Modeling with Linear

Programming
and
Graphical Solution
 Steps in formulating Linear
Programming (LP) Models
1. Understand the problem.
2. Identify the decision variables
3. State the objective function as a
linear combination of the decision
variables.
4. State the constraints as linear
combinations of the decision
variables.
5. Identify any upper or lower bounds
on the decision variables.
LP Model Formulation: A Maximization
Example 1 – Product mix problem - Beaver
Creek Pottery Company (1 of 4)
Beaver Creek Pottery Company employs skilled
artisans to produce clay bowls and mugs. The
two 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.
LP Model Formulation
A Maximization Example 1 (2 of 4)
Resource Requirements

Labor Clay Profit

Product
(Hr./Unit) (Lb./Unit) ($/Unit)

Bowl 1 4 40
Mug 2 3 50

 Product mix problem - Beaver Creek Pottery Company

 How many bowls and mugs should be produced to maximize profits given
labor and materials constraints?
 Resource Availability: 40 hrs of labor per day (labor constraint)
120 lbs of clay (material constraint)
LP Model Formulation
A Maximization Example 1 (3 of 4)
Resource 40 hrs of labor per day
Availability: 120 lbs of clay
Decision x1 = number of bowls to produce per day
Variables: x2 = number of mugs to produce per day

Objective Maximize Z = $40x1 + $50x2

Function: Where Z = profit per day
Resource 1x1 + 2x2  40 hours of labor
Constraints: 4x1 + 3x2  120 pounds of clay

Non-Negativity x1  0; x2  0
Constraints:
LP Model Formulation
A Maximization Example 1 (4 of 4)

Complete Linear Programming Model:

Maximize Z = $40x1 + $50x2

subject to: 1x1 + 2x2  40

4x2 + 3x2  120
x1 , x2  0
Feasible Solutions

A feasible solution does not violate any of the constraints:

Example: x1 = 5 bowls
x2 = 10 mugs
Z = $40x1 + $50x2 = $700

Labor constraint check: 1(5) + 2(10) = 25 ≤ 40 hours

Clay constraint check: 4(5) + 3(10) = 70 ≤ 120
pounds
Infeasible Solutions

An infeasible solution violates at least one of the

constraints:

Example: x1 = 10 bowls
x2 = 20 mugs
Z = $40x1 + $50x2 = $1400

Labor constraint check: 1(10) + 2(20) = 50 > 40 hours

 Example 2 of LP Problem - Blue Ridge Hot Tubs
Blue Ridge Hot Tubs produces two types of
hot tubs: Aqua-Spas & Hydro-Luxes.

Aqua-Spa Hydro-Lux

Pumps 1 1
Labor 9 hours 6 hours
Tubing 12 feet 16 feet
Unit Profit $350 $300
There are 200 pumps, 1566 hours of labor, and
2880 feet of tubing available.
 Formulating LP Model: Blue Ridge Hot Tubs
1. Understand the problem
2. Identify the decision variables
X1=number of Aqua-Spas to produce
X2=number of Hydro-Luxes to produce
3. State the objective function as a linear combination of the decision variables.
MAX: 350X1 + 300X2
4. State the constraints as linear combinations of the decision variables
1X1 + 1X2 <= 200 } pumps
9X1 + 6X2 <= 1566 } labor
12X1 + 16X2 <= 2880 } tubing
5. Identify any upper or lower bounds on the decision variables.

X1 >= 0 , X2 >= 0
Summary of the LP Model for Blue
Ridge Hot Tubs
MAX Z = 350X1 + 300X2
S.T.
1X1 + 1X2 <= 200
9X1 + 6X2 <= 1566
12X1 + 16X2 <= 2880
X1 >= 0
X2 >= 0
 Example 3:Wershon Suit Company

Jackets Slacks Available

• Profit, $/unit 10 15
• Material,
Square yards 2 5 50
• Person Hours 4 2 36

How many jackets and slacks should be produced ?

 Example 3:Wershon Suit Company
• Type of Objective Function
Maximize Profit

• Variable Definition

J = number of jackets produced / week

S = number of slacks produced / week

Example 3:Wershon Suit Company

Max Z = $34 J + $40 S

Such that
2 J + 5 S  50 (Material)
4 J + 2 S  36 (sewing)
J , S 0 (Nonnegativity)
 Example 4: Product Mix Problem
TJ’s, Inc., makes 2 nut mixes for sale to grocery chains in the
states. The 2 mixes, referred to as the Regular Mix and the Deluxe
Mix, are made by mixing different percentages of 3 types of nuts.
In preparation for the fall season, TJ’s has just purchased 6000
pounds of almonds, 6000 pounds of pecans, and 7500 pounds of
walnuts. The Regular Mix consists of 30% almonds, 20% pecans,
and 50% walnuts. The Deluxe Mix consists of 35% of almonds,
30% pecans, and 35% walnuts. TJ’s accountant has analyzed the
cost of packaging materials, sales price per pound, and other
factors and has determined that the profit contribution per pound
is $1.65 for the Regular Mix and $2.00 for the Deluxe Mix. TJ’s is
committed to using the available nuts to maximize total profit
contribution over the fall season.
 Example 4: Product Mix Problem
Let R = amount of regular mix (pounds)
D = amount of deluxe mix (pounds)
Max z = 1.65R + 2.00D (Total profit)
s.t. 0.3R + 0.35D  6000 (Availability with
0.2R + 0.3D  6000 ingredient
0.5R + 0.35D  7500 specifications)

