Kwara State University, Malete

Mechanical Engineering Department

MEE 532 OPERATION RESEARCH

Course Lecturer: Dr. K.O Oladosu

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 Introduction
Management should be trained in decision-making processes
and one of the decision making process is Operation
Research (OR)

OR is defined, as the quantitative study of an organization

and action carried out in order to find ways in which its
functioning can be improved

by OR techniques, data can be processed and result used to

aid the decision-making
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 Among the Scope of Operations Research

• Allocation of resources such as: man, machine,

material, money, time etc for achieving optimal goal

• Designing, selecting and location of sites.

• Determining the number and size in production

functions.

• Determining the optimum production mix

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 Phases of OR study
• Definition of the problem

• Construction of the linear programming model

- Identify the decision variables to be determined and

express them in terms of algebraic equations.

- Identify all the limitations or constraints in the given

problem and then express them as linear inequalities

- Identify the objective (criterion) which is to be

optimized (maximized or minimized )

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 • Solution of the model (graphical, simplex method etc)

• Validation of the model

• Implementation of the final results

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 Steps involved in the process of LP formulation are:

• Decide upon the objective

• Calculate the contribution per unit for maximizing or

the cost per unit for minimizing

• State the objective function noting how many

unknowns, or decision variables, appear.

• Consider what factors limit or constrain the quantities

to be produced or purchased.

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 Steps involved in the process of LP formulation are

• State these factors mathematically taking care to

ensure that the inequalities (i.e. < or >) are of correct

type.

• Before attempting to solve the problem ensure that all

the relationship established are linear function

• Solve the problem graphically or by the use of simplex

method

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 Assumptions of LP
A general LP problem has four basis assumptions

• Linearity: As the name indicates, the objectives function and

the set of constraints attached must be linear functions of x 1

• Continuity: The variable x1 can take continuous values. Thus

solutions to LP problems can take values such as 8.25, 10.5,
12.3
• Non-negativity: the solution of decision variables must be no-
negative
• Constancy: All the constancy aij bj, involved in the problem are
assumed to have taken actual values
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 Application Areas of LP

• Product mix-problem
• Production scheduling problems
• Transportation problems
• Production distribution problems
• Profit planning
• Travelling salesman problem
• Staffing problem
• Agriculture problems like land allocation for different
crops/vegetables, animal diet problems

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 Examples on Problem formulation

Example 1: The Feed-Mix Problem

To feed its livestock Egunjobi farms needs to purchase two kinds
of feed for the poultry section. The minimum nutritional
requirements of the livestock are 500g of starch, 330g of protein
and 500g of fat daily. Egunjobi farms must mix these two kinds of
feed. The first feed cost N10/g and each gramme contains 50g of
starch, 100g of protein and 75g of fat. The second feed costs N5/g
and each gramme contains 75g of starch, 25g of protein and 50g of
fat. Formulate the above as a linear programming model.

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0
 Examples on Problem formulation

Example 2: The Product-Mix Problem

Walexy Furniture Company specializes in making two types of
products; chairs and tables for school children. The company has
limited resources of timber, labour and finishing material with
which to produce these products. The company is faced with the
problem of determining the best mix of the product whether to
make; all chairs, all tables or combination of both items in order to
maximize the total profit. The table below depicts the resources
per unit produced and the total available resources and price per
unit. Formulate the above as a linear programming model.

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Example 3
Linear programming is a useful tool to decide how best existing
resources are utilized. As a production manager, you are not
only to supply information for application of this technique but
also to formulate the problem and interpret the result to the
management. You are required to briefly discuss the following
issue as applied to linear programming
(i) What is the objective?
(ii) What are the information requirements?
(iii) What are the capabilities?

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 Examples on Problem formulation

Example 4: Production Planning Problem

A tailor has the following materials available: 16 square meters of
cotton, 11 square meters of silk, and 15 square meters of wool. He
can make out two products from these three materials, namely
dress and suite. A dress requires the following: 2 square meters of
cotton, 1 square meter of silk and 1 square meter of wool. A suite
requires 1 square meter of cotton, 2 square meter of silk and 3
square meter of wool. If the gross profit realized from a dress and
as suite is respective N30 and N50. Formulate the above as a linear
programming model.

