Course Code and Title:ACED 23 - Management Science

Lesson Number: 2

Topic:Linear Programming by Graphical Method

Introduction

Many management decisions involve trying to make the most effective use of an
organization’s resources. Resources typically include machinery, labor, money, time,
warehouse space, and raw materials. These resources may be used to make products
(such as machinery, furniture, food, or clothing) or services (such as schedules for
airlines or production, advertising policies, or investment decisions). Linear
programming (LP) is a widely used mathematical modeling technique designed to help
managers in planning and decision making relative to resource allocation

Objectives
At the end of this lesson, you should be able to:
1. Explain the basic assumptions and properties of linear programming (LP).
2. Graphically solve any LP problem that has only two variables by the corner point
method,
3. Identify special issues in LP such as infeasibility, unboundedness, redundancy,
and alternative optimal solution.
Pre-Assessment
Select the best answer:
1. When using a graphical solution procedure, the region bounded by the set of
constraints is called the
infeasible region.
solution.
maximum profit
region.
feasible region.
2. Consider the following linear programming problem:
Maximize 12X + 10Y
Subject to: 4X + 3Y = 480
                  2X + 3Y = 360
X, Y ≥ 0
The maximum possible profit for the objective function is

144
0.
160
0.
152
0.
180
0.
3. A feasible solution to a linear programming problem
must satisfy all of the problem's constraints
simultaneously.
must be a corner point of the feasible region.
must give the maximum possible profit.
need not satisfy all of the constraints, only some of them.

4. Which of the following is a mathematical expression in linear programming that

maximizes or minimizes some quantity?
constraints
decision
variables
objective
function
shadow price

5. Which of the following is NOT an example of an application of linear

programming?
scheduling school buses to minimize distance traveled when carrying students
scheduling tellers at banks so service requirements are met during each hour of the
 day while minimizing the total cost of labor
calculating the wages for an hourly worker if the time worked is unknown
picking blends of raw materials in feed mills to produce finished feed combinations at
minimum cost

Presentation of the Lesson

Linear Programming (LP) Defined
● is planning by the use of linear relationship of variables involved.
● is a technique used by managers to solve a problem by seeking an objective that
is subject to restrictions.
● is an optimization problem for which we do the following:
1. We attempt to maximize (or minimize) a linear function of the decision
variables. The function that is to be maximized or minimized is called the
objective function.
2. The values of the decision variables must satisfy a set of constraints. Each
constraint must be a linear equation or linear inequality.
3. A sign restriction is associated with each variable. For any variable xi, the sign
restriction specifies that xi must be either nonnegative (xi ≥ 0) or unrestricted in
sign (urs)

Properties of a Linear Programming Problem:RTIES OF LINEAR PROGRAMS

1. One objective function. The objective is either to maximize or minimize.
2.One or more constraints. The actions of the manager must be constrained and the
decision variables must not violate the limitations or constraints.
3.Alternative courses of action. There must be alternative courses of action to
choose from.
4. Objective function and constraints are linear—proportionality and divisibility.
The relationship of variables could be expressed in terms of equations or
inequalities.
5. Certainty. We assume that conditions of certainty exist: that is, number in the
objective and constraints are known with certainty and do not change during the
period being studied.
6. Divisibility. We make the divisibility assumption that solutions need not be in whole
numbers (integers).
7. Nonnegative variables. All variables have a value greater than or equal to 0.

Model Formulation is done by defining each component of the model.

Components of a linear programming model:

