 0; x2 = 40
30 x2 = 0; x1 = 30
25

20

15

10

0
0.5 1 1.5 2 2.5 3 3.5 4 4.5 5 5.5

33
Graphical Solution

45

40
4x1 + 3x2 ≤ 120
35

30

25

20

15

10
x1 + 2x2 ≤ 40
5

0
0.5 1 1.5 2 2.5 3 3.5 4 4.5 5 5.5

34
Graphical Solution

45

40
4x1 + 3x2 ≤ 120
35

30

S T
25

20

15

10
R x1 + 2x2 ≤ 40
5

0
0.5 1 1.5 2 2.5 3 3.5 4 4.5 5 5.5

35
Optimal Solution Point

• Second step in the graphical solution method is to locate the point in the
feasible solution area that will result in the greatest total profit
• To begin the solution analysis, we first plot the objective function line for
an arbitrarily selected level of profit
• For example, if we say profit, Z, is $800, the objective function is:
$800 = $40x1 + $50x2

36
Graphical Solution

45

40 $800 = $40x1 + $50x2

35
x1 = 0; x2 = 16
x2 = 0; x1 = 20
30

25

20
x1 + 2x2 ≤ 40
15

10

5
4x1 + 3x2 ≤ 120
0
0 1 2 3 4 5 6 7 8 9

37
Graphical Solution

45

40 $1200 = $40x1 + $50x2

35
x1 = 0; x2 = 24
x2 = 0; x1 = 30
30

25

20
x1 + 2x2 ≤ 40
15

10

5
4x1 + 3x2 ≤ 120
0
0 2 4 6 8 10 12

38
Graphical Solution

45

40 $1200 = $40x1 + $50x2

35
x1 = 0; x2 = 24
x2 = 0; x1 = 30
30

25
$1600 = $40x1 + $50x2
20 x1 = 0; x2 = 32
x1 + 2x2 ≤ 40
15 x2 = 0; x1 = 40
10

5
4x1 + 3x2 ≤ 120
0
0 2 4 6 8 10 12 14 16

39
Graphical Solution – Optimal Point

45
Optimal Point
40
x1 = 24
35
x2 = 8
30
Z = $1360
25

20
x1 + 2x2 ≤ 40
15

10

5
4x1 + 3x2 ≤ 120
0
0 2 4 6 8 10 12 14 16 18

40
Optimal Point

• Unless an absolutely accurate graph is drawn, it is frequently difficult to

determine the correct solution directly from the graph
• A more exact approach is to determine the solution values mathematically
once the optimal point on the graph has been determined

41
Determining Optimal Point Mathematically

First, we convert both equations to functions of x1

x1 + 2x2 = 40
x1 = 40 – 2x2
and
4x1 + 3x2 = 120
x1 = 30 – (3x2 / 4)
Now, we let x1 in the first equation equal x1 in the second equation,
40 – 2x2 = 30 – (3x2 / 4)  x2 = 8
Substituting x2 = 8 into either one of the original equations gives a value for x1
x1 = 40 – 2x2 = 40 – 2(8) = 40 – 16 = 24
Substituting value of x1 and x2 in Z:
Z = $40x1 + $50x2 = 40(24) + 50(8) = $1,360
42
A Minimization Model Example

A farmer is preparing to plant a crop in the spring

and needs to fertilize a field. There are two brands
of fertilizer to choose from, Super-gro and Crop-
quick. Each brand yields a specific amount of
nitrogen and phosphate per bag, as follows:

Chemical Contribution
Brand
Nitrogen (lb/bag) Phosphate (lb/bag)
Super-go 2 4
Crop-Quick 4 3

The farmer’s field requires at least 16 pounds of

nitrogen and at least 24 pounds of phosphate.
Super-gro costs $6 per bag, and Crop-quick costs
$3. The farmer wants to know how many bags of
each brand to purchase in order to minimize the
total cost of fertilizing. This scenario is illustrated in
Figure
43
Solution

• Decision Variables
– Problem contains two decision variables, representing the number of
bags of each brand of fertilizer to purchase:
x1 = bags of Super-gro
x2 = bags of Crop-quick

44
Solution

• Objective Function
– The farmer’s objective is to minimize the total cost of fertilizing
– The total cost is the sum of the individual costs of each type of fertilizer
purchased
– The objective function that represents total cost is expressed as
Maximize Z = $6x1 + $3x2
where
$6x1 = cost of bags of Super-gro
$3x2 = cost of bags of Crop-quick