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 Examples on Problem formulation

Example 5: Cost Minimization Problem

A manufacturer is to market a new fertilizer which is to be mixture
of two ingredients A and B. The properties of the two ingredients
are as follows: ingredient A contains 20% bone meal, 30% nitrogen,
40% lime and 10% phosphate and it cost N2.40 per kilogram.
Ingredient B contains 40% bone meal, 10% nitrogen, 45% lime and
5% phosphate, and it costs N1.60 per kilogram. Furthermore it is
decided that:
(i) The fertilizer will be sold in bags containing a minimum of 50
kilograms
(ii) It must contain at least 12% nitrogen
(iii) It must contain at least 6% phosphate
(iv) It must contain at least 20% bone meal
1 Formulate the above problem as a LPM.
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 Examples on Problem formulation

Example 5: Cost Maximization Problem

MALIKAD Beverage industries produce three types of soft drinks;
the Orange, Lemon and Ginger. He uses two types of raw materials
(A and B) of which 2000 and 3000 units are available respectively.
The raw materials requirements per unit of the three products are
given below
Raw Requirements per unit given products

Materials Orange Lemon Ginger

A 2 3 5

B 4 2 7

The labour requirement per unit of Orange is twice that of lemon and
three times that of ginger while their unit profits are N6, N4 and
N10 respectively. Formulate the problem as a LP model to determine
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5 the number of units of each product that will maximize profit
 Solution to Linear Programming Problem.

Solution to Linear Programming Problem.

There are several methods of solving LP problems
Common methods of solving LP problems:
• Graphical method
• Simplex methods

Graphical Method

Graphical method is the simplest to use regardless of the number

of constraints and whether it is maximizing or minimizing problem.
Note that this method can only be used if and only if the decision
variables are not more than two.

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The stepwise procedure of graphical method of solving LP
 
• Formulate the L.P model in the standardized manner as
described above.
• Equalize the inequalities of the constraints so as to draw
graph of each constraint as line equation.
• Draw the axes of the graph that represent the two
decision variables.
• Draw each constraint as a separate line on the graph
• Identify and hatch the “feasible region”. This is the area
that does not contravene any of the constraint and is
therefore the area containing possible solutions. It should
be noted that:

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(i) As more constraint are plotted the feasible region usually

becomes smaller

(ii) Any constraint line that does not touch the feasible region is

known as a redundant constraint i.e. it is non-binding.

(iii) Find the point in or on the edge of the feasible region that give

the maximum contribution or maximization,

• Verify the answer by inserting the value of the decision variables

in the constraints and check whether constraints are satisfied.

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Example 6:

1. Solve the following LP problem using the graphical

method.

Max Z = 10X + 15Y

Subjects to:

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 Solution

25

20

15

10

5 10 15 20 25 30 35

Z = 10(5.5) +15(7.8) = 172*

Z = 10(0) +15(10) = 150
Z = 10(9) +15(0) = 90
* Therefore the optimal solution is X =
5.5, Y = 7.8. 20
Assignment 1:

Maximize the objective function using the graphical

method.
Max Z=3x1+5x2

Subjects to:
x1

2x2

3x1+2x2

3x1+5x2

X1,X2

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 The Simplex Method

The Steps as follows:

• Set the initial solution: Any simplex tableau represents one to the LP.
The solution is read by setting non-basic variable equal to zero.
• For Optimality: Optimality test is to examine objective function, and
if no negative/ positive numbers in this row then stop otherwise,
continue with the next step.
• Improving the solution
• Determine the variable that enters the basis
• Determine the variable that leaves the basis
• Update the tableau to reflect the change in basis variable.
• Entering variable: The variable with negative co-efficient in
objective function row. However, it is traditional to use the variable
with the largest co-efficient. 22
 The Simplex Method

• Leaving variable is determined by taking the ratio: the

elements in the right hand side divided by the elements in
the column of entering variable i.e Ratio = b j/aij.
• The basic variable with the smallest ratio and non- negative
leaves the basis i.e. the leaving variable is Min b j/aij>0.
• Transformation of the tableau begins by copying the element
in the old tableau in the basic column.
• The element that appears in the column of entering variable
and the pivot row is termed the pivot element. The pivot row
is transformed simply by dividing the old row by the pivot
element thereby forming new pivot row.

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 The Simplex Method

• Update the remaining row by finding in the old tableau

that is the pivot column, multiply this number by the
new pivot just computed, subject/add this multiplied
new row from the old row being updated i.e.
New Rj =Old Ri – (aij x R pivot)

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 Using Simplex Method to solve problem

Example 7:
KAAD Drinks Industries produce three types of soft drinks;
KAADOR, KAADMON and KAADGER. He uses three types of raw
materials: Orange, Lemon and Ginger of which 80, 48 and 40
units are available respectively. The raw materials requirements
per unit of the three products are given below
Requirements per unit /given products
Raw Materials
KAADOR KAADMON KAADGER

Orange 2 4 3

Lemon 4 2 1

Ginger 1 1 2

The unit profits are N3, N4 and N5 respectively. Formulate the

problem as a LP model in order to determine the number of units of
each product that will maximize profit. Hence solve the optimization
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problem using Simplex method
 ASSIGNMENT PROBLEM (MINIMIZATION)

The Solution Procedure

(1) For each row, find the smallest number in the row and subtract
this every element or the row (generating a new cost matrix, of
the same solution according to property)

(2) For each column of the new matrix, find the smallest in that
column (which may be zero) and subtract this number from every
number in that (same comment as 1)

(3) Attempt to find a solution with a total cost equal to zero.

