Chapter 7

Linear Programming Models:

Graphical and Computer
Methods

To accompany
Quantitative Analysis for Management, Eleventh Edition,
by Render, Stair, and Hanna
Power Point slides created by Brian Peterson
 Learning Objectives
After completing this chapter, students will be able to:
1. Understand the basic assumptions and
properties of linear programming (LP).
2. Graphically solve any LP problem that has
only two variables by both the corner point
and isoprofit line methods.
3. Understand special issues in LP such as
infeasibility, unboundedness, redundancy,
and alternative optimal solutions.
4. Understand the role of sensitivity analysis.
5. Use Excel spreadsheets to solve LP
problems.
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 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 Furniture’s LP Problem using
QM for Windows and Excel
7.6 Solving Minimization Problems
7.7 Four Special Cases in LP
7.8 Sensitivity Analysis

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 Introduction
◼ Many management decisions involve
trying to make the most effective use of
limited resources.
◼ Linear programming (LP) is a widely used
mathematical modeling technique
designed to help managers in planning and
decision making relative to resource
allocation.
◼ This belongs to the broader field of
mathematical programming.
◼ In this sense, programming refers to modeling
and solving a problem mathematically.
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 Requirements of a Linear
Programming Problem

◼ All LP problems have 4 properties in common:

1. All problems seek to maximize or minimize some
quantity (the objective function).
2. Restrictions or constraints that limit the degree to
which we can pursue our objective are present.
3. There must be alternative courses of action from which
to choose.
4. The objective and constraints in problems must be
expressed in terms of linear equations or inequalities.

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 Basic Assumptions of LP
◼ We assume conditions of certainty exist and
numbers in the objective and constraints are
known with certainty and do not change during
the period being studied.
◼ We assume proportionality exists in the objective
and constraints.
◼ We assume additivity in that the total of all
activities equals the sum of the individual
activities.
◼ We assume divisibility in that solutions need not
be whole numbers.
◼ All answers or variables are nonnegative.

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 LP Properties and Assumptions

PROPERTIES OF LINEAR PROGRAMS

1. One objective function
2. One or more constraints
3. Alternative courses of action
4. Objective function and constraints are linear
– proportionality and divisibility
5. Certainty
6. Divisibility
7. Nonnegative variables
Table 7.1

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 Formulating LP Problems
◼ Formulating a linear program involves developing
a mathematical model to represent the managerial
problem.
◼ The steps in formulating a linear program are:
1. Completely understand the managerial
problem being faced.
2. Identify the objective and the constraints.
3. Define the decision variables.
4. Use the decision variables to write
mathematical expressions for the objective
function and the constraints.

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 Formulating LP Problems
◼ One of the most common LP applications is the
product mix problem.
◼ Two or more products are produced using
limited resources such as personnel, machines,
and raw materials.
◼ The profit that the firm seeks to maximize is
based on the profit contribution per unit of each
product.
◼ The company would like to determine how
many units of each product it should produce
so as to maximize overall profit given its limited
resources.

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 Flair Furniture Company
◼ The Flair Furniture Company produces
inexpensive tables and chairs.
◼ Processes are similar in that both require a certain
amount of hours of carpentry work and in the
painting and varnishing department.
◼ Each table takes 4 hours of carpentry and 2 hours
of painting and varnishing.
◼ Each chair requires 3 of carpentry and 1 hour of
painting and varnishing.
◼ There are 240 hours of carpentry time available
and 100 hours of painting and varnishing.
◼ Each table yields a profit of $70 and each chair a
profit of $50.
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 Flair Furniture Company Data
The company wants to determine the best
combination of tables and chairs to produce to reach
the maximum profit.

HOURS REQUIRED TO
PRODUCE 1 UNIT
(T) (C) AVAILABLE HOURS
DEPARTMENT TABLES CHAIRS THIS WEEK
Carpentry 4 3 240

Painting and varnishing 2 1 100

Profit per unit $70 $50

Table 7.2

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 Flair Furniture Company
◼ The objective is to:
Maximize profit
◼ The constraints are:
1. The hours of carpentry time used cannot
exceed 240 hours per week.
2. The hours of painting and varnishing time
used cannot exceed 100 hours per week.
◼ The decision variables representing the actual
decisions we will make are:
T = number of tables to be produced per week.
C = number of chairs to be produced per week.

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 Flair Furniture Company

◼ We create the LP objective function in terms of T

and C:
Maximize profit = $70T + $50C
◼ Develop mathematical relationships for the two
constraints:
◼ For carpentry, total time used is:
(4 hours per table)(Number of tables produced)
+ (3 hours per chair)(Number of chairs produced).
◼ We know that:
Carpentry time used ≤ Carpentry time available.
4T + 3C ≤ 240 (hours of carpentry time)

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 Flair Furniture Company
◼ Similarly,
Painting and varnishing time used
≤ Painting and varnishing time available.
2 T + 1C ≤ 100 (hours of painting and varnishing time)

This means that each table produced

requires two hours of painting and
varnishing time.

