Chapter Two: Linear

Programming/Optimizati
on

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 Introduction
 Linear programming(LP), also called linear
optimization is a mathematical model in which the
objective function and constraint functions are linear in the
decision variables.
 LP is a method to achieve the best outcome in a
mathematical model whose requirements are represented
by linear relationships.
 LP is a problem solving approach developed to make
decisions (Solve business problems)
 LP Models are mathematical representation of LP problems
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 Components of LP models
The major components of LP Models are:
1. Objective function- maximization or
minimization
2. Decision variables- unknown quantities to
be solved for
3. Constraints –availability of resource
(restriction)
4. Parameters- Fixed values that specify the
impact that one unit of each decision variable
will have on the objective
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 Characteristics of LP Models
• The relationship between variables
and constraints must be linear
• The model must have an objective
function
• The model must have structural
constraints
• The model must have non-negativity
constraint

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 Assumptions of LP Models
The assumptions reveal the condition under
which the model will be valid
1. Linearity
2. Divisibility(Integer values for some
quantities)
3. Certainty (Parameters are known
&constant and all relevant constraints are
included in the model )
4. Non- negativity assumptions (negative
values of variables are unrealistic)
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 Example of LP Model

Where x1, x2, x3 are quantities of product1,

product2, and product3 to be produced
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respectively= decision variables
Formulating Linear Programming Models
The formulation of LPM involves the following steps:
1. Define the problem: This involves the determination of
specific objectives.
• The word expression of the specific objective.

Example: to determine the number of units of P1 and P2 to

be produced per month so as to maximize profit given the
restrictions (constraints).
2. Determine the decision variables: This involves the
representation of the unknown quantities by letters
Example: let x1 and x2 represent the number of units of P1 and P2 to be
produced per month respectively.
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Formulating Linear Programming Models
3. Formulate the objective function: in developing the
objective function make sure that:
• All the decision variables are represented in the
objective function
• The unit of measurement of all the coefficients in the
objective function must be the same.
 Example, if we use kg for x1, we should use kg for x2,
too.
• All the terms in the objective must include a variable

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Formulating Linear Programming Models

4. Formulate the constraints: decide on the

constraints and formulate the mathematical
relationship that is used to express the
limitations
5. Determine the non-negativity
assumptions
• Set all decision variables greater or equal to
zero
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Formulating Linear Programming Models

• The general linear programming problem can

be represented in the following mathematical
forms
Maximization Example
Max Z= C1X1 + C2X2 + C3X3 + C4X14… CnXn
Subject to:
A11 x1 + A12x2+ A13x3+ A14x4+ A15x5+ A16x6+ A17x7+ …. + A1nxn <R1
A21 x1 + A22x2+ A23x3+ A24x4+ A25x5+ A26x6+ A27x7+ …. + A2nxn <R2
Ai1 x1 + Ai2x2+ Ai3x3+ Ai4x4+ Ai5x5+ Ai6x6+ Ai7x7+ …. + Ainxn < Rn
Xij > o for J= 1, 2,3,4… n
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Formulating Linear Programming Models

Minimization Example
Min Z= C1X1 + C2X2 + C3X3 + C4X14… CnXn
Subject to:
A11 x1 + A12x2+ A13x3+ A14x4+ A15x5+ A16x6+ A17x7+ …. + A1nxn >R1
A21 x1 + A22x2+ A23x3+ A24x4+ A25x5+ A26x6+ A27x7+ …. + A2nxn >R2
Ai1 x1 + Ai2x2+ Ai3x3+ Ai4x4+ Ai5x5+ Ai6x6+ Ai7x7+ …. + Ainxn > Rn
Xij > o for J= 1, 2,3,4… n

