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Introduction to LPP

INTRODUCTION
⚫ It is an optimization method applicable for the solution of
optimization problem where objective function and the
constraints are linear.
⚫ It was first applied in 1930 by economist, mainly in solving
resource allocation problem During World War II, the US
Air force sought more effective procedure for allocation of
resources George B. Dantzig, a member of the US Air Force
formulate general linear problem for solving the resources
allocation problem.
“A Linear Programming Problem is one that is concerned
with finding the optimal value (maximum or minimum value)
of a linear function (called objective function) of several
variables (say x and y), subject to the conditions that the
variables are non-negative and satisfy a set of linear
inequalities (called linear constraints). The term linear
implies that all the mathematical relations used in the
Problem: All products manufactured are shipped out of the
storage area at the end of the day. Therefore, the two
products must share the total raw material, storage space,
and production time. The company wants to determine
how many units of each product to produce per day to
maximize its total income.
Solution
⚫ The company has decided that it wants to maximize its
sale income, which depends on the number of units of
product I and II that it produces.
⚫ Therefore, the decision variables, x1 and x2 can be the
number of units of products I and II, respectively,
produced per day.
• The object is to maximize the equation:
Z = 13x1 + 11x2
subject to the constraints on storage space, raw materials, and
production time.

• Each unit of product I requires 4 ft2 of storage space and each unit of
product II requires 5 ft2. Thus a total of 4x1 + 5x2 ft2 of storage space is
needed each day. This space must be less than or equal to the
available storage space, which is 1500 ft2. Therefore,
4X1 + 5X2 ≤ 1500
• Similarly, each unit of product I and II produced requires 5 and 3 1bs,
respectively, of raw material. Hence a total of 5xl + 3x2 Ib of raw
material is used.

BCN67755
Decision and Risk Syed M. Ahmed, Ph.D.
• This must be less than or equal to the total amount of raw material
available, which is 1575 Ib. Therefore,
5x1 + 3x2 ≤ 1575
• Prouct I can be produced at the rate of 60 units per hour. Therefore, it
must take I minute or 1/60 of an hour to produce I unit. Similarly, it
requires 1/30 of an hour to produce 1 unit of product II. Hence a total
of x1/60 + x2/30 hours is required for the daily production. This quantity
must be less than or equal to the total production time available each
day. Therefore,
x1 / 60 + x2 / 30 ≤
7 or x1 + 2x2 ≤ 420

• Finally, the company cannot produce a negative quantity of any


product, therefore x1 and x2 must each be greater than or equal to zero.

BCN67755
Decision and Risk Syed M. Ahmed, Ph.D.
• The linear programming model for this example can be summarized as:

…..Eq (4)

BCN67755
Decision and Risk Syed M. Ahmed, Ph.D.
Graphical Solution to LP
Problems
Linear Programming Problem (LPP) is a mathematical technique
used for optimizing a linear objective function, subject to a set of
linear inequality or equality constraints. This method is widely
used in various fields such as economics, business, engineering,
and military applications to achieve the best outcome, such as
maximizing profit or minimizing cost, within a given set of
limitations.
Methods for Solving LPP:
The LPP can be solved using various methods such as:
1.Graphical Method: Suitable for problems with two variables.
2.Simplex Method: An iterative procedure for solving linear programming problems with
more than two variables.
Formulation of LPP:
1.Define the Decision Variables: Identify the unknowns to be determined.
2.Construct the Objective Function: Formulate the linear function
representing the objective of the problem.
3.Formulate the Constraints: Establish the system of linear inequalities or
equalities that describe the limitations.
4.Include the Non-negativity Restriction: Ensure the decision variables are
non-negative.
Key Components of LPP:
1.Objective Function: This is the function that needs to be maximized or minimized. It is typically a linear function of the
decision variables.

Maximize or Minimize Z=c1x1 + c2x2 + …+cnxn


where Z is the objective function, c1,c2,…,cn are coefficients, and x1,x2,…,xn are decision variables.
1.Constraints: These are the restrictions or limitations on the decision variables. They are expressed as linear
inequalities or equalities.

a11x1+a12x2+…+a1nxn≤b1
a21x1+a22x2+…+a2nxn≤b2

am1x1+am2x2+…+amnxn≤ bm
where a are the coefficients, x are the decision variables, and b are the constraints'
bounds.
ij j ij
Non-negativity Restriction: The decision variables are often required to be non-negative, i.e.
x1≥0, x2≥0, ………xn≥0
Applications of LPP:
1.Resource Allocation: Optimizing the allocation of limited resources like
time, money, and materials.
2.Production Planning: Determining the optimal production mix to maximize
profit or minimize costs.
3.Transportation: Finding the most efficient routing and scheduling of
transportation.
4.Diet Planning: Creating a diet plan that meets nutritional requirements at
the minimum cost.
Linear programming is a powerful tool that helps in making informed and
optimal decisions in various real-life situations.

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