45
Solution

• Model Constraints
– The requirements for nitrogen and phosphate represent the constraints of
the model
– Each bag of fertilizer contributes a number of pounds of nitrogen and
phosphate to the field
– The constraint for nitrogen is
2x1 + 4x2 ≥ 16 1b
– The constraint for phosphate is constructed like the constraint for nitrogen
4x1 + 3x2 ≥ 24 1b
– There are also non-negativity constraints in this problem to indicate that
negative bags of fertilizer cannot be purchased:
x1 ≥ 0, x2 ≥ 0
46
Solution

• Complete Formulation
minimize Z = $6x1 + $3x2
Subject to:
2x1 + 4x2 ≥ 16 lb of nitrogen
4x1 + 3x2 ≥ 24 lb of phosphate
x1 ≥ 0, x2 ≥ 0

47
Graphical Solution

8
2x1 + 4x2 ≥ 16
7 x1 = 0; x2 = 4
6 x2 = 0; x1 = 8
5

0
0.5 1 1.5 2 2.5 3 3.5 4 4.5 5 5.5

48
Graphical Solution

8
4x1 + 3x2 ≥ 24
7 x1 = 0; x2 = 8
6 x2 = 0; x1 = 6
5

0
0.5 1 1.5 2 2.5 3 3.5 4 4.5 5 5.5

49
Graphical Solution

8
4x1 + 3x2 ≥ 24
7

2
2x1 + 4x2 ≥ 16
1

0
0.5 1 1.5 2 2.5 3 3.5 4 4.5 5 5.5

50
Optimal Point

• After the feasible solution area has been determined, the second step in
the graphical solution approach is to locate the optimal point
• In a maximization problem, the optimal solution is on the boundary of the
feasible solution area that contains the point(s) farthest from the origin
• Optimal solution point in a minimization problem is also on the boundary
of the feasible solution area; however, the boundary contains the point(s)
closest to the origin (zero being the lowest cost possible)
• As in a maximization problem, the optimal solution is located at one of the
extreme points of the boundary
• In this case, the corner points represent extremities in the boundary of the
feasible solution area that are closest to the origin

51
Graphical Solution

8 24 = $6x1 + $3x2
4x1 + 3x2 ≥ 24
7 x1 = 0
6 x2 = 8
5

2
2x1 + 4x2 ≥ 16
1

0
0 1 2 3 4 5 6 7 8 9

52
Graphical Solution

8
4x1 + 3x2 ≥ 24 x1 = 4.4
7 x2 = 1.8
6
Z = 30
5

2
2x1 + 4x2 ≥ 16
1

0
0 1 2 3 4 5 6 7 8 9

53
Graphical Solution

8
4x1 + 3x2 ≥ 24 x1 = 8
7 x2 = 0
6
Z = 48
5

2
2x1 + 4x2 ≥ 16
1

0
0 1 2 3 4 5 6 7 8 9

54
Irregular Types of Linear Programming Problems

• basic forms of typical maximization and minimization problems have been

shown previously
• There are several special types of atypical linear programming problems
• Although these special cases do not occur frequently, they will be
described so that you can recognize them when they arise
• These special types include problems with:
1. more than one optimal solution
2. infeasible problems, and
3. problems with unbounded solutions

55
Multiple Optimal Solutions

• Consider the Beaver Creek Pottery Company example, with the objective
function changed from:
Z = $40x1 + $50x2 to Z = $40x1 + $30x2

Maximize Z = $40x1 + $50x2

Subject to:
x1 + 2x2 ≤ 40 hrs of labour
4x1 + 3x2 ≤ 120 lb of clay
x1 ≥ 0, x2 ≥ 0

56
Multiple Optimal Solutions

• Slight change in the objective function makes

it now parallel to the constraint line, 4x1 + 3x2
≤ 120
• Both lines now have the same slope of -4/3.
Therefore, as the objective function edge
moves outward from the origin, it touches the
whole line segment BC rather than a single
extreme corner point before it leaves the
feasible solution area. This means that every
point along this line segment is optimal (i.e.,
each point results in the same profit of Z =
1200)
• Endpoints of this line segment, B and C, are
typically referred to as the alternate optimal
solutions. It is understood that these points
represent the endpoints of a range of optimal
solutions
57
Multiple Optimal Solutions

• Company, therefore, has several options

in deciding on the number of bowls and
mugs to produce
• Multiple optimal solutions can benefit the
decision maker because the number of
decision options is enlarged
• The multiple optimal solutions (along the
line segment) allow the decision maker
greater flexibility. For example, in the
case of Beaver Creek Pottery Company,
it may be easier to sell bowls than mugs;
thus, the solution at point C, where only
bowls are produced, would be more
desirable than the solution at point B,
where a mix of bowls and mugs is
produced
58
An Infeasible Problem