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Application Area of LP
 Production management (product mix, blending
problems, production planning, Assembly, line
balancing…),
 Marketing management (media selection,
revenue determination, physical distribution, etc)
 Personnel management (staffing problem,
Determination of equitable salary and etc)
 Financial management (portfolio selection,
profit planning)
 Agricultural application
 Military applications
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 Example 1
Given: A firm that assembles computer equipments is
about to start production of two new micro computers
(type 1 and type2). Each type of micro computer will
require assembly time, inspection time and storage
space. The amount of each of these resources that can be
devoted to the production of the micro computers is
limited. The manager of the firm would like to determine
the quantity of each micro computer to be produced in
order to maximize the profit generated by the sale of the
micro computers.
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 Further information
Type1
Type 2
Unit profit $60 $50
Assembly time/unit 4 10
Inspection time/unit 2 1
Storage space/unit 3 3
The manager has also information on the availability of
company resources:
Resources Amount available
Assembly time 100hrs
Inspection time 22hrs
Storage space 39cubic
feet

Required: Formulate LP Model

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 Solution
Step1: Define the problem
 To determine the quantity of type I and type
II micro computers to be produced per day
so as to maximize profit, given the
restrictions
Step2: Identify the decision variables
 Let x1 = the quantity of Type I micro
computers to be produced & sold per day.
 x2 = the quantity of Type II micro
computers to be produced& sold per day.
 Z = daily profit
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 Solution
Step 3: Develop the Objective Function

Max Z= 60x1 + 50x2

Step 4: Formulate the Constraints

Assembly time: 4x1 + 10x2 < 100
Inspection time: 2x1 + x2 <22
Storage Space: 3x1 + 3x2 <39
Step 5: Non-negativity

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X1, X2 > 0 16
 Solution

The complete LPM is:

Max Z = 60x1 + 50x2
Subject to:
4x1 + 10x2 < 100
2x1 + x2 <22
3x1 + 3x2 < 39
x1, x2 >0

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 Minimization Example
Two machines C1 and C2 produce two grades of tyres
A and B. In one hour of operation, machine C1
produces 50 units of grade A and 30 units of grade B
tyres while machine C2 produces 30 units of grade A
and 40 units of grade B tyres. The machines are
required to meet a production schedule of at least
1400 units of grade A and 1200 units of grade B tyres.
The cost of operating machine C1 is $50 per hour and
the cost of operating machine C2 is $80 per hour.
Required
• Formulate the LPM if the objective is to minimize the
cost of operating the machines.

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 Solution
Step 1: Define the Problem
Determine the number of hours the two machines
operate in order to minimize the cost, meeting the
production requirement.
Step 2: Determine the decision variables
Let x1= be the number of hours machine C1 should
operate
x2= be the number of hours machine C2 should
operate
Z= be the total cost
Step 3: Formulate the objective function
Min Z = 50x1 + 80x2
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 Solution
Step 4: List the constraints
Grade A: 50x1 + 30x2 > 1400
Grade B: 30x1 + 40x2 > 1200
Step 5: Non-negativity
x1, x2 > 0
Therefore ,The complete LPM is
Min Z = 50x1 + 80x2
Subject to:
50x1 + 30x2 > 1400
30x1 + 40x2 > 1200
x1, x2 > 0
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 Solving LP Problems (LPP)
• There are two methods to solve LP
problems
1.Graphical Method
2.Simplex Method

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 Graphical Method

The graphic method is applicable when we

have two decision variables and the steps
include the following:
Step 1: Formulate the mathematical model of
the problem
Step 2: Plot the constraints on the graph
Step 3: Identify the area that satisfies the
entire set of constraints, determine corners
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 Graphical Method
Step 4: Evaluate the objective function at each
corner points
 The largest value is the maximum (for
maximization problem) and the smallest value
is the minimum (for minimization problem)
 If two corners have the same optimal value, then
the optimum occurs at every point on the line
segment joining the respective corners
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 Maximization Problem

