Linear Programming

Formulation
 Linear Programming
Linear programming is a vital tool
in management science that applies
to a variety of business and
industrial decision-making
environments, including those
involving production, marketing,
finance, personnel, physical
distribution, and corporate planning.
 Linear Programming
The word “linear” implies direct
proportionality of relationship of
variables.
“Programming” means making
schedules or plans of activities to
undertake in the future.
“Linear programming” therefore is
planning by the use of linear
relationship of variables involved.
 Linear Programming

It makes use of mathematical

techniques to get the best
possible solution to a problem
involving limited resources.
 Linear Programming
Linear programming can be classified as
minimization or maximization problem
and has the following properties:
1) The decision-maker must have an
objective that he/she wishes to achieve
and must relate to a quantity
(dependent variable) such as profit or
cost, which the decision-maker wishes to
optimize (either to maximize or to
minimize).
 Linear Programming
2) There must be at least two decision
variables (independent variables)
that the decision maker can operate
at different levels. The function
expressing the relationship between
the dependent and the decision
variables must be linear.
 Linear Programming

3) The actions of the decision-maker

must be constrained; that is, the
decision variables must be operated
at levels that do not violate the
limitations or constraints. All
variables have a value greater than
or equal to 0.
 Linear Programming
4) The decision variables must be
interrelated and the decision
maker must be able to express the
relationship of variables in terms
of linear equations or linear
inequalities.
 STANDARD LINEAR PROGRAMMING
FORMULATION
A linear programming problem, when
expressed in mathematical terms, consists of
two parts:
a) the objective function and
b) the constraints.
STANDARD LINEAR PROGRAMMING
FORMULATION
The objective function is simply a
mathematical statement expressing
the relationship between the quantity
to be optimized and the decision
variables in the problem.
 LINEAR PROGRAMMING FORMULATION
The objective function statement is
generally preceded by the word
“maximize” or “minimize”, depending on
whether the dependent variable under
consideration is to be maximized or
minimized.
For example, if the dependent variable is
profit, then we use “maximize”; if the
dependent variable is cost, then we use
“minimize”.
 LINEAR PROGRAMMING FORMULATION
The constraints in a linear programming problem
are mathematical statements of the limitations
placed on the decision maker.
They must take the form of a standard linear
programming formulation is generally preceded by
the words “subject to” which implies that the
decision maker’s course of action is restricted by
the conditions that follow.
The constraints section also includes an implicit
constraints, commonly called the nonnegativity
constraints, which states that all the variables must
be either zero or positive.
Illustration:
The ABC Furniture makes two products: tables and
chairs, which must be processed through assembly and
finishing departments. Assembly department is
available for 60 hours in every production period, while
the finishing department is available for 48 hours of
work. Manufacturing one table requires 4 hours in the
assembly and 2 hours in the finishing. Each chair
requires 2 hours in the assembly and 4 hours in the
finishing. One table contributes ₧240 to profit, while a
chair contributes ₧100. The problem is to determine the
number of tables and chairs to make per production
period in order to maximize the profit.
The ABC Furniture makes two products: tables and chairs, which must be processed through assembly and finishing
departments. Assembly department is available for 60 hours in every production period, while the finishing department is
available for 48 hours of work. Manufacturing one table requires 4 hours in the assembly and 2 hours in the finishing. Each
chair requires 2 hours in the assembly and 4 hours in the finishing. One table contributes ₧240 to profit, while a chair
contributes ₧100. The problem is to determine the number of tables and chairs to make per production period in order to
maximize the profit.
Mathematical Model:
Let x1 = number of tables to be produced
x2 = number of chairs to be produced

Time in Time in Contribution to

assembly finishing Profit
x 4 2 ₧240
y 2 4 ₧100
60 48
Formulating the Objective Function and Constraints:
Maximize P = 240x + 100y
Subject to:
4x + 2y ≤ 60  Explicit constraint
 constraints
2x + 4y ≤ 48 

x ≥ 0,y ≥ 0  Implicit constraint
Example 1. A PRODUCT-MIX PROBLEM
A certain company uses three kinds of raw materials
– A, B, and C to produce products 1 and 2. Product
1 contributes ₧150 to the profit of the company;
product 2 contributes ₧220. Product 1 requires 1
unit of A, 2 units of B, and 2 units of C. Product 2
requires 1 unit of B, and 3 units of C. There are 70
units of A, 160 units of B, and 240 units of C
available every production period. Demand for the
two products is good and the company can sell all
that it produces. How many units of products 1 and
2 must the company produce to maximize total
contribution to profit?
A certain company uses three kinds of raw materials – A, B, and C to produce products 1 and 2. Product 1
contributes ₧150 to the profit of the company; product 2 contributes ₧220. Product 1 requires 1 unit of A, 2 units
of B, and 2 units of C. Product 2 requires 1 unit of B, and 3 units of C. There are 70 units of A, 160 units of B, and
240 units of C available every production period. Demand for the two products is good and the company can sell
all that it produces. How many units of products 1 and 2 must the company produce to maximize total contribution
to profit?

Mathematical Model:
x1 = number of units product 1 to be produced
x2 = number of units product 2 to be produced
Material A Material B Material C Profit
x1 1 2 2 ₧150
x2 1 3 ₧220
70 160 240

Maximize P = 150x1 + 220x2

Subject to: x1 ≤ 70
2x1 + x2 ≤ 160
2x1 + 3x2 ≤ 240
x1 ≥ 0, x2 ≥ 0
Example 2. AN INVESTMENT PROBLEM
Mr. Jack Pot has ₧700,00 that he intends to
invest in one or both of two opportunities.
The maximum amount that can be invested
in opportunity 1 is ₧400,000, while the
maximum in opportunity 2 is ₧350,000.
Interest rates per year are 10% for
opportunity 1 and 12% for opportunity 2.
How much should he invest in each in order
to maximize his earnings?
Mr. Jack Pot has ₧700,00 that he intends to invest in one or both of two opportunities. The
maximum amount that can be invested in opportunity 1 is ₧400,000, while the maximum in
opportunity 2 is ₧350,000. Interest rates per year are 10% for opportunity 1 and 12% for
opportunity 2. How much should he invest in each in order to maximize his earnings?