(i) Examine the matrix row by row. If no zero is remaining in a row,
or if multiple zeros remain in a row, skip the row. If there is exactly
one zero in the row circle the zero and draw a line through the
column.

ii) Examine the matrix column by column. If there is exactly one zero
in the column, circle it and cross the row otherwise skip the column.

iii) Repeat step (i) and (ii) until no circles can be drawn around the
zeros.

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 ASSIGNMENT PROBLEM (MINIMIZATION)

The Solution Procedure

ii) Examine the matrix column by column. If there is exactly one zero
in the column, circle it and cross the row otherwise skip the column.

iii) Repeat step (i) and (ii) until no circles can be drawn around the
zeros.

(4) If n zeros are circled (and here line are drawn) then stop because
according to property 2, the problem is solved and the circled
zeroes give the optimal solution.

(5) Find the smallest uncrossed number to generate a new table

i) Subtract this number from every uncrossed number

ii) Add this number to every number crossed by two lines
iii) Copy all numbers crossed by one line.

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 Transportation Models

• Transportation model is a special case of linear programming that deals with

shipping of commodity from the sources to destinations.

Assumption
• The shipment must all occur during the same time period
• Every source can supply destination and that each destination can be
supplied from any sources e.g. for a case of 6 source and 14 destination
there are 6 x 14 = 18 possible routes could be used.
• Cost of shipping along each route is known and fixed and that the cost is
proportional to the amount being shipped.
• The cost of shipping is additive.
• The total of the supply from all sources is exactly equal to the total of the
entire demand requirement

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 Solution Procedure
• Find a starting solution
• Check to see if the solution is optimal
• Improve the solution and return to step 2
  Solution Methods
• North West corner method.
• Minimal cost method.
• Vogel Approximation Method
• Stepping stone method.
• MODI method
Note: Total supply must equal to demand.

The company may be interest to know the cost of shipment of products

so that , it may be minimum

Check lecture note for examples on North west corner and Minimal cost method

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 Vogel Approximation Method (VAM)

Consider the transportation problem having the following cost and

requirement in the table below
 Use VAM to obtain the basic feasible solution and calculate the cost?

To/ Benin Osogbo Ibadan Ondo Supply

From
Lagos 32 18 16 28 8
Ado Ekiti 14 12 19 23 12
Ilorin 37 35 30 40 16
Demand 7 9 11 9 36

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• Find the penalty for each row by subtracting the two minimum cost on the
row
• Find the penalty for each column by subtracting the two minimum cost on
the column
• Locate the row or column with the highest penalty
• In this case, the highest penalty is found in column 1 (with value 18 boxed)
• Fill the cell with the least cost in the highest penalty column (which is 14,
from Adoekiti to Benin) with the supplies to meet demand. For us to meet
Benin’s demand, supply 7 units from Ado Ekiti leaving Ado Ekiti’s supply
capacity with 5 more units (i.e Ado Ekiti’s total supply is 12)

• With this, the Benin column becomes deactivated as all demand has been
met

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To/ Benin Osogbo Ibadan Ondo Supply Penalty 1
From
Lagos 32 18 16 28 8 18-16=2

Ado 14 12 19 23 12 14-12=2
Ekiti 7
Ilorin 37 35 30 40 16 35-30=5

Demand 7 9 11 9 36

Penalty 1 32- 18-12=6 19-16=3 28-23=5

14=18

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• Repeat the first three steps as indicated above. In this instance now, the
penalty row and column is labelled penalty 2 (Bearing in mind that the
Benin column has been deactivated)
• Here, the highest penalty is found in row 2 (with value 7 boxed)
• Fill the cell with the least cost in the highest penalty row (which is 12, from
Adoekiti to Osogbo) with the supplies to meet demand. For us to meet
Osogbo’s demand, supply 5 units remaining from Ado Ekiti’s supply
capacity.
Note: Osogbo demanded for 9 units and only 5 units has been met.
• With this, the Ado Ekiti row also becomes deactivated as all supply has
been exhausted
Therefore, Benin column and Ado ekiti row have been deactivated

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To/ Benin Osogbo Ibadan Ondo Supply Penalty Penalty 2
From 1
Lagos 32 18 16 28 8 18-16=2 18-16=2