1, Decision variables - are mathematical symbols that represent levels of activity by
the firm.
2. Objective Function – is a linear mathematical relationship that describes the
objective of the firm in terms of the decision variables. It is introduced by either
“maximize” or “minimize”.
3. Constraints - are linear relationships of the decision variables representing the
restrictions placed on the firm by the operating environment. These are introduced
by “subject to” and are expressed in equations or inequalities. Constraints maybe
explicit or implicit constraints. Explicit constraints are the conditions of the
problem while implicit constraints are those that are implied.
Examples:
Holiday Meal Turkey Ranch
The Holiday Meal Turkey Ranch is considering buying two different brands of turkey
feed and blending them to provide a good, low-cost diet for its turkeys. Each feed
contains, in varying proportions, some or all of the three nutritional ingredients essential
for fattening turkeys. Each pound of brand 1 purchased, for example, contains 5 ounces
of ingredient A, 4 ounces of ingredient B, and 0.5 ounce of ingredient C. Each pound of
brand 2 contains 10 ounces of ingredient A, 3 ounces of ingredient B, but no ingredient
C. The brand 1 feed costs the ranch 2 cents a pound, while the brand 2 feed costs 3
cents a pound. The owner of the ranch would like to use LP to determine the lowest-
cost diet that meets the minimum monthly intake requirement for each nutritional
ingredient.
2. Media Selection
Steps in Solving LP Problems Using Graphical Methods METHOD
1. Formulate the LP model.
2. Graph all constraints and find the feasible region. The feasible region is the set of
points that satisfy all the constraints.
3. Find the vertices or corner points of the feasible region.
4. Compute the profit (or cost) at each of the feasible corner points.
5. Select the vertex or corner point with the best value of the objective function found in
step 3. This is the optimal solution.

Example 1. Giapetto’s Woodcarving, Inc., manufactures two types of wooden toys:

soldiers and trains. A soldier sells for $27 and uses $10 worth of raw materials. Each
soldier that is manufactured increases Giapetto’s variable labor and overhead costs by
$14. A train sells for $21 and uses $9 worth of raw materials. Each train built increases
Giapetto’s variable labor and overhead costs by $10. The manufacture of wooden
soldiers and trains requires two types of skilled labor: carpentry and finishing. A soldier
requires 2 hours of finishing labor and 1 hour of carpentry labor. A train requires 1 hour
of finishing and 1 hour of carpentry labor. Each week, Giapetto can obtain all the
needed raw material but only 100 finishing hours and 80 carpentry hours. Demand for
trains is unlimited, but at most 40 soldiers are bought each week. Giapetto wants to
determine the best possible combination of wooden soldiers and trains to manufacture
in order maximize his weekly profit (revenues costs).
Solution:
Decision Variables: x1 = number of soldiers produced each week
x2 = number of trains produced each week
Objective Function: Maximize Profit = Weekly Revenues – Weekly Total Cost
Weekly Revenues = wrevenue from soldiers + wrevenue from trains
= 27x1 + 21x2
Weekly materials costs = 10x1 + 9x2
Other weekly variable costs = 14x 1 + 10x2
OF: Maximize Z = 27x1 + 21x2 - (10x1 + 9x2 + 14x1 + 10x2)
Max Z = 3x1 + 2x2
Constraints: Subject to: 2x1 + x2 ≤ 100
x 1 + x2 ≤ 80
x1 ≤ 40
x1 ≥ 0
x2 ≥ 0
LP Model: Max Z = 3x1 + 2x2
Subject to: 2x1 + x2 ≤ 100 (0, 100) (50,0)
x 1 + x2 ≤ 80 (0, 80) (80,0)
x1 ≤ 40 (40,0)
x1 ≥ 0
x2 ≥ 0
 Vertices (Corner Points): 3x1 + 2x2
( 0,80) : 3(0) +2(80) = 160
(20,60) : 3(20) + 2(60) = 180
(40, 20): 3(40) + 2(20) = 160
(40, 0): 3(40) + 2(0) = 120
Decision: x1 = 20
X2 = 60
Max Z = 180

