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Non linear programming (1)

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Youssef El-Sayed
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4 views

Non linear programming (1)

Uploaded by

Youssef El-Sayed
Copyright
© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Non linear

programming
B Y: Y O U S E F A K R A M

YA S S E N

Y O U S E F E L S AY E D
Introduction

• Non linear optimization problem is any optimization problem in


which at least one term in the objective function or a constraint is non
linear.
example: F(x)=X2 +2x+20
Continuation

 Many business processes behave in a nonlinear manner


 For example, the price of a bond is a nonlinear function of interest rates , and
the price of a stock option is a nonlinear function of the price of the underlying
stock
The marginal cost of production often decreases with the quantity produced, and
the quantity demanded for a product is usually a nonlinear function of the price
These and many other nonlinear relationship are present in many business
applications.
Types of constraints

With equality constraints (lagrange’s method)


With no constraints
With in equlality constraints (excel solver)
Lagrange method
The method of lagrange multipliers is a general mathematical technique that can
be used for solving constrained optimization problems consisting of nonlinear
objective function and one or more linear constraint equation
In the method of lagrange multipliers, constraints as multiples of multipliers,
λ ,are subtracted from the objective function , which then differentiated with
respect to each variable and solved.
Example
Example
Example
Example
No constraints
Let us consider a revision of the parc, Inc.. Problem where they deicded to manufacture standard
and deluxe golf bags
In formulating the linear programming model for this problem, we assumed that it could sell all
of the standard and deluxe bags it could produce
However, depending on the price of the golf bags , this assumption may not hold
An inverse relationship usually exists between price and demand
No constraints
No constraints
As prices goes up the demand decreases
Let Ps denote the price charged for each standard bag and Pd denote the price for each deluxe
bag
Assume the demand for standard bags “s” and the demand for deluxe bags “D” given by

S=2250-15Ps
D=1500-5Pd
Profit contributions
Profit contribution of standard bags
Ps*S-70S
Profit contribution
Profit contribution for deluxe bags
Pd*D-150D
Excel solver
Constrained problems
Using a computer solution method, we find that the values of S and D that maximize the profit
contribution function are S = 600 and D = 375.
The corresponding prices are 110$ for standards bags and 225$ for deluxe bags and the profit
contribution is 52115$
Unfortunately, the company cannot make the profit contribution associated with the optimal
solution to the unconstrained problem because the constraints defining the feasible regions are
violated
EXCEL SOLVER

 A production quantity of 600 standard bags and 375


deluxe bags will require 7/100 (600) +375 = 795 hours,
which exceeds the limit of 630 hours by 165 hours.

 The feasible region for the original problem along with


the unconstrained optimal solution point (600,375) as
seen earlier.
Excel solver
 As we can see the profit decreases as the constraints
are present .
 In the constraint section, the value of 0 in constraint
1 means the optimal solution uses all the labors
hours in the cutting and dyeing section, but in other
sections there are slack hours
Optimal solution

The graph shows that the optimal solution is


49,920.55$ that satisfies every constraint in the
company and to produce 459.177 standard bags
and 308 deluxe bags.

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