Linear Programming:

Model Formulation

Maumita Roy
 Introduction To Linear
Programming
 Today many of the resources needed as inputs to
operations are in limited supply.

 Operations managers must understand the impact of this

situation on meeting their objectives.

 Linear programming (LP) is one way that operations

managers can determine how best to allocate their
scarce resources.
 There are five common types of
decisions in which LP may play a role
– Production plan
– Ingredient mix
– Transportation
– Assignment
LP Problems in OM: Product
Mix/Production Plan
 Objective
To select the mix of products or services that
results in maximum profits for the planning period
 Decision Variables
How much to produce and market of each product
or service for the planning period
 Constraints
Maximum amount of each product or service
demanded; Minimum amount of product or service
policy will allow; Maximum amount of resources
available
1. Define the objective. (min or max)
2. Define the decision variables.
3. Write the mathematical function for the objective.
4. Write a 1- or 2-word description of each
constraint.
5. Write the right-hand side (RHS) of each constraint.
6. Write <, =, or > for each constraint.
7. Write the decision variables on LHS of each
constraint.
8. Write the coefficient for each decision variable in
each constraint
Example: LP Formulation

 Cycle Trends is introducing two new lightweight

bicycle frames, the Deluxe and the Professional, to
be made from aluminum and steel alloys. The
anticipated unit profits are $10 for the Deluxe and
$15 for the Professional.

 The number of pounds of each alloy needed

per frame is summarized on the next slide. A
supplier delivers 100 pounds of the aluminum alloy
and 80 pounds of the steel alloy weekly. How
many Deluxe and Professional frames should Cycle
Trends produce each week?
Pounds of each alloy needed per frame
Aluminum Alloy Steel Alloy

Deluxe 2 3
Professional 4 2
Define the objective
– Maximize total weekly profit

Define the decision variables

– x1 = number of Deluxe frames produced weekly
– x2 = number of Professional frames produced
weekly

Write the mathematical objective function

– Max Z = 10x1 + 15x2
Write a one- or two-word description of each
constraint
– Aluminum available
– Steel available
Write the right-hand side of each constraint
– 100
– 80
Write <, =, > for each constraint
– < 100
– < 80
 Write all the decision variables on the left-hand side
of each constraint
– x1 x2 < 100
– x1 x2 < 80
Write the coefficient for each decision in each
constraint
– + 2x1 + 4x2 < 100
– + 3x1 + 2x2 < 80
 LP in Final Form
– Max Z = 10x1 + 15x2
– Subject To
 2x1 + 4x2 < 100 ( aluminum constraint)

 3x1 + 2x2 < 80 ( steel constraint)

 x1 , x2 > 0 (non-negativity constraints)

 A company owns two flour mills viz. Sharbati Flour Mill and
Bhavani Flour Mill, which have different production capacities
for high, medium and low quality flour.
The company has entered a contract to supply flour to a firm
every month with at least 5, 20 and 25 quintals of high,
medium and low quality respectively.
It costs the company Rs.4000 and Rs.3000 per day to run mill
Sharbati and Bhavani respectively.
On a day, Mill Sharbati produces 6, 2 and 4 quintals of high,
medium and low quality flour, Mill Bhavani produces 2, 4 and
12 quintals of high, medium and low quality flour respectively.
How many days per month should each mill be operated in
order to meet the contract order most economically.
 Suppose an industry is manufacturing two types of
products Rubber Adhesives and Epoxy Adhesives. The
profits per Kg of the two products are Rs.30 and Rs.40
respectively. These two products require processing in
three types of machines. The following table shows the
available machine hours per day and the time required
on each machine to produce one Kg of Rubber
Adhesives and Epoxy Adhesives. Formulate the problem
in the form of linear programming model.
Profit/Kg Rubber Epoxy Total available Machine
Machine Adhesives Adhesives hours/day
Rs.30 Rs.40

Washing 3 2 60

Boiling 3 5 80

Filling 5 6 110
A firm manufactures two products A &B on which the profit
earned per unit are Rs.3 & Rs.4 respectively. Each product
is processed on two machines M1 and M2. Product A
requires one min. on M1 & 2 min on M2, while B requires 1
min on M1 & 1 min on M2.
Machine M1 is available for not more than 7 hrs. 30min.
while machine M2 is available for 10 hrs. during any
working day. Develop a suitable LP model.
 Frontier bakery has received from a company M/s Bodhraj Ltd., for
supply of high protein biscuits. The order will require 1000 kg of
biscuits mix which is made from 4 ingredients Flour, Sugar, Milk and
Flavouring agent which cost Rs. 16, Rs.4, Rs.6 , and Rs.2 per kg
respectively. The batch must contain a minimum of 400 kilos of
protein, 250 kilos of fat, 300 kilos of carbohydrates and 50 kilos of
sugar. The ingredients contain the following percentage by weight:

Ingredients Protein Fat Carbohydr Sugar Filler

ates
Flour 50% 30% 15% 5% 0%
Sugar 10% 15% 50% 15% 10%
Milk 30% 5% 30% 30% 5%
Flavouring 0% 5% 5% 30% 60%
agent

Only 150 kilos of Sugar and 200 kilos of Milk are immediately available.
Draft a suitable LP model
 A person is interested in investing Rs.5,00,000 in a mix of investments.
The investment choices and expected rates of return on each one of them
are:
Investment Projected rate of return
Mutual fund A 0.12
Mutual fund B 0.09
Money Market fund 0.08
Government Bonds 0.085
Share Y 0.16
Share X 0.18
The investor wants at least 35% of his investment in government bonds.
Because of the higher perceived risk of the two shares, he has specified
that the combined investment in these not to exceed Rs.80,000. The
investor has also specified that at least 20% of the investment should be
in the money market fund and that the amount of money invested in
shares should not exceed the amount invested in mutual funds.His final
investment condition is that the amount invested in mutual fund A should
be no more than the amount invested in mutual fund B. The problem is to
decide the amount of money to invest in each alternative so as to obtain
highest annual total return. Formulate the above as LP model.