Numerical Methods with Computer

Application
Optimization: Linear Programming

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 Linear Programming
} Linear Programming is one of the most versatile,
powerful and useful techniques for making
managerial decisions.
} Linear programming technique may be used for
solving broad range of problems arising in business,
government, industry, hospitals, libraries, etc.
} Whenever we want to allocate the available limited
resources for various competing activities for
achieving our desired objective, the technique that
helps us is LINEAR PROGRAMMING

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 Linear Programming
} Linear programming is a method of obtaining an
optimal solution or program (say, product mix in a
production problem), when we have limited resources
and a good number of competing candidates to
consume the limited resources in certain proportion.
} The term linear implies the condition of
proportionality and additivity.
} Programming refers to modeling and solving a
problem mathematically.
} Also, programming refers to a systematic procedure
by which a particular program or plan of action is
designed.

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 Linear Programming
} The manager has to find out the best course of
action in the interest of the organization. This best
course of action is termed as optimal course of
action or optimal solution to the problem.
} A program is optimal, when it maximizes or
minimizes some measure or criterion of
effectiveness, such as profit, sales or costs.
} Programming consists of a series of instructions and
computational rules for solving a problem that can be
worked out manually or can fed into the computer

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 Examples of Successful LP
Applications
} 1. Development of a production schedule that will
} satisfy future demands for a firm’s production while minimizing
total production and inventory costs
} 2. Selection of product mix in a factory to
} make best use of machine-hours and labor-hours available while
maximizing the firm’s products
} 3. Determination of grades of petroleum products to yield the
maximum profit
} 4. Selection of different blends of raw materials to feed mills to
produce finished feed combinations at minimum cost
} 5. Determination of a distribution system that will minimize
total shipping cost from several warehouses to various market
locations
} 6. Determination of Distribution line network interconnection to
minimize line loss

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Understanding
Problem
Formulation in LP

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 Properties of Linear programming
model
} Any linear programming model (problem) must have
the following properties:
(a) The relationship between variables and constraints
must be linear.
(b) The model must have an objective function.
(c) The model must have structural constraints.
(d) The model must have non-negativity constraint.

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 Definition of Terms
} Decision Variables:
} represent quantities that are, in some sense,
controllable inputs to the system being modeled

} Objective Function:
} represents some principal objective criterion or
goal that measures the effectiveness of the system
such as maximizing profits or productivity, or
minimizing cost or consumption

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 Definition of Terms
} Constraints:
} There is always some practical limitation on the
availability of resources viz. man, material, machine, or
time for the system.
} These constraints are expressed as linear equations
involving the decision variables
} Non-negativity Constraints
} There is no such thing as negative production

} Solving a linear programming problem means

determining actual values of the decision
variables that optimize the objective function
subject to the limitation imposed by the
constraints.
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 Linear Programming Application
} Product Mix Problem:
} The product mix problem occurs in an industry where it is
possible to manufacture a variety of products.
} A product has a certain margin of profit per unit, and uses
a common pool of limited resources.
} In this case the linear programming technique identifies
the products combination which will maximize the
profit subject to the availability of limited resource
constraints.

Decision
Constraints Variable Objective

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 Formulation 1: Product Mix Problem
A shop can make two types of sweets (A and B). They use two
resources, flour and sugar. To make one pack of A, they needed 3
kg of flour and 3 kg of sugar. To make one pack of B, they needed 3
kg of flour and 4 kg of sugar. They have 21 kg of flour and 28 kg of
sugar. These sweets A and B are sold at 900 and 1000 respectively.
Find the best product mix to maximize the revenue?