Ado Ekiti 14 12 19 23 12 14-12=2 19-12=7

Ilorin 37
7 35 5 30 40 16 35-30=5 35-30=5

Demand 7 9 11 9 36

Penalty 1 32- 18-12=6 19- 28-

14=18 16=3 23=5
Penalty 2 18-12=6 19- 28-
16=3 23=5

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• Repeat the steps to obtain penalty as done previously. In this instance now,
the penalty row and column is labelled penalty 3 (Bearing in mind that the
Benin column and Ado Ekiti row have been deactivated)
• Here, the highest penalty is found in column 2 (with value 17 boxed)
• Fill the cell with the least cost in the highest penalty row (which is 18, from
Lagos to Osogbo) with the supplies to meet demand. For us to meet
Osogbo’s remaining demand (which is 4, without forgetting that 5 of her
demand has been met from Ado Ekiti in the previous step), then supply 4
units from Lagos.
Note: This leaves Lagos with 4 more supply
• With this, the Osogbo’s total demand has been met
Therefore, Benin column, Ado ekiti row and osogbo column have been
deactivated

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To/ Benin Osogbo Ibadan Ondo Supply Penalty Penalty Penalty
From 1 2 3

4
Lagos 32 18 16 28 8 18- 18- 18-
16=2 16=2 16=2
Ado 14 12 19 23 12 14- 19-
Ekiti
7 5 12=2 12=7
Ilorin 37 35 30 40 16 35- 35- 35-
30=5 30=5 30=5
Deman 7 9 11 9 36
d
Penalty 32- 18-12=6 19- 28-
1 14=18 16=3 23=5
Penalty 18-12=6 19- 28-
2 16=3 23=5
Penalty 35- 30- 40-
3 18=17 16=14 28=12

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• Repeat the steps to obtain penalty as done previously. In this instance now,
the penalty row and column is labelled penalty 4 (Bearing in mind that the
Benin column, Ado Ekiti row, osogbo column have been deactivated)
• Here, the highest penalty is found in column 3 (with value 14 boxed)
• Fill the cell with the least cost in the highest penalty column (which is 16,
from Lagos to Ibadan) with the supplies to meet demand. For us to meet
Ibadan’s demand (which is 11), supply 4 units remaining from Lagos supply
capacity. This means that Lagos supply is exhausted.
• With this, Ibadan has 7 more demands to be met.
Therefore, Benin column, Ado ekiti row, osogbo column and Lagos row have
been deactivated

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To/ Benin Osogbo Ibadan Ondo Supply Penalty 1 Penalty 2 Penalty Penalty
From 3 4

Lagos 32 18 16 28 8 18-16=2 18-16=2 18- 28-

4 4 16=2 16=12

Ado 14 12 19 23 12 14-12=2 19-12=7

Ekiti
Ilorin 37 35
7 30 5 40 16 35-30=5 35-30=5 35- 40-
30=5 30=10

Deman 7 9 11 9 36
d
Penalty 32- 18- 19- 28-
1 14=18 12=6 16=3 23=5

Penalty 18- 19- 28-

2 12=6 16=3 23=5
Penalty 35- 30- 40-
3 18=17 16=14 28=12

Penalty 30- 40-

4 16=14 28=12
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• With the supply from Lagos and Ado Ekiti Exhausted, only Ilorin has 16
units to supply. Therefore, the remaining 7 units for Ibadan will be met
therefrom. This leaves Ilorin with 9 more units capacity to supply

• Also, Ondo’s total demand of 9 units will be met from Ilorin remaining
supply.

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To/ Benin Osogbo Ibadan Ondo Supply Penalty 1 Penalty 2 Penalty Penalty
From 3 4

Lagos 32 18 16 28 8 2 2 2 12

4 4
Ado 14 12 19 23 12 2 7
Ekiti
Ilorin 37
7 35
5 30 40 16 5 5 5 10

7 9
Deman 7 9 11 9 36
d
Penalty 18 6 3 5
1

Penalty 6 3 5
2
Penalty 17 14 12
3

Penalty 14 12
4
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• Therefore, total minimum cost of transportation will be obtained by

summing the multiples of the allotted units with their respective costs

per unit

Now, we have

• Cost = (4x18) + (4x16) + (7x14) + (5x12) + (7x30) + (9x40) = 864

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(a) A firm manufactures 2 products A and B. The profits from A and B are
N6 and N8 respectively. The firm has two machines and given below is
the required processing time in minutes for each machine on each
products. Machine X and Y have 4000 and 5000 machines minutes
respectively. Set up linear programming model to maximize the profit?
Hence solve the LP problem using graphical method

Cost per unit (N)

Product
Machine

A B  

X 8 6 6

Y 4 4 8

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