Operations

Management
Linear Programming
Module B

PowerPoint presentation to accompany Operations © 2001 by Prentice Hall, Inc., Upper Saddle River, N.J.
Management, 6E (Heizer & Render) B-1 07458
 What is Linear Programming?

¨ Mathematical technique
¨ Not computer programming
¨ Allocates scarce resources to achieve an
objective
¨ Pioneered by George Dantzig in World War II
¨ Developed workable solution in 1947
¨ Called Simplex Method

PowerPoint presentation to accompany Operations © 2001 by Prentice Hall, Inc., Upper Saddle River, N.J.
Management, 6E (Heizer & Render) B-2 07458
 Examples of Successful LP
Applications
¨ Scheduling school busses to minimize total
distance traveled when carrying students
¨ Allocating police patrol units to high crime
areas in order to minimize response time to
911 calls
¨ Scheduling tellers at banks to that needs are
met during each hour of the day while
minimizing the total cost of labor

PowerPoint presentation to accompany Operations © 2001 by Prentice Hall, Inc., Upper Saddle River, N.J.
Management, 6E (Heizer & Render) B-3 07458
 Examples of Successful LP
Applications - continued
¨ Picking blends of raw materials in feed mills
to produce finished feed combinations at
minimum costs
¨ Selecting the product mix in a factory to
make best use of machine- and labor-hours
available while maximizing the firm’s profit
¨ Allocating space for a tenant mix in a new
shopping mall so as to maximize revenues
to the leasing company

PowerPoint presentation to accompany Operations © 2001 by Prentice Hall, Inc., Upper Saddle River, N.J.
Management, 6E (Heizer & Render) B-4 07458
 Requirements of a Linear
Programming Problem
1 Must seek to maximize or minimize some
quantity (the objective function)
2 Presence of restrictions or constraints -
limits ability to achieve objective
3 Must be alternative courses of action from
which to choose
4 Objectives and constraints must be
expressible as linear equations or
inequalities
PowerPoint presentation to accompany Operations © 2001 by Prentice Hall, Inc., Upper Saddle River, N.J.
Management, 6E (Heizer & Render) B-5 07458
 Formulating Linear Programming
Problems
¨ Assume:
¨ You wish to produce two products (1) Walkman
AM/FM/Cassette and (2) Watch-TV
¨ Walkman takes 4 hours of electronic work and 2
hours assembly
¨ Watch-TV takes 3 hours electronic work and 1 hour
assembly
¨ There are 240 hours of electronic work time and
100 hours of assembly time available
¨ Profit on a Walkman is $7; profit on a Watch-TV $5
PowerPoint presentation to accompany Operations © 2001 by Prentice Hall, Inc., Upper Saddle River, N.J.
Management, 6E (Heizer & Render) B-6 07458
 Shader Electronic Company Problem

Hours Required to
Produce 1 Unit
Department X1 X2 Available Hours
Walkmans Watch-TV’s This Week
Electronic 4 3 240
Assembly 2 1 100
Profit/unit $7 $5
Constraints: 4x1 + 3x2  240 (Hours of Electronic Time)
2x1 + 1x2  100 (Hours of Assembly Time)
Objective: Maximize: 7x1 + 5x2

PowerPoint presentation to accompany Operations © 2001 by Prentice Hall, Inc., Upper Saddle River, N.J.
Management, 6E (Heizer & Render) B-7 07458
 Formulating Linear Programming
Problems - continued
¨ Let:
¨ X1 = number of Walkmans
¨ X2 = number of Watch-TVs
¨ Then:
¨ 4X1 + 3X2  240 electronics
constraint
¨ 2 X1 + 1X2  100 assembly constraint
¨ 7X1 + 5X2 = profit maximize profit
PowerPoint presentation to accompany Operations © 2001 by Prentice Hall, Inc., Upper Saddle River, N.J.
Management, 6E (Heizer & Render) B-8 07458
 Simplex Steps for Maximization
1 Choose the variable with the greatest positive
Cj- Zj to enter the solution
2 Determine the row to be replaced by selecting
that one with the smallest (non-negative)
quantity-to-pivot column ratio
3 Calculate the new values for the pivot row
4 Calculate the new values for the other row(s)
5 Calculate the Cj and Cj-Zj values for this tableau.
If there are any Cj-Zj numbers greater than zero,
return to step 1.
PowerPoint presentation to accompany Operations © 2001 by Prentice Hall, Inc., Upper Saddle River, N.J.
Management, 6E (Heizer & Render) B-9 07458
 Sensitivity Analysis

¨ Projects how much a solution might change

if there were changes in variables or input
data.
¨ Shadow price (dual) - value of one additional
unit of a resource

PowerPoint presentation to accompany Operations © 2001 by Prentice Hall, Inc., Upper Saddle River, N.J.
Management, 6E (Heizer & Render) B-10 07458
 Minimization Example
You’re an analyst for a division of BW: $2,500
Kodak, which makes BW & color manufacturing cost
chemicals. At least 30 tons of BW per month
and at least 20 tons of color must
be made each month. The total
chemicals made must be at least 60 © 1995 Corel Corp.

tons. How many tons of each

chemical should be made to
minimize costs? Color: $ 3,000 manufacturing
cost per month
PowerPoint presentation to accompany Operations © 2001 by Prentice Hall, Inc., Upper Saddle River, N.J.
Management, 6E (Heizer & Render) B-11 07458
 Formulation of Solution
¨ Decision variables
¨ X1 = tons of BW chemical produced
¨ X2 = tons of color chemical produced
¨ Objective
¨ Minimize Z = 2500X1 + 3000X2
¨ Constraints
¨ X1 30 (BW); X2 20 (Color)
¨ X1 + X2 60 (Total tonnage)
¨ X1  0; X2  0 (Non-negativity)
PowerPoint presentation to accompany Operations © 2001 by Prentice Hall, Inc., Upper Saddle River, N.J.
Management, 6E (Heizer & Render) B-12 07458
 Simplex Steps for Minimization
1 Choose the variable with the greatest negative Cj- Zj
to enter the solution
2 Determine the row to be replaced by selecting that
one with the smallest (non-negative) quantity-to-
pivot column ratio
3 Calculate the new values for the pivot row
4 Calculate the new values for the other row(s)
5 Calculate the Cj and Cj-Zj values for this tableau.
If there are any Cj-Zj numbers less than zero, return
to step 1.
PowerPoint presentation to accompany Operations © 2001 by Prentice Hall, Inc., Upper Saddle River, N.J.
Management, 6E (Heizer & Render) B-13 07458
 HW

¨ Solve the first problem (MAX) in this PPT file

by Excel

¨ Submit it on Blackboard

PowerPoint presentation to accompany Operations © 2001 by Prentice Hall, Inc., Upper Saddle River, N.J.
Management, 6E (Heizer & Render) B-14 07458