UNIT THREE: INTRODUCTION TO LINEAR PROGRAMMING

INTRODUCTION
Linear programming- is an optimization method which shows how to allocate scarce
resources in the best possible way subject to more than one limiting condition expressed
in the form of inequalities and /or equations. It
- enables users to find optional solution to certain problems in which the solution
must satisfy a given set of requirements or constraints.
- Optimization in linear programming implies either maximization (max) Profit,
We can’t
max/min two revenue, sales, market share or minimization (min) Cost, time, distance, or a
quantities in one
model. certain objective function.
- Involves linearly related multi-variety functions i.e. functions with more than one
independent variables.
- The goal in linear programming is to find the best solution given the constraints
imposed by the problem, hence the term constrained optimization.
LINEAR PROGRAMMING MODELS
Lp models are mathematical representation of lp problems. Some models have a
specialized format where as others have a more generalized format. Despite this, lpms
have certain characteristics in common knowledge of these characteristics enables us to
recognize problems that are amenable to a solution using lp models and to correctly
formulate an lp model. The characteristics can be grouped into two categories:
components and assumptions.
assumptions. The components relate to the structure of a model, where
as the assumptions describe the conditions under which the model is valid.
Components Assumptions
1. Objective function 1. Linearity
2. Decision variables Model 2. Divisibility
Model
3. Constraints Structure 3. Certainty Validity
4. Parameters and Right. 4. Non-negativity
Hand Side Values
Components of LP Model
a) The Objective function: is the mathematical/ quantitative expression of the
objective of the company/ model. The objective in problem solving is the criterion
by which all decisions are evaluated. In LPMs a single quantifiable objective must
be specified by the decision maker. For example, the objective might relate to
profits, or costs or market share, best to only one of these. Moreover, because we
are dealing with optimization, the objective will be either maximization or
minimization, but not both at a time
b) The Decision Variables: represent unknown quantities to be resolved for. These
decision variables may represent such things as the:
- number of units of different products to be sold
- the # of dollars to invest in various projects

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 - the # of ads to place with different media
Since the decision maker has freedom of choice among actions, these decision variables
are controllable variables.
c) The constraints: are restrictions which define or limit the attainability
(achievability) feasibility of a proposed course of action. They limit the degree to
which the objective can be pursued.
A typical restriction embodies scarce resources (such as labor supply, RMs, production
capacity, machine time, storage space), legal or contractual requirements (leg. Product
standards, work standards), or they may reflect other limits based on forecasts, customer
orders, company policies etc.
d) Parameters- are fixed values that specify the impact that one unit of each decision
variable will have on the objective and on any constraint it pertains to as well as
to the numerical value of each constraint.
The components are the building blocks of an LP model.model. We can better understand their
meaning by examining a simple LP model as follows.
Example:
Maximize: 4X + 7y + 5z (profit)… objective function subject to
2X + 3y + 6z < 300 labor hrs
5X + 4z < 200 raw mata. System
3X + 5y + 2z < 360 Constraints
X = 30 Individual
X – quantity of product 1 y < 40 Constraints
Variables
Decision

Y - quantity of product 2 X, y, z 0 Non negativity constructs

Z - quantity of product 3
System constraints-
constraints- involve more than one decision variables
Individual constraint-
constraint- involve only one decision variable.
Non-negativity constrains-
constrains- specify that no variable will be allowed to take on a negative
value. The non negativity constraints typically apply in an LP model, whether they are
explicitly stated or not.
Assumption of LP models
a) Linearity
The linearity requirement is that each decision variable has a linear impact on the
objective function and in each constraint in which it appears. Taking the above example,
producing one more unit of products add br 4 to the total profit. This is true over the
entire range of possible values of x. The same applies (true) to each of the constraints.
b) Divisibility: The divisibility requirement pertains to potential values of decision
variables. If is assumed that non-integer values are acceptable. For example: 3.5 TV sets/
hr would be acceptable 7TV sets/ 2hr.

