UNIT 3: INTRODUCTION TO LINEAR PROGRAMMING

3.1 INTRODUCTION

Linear programming- is an optimization method which shows how to allocate scarce resources in
the best possible way subject to more than one limiting condition expressed in the form of
inequalities and /or equations.
It
- Enables users to find optimal solution to certain problems in which the solution must
satisfy a given set of requirements or constraints.
- Optimization in linear programming implies either maximization (max) Profit, revenue,
sales, market share or minimization (min) Cost, time, distance, or a certain objective
function.
- Involves linearly related multi-variable functions i.e. functions with more than one
independent variables.
- The goal in linear programming is to find the best solution given the constraints imposed
by the problem, hence the term constrained optimization.
optimization.

3.2 LINEAR PROGRAMMING MODELS

LP models are mathematical representation of LP problems. Some models have a specialized

format where as others have a more generalized format. Despite this LPMs have certain
characteristics in common, knowledge of these characteristics enables us to recognize problems
that are amenable to a solution using LP models and to correctly formulate an LP model.
The characteristics can be grouped into two categories: Components and assumptions.
assumptions. The
components relate to the structure of a model, where as the assumptions describe the conditions
under which the model is valid.

Components Assumptions
 1. Objective function 1. Linearity
2. Decision variables Model 2. Divisibility
Model
3. Constraints Structure 3. Certainty Validity
4. Parameters and Right. 4. Non-negativity
Hand Side Values

3.2.1 Components of LP Model

a) The Objective function:
function: is the mathematical/ quantitative expression of the objective of
the company/ model. The objective in problem solving is the criterion by which all
decisions are evaluated. In LPMs a single quantifiable objective must be specified by the
decision maker. For example, the objective might relate to profits, or costs or market
share, best to only one of these. Moreover, because we are dealing with optimization, the
objective will be either maximization or minimization, but not both at a time
b) The Decision Variables:
Variables: represent unknown quantities to be resolved for. These decision
variables may represent such things as the:
- number of units of different products to be sold
- the amount of dollars to invest in various projects
- the amount of ads to place with different media
Since the decision maker has freedom of choice among actions, these decision variables
are controllable variables.

c) The constraints:
constraints: are restrictions which define or limit the attainability (achievability)
feasibility of a proposed course of action. They limit the degree to which the objective
can be pursued.
A typical restriction embodies scarce resources (such as labor supply, RMs, production
capacity, machine time, storage space), legal or contractual requirements (e.g. Product
standards, work standards), or they may reflect other limits based on forecasts, customer
orders, company policies etc.

d) Parameters-
Parameters- are fixed values that specify the impact that one unit of each decision
variable will have on the objective and on any constraint it pertains to as well as to the
numerical value of each constraint.
 The components are the building blocks of an LP model. We can better understand their meaning
by examining a simple LP model as follows.

Example:
Maximize: 4X1 + 7X2 + 5X3 (profit)… objective function subject to
2X1 + 3X2 + 6X3 ¿ 300 labor hrs System
5X1 + 4X3 ¿ 200 raw materials Constraints

3X1 + 5X2 + 2X3 ¿ 360 machine hrs

X1 = 30 Individual
Constraints
X2 ¿ 40
X1, X2, X3 ¿ 0 Non negativity constraints
X1 – qty of product 1
Decision Variables

X2 - qty of product 2
X3 - qty of product 3

System constraints-
constraints- involve more than one decision variables
Individual constraint-
constraint- involve only one decision variable.
None-negativity constrains-
constrains- specify that no variable will be allowed to take on a negative value.
The non negativity constraints typically apply in an LP model, whether they are explicitly stated
or not.

