A Real Life Application of Linear Progra

Dagon University Research Journal 2012, Vol.
A Real Life Application of Linear Programming

Win Win Myo *
Abstract
Linear programming is heavily used in microeconomics and company management, such as
planning, production, transportation, technology and other issues, either to maximize the income
or minimize the costs of a production scheme. In the real world the problem is to find the
maximum profit for a certain production. In "real life", linear programming is part of a very
important area of mathematics called "optimization techniques". In this paper, it is to be
investigated two different solving graphical methods for some real life problems. Then we may
introduce a new program for linear programming which is my own invention software. This
system is computerized system using Microsoft Visual Basic Programming Software. This
software may be helpful to solve the linear programming problems to get quickly and easily
optimal solutions for any user.
Introduction
Linear programming is used to find the best or optimal solution to a problem that
requires a decision or set of decisions about how best to use a set of limited resources to
achieve a state goal of objectives.
Applications
Many real world problems lend themselves to linear programming modeling. Many real
world problems can be approximated by linear models.
There are well-known successful applications in: manufacturing, marketing, finance
(investment), advertising and agriculture.
History of Linear Programming
It started in 1947 when G. B. Dantzig design the “simplex method” for solving linear
programming formulations of U.S. Air Force planning problems. It soon became clear that a
surprisingly wide range of apparently unrelated problems in production management could be
stated in linear programming terms and solved by the simplex method. Later, it was used to
solve problems of management. Its algorithm can also be used to network flow problems. On
Oct.14th,1975, the Royal Sweden Academy of Science awarded the Nobel Prize in economic
science to L.V.Kantorovich and T.C.Koopmans ”for their contributions to the theory of
optimum allocation of resources” The breakthrough in looking for a theoretically satisfactory
algorithm to solve LP problems came in 1979 when L.G.Khachian published a description of
such an algorithm.
The Linear Programming Model
Let: X1, X2, X3, ………, Xn = decision variables
Z = Objective function or linear function
Requirement: Maximization of the linear function Z.
Z = c1X1 + c2X2 + c3X3 + ………+ cnXn …..Eq (1)
Subject to the following constraints:
*
Lecturer, Department of Mathematics, Dagon University
112 Dagon University Research Journal 2012, Vol. 4
where aij, bi, and cj are given constants.

Developing LP Model (1)
The variety of situations to which linear programming has been applied ranges from
agriculture to zinc smelting.
Steps Involved:
Determine the objective of the problem and describe it by a criterion function in terms
of the decision variables.
Find out the constraints
Do the analysis which should lead to the selection of values for the decision variables
that optimize the criterion function while satisfying all the constraints imposed on the problem.
Example (1): Real life application problem (1) (Product Mix Problem) The N. Dustrious
Company produces two products: I and II. The raw material requirements, space needed for
storage, production rates, and selling prices for these products are given in Table 1.
The total amount of raw material available per day for both products is 15751b. The
total storage space for all products is 1500 ft2, and a maximum of 7 hours per day can be used
for production.
Example Problem
All products manufactured are shipped out of the storage area at the end of the day.
Therefore, the two products must share the total raw material, storage space, and production
time. The company wants to determine how many units of each product to produce per day to
maximize its total income.
Solution
The company has decided to maximize its sale income, which depends on the number
of units of product I and II. Therefore, the decision variables, x1 and x2 can be the number of
units of products I and II, respectively, produced per day.
Dagon University Research Journal 2012, Vol. 4 113

The object is to maximize the equation:
Z = 13x1 + 11x2
Subject to the constraints on storage space, raw materials, and production time.
Each unit of product I requires 4 ft2 of storage space and each unit of product II requires 5 ft2.
Thus a total of 4x1 + 5x2 ft2 of storage space is needed each day. This space must be less than
or equal to the available storage space, which is 1500 ft2. Therefore,
4x1 + 5x2 £ 1500
Similarly, each unit of product I and II requires 5 and 3 1bs, respectively, of raw material.
Hence a total of 5xl + 3x2 Ib of raw material is used.
This must be less than or equal to the total amount of raw material available, which is
1575 Ib. Therefore,
5x1 + 3x2 £ 1575
Prouct I can be produced at the rate of 60 units per hour. Therefore, it must take I
minute or 1/60 of an hour to produce I unit. Similarly, it requires 1/30 of an hour to produce 1
unit of product II. Hence a total of x1/60 + x2/30 hours is required for the daily production.
This quantity must be less than or equal to the total production time available each day.
Therefore,
x1 / 60 + x2 / 30 £ 7
or x1 + 2x2 £ 420
Finally, the company cannot produce a negative quantity of any product, therefore x1
and x2 must each be greater than or equal to zero.
The linear programming model for this example can be summarized as:
The Graphical Analysis of Linear Programming

