Chapter 7 Linear Programming Models: Graphical and Computer Methods

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2003 by Prentice Hall, Inc. Upper Saddle River, NJ 07458

Learning Objectives
Students will be able to:
Understand the basic assumptions and properties of linear programming (LP). Formulate small to moderatesized LP problems. Graphically solve any LP problem with two variables by both the corner point and isoline methods.

To accompany Quantitative Analysis for Management, 8e by Render/Stair/Hanna

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2003 by Prentice Hall, Inc. Upper Saddle River, NJ 07458

Learning Objectives continued

Understand special issues in LP - infeasibility, unboundedness, redundancy, and alternative optima. Understand the role of sensitivity analysis. Use Excel spreadsheets to solve LP problems.

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2003 by Prentice Hall, Inc. Upper Saddle River, NJ 07458

Chapter Outline
7.1 Introduction 7.2 Requirements of a Linear Programming Problem 7.3 Formulating LP Problems 7.4 Graphical Solution to an LP

Problem
7.5 Solving Flair Furnitures LP Problem using QM for Windows

and Excel
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2003 by Prentice Hall, Inc. Upper Saddle River, NJ 07458

Chapter Outline continued

7.6 Solving Minimization Problems 7.7 Four Special Cases 7.8 Sensitivity Analysis in LP

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Examples of Successful LP Applications

1. Development of a production schedule that will satisfy future demands for a

firms production and at the same time

minimize total production and inventory costs 2. Selection of the product mix in a factory to make best use of machinehours and labor-hours available while maximizing the firms products

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2003 by Prentice Hall, Inc. Upper Saddle River, NJ 07458

Examples of Successful LP Applications

3. Determination of grades of petroleum products to yield the maximum profit

4. Selection of different blends of raw

materials to feed mills to produce finished feed combinations at minimum

cost
5. Determination of a distribution system that will minimize total shipping cost from several warehouses to various market locations
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2003 by Prentice Hall, Inc. Upper Saddle River, NJ 07458

Requirements of a Linear Programming Problem

All problems seek to maximize or minimize some quantity (the objective function). The presence of restrictions or constraints, limits the degree to which we can pursue our objective. There must be alternative courses of action to choose from. The objective and constraints in linear programming problems must be expressed in terms of linear equations or inequalities.
To accompany Quantitative Analysis for Management, 8e by Render/Stair/Hanna

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2003 by Prentice Hall, Inc. Upper Saddle River, NJ 07458

Basic Assumptions of Linear Programming

Certainty

Proportionality
Additivity Divisibility Nonnegativity

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2003 by Prentice Hall, Inc. Upper Saddle River, NJ 07458

Flair Furniture Company Data - Table 7.1

Hours Required to Produce One Unit
Department T C Tables Chairs Available Hours This Week 240 100

Carpentry Painting &Varnishing Profit Amount

4 2 $7

3 1 $5

Constraints: 4T + 3C 240 (Carpentry) 2T + 1C 100 (Paint & Varnishing) Objective: Max: 7T + 5C

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Flair Furniture Company Constraints

120 100

Number of Chairs

Painting/Varnishing
80 60 40

Carpentry
20 0

20
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40
7-11

60

80

100

Number of Tables
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Flair Furniture Company Feasible Region

120

Number of Chairs

Painting/Varnishing

100 80 60

Carpentry
40 20 0 20 40
7-12

Feasible Region
60 80 100

Number of Tables
To accompany Quantitative Analysis for Management, 8e by Render/Stair/Hanna 2003 by Prentice Hall, Inc. Upper Saddle River, NJ 07458

Flair Furniture Company Isoprofit Lines

120 100

Painting/Varnishing 7T + 5C = 210 7T + 5C = 420

Number of Chairs

80 60 40 20 0

Carpentry

20

40

60

80

100

Number of Tables
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2003 by Prentice Hall, Inc. Upper Saddle River, NJ 07458

Flair Furniture Company Optimal Solution

120 100

Isoprofit Lines
Painting/Varnishing

Number of Chairs

80 60 40

Solution (T = 30, C = 40) Carpentry

20
0 20
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40

60
7-14

80

100

Number of Tables
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Flair Furniture Company Optimal Solution

120

2
100

Corner Points
Painting/Varnishing

Number of Chairs

80 60 40

Solution (T = 30, C = 40) 3 Carpentry

20

1
0 20

4 60 80 Number of Tables
40
7-15

100

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2003 by Prentice Hall, Inc. Upper Saddle River, NJ 07458

Flair Furniture - QM for Windows

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Flair Furniture - Excel

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Holiday Meal Turkey Ranch

Minimize: 2 X1 + 3 X 2 Subject to : 5 X1 + 10 X 2 90 ( A) (B)

4 X1 + 3 X 2 48
X1

11/2 (C)

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2003 by Prentice Hall, Inc. Upper Saddle River, NJ 07458

Holiday Meal Turkey Problem

Corner Points

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Holiday Meal Turkey Problem

Isoprofit Lines

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Special Cases in LP
Infeasibility
Unbounded Solutions Redundancy Degeneracy More Than One Optimal Solution

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A Problem with No Feasible Solution

X2

8
6 4

Region Satisfying 3rd Constraint

2
0

X1

Region Satisfying First 2 Constraints

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A Solution Region That is Unbounded to the Right

X2 15

X1 > 5

X2 < 10

10

Feasible Region
X1 + 2X2 > 10

10

15

X1

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A Problem with a Redundant Constraint

X2 30 25

2X1 + X2 < 30

20
15 10 5 0

Redundant Constraint
X1 < 25

X1 + X2 < 20

Feasible Region
X1

10

15
7-24

20

25

30

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2003 by Prentice Hall, Inc. Upper Saddle River, NJ 07458

An Example of Alternate Optimal Solutions

8 7 6 5 4 3 2 1 A

Optimal Solution Consists of All Combinations of X1 and X2 Along the AB Segment Isoprofit Line for $8
B AB

Isoprofit Line for $12 Overlays Line Segment

5 6 7 8

0
1 2 3 4

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Sensitivity Analysis
Changes in the Objective
Function Coefficient

Changes in Resources (RHS)

Changes in Technological

Coefficients

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Changes in the Technological Coefficients for High Note Sound Co.

(a) Original Problem
X2
60 3X1 + 1X2 < 60 40 Stereo Receivers 20 0 a b 2X1 + 4X2 < 80 d c 20 40 X1 20 e 30 40 X1 Optimal Solution a 2X1 + 4X2 < 80 Still Optimal 2X1 + 1X2 < 60

(b) Change in Circled X2 Coefficient

CD Players
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CD Players
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2003 by Prentice Hall, Inc. Upper Saddle River, NJ 07458

Changes in the Technological Coefficients for High Note Sound Co.

(a) Original Problem
X2 60 3X1 + 1X2 < 60 40 Stereo Receivers 20 0 a b c 20 40 CD Players
To accompany Quantitative Analysis for Management, 8e by Render/Stair/Hanna

(c) Change in Circled X2 Coefficient

3X1 + 1X2 < 60

Optimal Solution

Optimal Solution 2X1 + 5X2 < 80 f g c

2X1 + 4X2 < 80

X1

20

40

X1

CD Players
7-28
2003 by Prentice Hall, Inc. Upper Saddle River, NJ 07458