Introduction to Management Science

9th Edition
by Bernard W. Taylor III
Chapter 2
Linear Programming: Model Formulation
and Graphical Solution
2007 Pearson Education
Chapter 2 - Linear Programming: Model
Formulation & Graphical Solution

Chapter Topics

Model Formulation

A Maximization Model Example

Graphical Solutions of Linear Programming Models

A Minimization Model Example

Irregular Types of Linear Programming Models

Characteristics of Linear Programming Problems

Chapter 2 - Linear Programming: Model

Formulation & Graphical Solution

Linear Programming: An Overview

Objectives of business decisions frequently involve

maximizing profit or minimizing costs.

Linear programming is an analytical technique in which

linear algebraic relationships represent a firms decisions,
given a business objective, and resource constraints.

Steps in application:

Identify problem as solvable by linear programming.

Formulate a mathematical model of the unstructured

problem.

Solve the model.

Implementation
Chapter 2 - Linear Programming: Model
Formulation & Graphical Solution

Model Components
Decision variables - mathematical symbols
representing levels of activity of a firm.
Objective function - a linear mathematical relationship
describing an objective of the firm, in terms of decision
variables - this function is to be maximized or minimized.
Constraints requirements or restrictions placed on the
firm by the operating environment, stated in linear
relationships of the decision variables.
Parameters - numerical coefficients and constants used
in the objective function and constraints.
Chapter 2 - Linear Programming: Model
Formulation & Graphical Solution

Summary of Model Formulation Steps

Step 1 : Clearly define the decision variables

Step 2 : Construct the objective function
Step 3 : Formulate the constraints

Chapter 2 - Linear Programming: Model

Formulation & Graphical Solution

LP Model Formulation
A Maximization Example (1 of 3)
Product mix problem - Beaver Creek Pottery Company
How many bowls and mugs should be produced to
maximize profits given labor and materials constraints?
Product resource requirements and unit profit:

Chapter 2 - Linear Programming: Model

Formulation & Graphical Solution

Chapter 2 - Linear Programming: Model

Formulation & Graphical Solution

LP Model Formulation
A Maximization Example (2 of 3)
Resource
Availability:

40 hrs of labor per day

120 lbs of clay

Decision
Variables:

x1 = number of bowls to produce per day

x2 = number of mugs to produce per day

Objective
Function:

Maximize Z = $40x1 + $50x2

Where Z = profit per day

Resource
Constraints:

1x1 + 2x2 40 hours of labor

4x1 + 3x2 120 pounds of clay

Non-Negativity
Constraints:

x1 0; x2 0
Chapter 2 - Linear Programming: Model
Formulation & Graphical Solution

LP Model Formulation
A Maximization Example (3 of 3)
Complete Linear Programming Model:
Maximize Z = $40x1 + $50x2
subject to:
1x1 + 2x2 40
4x2 + 3x2 120
x1, x2 0

Chapter 2 - Linear Programming: Model

Formulation & Graphical Solution

Feasible Solutions

A feasible solution does not violate any of the constraints:

Example x1 = 5 bowls
x2 = 10 mugs
Z = $40x1 + $50x2 = $700
Labor constraint check:
1(5) + 2(10) = 25 < 40 hours, within constraint
Clay constraint check:
4(5) + 3(10) = 70 < 120 pounds, within constraint

Chapter 2 - Linear Programming: Model

Formulation & Graphical Solution

10

Infeasible Solutions

An infeasible solution violates at least one of the

constraints:
Example x1 = 10 bowls
x2 = 20 mugs
Z = $1400
Labor constraint check:
1(10) + 2(20) = 50 > 40 hours, violates constraint

Chapter 2 - Linear Programming: Model

Formulation & Graphical Solution

11

Graphical Solution of LP Models

Graphical solution is limited to linear programming
models containing only two decision variables (can be
used with three variables but only with great difficulty).
Graphical methods provide visualization of how a
solution for a linear programming problem is obtained.

Chapter 2 - Linear Programming: Model

Formulation & Graphical Solution

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Coordinate Axes
Graphical Solution of Maximization Model (1 of 12)

Maximize Z = $40x1 + $50x2

subject to: 1x1 + 2x2 40
4x2 + 3x2 120
x1, x2 0

Figure
2.2 Coordinates for Graphical Analysis
Chapter 2 - Linear Programming: Model
Formulation & Graphical Solution

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Labor Constraint
Graphical Solution of Maximization Model (2 of 12)

Maximize Z = $40x1 + $50x2

subject to: 1x1 + 2x2 40
4x2 + 3x2 120
x1, x2 0

Figure 2.3 Graph of Labor Constraint

Chapter 2 - Linear Programming: Model

Formulation & Graphical Solution

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Labor Constraint Area

Graphical Solution of Maximization Model (3 of 12)

Maximize Z = $40x1 + $50x2

subject to: 1x1 + 2x2 40
4x2 + 3x2 120
x1, x2 0

Figure 2.4 Labor Constraint Area

Chapter 2 - Linear Programming: Model

Formulation & Graphical Solution

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Clay Constraint Area

Graphical Solution of Maximization Model (4 of 12)