• In some cases, a linear programming problem has no feasible solution

area; thus, there is no solution to the problem
• An example of an infeasible problem is formulated next and depicted
graphically in next slide

59
An Infeasible Problem

• Point A in Figure satisfies only the

constraint 4X1 + 2X2 ≤ 8, whereas point C
satisfies only the constraints X1 ≥ 4 and
X2 ≥ 6
• Point B satisfies none of the constraints
• The three constraints do not overlap to
form a feasible solution area
• Because no point satisfies all three
constraints simultaneously, there is no
solution to the problem
• Infeasible problems do not typically occur,
but when they do, they are usually a result
of errors in defining the problem or in
formulating the linear programming model
60
An Unbounded Problem

• In some problems, the feasible solution area formed by the model

constraints is not closed
• In these cases it is possible for the objective function to increase
indefinitely without ever reaching a maximum value because it never
reaches the boundary of the feasible solution area

61
An Unbounded Problem

• The objective function is shown to

increase without bound; thus, a
solution is never reached.
• Unlimited profits are not possible
in the real world; an unbounded
solution, like an infeasible
solution, typically reflects an error
in defining the problem or in
formulating the model

62
Characteristics of Linear Programming Problems

• A decision amongst alternative courses of action is required.

• The decision is represented in the model by decision variables.
• The problem encompasses a goal, expressed as an objective function,
that the decision maker wants to achieve.
• Restrictions (represented by constraints) exist that limit the extent of
achievement of the objective.
• The objective and constraints must be definable by linear mathematical
functional relationships

63
Problem 1

Moore’s Meatpacking Company produces a hot dog mixture in 1,000-pound batches.

The mixture contains two ingredients - chicken and beef. The cost per pound of each
of these ingredients is as follows:

Each batch has the following recipe requirements:

a) a. At least 500 pounds of chicken
b) b. At least 200 pounds of beef
The ratio of chicken to beef must be at least 2 to 1. The company wants to know the
optimal mixture of ingredients that will minimize cost. Formulate a linear programming
model for this problem.
64
Problem 1 – Solution

Step 1:
Identify decision variables.
x1 = lb of chicken in mixture
x2 = lb of beef in mixture
Step 2:
Formulate the objective function.
Minimize Z = $3x1 + $5x2
where Z = cost per 1,000-lb batch
$3x1 = cost of chicken
$5x2 = cost of beef
65
Problem 1 – Solution

Step 3:
Establish Model Constraints
x1 + x2 = 1,000 lb
x1  500 lb of chicken
x2  200 lb of beef
x1/x2  2/1 or x1 - 2x2  0
x1, x2  0
The Model:
Minimize Z = $3x1 + 5x2
subject to: x1 + x2 = 1,000 lb
x1  50
x2  200
x1 - 2x2  0 and x1,x2  0 66
Problem 2

Solve the following model graphically:

Maximize Z = 4x1 + 5x2
subject to:
x1 + 2x2  10
6x1 + 6x2  36
x1  4
x1, x2  0

67
Problem 2 – Solution

Step 1: Plot the constraints as equations

Maximize Z = 4x1 + 5x2

subject to: x1 + 2x2  10
6x1 + 6x2  36
x1  4
x1, x2  0

68
Problem 2 – Solution

Step 2: Determine the feasible solution space

Maximize Z = 4x1 + 5x2

subject to: x1 + 2x2  10
6x1 + 6x2  36
x1  4
x1, x2  0

69
Problem 2 – Solution

Step 3 & 4: Determine the solution points and optimal solution

Maximize Z = 4x1 + 5x2

subject to: x1 + 2x2  10
6x1 + 6x2  36
x1  4
x1, x2  0

70
FORMULATION OF LP:
EXAMPLES
Diet Problem Formulation

A prison is trying to decide what to feed its prisoners. They would like to offer
some combination of milk, beans, and oranges. Their goal is to minimize cost,
subject to meeting the minimum nutritional requirements imposed by law. The
cost and nutritional content of each food, along with the minimum nutritional
requirements are shown below.

72
Diet Problem Formulation

73
Scheduling / Man Power Planning Formulation

Union contract requires all employees to work 8 consecutive hours

Goal: Hire the minimum number of officers needed to cover all shifts

74
Scheduling / Man Power Planning Formulation

75
Bank Loan Model

BankOne is in the process of devising a loan policy that involves a maximum of $12
million. The following table provides the pertinent data about available types of loans

Bad debts are unrecoverable and produce no interest revenue.

