Chapter

2
LINEAR
PROGRAMMING

Formulation & Applications

Linear Programming Problems (LPP) 2.1
Methods of solving Simple LPP 2.2
Linear Programming (LP) Models 2.3
Formulation Of Linear Programming Problems 2.4
Linear Programming Problems & Their Models 2.5

Objectives
At the end of the chapter, the students should be able to

identify the characteristics of LP problems

formulate linear programming models
familiarize with different LP problems
apply LP problems in real life situations

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 Formulation & Applications
In this chapter, we will know how to determine the maximum and minimum values
of some linear functions. Functions that may be involved here are the cost functions, profit
functions, revenue functions, etc.

Definition
A branch of applied mathematics, which is a mathematical technique that
involves maximizing and minimizing a linear functions subject to given linear constrains is
called linear programming (developed by George Dantzig in 1947 ). The term “linear” refers
to the relationship involving two or more variables, which show first – degree mathematical
statement. The term “programming” refers to the use of certain mathematical techniques or
algorithms to obtain best possible solution or the optimal solution.

2.2 Characteristics of Linear Programming Problem

Knowing the characteristics of linear programming problems (LPP) will enable one
to recognize problems that are amenable to a solution using linear programming (LP) models
(mathematical representations of LPP). LP models consist of two parts, the objective function and
the constraints.

1. The objective function is a mathematical statement reflecting the objective of the

operation (problem). A single quantifiable objective must be specified by the decision
maker. The objective of the decision-maker must be to maximize or minimize.
Maximization problems involve profit, market share, revenue, etc. Minimization involves
cost, distance, time, etc.

The decision-maker must achieve the objective of the problem and must not violate the
limitations or constraints. These constraints are referred to the availability of resources
like labor time, machine time, raw materials, work or storage space, etc. These resources
must be limited to supply.

There are two kinds of constraints in an LPP, the explicit constraint and the implicit
constraint. The explicit constraints are the conditions stated in the problem; the
relationship of variables could be expressed in terms of equations or inequalities. The
implicit constraints states that the variables are always greater than or equal to zero such
as the number of units to be produced, number of hours, area, distance, volume, etc.

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 2.1.1 Types of Linear Programming Problems

Simple Linear Programming Problems

Duality and sensitivity Analysis
Transportation and Assignment Problems
Integer Programming
Goal Programming
Numbers 4 and 5 will not be discussed in this book.

2.1.2 Linear Programming Model or Set Up

The LP model, as discussed above, has two basic parts, the objective function and
the constraints. The following are the canonical forms or standard forms of the LP
model.

Objective Function:

Maximize P = c1 x1 + c2 x2 + c3 x3 + … + cn xn
Subject to the constraints
a11 x1 + a12 x2 + … + a1n Xn < b1
a21 x1 + a22 x2 + … + a2n Xn < b2
: : : :
: : : :
am1 x1 + am2 + … + amn Xn < bm

Or
Objective Function:

Minimize C = c1 x1 + c2 x2 + c3 x3 + … + cn
xn Subject to the constraints
a11 x1 + a12 x2 + … + a1n Xn < b1
a21 x1 + a22 x2 + … + a2n Xn < b2
: : : :
: : : :
am1 x1 + am2 + … + amn Xn < bm

Where a’s, b’s and c’s are numerical values called the parameters and x’s are
the decision variables that represent the level of activity in the problem.

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Methods of Solving Simple Linear Programming Problems

Graphical Method or Geometric Method

Simplex Method or Tabular Method
These methods will be discussed in the succeeding chapters

2.2 Formulation of LP Models

The formulation of LP model is the first step in solving any linear programming
problem. The LPP must be formulated as mathematical model to be able to apply the
mathematical techniques. The following are the guidelines in formulating the LP models.

To formulate linear programming problems, the decision-maker must

Analyze and interpret the problem.

Determine the decision variables in the problem. These variables correspond to the
decision that must be made in order to identify a solution to the problem.

Present and summarize the data in tabular form (if possible).

Identify the objective of the problem (to maximize or to minimize). Translate the
objective of the problem to a mathematical statement (this is the objective function).