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c) Certainty: The parameters are known and constant. The certainty requirement
involves two aspects of LP models. The constraint equations do not change.
(1) With respect to model parameters (i.e. the numerical values) –If is assumed that
these values are known and constant. Eg. In the above example each unit of product
1 requires 2 labor hours is known and remain constant, and also the 300 labor
available is deemed to be known and constant.
(2) All the relevant constraints identified and represented in the model are as they are.
d) Non-negativity-
Non-negativity- The non-negativity constraint is that negative values of variables are
unrealistic and, therefore, will not be considered in any potential solutions, only positive
values and zero will be allowed.
FORMULATING LP MODELS
Once a problem has been defined, the attention of the analyst shifts to formulating a
model. Just as it is important to carefully formulate the model that will be used to solve
the problem. If the LP model is ill formulated, ill-structured, it can easily lend to poor
decisions.
Formulating linear programming models involves the following steps:
1) Define the problem/ problems definition:
definition: to determine the no. of type 1 and type 2
products to be produced per month so as to maximize the monetary profit given
the restriction.
2) Identify the decision variables or represent unknown quantities.
quantities.
* Let X and Y are the monthly quantities of type 1 and type 2 products.
3) Determine the objective function: Once the variables have been identified, the
objective function can be specified. It is necessary to decide if the problem is
maximization or a minimization problem and the coefficients of each decision
variable.
4) Identify the constraints
- system constraints- more than one variable
- individual constraints- one variable
- Non-negativity constraints.
Example 1
An electronic firm is undecided at the most profitable mix for its products. The products
manufactured are transistors, resistors and carbon tubes with a profit of (per 100 units)
US $ 10, $6 and $4 respectively. To produce a shipment of transistors containing 100
units requires 1 hour of engineering, 10 hours of direct labor and 2 hours of
administrative service. To produce 100 units of resistors requires 1 hour, 4 hours and 2
hours of engineering, direct labor and administrative time respectively. For 100 unit of
carbon tubes it needs 1 hour, 6 hours and 5 hours of engineering, direct labor and
administrative time respectively. There are 100 hours of engineering time, 600 hours of
direct labor and 300 hours of administrative time available. Formulate the corresponding
LPP.

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Solution:
Let the firm produce x hundred units of transistors, y hundred units of resistors and z
hundred units of carbon tubes. Then the total profit to be maximized from this out put
will be
Z = 10x + 6y + 4z
Now the production of x hundred units of transistors, y hundred units of resistors and z
hundred unit of carbon tubes will require
x + y + z hours of engineering time
10x + 4y + 6z hours of direct labour time and
2x + 2y + 5z hours of administrative service
But the total time available for engineering, direct labour and administrative services is
100, 600 and 300 hours respectively. Hence the constraints are
x + y + z < 100
10x + 4 y + 6z < 600
2x + 2y + 5z < 300 with x,y,z > 0
Thus formulated LPP is
Maximize z = 10x + 6y + 4z
s/t x + y + z < 100
10x + 4 y + 6z < 600
2x + 2y + 5z < 300
Where x, y, z > 0 as the non-negativity restriction
2. In this problem, a patient visits the doctor to get treatment for ill health. The doctor
examines the patient and advises him to consume at least 40 units of vitamin A and 50
units of vitamin B daily for a specified time period. He also advises the patient that to get
vitamin A and vitamin B he has to drink tonic one and tonic two that have both vitamin A
and vitamin B in a proportion. One unit of tonic one consists 2 units of vitamin A and 3
units of vitamin B and one unit of tonic two consists of 4 units of vitamin A and 2 units
of vitamin B. These tonics are available in medical shops at a cost of birr 3.00 and birr
2.50 per unit of tonic one and two respectively. Formulate LP model.
Let the patient purchase ‘x’‘x’ units of tonic one and ‘y’ ‘y’ units of tonic two then the
inequalities are (Note: the condition given in the problem is AT LEAST hence the
inequalities are of ≥ type)
Minimize Z = 3 x + 2.5 y objective function
Subject to 2 x + 4 y ≥ 40 structural constraints
3 x + 2 y ≥ 50
And both x and y are ≥ 0. Non-negativity constraints
SOLUTION APPROACHES TO LINEAR PROGRAMMING PROBLEMS
There are two approaches to solve linear programming problems.
1. The graphic solution method
2. The algebraic solution/ simplex algorithm
The Graphic solution Method
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It’s a relatively straight forward method for determining the optional solution to certain
linear programming problems.
It gives us a clear picture.
This method can be used only to solve problems that involve two decision variables.
However, most linear programming applications involve situations that have more than
two decision variables, so the graphic approach is not used to solve these.
Steps in Graphical Method
Step I. Formulate the LP model.
Step II. Convert the in equalities in to equalities to obtain graphical form of the
constraints. Draw the line of each constraint, first putting x=0 to find the value of y and
then putting y=0 to find the value of x. Then draw the line for the values of x and y which
represents that particular constraint. Once the lines are drawn for all the constraints,
identify the feasible area by shading the area below the line for the constraint < and
shading above the line for the constraint > type.
Step III. Identify the extreme points of the feasible area and name the corners.
Step IV. Evaluate the objective function Z for all points of feasible region.
Step V. In case of maximizing objective function Z, the corner point of feasible region
giving the maximum value of Z becomes the value of decision variables. Similarly in
minimizing case, the point of minimum value of Z gives the answer.
Example 1 (problem of Maximizing Z)
Two commodities P1 and P2 are to be produced. The profit Margin on P 1 is $ 8 and on P2
is $ 6. Both the commodities are required to be processed through two different
machines. Sixty hours of time are available on I machine and forty eight hours of time are
available on II machine. One unit of P1 requires 4 hours of time in machine I and 2 hours
of time on machine II. Similarly, one unit of P 2 requires 2 hours of time on machine I and
4 hours of time on machine II. Determine the number of units of P 1 and P2 to be produced
in order to maximize the profits using graphical method?
Solution:
Step I. Formulate LP Problem.
The information available can be put into structural matrix form as follow.
Commodities
Requirement Total
P1 P2
Machine I 4 2 60
Machine II 2 4 48
Profit $ per unit 8 6 -