They will produced two sweets (Decision Variables)

-A&B
They need two resources: (Mix & Constraints)
- Flour (3kG per A and 3kg per B) total flour is 21kg
- Sugar (3kg per A and 4kg per B) total sugar is 28kg

Revenue Optimization (Objective)

Revenue generated from A : = 900 per packet of A
Revenue generated from B: = 1000 per packet of B
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 Formulation 1: Product Mix Problem
} Notations:
Let X1 be the number of packs of Sweet A
Decision Variables
Let X2 be the number of packs of Sweet B

Maximize profit:
900X1 + 1000 X2 Objective Function

3X1 + 3X2 <= 21

3X1 + 4X2 <= 28 Constraints

X1 , X2 >= 0 Non-negativity restrictions

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 Steps in LP Formulation
} Define the decision variables
} Define the objective function as a function of the
decision variables
} Determine the constraints/limitation of the decision
variables
} Define also the non-negativity restrictions

} It is said to be linear programming problems if

the Objective function and the constraints are
linear.

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 Important assumptions Made
} Certainty:
} numbers in the objective and constraints are known
with certainty and do not change during the period
being studied
} Proportionality:
} exists in the objective and constraints
} constancy between production increases and resource
utilization
} Additivity:
} the total of all activities equals the sum of the individual
activities

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 Important assumptions Made
} Divisibility:
} solutions need not be in whole numbers (integers)
} solutions are divisible, and may take any fractional
value
} Non-negativity:
} all answers or variables are greater than or equal to (≥)
zero
} negative values of physical quantities are impossible

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 Linear Programming Other
Assumptions
1. We assume here fixed technology.
} Fixed technology refers to the fact that the production
requirements are fixed during the planning period and will not
change in the period.
2. It is assumed that the profit contribution of a product
remains constant,
} irrespective of level of production and sales.
3. It is assumed that the decision variables are
continuous.
} It means that the companies manufacture products in
fractional units.
} For example, company manufacture 2.5 vehicles, 3.2 barrels
of oil etc. This is referred too as the assumption of divisibility

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 Linear Programming Other
Assumptions
4. It is assumed that only one decision is required for
the planning period.
} This condition shows that the linear programming
model is a static model, which implies that the linear
programming problem is a single stage decision
problem.
} (Note: Dynamic Programming problem is a multistage
decision problem).
5. All variables are restricted to nonnegative values
} (i.e., their numerical value will be ≥ 0).

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 Product Mix Problem 2
} The Shader Electronics Company produces two products: (1) the
Shader Walkman, a portable CD/DVD player, and (2) the
Shader Watch-TV, a wristwatch-size internet-connected color
television.
} The production process for each product is similar in that both
require a certain number of hours of electronic work and a
certain number of labor-hours in the assembly department.
} Each Walkman takes 4 hours of electronic work and 2 hours in
the assembly shop.
} Each Watch-TV requires 3 hours in electronics and 1 hour in
assembly.
} During the current production period, 240 hours of electronic
time are available, and 100 hours of assembly department time
are available.
} Each Walkman sold yields a profit of $7; each Watch-TV
produced may be sold for a $5 profit. Shader’s problem is to
determine the best possible combination of Walkmans and
Watch-TVs to manufacture to reach the maximum profit.
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 Product Mix Problem 2

X1= number of Walkmans to be produced

X2= number of watch TV’s to be produced Decision Variables

4X1 + 3X2 <=240 Time Constraints

2X1 + X2 <=100

X1, X2 >=0 Non-negativity Constraints

Z=7X1 + 5X2 Objective

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Formulation 2 – production Planning

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 Formulation 3 – production Planning
— Notations (Decision Variables)

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 Formulation 3 – production Planning
} Notations (Objective Functions and Constraints)

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 Formulation 3 – production Planning
} Notations (Other formulation)

Z1=X1+Y1-800

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 Formulation 4- Media Selection
Problem
} Problem:
} A company wants to advertise their product in four
different media, TV, newspaper, website and radio. The
reach per advertisement in these four media are 8000,
5000, 3000 and 2000. The cost per advertisement is 4M,
3M, 2M and 1.5M. The maximum number of
advertisement that the company wishes to have in each
media is 3, 4, 5 and 4 respectively. How many
advertisement does the company decide in each media to
maximize the reach if the allowable budget is 32M.

