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Chapter 5 Linear Programming

The document discusses three linear programming techniques: linear programming, assignment modeling, and transportation modeling. Linear programming is used to optimize organizational performance by maximizing profit or minimizing costs under resource constraints. Assignment modeling involves allocating tasks to resources to minimize costs or maximize outputs. Transportation modeling optimizes transportation costs by first using Vogel's Approximation Method to obtain an initial balanced solution, then using the Modified Distribution Method to check for and obtain an optimal solution.

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Biraj Ghimire
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30 views

Chapter 5 Linear Programming

The document discusses three linear programming techniques: linear programming, assignment modeling, and transportation modeling. Linear programming is used to optimize organizational performance by maximizing profit or minimizing costs under resource constraints. Assignment modeling involves allocating tasks to resources to minimize costs or maximize outputs. Transportation modeling optimizes transportation costs by first using Vogel's Approximation Method to obtain an initial balanced solution, then using the Modified Distribution Method to check for and obtain an optimal solution.

Uploaded by

Biraj Ghimire
Copyright
© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Chapter 5 Linear

Programming
By:
C.M. Dhakal
1. Concept of Linear Programming
Linear programming is computational technique or
mathematical model for optimizing the organizational
performance.
It is helpful for production control by setting the
standard for product and by using organizational
resources in optimum way.
Optimization refers to both maximizing the
profitability or minimizing the cost.
It provides the guideline to operation manager how to
use organizational limited resources to get desired
goal.
Cont..
The basic things in LPP are as follows:
a. Objective function
1. Maximization(Z max.)
2. Minimization(Z min.)
b. Constraints
1. ≥ At least, more than or equal, requirement, unlimited by
2. ≤ At most, not exceeded by, limited by, up to, available
3. ₌ Equal, exactly, standard size
c. Non- negativity constraints
d. Variables
1. ≥ Surplus and dummy variables (s1, s2, s3….and D1, D2, D3…)
2. ≤ Slack variables (S1, S2, S2….)
3. ₌ Dummy variables (D1, D2, D3…)
Cont..
e. Effect of variables on objective function
1. Surplus variables – No effect

2. Slack variables – No effect


3. Dummy variables – (-M on maximization
and +M on minimization)
f. Prepare simplex table
Cont...
g. Solving problem by following the steps below
1. Enter from maximum negative value in case of maximization
and from maximum positive value in case of minimization
from below and calculate value of column ratio.
2. Enter from minimum positive value from left or column ratio
for both case.
3. Calculate value of new main row and each row
4. Repeat above steps up to get 0 or positive value in case of
maximization and 0 or negative value in case of
minimization.
5. Find the optimal result.
2. Assignment Model
 Assignment method is another important
method of allocating organizational resources
in optimum way.
 It involves assigning tasks or jobs to resources.
 The various objectives of assignment methods
are:
a. Match the appropriate person with appropriate
job.
b. Minimize the total cost/time/effort
c. Maximize the total profit/output/efficiency.
Cont..
The various steps involved in assignment
method are:
1. To convert maximization problem into minimization
2. To make balance problem to unbalance problem.
3. To make row operation – by subtracting smallest
value from all value in each row
4. To make column operation - by subtracting smallest
value from all value in each column
5. Checking optimization.
6. Making assignment
3. Transportation Model
The transportation model is another optimization
techniques of transportation cost.
The various steps of solving transportation problem are:
A. Steps for Initial allocation by Vogel’s Approximation Method (VAM).
a. To convert maximization problem into minimization problem.

b. To make unbalance problem in to balance by adding dummy row or column


 If total demand = Total supply – Balance problem

 If total demand is not equal to total supply – Unbalance problem.

a. To calculate penalty cost (row cost difference and column cost difference) by deducting
least cost from second least cost from each row and column.
b. To enter from highest penalty cost at minimum cost cell and assign minimum quantity
of demand and supply.
c. Repeat the above step up to assign all demand and supply.
Cont..
B. Steps for finding optimal solution by Modified
Distribution method (MODI)
a. To check the non-degeneracy
b. To calculate row (Ri) value and column value (Kj) by using
the relation of Cij = Ri + Kj.
c. To calculate net evaluation factor by using the relation of:
Δij = Cij – (Ri + Kj)
a. To check optimality
If all the values at net evaluation factor are positive or zero,
the solution is optimized otherwise make further process.

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