Competition with other financial institutions requires that the bank allocate at least
40% of the funds to farm and commercial loans. To assist the housing industry in the
region, home loans must equal at least 50% of the personal, car, and home loans.
TIle bank also has a stated policy of not allowing the overall ratio of bad debts on all
loans to exceed 4%.
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Bank Loan Model

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Bank Loan

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Bank Loan

The problem has five constraints:

1. Total funds should not exceed $12 (million):

2. Farm and commercial loans equal at least 40% of all loans:

3. Home loans should equal at least 50% of personal, car, and home loans:

4. Bad debts should not exceed 4% of all loans:

5. Non-negativity:

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Blending Problem formulation

An oil company makes two blends of fuel by mixing three oils. Figures on the costs
and daily availability of the oils are given in Table below:

Also, the requirements of the blends of fuel are given in Table below:

Each liter of blend 1 can be sold for $1.10 and each liter of blend 2 can be sold for
$1.20. Long-term contracts require at least 10,000 liters of each blend to be
produced. Formulate this blending problem as a linear programming problem
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Blending Problem formulation

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Blending Problem formulation

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Blending Problem formulation

83
Media Selection Problem Formulation

A company has budget up to $8000 per week for local advertisement. The money is
to be allocated among four promotional media: TV spots, newspaper ads, and two
types of radio advertisements. The company goal is to reach the largest possible
high-potential audience through the various media.
The following table presents the number of potential customers reached by making
use of advertisement in each of the four media. It also provides the cost per
advertisement placed and the maximum number of ads than can be purchased per
week.

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Media Selection Problem Formulation

The company arrangements require that at least 5 radio spots be placed each week.
To ensure a board-scoped promotional campaign, management also insists that no
more than $1800 be spent on radio advertising every week.

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Media Selection Problem Formulation

Decision Variables
X1 = number of 1-miute TV spots taken Each week
X2 = number of full-page daily newspaper ads taken each week
X3 = number of 30-second prime-time radio spots taken each week.
X4 = number of 1-minute afternoon radio spots taken each week

Objective Function
The company goal is to reach the largest possible high-potential audience through the
various media
Maximize Z = 5000 X1 + 8500 X2 + 2400 X3 + 2800 X4

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Media Selection Problem Formulation

Constraints
X1 ≤ 12 (maximum TV spots/week)
X2 ≤ 5 (maximum newspaper ads/week)
X3 ≤ 25 (maximum 30-second radio spots/week)
X4 ≤ 20 (maximum 1-minute radio spots/week)
800 X1 + 925 X2 + 290 X3 + 380 X4 ≤ 8000 (weekly budget)
X3 + X4 ≥ 5 (minimum radio spots contracted)
290 X3 + 380 X4 ≤ 1800 (maximum dollars spent on radio)
X1, X2, X3, X4 ≥ 0

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Trim Loss / Cutting Stock Problem Formulation

The Pacific Paper Company produces paper rolls with a standard width of 20 feet
each. Special customer orders with different widths arc produced by slitting the
standard rolls. Typical orders (which may vary daily) are summarized in the following
table:

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Trim Loss / Cutting Stock Problem Formulation

However, there may be more settings by which the rolls can be cut.
The feasible cut setting of the rolls. Note that there must not be any setting That
produces the waste equal to or greater than 5 feet width. As the Minimum size of the
roll requirement is 5 feet.

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Trim Loss / Cutting Stock Problem Formulation

Decision Variables
x1= number of rolls to cut as per setting 1
x2= number of rolls to cut as per setting 2
x3= number of rolls to cut as per setting 3
x4= number of rolls to cut as per setting 4
x5= number of rolls to cut as per setting 5
x6= number of rolls to cut as per setting 6

Objective Function
Minimize the total waste
z = 4x1+ 3x2 + 1x3 + 0x4 + 1x5 + 2x6

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Trim Loss / Cutting Stock Problem Formulation

Constraints
0x1+ 2x2 + 2x3 + 4x4 + 1x5 + 0x6 ≥ 150 (Number of rolls of size 5 feet)
1x1+ 1x2 + 0x3 + 0x4 + 2x5 + 0x6 ≥ 200 (Number of rolls of size 7 feet)
1x1+ 0x2 + 1x3 + 0x4 + 0x5 + 2x6 ≥ 300 (Number of rolls of size 9 feet)
x1, x2, x3, x4, x5, x6 ≥ 0

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