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 Formulation 4- Media Selection
Problem
} Understanding the problem:
} Reach per advertisement
} 8000- TV; 5000- Newspaper; 3000- websites; 2000- radio

} Each advertisement is going to cost:

} 4M-TV; 3M-Newspaper; 2M-website; 1.5M- radio

} The company does not want to have large number of

advertisement in a single media, so it restricts the number of
advertisement it wishes per media as 3-TV, 4-Newspaper, 5-
Website and 4-radio.

} The allowable budget of the company for all these

advertisements is 32M.

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 Formulation 4- Media Selection
Problem
} Formulating LP:
} So the problem is how many advertisements does the
company decide to each of the media so that over-all
reach will be maximized.

} Decision Variable:
} X1 number of advertisement in TV
} X2 number of advertisement in Newspaper
} X3 number of advertisement in Website
} X4 number of advertisement in radio

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 Formulation 4- Media Selection
Problem
} Formulating LP:
} So the problem is how many advertisements does the
company decide to each of the media so that over-all
reach will be maximized.

} Objective Function
} Maximize the total reach, which is the sum of reach associated
to each of the media
} Z=8000X1+5000X2+3000X3+2000X4

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 Formulation 4- Media Selection
Problem
} Formulating LP:
} So the problem is how many advertisements does the company
decide to each of the media so that over-all reach will be
maximized.

} Constraints
} Budget Restriction
} 4X1+3X2+2X3+1.5X4<=32 in million
} Number of advertisements per media Constraints
} X1<=3
} X2<=4
} X3<=5
} X4<=4
} Nonnegativity Constraints
} X1,X2,X3 and X4>=0

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 Blending Problem:
Whole Food Nutrition Center
Making a natural cereal that satisfies minimum daily
nutritional requirements

Decision: How much of each of 3 grains to include in

the cereal?

Objective: Minimize cost of a 2 ounce`(0.125 pounds)

serving of cereal

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 Grain
A B C
(X1) (X2) Minimum (X3)
Daily
$ per pound $0.33 $0.47 $0.38
Requirement
Protein per
22 28 21 3
pound
Riboflavin per
16 14 25 2
pound
Phosphorus
8 7 9 1
per pound
Magnesium
5 0 6 0.425
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 Decision Variables
X1 = pounds of grain A to use
X2 = pounds of grain B to use
X3 = pounds of grain C to use

Note: grains will be blended to form a 2 ounce (0.125

pounds) serving of cereal

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 Objective Function (in $ of cost)

Min 0.33X1 + 0.47X2 + 0.38X3

Subject to the constraints:

Total Blend is 2 Ounces, or 0.125 Pounds

X1 + X2 + X3 = 0.125 (lbs)

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 Minimum Nutritional Requirements
22X1 + 28X2 + 21X3 > 3 (protein)
16X1 + 14X2 + 25X3 > 2 (riboflavin)
8X1 + 7X2 + 9X3 > 1 (phosphorus)
5X1 + 6X3 > 0.425 (magnesium)

Finally nonnegativity: X1, X2, X3 > 0

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 Seatwork
} A company manufactures two products X and Y,
which require, the following resources. The
resources are the capacities machine M1, M2, and
M3. The available capacities are 50,25,and 15 hours
respectively in the planning period. Product X
requires 1 hour of machine M2 and 1 hour of
machine M3. Product Y requires 2 hours of machine
M1, 2 hours of machine M2 and 1 hour of machine
M3. The profit contribution of products X and Y are
Rs.5/X and Rs.4/Y respectively.

