2 Formulation of LP PDF

Formulation of Linear
Programming
Problems
LP: A Quick Recap
 Three phases in Application of LP

•Formulation – three steps
 Define decision variables
 Develop the Objective Function
 Develop the Constraints – including non-
negativity constraints
•Solution
•Interpretation of the solution
Linear Programming
Assumptions
(i) proportionality
(ii) additivity linearity
(iii) divisibility
(iv) certainty
Applications of LP
1. Product mix problem **
2. Diet problem **
3. Loan Portfolio problem **
4. Blending problem -- Problem 5
5. Media planning problem -- Problem 6
6. Personnel scheduling problem -- Problem 7
7. Truck allocation problem -- Problem 8
8. Production scheduling problem -- Problem 9
9. Multi period financial problem -- Problem 16
10. Transportation problem **
11. Assignment problem **
Problem 5: Blending Problem
Ajax Fuels, Inc. is developing a new additive for airplane
fuels. The additive is a mixture of three liquid
ingredients: A, B, and C. For proper performance, the
total amount of additive (amount of A + amount of B +
amount of C) must be at least 10 ounces per gallon of
fuel. However, because of safety reasons, the amount of
additive must not exceed 15 ounces per gallon of fuel.
The mix or blend of the three ingredients is critical. At
least 1 ounce of ingredient A must be used for every
ounce of ingredient B. The amount of ingredient C must
be greater than one-half the amount of ingredient A. If
the cost per ounce for ingredients A, B, and C is $.10,
$.03, and $.09, respectively, find the minimum cost
mixture of A, B, and C for each gallon of airplane fuel.
Formulate this problem as an LP.
LP Formulation: Problem 5
Decision variables: as always, we begin by

determining the variables whose values must be
decided by the decision maker: how much of each
ingredient should be added to the fuel. Thus, we
define the decision variables:
x1 = ounces of ingredient A to be added per gallon of
fuel
x2 = ounces of ingredient B to be added per gallon of
fuel
x3 = ounces of ingredient C to be added per gallon of
fuel
LP Formulation: Problem 5
The complete formulation is:
Min z = 0.10x1 + 0.03x2 + 0.09x3
s.t.
x1 + x2 + x3 ≥ 10
x1 + x2 + x3 ≤ 15
x1 - x2 ≥ 0
-0.5x1 + x3 ≥ 0
x1 , x2 , x3 ≥ 0
6. Media Planning Problem
A company producing a novel consumer product is
considering the selection of an advertising strategy to
reach three types of customers – urban householders
with high income, urban householders with low
income and rural householders. The company expects
that the people in the first group will buy three times
as much as those in the second and third groups. The
company can advertise on TV or in a popular weekly
picture magazine. A unit of advertising on TV costs
the Company $12,000 and reaches approximately
2,500 people in the first group, 10,000 in the second
and 1000 in the third group.
Also, one unit of advertising in the magazine costs
$8000 and reaches 6000 people in the first group, 5000
in the second group and 2000 in the third group. A
minimum of 5 units of advertising in TV, and not
more than 15 units of advertising in the magazine are
stipulated under the company’s advertising policy.
The company’s advertising budget is set at $240,000.
Formulate the above as a linear programming
problem.
Let
x1 = number of TV ads to be bought
x2 = number of magazine ads to be bought
Max z = 18,500x1 + 25,000x2

s.t.
x1  5 (minimum no. of TV ads)
x2  15 (maximum no. of magazine ads)
12,000x1 + 8,000x2  240,000 (budget)
x1, x2  0
7. Personnel Schd Problem
An airline at an international airport needs ground staff of
varying numbers at different times of the day. The
minimum ground staff requirements are:
6 AM to 10 AM 200
10 AM to 2 PM 350
2 PM to 6 PM 120
6 PM to 10 PM 145
10 PM to 2 AM 40
2 AM to 6 AM 75
Assume that the ground staff can report for work at the
commencement of any of the six time periods and will be
on duty continuously for 8 hours. Formulate an LP model
to minimise the total number of ground staff.
7. Personnel Schd Problem
Let xi be the no. of employees that start work at slot i
Min z = x1 + x2 + x3 + x4 + x5 + x6
s.t.
x1 + x6  200
x1 + x2  350
x2 + x3  120
x3 + x4  145
x4 + x5  40
x5 + x6  75
xi  0, for all i = 1, 2, 3, 4, 5 and 6
8. Truck Allocation Problem
The Pacific truck Transport Company Ltd. is considering the
problem of allocating trucks on three different routes. The
following table shows the volume of traffic expected on each
route and the income per tonne of traffic handled.
Volume of traffic Revenue per tonne
Route (‘000 tonnes) $
A 300 10
B 400 7
C 200 8
The company operates three types of trucks – long, medium