Maximize Z = $40x1 + $50x2

subject to: 1x1 + 2x2 40
4x2 + 3x2 120
x1, x2 0

Figure 2.5 Clay Constraint Area

Chapter 2 - Linear Programming: Model

Formulation & Graphical Solution

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Both Constraints
Graphical Solution of Maximization Model (5 of 12)

Maximize Z = $40x1 + $50x2

subject to: 1x1 + 2x2 40
4x2 + 3x2 120
x1, x2 0

Figure 2.6 Graph of Both Model Constraints

Chapter 2 - Linear Programming: Model

Formulation & Graphical Solution

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Feasible Solution Area

Graphical Solution of Maximization Model (6 of 12)

Maximize Z = $40x1 + $50x2

subject to: 1x1 + 2x2 40
4x2 + 3x2 120
x1, x2 0

Figure 2.7 Feasible Solution Area

Chapter 2 - Linear Programming: Model

Formulation & Graphical Solution

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Objective Function Solution = $800

Graphical Solution of Maximization Model (7 of 12)

Maximize Z = $40x1 + $50x2

subject to: 1x1 + 2x2 40
4x2 + 3x2 120
x1, x2 0

Figure
2.8 Objection Function Line for Z = $800
Chapter 2 - Linear Programming: Model
Formulation & Graphical Solution

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Alternative Objective Function Solution Lines

Graphical Solution of Maximization Model (8 of 12)

Maximize Z = $40x1 + $50x2

subject to: 1x1 + 2x2 40
4x2 + 3x2 120
x1, x2 0

Figure
2.9 Alternative Objective Function Lines
Chapter 2 - Linear Programming: Model
Formulation & Graphical Solution

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Optimal Solution
Graphical Solution of Maximization Model (9 of 12)

Maximize Z = $40x1 + $50x2

subject to: 1x1 + 2x2 40
4x2 + 3x2 120
x1, x2 0

Figure 2.10 Identification of Optimal Solution

21

Chapter 2 - Linear Programming: Model

Formulation & Graphical Solution

Optimal Solution Coordinates

Graphical Solution of Maximization Model (10 of 12)

Maximize Z = $40x1 + $50x2

subject to: 1x1 + 2x2 40
4x2 + 3x2 120
x1, x2 0

Figure 2.11 Optimal Solution Coordinates

Chapter 2 - Linear Programming: Model

Formulation & Graphical Solution

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Extreme (Corner) Point Solutions

Graphical Solution of Maximization Model (11 of 12)

Maximize Z = $40x1 + $50x2

subject to: 1x1 + 2x2 40
4x2 + 3x2 120
x1, x2 0

Figure 2.12 Solutions at All Corner Points

Chapter 2 - Linear Programming: Model

Formulation & Graphical Solution

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Optimal Solution for New Objective Function

Graphical Solution of Maximization Model (12 of 12)

Maximize Z = $70x1 + $20x2

subject to: 1x1 + 2x2 40
4x2 + 3x2 120
x1, x2 0

Figure
Solution with Z = 70x1 + 2420x2
Chapter 22.13
- Linear Optimal
Programming: Model
Formulation & Graphical Solution

LP Model Formulation
A Minimization Example (1 of 7)

Two brands of fertilizer available - Super-Gro, Crop-Quick.

Field requires at least 16 pounds of nitrogen and 24 pounds

of phosphate.

Super-Gro costs $6 per bag, Crop-Quick $3 per bag.

Problem: How much of each brand to purchase to minimize

total cost of fertilizer given following data ?

Chapter 2 - Linear Programming: Model

Formulation & Graphical Solution

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Chapter 2 - Linear Programming: Model

Formulation & Graphical Solution

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LP Model Formulation
A Minimization Example (2 of 7)
Decision Variables:
x1 = bags of Super-Gro
x2 = bags of Crop-Quick
The Objective Function:
Minimize Z = $6x1 + 3x2
Where: $6x1 = cost of bags of Super-Gro
$3x2 = cost of bags of Crop-Quick
Model Constraints:
2x1 + 4x2 16 lb (nitrogen constraint)
4x1 + 3x2 24 lb (phosphate constraint)
x1, x2 0 (non-negativity constraint)
Chapter 2 - Linear Programming: Model
Formulation & Graphical Solution

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LP Model Formulation and Constraint Graph

A Minimization Example (3 of 7)

Minimize Z = $6x1 + $3x2

subject to: 2x1 + 4x2 16
4x2 + 3x2 24
x1, x2 0

Figure
2.16 Graph of Both Model Constraints
Chapter 2 - Linear Programming: Model
Formulation & Graphical Solution

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Feasible Solution Area

A Minimization Example (4 of 7)

Minimize Z = $6x1 + $3x2

subject to: 2x1 + 4x2 16
4x2 + 3x2 24
x1, x2 0

Figure 2.17 Feasible Solution Area

Chapter 2 - Linear Programming: Model

Formulation & Graphical Solution

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Optimal Solution Point

A Minimization Example (5 of 7)