Example: A furniture manufacturing company plans to

make two products namely, Chairs and Tables, from
its available resources which consist of 400 cubic feet
of mahogany timber and 450 man hours of labor. It is
known that to make a chair it requires 5 cubic feet of
timber and 10 man hours and yields a profit of Birr
45/chair. To manufacture a table, it requires 20 cubic
feet of timber and 15 man hours and yields a profit of
Birr 80/table. The problem is to determine how many
chairs and tables the company can make keeping
within the resources constraints so that is maximizes
the profit.
Required: Formulate LP Model and solve the LP problem
using a graphical method.
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 Solution
Formulate the LPM (Step wise)
Step 1: Define the problem:
• To determine the number of chairs and tables to be produced in order to
maximize profit under the limited resources/constraints/.
Step 2: Represent the decision variables
Let x1 =be the number of chairs to be produced
x2= be the number of tables to be produced
Z= be the total be the total profit
Step 3: Formulate the objective function
Max Z = 45x1 + 80x2
Step 4: List the constraints
M.Timber: 5x1 + 20x2 < 400
Man hour Labor: 10x1 + 15x2 <450
Step 5: Non-negativity const.: x1, x2 > 0
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 Solution
Step 1: Formulate the mathematical
model of the problem (Complete LPM)
Max z = 45x1 + 80x2
Subject to: 5X1 + 20X2 < 400
10X1 + 15X2 < 450
x1, x2 > 0

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 Solution
Step 2: Plot the constraints on the graph by
taking two coordinates satisfying the equation
5X1 + 20X2 < 400 i.e. X1 + 4X2 < 80
- - - (a)
10X1 + 15X2 < 450 i.e. 2X1 + 3X2 <
90 - - - (b)
X1, X2 > 0
Converting (a) and (b) to equality, we get
X1 + 4X2 = 80 . . . . (1)
2X1 + 3X2 = 90 . . . (2)

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 Solution
Step 3: Identify the area that satisfies the entire set of
constraints (Feasible region), determine corners and their
coordinate either from graphing procedure or by the elimination
procedure.

Step 4: Evaluate the objective function at each corner.

 The largest value is the maximum and the smallest value is

the minimum.
 If two corners have the same optimal value, then the

optimum occurs at every point on the line segment joining

the respective corners.
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 Solution

Coordinate of corner Objective Function Value

point Max Z=45X1 +
80X2
(0, 0) 45 ×0 + 80×0 = 0 0
(0, 20) 0 + 1600 1600
(24, 14) 45 × 24 + 80 × 14 2200*
(45, 0) 45 × 45 + 80 × 0 2025
Hence, the maximum profit (2200) is obtained
when the company produces 24 chairs and 14
tables
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 Minimization Problem
• Graphical solutions to minimization problems
are very similar to solutions to maximization
problems
• The difference in minimization problems are:
 The constraints are in (>=)greater than
or equal to sign, the feasible solution area
is away from the origin, instead of close to
the origin
 Optimum solution is the smallest possible
value, instead of largest value
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 Minimization Problem
Example : Two machines C1 and C2 produce two
grades of tyres A and B. In one hour of operation,
machine C1 produces 50 units of grade A and 30
units of grade B tyres while machine C 2 produces
30 units of grade A and 40 units of grade B tyres.
The machines are required to meet a production
schedule of at least 1400 units of grade A and
1200 units of grade B tyres. The cost of operating
machine C1 is $50 per hour and the cost of
operating machine C2 is $80 per hour.
Required: How many hours should each machine
operate so that the cost of production is
minimized?
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 Solution
Formulate the LPM (Step wise)
Step 1: to determine the number of hours the two machines operate in
order to minimize cost, meeting the production requirement.
Step 2: Represent the decision variables
Let x1 be the number of hours machine C1 should operate
x2 be the number of hours machine C2 should operates
Z be the total cost
Step 3: Formulate the objective function
Min Z = 50x1 + 80x2
Step 4: List the constraints
Grade A: 50x1 + 30x2 > 1400
Grade B: 30x1 + 40x2 > 1200
Step 5: Non-negativity x1, x2 > 0
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 Solution
Step 1: Formulate the mathematical
model of the problem
Min Z= 50x1 + 80x2
Subject to:
50x1 + 30x2 > 1400
30x1 + 40x2 > 1200
x1, x2 > 0

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 Solution
Exercise the next steps
Step 2: Plot the constraints on the graph
Step 3: Identify the feasible region
Step 4: Evaluate the objective function at
each corner points

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 Solution
Coordinate of corner Objective Function Value
point Min Z= 50x1 +
80x2
(0,46.7) 0 + 80× 46.7 3736
(18.18, 16.40) 50 ×18.18+ 80× 2221
16.40
(40,0) 40× 50+
Therefore, the company can80 ×0 2000*
minimize its cost
to $2000 by operating machine 1 for 40
hours.