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} In the above problem, Products X and Y are
competing candidates or variables.
} Machine capacities are available resources
} Profit contribution of X and Y are also given

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} Solving
Problems under Linear
Programming using Graphical
Method

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} Consider the Linear Programming Problem
formulated

} Maximize 10X1 + 9X2

} Subject to
} 3X1 + 3X2 ≤ 21
} 4X1 + 3X2 ≤ 24
} X1, X2 ≥ 0

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 Graphical Method
8

6 Non-negativity
X2 ≥ 0 Constraints
5

2
X1 ≥ 0
1

0
0 1 2 3 4 5 6 7

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 Graphical Method
8

7
3X1 + 3X2 =21
6

3
1st Constraint
2
3X1 + 3X2 ≤ 21

0
0 1 2 3 4 5 6 7

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 Graphical Method
8

6 `4X1 + 3X2 =24

4
3X1 + 3X2 =21
3
2nd Constraint
2
4X1 + 3X2 ≤ 24

0
0 1 2 3 4 5 6 7

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 Graphical Method
8
Feasible Region:
7 It satisfies all the
given constraints
6

4 Common Region
3

0
0 1 2 3 4 5 6 7

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 Graphical Method
8
Now try to pick up any points inside the
7 feasible region then solve for the value
of objective function Z=10X1+9X2
6
Try How about increasing the
5 (1,1) value of X1 by fixing X2 to
0?
4 How about increasing the
value of X2 by fixing X1 to
3
0?
2

0
0 1 2 3 4 5 6 7

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 Graphical Method
8
As we go farther from the origin the
7 value of objective function increases
until it reaches the boundary region.
6
On the boundary regions, as we move
5 to the corner points, the objective
function might increase or decrease,
4 meaning that corner points are sufficient
points to evaluate when minimizing or
3 maximizing
2

0
0 1 2 3 4 5 6 7

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 Graphical Method
8 So we try to evaluate the objective
function for all the corner points in the
7 feasible region
(0,7)
6 With these corner points we could
Z=63
determine that corner points (3,4) has
5 the maximum value for the objective
function, thus this is the optimal feasible
4 solution.
(3,4)
3 Z=66

1
(0,0) (6,0)
0
Z=0 Z=60
0 1 2 3 4 5 6 7

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 Graphical Method
What if we just try to assign As we increase 10X1 +9X2
8 constant value to our to a constant and keep
objective function and try to increasing, the objective
7
plot it in the graph. function lines become
6 parallel to each other and
move in the direction
5 towards the optimal point
before it goes out of the
4 10X feasible region.
10X 1+
1+ 9X
3 9X 2=
10X 2= 66
1+ 60
2 9X
2=
50
1

0
0 1 2 3 4 5 6 7

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 Graphical Method
} General Steps:
} First define the mathematical model of the problem
} Plot the given constraints including the non-negativity
constraints
} Find the feasible region or the common region for all the
constraints (means it is where all the constraints are
satisfied)
} Determine the corner points in the feasible region
} Solve for the value of objective function for all the corner
points.
} Determine the corner points that provide the maximum
value (maximization) or minimum value (minimization) of
the objective function

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 LP Characteristics
} Feasible Region: The set of points that satisfies all
constraints
} Corner Point Property: An optimal solution must lie
at one or more corner points
} Optimal Solution: The corner point with the best
objective function value is optimal

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 Corner Point Solution
} Property 1
a. If there is exactly one optimal solution, then it MUST be a
corner-point feasible solution.
b. If there are multiple optimal solutions, then atleast TWO must
be adjacent corner-point feasible solution.
} Property 2
} There are only finite number of corner point feasible solutions.
} This property suggest that that an optimal solution can be
obtained just by exhaustive enumeration (solving all the corner
points of the feasible region)
} Property 3
} If a corner point feasible solution is better (as measured by Z)
than all its adjacent corner point feasible solutions, then it is
better than all other corner point feasible solutions (it is
already the optimal)

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 Corner Point Solution
} Property 3
} If a corner point feasible solution is better (as measured
by Z) than all its adjacent corner point feasible solutions,
then it is better than all other corner point feasible
solutions (it is already the optimal)
} The significance of property 3 provides convenient test of
whether a corner point feasible solution is optimal without
enumerating all possible solutions.
} In particular, it repeatedly moves (iterate) from the current
corner point feasible solutions to a better adjacent corner
point until the current corner point solution does not have
any better adjacent corner point feasible solution.