Identify the limitations or constraints in the problem and represents them as a linear
expressions involving the decision variables. The constraints are commonly in the form
of inequalities.

Gather pertinent data or make appropriate estimations for all arbitrary values in the
problem.

Form the model.

2.3 LPP & Their Corresponding Models

Production Problem

The GEM maker of jewelry makes two bracelet designs, heart design and flower
design. The bracelets are made of gold and platinum. The store has 28 ounces of gold and
20 ounces of platinum in one production. Each heart design bracelet requires 3 ounces of
gold and 2.5 ounces of platinum and makes a profit of P2,500, while each flower design
bracelet requires 4.5 ounces of gold and 3 ounces of platinum and makes a profit of

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 P3,400. How many heart design bracelets and flower design bracelets should be produced
to maximize the profit?

i ) Identify the decision variables in the problem

Let x = number of heart design bracelets
y = number of flower design bracelets

ii )Tabulate the given data in the problem

Heart design Flower design Available Amount

Gold ( ounces ) 3.0 4.5 28
Platinum ( ounces ) 2.5 3.0 20
Profit ( pesos ) 2500 3400

iii )Determine the objective of the problem

The objective of the problem is to maximize the profit ( P ). The profit can
be determined by the equation.
P = 2500x + 3400y

iv )Identify the constraints

The only available amounts of gold and platinum in one production are
28 and 20 ounces respectively; this means that the production should not exceed
the given amounts. Thus, the explicit constraints are
3.0x + 4.5y ≤ 28 , the gold constraints
And 2.5x + 3.0y ≤ 20 , the platinum constraint

The implicit constraints are x ≥ 0 and y ≥ 0.

v ) Form the model

Objective Function: Max Profit = 2500x + 3400y

Subject to the constraints
3.0x + 4.5y ≤ 28
2.5x + 3.0y ≤ 20
x,y ≥ 0

Product Mix Problem

The Doodle food product company makes instant noodles from several
ingredients. Three of the ingredients, flour ( fortified ), squash, and mixed vegetables provide
vitamin A, B and C. the company wants to know how many grams of flour, squash and mixed

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vegetables should include in each pack to meet the minimum requirements of 240 mg of vitamin A,
198 mg of vitamin B and 135 mg of vitamin C while minimizing cost. The following table shows the
information on the vitamin content of each gram of the ingredients.

Ingredients Vitamin A ( in mg ) Vitamin B ( in mg ) Vitamin C ( in mg )

Flour 5 --- ----
Squash 3 2 ----
mixed vegetables 2 3 2

A gram of flour cost P0.05 a gram of squash cost P0.03 and a gram of mixed
vegetables cost P.025. Formulate the LP model.

i ) Decision variables

Vitamin flour squash Mixed vegetables Minimum

requirements
(mg )
A
B
C
Cost/gm
ii ) Data in tabular form

iii ) Objective Function

iv ) Constraints

v ) LP Model
Marketing Media Selection
A car manufacturing company would like to introduce its innovational and revolutionary
model of car. The company may advertise in leading car magazines, newspapers or on television.
The probability of those monthly income exceeds P40 000 will be 2.5 times more likely to buy this
new car. The objective in the advertising scheme is to maximize potential sales. One unit of TV
advertising costs P25 000 and reaches approximately 4 million people, half of whom makes a
salary of more than P40 000 monthly. One unit of advertising in car magazines costs P20 000 and
reaches approximately 2 million people, three-fourths of whom make a salary of more than P40
000 monthly. One unit of newspaper advertising costs P15 000 and reaches approximately 3
million people, two-thirds of whom make a salary of more than P40 000 monthly. The total
advertising budget is P 0.75 million. Formulate the LP model to determine which advertisement
should be used.