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Graphical Solutions for the Special Cases of
LP problems
1. Unbounded problems
2. Problems with no feasible solutions
3. Redundancy in constraints
4. Problems with Multiple optimal
solutions

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Un bounded Problems
An unbounded problem occurs when the value of decision
variable increased indefinitely without violating any of the
constraints. The reason for it may be concluded to be
wrong formulation of the problem such as incorrectly
maximizing instead of minimizing and/or errors in
the given problem.
Example : Max Z = 10X1 + 20X2
Subject to:
2X1 + 4X2 > 16
X1 + 5X2 > 15
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X1, X2 > 0 37
Problems with no feasible solutions
Infeasibility is a condition that arises when there is
no solution to a LP problem that satisfies all the
constraints. This problem occurs when the problem
has a mix of greater and less than constraints ( LPP
formulated with conflicting constraints).
Example: Max Z = 3X1+2X2
Subject to:
2X1 + X2 < 2
3X1 + 4X2 > 12
X1, X2 > 0
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Redundancy in constraints
• In some cases, a constraint does not form a unique boundary
of the feasible solution space.
• Such a constraint is called a redundant constraint. A constraint is
redundant if its removal would not alter the feasible solution
space. Redundancy of any constraint does not cause any difficulty
in solving an LP problems graphically. Constraints appear
redundant when it may be more binding (restrictive) than others.
Example: Max Z= x1 + x2
Subject to:
2x1+3x2<60
2X1+x2<20
X2<25
X1, x2>0
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 Problems with Multiple optimal solutions

• Recall the optimum solution is that extreme point

for which the objective function has the largest

value.

• It is of course possible that in a given problem there

may be more than one optimal solution.

Example : Max Z = 8X1+16X2
Subject to:
X1 + X2 < 200
3X1 + 6X2 < 900
X2 < 125
X1, X2 > 0
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The Simplex
Method

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 The simplex Method
• Graphical method of solving LPP can be
used when we have two decision variables
in the problem.
• If we have more than two decision
variables, we can’t use graphical method
• There fore, SIMPLEX Method is useful to
solve LPP with two and more decision
variables

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 The simplex Method
• Simplex method deals with iterative
process, which consists of first designing a
Basic Feasible Solution and proceed
towards the Optimal Solution and testing
each feasible solution for Optimality to
know whether the solution on hand is
optimal or not.

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 Comparison b/n graphical and Simplex

1. The graphical method is used when we have

two decision variables in the problem.
Whereas in simplex, the problem may have
any number of decision variables
2. In graphical method, the inequalities are
assumed to be equations, so as to enable to
draw straight lines. Whereas in simplex
method the inequalities are converted to
equations by adding Slack variable (in
maximization) and Surplus variable (in
minimization)
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The Simplex Method: Maximization Example

There are 8 steps to be followed:

Step1:Formulate the linear programming model of the
real world problem, i.e., obtain a mathematical
representation of the problem's objective function
and constraints.
Step2: Express the mathematical model of LP
problem in the STANDARD FORM by adding slack
variables in the left-hand side of the constraints
and assign a zero coefficient to these in the
objective function.
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The Simplex Method: Maximization
Example

Example : Maximize Z = C1X1+ C2X2 + ... +CnXn + OS1 + OS2

+... +0Sm
Subject to
a11X1+a12X2+... + a1nxn+S1=b1
a2lX1+al22X2+... + a2nXn+S2 = b2
amlXl + am2 X2 +... + amnxn + Sm = bm
where X1, X2... Xn and S1, S2 ... Sm are non-negative.