R, D  0 (Nonnegativity)
 Example 5: Transportation Problem

 A product is to be shipped in the amounts al, a2, ..., am from m

shipping origins and received in amounts bl, b2, ..., bn at each of n
shipping destinations.
 The cost of shipping a unit from the ith origin to the jth destination
is known for all combinations of origins and destinations.
 The problem is to determine the amount to be shipped from each
origin to each destination such that the total cost of transportation
is a minimum.
 Transportation Problem – Example 5
The Zephyr Television Company ships
televisions from three warehouses to three
retail stores on a monthly basis. Each
warehouse has a fixed supply per month, and
each store has a fixed demand per month.
The manufacturer wants to know the number
of television sets to ship from each warehouse
to each store in order to minimize the total
cost of transportation.
 Demand & Supply
Each warehouse has the following supply of televisions
available for shipment each month:
Warehouse Supply (sets)
1. Cincinnati 300
2. Atlanta 200
3. Pittsburgh 200
700
Each retail store has the following monthly demand for
television sets:
Store Demand (sets)
A. New York 150
B. Dallas 250
C. Detroit 200
600
 Cost Matrix
Costs of transporting television sets from the warehouses
to the retail stores vary as a result of differences in modes
of transportation and distances. The shipping cost per
television set for each route is as follows:

To Store
From
Warehouse A B C
1 $16 $18 $11
2 14 12 13
3 13 15 17
 Model Development
The model for this problem consists of nine decision variables, representing the
number of television sets transported from each of the three warehouses to each of
the three stores:
xij = number of television sets shipped from warehouse i to store j
where i = 1, 2, 3, and j = A, B, C

The objective function of the television manufacturer is to minimize the total

transportation costs for all shipments. Thus, the objective function is the sum of
the individual shipping costs from each warehouse to each store:
minimize Z = $16x1A + 18x1B + 11x1C + 14x2A + 12x2B + 13x2C +
13x3A + 15x3B + 17x3C

In a "balanced" transportation model, supply equals demand such that all

constraints are equalities; in an "unbalanced" transportation model, supply
does not equal demand, and one set of constraints is ≤.
 Constraints
Supply Constraints
x1A + x1B + x1C ≤ 300
x2A + x2B + x2C ≤ 200
x3A + x3B + x3C ≤ 200
Demand Constraints
x1A + x2A + x3A = 150
x1B + x2B + x3B = 250
x1C + x2C + x3C = 200
 Model Summary
minimize Z = $16x1A + 18x1B + 11x1C + 14x2A + 12x2B + 13x2C + 13x3A +
15x3B + 17x3C
subject to

The transportation model can also be optimally

solved by Linear Programming
 Example 6: Scheduling Problem
The personnel manager must schedule a security force in order to
satisfy staffing requirements shown below. Each worker has an
eight hour shift and there are six such shifts each day. The starting
and ending time for each of the 6 shifts is also given below. The
personnel manager wants to determine how many people need to
work each shift in order to minimize the total number of officers
employed while satisfying the staffing requirements.

Time # Officers Required Shift Shift Time

12am-4am 5 1 12am-8am
4am-8am 7 2 4am-noon
8am-noon 15 3 8am-4pm
noon-4pm 7 4 noon-8pm
4pm-8pm 12 5 4pm-12am
8pm-12am 9 6 8pm-4am
 Example 6: Scheduling Problem
Let xi = number of officers who work on shift i, i = 1, ..., 6

