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Contents
Question ..................................................................................................................................... 3
Solution: ..................................................................................................................................... 3
Formulation of linear programming model............................................................................ 3
1. Objective of Problem: ..................................................................................................... 3
2. Decision Variables: ......................................................................................................... 3
3. Objective Function: ......................................................................................................... 4
4. Describe Constraints: ...................................................................................................... 4
5. Constraints: ..................................................................................................................... 4
6. Non-negativity Constraints: ............................................................................................ 4
Graphical Method: ................................................................................................................. 5
Graph Plotting: ....................................................................................................................... 6
Assumptions of Linear Programming ........................................................................................ 8
Advantages of linear programming ........................................................................................... 9
Limitations of linear programming .......................................................................................... 10
Applications of LPP ................................................................................................................. 11

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Question

The ABC Company has been a producer of picture tubes for television sets and certain printed
circuits for radios. The company has just expanded into full scale production and marketing of
AM and AM-FM radios. It has built a new plant that can operate 48 hours per week. Production
of an AM radio in the new plant will require 2 hours and production of an AM-FM radio will
require 3 hours. Each AM radio will contribute Rs 40 to profits while an AM-FM radio will
contribute Rs 80 to profits. The marketing department, after extensive research has determined
that a maximum of 15 AM radios and 10 AM-FM radios can be sold each week.

(1) Formulate a linear programming model to determine the optimum production mix of AM
and FM radios that will maximize profits.

(2) Solve this problem using the graphical method and explain the solution.

(3) Discuss about the Assumption, advantages and limitations of LPP.

(4) Discuss 2 problems where LPP could be applicable.

Solution:
Formulation of linear programming model

1. Objective of Problem:

To determine the optimum production mix of AM and FM radios that will maximize profits.

2. Decision Variables:

Let’s consider the following decision variables

X = Number of units of AM radio
Y = Number of units of AM-FM radio to be manufactured

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 3. Objective Function:

LPP model of the given problem is, we have to maximize the profit of AM and AM-FM production mix.
Maximize (Total Profit) Z = 40X + 80Y

4. Describe Constraints:

• As per given information in problem, the newly built manufacturing plant of radio can
operate only for 48 hours per week.
• The production of AM radio in the new plant requires 2 hours and production of an AM-
FM radio requires 3 hours.
• According to marketing unit they can only sell 10 AM-FM radios and 15 AM Radios
each week.

5. Constraints:

(i) Plant: 2X + 3Y ≤ 48,

(ii) AM radio: X ≤ 15,
(iii) AM-FM radio: Y≤ 10

6. Non-negativity Constraints:

As we know manufacturing of AM radio and AM-FM radio units cannot be negative.

AM radio production cannot be zero X ≥ 0,
AM-FM radio production cannot be zero Y ≥ 0,

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Graphical Method:

Convert inequalities of constraints into equalities,

1. Plant: 2X + 3Y = 48,
2. AM radio: X + 0Y = 15,
3. AM-FM radio: 0X + Y = 10

1. 2X + 3Y = 48
If X = 0, then Y = 16
If Y = 0, then X = 24
Hence the line passing through the points,
(0,16), (24,0)

2. X + 0Y = 15,
Therefore, coordinate is (15, 0)

3. 0X + Y = 10
Therefore, coordinate is (0, 10)

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Graph Plotting:

The coordinates of extreme points of the feasible region are: O (0, 0), A (0, 10), B (9, 10), C (15, 6) and D
(15, 0). The value of objective function at each of corner (or extreme) points is,
Extreme Points Coordinates
O (0,0)
A (0,10)
B (9,10)
C (15,6)
D (15,0)

Objective Function Z = 40X + 80Y

Objective function (Z) value at point O (0,0),
Z = 40(0) + 80 (0)
Z=0

Objective function (Z) value at point A (10,0),

Z = 40(10) + 80 (0)
Z = 400
Objective function (Z) value at point B (9,10),
Z = 40(9) + 80 (10)
Z = 360 + 800
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 Z = 1160
Objective function (Z) value at point C (15,6),
Z = 40(15) + 80 (6)
Z = 600 + 480
Z = 1080
Objective function (Z) value at point C (15,0),
Z = 40(15) + 80 (0)
Z = 600 + 0
Z = 600
Since the maximum value of the objective function Z = 1,160 occurs at the extreme point (9, 10),
the optimum solution to the given LP problem is: X = 9, Y = 10 and Max. Z = Rs 1,160.

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Assumptions of Linear Programming

1. Conditions of Certainty:

It means that numbers in the objective and constraints are known with certainty and do change during the
period being studied.

2. Linearity or Proportionality:

We also assume that proportionality exits in the objective and constraints. This means that if production of 1
unit of product uses 6 hours, then making 10 units of that product uses 60 hours of the resources.

3. Additively:

It means that total of all activities quails the sum of each individual activity. In other words there is no
interaction among all the activities of the resources.

4. Divisibility:

We make the divisibility assumption that solution need to be in whole numbers (integers). Instead, they are
divisible and may take any fractional value, if product cannot be produced in fraction, and integer
programming problem exists.

5. Non-negative variable:

In LP problems we assume that all answers or variables are non-negative. Negative values of physical
quantities are an impossible situation. You simply cannot produce a negative number of cloths, furniture,
computers etc.

6. Finiteness:

An optimal solution cannot compute in the situation where there is infinite number of alternative activities
and resources restriction.

