Introduction to Linear Programming

Problem
• Tools of operations research
– Scientific approach to decision making
– Used to manage scarce resources effectively
– George B Dantzig first paper was titled
“Programming in Linear Structure”
– Koopmans coined the term “Linear
Programming” in 1948
– Simplex Method was published by Dantzig in
1949

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Introduction to Linear Programming
Problem
• Linear programming
– Programming means planning
– Model contains linear mathematical
functions

• An application of linear programming

– Allocating limited resources among
competing activities in the best possible way

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Example 1: Product Mix Problem
• Consider a small toy manufacturer making two types
of dolls
• Two resources are required to make these dolls
• Each unit of doll 1 requires one unit of resource 1
and three units of resource 2
• Each unit of doll 2 requires one unit of resource 1
and two units of resource 2
• The manufacturer has 5 units of resource 1 and 12
units of resource 2 available with them
• They also make profit of Rs. 6 per unit of doll 1 sold
and Rs. 5 per unit of doll 2 sold Descriptive Problem
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Example 1: Product Mix Problem

Resources
R1 R2

Profit
X1 Rs. 6/-
per unit
Decision of
Variables product
X2 Rs. 5/-
sold

5 12
Resource
Availability

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Example 1: Product Mix Problem

X1: No. of units of doll type 1 produced Decision

X2: No. of units of doll type 2 produced Variables

Profit: Z = 6X1 + 5X2

Objective Function

Maximize Z = 6X1 + 5X2

St. X1 + X2 ≤ 5
3X1 + 2X2 ≤12 Constraints
X1, X2 ≥ 0

Mathematical Form

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Problem Formulation

Problem Formulation Step

- Identify decision variables

- Identify objective of an organization and write
the objective function
- Write the constraints
- Write the non-negativity restrictions

The objective function and the constraints are

linear function of decision variables

Therefore, the model we formulated is called the

linear programming problem (LPP)
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Linear Programming Problem (LPP)

A LPP always has

- A linear objective function

- Constraints are linear
- Non-negativity restrictions for all decision
variables (DV’s)

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Example 2: Production Planning Problem

• There is a company ‘XYZ’ that produces a single

type of product
• The forecasted demand for the product for the
next four months are 1000, 800, 1200 and 900
respectively
• The company has a regular capacity of
producing 800 units per month and an over time
capacity of producing 200 units per month
• The cost of regular time production is Rs. 20 per
unit and the cost of overtime production is Rs.
25 per unit
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Example 2: Production Planning Problem

• The company can produce more than the

demand and can carry inventory to the next
month to meet the consecutive month demand
• The holding cost or carrying cost or inventory
cost is Rs. 3 per unit per month
• The demand has to be met for every month
• Formulate a linear programming problem for this
situation

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Example 2: Production Planning Problem
Xj: quantity produced using regular time
production D
Yj: quantity produced using over time production V
Ij: quantity carried at the end of month ‘j’ to the ’s
next month

Production Cost: z = 20 σ4𝑗=1 Xj + 25 σ4𝑗=1 Yj +

3 σ3𝑗=1 Ij
Objective Function

Minimize z =20 σ4𝑗=1 Xj + 25 σ4𝑗=1 Yj + 3 σ3𝑗=1 Ij

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Example 2: Production Planning Problem

St. X1 + Y1 = 1000 + I1
I1 + X2 + Y2 = 800 + I2
I2 + X3 + Y3 = 1200 + I3
I3 + X4 + Y4 = 900 Constraints
Xj ≤ 800 for all ‘j’
Yj ≤ 200 for all ‘j’
Xj, Yj, Ij ≥ 0

In this problem we have 11 DV’s and 12

constraints
Mathematical Form
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Example 2: Production Planning Problem

Second Way of Formulation

• We can eliminate the inventory variable
St. X1 + Y1 ≥ 1000
(X1 + Y1 -1000) + X2 + Y2 ≥ 800
(X1 + Y1 + X2 + Y2 – 1800) + X3 + Y3 ≥ 1200
(X1 + Y1 + X2 + Y2 + X3 + Y3 – 3000) + X4 + Y4 ≥
900
Xj ≤ 800 for all ‘j’
Yj ≤ 200 for all ‘j’
Xj, Yj ≥ 0
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Example 2: Production Planning Problem

• We can eliminate the inventory variable

4 4
Minimize z = 20 𝑗=1 Xj + 25 𝑗=1 Yj + 3
σ σ
(X1 + Y1 – 1000) + 3 (X1 + Y1 + X2 + Y2 –
1800) + 3 (X1 + Y1 + X2 + Y2 + X3 + Y3 –
3000) + 3 (X1 + Y1 + X2 + Y2 + X3 + Y3 + X4 +
Y4 – 3900)
Note: It will not be present in the objective function if the
production and carrying inventory is exactly equal to the demand
of the fourth month, which is avoided to remain consistent with
the other constraints
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Example 2: Production Planning Problem

• This formulation has fewer number of variables

i.e. 8 decision variables in comparison of 11
DV’s (first formulation) and has 12 constraints
(same number of constraints)

• A formulation is superior if it has fewer number

of decision variables or constraints

• Also, constraints of inequalities type i.e. ‘≥’, ‘≤’ is

preferred over ‘=‘ equality in general
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