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2 Linear Programming (LP) Problem - Formulations

The document describes several examples of linear programming problems involving product mix, production planning, cutting stock, and game theory. It provides terminology for linear programming problems including decision variables, objective function, constraints, and non-negativity restrictions. It also presents four problems and requests they be formulated as linear programming problems and solved graphically.

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C1DA20ME030 Hemanth S
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© © All Rights Reserved
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29 views

2 Linear Programming (LP) Problem - Formulations

The document describes several examples of linear programming problems involving product mix, production planning, cutting stock, and game theory. It provides terminology for linear programming problems including decision variables, objective function, constraints, and non-negativity restrictions. It also presents four problems and requests they be formulated as linear programming problems and solved graphically.

Uploaded by

C1DA20ME030 Hemanth S
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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Linear Programming (LP)

Problem- Formulations
Example 1. (Product Mix Problem)
• Consider a small manufacturer making two products A and B.

• Two resources R1 and R2 are required to make these products.

• Each unit of product A requires 1 unit of R1 and 3 units of R2.

• Each unit of product B requires 1 unit of R1 and 2 units of R2.

• The Manufacturer has 5 units of R1 and 12 units of R2 available.

• Manufacturer also makes a profit of


– Rs 6 per unit of product A sold and
– Rs 5 per unit of product B sold.

• Formulate a linear programming problem for the above situation.


Terminology
• The problem variables X and Y are called Decision variables and they represent
the solution or the output decision from the problem.

• The profit function that the manufacturer wishes to increase, represents the
objective of making the decisions on the product quantities and is called the
objective function.

• The conditions matching the resource availability and resource requirement are
called constraints.
– These usually limit (or restrict) the values the decision variables can take.

• We have also explicitly stated that the decision variables should take non
negative values
– This is true for all Linear Programming problems.
– This is called non negativity restriction

• The problem that we have written down in algebraic form represents the
mathematical model of the given system and is called the Problem formulation.
• The problem formulation has the following steps.
– Identifying the decision variables.
– Writing the objective function
– Writing the constraints.
– Writing the non negativity restrictions.

• In the above formulation, the objective function and the constraints are
linear.
– Therefore the model that we formulated is a linear programming
problem.

• A Linear Programming problem has


– A linear objective function,
– Linear constraints and
– The non negativity constraints on all the decision variables.

• Let us consider some more examples to understand the linear programming


formulations better
Example 2. Production planning problem
• Let us consider a company making a single product.

• The estimated demand for the product for the next four months are
1000, 800, 1200, 900 respectively.

• The company has a regular time capacity of 800 per month and
over time capacity of 200 per month.

• The cost of regular time production is Rs 20 per unit and the cost of
over time production is Rs 25 per unit.

• The company can carry inventory to the next month and the
holding cost is Rs 3/unit/month.

• The demand has to be met every month. Formulate a linear


programming problem for the above situation.
Example 3. Cutting Stock Problem
Consider a big steel roll from which steel sheets of the same
lengths but different width have to be cut. Let us assume that
the roll is 20 Inch wide and the following sizes have to be cut

1. 9 Inch 511 numbers


2. 8 Inch 301 numbers
3. 7 Inch 263 numbers
4. 6 Inch 383 numbers

It is assumed that all the cut sheets have the same length
(Say, 50 Inches). Only one dimensional cutting is only
allowed.

The problem is to cut the sheets in such a way as to


minimize wastage of material.
Example 4. Game theory Problem
• Consider two manufacturers (A and B) who are competitors for the
same market segment for the same product.
– Each wants to maximize the market share and adopts two strategies.

• The gain (or pay off) for A when A adopts strategy i and B adopts
strategy j is given by aij. A 2 x 2 matrix would look like

• During a given time period T, both A and B have to mix their


strategies.

• If A plays only strategy 1, then B would play strategy 2 to gain which A


would not want.

• Each therefore want to mix their strategies so that they gain


maximum (or the other loses maximum).
Problem 1. Solve graphically
• A manufacturer of a line of patient medicines is
preparing a production plan of medicines of A & B.
There are sufficient ingredients available to make
20,000 bottles of A and 40,000 bottles of B, but there
are only 45,000 bottles into which either of the
medicines can be put. Furthermore it takes 3 hours
to prepare enough material to fill 1000 bottles of A
and 1 hour to fill 1000 bottles of B and there are 66
hours available for this operation. The profit is Rs. 20
per bottle of A and Rs. 16 per bottle of B.
– Formulate this problem as L.P.P.
– Solve graphically.
Problem 2. Solve graphically
• A small manufacturer employs 5 skilled men and 10
semi-skilled men. He makes an article in 2 qualities, a
deluxe model and an ordinary model. The making of
deluxe model requires 2 hours of work by a semi-
skilled man and 2 hours of work by a skilled man. The
ordinary model requires 3 hours of work by a semi-
skilled man and 1 hour of work by a skilled man. By
union rule no man can work more than 8 hours per
day. The manufacturer's profit on the deluxe model
is Rs. 10 and on the ordinary model it is Rs. 8. How
many of each type of model should be made in order
to maximize profit.
Problem 3. Solve graphically
A firm plans to purchase at least 200 quintals of scrap containing
high quality metal X and low quality metal Y. It decides that the
scrap to be purchased must contain at least 100 quintals of X –
metal and not more than 35 quintals of Y – metal. The firm can
purchase the scrap from two suppliers (A and B) in unlimited
quantities. The percentage of X and Y metals in terms of weight in
the scraps supplied by A and B is given below:

Metals Supplier A Supplier B


X 25% 75%
Y 10% 20%

The price of A’s scrap is Rs. 200 per quintal and that of B’s is Rs. 400
per quintal. Formulate this problem as LP model and solve it to
determine the quantities that the firm should buy from the two
suppliers so as to minimize total purchase cost.
Problem 4. Solve graphically
The standard weight of a special purpose brick
is 5 kg and it contains two basic ingredients B1
and B2. B1 costs Rs. 5 per Kg and B2 costs Rs. 8
per Kg. Strength considerations state that the
brick contains not more than 4 kg of B1 and
minimum of 2 kg of B2. Since the demand for
the product is likely to be related to the price
of the brick, find out graphically minimum cost
of the brick satisfying the above conditions.
Solution 4

Z=5X1 + 8X2
6
5
Z=5*3 + 8*2
4 Z=15+16 = Rs 31/-
3
2
1

0 1 2 4
3 5 6

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