Min z = x1 + x2 + x3 + x4 + x5 + x6
(Total number of officers employed)

s.t. x6 + x1  5 (12am-4am)
x1 + x2  7 (4am-8am)
x2 + x3  15 (8am-noon)
x3 + x4  7 (noon-4pm)
x4 + x5  12 (4pm-8pm)
x5 + x6  9 (8pm-12am)
xi 0, i = 1, ..., 6 (Nonnegativity)
 Example 7: An Investment Example
Kathleen Allen, an individual investor, has $70,000 to divide among several
investments. The alternative investments are municipal bonds with an 8.5% annual
return, certificates of deposit with a 5% return, treasury bills with a 6.5% return, and a
growth stock fund with a 13% annual return. The investments are all evaluated after 1
year. Kathleen wants to know how much to invest in each alternative in order to
maximize the return.
The following guidelines have been established for diversifying the investments and
lessening the risk perceived by the investor:
1. No more than 20% of the total investment should be in municipal bonds.
2. The amount invested in certificates of deposit should not exceed the amount
invested in the other three alternatives.
3. At least 30% of the investment should be in treasury bills and certificates of
deposit.
4. To be safe, more should be invested in CDs and treasury bills than in
municipal bonds and the growth stock fund, by a ratio of at least 1.2 to 1.
Kathleen wants to invest the entire $70,000.
 An Investment Example - Model
Decision Variables: x1 = amount ($) invested in municipal bonds
x2 = amount ($) invested in certificates of deposit
x3 = amount ($) invested in treasury bills
x4 = amount ($) invested in growth stock fund
The Objective Function: Maximize Z = $0.085x1 + 0.05x2 + 0.065x3 + 0.130x4
Constraints: x1 ≤$14,000 Model Summary
x2 ≤x1 + x3 + x4
x2 + x3 ≥$21,000
[(x2 + x3)/(x1 + x4)] ≥1.2
x1 + x2 + x3 + x4 = $70,000
 Linear Programming (LP)
General Description
 Problem: to determine decision variables
 Objective: to maximize or minimize an objective
function
 Restrictions: represented by constraints
 Solution methods: graphical, simplex, computer
 General Form of a
Linear Programming (LP) Problem

MAX (or MIN): c1X1 + c2X2 + … + cnXn

Subject to a11X1 + a12X2 + … + a1nXn  b1
:
ak1X1 + ak2X2 + … + aknXn ≥ bk
:
am1X1 + am2X2 + … + amnXn = bm

X1 , X2 …… Xn ≥ 0
Note: If all the functions in the model are linear, the problem is a Linear
Programming (LP) problem
Graphical Solution of LP Models

 Graphical solution is limited to linear programming

models containing only two decision variables.

 Graphical methods provide visualization of how a

solution for a linear programming problem is
obtained.
Example 1 – Product mix problem - Beaver
Creek Pottery Company

Complete Linear Programming Model:

Maximize Z = $40x1 + $50x2

subject to: 1x1 + 2x2  40

4x2 + 3x2  120
x1 , x2  0
Coordinate Axes
Graphical Solution of Maximization Model (1 of
11)

X2 is mugs

Maximize Z = $40x1 + $50x2

subject to: 1x1 + 2x2  40
4x2 + 3x2  120
x1, x2  0

X1 is bowls
Figure: Coordinates for graphical analysis
Labor Constraint
Graphical Solution of Maximization Model (2 of
11)

Maximize Z = $40x1 + $50x2

subject to: 1x1 + 2x2  40
4x2 + 3x2  120
x1, x2  0

Figure: Graph of labor constraint

Labor Constraint Area
Graphical Solution of Maximization Model (3 of
11)

Maximize Z = $40x1 + $50x2

subject to: 1x1 + 2x2  40
4x2 + 3x2  120
x1, x2  0

Figure: Labor constraint area

Clay Constraint Area
Graphical Solution of Maximization Model (4 of
11)

Maximize Z = $40x1 + $50x2

subject to: 1x1 + 2x2  40
4x2 + 3x2  120
x1, x2  0

Figure: The constraint area for clay

Both Constraints
Graphical Solution of Maximization Model (5 of
11)

Maximize Z = $40x1 + $50x2

subject to: 1x1 + 2x2  40
4x2 + 3x2  120
x1, x2  0

Figure: Graph of both model constraints

Feasible Solution Area
Graphical Solution of Maximization Model (6 of
11)

Maximize Z = $40x1 + $50x2

subject to: 1x1 + 2x2  40
4x2 + 3x2  120
x1, x2  0

Figure: The feasible solution area

Objective Function Solution = $800
Graphical Solution of Maximization Model (7 of
11)

Maximize Z = $40x1 + $50x2

subject to: 1x1 + 2x2  40
4x2 + 3x2  120
x1, x2  0

Figure: Objective function line for Z = $800

Alternative Objective Function Solution Lines
Graphical Solution of Maximization Model (8 of 11)

Maximize Z = $40x1 + $50x2

subject to: 1x1 + 2x2  40
4x2 + 3x2  120
x1, x2  0

Figure: Alternative
objective function lines
for profits Z of $800,
$1,200, and $1,600
Optimal Solution
Graphical Solution of Maximization Model (9 of
11)

Maximize Z = $40x1 + $50x2

subject to: 1x1 + 2x2  40
4x2 + 3x2  120
x1, x2  0

Figure: Identification of optimal solution point

Optimal Solution Coordinates
Graphical Solution of Maximization Model (10 of 11)