3.2.2 Assumption of LP models

a) Linearity
The linearity requirement is that each decision variable has a linear impact on the objective
function and in each constraint in which it appears. Taking the above example, producing one
more unit of products add br 4 to the total profit. This is true over the entire range of possible
values of x1. The same applies (true) to each of the constraints.

b) Divisibility: The divisibility requirement pertains to potential values of decision variables. It

is assumed that non-integer values are acceptable. For example: 3.5 TV sets/ hr would be
acceptable 7TV sets/ 2hr.
c) Certainty: The parameters are known and constant. The certainty requirement involves two
aspects of LP models. The constraint equations do not change.
(1) With respect to model parameters (i.e. the numerical values) –It is assumed that these
values are known and constant. E.g. In the above example, each unit of product 1 requires 2
labor hours is known and remain constant, and also the 300 labor available is deemed to be
known and constant.
(2) All the relevant constraints identified and represented in the model are as they are.

d) Non-negativity-
Non-negativity- The non-negativity constraint is that negative values of variables are
unrealistic and, therefore, will not be considered in any potential solutions, only positive values
and zero will be allowed.

3.3 FORMULATING LP MODELS

Once a problem has been defined, the attention of the analyst shifts to formulating a model. Just
as it is important to carefully formulate the model that will be used to solve the problem. If the
LP model is ill formulated, ill-structured, it can easily lend to poor decisions.

Formulating linear programming models involves the following steps:

1) Define the problem/ problems definition:
definition: to determine the no. of type 1 and type 2
products to be produced per month so as to maximize the monetary profit given the
restriction.
2) Identity the decision variables or represent unknown quantities.
quantities.
* Let X1 and X2 be the monthly quantities of type 1 and type 2 products.
3) Determine the objective function: Once the variables have been identified, the objective
function can be specified. It is necessary to decide if the problem is whether a
maximization or a minimization problem and the coefficients of each decision variable.

4) Identify the constraints

- system constraints- more than one variable
- Individual constraints- one variable and non-negativity constraints.
Example 1
1. A firm that assembles computer equipment is about to start production of two new micro
computers. Each type of microcomputer will require assembly time, inspection time, and storage
space. The amount of each of these resources that can be devoted to the production of micro
computers is limited. The manager of the firm would like to determine the quantity of each micro
computer to produce in order to maximize the profit generated by sales of these micro
computers.

Additional information
In order to develop a suitable model of the problem, the manager has met with the design and
manufacturing personnel. As a result of these meetings, the manager has obtained the following
information:

Type 1 Type 2
Profit per unit $ 60 $ 50
Assembly time per unit 4hrs 10hrs
Inspection time per unit 2hrs 1hr
Storage space per unit 3 cubic ft 3 cubic ft

The manager also has acquired information on the available company resources. These (weekly)
amounts are:
Resource Resource available
Assembly time 100hrs
Inspection time 22hrs
Storage space 39cubic feet

The manager has also met with the firms marketing manager and learned that demand for the
micro computers was such that whatever combination of these two types of micro computers is
produced, all of the output can be sold.

Answer

Step 1:
1: Problem definition
- To determine the no. of two types of microcomputers to be produced (and sold) per week
so as to maximize the weekly profit given the restrictions.
Step 2: Variable representation
- Let X1 and X2 be the weekly quantities of type 1 and type 2 microcomputers respectively.

Step 3: Develop the objective function

Maximize or Z max = 60X1 + 50X2

Step 4: Constraint identification

 System constraints: 4X1 + 10X2 ¿ 100hrs Assembly
2X1 + X2 ¿ 22hrs Inspection
3X1 + 3X2 ¿ 39 cub Feet Storage
 Individual constraints ….No
 Non-negativity constraint ….X1, X2 ¿ 0

In summary, the mathematical model for the microcomputer problem is:

Z max = 60X1 + 50X2
Subject to
4X1 + 10X2 ¿ 100
2X1 + X2 ¿ 22
3X1 + 3X2 ¿ 39
X1, X2 ¿ 0
Example 2
2. An electronics firm produces three types of switching devices. Each type involves a two-step
assembly operation. The assembly times are shown in the following table:

Assembly time per unit (minutes)

Station 1 Station 2
Model A 2.5 3.0
Model B 1.8 1.6
Model C 2.0 2.2
Available working hrs 7.5hr 7.5hr

Each workstation has a daily working time of 7.5 hrs. The manager wants to obtain the greatest
possible profit during the next five working days. Model A yields a profit of br. 8.25 per unit,
Model B a profit of br 7.5 per unit and model C a profit of Br 7.8 per unit. Assume that the firm
can sell all it produces. During this time, but it must fill outstanding orders for 20 units of each
model type.
Required.
Required. Formulate the linear programming model of this problem.