Step 3: Design the initial feasible solution

 An initial basic feasible solution is obtained by setting the
decision variables equal to zero
X1= X2 = ... = Xn = 0. Thus, we get S1 = b1, S2 = b2 ... Sm = bm
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The Simplex Method: Maximization
Example
Step 4: Set up the initial simplex
Tableau
• For computational efficiency and
simplicity, the initial basic feasible solution,
the constraints of the standard LPM as well
as the objective function can be displayed
in a tabular form, called the simplex
tableau.

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The Simplex Method: Maximization
Example

Cj C1 C2 Cn,…. 00..0 Quantity Ratio

Basic CB X1, X2, ... Xn S1

variabl S2 ... Sm
e
S1 CB1 a11 a12 ... a1n 1 b1
0 ... 0
S2 CB2 a21 a22 ... a2n 0 1 b2
... 0
S3 CB3 am1 am2.amn 0 b3
0 ... 1
Zj=ΣCBiXj 0 0 ... 0 0 0 ΣCBiXj
... 0
Simplex Tableau
C1-Z1 C2-Z2 ... Cn-
Cj-Zj Zn
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The Simplex Method: Maximization
Example

 Cj--coefficients of the variables in the

objective function
 X1, X2. Xn----Non-basic variables
 S1, S2... Sm-------basic variables
 Zj entries represent the decrease in the value
of objective function that would result if one
of the variables not included in the solution
were brought into the solution.
 Cj-Zj--index row or net evaluation row, is
used to determine whether or not the current
solution is optimal or not
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The Simplex Method: Maximization
Example
Step 5: Test if the current solution is
optimum or not.
 If all the elements or entries in the Cj- Zj row
(i.e., index row) are negative or zero, then
the current solution is optimum.
 If there exists some positive number, the
current solution can be further improved by
removing one basic variable from the basis
and replacing it by some non-basic one.
 So, start trying to improve the current
solution in line with the following steps.
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The Simplex Method: Maximization
Example
Step 6: Iterate, further, towards an optimum
solution
 To improve the current feasible solution, we need
to replace one current basic variable (called the
leaving variable) by a new non-basic variable
(called the entering variable)
Step 7:Evaluate the new solution by
constructing the next simplex tableau
 After identifying the entering and
leaving/departing variable, all that remains is to
find the new basic feasible solution by constructing
a new simplex tableau from the current one.
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The Simplex Method: Maximization
Example
Step 8: If any of the numbers in Cj - Zj row are
positive, repeat the steps (6-7) again until an
optimum solution has been obtained.
Therefore : A simplex solution in a
maximization problem is optimal if the Cj-Zj
row consists of entirely zeros and negative
numbers, i.e. there are no positive values in
the row.

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Maximization Example
Max Z = 60X1+50X2
Subject to:
4X1+10X2 < 100
2X1+ X2 < 22
3X1+ 3X2 <39
X1, X2 > 0

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 Solution
Step 1: Formulate the linear programming model
of the real world problem i.e mathematical
representation of LPP
Step 2: Put in Standard form
Max Z = 60X1+50X2+0S1+0S2+0S3
Subject to:
4X1+10X2+S1 = 100
2X1+ X2+ S2 = 22
3X1+ 3X2+ S3 = 39
X1, X2, S1, S2, S3 > 0
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 Solution
Step 3: Design the initial feasible solution.
X1= X2=0 so S1= 100 S2= 22 S3=39
Step 4: Set up the initial simplex tableau

Cj 60 50 0 0 0 Quantity
Basic Variables X1 X2 S1 S2 S3
S1 0 4 10 1 0 0 100
S2 0 2 1 0 1 0 22
S3 0 3 3 0 0 1 39
Zj 0 0 0 0 0 0

