Introduction To Operations Research

2101-495 Advanced Topics in CE I
Introduction to Operations Research

Manoj Lohatepanont, Sc.D. Chulalongkorn University
Outline
Intro to Operations Research (OR)
Examples of OR Problems
Mathematical Programming
Linear Programming (LP)
Examples of LP Graphical solution to simple LP Excels Solver
Sensitivity Analysis
Chulalongkorn University Manoj Lohatepanont 2006 2
Operations Research
What is Operations Research?
During World War II, British (and later US) military leaders encountered several complex problems such as radar deployment, convoy management, etc. Research on Military Operations or Military Operations Research was given birth Later became known simply as Operations Research (OR)
Chulalongkorn University
Manoj Lohatepanont 2006
Operations Research
So what is OR?
the use of mathematical models in providing guidelines to managers for making effective decisions within the state of current information, or in seeking further information if current knowledge is insufficient to reach a proper decision.
Related Fields
Management Science, Decision Science, Systems Engineering, System Dynamics, etc.
Elements of OR
Mathematical Programming Game Theory Inventory Theory Project Scheduling Queuing Theory Simulation Forecasting
OR Applications
GPS Navigator (Shortest Path) Production Mix (Math Programming) Airline Revenue Management (Linear Programming) Portfolio Management (Math Programming) Customer Service Counter Design (Queuing Theory) Aircraft Landing Sequence (Queuing Theory)
Mathematical Model
What is a model?
Idealized representation of reality
Model airplanes, fashion models
What is a mathematical model?

Idealized representation of reality expressed in terms of mathematical symbols and expressions
F = ma, E = mc2
In this class, a mathematical model is:

System of equations and expressions that describe the essence of the problem
Mathematical Programming
What is Mathematical Programming?
An OR technique that solves problems in which an optimal value is sought subject to specified constraints. Mathematical programming models include for example:
Linear Programming (LP) Integer Programming (IP) Dynamic Programming (DP)
Math Programming & Optimization

The word "programming" does not specifically refer to computer programming. In fact, the term "mathematical programming" was coined before the word "programming" became closely associated with computer software. This confusion is sometimes avoided by using the term optimization as an approximate synonym for mathematical programming.
Source: Mathematical Programming Society
Linear Programming (LP)

What is a Linear Programming (LP)?
A linear programming (LP) is a model that seeks to maximize or minimize a linear objective function subject to a set of linear constraints.
Let us now construct our first LP
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Example: Galaxy Industries

Galaxy Industries produce two toy products:
Space Rays (S) Zappers (Z)
Profit per dozen of each product:

$8 for a dozen of Space Rays $5 for a dozen of Zappers
Thus, the mathematical expression (model) for Galaxy Industries profit can be written as: Profit = $8S+ $5Z Note that S and Z represent products sold in dozens.
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Resource Limitation
The following table describes resource required for each product and amount available per week Resource Space Ray Required (per dozen) Plastic (lb) Time (min)
Zapper (per dozen) 1 4
2 3
Amount of resource available 1000 2400
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Resource Limitation
From the previous table, we can formalize the information into the following mathematical expressions Plastic: Time: 2S + 1Z <= 1000 3S + 4Z <= 2400
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Additional Requirements
The total number of toys produced may not exceed 700 dozen per week (marketing limit) Marketing: S + Z <= 700 The number of Space Rays may not exceed the number of Zappers by more than 350 dozen per week Product Mix: S <= Z + 350 or S Z <= 350
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Physical Limitation
Galaxy Industries cannot produce negative number of toys Nonnegativity: S >= 0 Z >= 0
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Galaxy Industries Problem

Maximize Profit from its two products Subject to the following requirements
Amount of plastic available Amount of time available Marketing limit Product mix requirement Nonnegativity
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Galaxies Industries LP Model

Max Subject to: Plastic: Time: Marketing: S + Product Mix: Nonnegativity:
Profit = $8S+ $5Z 2S + 1Z <= 1000 3S + 4Z <= 2400 Z <= 700 S Z <= 350 S >= 0, Z >= 0
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LP Model Components
Decision Variables
Quantifiable decisions being considered S and Z in our model
Objective Function
Appropriate measure of performance (e.g., profit) described
Constraints
Any restrictions on the values that can be assigned to decision variables
LP Model Parameters
Objective Function Coefficients
Coefficients in the objective function
Constraint Matrix
Matrix containing the entire left-hand-side of the constraints
Right-Hand-Side (RHS)
Vector containing the right-hand-side values of the constraints
Constraints Sense
Equalities or inequalities of constraints
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Galaxies Industries Model

