UNEC

Operations
Management:
Manufacturing and
Services

Linear Programming
(Graphical Method)
Linear Programming

When (and why) to Apply Linear Programming

Basic Minimization Problem (Graphical)

Basic Maximization Problem (Graphical)

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Linear Programming
Resources are limited
There is an objective (function)
– Generally maximizing profit or minimizing costs
subject to resource-based, or other, constraints.
Linearity in both objective function and
constraint functions
Resources and products are homogeneous
Variables must be divisible and non-negative
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Graphical LP Procedure

1. Formulate the Problem in Mathematical Terms

2. Plot Constraint Equations

3. Determine the Area of Feasibility

4. Plot the Objective Function

5. Find the Optimum Point

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Objective Function

Maximize (or Minimize) Z = C1X1 + C2X2 + ... + CnXn

Cj is a constant that describes the rate of

contribution to costs or profit of units being
produced (Xj).

Z is the total cost or profit from the given number

of units being produced
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Graphical LP - Maximization Example
LawnGrow Manufacturing Company must determine the mix of its
commercial riding mower products to be produced next year. The
company produces two product lines, the Max and the Multimax.
The average profit is $400 for each Max and $800 for each
Multimax. Fabrication and assembly are limited resources. There
is a maximum of 5,000 hours of fabrication capacity available per
month (Each Max requires 3 hours and each Multimax requires 5
hours). There is a maximum of 3,000 hours of assembly capacity
available per month (Each Max requires 1 hour and each Multimax
requires 4 hours).

How many of each riding mower should be produced each month in

order to maximize profit?
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Before we begin

Since the profit is so much higher for Multimax

than for Max, why don’t we just produce
Multimax?

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The Objective Function

Maximize Z = 400X1 + 800 X 2

Where
Z = the monthly profit from Max and Multimax
X1 = the number of Max produced each month
X 2 = the number of Multimax produced each month

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Constraints
Max (X1) Multimax (X2)
Required Time/Unit Required Time/Unit Available Time/Month
3 5 5,000 Fab
1 4 3,000 Assy

3X1 + 5X 2  5,000 Fab

X1 + 4X 2  3,000 Assy
X1 ,X 2  0 Nonnegativity

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Plotting the Constraints
X2 3,000
Fab
X1 X2
0 1,000
2,000 1,666.7 0

Assy
X1 X2
0 750
1,000 3,000 0
A B

C
0,0 1,000 2,000 3,000 X1 10
Plotting the Constraints
X2 3,000
Fab
X1 X2
0 1,000
2,000 1,666.7 0

Assy
X1 X2
0 750
1,000 3,000 0
A B

C
0,0 1,000 2,000 3,000 X1 11
Determining the Slope of the Objective
Function

Recall, Y = mx + b

In our case: Y = X2, x = X1, and b = Z

Z = 400X1 + 800X2

800X2 = - 400X1 + Z

X2 = -1/2 X1 + Z/800 Slope = -1/2

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Finding the Optimal Point
X2 3,000

2,000

1,000
A B

C
0,0 1,000 2,000 3,000 X1
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Finding the Optimal Point
X2 3,000

2,000

Optimal Point
1,000
A B

C
0,0 1,000 2,000 3,000 X1
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 Finding the Optimal Point
X2 3,000 The optimal point occurs
at the intersection of these
2,000
two lines:
3X1 + 5X 2 = 5,000 Fab
1,000
A B X1 + 4X 2 = 3,000 Assy
C
0,0 1,000 2,000 3,000 X1 3X1 + 12X 2 = 9,000 Assy
3X1 + 5X 2 = 5,000 Fab

7X 2 = 4,000
We could (and really X 2 = 571.43, or 571 Multimax
5000 - 5(571)
should) use integer X1 =
3
= 715 Max

programming.
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Wrapping It Up
Max Z = 400X1 + 800 X 2

Z = 400(715) + 800 (571)

Z = $286,000 + $456,800 = $742,800

Produce 715 Max and 571 Multimax per month

for a profit of $742,800.

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Graphical LP - Minimization Example
HiTech Metal Company is developing a plan for buying scrap
metal for its operations. HiTech receives scrap metal from two
sources, Hasbeen Industries and Gentro Scrap in daily shipments
using large trucks. Each truckload of scrap from Hasbeen yields
1.5 tons of zinc and 1 ton of lead at a cost of $15,000. Each
truckload of scrap from Gentro yields 1 ton of zinc and 3 tons of
lead at a cost of $18,000.

HiTech requires at least 6 tons of zinc and at least 10 tons of lead

per day.

How many truckloads of scrap should be purchased per day from

each source in order to minimize scrap metal cost?
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Objective Function

Minimize Z = 15,000 X1 + 18,000 X2

Z= daily scrap cost
X1 = truckloads from Hasbeen
X2 = truckloads from Gentro

Hasbeen
Gentro

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Constraints
Hasbeen (X1) Gentro (X2)
Tons Tons Min Tons
1.5 1 6 Zinc
1 3 10 Lead

1.5X1 + X2 >6 (zinc--tons)

X1 + 3X2 > 10 (lead--tons)

X1, X2 >0 (non-negativity constraint)

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Plotting the Constraints
X2 10 Zinc
9 X1 X2
8 0 6
4 0
7
6 Lead
X1 X2
5 0 3.333
4 10 0

3
2
1
1 2 3 4 5 6 7 8 9 10 X1
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Plotting the Constraints
X2 10 Zinc
9 X1 X2
0 6
8 0
4
7
Lead
6
X1 X2
5 0 3.333
4 10 0

3
2
1
1 2 3 4 5 6 7 8 9 10 X1
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Determining the Slope of the Objective
Function

Minimize Z = 15,000 X1 + 18,000 X2

X2 = -5/6 X1 + Z/18,000

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Finding the Optimal Point
X2 10
9
8
7
6 Optimal Point
5
4
3
2
1
1 2 3 4 5 6 7 8 9 10 X1
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 Finding the Optimal Point
The optimal point occurs
at the intersection of these
two lines:

1.5X1 + X2 =6 (zinc--tons)

X1 + 3X2 = 10 (lead--tons)

1.5X1 + X2 =6 (zinc--tons)
What assumptions 1.5X1 + 4.5X2 = 15 (lead--tons)
are involved?
-3.5X2 = -9, X2 = 2.57 Gentro truckloads
X1 = 10 - 3(2.57) = 2.29 Hasbeen truckloads
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Wrapping It Up

Minimize Z = 15,000 X1 + 18,000 X2

Z = 15,000 (2.29) + 18,000(2.57)

Daily cost = $34,350 + $46,260 = $80,610

Order 2.29 truckloads from Hasbeen and 2.57

truckloads from Gentro for daily delivery. The daily
cost will be $80,610.
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