Cj-Zj 60 50 0 0 0

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 Initial Tableau
Cj 60 50 0 0 0 Quantity
BVs X1 X2 S1 S2 S3
S1 0 4 10 1 0 0 100 100/4= 25
2
S2 0 1 0 1 0 22 22/2= 11
S3 0 3 3 0 0 1 39 39/3=13
Zj 0 0 0 0 0 0 0
Cj-Zj 60 50 0 0 0
Smallest non-negative
quotient
Pivot Row Pivot Column Pivot Element
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 Second tableau
Cj60 50 0 0 0 Quantity
X1 X2 S1 S2 S3
S1 0 0 8 1 -2 0 56
X1 60 1 1/2 0 1/2 0 11
S3 0 0 3/2 0 -3/2 1 6
Zj 60 30 0 30 0 660
Cj-Zj 0 20 0 -30 0

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 Third tableau

Cj 60 50 0 0 0 Quantity
X1 X2 S1 S2 S3
S1 0 0 0 1 6 -16/3 24
X1 60 1 0 0 1
-1/3 9
X2 50 0 1 0 -1 2/3 4
Zj 60 50 0 10 40/3 740
Cj-Zj 0 0 0 -10 -40/3

Therefore, S1 = 24, X1 = 9, and X2 = 4 producing a

maximum profit of $740.
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Minimization
Examples

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 Minimization Example
The various steps involved in using simplex
method for minimization problems are:
Step1: Formulate the linear programming
model, and express the mathematical model
of LPP in the standard form by introducing
surplus and artificial variables in the left
hand side of the constraints.
 Assign a 0 (zero) and +M as coefficient for
surplus and artificial variables
respectively in the objective function.
 M is considered to be a very large number
so as to finally drive out the artificial variables
out of basic solution.
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Minimization Example
• Artificial variables have no physical
interpretation, they merely serve as a
device to enable us to use simplex process.
• During simplex process, any artificial
variables are quickly eliminated from the
solution and hence the optimal solution
should never contains an artificial variable
with a non-zero value.
• Artificial variables are required only for
manual solution; computer codes do not
require to input artificial variables
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 Minimization Example
Step 2: Set up an initial solution
• Just to start the solution procedure, the
initial basic feasible solution is obtained by
assigning zero value to decision variables.
• This solution is summarized in the initial
simplex tableau.
• Complete the initial simplex tableau by
adding two final rows Zj, and Cj- Zj. These
two rows help us to know whether the
current solution is optimum or not.
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Minimization Example
Step 3: Test for optimality of the
solution
 If all the entries of Cj - Zj, row are
positive and zero, then the solution is
optimum.
 However, this situation may come after a
number of iterations.
 But if at least one of the Cj - Zj values is
less than zero, the current solution can be
further improved by removing one basic
variable from the basis and replacing it by
some non-basic one.
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 Minimization Example
Step 4: (i) Determine the entering variable
into the basic solution. To do this, we identify the
column with the largest negative value in the
Cj - Zj row of the tableau (the variable in this
column is entering variable)
(ii) Next, determine the departing variable from
the basic solution. If an artificial variable goes out
of solution, then we discard it totally and even
this variable may not form part of further
iterations. Same procedure, as in maximization
case, is employed to determine the departing
and entering variable.
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Minimization Example
Step 5: Update the new solution
• We evaluate the entries for next
simplex tableau in exactly the same
manner as was discussed earlier in the
maximization example.

65
Minimization Example
Step 6: Step (3-5) are repeated until an
optimum solution is obtained
• So the following are the essential things to observe
in solving for minimization problems:
• The entering variable is the one with the largest
negative value in the Cj-Zj row while the leaving
variable is the one with the smallest non-
negative ratio.
• The optimal solution is obtained when the Cj-Zj
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 Example

Min Z = 7X1+9X2
Subject to
3X1+6X2 > 36
8X1+4X2 > 64
X1, X2 > 0

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 Solution
First, put the LPM in standard
form

Min Z = 7X1+9X2+0S1+0S2+MA1+MA2
Subject to
3X1+6X2-S1+A1 = 36
8X1+4X2-S2+ A2 = 64
X1, X2 , S1,S2,A1, A2> 0