Max Profit = $8S+ $5Z Objective Function Subject to: Plastic: 2S + 1Z <= 1000 Time: 3S + 4Z <= 2400 Marketing: S +Constraint Z <= 700 RHS Matrix <= 350 Product Mix: S Z Nonnegativity: S >= 0 Z >= 0
Chulalongkorn University Manoj Lohatepanont 2006
Constraints Sense
Obj. Func. Coeff.
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LP Model Assumptions
Certainty
All parameters are fixed and known with certainty
Proportionality
The contribution of each activity to the value of the objective function and the constraint matrix coefficient is proportional to the level of activity
Additivity
Every function in an LP model is the sum of the individual contributions of the respective activities
Divisibility
Continuous level of activity allowed (non-discrete)
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Optimal Solution
How many dozens of Space Rays and Zappers should Galaxy Industries produce each week in order to maximize its expected profit? The level of production that maximize Galaxy Industries profit is called the optimal solution
An optimal solution is a feasible solution that has the most favorable value of the objective function
In this case, the most favorable value is the maximum
A feasible solution is a solution to the model that satisfies ALL constraints

Solution Approach
A few approaches are available
Trial-and-Error Graphical Solution Solvers
Trial-and-Error
Take time Difficult to prove optimality
Graphical Solution
Pros
Easy to interpret and understand Easy to prove optimality
Cons
Slow and inefficient Cannot accommodate beyond 2- or 3-dimensional problems
Plastic
Z 1000 950 900 850 800 750 700 650 600 550 500 450 400 350 300 250 200 150 100 50 0 Plastic: 2.0 S + 1.0 Z = 1000.0 0 27 54 81 108 135 162 189 216 243 270 297 324 351 378 405 432 459 486 513 540
Feasible Region:
The set of all points satisfying all constraints of the model
S
Plastic: 2.0S + 1.0Z <= 1000.0
Note: This figure already implies nonnegativity.
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Plastic + Time
Z 1000 950 900 850 800 750 700 650 600 550 500 450 400 350 300 250 200 150 100 Time: 3.0 S + 4.0 Z = 2400.0 50 0 Plastic: 2.0 S + 1.0 Z = 1000.0 0 27 54 81 108 135 162 189 216 243 270 297 324 351 378 405 432 459 486 513 540
Plastic: 2.0S + 1.0Z <= 1000.0 Time: 3.0S + 4.0Z <= 2400.0
With each added constraint, the feasible region can only get SMALLER or stay the same.
Plastic + Time + Marketing

Z 1000 950 900 850 800 750 700 650 600 550 500 450 400 350 300 250 200 Marketing: 1.0 S + 1.0 Z = 700.0 150 100 Time: 3.0 S + 4.0 Z = 2400.0 50 0 Plastic: 2.0 S + 1.0 Z = 1000.0 0 27 54 81 108 135 162 189 216 243 270 297 324 351 378 405 432 459 486 513 540
Plastic: 2.0S + 1.0Z <= 1000.0 Time: 3.0S + 4.0Z <= 2400.0 Marketing: 1.0S + 1.0Z <= 700.0
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Plastic + Time + Marketing + Mix

Z 1000 950 900 850 800 750 700 650 600 550 500 450 400 350 300 Mix: 1.0 S - 1.0 Z = 350.0 250 200 Marketing: 1.0 S + 1.0 Z = 700.0 150 100 Time: 3.0 S + 4.0 Z = 2400.0 50 0 Plastic: 2.0 S + 1.0 Z = 1000.0 0 27 54 81 108 135 162 189 216 243 270 297 324 351 378 405 432 459 486 513 540
Plastic: 2.0S + 1.0Z <= 1000.0 Time: 3.0S + 4.0Z <= 2400.0 Marketing: 1.0S + 1.0Z <= 700.0 Mix: 1.0S - 1.0Z <= 350.0
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Galaxy Industries Feasible Region

Z 600 570 540 510 480 450 420 390 360 330 300 270 240 210 180 150 120 90 60 30 0 0 22 44 66 88
Feasible Region:
The set of all points satisfying all constraints of the model
110 132 154 176 198 220 242 264 286 308 330 352 374 396 418 440 S
A feasible solution always resides in the feasible region.

