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Linear Programming: Model Formulation and Graphical Solution

The document discusses linear programming, which uses linear algebraic relationships to represent business decisions given an objective like maximizing profit or minimizing costs. It outlines the steps in applying linear programming as identifying the problem, formulating a mathematical model with decision variables, objective function and constraints, and solving the model. It also describes the components of a linear programming model and assumptions like proportionality, additivity, divisibility and certainty.

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Kerby Christian Araneta Ondoy
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© © All Rights Reserved
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Download as PPTX, PDF, TXT or read online on Scribd
140 views

Linear Programming: Model Formulation and Graphical Solution

The document discusses linear programming, which uses linear algebraic relationships to represent business decisions given an objective like maximizing profit or minimizing costs. It outlines the steps in applying linear programming as identifying the problem, formulating a mathematical model with decision variables, objective function and constraints, and solving the model. It also describes the components of a linear programming model and assumptions like proportionality, additivity, divisibility and certainty.

Uploaded by

Kerby Christian Araneta Ondoy
Copyright
© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 7

Linear Programming:

Model Formulation
and Graphical
Solution

2-1
Linear Programming: An
Overview
 Objectives of business decisions frequently involve
maximizing profit or minimizing costs.
 Linear programming uses linear algebraic
relationships to represent a firm’s decisions, given a
business objective, and resource constraints.
 Steps in application:
1. Identify problem as solvable by linear
programming.
2. Formulate a mathematical model of the
unstructured problem.
3. Solve the model.
4. Implementation 2-2
Model Components

 Decision variables - mathematical symbols representing


levels of activity of a firm.
 Objective function - a linear mathematical relationship
describing an objective of the firm, in terms of decision
variables.
- this function is to be maximized or minimized.
 Constraints – requirements or restrictions placed on the firm
by the operating environment, stated in linear relationships of
the decision variables.
 Parameters - numerical coefficients and constants used in
the objective function and constraints.

2-3
Summary of Model Formulation
Steps

Step 1 : Clearly define the decision


variables

Step 2 : Construct the objective function

Step 3 : Formulate the constraints

2-4
Characteristics of Linear Programming
Problems

 A decision amongst alternative courses of action is required.


 The decision is represented in the model by decision
variables.
 function, thatencompasses
The problem the decision amaker wants toasachieve.
goal, expressed an objective
 Restrictions (represented by constraints) exist that limit
the extent of achievement of the objective.
 The objective and constraints must be definable by linear
mathematical functional relationships.

2-5
Assumptions of Linear Programming
Model
 Proportionality - The rate of change (slope) of the
objective function and constraint equations is constant.
 Additivity - Terms in the objective function and constraint
equations must be additive.
 Divisibility -Decision variables can take on any fractional
value and are therefore continuous as opposed to integer
in nature.
 Certainty - Values of all the model parameters are assumed
to be known with certainty (non-probabilistic).

2-6
Reference:

 Linear Programming -
http://www.uky.edu/~dsianita/300/online/LP.pdf
 Linear Programming -
https://www.onlinemathlearning.com/linear-programming-
example.html
 Linear Programming - https://www.youtube.com/watch?
v=Bzzqx1F23a8
 Linear Programming, Lecture 1. Introduction, simple
models, graphic solution -
https://www.youtube.com/watch?v=FdKgeeb4q3w

2-7

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