For All Practical

Chapter 4: Linear Purposes

Programming
LessonPlan
Mixture Problems
 Combining Resources to Maximize Profit
Mathematical Literacy
in Today’s World, 8th
ed.
 Finding the Optimal Production Policy

 Why the Corner Point Principle Works

 Decreasing-Time-List Algorithm

 Linear Programming
 Life Is Complicated

 A Transportation Problem
 Delivering Perishables

 Improving on the Current Solution

© 2009, W.H. Freeman and Company 1

Chapter 4: Linear Programming
Mixture Problems
 Linear Programming
 A management science technique that helps a business
allocate the resources it has on hand to make a particular mix of
products that will maximize profit.
 One of the most frequently used management science
techniques.

 Mixture Problem
 Limited resources are
combined into products
in such a way that the
profit from selling those
products is a maximum.

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 Chapter 4: Linear Programming
Mixture Problems
Common Features of Mixture Problems
Resources – Available in limited, known quantities for time period.
Products – Made by combining, or mixing, the resources.
Recipes – How many units of each resource are needed.
Profits – Each product earns a known profit per unit.
Objectives – To find how much of each product to make to
maximize profit without exceeding any of the resource limitations

 Production Policy
 A solution to a linear-programming mixture problem is a production
policy that tells us how many units of each product to make.
 Optimal Production Policy Has Two Properties
 First, it is possible; that is, it does not violate any of the limitations under
which the manufacturer operates, such as availability of resources.
 Second, the optimal production policy gives the maximum profit.

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Chapter 4: Linear Programming
Mixture Problems
 Mixture Problem: Making Skateboards and Dolls
 Skateboards require five units of plastic and are sold for $1 profit.
 Dolls require two units of plastic and are sold for $0.55 profit.
 If 60 units of plastic are available, what numbers of skateboards
and/or dolls should be manufactured to maximize the profits?
 Step 1
 Mixture Chart – display the verbal information into a chart that includes
the unknown variables (x units of Skateboards, and y units of dolls).
 Step 2
 Translate the mixture chart
into mathematical form from
the chart.
5x + 2y ≤ 60 (plastic)
P = 1x + 0.55y (profit)
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Chapter 4: Linear Programming
Mixture Problems
 Feasibility Set or Feasibility Region Feasibility set
 Our goal is to find the best mixture of x (feasibility
region) - A
and y (skateboards and/or dolls) to
collection of all
produce the largest profit — two phases:
physically
1. Find the feasible set for the mixture possible
problem subject to limited resources. solutions, or
Graph line below 5x + 2y  60 (plastic) choices, that
2. Determine the mixture that gives rise to can be made.
Shade in the feasible
the largest profit (next slide). region is where all
equations are true:
Graph of 5x + 2y  60, and
5x + 2y where x ≥ 0 , y ≥ 0
= 60

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 Chapter 4: Linear Programming
Finding the Optimal ProductionCorner
Policypoint
 Feasibility Set or Feasibility Region principle –
States that in a
 Next step is to find the optimal production
linear
policy, a point within that region that gives
programming
a maximum profit.
problem, the
1. Find the corner points of the feasible region.
maximum value
2. Evaluate the profit at each corner point.
3. Choose the corner point with the highest profit
for the profit
as the production policy. formula always
corresponds to
a corner point
Optimal
Calculation of the Profit Formula for Skateboards and Dolls
of the feasible
production
Corner Point Value of the Profit Formula: $1.00x + $0.55y region.–
policy
(0,0) $1.00(0) + $0.55(0) = $0.00 + $0.00 = $0.00
Corresponds to
(0,30) $1.00(0) +$0.55(30) = $0.00 + $16.50 = $16.50
a corner point
(12,0) $1.00(12) + $0.55(0) = + $0.00 = $12.00 of the feasible
$12.00
Optimal production policy would be the point (0,30), region where
which gives the maximum profit of $16.50. the profit
formula has a 6
maximum value.
Chapter 4: Linear Programming
Finding the Optimal Production Policy
 Example: Mixture of Two Fruit Juices
 Using the data from the mixture chart (two products, two resources):
 Determine the profit and constraint equations.
 Graph the equations and find the feasibility region.

Maximize profit formula: 3x + 4y Feasible region

Constraints: Cranberry: 3x + 2y  200
Apple: 1x + 2y  100
Minimums: x ≥ 0 and y ≥ 0

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 Chapter 4: Linear Programming
Why the Corner Point Principle Works
Example Continued: Mixture of Two Fruit Juices
 Using the corner point principle, the highest profit value on a polygonal feasible
region is always at a corner point.
 Evaluate the profit formula at these corner points:

The profit line for 360 lies

Finding the Optimal Production Policy for Beverages
outside the feasible region
Corner Point Value of the Profit Formula: 3x + 4y cents
(0, 0) 3(0) + 4(0) = 0 cents
(0, 50) 3(0) + 4(50) = 200 cents
(50, 25) 3(50) + 4(25) = 250 cents
(66.7, 0) 3(66.7) + 4(0) = 200 cents (rounded)

Optimal production policy is (50, 25) with max profit = 250

cents.
 Profit Line: If a profit line corresponding to a certain profit does not touch the
feasible region, that profit is not possible. Example 3x + 4y = 360 does not
work. However, a profit = 160 is feasible, but we can do better. The line shifts
from 160 to 360 until it reaches a corner point (50,25) for maximum profit.
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Chapter 4: Linear Programming
Linear Programming: Life is Complicated
 Two Ways the Feasible Region Can Be More Complex
1. It becomes difficult when there are many corners to calculate.
2. It may be difficult to visualize the feasible region as part of two-
dimensional space when there are more than two products.
 The Simplex Method
 The oldest and most common method to solve typically large linear
programming problems (devised by George Dantzig, ~1940).
 How it works: We start at any corner and evaluate the neighboring
corners to see which is closer to optimal (like the temperature hints
“getting warmer”), then move to the warmer corner and re-evaluate the
new neighbors.

 Alternative to the Simplex Method

 This method finds the optimal corner points in fewer steps than the
simplex algorithm by making use of search routes through the interior
of the feasible region (by Narendra Karmarkar, 1984).