The set of all points that satisfy all the constraints of the model is called a FEASIBLE
REGION. Using a graphical presentation we can represent all the constraints, the objective
function, and the three types of feasible points.
Graphical Analysis – the Feasible Region
The search for an optimal solution
Graphical Solution to LP Problem (1)

An equation of the form 4x1 + 5x2 = 1500 defines a straight line in the x1-x2 plane. An
inequality defines an area bounded by a straight line. Therefore, the region below and
including the line 4x1 + 5x2 = 1500 in the Figure represents the region defined by 4x1 + 5x2 £
1500.Same thing applies to other equations as well. The shaded area of the figure comprises
the area common to all the regions defined by the constraints and contains all pairs of xI and x2
that are feasible solutions to the problem. This area is known as the feasible region or feasible
solution space. The optimal solution must lie within this region.
There are various pairs of x1 and x2 that satisfy the constraints such as:

Trying different solutions, the optimal solution will be:
X1 = 270
X2 = 75
This indicates that maximum income of $4335 is obtained by producing 270 units of
product I and 75 units of product II. In this solution, all the raw material and available time are
used, because the optimal point lies on the two constraint lines for these resources. However,
1500- [4(270) + 5(75)], or 45 ft2 of storage space, is not used. Thus the storage space is not a
constraint on the optimal solution; that is, more products could be produced before the
company ran out of storage space. Thus this constraint is said to be slack.
If the objective function happens to be parallel to one of the edges of the feasible
region, any point along this edge between the two extreme points may be an optimal solution
that maximizes the objective function. When this occurs, there is no unique solution, but there
is an infinite number of optimal solutions.The graphical method of solution may be extended to
a case in which there are three variables. In this case, each constraint is represented by a plane
in three dimensions, and the feasible region bounded by these planes is a polyhedron.
Example (2): Real life application problem (2)
LP Formulation: Example
Maximize Z = $40 x1 + 50 x2
Subject to
x1 + 2x2 £ 40 hr (labor constraint)
4x1 + 3x2 £ 120 lb (clay constraint)
x1 , x2 ³ 0
Solution is x1 = 24 bowls x2 = 8 mugs
Revenue = $1,360
Graphical Solution Method

Plot model constraint on a set of coordinates in a plane. Identify the feasible solution
space on the graph where all constraints are satisfied simultaneously. Plot objective function to
find the point on boundary of this space that maximizes (or minimizes) value of objective
function.
Graphical Solution (as an example) Computing Optimal Values
Extreme Corner Points
Linear Programming Software

Using proLP Software to find an Optimal Solution

To see the input screen Double click proLP icon.
How to use proLP Software

v To input the data click entry data button
v To obtain the optimal solution click solve button
v To entry the new data or to delete the old data click cancel button
v To save the problem and solution click the save button
v To print the problem and solution click the print button
Conclusion
Linear programming has proven to be an extremely powerful tool, both in modering
real-word problems and as a widely applicable mathematical theory. Linear programming
theory falls within convex optimization theory and is also considered to be an important part of
business and economics, but may also be used to solve certain engineering problems.
Acknowledgements
I wish to thank Dr. Hla Htay, the Rector or Dagon University and Dr. Aye Aye Htun, Pro Rector of
Dagon University for permitting the opportunity to present this paper. I would like to express my sincere and
healthful gratitude to U Toe Aung, Professor and Head of Mathematics Department, Dagon University for his
permission to carry out this paper. My thanks also go to Daw Yin Yin Hla, lecturer Department of Mathematics,
for her invaluable suggestions and encouragement.
References
Strayer, J. K. (1989). “Linear Programming and Applicatioons”
Vasek Chv et al. (1983). “Linear Programming”

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Dagon University Research Journal 2012, Vol.

A Real Life Application of Linear Programming

where aij, bi, and cj are given constants.

Developing LP Model (4)

The Graphical Analysis of Linear Programming

Graphical Analysis – the Feasible Region

The search for an optimal solution

Graphical Solution to LP Problem (1)

Graphical Solution to LP Problem (2)

Graphical Solution to LP Problem (3)

Graphical Solution Method

Graphical Solution (as an example) Computing Optimal Values

Extreme Corner Points

Linear Programming Software

Using proLP Software to find an Optimal Solution

How to use proLP Software

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