Maximize Z = $40x1 + $50x2

subject to: 1x1 + 2x2  40
4x2 + 3x2  120
x1, x2  0

Figure: Optimal solution coordinates

Extreme (Corner) Point Solutions
Graphical Solution of Maximization Model (11 of 11)

Maximize Z = $40x1 + $50x2

subject to: 1x1 + 2x2  40
4x2 + 3x2  120
x1, x2  0
The optimal solution of
a maximization
problem is at the
extreme point farthest
to the origin.
Figure: Solutions at all corner points
Slack Variables

 Standard form requires that all constraints be in the form

of equations (equalities).
 A slack variable is added to a  constraint to convert it
to an equation (=).
 A slack variable typically represents an unused
resource.
 A slack variable contributes nothing to the objective
function value.
Linear Programming Model: Standard Form

Max Z = 40x1 + 50x2 + 0s1 + 0s2

subject to:1x1 + 2x2 + s1 = 40
4x2 + 3x2 + s2 = 120
x1, x2, s1, s2  0
Where:
x1 = number of bowls
x2 = number of mugs
s1, s2 are slack variables

Figure: Solutions at points A, B, and C with slack

LP Model Formulation – Minimization (1 of 6)

 Two brands of fertilizer available -

Super-gro, Crop-quick.
 Field requires at least 16 pounds of
nitrogen and 24 pounds of
phosphate.
 Super-gro costs $6 per bag, Crop-
quick $3 per bag.
 Problem: How much of each brand Chemical Contribution
to purchase to minimize total cost of
fertilizer given following data ? Nitrogen Phosphate
Brand
(lb/ bag) (lb/ bag)
Super-gro 2 4
Crop-quick 4 3
LP Model Formulation – Minimization (2 of 6)

Decision Variables:
x1 = bags of Super-gro
x2 = bags of Crop-quick

The Objective Function:

Minimize Z = $6x1 + 3x2
Where: $6x1 = cost of bags of Super-Gro
$3x2 = cost of bags of Crop-Quick

Model Constraints:
2x1 + 4x2  16 lb (nitrogen constraint)
4x1 + 3x2  24 lb (phosphate constraint)
x1, x2  0 (non-negativity constraint)
Constraint Graph – Minimization (3 of 6)

Minimize Z = $6x1 + $3x2

subject to: 2x1 + 4x2  16
4x2 + 3x2  24
x1, x2  0

Figure: Constraint lines for fertilizer model

Feasible Region– Minimization (4 of 6)

Minimize Z = $6x1 + $3x2

subject to: 2x1 + 4x2  16
4x2 + 3x2  24
x1, x2  0

Figure: Feasible solution area

Graphical Solutions – Minimization (5 of 6)

Minimize Z = $6x1 + $3x2 + 0s1 + 0s2

subject to: 2x1 + 4x2 – s1 = 16
4x2 + 3x2 – s2 = 24
x1, x2, s1, s2  0

The optimal solution of

a minimization problem
is at the extreme point
closest to the origin.

Figure: Graph of the fertilizer example

Surplus Variables – Minimization (6 of 6)

 A surplus variable is subtracted from a  constraint to

convert it to an equation (=).
 A surplus variable represents an excess above a
constraint requirement level.
 A surplus variable contributes nothing to the calculated
value of the objective function.
 Subtracting surplus variables in the farmer problem
constraints:
2x1 + 4x2 - s1 = 16 (nitrogen)
4x1 + 3x2 - s2 = 24 (phosphate)
Irregular Types of Linear Programming Problems

For some linear programming models, the general

rules do not apply.

Special types of problems include those with:

 Multiple optimal solutions
 Infeasible solutions
 Unbounded solutions
Multiple Optimal Solutions Beaver Creek
Pottery

The objective function is

parallel to a constraint line.
Maximize Z=$40x1 + 30x2
subject to: 1x1 + 2x2  40
4x1 + 3x2  120
x1, x2  0
Where:
x1 = number of bowls
x2 = number of mugs

Figure: Example with multiple optimal solutions

An Infeasible Problem

Every possible solution

violates at least one constraint:
Maximize Z = 5x1 + 3x2
subject to: 4x1 + 2x2  8
x1  4
x2  6
x1, x2  0

Figure: Graph of an infeasible problem

An Unbounded Problem

Value of the objective

function increases indefinitely:
Maximize Z = 4x1 + 2x2
subject to: x1  4
x2  2
x1, x2  0

Figure: Graph of an unbounded problem

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.
Properties of Linear Programming Models

 Proportionality - The rate of change (slope) of the objective

function and constraint equations is constant.
 Additivity - Terms in the objective function and constraint
equations must be additive.
 Divisibility - Decision variables can take on any fractional
value and are therefore continuous as opposed to integer in
nature.
 Certainty - Values of all the model parameters are assumed to
be known with certainty (non-probabilistic).