Let x1 = no. of units of TV ads

x2 = no. of units of car magazine ads
x3 = no. of units of newspaper ads

LP Model:

Transportation Problem

A manufacturer of soap and detergents has three plants located in Laguna, Bulacan and
Las Piñas. Major warehouse are located in Pasay, Makati, Parañaque, Quezon City and Malabon.
Sales requirements for the next year at each warehouse are given below:
 Warehouse Location Annual Sales (in thousand case )
Pasay 50
Makati 10
Parañaque 60
Quezon City 30
Malabon 20
TOTAL 170

There are some concerns in the company about which factory should supply to which
warehouse. Factory capacity at each location is limited. Laguna has an annual capacity of 100 000
cases. Bulacan has a capacity of 60 000 cases, and Las Piñas has a capacity of 50 000 cases.
The cost (in Pesos ) of shipping a case from each factory to each warehouse is given in table
below:
From/To Pasay Makati Parañaque Quezon City Malabon
Laguna P 44 35 52 38 46
Bulacan 42 40 45 28 25
Las Piñas 25 32 20 35 43

Let x11, x12, x13, x14, x15 = no. of cases from Laguna to Pasay, to Makati, to
Parañaque, to Quezon City and to Malabon respectively

Let x21, x22, x23, x24, x25 = no. of cases shipped from Bulacan to Pasay, to Makati, to
Parañaque, to Quezon City and to Malabon respectively.

Let x31, x32, x33, x34, x35 = no.of cases shipped from Las Piñas to Pasay, to Makati, to
Parañaque, to Quezon City and to Malabon respectively.

LP Model
Formulate the linear programming model of each of the following:

Time Allocation

The manager of Abiertas’ Assurance Company (AAC) would like to formulate a model that
will help allocate sales associates’ time between service calls to regular subscribers and new
subscribers. A maximum of 620 hours of sales associates’ time is available over the 1- month planning
period. In order to satisfy cash flow requirements, at least P12 000 in revenue (per sales associate)
must be generated during the 1- month period. Sales associate time for regular subscriber generates
P50 per hour. However, sales associate time for new subscriber generates an average of P30 per hour
only because it does not provide billable services. To ensure that new subscribers are being
maintained, the time sales associate append on new subscribers must be at least 60 % of the time
sales associate spend on regular customer contacts. With the given constraints, the AAC would like to
determine how to allocate sales associates’ time between regular subscribers so that the total number
of subscribers contacted during the 1-month period will be maximized. Sales associates require an
average of 45 minutes for each regular subscriber contact and 1 hour for each new subscriber contact.

Solution:
Objective Function: ____________________________________________
Subject to: ______________________________________________
______________________________________________
______________________________________________
______________________________________________

Portfolio Selection

The Las Piñas Credit Cooperative (LPCC) has P8 million which has earned from
previous investments. The management of LPCC would like to reinvest the P8 million in a portfolio
(common stocks, bonds, and other securities) that will maximize profit while maintaining an
acceptable level of risk. The reinvestment opportunities, rates of return, and risk measurements are
shown in the following table :
Investment Expected Rate of Return Estimated Variation in
Rate of Return ( risk measurement)

Municipal bonds 8.5 0.4

Government 4.5 0.0
bonds
Meralco stocks 15.8 5.3
Phil.Coal Stocks 12.2 2.4
Phil.Coconut 11.0 4.1
Stocks

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 The management has decided that the weighted average risk factor for the entire
portfolio should exceed 3.0. They also want to invest at least 25% in bonds, but at least 20% of the
bond investment must be in government bonds. The final policy is to invest no more than 4 million
in Phil. Coconut Stocks.

Solution:
Objective Function: ____________________________________________
Subject to: ______________________________________________
______________________________________________
______________________________________________
______________________________________________

Optimal Cargo Shipment

The Radiant Trucking Co. (RTC) distributes three products to several stores in
provinces and Manila. Currently RTC planning its shipments to Manila. The volume and
weight requirements of each unit of the three products are given in the following table:

Product Volume (ft3) Weight (lb)

A 3 8
B 5 10
C 6 7

The capacity per container of truck is limited to 2500 ft3 of space and 10 000
pounds of product. The profit per unit of product A is P120, product B is P150 and product C is
P175. Determine the best amounts of each product to ship.

Solution:

Objective Function: ____________________________________________

Subject to: ______________________________________________
______________________________________________
______________________________________________
______________________________________________

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