Functions

• A function is a rule that assigns each input

number to exactly one output number. The set of
all output numbers is called the range.
• The input number varies with the output
number, so both the input and output numbers
are called variables.
• A variable that represents input values for a
function is called an Independent Variable while
a variable that represents output numbers is
called the dependent variable.
 Functions- Cont’d
• We therefore say that the dependent variable
relates to and is a function of the independent
variable.
Example: Quantity demanded (Q) of a product
depends on several factors such as price of the
product P1, price of other products P2, People’s
income Yo and People’s tastes and preferences Pt.
This can be expressed as
Q = F( P1, P2, Yo, Pt).
 Linear and non- Linear functions

• A linear function is one that will give a straight

line when drawn on a graph. A function line
y= 2x +3 will give a straight line if drawn on a
graph.
• A non linear function produces a curve (not
straight line) while drawn on a graph. It can be
expressed in a form of quadratic or exponential
functions.
• Example of linear functions can be Linear
programming or functions used to estimate
demand and supply or break even analysis.
 Linear programming
• Describes graphical and mathematical
procedures that are followed to make optimal
allocation of resources or limited resources to
competing products or activities.
• The objective of the linear programming
model is to maximise the benefits while using
limited resources or to minimise costs while
meeting certain requirements.
 Linear programming- Cont’d

Areas of application
• Solving product mix problems
• Making job assignments
• Solving transportation problems
• Determining Optimal investments in an
investment portfolio
• Solving location problems
• Purchasing problems
 Linear programming- cont’d

To solve a linear programming problem, there

should be:
• An Objective which a firm/company must
achieve
• Existence of resource constraints
• Mathematical relationships. We must be able
to express the objective and its limitations in
terms of mathematical equations and
inequalities.
 Linear programming- cont’d
Formulation of a linear programming problem
involves the following stages/conditions:
• Stating the objective function. i.e what to
maximise or minimise
• Feasible solutions. Area of feasible points showing
different conditions of solutions
• Optimal solution. i.e the solution which gives the
maximum or minimum value of the objective
function
• Non negativity condition i.e the values of the
optimal solution must be greater or equal to zero.
 Linear programming- cont’d
Example 2
A company produces two types of widgets, Manual and
electric. To manufacture each, it requires use of 3
machines: A, B and C. The production process is as
follows; for a manual widget, you need 2 hrs in
Machine A, 1hr in machine B and 1 hour in machine C.
For Electric widget, you require 1 hour in machine A, 2
hours in machine B and 1 hour in machine C. The
company expects to earn a profit of $4 for each
manual widget and $6 for each Electric widget and the
maximum available hours are 180 for machine A, 160
for machine B and 100 for machine C. Determine the
optimal combination of widgets that maximises profits.