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Graphical Method : Minimization

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 Graphical Method: Minimization
} The approach is the same as in the maximization

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} Consider the Linear Programming Problem
formulated

} Minimize 7X1 + 5X2

} Subject to
} X1 + X2 ≥ 4
} 5X1 + 2X2 ≥ 10
} X1, X2 ≥ 0

} Since X1 and X2 are both greater than or equal to

zero, so we will be only looking on the first quadrant.
} Let us plot the constraints, considering the horizontal
axis as X1 and vertical axis as X2

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 Graphical Method
X2
5
What region is the ≥ 4?
Try to substitute a
4 point say (0,0).
With this we could see
that the ≥ 4 region is
3 the shaded area

1
X1 + X2 = 4

0 X1
0 1 2 3 4 5 6 7

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 Graphical Method
5

3 5X1 + 2X2 = 10

0
0 1 2 3 4 5 6 7

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 Graphical Method
5

3 New Feasible
Region
2

X1 + X2 = 4
1

0
0 1 2 3 4 5 6 7

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 Graphical Method
5
(0,5) Evaluating the value of objective
Z= 25 function for all the corner points
4 of the feasible region
(2/3,10/3)
3 Z= 21.33

X1 + X2 = 4
1 Minimum Z
corner points
(4,0)
Z= 28
0
0 1 2 3 4 5 6 7

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 Graphical Method
5
(0,5) As
Try we decrease
to plot 7X1 +5X2
for different valuetoofa
Z= 25 constant
objective and keep decreasing,
function
4 the objective function lines
become parallel to each other
(2/3,10/3) and move in the direction
3 Z= 21.33 towards the optimal point before
it goes out of the feasible region.
2

X1 + X2 = 4
1
(4,0)
Z= 28
0
0 1 2 3 4 5 6 7

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 Activity
} A patient consult a doctor to check up his ill health. Doctor
examines him and advises him that he is having deficiency of
two vitamins, vitamin A and vitamin D. Doctor advises him to
consume vitamin A and D regularly for a period of time so that he
can regain his health. Doctor prescribes tonic X and tonic Y,
which are having vitamin A, and D in certain proportion. Also
advises
the patient to consume at least 40 units of vitamin A and 50 units
of vitamin Daily. The cost of tonics X and Y and the proportion of
vitamin A and D that present in X and Y are given in the table
below. Formulate l.p.p. to minimize the cost of tonics.

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 FORMULATION

} Objective: Minimize Z= 5x + 3y
} Constraints:
} 2x +4y ≥ 40 ; for Vitamin A
} 3x +2y ≤ 50 ; for Vitamin D

} x, y ≥ 0

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 Special Situation in LP
1. Redundant Constraints - do not affect the
feasible region

Example: x < 10
x < 12
The second constraint is redundant because it is
less restrictive.

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 Special Situation in LP
2. Infeasibility – when no feasible solution exists
(there is no feasible region)

Example: x < 10
x > 15

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 Special Situation in LP

3. Alternate Optimal Solutions – when there is

more than one optimal solution

2T
Max 2T + 2C 10

+
2C
Subject to: All points on

=
20
T + C < 10 Red segment
6
T < 5 are optimal
C< 6
T, C > 0
0
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 Special Situation in LP

4. Unbounded Solutions – when nothing prevents

the solution from becoming infinitely large

C i o n
ct i on
Max 2T + 2C i re l u t
D so
Subject to: 2 of
2T + 3C > 6
T, C > 0 1

0
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 Graphical Method
} Observation:
} Given two decision variable, we could find the optimal
solution using graphical method.
} It is not necessary to evaluate all the points in the feasible
region, evaluation of the corner points will give us the
optimal solution

} Questions:
} What if we have a linear programming problem that
will involve more than two variables?

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