Finding the Optimal Solution

Z 600 570 540 510 480 450 420 390 360 330 300 270 240 210 180 150 120 90 60 30 0 Payoff: 8.0 S + 5.0 Z = 1000.0 0 22 44 66 88 110 132 154 176 198 220 242 264 286 308 330 352 374 396 418 440
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Z 600 570 540 510 480 450 420 390 360 330 300 270 240 210 180 150 120 90 60 30 0 Payoff: 8.0 S + 5.0 Z = 3000.0 0 22 44 66 88 110 132 154 176 198 220 242 264 286 308 330 352 374 396 418 440
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Z 600 570 540 510 480 450 420 390 360 330 300 270 240 210 180 150 120 90 60 30 0 Payoff: 8.0 S + 5.0 Z = 5000.0 0 22 44 66 88 110 132 154 176 198 220 242 264 286 308 330 352 374 396 418 440
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Payoff: 8.0 S + 5.0 Z = 4360.0 Z 600 570 540 510 480 450 420 390 360 330 300 270 240 210 180 150 120 90 60 30 0 0 22 44 66 88 110 132 154 176 198 220 242 264 286 308 330 352 374 396 418 440 S
Optimal Decisions(S,Z): (320.0, 360.0) Plastic: 2.0S + 1.0Z <= 1000.0 Time: 3.0S + 4.0Z <= 2400.0 Marketing: 1.0S + 1.0Z <= 700.0 Mix: 1.0S - 1.0Z <= 350.0
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Optimal Solution Found

Payoff: 8.0 S + 5.0 Z = 4360.0 Z 600 570 540 510 480 450 420 390 360 330 300 270 240 210 180 150 120 90 60 30 0 0
(320, 360)
Optimal Solution for THIS obj. func. is: 320 dozens of Space Rays 360 dozens of Zappers
22 44 66 88 110 132 154 176 198 220 242 264 286 308 330 352 374 396 418 440 S Optimal Decisions(S,Z): (320.0, 360.0) Plastic: 2.0S + 1.0Z <= 1000.0 Time: 3.0S + 4.0Z <= 2400.0 Marketing: 1.0S + 1.0Z <= 700.0 Mix: 1.0S - 1.0Z <= 350.0
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IF Objective Function Changes

Payoff: 8.0 S + 1.0 Z = 3700.0 Z 600 570 540 510 480 450 420 390 360 330 300 270 240 210 180 150 120 90 60 30 0
0 22 44 66 88 Optimal Decisions(S,Z): (450.0, 100.0) Plastic: 2.0S + 1.0Z <= 1000.0 Time: 3.0S + 4.0Z <= 2400.0 Marketing: 1.0S + 1.0Z <= 700.0 Mix: 1.0S - 1.0Z <= 350.0
(450, 100)
110 132 154 176 198 220 242 264 286 308 330 352 374 396 418 440
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Or Another Objective Function

(0, 600)
Z 600 Payoff: 3.0 S + 7.0 Z = 4200.0 570 540 510 480 450 420 390 360 330 300 270 240 210 180 150 120 90 60 30 0 0 22 44 66 88 110 132 154 176 198 220 242 264 286 308 330 352 374 396 418 440
Optimal Decisions(S,Z): ( 0.0, 600.0) Plastic: 2.0S + 1.0Z <= 1000.0 Time: 3.0S + 4.0Z <= 2400.0 Marketing: 1.0S + 1.0Z <= 700.0 Mix: 1.0S - 1.0Z <= 350.0
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Property of Optimal Solution

If an optimal solution exists, it must be at one of the extreme/corner points of the feasible region
(0, 600)
Z 600 570 540 510 480 450 420 390 360 330 300 270 240 210 180 150 120 90 60 30 0 0
(320, 360) (450, 100) (0, 0)

22 44 66 88
(350, 0)
110 132 154 176 198 220 242 264 286 308 330 352 374 396 418 440 S
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Multiple Optimal Solutions

Payoff: 2.0 S + 1.0 Z = 1000.0 Z 600 570 540 510 480 450 420 390 360 330 300 270 240 210 180 150 120 90 60 30 0
(320, 360)
Optimal Solutions for THIS obj. func. are (450, 100) all points satisfying equation 2S + 1Z = 1000 in ranges of [320,450] Space Rays and [100,360] Zappers
0 22 44 66 88 110 132 154 176 198 220 242 264 286 308 330 352 374 396 418 440 S Optimal Decisions(S,Z): (320.0, 360.0) (450.0, 100.0) Plastic: 2.0S + 1.0Z <= 1000.0 Time: 3.0S + 4.0Z <= 2400.0 Marketing: 1.0S + 1.0Z <= 700.0 Mix: 1.0S - 1.0Z <= 350.0
Note optimal solutions also contain extreme/corner points.

