II.

Linear Programming
Meaning and mathematical formulation of
linear programming problems and their solution
using graphic and simplex methods.
Duality and dual simplex method.
Sensitivity analysis.
Application areas of Linear Programming.
Graphic method.
Simplex method.
Problems and Case Study Analysis
Definition of LP
Sharma S D, “The general linear
programming problem (LPP) calls for optimizing
(maximizing/minimizing) a linear function of
variables called the objective function subject to a
set of linear equations and / or inequalities called the
constraints or restrictions”.
Meaning of LP
Linear Programming (LP) is a mathematical programming technique to
optimize performance (e.g., profit or cost) under a set of resource constraints.
( materials, money, machine hours etc) It is widely used in business
organizations while allocating limited resources to maximize their utilization.

LPP is used to the following areas

Product mix problem

Cargo loading problem

Capital budgeting problem

Man power planning problem

Diet planning problem.

Assumptions in LP
1.Linearity/proportionality: The amount of resource
required for a given activity level is directly proportional
to the level of that activity. For example, if the number of
hours required on a machine is 5 hours per unit, then the
total number of hours required to produce 10 units is 50
hours.

2.Optimal solution: The best solution among the alternative

solutions is called OS. It is the point in the graph which
maximize profit or minimize cost.
3. Additivity: It means that each unit of recourse
can be used only for one activity and not for
multiple activities.
4. Divisibility: This means that fractional values of
the decision variables are permitted.

5. Non-negativity: This means that the decision

variables are permitted to have only the values
which are greater than or equal to zero.
3.Unbounded solution: For some LPM, the
objective function value can be
increased/decreased infinitely without any
limitation.
4. Infeasible Solution: If there is no combination
of the values of the decision variables satisfying
all the constraints of the LPM, then that model is
called as IS.
Properties of LPP
1. Feasible solution: If all the constraints of the LP
model are satisfied by the solution of the model, then
that solution is called as a feasible solution. Such
several solutions are possible for a given for LP model
(LPM)

2.Optimal solution: If there is other superior solution

to the solution obtained for a given LPM, then that
solution is treated as OS.
Applications of LP

1. Production planning & Scheduling: LP has been

used to solve business problems such deciding product
mix, product scheduling, staffing schedule etc.
2. Media selection: Advertising is the order of today.
LP is used by the marketing managers to allocate
budget among various advertising media such as news
papers, TV advertising.
3.Inventory management: Management always face
the problem of inventory control. LP helps the
management to minimize inventory costs.

4.Financial Applications: In the business problem, it

is the big struggle to decide sources & applications of
financial resource.

5. Minimizing the loss: LPM is helpful to minimize

the losses since an exercise is done with alternatives.
6.Man power scheduling: Service industries like
hospitals, transportation are extensively using the LPM.
7.Application in agriculture: Farmers use LPM for
optimum allocation of limited resources such as land,
labor, water supply etc to maximize revenue.

8. Military: LPM is applied in military for selection of

air weapon, bombs, army team etc.
Advantages of LP
1. LP is useful to obtain optimum use of productive
resources.

2.It improve the quality of decision making.

3.It generates large number of alternate solutions.

4.It also indicates the ideal capacity of the machines or

materials in a production process.

5.There is lots of flexibility. So, changes are allowed to

face challenges in the business field.
Limitations of LP
(Assumptions are main causes for limitations)

1.The LPM is applied only where there is linear between

objective function and constraints. But in practical field, we cant
assume the proportionality between objective function &
constraints.
2.Some real business problems are so much complicated.

3.LPM is applied only for mathematical model and not for

theoretical concepts.

4.LP deals with problems having single objective.

5.LP by nature can give both fractional as well as integer values.

Structure LP Model
1.Decision variables
The number of units to be produced are called as DV. These are denoted by X1, X2,
X3 ….Xn
2. Objective function – The main objective of LPM is to maximize profit or minimize
cost, time etc. this is denoted by Z.
3. Constraints – There are always certain limitations in every business. They are labor,
machine hour, RM, money etc. the solution of LPM must satisfy these constraints.
4. Non-negativity – there can be no negative production of units. Therefore we always
express

X1 ≥ 0, X2 ≥ 0 (Non-Negativity)
Methods of LP

1.Graphic method
2.Simplex method
3.Dual problem
Development of LP models

Modeling is an art. One can develop art

by seeing doing models.
e.g.,
Model creation examples
Problem No: 1
A company manufactures two types of products P1 &
P2. each product uses lathe & milling machine. The
processing time per unit of P1 on the lathe is 5 hours and
on the milling machine is 4 hours. The processing time
per unit of P2 on the lathe is 10 hours & on the milling
machine is 4 hours. The maximum number of hours
available per week on the lathe & the milling machine
are 60 hours & 40 hours respectively. Also profit per unit
of selling P1 & P2 are Rs. 6 & Rs 8 respectively.
Formulate LPM to determine the volume of each of the
products such that the total profit is maximized.
Let X1 be the number of P1 to be produced
Let X2 be the number of units P2 to be produced
Then
P1 P2 Requirements
Number of units X1 X2
84X1+2X2 80
Profit 4X1+2X2
0ooo (Rs) Z 6 80 8 Maximize
Lathe 5 10 ≤ 60
(Machine Hours
per unit)
Milling Machine 4 4 ≤ 40
(Machine Hours
per unit)
The LPP is
Z = 6X1+8X2 (Objectivity)
S.T. 5X1+10X2 ≤ 60
4X1+4X2 ≤40 (Constraints)
And