Mathematical Model:
x1 = amount to be invested in opportunity 1
x2 = amount to be invested in opportunity 2

Maximize E = 0.10 x1 + 0.12 x2

Subject to:
x1 + x2 = 700,000 Total amount
x1 ≤ 400,000 Maximum for opportunity 1
x2 ≤ 350,000 Maximum for opportunity 2
x 1 , x2 ≥ 0
Example 3. A BLENDING PROBLEM
A contractor company has two types of road-paving
materials. Each barrel of type A contains 2 gallons of
carbon black and 2 gallons of thinning agent. Each
barrel of type B contains 3 gallons of carbon black
and 1 gallons of thinning agent. A barrel of type A
costs ₧400, while a barrel of type B costs ₧240. The
firm decides to use a mixture that contains at least
12 gallons of carbon black and at least 6 gallons of
thinning agent. How many barrels of A and B should
the firm use in order to minimize total cost?
A contractor company has two types of road-paving materials. Each barrel of type A contains 2 gallons of
carbon black and 2 gallons of thinning agent. Each barrel of type B contains 3 gallons of carbon black and 1
gallons of thinning agent. A barrel of type A costs ₧400, while a barrel of type B costs ₧240. The firm
decides to use a mixture that contains at least 12 gallons of carbon black and at least 6 gallons of thinning
agent. How many barrels of A and B should the firm use in order to minimize total cost?

Mathematical Model:
x1 = number of barrels of type A to be purchased
x2 = number of barrels of type B to be purchased
Carbon Black Thinning Agent Cost
x1 2 2 ₧400
x2 3 1 ₧240
12 6
Minimize C = 400x1 + 240x2
Subject to: 2x1 + 3x2 ≥ 12
2x1 + x2 ≥ 6
x1 , x 2 ≥ 0
 METHODS OF SOLVING
LINEAR PROGRAMMING
 Linear Programming
Two ways of solving a linear programming problem:
1) by the graphical method –
can only be used if the problem has 2 or 3
variables;
since there are only 2 coordinate axes in a plane
and 3 coordinates in space.
2) by the simplex method –
can handle problems having any number of
variables.
 Linear Programming
The Graphical Method
As the name implies, this method makes use of
graphs to arrive at the optimum solution.
OPTIMUM SOLUTION is a solution that makes the
objective function as large as possible in the
case of maximization process, and as small as
possible in the case of minimization process.
The set of all points in the graph satisfying the
constraint is called feasible solution, and these
points are located in the feasible region.
 Linear Programming
Steps to follow in solving the graphical method:
1) Represents the unknown in the
problem.
2) Tabulate the data about the unknown
(if necessary).
3) Formulate the objective function and
constraints.
4) Graph the constraints (we need to
consider only the first quadrant), and
always solve for the coordinates at the
points of intersection of lines.
 Linear Programming
5) Substitute the coordinates at the
vertices of the feasible region in the
objective function.
6) Formulate your decision by selecting
the highest value of the objective if it
is maximization and the lowest value
if it is minimization.
Graphical Method:
EXAMPLES:
1) Maximize P= 60x + 80y objective function
Subject to: x ≤ 70 constraints
2x + y ≤ 160
2x + 3y ≤ 240
x ≥ 0, y ≥ 0
Graphical Method
1) Replace all the inequality signs in the explicit
constraint with equal signs.
2) Graph the equations in one set of coordinate axes.
3) Test for a point on a given line. If the point satisfies
the inequality, then shade the region which contains
the point. Otherwise, shade the other side of the line.
4) The points in the area that is common to all the four
shaded regions represent the feasible solutions to the
problem.
The area which contains all the feasible solutions is
called the feasible area or feasible region.
Maximize P= 60x + 80y
a) Solve for the intercept points
s.t. x ≤ 70
2x + y ≤ 160 (0, 160) (80, 0)
180
2x + 3y ≤ 240 (0, 80) (120,0) b) Graph the constraints
L2 L1
160

140

120

100

L3
80

60

40

20

20 40 60 80 100 120 140

c) Solve for the coordinates of the feasible points
x ≤ 70 point B: L2 and L3
2x + y ≤ 160 2x + y = 160 2x + y = 160
2x + 3y ≤ 240 2x + 3y = 240 – 2x – 3y = -240
0 – 2y = -80
y = 40
B(60, 40) 2x + 40 = 160
Feasible Points 2x = 120
A, B, C, D x = 60

point C: L1 and L2
x = 70
A(0, 80) 2x + y = 160
2(70) + y = 160
y = 160 - 140
y = 20
B(60, 40)

Feasible Region C(70, 20)

C (70, 20)

D (70, 0)
d) Test for optimality: A(0, 80) 60(0) + 80(80) = 6400
Maximize P= 60x +80y B(60, 40) 60(60) + 80(40) = 6800
C(70, 20) 60(70) + 80(20) = 5800
D(70, 0) 60(70) + 80(0) = 4200

e) Decision:
x = 60, y = 40
Maximum Profit = ₧6800

A (0, 80)

Feasible Region C

D (70, 0)