Linear Programming

Module 2

Introduction To Linear Programming

Today many of the resources needed as inputs to operations are in limited supply. Operations managers must understand the impact of this situation on meeting their objectives. Linear programming (LP) is one way that operations managers can determine how best to allocate their scarce resources.

Linear Programming (LP)

A model consisting of linear relationships representing a firms objective and resource constraints

LP is a mathematical modeling technique used to determine a level of operational activity in order to achieve an objective, subject to restrictions called constraints

Linear Programming (LP) in OM

There are five common types of decisions in which LP may play a role Product mix Production plan Ingredient mix Transportation Assignment

LP Model Formulation
Decision variables Depends on the type of the LP problem These variables are controllable The variables can be the quantities of the resources to be allocated or the number of units to be produced or sold The decision maker has to determine the value of these variables Objective function a linear relationship reflecting the objective of an operation most frequent objective of business firms is to maximize profit most frequent objective of individual operational units (such as a production or packaging department) is to minimize cost Constraint a linear relationship representing a restriction on decision making

LP Problems on Product Mix

Objective To select the mix of products or services that results in maximum profits for the planning period Decision Variables How much to produce and market of each product or service for the planning period Constraints Maximum amount of each product or service demanded; Minimum amount of product or service policy will allow; Maximum amount of resources available

LP Problems on Production Plan

Objective To select the mix of products or services that results in maximum profits for the planning period Decision Variables How much to produce on straight-time labor and overtime labor during each month of the year Constraints Amount of products demanded in each month; Maximum labor and machine capacity available in each month; Maximum inventory space available in each month

Recognizing LP Problems
Characteristics of LP Problems A well-defined single objective must be stated. There must be alternative courses of action. The total achievement of the objective must be constrained by scarce resources or other restraints. The objective and each of the constraints must be expressed as linear mathematical functions.

Steps in Formulating LP Problems

1. 2. 3. 4. 5. 6. 7. 8. Define the objective. (min or max) Define the decision variables. (positive, binary) Write the mathematical function for the objective. Write a 1- or 2-word description of each constraint. Write the right-hand side (RHS) of each constraint. Write <, =, or > for each constraint. Write the decision variables on LHS of each constraint. Write the coefficient for each decision variable in each constraint.

Example: LP Formulation
Cycle Trends is introducing two new lightweight bicycle frames, the Deluxe and the Professional, to be made from aluminum and steel alloys. The anticipated unit profits are $10 for the Deluxe and $15 for the Professional. The number of pounds of each alloy needed per frame is summarized on the next slide. A supplier delivers 100 pounds of the aluminum alloy and 80 pounds of the steel alloy weekly. How many Deluxe and Professional frames should Cycle Trends produce each week?

Example: LP Formulation
Pounds of each alloy needed per frame
Aluminum Alloy Deluxe 2 Professional 2 Steel Alloy 3 4

Example: LP Formulation
Define the objective
Maximize total weekly profit

Define the decision variables

x1 = number of Deluxe frames produced weekly x2 = number of Professional frames produced weekly

Write the mathematical objective function

Max Z = 10x1 + 15x2

Example: LP Formulation
Write a one- or two-word description of each constraint
Aluminum available Steel available

Write the right-hand side of each constraint

100 80

Write <, =, > for each constraint

< 100 < 80

Example: LP Formulation
Write all the decision variables on the lefthand side of each constraint
x1 x2 < 100 x1 x2 < 80

Write the coefficient for each decision in each constraint

+ 2x1 + 4x2 < 100 + 3x1 + 2x2 < 80

Example: LP Formulation
LP in Final Form
Max Z = 10x1 + 15x2 Subject To 2x1 + 4x2 < 100 ( aluminum constraint) 3x1 + 2x2 < 80 ( steel constraint) x1 , x2 > 0 (non-negativity constraints)

LP Model Formulation (cont.)