X1 ≥ 0, X2 ≥ 0 (Non-Negativity)
Model creation examples
Problem No: 2
A nutrition scheme for babies is proposed by a
committee of doctors. Babies can be given two types of
food (I & II) which are available in standard sized
packets weighing 50 grams. The cost per packet of
these foods are Rs. 2 & Rs 3 respectively. The vitamin
availability in each type of food per packet and the
minimum vitamin requirement for each type of vitamin
are summarized in table. Develop a LPM to determine
the optimum combination of food types with the
minimum cost such that the minimum requirement of
vitamin in each type is satisfied.
Table showing details of food
Minimum
Vitamin availability per daily
vitamin packet required
vitamin
Food type I Food type I

1 1 1 6

2 7 1 14

Cost per packet 2 3

(Rs)
The LPP is

Z = 2X1+3X2 (Objectivity)
S.T.
X1+X2 ≤ 6
7X1+1X2 ≤14 (Constraints)

And

X1 ≥ 0, X2 ≥ 0 (Non-Negativity)
Model creation examples
Problem No: 2
A nutrition scheme for babies is proposed by a
committee of doctors. Babies can be given two types of
food (I & II) which are available in standard sized
packets weighing 50 grams. The cost per packet of
these foods are Rs. 2 & Rs 3 respectively. The vitamin
availability in each type of food per packet and the
minimum vitamin requirement for each type of vitamin
are summarized in table. Develop a LPM to determine
the optimum combination of food types with the
minimum cost such that the minimum requirment of
vitamin in each type is satisfied.
Model creation examples
Problem No: 3
A firm produces an alloy having the following specifications. C
i) Specific gravity ≤ 0.98

ii) Chromium content ≥ 8%

iii) Melting point ≥ 4500 C
Raw materials A & B are used to produce the Alloy. Raw
material A has specific gravity 0.92, Chromium content 7%
and melting point 4400 C. raw material B has specific gravity
0.99, Chromium content 13% and melting point 4900 C. If Raw
mat. A costs Rs. 90 per kg and RM B costs Rs. 280 per kg,
find the ratio (proportion) at which the RMs should be blended
keeping cost in mind.
Table showing details
Requirement
RM
A B

No. of Units X1 X2

Cost per kg 90 280 Minimize

Specific gravity 0.92 .99 ≤ 0.98

Chromium content 7 13
≥ 8%

Melting point 4400 C 4900 C ≥ 4500 C

The LPP is

Z = 90X1+280X2 (Objectivity)
S.T.
0.92X1+0.99X2 ≤ 0.98
7X1+13X2 ≥ 8
440X1+490X2 ≥ 450 (Constraints)

And

X1 ≥ 0, X2 ≥ 0 (Non-Negativity)
Model creation examples
Problem No: 4
A person wants to decide the continents of a diet
which will fulfill his daily requirements of proteins,
fats and carbohydrates at minimum cost. The
combination is made among two food products whose
contents are indicated as below.
Table showing details
Cost / unit
Food Contents (Rs)

Proteins Fats carbohydra

tes
A 3 2 6 45

B 4 2 4 40

Minimum 800 200 700

requirement
The LPP is

Z = 45X1+40X2 (Objectivity)
S.T.
3X1+4X2 ≤ 800
2X1+2X2 ≤ 200
6X1+4X2 ≤ 700 (Constraints)

And

X1 ≥ 0, X2 ≥ 0 (Non-Negativity)
I. Graphical method of LPP
Graphic solution can be applied when the linear
programming problem involves only two variables. In
case the LPP has more than 2 variables, simplex
method is suggested. The main steps include
1.Formulation of LPP: The business problems are
not expressed in mathematical model. Therefore, the
problem has to be expressed in mathematical model
first. The conversion of theoretical problem into
mathematical model involves 3 steps.
Identification of objective function
Recognizing constraints
Specification of non-negativity constraints
I. Graphical method of LPP
2. Conversion of inequalities into equalities:
It is practice to express the unequal equation
in equal equation.
e.g.,
4X1+2X2 ≤ 80
2X1+5X2 ≤ 180 Into
4X1+2X2=80
2X1+5X2=180
Also find the values of X1 & X2 by assuming once X1 is
Zero and next X2 is Zero.
I. Graphical method of LPP
3. Plotting the values of X1 & X2
on graph
Both equations must be plotted on
the graph. We must connect the two
points by a straight line.
I. Graphical method of LPP
4. Finding out feasible area
A feasible solution zone is the area
which satisfies all the constraints
simultaneously. It fall bellow all
straight lines.
I. Graphical method of LPP
5. Determining the best or optimal solution:
This is the last step in graph method. After
ascertaining the feasibility region, the
combination of products X1 & X2 which gives
maximum profit is to be calculated. Here the
corner points have to be identified. Profit would
be maximum at any one of these points.