7. Optimality:

In linear programming problems of maximum profit solution or minimum cots solution always occurs at a
corner point of the set of the feasible solution.

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Advantages of linear programming

Following are certain advantages of linear programming:

1. Linear programming helps in attaining the optimum use of productive resources. It also indicates how
a decision-maker can employ his productive factors effectively by selecting and distributing
(allocating) these resources.
2. Linear programming techniques improve the quality of decisions. The decision-making approach of
the user of this technique becomes more objective and less subjective.
3. Linear programming techniques provide possible and practical solutions since there might be other
constraints operating outside the problem which must be taken into account. Just because we can
produce so many units docs not mean that they can be sold. Thus, necessary modification of its
mathematical solution is required for the sake of convenience to the decision-maker.
4. Highlighting of bottlenecks in the production processes is the most significant advantage of this
technique. For example, when a bottleneck occurs, some machines cannot meet demand while other
remains idle for some of the time.
5. Linear programming also helps in re-evaluation of a basic plan for changing conditions. If conditions
change when the plan is partly carried out, they can be determined to adjust the remainder of the plan
for best results.

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Limitations of linear programming

• There should be an objective which should be clearly identifiable and measurable in quantitative terms.
It could be, for example, maximisation of sales, of profit, minimisation of cost, and so on, which is not
possible in real life.
• The activities to be included should be distinctly identifiable and measurable in quantitative terms, for
instance, the products included in a production planning problem and all the activities can’t be
measured in quantitative terms for example if labour is sick, which will decrease his performance
which can’t be measured.
• The resources of the system which arc to be allocated for the attainment of the goal should also be
identifiable and measurable quantitatively. They must be in limited supply. The technique would
involve allocation of these resources in a manner that would trade off the returns on the investment of
the resources for the attainment of the objective.
• The relationships representing the objective as also the resource limitation considerations, represented
by the objective function and the constraint equations or inequalities, respectively must be linear in
nature, which is not possible.
• There should be a series of feasible alternative courses of action available to the decision makers,
which are determined by the resource constraints.
• While solving an LP model, there is no guarantee that we will get integer valued solutions.
• Linear programming model does not take into consideration the effect of time and uncertainty. Thus,
the LP model should be defined in such a way that any change due to internal as well as external factors
can be incorporated.
• Sometimes large-scale problems can be solved with linear programming techniques even when
assistance of computer is available. For it, the main problem can be fragmented into several small
problems and solving each one separately.
• Parameters appearing in the model are assumed to be constant but in real-life situations, they are
frequently neither known nor constant.
• Parameters like human behaviour, weather conditions, stress of employees, demotivated employee
can’t be taken into account which can adversely effect any organisation
• Only one single objective is dealt with while in real life situations, problems come with multi-
objectives.

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Applications of LPP

1. Media selection

Linear programming technique helps in determining the advertising media mix so as to maximise the effective
exposure, subject to limitation of budget, specified exposure rates to different market segments, specified
minimum and maximum number of advertisements in various media. Example: Travelling salesman problem.
The problem of salesman is to find the shortest route from a given city, visiting each of the specified cities
and then returning to the original point of departure, provided no city shall be visited twice during the tour.
Such type of problems can be solved with the help of the modified assignment technique.

2. Airline Scheduling:

Airlines use techniques that include and are related to linear programming to schedule their aircrafts to flights
on various routes, and to schedule crews to the flights. In addition, airlines also use linear programming to
determine ticket pricing for various types of seats and levels of service or amenities, as well as the timing at
which ticket prices change.

The process of scheduling aircraft and departure times on flight routes can be expressed as a model that
minimizes cost, of which the largest component is generally fuel costs.

Constraints involve considerations such as:

• Each aircraft needs to complete a daily or weekly tour to return to its point of origin.
• Scheduling sufficient flights to meet demand on each route.
• Scheduling the right type and size of aircraft on each route to be appropriate for the route and for the
demand for number of passengers.
• Aircraft must be compatible with the airports it departs from and arrives at - not all airports can handle
all types of planes.

A model to accomplish this could contain thousands of variables and constraints. Highly trained analysts
determine ways to translate all the constraints into mathematical inequalities or equations to put into the model.

After aircraft are scheduled, crews need to be assigned to flights. Each flight needs a pilot, a co-pilot, and
flight attendants. Each crew member needs to complete a daily or weekly tour to return back to his or her
home base. Additional constraints on flight crew assignments consider factors such as:

• Pilot and co-pilot qualifications to fly the particular type of aircraft they are assigned to

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 • Flight crew have restrictions on the maximum amount of flying time per day and the length of
mandatory rest periods between flights or per day that must meet certain minimum rest time
regulations.
• Numbers of crew members required for a particular type or size of aircraft.

When scheduling crews to flights, the objective function would seek to minimize total flight crew costs,
determined by the number of people on the crew and pay rates of the crew members. However, the cost for
any particular route might not end up being the lowest possible for that route, depending on tradeoffs to the
total cost of shifting different crews to different routes.

An airline can also use linear programming to revise schedules on short notice on an emergency basis when
there is a schedule disruption, such as due to weather. In this case the considerations to be managed involve:

• Getting aircrafts and crews back on schedule as quickly as possible

• Moving aircraft from storm areas to areas with calm weather to keep the aircraft safe from damage and
ready to come back into service as quickly and conveniently as possible
• Ensuring crews are available to operate the aircraft and that crews continue to meet mandatory rest
period requirements and regulations.

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