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2) Linear Programming Problems

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Harshit Chauhan
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7 views

2) Linear Programming Problems

Uploaded by

Harshit Chauhan
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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Introduction to

Linear Programming Problems


Prescriptive or Optimization Models:

Most of the models discussed in this course will be prescriptive or


optimization models.

A prescriptive model “prescribes” behavior for an organization that


will enable it to best meet its goal(s). The components of a prescriptive
model include:

1. objective function(s)
2. decision variables
3. constraints

In short, an optimization model seeks to find values of the decision


variables that optimize (maximize or minimize) an objective function
among the set of all values for the decision variables that satisfy the
given constraints.
The Objective Function

• In most models, there will be a function we wish to maximize or


minimize. This function is called the model’s objective function.
• In many situations, an organization may have more than one objective.

The Decision Variables

• The variables whose values are under our control and influence the
performance of the system are called decision variables.
• Most of the course will be devoted to a discussion of how to determine
the value of decision variables that maximize (sometimes minimize) an
objective function.

Constraints

• In most situations, only certain values of decision variables are possible.


• Restrictions on the values of decision variables are called constraints.
There are several assumptions on which the linear programming
works, these are:

Proportionality:

The basic assumption underlying the linear programming is that any


change in the constraint inequalities will have the proportional
change in the objective function. This means, if product contributes Rs
20 towards the profit, then the total contribution would be equal to
20x1, where x1 is the number of units of the product.

For example, if there are 5 units of the product, then the contribution
would be Rs 100 and in the case of 10 units, it would be Rs 200. Thus, if
the output (sales) is doubled, the profit would also be doubled.
Additivity:

The assumption of additivity asserts that the total profit of


the objective function is determined by the sum of profit
contributed by each product separately.

Similarly, the total amount of resources used is


determined by the sum of resources used by each product
separately.

This implies, there is no interaction between the decision


variables.
Continuity / Divisibility:

Another assumption of linear programming is that the decision


variables are continuous. This means a combination of outputs can
be used with the fractional values along with the integer values.

For example,

If 5 ⅔ units of product A and 10 ⅓ units of product B to be produced


in a week. In this case, the fractional amount of production will be
taken as a work-in-progress and the remaining production part is
taken in the following week. Therefore, a production of 17 units of
product A and 31 units of product B over a three-week period
implies 5 ⅔ units of product A and 10 ⅓ units of product B per week.
Certainty:

Another underlying assumption of linear programming is a


certainty, i.e. the parameters of objective function coefficients and
the coefficients of constraint inequalities is known with certainty.
Such as profit per unit of product, availability of material and
labor per unit, requirement of material and labor per unit are
known and is given in the linear programming problem.

Finite Choices:

An optimal solution cannot be computed in the situation where


there is infinite number of alternative activities and resources
restriction. This assumption implies that the decision maker has
certain choices, and the decision variables assume non-negative
values..
Binding and Non-binding Constraints

Once the optimal solution to an LP has been found, it is useful to classify each
constraint as being a binding constraint or a non-binding constraint.

o A constraint is binding if the left-hand side and the right-hand side of the
constraint are equal when the optimal values of the decision variables are
substituted into the constraint.

Thus, (2) and (3) are binding constraints.

o A constraint is non-binding if the left-hand side and the right-hand side of the
constraint are unequal when the optimal values of the decision variables are
substituted into the constraint.

Because x1 = 20 is less than 40, (4) is a non-binding constraint.


Some Exceptional Cases

We can encounter three types of LPPs that do not have unique optimal
solutions.

1. Some LPPs have an infinite number of optimal solutions (alternative or


multiple optimal solutions).

2. Some LPPs have no feasible solutions (infeasible LPPs).

3. Some LPPs are unbounded: There are points in the feasible region with
arbitrarily large (in a max problem) z-values.

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