Let x be number of units to be produced for P1

Let y be number of units to be produced for P2
X and y are unknown decision variables.
Objective function is profit maximization and can be expressed as.

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 Max Z= 8x + 6y
The given constraints are time and machine and can be converted into linear relations as
follow:
4x + 2y < 60 (i)
2x + 4y < 48 (ii)
Where x, y > 0 non-negativity condition.
Step II. Convert constraint inequalities in to equalities, draw respective lines and
determine feasible polygon (area).
Taking constraint (i)
4x + 2y = 60
at x axes, y = 0 ∴ 4x= 60 or x =15
at y, axes, x = 0 ∴ 2y = 60 or y = 30
By these coordinates (15,30) we get line BD in graph. Similarly, taking constraint (ii).
2x + 4y = 48
at x axes, y = 0 ∴ 2x= 48 or x =24
at y, axes, x = 0 ∴ 4y = 48 or y = 12
By these coordinates (24,12) we get line AE in graph.
Now, any point on line BD satisfies (i) constraint and any point on line AE satisfies (ii)
constraint. The constraints cannot be violated, they must be satisfied. Any solution which
satisfies all the know constraints is called optimal solution. Since both the constraints are
of the type < hence any point on the right hand side (RHS) of BD or AE becomes
infeasible area/solution for which we are not concerned.

Y 30 B

25

20

15
12A
10
C
5
D E
O 5 10 15 20 24 25 30
4x + 2y = 60 2x+4y=48

Evaluate the objective function Z= 8x1 + 6x2 for all points of feasible region i.e. O,A,C,D.

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At point O profit is zero ∴ Z=O
At point A y=12, x=0 ∴ Z=12x6=72
At point D x=15, y=0 ∴ Z=15x8=120
At point C x=12, y=6 ∴ Z=12x8+6x6=132
(from graph)
Step V. Z is maximizing objective function, hence the point with maximum value of Z is
the optimal solution point.
Therefore at point C (Z=132) with x=12 and y=6 is the optimal point.
Example 2: Solving the diet problem with graphic approach.
C min = 5X + 8y
10X + 30y > 140 10X + 30y = 140
20X + 15y >145 X=0 y= 4.767
y X,y>0 y = 0 x = 14
20x + 15y = 145 x = 0 y = 9.67
15 y=0 x
= 7.25

10 A
9.67

5
4.67 B
C X
5 7.25 10 14 15
Value of objective
Coordinates Function min Z = 5X + 8X2
Points X1 X2
A 0 9.67 77.3 birr
B 5 3 49 birr
C 14 0 70 birr
Basic solution X = 5 pounds y = 3 pounds Cost = 49 br.
Interpretation to make the diet the minimum cost of br 49 we have to purchase 5
pounds of type 1 food and 3 pounds type 2 food.

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