◼ Both of these constraints restrict production

capacity and affect total profit.

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 Flair Furniture Company
The values for T and C must be nonnegative.
T ≥ 0 (number of tables produced is greater
than or equal to 0)
C ≥ 0 (number of chairs produced is greater
than or equal to 0)

The complete problem stated mathematically:

Maximize profit = $70T + $50C
subject to
4T + 3C ≤ 240 (carpentry constraint)
2T + 1C ≤ 100 (painting and varnishing constraint)
T, C ≥ 0 (nonnegativity constraint)

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 Graphical Solution to an LP Problem

◼ The easiest way to solve a small LP

problems is graphically.
◼ The graphical method only works when
there are just two decision variables.
◼ When there are more than two variables, a
more complex approach is needed as it is
not possible to plot the solution on a two-
dimensional graph.
◼ The graphical method provides valuable
insight into how other approaches work.

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 Graphical Representation of a
Constraint
Quadrant Containing All Positive Values
C

100 –
– This Axis Represents the Constraint T ≥ 0
80 –
Number of Chairs

–
60 –
–
40 – This Axis Represents the
– Constraint C ≥ 0
20 –
–
|– | | | | | | | | | | |
Figure 7.1 0 20 40 60 80 100 T
Number of Tables
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 Graphical Representation of a
Constraint

◼ The first step in solving the problem is to

identify a set or region of feasible
solutions.
◼ To do this we plot each constraint
equation on a graph.
◼ We start by graphing the equality portion
of the constraint equations:
4T + 3C = 240
◼ We solve for the axis intercepts and draw
the line.

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 Graphical Representation of a
Constraint
◼ When Flair produces no tables, the
carpentry constraint is:
4(0) + 3C = 240
3C = 240
C = 80
◼ Similarly for no chairs:
4T + 3(0) = 240
4T = 240
T = 60
◼ This line is shown on the following graph:

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 Graphical Representation of a
Constraint
Graph of carpentry constraint equation
C

100 –
–
80 –
Number of Chairs

(T = 0, C = 80)
–
60 –
–
40 –
–
(T = 60, C = 0)
20 –
–
Figure 7.2 |– | | | | | | | | | | |
0 20 40 60 80 100 T
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 Graphical Representation of a
Constraint
Region that Satisfies the Carpentry Constraint
C
◼ Any point on or below
100 – the constraint plot will
– not violate the
80 – restriction.
Number of Chairs

– ◼ Any point above the

60 –
plot will violate the
restriction.
–
(30, 40) (70, 40)
40 –
–
20 –
– (30, 20)
|– | | | | | | | | | | |
Figure 7.3 0 20 40 60 80 100 T
Number of Tables
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 Graphical Representation of a
Constraint

◼ The point (30, 40) lies on the plot and

exactly satisfies the constraint
4(30) + 3(40) = 240.
◼ The point (30, 20) lies below the plot and
satisfies the constraint
4(30) + 3(20) = 180.
◼ The point (70, 40) lies above the plot and
does not satisfy the constraint
4(70) + 3(40) = 400.

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 Graphical Representation of a
Constraint
Region that Satisfies the Painting and
Varnishing Constraint
C

100 – (T = 0, C = 100)
–
80 –
Number of Chairs

–
60 –
–
40 –
–
(T = 50, C = 0)
20 –
–
|– | | | | | | | | | | |
Figure 7.4
0 20 40 60 80 100 T
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 Graphical Representation of a
Constraint

◼ To produce tables and chairs, both

departments must be used.
◼ We need to find a solution that satisfies both
constraints simultaneously.
◼ A new graph shows both constraint plots.
◼ The feasible region (or area of feasible
solutions) is where all constraints are satisfied.
◼ Any point inside this region is a feasible
solution.
◼ Any point outside the region is an infeasible
solution.

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 Graphical Representation of a
Constraint
Feasible Solution Region for the Flair
Furniture Company Problem
C

100 –
–
80 –
Number of Chairs

Painting/Varnishing Constraint
–
60 –
–
40 –
–
Carpentry Constraint
20 – Feasible
– Region
|– | | | | | | | | | | |
Figure 7.5
0 20 40 60 80 100 T
Number of Tables
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 Graphical Representation of a
Constraint
◼ For the point (30, 20)

Carpentry 4T + 3C ≤ 240 hours available

constraint (4)(30) + (3)(20) = 180 hours used ✓
Painting 2T + 1C ≤ 100 hours available
constraint (2)(30) + (1)(20) = 80 hours used
✓

◼ For the point (70, 40)

Carpentry 4T + 3C ≤ 240 hours available

constraint (4)(70) + (3)(40) = 400 hours used 
Painting 2T + 1C ≤ 100 hours available
constraint (2)(70) + (1)(40) = 180 hours used 

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 Graphical Representation of a
Constraint
◼ For the point (50, 5)

Carpentry 4T + 3C ≤ 240 hours available

constraint (4)(50) + (3)(5) = 215 hours used ✓
Painting 2T + 1C ≤ 100 hours available
constraint (2)(50) + (1)(5) = 105 hours used 

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 Isoprofit Line Solution Method
◼ Once the feasible region has been graphed, we
need to find the optimal solution from the many
possible solutions.
◼ The speediest way to do this is to use the isoprofit
line method.
◼ Starting with a small but possible profit value, we
graph the objective function.
◼ We move the objective function line in the
direction of increasing profit while maintaining the
slope.
◼ The last point it touches in the feasible region is
the optimal solution.