Solution
Step 1: Problem definition: to determine the number of three types of switching devices to be
produced and sold for the next 5 days (working) so as to maximize the 5 days profit.

2. Variable representation
Let X1, X2, and X3 be the number of model A, B and C switching devices to be produced and
sold.

3. Develop objective function

Z max = 8.25X1 + 7.50X2 + 7.80X3

4. Constraint identification
2.5X1 + 1.8X2 + 2.0X3 ¿ 450minutes…Assembly time station 1 System
Constraints
3.0X1 + 1.6X2 + 2.2X3 ¿ 450minutes…. Assembly time station2
X1 ¿ 20 …. Model A
Individual
X2 ¿ 20 ….Model B Constraints
X3 ¿ 20….Model C
X1, X2, X3 ¿ 0 ….no negativity

Summary

Z max = 8.25X1 + 7.50X2 + 7.8X3

Subject to: 2.5X1 + 1.8X2 + 2X3 ¿ 450
 3X1 + 1.6X2 + 2.2X3 ¿ 450
X1 ¿ 20
X2 ¿ 20
X3 ¿ 20
X1 X2 X3 ¿ 0

3.4 SOLUTION APPROACHES TO LINEAR PROGRAMMING PROBLEMS

There are too approaches to solve linear programming problems.

1. The graphic solution method
2. The algebraic solution/ simplex algorithm

3.4.1 The Graphic solution Method

It’s a relatively straight forward method for determining the optional solution to certain linear
programming problems. It gives us a clear picture.

This method can be used only to solve problems that involve two decision variables. However,
most linear programming applications involve situations that have more than two decision
variables, so the graphic approach is not used to solve these.

Example 1. Solving the micro-computer problem with graphic approach.

Z max: 60X1 + 50X2
S.t: 4X1 + 10X2 ¿ 100
2X1 + X2 ¿ 22
3X1 + 3X2 ¿ 39
X1, X2 ¿ 0

Steps

1. Plot each of the constraints and identify its region.

2. Identify the common region, which is all area that contains all of the points that satisfy
the entire set of constraints.
 3. Determine the optional solution-identify the point which lead to maximum benefit or
minimum cost.
4X1 + 10X2 = 100 2X1 + X2 = 22 3X1 + 3X2 = 39
X1 0 25 X1 0 11 X1 0 13
X2 10 0 X2 22 0 X2 13 0
X2
24 Region ABCDE is called feasible region point C =?
(0, 22) (2x1 + x2 = 22) x-3
20 3x1 + 3x2 = 39
2X1 + X2 = 22 -6x1 - 3x2 = -66
16 3x1 + 3x2 = 39
-3x1 = -27
12 3x1 + 3x2 = 39 x1 = -27/-3 = 9
E 2(9) + x2 = 22
8
D 4x1 + 10x2 = 100 x2 = 22 – 18 = 4
C Point D = (3x1 + 3x2 = 39) x - 4
4 (4x1 + 10x2 = 100) x3
= -12x1 + 12x2 = -156
12x1+ 30x2 = 300
0
X1 18x2 = 144
A 4 8 B 12 16 20 24 X2 = 8
3x1 + 3(8) = 39
3x1 = 39 – 24
X1 = 15/3 = 5

To identity the maximum (minimum) value we use the corner point approach or the extreme
point approach. The corner point/ extreme point approach has one theorem. It states that:

For problems that have optional solutions, a solution will occur at an extreme, or corner point.
Thus if a problem has a single optional solution, it will occur at a corner point. If it has multiple
optional solutions, at least one will occur at a corner point consequently, in searching for an
optional solution to a problem, we need any corner/ the extreme points because one of those
must be optional. Further, determining the value of the objective function at each corner point,
we could identify the optional solution by selecting the corner point that has the best value (i.e.
maximum or minimum, depending on the optimization case) of the objective function. Extreme
points represent interactions of constraints.

