Chapter 7 Linear Programming Models: Graphical and Computer Methods
To accompany Quantitative Analysis for Management, 8e by Render/Stair/Hanna
7-1
2003 by Prentice Hall, Inc. Upper Saddle River, NJ 07458
Learning Objectives
Students will be able to:
Understand the basic assumptions and properties of linear programming (LP). Formulate small to moderatesized LP problems. Graphically solve any LP problem with two variables by both the corner point and isoline methods.
To accompany Quantitative Analysis for Management, 8e by Render/Stair/Hanna
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2003 by Prentice Hall, Inc. Upper Saddle River, NJ 07458
Learning Objectives continued
Understand special issues in LP - infeasibility, unboundedness, redundancy, and alternative optima. Understand the role of sensitivity analysis. Use Excel spreadsheets to solve LP problems.
To accompany Quantitative Analysis for Management, 8e by Render/Stair/Hanna
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2003 by Prentice Hall, Inc. Upper Saddle River, NJ 07458
Chapter Outline
7.1 Introduction 7.2 Requirements of a Linear Programming Problem 7.3 Formulating LP Problems 7.4 Graphical Solution to an LP
Problem
7.5 Solving Flair Furnitures LP Problem using QM for Windows
and Excel
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2003 by Prentice Hall, Inc. Upper Saddle River, NJ 07458
Chapter Outline continued
7.6 Solving Minimization Problems 7.7 Four Special Cases 7.8 Sensitivity Analysis in LP
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2003 by Prentice Hall, Inc. Upper Saddle River, NJ 07458
Examples of Successful LP Applications
1. Development of a production schedule that will satisfy future demands for a
firms production and at the same time
minimize total production and inventory costs 2. Selection of the product mix in a factory to make best use of machinehours and labor-hours available while maximizing the firms products
To accompany Quantitative Analysis for Management, 8e by Render/Stair/Hanna
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2003 by Prentice Hall, Inc. Upper Saddle River, NJ 07458
Examples of Successful LP Applications
3. Determination of grades of petroleum products to yield the maximum profit
4. Selection of different blends of raw
materials to feed mills to produce finished feed combinations at minimum
cost
5. Determination of a distribution system that will minimize total shipping cost from several warehouses to various market locations
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2003 by Prentice Hall, Inc. Upper Saddle River, NJ 07458
Requirements of a Linear Programming Problem
All problems seek to maximize or minimize some quantity (the objective function). The presence of restrictions or constraints, limits the degree to which we can pursue our objective. There must be alternative courses of action to choose from. The objective and constraints in linear programming problems must be expressed in terms of linear equations or inequalities.
To accompany Quantitative Analysis for Management, 8e by Render/Stair/Hanna
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2003 by Prentice Hall, Inc. Upper Saddle River, NJ 07458
Basic Assumptions of Linear Programming
Certainty
Proportionality
Additivity Divisibility Nonnegativity
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2003 by Prentice Hall, Inc. Upper Saddle River, NJ 07458
Flair Furniture Company Data - Table 7.1
Hours Required to Produce One Unit
Department T C Tables Chairs Available Hours This Week 240 100
Carpentry Painting &Varnishing Profit Amount
4 2 $7
3 1 $5
Constraints: 4T + 3C 240 (Carpentry) 2T + 1C 100 (Paint & Varnishing) Objective: Max: 7T + 5C
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2003 by Prentice Hall, Inc. Upper Saddle River, NJ 07458
Flair Furniture Company Constraints
120 100
Number of Chairs
Painting/Varnishing
80 60 40
Carpentry
20 0
20
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40
7-11
60
80
100
Number of Tables
2003 by Prentice Hall, Inc. Upper Saddle River, NJ 07458
