Chapter 2
Linear Programming:
Model Formulation and
Graphical Solution
Objectives of a business frequently are to
maximize profit or minimize cost.
Linear programming is a model that consists
of linear relationships representing a firm’s
decision(s), given an objective and resource
constraints.
Decision variables are mathematical
symbols that represent levels of activity.
The objective function is a linear
relationship that reflects the objective of an
operation.
A model constraint is a linear relationship
that represents a restriction on decision
making.
Parameters are numerical values that are
included in the objective functions and
constraints.
A linear programming model consists of
decision variables, an objective function,
and constraints.
Nonnegativity constraints restrict the
decision variables to zero or positive values.
A feasible solution does not violate any of
the constraints.
An infeasible problem violates at least one
of the constraints.
Graphical solutions are limited to linear
programming problems with only two
decision variables.
The graphical method provides a picture of
how a solution is obtained for a linear
programming problem.
Constraint lines are plotted as equations.
The feasible solution area is an area on the
graph that is bounded by the constraint
equations.
The optimal solution is the best feasible
solution.
The optimal solution point is the last point
the objective function touches as it leaves
the feasible solution area.
Extreme points are corner points on the
boundary of the feasible solution area.
Constraint equations are solved
simultaneously at the optimal extreme point
to determine the variable solution values.
The slope is computed as the “rise” over the
“run.”
Sensitivity analysis is used to analyze
changes in model parameters.
Multiple optimal solutions can occur when
the objective function is parallel to a
constraint line.
A slack variable is added to a constraint to
convert it to an equation . (=) …
A slack variable represents unused resources
A slack variable contributes nothing to the
objective function value.
The three types of linear programming
constraints are , =, and .
The optimal solution of a minimization
problem is at the extreme point closest to the
origin.
A surplus variable is subtracted from a
constraint to convert it to an equation . (=)
A surplus variable represents an excess
above a constraint requirement level.
For some linear programming models, the
general rules do not always apply
Alternate optimal solutions are at the
endpoints of the constraint line segment that
the objective function parallels
Multiple optimal solutions provide greater
flexibility to the decision maker
An infeasible problem has no feasible
solution area; every possible solution point
violates one or more constraints.
In an unbounded problem the objective
function can increase indefinitely without
reaching a maximum value
The solution space is not completely closed
in.
 Chapter 2
Linear Programming:
Model Formulation and
Graphical Solution
The components of a linear programming the graph, simultaneous equations are solved
model are an objective function, decision to determine the values of and at the solution
variables, and constraints. point. In Chapter 3 we will show how linear
Proportionality means the slope of a programming solutions can be obtained
constraint or objective function line is using computer programs.
constant.
The terms in the objective function or
constraints are additive.
The values of decision variables are
continuous or divisible.
All model parameters are assumed to be
known with certainty.
Summary
The two example problems in this
chapter were formulated as linear
programming models in order to
demonstrate the modeling process. These
problems were similar in that they
concerned achieving some objective subject
to a set of restrictions or requirements.
Linear programming models exhibit certain
common characteristics:
 An objective function to be maximized or
minimized
 A set of constraints
 Decision variables for measuring the level of
activity
 Linearity among all constraint relationships
and the objective function
The graphical approach to the
solution of linear programming problems is
not a very efficient means of solving
problems. For one thing, drawing accurate
graphs is tedious. Moreover, the graphical
approach is limited to models with only two
decision variables. However, the analysis of
the graphical approach provides valuable
insight into linear programming problems
and their solutions.
In the graphical approach, once the
feasible solution area and the optimal
solution point have been determined from