Objectives of a business frequently are to maximize Three steps in applying the linear

profit or minimize cost. programming technique

 The problem must be identified as
Restrictions being solvable by linear programming.
 The unstructured problem must be
formulated as a mathematical model.
 The model must be solved by using
established mathematical techniques.

Model Formulation
 Decision variables are mathematical
symbols that represent levels of activity
Linear programming is a model For example an electrical manufacturing firm
that consists of linear relationships desires to produce x1 radios, x2 toasters, and x3
representing a firm’s clocks, where , x1, x2 and x3 are symbols
representing unknown variable quantities of
decision(s),given an objective and each item.
resource constraints.
 The objective function is a linear This is generally referred to as a product mix
relationship that reflects the objective of an problem type. This scenario is illustrated in Figure
operation. 2.1.
 A model constraint is a linear relationship
that represents a restriction on decision
making
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 FIGURE 2.1
Beaver Creek
company are special pottery clay and skilled Pottery
labor. Given these limited resources, the Company
company desires to know how many bowls
and mugs to produce each day in order to
maximize profit.
The two products have the following resource The Objective Function
requirements for production and profit per item
produced;
Product Labor Clay Profit
(hr./unit) (lb./unit) (P/unit)
Bowl 1 4 40
Model Constraints
mug 2 3 50
The total labor used by the company is the sum
of the individual amounts of labor used for each
Step 1: Define the decision variables: How many
product:
bowls and mugs to produce
Step 2: Define the objective function: Maximize
profit
Step 3: Define the constraints: The resources (clay However, the amount of labor represented by 1x1
and labor) available + 2x2 is limited to 40 hours per day; thus, the
Decision Variables complete labor constraint is
 =
The constraint for clay is formulated in the
same way as the labor constraint.
Given that the amount of clay available for
production each day is 120 pounds, the material The solution of this model will result in
constraint can be formulated as numeric values for and that will maximize
total profit, Z. As one possible solution,
consider x1 = 5 bowls and x2 = 10 mugs.

nonnegativity constraints Labor

clay
The complete linear programming model for this
problem can now be summarized as follows:
Because neither of the constraints is violated by thisAn infeasible problem violates at least one of
the constraints.
hypothetical solution, we say the solution is feasible.
A feasible solution does not violate any of the The graphical method provides a picture of
constraints how a solution is obtained for a linear
Now consider a solution of bowls and programming problem
mugs. This solution results in a profit of:
Graphical Solution of a Maximization Model
The problem describes Beaver Creek Pottery
Company’s attempt to decide how many bowls
and mugs to produce daily, given limited
amounts of labor and clay. The complete linear
Although this is certainly a better solution in programming model was formulated as
terms of profit, it is infeasible because it violates
the resource constraint for labor:
FIGURE 2.2 FIGURE 2.4
Coordinates for The labor
graphical analysis constraint area

FIGURE 2.3
FIGURE 2.5
Graph of the labor
The constraint
Constraint line
Area for clay
FIGURE 2.6 FIGURE 2.7
Graph of both The feasible
Model constraints solution area
constraints
 The Optimal Solution Point
The 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.

FIGURE 2.8
Objective function
line for Z = $

FIGURE 2.9 Alternative objective function lines for

profits, Z, of $800, $1,200, and $1,600
The optimal solution point is the last point FIGURE 2.10
the objective function touches as it leaves Identification of
optimal solution point
the feasible solution area.

The Solution Values

The third step in the graphical solution

approach is to solve for the values of and FIGURE 2.11
Optimal solution
once the optimal solution point has been coordinates
found.
The solution point is always on this
boundary because the boundary contains
the points farthest from the origin (i.e., the
points corresponding to the greatest profit).
Extreme points are corner points on the boundary
Slack Variables
of the feasible solution area
There is a standard procedure for
transforming inequality constraints into
FIGURE 2.12
Solutions at all equations. This transformation is achieved
corner points by adding a new variable.

 A slack variable is added to a constraint

to convert it to an equation .
 A slack variable represents unused
resources
 Slack contributes nothing to the
objective function value.
 A Minimization Model Example
A minimization problem is formulated the
same basic way as a maximization problem,
except for a few minor differences.
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:

FIGURE 2.14 Solutions at points A, B, and C with slack

 Decision Variables
Mathematical symbols representing levels of
activity of a firm.
Example:
This problem contains two decision
variables, representing the number of bags of
each brand of fertilizer to purchase:

Objective function
A linear mathematical relationship describing
an objective of the firm, in terms of decision Decision Variables
variables- this function is to be maximized or x1= bags of supergro
minimized. x2= bags of Cropquick
Constraints Objective Function
Requirements or restrictions placed on the Minimize Z=6x1 + 3x2
firm by the operating environment, stated Where
in linear relationships of the decision $6x1= cost of bags of super gro
variables. $3x2=cost of bags of crop quick
 Constraints
 2x1 † 4x2 ≥ 16 lb. Next, the feasible solution area is chosen, to
Where reflect the inequalities in the constraints, as
2x1= the nitrogen contribution (lb) per bag of super- shown in Figure 2.17.
gro
4x2= the nitrogen contribution (lb.) per bag of crop- FIGURE 2.17
quick
Graphical Solution of a Minimization Model Feasible solution area
Step 1. Graph the equations of the two model
constraints, as shown in Figure 2.16

FIGURE 2.16
Constraint lines for
fertilizer mode

Step 2. locate the Optimal Point. 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 are closest
to the origin. Figure 2.18 shows the 3 Because point A is on the x2 axis,
corner points----A, B, and C----and the X1 = 0; thus,
objective function line. 4(0) + 3x2 = 24
x2 = 8
FIGURE 2.18
The optimal Surplus variable
solution point represents an excess above a constraint
FIGURE 2.19
requirement level. A surplus
Graphvariable
of the f is
ertilizerto
subtracted from a ≥ constraint example
convert it to an
equation= .
Figure 2.19 shows the graphical solutions
for our example, with surplus variables
included at each solution point.

Step 3. The final step is to solve for the

values of x1 and x2 at point A.
 Irregular Types of Linear Programming
• A linear program
is infeasible if there exists no solution that
satisfies all of the constraints -- in other
words, if no feasible solution can be
• Multiple Optimal Solution constructed.
An optimal solution is a feasible solution
where the objective function reaches its
maximum (or minimum) value.
• Unbounded problem
is one where the constraints do not
For example, the most profit or the least restrict the objective function and the
cost. A globally optimal solution is one optimal objective goes to infinity. Both
where there are no other feasible solutions situations arise due to errors or
with better objective function values. shortcomings in the formulation or in the
data defining the problem.
Characteristic of Linear Programing Problem Restriction exist, making unlimited
achievement of the objective function
impossible.
Identify the choice task and defining the
decision variables is usually the first
step in the formulation process because
it is quite difficult to construct the Properties of Linear Programing Models
objective function and constraints
without first identifying the decision A linear program model also has property , which
variables. have been exhibited consistently throughout the
examples. The term linear not only means that the
function in the models are graph as straight line, it
Maximizing profit and minimizing also means that the relationships exhibits
cost proportionally.
 A Linear Programing Model has the following general properties:

1. Proportionality- Means that the contribution of the individual variables the objective
function is proportional to their value.
2. Additivity- Means the total value of the objective function and each constraint is the
sum of the individual contribution from each variables.

3. Divisibility- Means the decision variables can take on any real numerical
values within a specified range.
4. Certainty- Means the parameter are known.