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Module 2 - Linear Programming

Science

Uploaded by

John Rick Padran
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© © All Rights Reserved
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11 views

Module 2 - Linear Programming

Science

Uploaded by

John Rick Padran
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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Linear

Programming
Model Formulation and
Graphical Solution

Prepared by:
John Rafael R. Pelo, CPA
Introduction

• Most of the managers in a company focuses on


the best way to achieve the objectives of the firm,
subject to different restrictions.
• Objectives of a business frequently are to
maximize profit or minimize cost.
• When a manager attempts to solve a general type
of problem by seeking an objective that is subject
to restrictions, the management science technique
called linear programming is frequently used
Linear Programming
Linear programming is a model that consist of
linear relationship representing a firm’s
decision(s), given an objective and resource
constraints.
Model Formulation

Define the decision variables.


1

2 Define the objective function

3 Define the constraints


Model Components

Decision variables Objective function Model constraint Parameters

• Decision variables • Objective function • Model constraint is • Parameters are


are mathematical is a linear a linear relationship actual numerical
symbols that relationship that that represents a values that are
represent levels of reflects the restriction on included in the
activity. objective of an decision making. objective functions
The firm desires to produce
operation. Limited resources to
and constraints.
40 hrs labor
Maximize profit or
X radios Minimize cost produce a product. 20 SP
Y clocks 40 hrs. of labor available 5 cost
Z toasters
Example:
(Maximization Problem)
The two products have the following resource
requirements for production and sales per
item produced (i.e., the model parameters):
Model Formulation

Define the decision variables.


How many mugs and bowls to produce
1 X= number of mugs to produce
Y= number of bowls to produce

Define the objective function


Maximize profit. Sum of profits gained from sale of bows and mugs
2 Z= $40x + $50y

Define the constraints


The resources (labor and clay) available
3 Labor: 1x + 2y ≤ 40
Clay: 4x + 3y ≤ 120
Non-negativity constraints

• Non-negativity constraints restrict the


decision variables to zero or positive values.

• Why? Because it is impossible to produce


negative items.

• These are expressed mathematically as:


X≥0,y≥0
The complete linear
programming model for this
problem can now be
summarized as follows:
Maximize Z= $40x + $50y
Subject to:
1x + 2y ≤ 40
4x + 3y ≤ 120
X≥0,y≥0
Additional terms used in
linear programming
• Feasible solution- a solution that does not
violate any of the constraints.
• Infeasible solution- a solution that violates
any of the constraints.

Remember:
The goal of linear programming is to maximize
profit without violating the constraints.
Graphical Solutions of Linear
Programming
• Following the formulation of a mathematical model,
the next stage in the application of linear
programming to a decision-making problem is to find
the solution of the model. A common solution
approach is to solve algebraically the set of
mathematical relationships.
• Because the relationships are linear, some models and
solutions can be illustrated graphically.
• The graphical method is realistically limited to models
with only two decision variables, which can be
represented on a graph of two dimensions
• The graphical method provides a picture of how a
solution is obtained for a linear programming problem.
Additional terms used in
linear programming
• Feasible solution area- is an area on the
graph that is bounded by the constraint
equations.
• Infeasible solution area- is an area on the
graph that is unbounded by the constraint
equations.
• Optimal solution point- optimal solution refers
to the point where the objective function
reaches its maximum value, subject to the
given constraints.
• Extreme points- are corner points on the
boundary of the feasible solution area and
those points do not violate the constraint
equation.
Slack Variable

• Slack variable represents unused resources. It


is added to a ≤ constraint to convert it to an
equation.
• There is a standard procedure for transforming
inequality constraints into equations. This
transformation is achieved by adding a new
variable, called a slack variable, to each
constraint.
• A slack variable contributes nothing to the
objective function value
Example:
(Maximization Problem)
Example:
(Minimization Problem)
A farmer is preparing to plant a crop in the spring and needs to fertilize a field. There
are two brands of fertilizer to choose from, Super-gro and Crop-quick. Each brand
yields a specific amount of nitrogen and phosphate per bag, as follows:

The farmer’s field requires at least 16 pounds of nitrogen and at least 24 pounds of
phosphate Super-gro costs $6 per bag, and Crop-quick costs $3. The farmer wants to know
how many bags of each brand to purchase in order to minimize the total cost of fertilizing.
Example:
Model Formulation

Define the decision variables.


How many bags of Super-gro and Cropquick to buy
1 X= number of bags of Super-gro to purchase
Y= number of bags of Cropquick to purchase

Define the objective function


Minimize the cost
2 Z= $6x + $3y

Define the constraints


The field requirements of nitrogen and phosphate
3 Nitrogen: 2x + 4y ≥ 16
Phosphate: 4x + 3y ≥ 24
Non-negativity constraints

• Non-negativity constraints restrict the


decision variables to zero or positive values.

• Also applies to minimization type of


problems,

• Why? Because it is impossible to purchase


negative items

• These are expressed mathematically as:


X≥0,y≥0
The complete linear
programming model for this
problem can now be
summarized as follows:
Minimize Z= $6x + $3y
Subject to:
2x + 4y ≥ 16
4x + 3y ≥ 24
X≥0,y≥0
Surplus Variable

• A surplus variable represents an excess above


a constraint requirement level. It is subtracted
from a ≥ constraint to convert it to an equation.
• There is a standard procedure for transforming
inequality constraints into equations. This
transformation is achieved by substracting a
new variable, called a surplus variable, to
each constraint.
• A surplus variable also contributes nothing to
the objective function value
THANK YOU

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