and small. The table below shows the volume of traffic (in
thousand tonnes) that can be carried by each type of truck on
each route in a year, and the maximum number of trucks of
each type available for use on all the routes.
Volume of Traffic (in thousand tonnes)
Route Long Medium Small
A 16 18 5
B 18 21 8
C 15 19 6
Total trucks 15 9 24
available
The operating cost (in thousand dollars) of each type of truck
on each of the three routes is shown in the following table.
Operating Cost (in thousand $)

Route Long Medium Small
A 15 15 15
B 22 18 25
C 18 16 22
The company estimates that the cost of losing traffic because
of the non-availability of truck space is equal to twice the
revenue which it would have earned as freight income.
Formulate the above problem as a linear programming
problem, clearly identifying the structural variables,
constraints and the objective function.
Decision variables:
xLA = no. of Long trucks to be allocated to Route A
…
xMB = no. of Medium trucks to be allocated to Route B
…
xSC = no. of Small trucks to be allocated to Route C
Structural variables:
yA = lost traffic on Route A in a year (‘000 tonnes)
yB = lost traffic on Route B in a year (‘000 tonnes)
yA = lost traffic on Route C in a year (‘000 tonnes)
Max z = 10(16xLA+18xMA+5xSA)+7(18xLB+21xMB+8xSB)
+8(15xLC+19xMC+6xSC) - (15xLA+15xMA+ 15xSA
+22xLB+18xMB+25xSB+18xLC+16xMC+22xSC)
- (20yA + 14yB + 16yC)
s.t.
16xLA+18xMA+5xSA + yA = 300
18xLB+21xMB +8xSB + yB = 400
15xLC+19xMC+6xSC + yC = 200
xLA+ xLB + xLC ≤ 15
xMA+ xMB + xMC ≤ 9
xSA + xSB + xSC ≤ 24
xLA , xLB , … , xSC ≥ 0 ; yA , yB , yC ≥ 0
9. Production Schd. Problem
A fabrication firm has agreed to produce and supply 3000
units of a component over the next six months. The
scheduled deliveries are as follows:
July 350
August 600
September 300
October 550
November 700
December 500
Total 3000
The components’ warehouse has a capacity for storing
not more than 400 components, and it costs $2 per
component to store for one month.
The firm has set up facilities for an average
production of 500 components a month. The cost of
setting up for additional units of production in any
month works out to $0.50 per component. If in any
month, the production falls below 500 components,
the idle cost of set-up facilities works out to $0.60 per
component.
Formulate the above as a linear programming
problem.
Decision Variables:
x1 = units to be produced in month 1 (July)
.
.
x6 = units to be produced in month 6 (December)

Structural Variables:
I1 = units in inventory at end of month 1 (July)
.
.
I6 = units in inventory at end of month 6 (December)
a1 = addl units (over 500) to be produced in month 1 (July)

.
.
a6 = addl units (over 500) to be produced in month 6 (December)
s1 = shortfall in units (from 500) to be produced in month 1 (July)

.
.
s6 = shortfall in units (from 500) to be produced in month 6 (December)

Min z = 2
s.t.
= x1 – 350 Here, at = Max (0, xt – 500)
= + x2 – 600 In this specific case (as it is a
minimising problem), this is
= + x3 – 300
equivalent to the pair:
= + x4 – 550 ≥ 0
= + x5 – 700 ≥ xt – 500
= + x6 – 500
≥ xt – 500 , t = 1, 2, … , 6
≥ 500 – xt , t = 1, 2, … , 6
≤ 400 , t = 1, 2, … , 6
≥ 500 – xt , t = 1, 2, … , 6
xt , It , at , st , ≥ 0 , t = 1, 2, … , 6

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Formulation of Linear

 Three phases in Application of LP

Decision variables: as always, we begin by

Max z = 18,500x1 + 25,000x2

The company operates three types of trucks – long, medium

Operating Cost (in thousand $)

x6 = units to be produced in month 6 (December)

I6 = units in inventory at end of month 6 (December)

a1 = addl units (over 500) to be produced in month 1 (July)

a6 = addl units (over 500) to be produced in month 6 (December)

s1 = shortfall in units (from 500) to be produced in month 1 (July)

s6 = shortfall in units (from 500) to be produced in month 6 (December)

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