Max/min z = c1x1 + c2x2 + ... + cnxn a11x1 + a12x2 + ... + a1nxn (, =, ) b1 a21x1 + a22x2 + ... + a2nxn (, =, ) b2 : am1x1 + am2x2 + ... + amnxn (, =, ) bm xj = decision variables bi = constraint levels cj = objective function coefficients aij = constraint coefficients

subject to:

LP Model: Example
RESOURCE REQUIREMENTS PRODUCT Bowl Mug Labor (hr/unit) 1 2 Clay (lb/unit) 4 3 Revenue ($/unit) 40 50

There are 40 hours of labor and 120 pounds of clay available each day Decision variables x1 = number of bowls to produce x2 = number of mugs to produce

LP Formulation: Example
Maximize Z = 40 x1 + 50 x2 Subject to x1 + 2x2 40 hr (labor constraint) 4x1 + 3x2 120 lb (clay constraint) x1 , x2 0 Solution is x1 = 24 bowls Revenue = 1,360 x2 = 8 mugs

Example: LP Formulation
Montana Wood Products manufacturers twohigh quality products, tables and chairs. Its profit is Rs15 per chair and Rs 21 per table. Weekly production is constrained by available labor and wood. Each chair requires 4 labor hours and 8 board feet of wood while each table requires 3 labor hours and 12 board feet of wood. Available wood is 2400 board feet and available labor is 920 hours. Management also requires at least 40 tables and at least 4 chairs be produced for every table produced. To maximize profits, how many chairs and tables should be produced?
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Example: LP Formulation
Define the objective Maximize total weekly profit Define the decision variables x1 = number of chairs produced weekly x2 = number of tables produced weekly Write the mathematical objective function Max Z = 15x1 + 21x2

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Example: LP Formulation
Write a one- or two-word description of each constraint Labor hours available Board feet available At least 40 tables At least 4 chairs for every table Write the right-hand side of each constraint 920 2400 40 4 to 1 ratio Write <, =, > for each constraint < 920 < 2400 > 40 4 to 1 21

Example: LP Formulation

Write all the decision variables on the left-hand side of each constraint

x1 x2 < 920 x1 x2 < 2400 x2 > 40 4 to 1 ratio x1 / x2 4/1 + 4x1 + 3x2 < 920 + 8x1 + 12x2 < 2400 x2 > 40 x1 4 x 2

Write the coefficient for each decision in each constraint

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Example: LP Formulation

LP in Final Form Max Z = 15x1 + 21x2 Subject To 4x1 + 3x2 < 920 ( labor constraint) 8x1 + 12x2 < 2400 ( wood constraint) x2 - 40 > 0 (make at least 40 tables) x1 - 4 x2 > 0 (at least 4 chairs for every table) x1 , x 2 > 0 (non-negativity constraints)

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Example: LP Formulation
The Sureset Concrete Company produces concrete. Two ingredients in concrete are sand (costs Rs 6 per ton) and gravel (costs Rs 8 per ton). Sand and gravel together must make up exactly 75% of the weight of the concrete. Also, no more than 40% of the concrete can be sand and at least 30% of the concrete be gravel. Each day 2000 tons of concrete are produced. To minimize costs, how many tons of gravel and sand should be purchased each day?

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Example: LP Formulation
Define the objective Minimize daily costs Define the decision variables x1 = tons of sand purchased x2 = tons of gravel purchased Write the mathematical objective function Min Z = 6x1 + 8x2

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Example: LP Formulation
Write a one- or two-word description of each constraint

75% must be sand and gravel No more than 40% must be sand At least 30% must be gravel .75(2000) .40(2000) .30(2000) = 1500 < 800 > 600

Write the right-hand side of each constraint

Write <, =, > for each constraint

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Example: LP Formulation
Write all the decision variables on the left-hand side of each constraint x1 x2 = 1500 x1 < 800 x2 > 600 Write the coefficient for each decision in each constraint + x1 + x2 = 1500 + x1 < 800 x2 > 600

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Example: LP Formulation

LP in Final Form Min Z = 6x1 + 8x2 Subject To x1 + x2 = 1500 ( mix constraint) x1 < 800 ( mix constraint) x2 > 600 ( mix constraint ) x1 , x 2 > 0 (non-negativity constraints)

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LP Problem

Galaxy Ind. produces two water guns, the Space Ray and the Zapper. Galaxy earns a profit of Rs3 for every Space Ray and Rs2 for every Zapper. Space Rays and Zappers require 2 and 4 production minutes per unit, respectively. Also, Space Rays and Zappers require .5 and .3 pounds of plastic, respectively. Given constraints of 40 production hours, 1200 pounds of plastic, Space Ray production cant exceed Zapper production by more than 450 units; formulate the problem such that Galaxy maximizes profit.
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LP Model
R = # of Space Rays to produce Z = # of Zappers to produce