Infeasible Problem
Payoff: 8.0 S + 5.0 Z = 4360.0 Z 600 570 540 510 480 450 420 390 360 330 300 270 240 210 180 150 120 90 60 30 0 0 22 44 66 88 110 132 154 176 198 220 242 264 286 308 330 352 374 396 418 440 S
Optimal Decisions(S,Z): (320.0, 360.0) Plastic: 2.0S + 1.0Z <= 1000.0 Time: 3.0S + 4.0Z <= 2400.0 Marketing: 1.0S + 1.0Z <= 700.0 Mix: 1.0S - 1.0Z <= 350.0 Crazy Manager: 0.0S + 1.0Z >= 650.0
An infeasible problem is one in which feasible region is of zero size.

Manoj Lohatepanont 2006 39
Unbounded Problem
Payoff: 8.0 S + 5.0 Z = 4360.0 Payoff: 2.0 S + 1.0 Z = 1000.0 Z Z 600 600 570 570 540 540 510 510 480 480 450 450 420 420 390 390 360 360 330 330 300 300 270 270 240 240 210 210 180 180 150 150 120 120 90 90 60 60 30 30 0 0 0 0 22 22 44 44 66 66 88 88 110 132 154 176 198 220 242 264 286 308 330 352 374 396 418 440 110 132 154 176 198 220 242 264 286 308 330 352 374 396 418 440 S S
Optimal Decisions(S,Z): (320.0, 360.0) (450.0, 100.0) Optimal Decisions(S,Z): (320.0, 360.0) Plastic: 2.0S + 1.0Z <= 1000.0 Time: 3.0S + 4.0Z <= 2400.0 Marketing: 1.0S + 1.0Z <= 700.0 Mix: 1.0S - 1.0Z <= 350.0 Mix: 1.0S - 1.0Z <= 350.0
Objective function can be increased (or decreased) indefinitely.

Constraints Sense
In mathematical programming, all constraints senses must be inclusive
That is it must be either =, <= or, >=. It cannot be < or >.
Consider a simple problem

Max X S.T. X < 5 X >= 0
Whats the optimal solution?

Solvers
Numerous commercial solvers are available for solving mathematical programming These solvers utilize advanced algorithms for solving mathematical programming, most notably of which is Simplex Algorithm, invented in 1947 by George Dantzig We will use Microsoft Excel extensively through out our class Other powerful solvers include for example:
CPLEX XPRESS
42
Excels Solver
Microsoft Excel has a standard component called Solver Excels Solver uses Simplex Algorithm to solve Math Programming problems We will now use Excel to solve our sample problem from last lecture
43
Model Components
Max Subject to: Plastic: Time: Marketing: S + Product Mix: Nonnegativity:
Profit = $8S+ $5Z 2S + 1Z <= 1000 3S + 4Z <= 2400 Z <= 700 S Z <= 350 S >= 0, Z >= 0
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Model Components
Max Profit = $8S+ $5Z Subject to: Plastic: 2S + 1Z <= 1000 Time: Decision Variables <= 2400 . Value 3S + 4Z Obj. Func Marketing: . Func. Coeff. 700 S + Z <= Obj Product Mix: S Z <= 350 RHS Constraint Matrix Nonnegativity: S >= 0, Z >= 0
Enter Parameters
46
Enter Objective Function
Obj. Func. Value
47
LP Model
48
Invoking Solver
If Solver does not exist, select Add-Ins and then check an empty box in front of Solver. Click OK.
49
Solver Window
50
Set Target Cell
51
Enter Decision Variables
52
Enter Constraints
53
Add Constraints
54
Options
55
Ready to Solve
56
Done!
57
View Solution
58
Verify Solution
Payoff: 8.0 S + 5.0 Z = 4360.0 Z 600 570 540 510 480 450 420 390 360 330 300 270 240 210 180 150 120 90 60 30 0
(320, 360)
0 22 44 66 88 110 132 154 176 198 220 242 264 286 308 330 352 374 396 418 440 S Optimal Decisions(S,Z): (320.0, 360.0) Plastic: 2.0S + 1.0Z <= 1000.0 Time: 3.0S + 4.0Z <= 2400.0 Marketing: 1.0S + 1.0Z <= 700.0 Mix: 1.0S - 1.0Z <= 350.0
59
Select Detailed Report
60
Detailed Report
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Binding Constraints
Payoff: 8.0 S + 5.0 Z = 4360.0 Z 600 570 540 510 480 450 420 390 360 330 300 270 240 210 180 150 120 90 60 30 0
Time (320, 360)
Plastic Optimal solution is restricted or constrained by binding constraints.