2x1 + x2 = 100
x1 + x2 = 80
x1 = 20
20 + x2 = 80
x2 = 60
Example 2: Dorian Auto manufactures luxury cars and trucks. The company believes
that its most likely customers are high-income women and men. To reach these
groups, Dorian Auto has embarked on an ambitious TV advertising campaign and has
decided to purchase 1-minute commercial spots on two types of programs: comedy
shows and football games. Each comedy commercial is seen by 7 million high-income
women and 2 million high income men. Each football commercial is seen by 2 million
high-income women and 12 million high-income men. A 1-minute comedy ad costs
$50,000, and a 1-minute football ad costs $100,000. Dorian would like the commercials
to be seen by at least 28 million high-income women and 24 million high-income men.
Use linear programming to determine how Dorian Auto can meet its advertising
requirements at minimum cost.
Solution:
DV: Let x1 = number of 1-minute comedy ads purchased
x2 = number of 1-minute football ads purchased
O.F. Minimize: Total advertising cost of comedy ads and cost of football ads
LP Model: Min C = 50,000x1 + 100,000x2
Subject to: 7x1 + 2x2 ≥ 28 (0, 14) (4 ,0)
2x1 + 12x2 ≥ 24 (0, 2) (12, 0)
x 1 , x2 ≥ 0
Vertices: (12, 0): 50(12) + 100(0) = 600,000
( 3.6, 1.4): 50(3.6) + 100(1.4) = 320,000
(0, 14): 50(0) +100(14) = 1,400,000

Decision: x1 = 3.6
x2 = 1.4
Min C = 320,000

Example 3: The Flair Furniture Company produces inexpensive tables and chairs. The
production process for each is similar in that both require a certain number of hours of
carpentry work and a certain number of labor hours in the painting and varnishing
department. Each table takes 4 hours of carpentry and 2 hours in the painting and
varnishing shop. Each chair requires 3 hours in carpentry and 1 hour in painting and
varnishing. During the current production period, 240 hours of carpentry time are
available and 100 hours in painting and varnishing time are available. Each table sold
yields a profit of $70; each chair produced is sold for a $50 profit. Flair Furniture’s
problem is to determine the best possible combination of tables and chairs to
manufacture in order to reach the maximum profit. The firm would like this production
mix situation formulated as an LP problem.

Solution: Let x = number of tables to be produced per week

y = number of chairs to be produced per week

Objective Function: Max Z = 70x +50y

Subject to: 4x + 3y ≤ 240

2x + y ≤ 100
x, y ≥ 0
 Vertices: (50, 0): 70(50) +50(0) = 3,500
(30,40): 70(30) + 50(40) = 4,100
(0, 80): 70(0) + 50(80) = 4,000
Decision: x = 30
y = 40
Min C = 320,000

TO BE DISCUSSED BY THE PROFESSOR NEXT MEETING:

Four Special Cases in LP
Four special cases and difficulties arise at times when using the graphical approach to
solving LP
(1) Infeasibility,
Lack of a feasible solution region can occur if constraints conflict with one another.
To illustrate, let us consider the following three constraints:
X1 +2X2 ≤ 6
2X1 + X2 ≤ 8
X1 ≥ 7
As seen in Figure C1, there is no feasible solution region for this LP problem because of
the presence of conflicting constraints.
 FIGURE C1: A Problem with No Feasible Solution

(2) Unboundedness,
When the profit in a maximization problem can be infinitely large, the problem is
unbounded and is missing one or more constraints.
Let us consider a simple example to illustrate the situation. A firm has formulated the
following LP problem:

FIGURE C2: A Feasible Region that Is Unbounded to the Right

(3) Redundancy,
A redundant constraint is one that does not affect the feasible solution region. Let’s
look at the following example of an LP problem with three constraints:

FIGURE C3: Problem with a Redundant Constraint

(4) Alternate optimal

An LP problem may, on occasion, have two or more alternate optimal solutions.
Consider the LP Model below:
 FIGURE C4: Example of Alternate Optimal Solutions

Generalization
Let us now summarize our lesson today by answering the following guide questions:
1. What is linear programming?
2. What are the components of an LP model?
3. How do we solve an LP problem?
4. What are the steps in solving LP problems using graphical method?

References

Render, Barry, Stair, Ralph Jr. and Hanna, Michael, Quantitative Analysis for
Management: Global Edition,11th Edition Pearson Education Inc, 2012

Hillier, Frederick and Lieberman, Gerald. Introduction to Operations Research. 7 th

edition, McGraw-Hill Co. Inc.2001

Wayne, Winston. Operations Research: Applications and Algorithms. 4 th edition, 2003