Max Z = 3.00R + 2.00Z ST 2R + 4Z 2400 cant exceed available hours (40*60) .5R + .3Z 1200 cant exceed available plastic R - S 450 Space Rays cant exceed Zappers by more than 450 R, S 0 non-negativity constraint
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Graphical Solution Method

1. Plot model constraint on a set of coordinates in a plane 2. Identify the feasible solution space on the graph where all constraints are satisfied simultaneously 3. Plot objective function to find the point on boundary of this space that maximizes (or minimizes) value of objective function

Graphical Solution: Example

x2 50

40
30

4 x1 + 3 x2 120 lb

20
10

Area common to both constraints

x1 + 2 x2 40 hr
| 10 | 20 | 30 | 40 | 50 | 60 x1

x2

Computing Optimal Values

4 x1 + 3 x2 120 lb

40 30 20 10 0

x1 + 2x2 = 40 4x1 + 3x2 = 120 4x1 + 8x2 = 160 -4x1 - 3x2 = -120 5x2 = x2 = x1 + 2(8) = x1 = 40 8 40 24

x1 + 2 x2 40 hr
8 24 | 10 | 20 | 30 | x1 40

Z = 50(24) + 50(8) = 1,360

Extreme Corner Points

x2
40 30 20 10

x1 = 0 bowls x2 =20 mugs Z = 1,000

x1 = 224 bowls x2 =8 mugs Z = 1,360 x1 = 30 bowls x2 =0 mugs Z = 1,200

A B
| 10 | 20 | C| 30 40

x1

Objective Function
40

4x1 + 3x2 120 lb Z = 70x1 + 20x2 Optimal point: x1 = 30 bowls x2 =0 mugs Z = $2,100

30

x2

20 A

10

B | C 30

x1 + 2x2 40 hr
| 40

| 10

| 20

x1

Minimization Problem
Two brands of fertilizer available - Super-gro, Crop-quick. Field requires at least 16 pounds of nitrogen and 24 pounds of phosphate. Super-gro costs $6 per bag, Crop-quick $3 per bag. Problem : How much of each brand to purchase to minimize total cost of fertilizer given following data ?

CHEMICAL CONTRIBUTION
Brand Gro-plus Crop-fast Nitrogen (lb/bag) 2 4 Phosphate (lb/bag) 4 3

Minimize Z = $6x1 + $3x2 subject to 2x1 + 4x2 16 lb of nitrogen 4x1 + 3x2 24 lb of phosphate x1, x2 0

Graphical method
Complete model formulation: minimize Z = $6x1 + 3x2 subject to

2x1 + 4x2 16 lb of
nitrogen 4x1 + 3x2 24 lb of phosphate

x1, x2 0

A Minimization Model Example Feasible Solution Area

minimize Z = $6x1 + 3x2 subject to 2x1 + 4x2 16 lb of nitrogen 4x1 + 3x2 24 lb of phosphate x1, x2 0

A Minimization Model Example Optimal Solution Point

minimize Z = $6x1 + 3x2 subject to 2x1 + 4x2 16 lb of nitrogen 4x1 + 3x2 24 lb of phosphate x1, x2 0

Irregular Types of Linear Programming Problems

For some linear programming models, the general rules do not apply. Special types of problems include those with: 1. Multiple optimal solutions 2. Infeasible solutions 3. Unbounded solutions

Multiple Optimal Solutions

Objective function is parallel to a constraint line:

maximize Z=$40x1 + 30x2 subject to 1x1 + 2x2 40 hours of labor 4x2 + 3x2 120 pounds of clay x1, x2 0 where x1 = number of bowls x2 = number of mugs

An Infeasible Problem

Every possible solution violates at least one constraint:

maximize Z = 5x1 + 3x2 subject to 4x1 + 2x2 8

x1 4
x2 6 x1, x2 0

An Unbounded Problem

Value of objective function increases indefinitely:

maximize Z = 4x1 + 2x2

subject to x1 4 x2 2 x1, x2 0