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 Solution
Then, develop the Initial Simplex
Tableau
Cj 7 9 0 0 M M
BV X1 X2 S1 S2 A1 A2 Quantity
A1 M 3 6 -1 0 1 0 36
A2 M 8 4 0 -1 0 1 64
Zj 11M 10M -M -M M M 100M
Cj-Zj 7-11M 9-10M M M 0 0

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 Solution
Next, develop the second Simplex
Tableau
Cj 7 9 0 0 M
X1 X2 S1 S2 A1 Quantity
A1 M 0 9/2 -1 3/8 1 12
X1 7 1 ½ 0 -1/8 0 8
Zj 7 7/2+9/2M -M 3/8M-7/8 M 56+12M
Cj-Zj 0 11/2-9/2M M 7/8-3/8M 0

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 Solution
Next, develop the third Simplex Tableau
Cj 7 9 0 0
X1 X2 S1 S2 Quantity
X2 9 0 1 -2/9 1/12 8/3
X1 7 1 0 1/9 -1/6 20/3
Zj 7 9 -11/9 -5/12 212/3
Cj-Zj 0 0 11/9 5/12

Therefore, the optimal solution is: X1 = 20/3 and X2

= 8/3 and value of objective function is 212/3.

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Post optimality Analysis
1. Duality in LPP
2. Sensitivity Analysis
 Sensitivity analysis involves an
examination of the potential impact of
changes in any of the parameters
(numerical values) of a problem where as
the dual involves setting up and solving LP
problem that is almost a “mirror image”
of LP problem that has been formulated.

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 Duality in LPP
• Every linear programming problem can have two
forms: the original formulation of the problem is
referred to as its primal form. The other form is
referred to as its dual form.
• The dual is just a mirror image of the primal
and hence it is called an alternate form of
linear programming problem
• The solution to the primal problem contains the
solution to the dual problem, and vice versa.
• If so, why are we interested in dual form?

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Duality in LPP
• We need to have the dual LPP for an economic
analysis.
• Analysis of the dual help the manager to evaluate
the potential impact of a new product, and it
can be used to determine the marginal value of
resources (Constraints).
• Relative to the new product, a manager would
want to know what impact adding a new product
would have on the solution quantities and the
profit; relative to resources, a manager can refer
to dual solution to determine how much profit one
unit of each resource is equivalent to.
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Formulating the dual
• A LPP formulated directly from the
description of the problem is a primal
problem.
• The dual, on the other hand, is an
alternate formulation of the problem
that requires the existence of the
primal.
• Let’s take an example how the dual is
formulated from the primal problem
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Formulating the dual from the primal
Max Z= 60x1 + 50x2
Min Z = 100y1 +
Subject to: 22y2+ 39y3
4x1 + 10x2 < 100
2x1 + x2 < 22 Subject to:
3x1 + 3x2 < 39 4y1 + 2y2 + 3y3 >
60
x1, x2 > 0
10y1 + y2 +3y3> 50
y1, y2 ,y3 > 0

Primal problem
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 Sensitivity Analysis
• Sensitivity analysis (A Post optimality
analysis) is made beyond the
determination of optimal solution
• It starts from the final simplex
tableau.
• The purpose is to explore how changes
in any of the parameters of a problem,
such as the coefficient of the objective
function, or the right-hand side values,
would affect the solution
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•
Sensitivity Analysis
• The parameters are assumed to be
constant, but in real life there is nothing
constant. Hence, the optimal values of the
decision variable may be wrong.
• Therefore, we need to check how sensitive is
the solution to the alternate values of
parameters.
• Hence, the decision maker usually would
want to perform sensitivity analysis before
implementing the solution

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 Sensitivity Analysis
• If the additional analysis satisfies the
decision maker that the solution is
reasonable, the decision maker can
proceed with greater confidence in
using the solution
• Conversely, if sensitivity analysis
indicates that the solution is sensitive
to the changes that are within the
realm of possibility, the decision maker
will be warned that more precise
05/20/2025 79
information on parameters are needed.
Thank you