Determine the values of the decision variables at each corner point. Sometimes, this can be
done by impaction (observation) and sometimes by simultaneous equation.
 Substitute the value of the decision variables at each corner point into the objective function
to obtain its value at each corner point.
After all corner points have been evaluated, select the one with the highest or lowest value
depending on the optimization case.
Value of the objective
Corner Coordinates How function Z = 60X1 + 50X2
Points X1 X2 determined?
A 0 0 observation 0 br
B 11 0 observation 660 br
C 9 4 Simultaneous 740 br
equation

D 5 8 Simultaneous 700 br
equation

E 0 10 Observation 500 br

Basic Solution
X1 = 9 X2 = 4 Z = 740 Br.
After we have got the optimal solution,
solution, we have to substitute the value of the decision variables
into the constraints and check whether all the resources available are used or not. If there is any
unused resource we can use it for any other purpose. The amount of unused resource is known as
slack-
slack- the amount of a scarce resource that is unused by a given solution. The slack can range
from zero, for a case in which all of a particular resource is used, to the original amount of the
resource that was available (i.e. none of it is used.)

Computing the amount of slack

Originally unused Amount of slack
Amount used available (Available-used)

Constraint X1 = 9, X2 = 4
Assembly 4(9) + 10(4) = 76 100 100 – 76 = 24 hrs
Inspection 2(9) 9+ 1(4) = 22 22 22 – 22 = 0 hr
Storage 3(9) + 3(4) = 39 39 39 – 39 = 0 hr
Constraints that have no slack are sometimes referred to as binding constraints since they limit or
bind the solution. In the above cases, inspection time and storage space are binding constraints,
while assembly time has slack.

Knowledge of unused capacity can be useful for planning. A manager may be able to use the
remaining assembly time for other products, or, perhaps to schedule equipment maintenance,
safety seminars, training sermons or other activities

Interpretation:
Interpretation: The Company is advised to produce 9 units of type 1 micro computer and 4 units
of type 2 micro computers per week to maximize its early profit to Br. 740, and in doing so the
company would be left with unused resource of 24 assembly hrs which can be used for other
purposes.
Example 2: A diet for Ethiopian athletes is to be developed from two types of foods; type 1 and
type 2 foods. Type 1 food costs 5 birr and type 2 food costs 8 birr per unit. One pound of type 1
food contains 10 units of vitamins and 20 units of minerals whereas one pound of type 2 food
contains 30 units of vitamins and 15 units of minerals. A diet is to be designed so that it must
contain at least 140 units of vitamins and 145 units of minerals.
Required: a) Develop linear programming model.
b) What combinations of food to be used to have the least cost?
Solution
a) C min = 5X1 + 8X2
10X1 + 30X2 ¿ 140…vitamins 10X1 + 30X2 = 140
20X1 + 15X2 ¿ 145…minerals X1 0 14
X1, X2 ¿ 0 X2 14/3 0
b)
X2 20X1 + 15X2 = 145 X1 0 7.25
X2 9.67 0
12

A
8
 20X1 + 15X2 = 145

4 B 10X1 + 30X2 = 140

0 C X1
4 8 12 16

Value of objective
Coordinates How determined Function cmin = 5X1 + 8X2
Points X1 X2
A 0 9.67 Observation 77.3 br.
B 5 3 Simul. equn. 49 br.
C 14 0 Observation 70 br.

Basic solution X1 = 5 pounds X2 = 3 pounds C = 49 br.

Interpretation: to make the diet the minimum cost of Br. 49, we have to purchase 5 pounds of
type 1 food and 3 pounds of type 2 food.

If there is a difference between the minimum required amount and the optimal solution, we call
the difference surplus; that is: surplus is the amount by which the optimal solution causes a ¿
constraint to exceed the required minimum amount. It can be determined in the same way that
slack can: substitute the optimum values of the decision variables into the left side of the
constraint and solve. The difference between the resulting value and the original right-hand side
amount is the amount of surplus.
Surplus can potentially occur in a ¿ constraint.