Flair Furniture Company Feasible Region
120
Number of Chairs
Painting/Varnishing
100 80 60
Carpentry
40 20 0 20 40
7-12
Feasible Region
60 80 100
Number of Tables
To accompany Quantitative Analysis for Management, 8e by Render/Stair/Hanna 2003 by Prentice Hall, Inc. Upper Saddle River, NJ 07458
Flair Furniture Company Isoprofit Lines
120 100
Painting/Varnishing 7T + 5C = 210 7T + 5C = 420
Number of Chairs
80 60 40 20 0
Carpentry
20
40
60
80
100
Number of Tables
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2003 by Prentice Hall, Inc. Upper Saddle River, NJ 07458
Flair Furniture Company Optimal Solution
120 100
Isoprofit Lines
Painting/Varnishing
Number of Chairs
80 60 40
Solution (T = 30, C = 40) Carpentry
20
0 20
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60
7-14
80
100
Number of Tables
2003 by Prentice Hall, Inc. Upper Saddle River, NJ 07458
Flair Furniture Company Optimal Solution
120
2
100
Corner Points
Painting/Varnishing
Number of Chairs
80 60 40
Solution (T = 30, C = 40) 3 Carpentry
20
1
0 20
4 60 80 Number of Tables
40
7-15
100
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2003 by Prentice Hall, Inc. Upper Saddle River, NJ 07458
Flair Furniture - QM for Windows
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2003 by Prentice Hall, Inc. Upper Saddle River, NJ 07458
Flair Furniture - Excel
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2003 by Prentice Hall, Inc. Upper Saddle River, NJ 07458
Holiday Meal Turkey Ranch
Minimize: 2 X1 + 3 X 2 Subject to : 5 X1 + 10 X 2 90 ( A) (B)
4 X1 + 3 X 2 48
X1
11/2 (C)
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2003 by Prentice Hall, Inc. Upper Saddle River, NJ 07458
Holiday Meal Turkey Problem
Corner Points
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Holiday Meal Turkey Problem
Isoprofit Lines
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Special Cases in LP
Infeasibility
Unbounded Solutions Redundancy Degeneracy More Than One Optimal Solution
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A Problem with No Feasible Solution
X2
8
6 4
Region Satisfying 3rd Constraint
2
0
X1
Region Satisfying First 2 Constraints
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A Solution Region That is Unbounded to the Right
X2 15
X1 > 5
X2 < 10
10
Feasible Region
X1 + 2X2 > 10
10
15
X1
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A Problem with a Redundant Constraint
X2 30 25
2X1 + X2 < 30
20
15 10 5 0
Redundant Constraint
X1 < 25
X1 + X2 < 20
Feasible Region
X1
10
15
7-24
20
25
30
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2003 by Prentice Hall, Inc. Upper Saddle River, NJ 07458
An Example of Alternate Optimal Solutions
8 7 6 5 4 3 2 1 A
Optimal Solution Consists of All Combinations of X1 and X2 Along the AB Segment Isoprofit Line for $8
B AB
Isoprofit Line for $12 Overlays Line Segment
5 6 7 8
0
1 2 3 4
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2003 by Prentice Hall, Inc. Upper Saddle River, NJ 07458
Sensitivity Analysis
Changes in the Objective
Function Coefficient
Changes in Resources (RHS)
Changes in Technological
Coefficients
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2003 by Prentice Hall, Inc. Upper Saddle River, NJ 07458
Changes in the Technological Coefficients for High Note Sound Co.
(a) Original Problem
X2
60 3X1 + 1X2 < 60 40 Stereo Receivers 20 0 a b 2X1 + 4X2 < 80 d c 20 40 X1 20 e 30 40 X1 Optimal Solution a 2X1 + 4X2 < 80 Still Optimal 2X1 + 1X2 < 60
(b) Change in Circled X2 Coefficient
CD Players
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CD Players
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2003 by Prentice Hall, Inc. Upper Saddle River, NJ 07458
Changes in the Technological Coefficients for High Note Sound Co.
(a) Original Problem
X2 60 3X1 + 1X2 < 60 40 Stereo Receivers 20 0 a b c 20 40 CD Players
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(c) Change in Circled X2 Coefficient
3X1 + 1X2 < 60
Optimal Solution
Optimal Solution 2X1 + 5X2 < 80 f g c
2X1 + 4X2 < 80
X1
20
40
X1
CD Players
7-28
2003 by Prentice Hall, Inc. Upper Saddle River, NJ 07458