Linear Programming

GRAPHICAL METHOD
Lecture Outline

 Model Formulation: Maximization

 Linear Programming Model:
 Graphical Solution Method
Linear Programming (LP)

A model consisting of linear relationships

representing a firm’s objective and resource
constraints
LP is a mathematical modeling technique
used to determine a level of operational
activity in order to achieve an objective,
subject to restrictions called constraints
LINEAR PROGRAM MODEL
- Formulation
 Identify the decision variables and assign symbols
x and y to them. These decision variables are
those quantities whose values we wish to
determine.
 Identify the objective function and express it as a
linear function of decision variables. It might take
the form of maximizing profit or production or
minimizing cost.
 Identify the set of constraints and express them as
linear equations/inequations in terms of the
decision variables. These constraints are the
given conditions.
 Add the non-negativity restrictions on the
decision variables, as in the physical problems,
negative values of decision variables have no
valid interpretation.
LP Model Formulation
 Decision variables
 mathematical symbols representing levels of activity of an
operation
 Objective function
 a linear relationship reflecting the objective of an operation
 most frequent objective of business firms is to maximize profit
 most frequent objective of individual operational units (such as
a production or packaging department) is to minimize cost
 Constraint
 a linear relationship representing a restriction on decision
making
 NON-NEGATIVITY CONSTRAINT – negative values of decision
variables are unacceptable.
LP Model Formulation
 Constraint
 a linear relationship representing a restriction on decision
making
 NON-NEGATIVITY CONSTRAINT – negative values of decision
variables are unacceptable.
 LP Example 1 (Maximization)
 01. In the production of 2 types of toys :
Optimus Prime and Bumble Bee. A factory uses
3 machines A, B and C. The time required to
produce Optimus Prime is 6 hours, 8 hours and
12 hours in machines A, B and C respectively.
The time required to make Bumble Bee is 8
hours, 4 hours and 4 hours in machines A, B
and C respectively. The maximum available
time (in hours) for the machines A, B, C are
380, 300 and 404 respectively. The profit on the
first type of toy is 5 dollars while that on the
second type of toy is 3 dollars. Find the
number of toys of each type that should be
produced to get maximum profit.
 STEP 1: FORMULATION

Find the  A. DECISION VARIABLES

number of  Let x = number of Optimus
toys of each Prime to be produced to
type that maximize profit.
should be
produced to Let y = number of Bumble
get maximum Bee to be produced to
profit. maximize profit.
OBJECTIVE FUNCTION?

The profit on the first type of toy is 5 dollars

while that on the second type of toy is 3
dollars.

B. OBJECTIVE FUNCTION:
Maximize Z = 5x + 3y
CONSTRAINTS?
The time required to produce Optimus Prime is 6
hours, 8 hours and 12 hours in machines A, B and
C respectively. The time required to make Bumble
Bee is 8 hours, 4 hours and 4 hours in machines A,
B and C respectively. The maximum available
time (in hours) for the machines A, B, C are 380,
300 and 404 respectively.
CONSTRAINTS?

C. Machine A - 6x + 8y < 380

Machine B - 8x + 4y < 300
Machine C - 12x + 4y < 404
NNC - x, y > 0
 LP Example 2 (Maximization)
A firm manufactures 2 products, A and B.
Each product is processed by machines, M1
and M2. Each unit of Product A requires 1
hour of processing by M1 and 2 hours in M2
and each unit of Product B requires 4 hours
on M1 and 1 hour on M2. The profit on
product A is Php20 per unit on product B is
Php30 per unit. If M1 is available for 200 hours
each month and M2 for 300 hours, how many
units of each type can be manufactured in
one month in order to maximize the profits?
 STEP 1: FORMULATION

How many  A. DECISION VARIABLES

units of each  Let x = number of Product
type can be A to be produced to
manufacture maximize profit.
d in one
month in Let y = number of
order to Product B to be produced
maximize the to maximize profit.
profits?
OBJECTIVE FUNCTION?

The profit on product A is Php20 per unit on

product B is Php30 per unit.

B. OBJECTIVE FUNCTION:
Maximize Z = 20x + 30y
CONSTRAINTS?
Each product is processed by machines, M1 and
M2. Each unit of product A requires 1 hour of
processing by M1 and 2 hours in M2 and each unit
of product B requires 4 hours on M1 and 1 hour on
M2.
M1 is available for 200 hours each month and M2 for
300 hours

CONSTRAINTS PRODUCT A PRODUCT B Available Hours

(in hours) (in hours)
MACHINE 1 1 4 200
MACHINE 2 2 1 300
CONSTRAINTS?
CONSTRAINTS PRODUCT A PRODUCT B Available Hours
(in hours) (in hours)

MACHINE 1 1 4 200

MACHINE 2 2 1 300

C. Machine 1 - x + 4y < 200

Machine B - 2x + y < 300
NNC - x, y > 0
 TRY
EXAMPLE 3 AND 4 ON
YOUR OWN
LP Example 3 (Maximization)

 Dimensions, Ltd. makes two products, tables and

chairs which must be processed through assembly
and finishing departments. Assembly has 60 hours
available per week; finishing can handle up to 48
hours of work a week. Manufacturing one table
requires 4 hours in assembly and 2 hours in finishing.
Each chair requires 2 hours in assembly and 4 hours
in finishing. If profit is P8 per table and P6 per chair,
the problem is to determine the best possible
combination of tables and chairs to produce and
sell in order to realize the maximum profit.
LP Example 4 (Maximization)

 A steel producer makes 2 types of steel: regular and

special steel. A ton of regular steel requires 2 hours
in the open-hearth furnace and 3 hours in the
soaking pit. A ton of special steel requires 2 hours in
the open-hearth furnace and 5 hours in the soaking
pit. The open-hearth furnace is available 8 hours per
day and the soaking pit is available 15 hours per
day. The profit on a ton of regular steel is 4000 and
6000 on special steel. Determine how many tons of
each type of steel should be made to maximize the
profit considering that demand on regular steel is at
least 1 ton.
 DO NOT MOVE ON TO THE NEXT
SLIDE IF YOU ARE NOT YET
DONE WITH THE PRACTICE
PROBLEMS.
LP Example 3
 A. DECISION VARIABLES
Let x = number of tables to be produced
to maximize profit.
Let y = number of chairs to be produced
to maximize profit.
 B. OBJECTIVE FUNCTION:
Maximize Z = 8x + 6y
 C. CONSTRAINTS
Assembly - 4x + 2y < 60
Finishing - 2x + 4y < 48
NNC - x, y > 0
LP Example 4
 A. DECISION VARIABLES
Let x = number of regular steel to be
produced to maximize profit.
Let y = number of special steel to be
produced to maximize profit.
 B. OBJECTIVE FUNCTION:
Maximize Z = 4000x + 6000y
 C. CONSTRAINTS
Open hearth: 2x + 2y ≤ 8
Soaking pit: 3x + 5y ≤ 15
Demand: x≥1
NNC: x, y > 0