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 Isoprofit Line Solution Method
◼ For Flair Furniture, choose a profit of $2,100.
◼ The objective function is then
$2,100 = 70T + 50C
◼ Solving for the axis intercepts, we can draw the
graph.
◼ This is obviously not the best possible solution.
◼ Further graphs can be created using larger profits.
◼ The further we move from the origin, the larger the
profit will be.
◼ The highest profit ($4,100) will be generated when
the isoprofit line passes through the point (30, 40).

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 Isoprofit Line Solution Method
Profit line of $2,100 Plotted for the Flair
C
Furniture Company

100 –
–
80 –
Number of Chairs

–
60 –
– $2,100 = $70T + $50C
(0, 42)
40 –
–
(30, 0)
20 –
–
|– | | | | | | | | | | |
Figure 7.6
0 20 40 60 80 100 T
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Number of Tables 7-30
 Isoprofit Line Solution Method
Four Isoprofit Lines Plotted for the Flair
Furniture Company
C

100 –
–
$3,500 = $70T + $50C
80 –
Number of Chairs

– $2,800 = $70T + $50C

60 –
– $2,100 = $70T + $50C
40 –
– $4,200 = $70T + $50C
20 –
–
|– | | | | | | | | | | |
Figure 7.7
0 20 40 60 80 100 T
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Number of Tables 7-31
 Isoprofit Line Solution Method
Optimal Solution to the Flair Furniture problem
C

100 –
–
80 –
Number of Chairs

Maximum Profit Line

–
60 – Optimal Solution Point
– (T = 30, C = 40)
40 –
– $4,100 = $70T + $50C
20 –
–
|– | | | | | | | | | | |
Figure 7.8
0 20 40 60 80 100 T
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Number of Tables 7-32
 Corner Point Solution Method
◼ A second approach to solving LP problems
employs the corner point method.
◼ It involves looking at the profit at every
corner point of the feasible region.
◼ The mathematical theory behind LP is that
the optimal solution must lie at one of the
corner points, or extreme point, in the
feasible region.
◼ For Flair Furniture, the feasible region is a
four-sided polygon with four corner points
labeled 1, 2, 3, and 4 on the graph.
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 Corner Point Solution Method
Four Corner Points of the Feasible Region
C

100 –
2 –
80 –
Number of Chairs

–
60 –
–
3
40 –
–
20 –
–
1 |– | | | | | | | | | | |
Figure 7.9 0 20 40 60 80 100
4 T
Number of Tables
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 Corner Point Solution Method

◼ To find the coordinates for Point 3 accurately we have to

solve for the intersection of the two constraint lines.
◼ Using the simultaneous equations method, we multiply the
painting equation by –2 and add it to the carpentry equation
4T + 3C = 240 (carpentry line)
– 4T – 2C = –200 (painting line)
C = 40

◼ Substituting 40 for C in either of the original equations

allows us to determine the value of T.
4T + (3)(40) = 240 (carpentry line)
4T + 120 = 240
T = 30
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 Corner Point Solution Method
Point 1 : (T = 0, C = 0) Profit = $70(0) + $50(0) = $0
Point 2 : (T = 0, C = 80) Profit = $70(0) + $50(80) = $4,000
Point 4 : (T = 50, C = 0) Profit = $70(50) + $50(0) = $3,500
Point 3 : (T = 30, C = 40) Profit = $70(30) + $50(40) = $4,100

Because Point 3 returns the highest profit, this is

the optimal solution.

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 Slack and Surplus

◼ Slack is the amount of a resource

that is not used. For a less-than-or-
equal constraint:
◼ Slack = Amount of resource available –
amount of resource used.
◼ Surplus is used with a greater-than-
or-equal constraint to indicate the
amount by which the right hand side
of the constraint is exceeded.
◼ Surplus = Actual amount – minimum
amount.
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 Summary of Graphical Solution
Methods
ISOPROFIT METHOD
1. Graph all constraints and find the feasible region.
2. Select a specific profit (or cost) line and graph it to find the slope.
3. Move the objective function line in the direction of increasing profit (or
decreasing cost) while maintaining the slope. The last point it touches in the
feasible region is the optimal solution.
4. Find the values of the decision variables at this last point and compute the
profit (or cost).
CORNER POINT METHOD
1. Graph all constraints and find the feasible region.
2. Find the corner points of the feasible reason.
3. Compute the profit (or cost) at each of the feasible corner points.
4. Select the corner point with the best value of the objective function found in
Step 3. This is the optimal solution.

Table 7.4

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 Copyright

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