All other constraints are non-binding.
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Sensitivity Analysis
In reality, oftentimes the parameters are not known with certainty Sensitivity analysis attempts to answer what-if questions when one of the parameters change within certain boundary There are 2 major types of sensitivity analysis:
Sensitivity of objective function coefficients Sensitivity of RHS coefficients
63
Performing Sensitivity Analysis in Microsoft Excel
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Sensitivity Report
65
Range of Optimality
Range of optimality is the range of values for an objective function coefficient in which the optimal solution remains unchanged No other simultaneous changes are allowed The optimal solution remains unchanged BUT the objective function value changes
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Range of Optimality
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Sensitivity of Objective Function Coefficient

Payoff: 8.0 S + 5.0 Z = 4360.0 Z 600 570 540 510 480 450 420 390 360 330 300 270 240 210 180 150 120 90 60 30 0
(320, 360)
Original optimal solution.
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Space Rays Profit Change

Payoff: 8.0 S + 5.0 Z = 4360.0 Z 600 570 540 510 480 450 420 390 360 330 300 270 240 210 180 150 120 90 60 30 0 0
3.75 S + 5 Z = 3000
(320, 360)
10 S + 5 Z = 5000
22 44 66 88 110 132 154 176 198 220 242 264 286 308 330 352 374 396 418 440 S
Space Rays profit can change from $3.75 to $10 without affecting original optimal solution.
Zappers Profit Change

Payoff: 8.0 S + 5.0 Z = 4360.0 Z 600 570 540 510 480 450 420 390 360 330 300 270 240 210 180 150 120 90 60 30 0 0
8 S + 10.67 Z = 6402
(320, 360)
8 S + 4 Z = 4000
22 44 66 88 110 132 154 176 198 220 242 264 286 308 330 352 374 396 418 440 S
Zappers profit can change from $4 to $10.67 without affecting original optimal solution.
Reduced Cost
Reduced cost of a variable is the amount the objective function coefficient has to change before that variable becomes part of the optimal solution
If there are no upper bounds
Variables that have non-zero values in the optimal solution (i.e., is part of the solution), will have zero reduced costs Variables that have zero values (i.e., is NOT part of the solution) in the optimal solution, may have non-zero reduced costs
Reduced Cost
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Sensitivity of RHS Coefficient

Shadow Price
Shadow price of a constraint is the change to the objective function value per unit change of its RHS coefficient
Range of Feasibility
Range of feasibility of a constraint is the range in which its RHS coefficient can vary without affecting its shadow price
Note that when RHS changes, the optimal solution changes

Shadow Price & Range of Feasibility
74
Original Optimal Solution

Payoff: 8.0 S + 5.0 Z = 4360.0 Z 600 570 540 510 480 450 420 390 360 330 300 270 240 210 180 150 120 90 60 30 0 0 22 44 66 88 110 132 154 176 198 220 242 264 286 308 330 352 374 396 418 440 S
From solver, this constraint has a shadow price of $3.4 and range of feasibility from 400 to +100.
If Plastic Availability Increases

Payoff: 8.0 S + 5.0 Z = 4700.0 Z 600 570 540 510 480 450 420 390 360 330 300 270 240 210 180 150 120 90 60 30 0 0 22 44 66 88 110 132 154 176 198 220 242 264 286 308 330 352 374 396 418 440 S
Optimal Decisions(S,Z): (400.0, 300.0) Plastic: 2.0S + 1.0Z <= 1100.0 Time: 3.0S + 4.0Z <= 2400.0 Marketing: 1.0S + 1.0Z <= 700.0 Mix: 1.0S - 1.0Z <= 350.0 : 2.0S + 1.0Z <= 1000.0
An increase of 100 in the RHS coefficient leads to an increase of $3.4 * 100 = $340 in objective function value.
Sensitivity Analysis Summary

Objective Function Coefficient
Reduced Cost
amount the objective function value will change per one unit increase of a variable
Range of Optimality
range of values for an objective function coefficient in which the optimal solution remains unchanged
RHS Coefficient
Shadow Price
change to the objective function value per unit change of a constraints RHS coefficient
Range of Feasibility
range in which a constraints RHS coefficient can vary without affecting its shadow price
Other Post-Optimality Changes