Minimize Z = $6x1 + $3x2

subject to: 2x1 + 4x2 16
4x2 + 3x2 24
x1, x2 0

Figure 2.18 Optimum Solution Point

Chapter 2 - Linear Programming: Model

Formulation & Graphical Solution

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Irregular Types of Linear Programming Problems

For some linear programming models, the general rules

do not apply.
Special types of problems include those with:
Multiple optimal solutions
Infeasible solutions
Unbounded solutions

Chapter 2 - Linear Programming: Model

Formulation & Graphical Solution

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Multiple Optimal Solutions

Beaver Creek Pottery Example

Objective function is parallel to

to a constraint line.
Maximize Z=$40x1 + 30x2
subject to: 1x1 + 2x2 40
4x2 + 3x2 120
x1, x2 0
Where:
x1 = number of bowls
x2 = number of mugs
Figure Chapter
2.202 - Linear
Example
with Multiple Optimal Solutions
Programming: Model
Formulation & Graphical Solution

32

An Infeasible Problem

Every possible solution

violates at least one
constraint:
Maximize Z = 5x1 + 3x2
subject to: 4x1 + 2x2 8
x1 4
x2 6
x1, x2 0

Figure 2.21 Graph of an Infeasible Problem

Chapter 2 - Linear Programming: Model

Formulation & Graphical Solution

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An Unbounded Problem

Value of objective function

increases indefinitely:
Maximize Z = 4x1 + 2x2
subject to: x1 4
x2 2
x1, x2 0

Figure
2.22 Graph of an Unbounded Problem
Chapter 2 - Linear Programming: Model
Formulation & Graphical Solution

34

Characteristics of Linear Programming Problems

A linear programming problem requires a decision - a

choice amongst alternative courses of action.
The decision is represented in the model by decision
variables.
The problem encompasses a goal, expressed as an
objective function, that the decision maker wants to
achieve.
Constraints exist that limit the extent of achievement of
the objective.
The objective and constraints must be definable by
linear mathematical functional relationships.
Chapter 2 - Linear Programming: Model
Formulation & Graphical Solution

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Properties of Linear Programming Models

Proportionality - The rate of change (slope) of the

objective function and constraint equations is constant.
Additively - Terms in the objective function and
constraint equations must be additive.
Divisibility -Decision variables can take on any
fractional value and are therefore continuous as opposed
to integer in nature.
Certainty - Values of all the model parameters are
assumed to be known with certainty (non-probabilistic).

Chapter 2 - Linear Programming: Model

Formulation & Graphical Solution

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Problem Statement
Example Problem No. 1 (1 of 3)
Hot dog mixture in 1000-pound batches.
Two ingredients, chicken ($3/lb) and beef ($5/lb).
Recipe requirements:
at least 500 pounds of chicken
at least 200 pounds of beef
Ratio of chicken to beef must be at least 2 to 1.
Determine optimal mixture of ingredients that will minimize
costs.

Chapter 2 - Linear Programming: Model

Formulation & Graphical Solution

37

Solution
Example Problem No. 1 (2 of 3)
Step 1:
Identify decision variables.
x1 = lb of chicken in mixture (1000 lb.)
x2 = lb of beef in mixture (1000 lb.)
Step 2:
Formulate the objective function.
Minimize Z = $3x1 + $5x2
where Z = cost per 1,000-lb batch
$3x1 = cost of chicken
$5x2 = cost of beef
Chapter 2 - Linear Programming: Model
Formulation & Graphical Solution

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Solution
Example Problem No. 1 (3 of 3)
Step 3:
Establish Model Constraints
x1 + x2 = 1,000 lb
x1 500 lb of chicken
x2 200 lb of beef
x1/x2 2/1 or x1 - 2x2 0
x1, x2 0
The Model: Minimize Z = $3x1 + 5x2
subject to: x1 + x2 = 1,000 lb
x1 50
x2 200
x1 - 2x2 0
Chapterx2 -,x
Linear Programming:
Model
0
1 2&
Formulation
Graphical Solution

39

Example Problem No. 2 (1 of 3)

Solve the following model

graphically:
Maximize Z = 4x1 + 5x2
subject to:

x1 + 2x2 10
6x1 + 6x2 36
x1 4
x1, x2 0

Step 1: Plot the constraints

as equations
Figure 2.23 Constraint Equations

Chapter 2 - Linear Programming: Model

Formulation & Graphical Solution

40

Example Problem No. 2 (2 of 3)

Maximize Z = 4x1 + 5x2

subject to:

x1 + 2x2 10
6x1 + 6x2 36
x1 4
x1, x2 0

Step 2: Determine the

feasible solution space
Figure 2.24Chapter
Feasible
Solution Space and Extreme Points
2 - Linear Programming: Model
Formulation & Graphical Solution

41

Example Problem No. 2 (3 of 3)

Maximize Z = 4x1 + 5x2

subject to:

x1 + 2x2 10
6x1 + 6x2 36
x1 4
x1, x2 0

Step 3 and 4: Determine

the solution points and
optimal solution
Figure 2.25 Optimal Solution Point

Chapter 2 - Linear Programming: Model

Formulation & Graphical Solution

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