17-10-2022

Linear Programming
Models

Dr. Rachita Gupta

Assistant Professor (Operations Management and Decision Sciences)
IIM Kashipur

Introduction

• LP is a method to achieve the best outcome in a mathematical model whose

requirements are represented by linear relationships.
• Management decisions involve the most effective use of resources
• Most widely used modeling technique is linear programming (LP)
• Deterministic models

• Assumptions
• Certainty exists
• Proportionality
• Additivity
• Divisibility

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Developing a LP Model
All LP models can be viewed in terms of the three distinct steps

1. Formulation of simple mathematical expressions

2. Solution to identify an optimal (or best) solution to the model
3. Interpretation of the results and answer “what if?” questions

Properties of a LP Model
1. Seek to maximize of minimize a some quantity
2. Restrictions or constraints
3. Alternative courses of action
4. Linear equations or inequalities
(=, ≤, ≥)

• A furniture company produces inexpensive tables and chairs. The production process is similar in that
both requires certain number of labor hours in the carpentry department and a certain number of labor
hours in the painting department.

• Each table takes 3 hours of carpentry work and 2 hours of painting work.
• Each chair requires 4 hours of carpentry and 1 hour of painting.
• During the current month, 2400 hours of carpentry and 1000 hours of painting time are available.

• The marketing department wants the company to make no more than 450 new chairs due to sizable
existing inventory of chairs.
• However, as the inventory for tables is low, they want the company to make at least 100 tables this
month.

• Each table sold results in a profit contribution of $7, and each chair sold yields a profit contribution of
$5.
• Determine the best possible combination of tables and chairs to manufacture this month in order to
attain maximum profit.

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Model Matrix
TABLES (T) CHAIRS (C) LIMIT
Profit Contribution $7 $5
Carpentry 3 hrs 4 hrs 2,400
Painting 2 hrs 1 hr 1,000
Chairs 0 unit 1 unit 450
Tables 1 unit 0 unit 100

Example: Formulating a LP Model

A product mix problem
• Decide how much to make of two or more products
• Objective is to maximize profit
• Limited resources
• Furniture: Best combination of tables and chairs

1. Decision Variables
• What we are solving for
• Two variables in the Flair problem
• Number of tables (T, Tables or X1)
• Number of chairs (C, Chairs or X2)

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2. The Objective Function: States the goal of a problem

Objective is often to maximize profit or minimize cost

For Furniture example:

Profit = ($7 profit per table) x (number of tables produced)

+ ($5 profit per chairs) x (numbers of chairs produced)

Using decision variables T and C

Maximize $7T + $5C

3. Constraints: Restrictions or limits on our decisions

• As many as necessary

For Furniture Example:

It has four constraints
(a). Carpentry time:3T + 4C ≤ 2,400
(b). Painting time:2T + 1C ≤ 1,000
(c). Chairs sold: C ≤ 450
(d). Tables sold: T ≥ 100

Carpentry time: (3 hours per table) x (number of tables produced)

+ (4 hours per chair) x (number of chairs produced)
There are 2,400 hours of time available => 3T + 4C ≤ 2,400

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• Nonnegativity
• Decision variables must be ≥ 0, so

T ≥ 0, and
C≥0

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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Graphical Solution

• Complete model

Maximize profit = $7T + $5C

Subject to
3T + 4C ≤ 2,400(carpentry time)
2T + 1C ≤ 1,000(painting time)
C ≤ 450 (maximum chairs allowed)
T ≥ 100 (maximum tables allowed)
T, C ≥ 0 (nonnegativity)

Graphical Representation

1,000 –
–
Number of Chairs (C)

800 – (T = 0, C = 600)
–
600 – Carpentry Constraint Line
–
400 – (T = 400, C = 300)
–
200 –
(T = 800, C = 0)
–
0–
| | | | | | | | | | | |
0 200 400 600 800 1,000

Number of Tables(T)

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Graphical Representation
1,000 –
–
Region Satisfying
Number of Chairs (C)

800 – 3T + 4C ≤ 2,400
–
600 – (T = 300, C = 200)
–
400 – (T = 600, C = 400)
–
200 –
–
0–
| | | | | | | | | | | |
0 200 400 600 800 1,000

Number of Tables(T)

Maximize profit = $7T + $5C

Subject to
3T + 4C ≤ 2,400 (carpentry time)
2T + 1C ≤ 1,000 (painting time)
(T = 0, C = 1,000)
C ≤ 450 (maximum chairs allowed)
1,000 –
(T = 100, C = 700) T ≥ 100 (minimum tables)
–
Number of Chairs (C)

(T = 0, C = 600) T, C ≥ 0 (nonnegativity)
800 –
– Painting Constraint
600 –
(T = 300, C = 200)
–
Carpentry Constraint
400 –
– (T = 500, C = 200)
200 – (T = 500, C = 0)
– (T = 800, C = 0)
0–
| | | | | | | | | | | |
0 200 400 600 800 1,000

Number of Tables(T)

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Maximize profit = $7T + $5C

Subject to
3T + 4C ≤ 2,400 (carpentry time)
2T + 1C ≤ 1,000 (painting time)
C ≤ 450 (maximum chairs allowed)
T ≥ 100 (minimum tables)
T, C ≥ 0 (nonnegativity)

Using Level Lines Maximize profit = $7T + $5C

Subject to
3T + 4C ≤ 2,400 (carpentry time)
2T + 1C ≤ 1,000 (painting time)
C ≤ 450 (maximum chairs allowed)
T ≥ 100 (minimum tables)
T, C ≥ 0 (nonnegativity)

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Special Situations
1. Redundant Constraints
• Example: Changed constraint in Furniture problem

T ≥ 100 becomes T ≤ 100

• 2. Infeasibility
• No one solution satisfies all the constraints
• Changed constraint in Furniture problem

T ≥ 100 becomes T ≥ 600

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3. Alternate Optimal Solutions

• More than one solution satisfies all the constraints
• Changed objective in Furniture problem; overlap of objective
function line on constraint line.
$7T + $5C becomes $6T + $3C

4. Unbounded Solution
• May or may not have a finite solution
• Usually improper formulation

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