Addition of a Constraint
Check feasibility of the current optimal solution
If feasible, the current solution remains optimal If infeasible, re-optimization is required
The solution CANNOT be better than the current solution. Why?
78

Deletion of a Constraint
Check binding condition of the current optimal solution
If non-binding, the current solution remains optimal If binding, re-optimization is required
The solution CANNOT be worse than the current solution. Why?
79

Deletion of a Variable
Check whether the variable has a non-zero value in the current optimal solution
If it is zero, the current solution remains optimal If it is non-zero, re-optimization is required
The solution CANNOT be better than the current solution. Why?
80

Addition of a Variable
Compute Reduced Cost of the new variable Beyond the scope of this class Re-Optimization recommended
Changes in the constraint matrix

The feasible region changes as a result of changes in the constraint matrix It is oftentimes easier to re-optimize the problem
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Galaxy Industries Expansion Plan

2 New Products
Big Squirts (B) Soakers (X) Product Space Rays (S) Zappers (Z) Big Squirts (B) Soakers (X) Profit $16 $15 $20 $22 Available
Profit margins change Additional Plastic & Time available

Plastic (lb) 2 1 3 4 3000 Production Time (min) 3 4 5 6 40 hrs
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Galaxy Industries Expansion Plan

Overtime is available for $180 an hour
32 Overtime Hours Maximum
Galaxy is required to supply at least 200 Zappers to its distributor each week Marketing Requirements
Total production must exceed 1000 dozens Space Ray should account for exactly 50% of total production, and No other models should account for more than 40% of total production
Galaxies Industries LP Model

Max Profit = $16S+ $15Z + $20B +$22X -180OT Subject to: Plastic: 2S + 1Z +3B + 4X <= Time: 3S + 4Z +5B + 6X 60OT <= Z >= S + Z + B + X TOTAL = S -0.5 TOTAL = Z -0.4 TOTAL <= B -0.4 TOTAL <= X -0.4 TOTAL <= TOTAL >= OT <= S, Z, B, X, OT, TOTAL >= 3000 2400 200 0 0 0 0 0 1000 32 0
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Introduction To Operations Research

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2101-495 Advanced Topics in CE I

Introduction to Operations Research

Manoj Lohatepanont 2006

Manoj Lohatepanont 2006

Manoj Lohatepanont 2006

What is a mathematical model?

In this class, a mathematical model is:

Manoj Lohatepanont 2006

Math Programming & Optimization

Manoj Lohatepanont 2006

Linear Programming (LP)

Let us now construct our first LP

Manoj Lohatepanont 2006

Example: Galaxy Industries

Profit per dozen of each product:

Manoj Lohatepanont 2006

Zapper (per dozen) 1 4

Amount of resource available 1000 2400

Manoj Lohatepanont 2006

Manoj Lohatepanont 2006

Manoj Lohatepanont 2006

Manoj Lohatepanont 2006

Galaxy Industries Problem

Manoj Lohatepanont 2006

Galaxies Industries LP Model

Manoj Lohatepanont 2006

Manoj Lohatepanont 2006

Galaxies Industries Model

Obj. Func. Coeff.

Manoj Lohatepanont 2006

A feasible solution is a solution to the model that satisfies ALL constraints

Plastic: 2.0S + 1.0Z <= 1000.0

Note: This figure already implies nonnegativity.

Manoj Lohatepanont 2006

Plastic + Time + Marketing

Manoj Lohatepanont 2006

Plastic + Time + Marketing + Mix

Manoj Lohatepanont 2006

Galaxy Industries Feasible Region

A feasible solution always resides in the feasible region.

Finding the Optimal Solution

Manoj Lohatepanont 2006

Finding the Optimal Solution

Manoj Lohatepanont 2006

Finding the Optimal Solution

Manoj Lohatepanont 2006

Finding the Optimal Solution

Manoj Lohatepanont 2006

Optimal Solution Found

Manoj Lohatepanont 2006

IF Objective Function Changes

Manoj Lohatepanont 2006

Or Another Objective Function

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Property of Optimal Solution

(320, 360) (450, 100) (0, 0)

Manoj Lohatepanont 2006

Multiple Optimal Solutions

Note optimal solutions also contain extreme/corner points.

An infeasible problem is one in which feasible region is of zero size.

Objective function can be increased (or decreased) indefinitely.

Consider a simple problem