Linear Programming

Business Analytics
 Linear Programming
• It is a vital tool in management science.
• Linear
• Implies direct proportionality of relationship variables
• Programming
• Means making schedules or plans of activities to undertake in the future
 Linear Programming
• It is planning by the use of linear relationship of variables involved.
• It makes certain mathematical techniques to get the best possible solution
to a problem involving limited resources.
 Properties of Linear Programming
1. The objective of the decision-maker must be either to maximize or
minimize.
2. The actions of the decision-maker must be constrained and the decision
variables must not violate the limitations or constraints.
3. All variables have a value greater than or equal to 0.
4. The relationship of variables could be expressed in terms of equations or
inequalities.
 Two Ways to Solving Linear
Programming
1. Graphical
2. Simplex
The Graphical Method
 Optimum Solution
• It is a solution that makes the objective function as large as possible in the
case of maximization process, and as small as possible in the case of
minimization process.
 Feasible Solution
• The set of all points in the graph satisfying the constraint.
 Two main parts of a linear program
• Objective function
• Constraints or limitations
 Objective Function
• It is an algebraic expression introduced by the word
“maximize” or “minimize”.
 Constraints
• These are introduced by “subject to”
• These are algebraic sentences in the constraints are expressed in equations
or inequalities.
 Two parts of constraints
• Explicit
• Implicit
 Explicit constraints
• These are conditions of the problem which are to be expressed
in mathematical sentences.
 Implicit constraints
• Those that are implied.
• Condition that the variable representing time or raw material must always
be positive.
Steps to follow in using Graphical Method
1. Represent the unknown in the problem
2. Tabulate the data about the unknown (if necessary)
3. Formulate the objective function and constraints
4. Graph the constraints, and always solve for the coordinates at the point of intersection
of lines
5. Substitute the coordinates at the vertices of the feasible region in the objective function
6. Formulate your decision by selecting the highest value of the objective if it is
maximization and the lowest value if it is minimization
 Example
The Margan Furniture makes to two products: tables and chairs, which must
be processed through assembly and finishing departments. Assembly
department is available for 60 hours in every production period, while
finishing department is available for 48 hours of work. Manufacturing one
table requires 4 hours in the assembly and 2 hours in the finishing. Each
chair requires 2 hours in the assembly and 4 hours in the finishing. One table
contributes Php180.00 to profit, while a chair contributes Php100.00. The
problem is to determine the number of tables and chairs to make per
production in order to maximize the profit.
 Solution
Time in Assembly Time in Finishing Profit
Let x = number of tables 4x 2x 180x
y = number of chairs 2x 4y 100y
60 48
 Formulating the objective function and constraints

Maximize: 180x + 100y (Objective)

4x + 2y ≤ 60
Explicit Constraints
2x + 4y ≤ 40
x ≥ 0 Implicit
y ≥ 0 Constraints
Graph the Constraints
 Finding the Optimum Solution
Taking the coordinates at the vertices and substituting them in the objective function:

Vertices Objective: 180x + 100y

(0,12) 180(0) + 100(12) = 0+1,200 = 1, 200
(15,0) 180(15) + 100(0) = 2,700+0 = 2, 700
(12,6) 180(12) + 100(6) = 2,160+600 = 2, 760
Since (12,6) produces the maximum amount of the objective
function, therefore the decision must be:

x = 12 number of tables
y=6 number of chairs

Maximum Profit: Php2,760.00

To check whether the solution set is correct, substitute the values of the
solution variables in the constraints and find out if the constraints are
satisfied.

First constraint:
4x + 2y ≤ 60 This means that the assembly department which is
4(12) + 2(6) ≤ 60 available for 60 hours must be used for 60 hours.

48 + 12 ≤ 60
60 ≤ 60
 Second Constraint:

2x + 4y ≤ 48
2(12) + 4(6) ≤ 48 This means that the finishing department which
is available for 48hours, must be used for 48
24 + 24 ≤ 48 hours.
 Example 2
A small generator burns two types of fuel: low sulfur and high sulfur to
produce electricity. For one hour, each gallon of low sulfur emits 3 units of
sulfur dioxide, generates 4 kilowatts electricity and costs Php160.00. Each
gallon of high sulfur emits 5 units of sulfur dioxide, generates 4 kilowatts
and costs Php150.00. The environmental protection agency insists that the
maximum amount of sulfur dioxide that can be emitted per hour is 15 units.
Suppose that at least 16 kilowatts must be generated per hour, how many
gallons of high sulfur and low sulfur must be utilized per hour in order to
minimize the cost of fuel?
 Solution

units of sulfur number of Cost

dioxide kilowatts
Let x = no. of gallons of low sulfur 3x 4x 160x
y = no. of gallons of high sulfur 5y 4y 150y
≤15 ≥16
Minimize: 160x + 150y
Subject to: 3x + 5y ≤ 15
4x + 4y ≥ 16
x≥0
y≥0

Note that the word “maximum” in the problem implies that the quantity cannot be
greater than the specified numeral, thus ≤ is used, while the phrase “at least”
implies that the quantity must not be less than the specified numerals, hence ≥ is
used.
Graph the Constraints
3x + 5y = 15(0,3) (5,0)
4x +4y = 16 (0,4) (4,0)

The coordinates (2.5,1.5) are obtained

by the elimination method in the system

3x + 5y = 15
4x + 4y = 16
 Finding the Optimum Solution
Substitute the coordinates at the vertices in the objective function.
Vertices Objective: 160x + 150y
(4, 0) 160(4) + 150(0) = 640 + 0 = 640
(5, 0) 160(5) + 150(0) = 800 + 0 = 800
(2.5, 1.5) 160(2.5) + 150(105) = 400 + 225 = 625
Since 625 is the smallest value, therefore the decision should be:

x = 2.5 no. of gallons of low sulfur

y = 1.5 no. of gallons of high sulfur

Minimum cost: Php 625.00

 Exercises
1. A steel producer makes two types of steel: regular and special steel. A ton
of regular steel requires 2 hours in the open-hearth furnace and 3 hours in
the soaking pit; a ton of special steel requires 2 hours in the open-hearth
furnace and 5 hours in the soaking pit. The open-hearth furnace is available
8 hours per day and the soaking pit is available 15 hours per day. The profit
on a ton of regular steel is Php 4,000.00 and it is Php 6,000.00 on a ton of
special steel. Determine how many tons of each type of steel should be made
to maximize the profit, considering that demand on regular steel is at least 1
ton.
 Exercises
2. An animal food producer mixes two types of animal food: x and y. Each
unit of x costs Php 100.00 and contains 40 grams of fat, 20grams of protein
and 1,600 calories. Each unit of y costs Php 80.00 and contains 60 grams of
fat, 60grams of protein and 1,200 calories. Suppose the producer wants each
unit of the final product to yield at least 360 grams of fat, at least 240 grams
of protein and at least 9,600 calories, how many of each type of grain should
the producer use to minimize his cost?
End of the Presentation