Linear Programming: Model Formulation and Graphical Solution

Chapter Topics
Model Formulation A Maximization Model Example Graphical Solutions of Linear Programming Models A Minimization Model Example Irregular Types of Linear Programming Models

Characteristics of Linear Programming Problems

Definition And Characteristics Of Linear Programming

Linear Programming is that branch of mathematical programming which is designed to solve optimization problems where all the constraints as will as the objectives are expressed as Linear function .It was developed by George B. Denting in 1947. Its earlier application was solely related to the activities of the second World War. However soon its importance was recognized and it came to occupy a prominent place in the industry and trade. 3

Linear Programming An Overview

Objectives of business firms frequently include maximizing profit or minimizing costs. Linear programming is an analysis technique in which linear algebraic relationships represent a firms decisions given a business objective and resource constraints.

Steps in application:
Identify problem as solvable by linear programming. Formulate a mathematical model of the unstructured problem. Solve the model.

TERMINOLOGY
A LINEAR PROGRAMMING PROBLEM IS SAID TO BE IN STANDARD FORM WHEN IT IS WRITTEN AS:

THE PROBLEM HAS M VARIABLES AND N CONSTRAINTS. IT MAY BE WRITTEN USING VECTOR TERMINOLOGY AS:

NOTE THAT A PROBLEM WHERE WE WOULD LIKE TO MINIMIZE THE COST FUNCTION INSTEAD OF MAXIMIZE IT MAY BE REWRITTEN IN STANDARD FORM BY NEGATING THE COST COEFFICIENTS Cj (CT).

Any vector x satisfying the constraints of the linear programming problem is called a feasible solution of the problem. Every linear programming problem falls into one of three categories: 1. Infeasible. A linear programming problem is infeasible if a

feasible solution to the problem does not exist; that is, there is no vector x for which all the constraints of the problem are satisfied. 2. Unbounded. A linear programming problem is unbounded if the constraints do not sufficiently restrain the cost function so that for any given feasible solution, another feasible solution can be found that makes a further improvement to the cost function. 3. Has an optimal solution. Linear programming problems that are not infeasible or unbounded have an optimal solution; that is, the cost function has a unique minimum (or maximum) cost function value. This does not mean that the values of the variables that yield that optimal solution are unique, however. 7

Model Components and Formulation

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, that is maximized or minimized
Constraints - 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 constraint equations.

STEPS FOR DEVELOPING AN ALGEBRAIC LP MODEL What decisions need to be made? Define each decision variable. What is the goal of the problem? Write down the objective function as a function of the decision variables. What resources are in short supply and/or what requirements must be met? Formulate the constraints as functions of the decision variables.
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Steps for Developing an LP Model in a Spreadsheet

Enter all of the data for the model. Make consistent use of rows and columns. Make a cell for each decision to be made (changing cells). Follow the same structure as the data. (Sometimes it is easier to do step 2 before step 1.) What is the goal of the problem? Enter the equation that measures the objective in a single cell on the worksheet (target cell). Typically: SUMPRODUCT (Cost Data, Changing Cells) or SUMPRODUCT (Profit Data, Changing Cells) What resources are in short supply and/or what requirements must be met? Enter all constraints in three consecutive cells on the spreadsheet, e.g., amount of resource used , <= , amount of resource available or amount attained , >= , minimum requirement 10

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Problem Definition A Maximization Model Example (1 of 2)

Product mix problem - Beaver Creek Pottery Company How many bowls and mugs should be produced to maximize profits given labor and materials constraints? Product resource requirements and unit profit:

Product Bowl Mug

Resource Requirements Labor Clay Profit (hr/unit) (lb/unit) ($/unit) 1 2 4 3 40 50

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Problem Definition A Maximization Model Example (2 of 3)

Resource Availability:
Decision Variables: Objective Function: Resource Constraints: Non-Negativity Constraints:

40 hrs of labor per day 120 lbs of clay

x1 = number of bowls to produce per day x2 = number of mugs to produce per day Maximize Z = $40x1 + $50x2 Where Z = profit per day 1x1 + 2x2 40 hours of labor 4x1 + 3x2 120 pounds of clay x1 0; x2 0

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Problem Definition A Maximization Model Example (3 of 3)

Complete Linear Programming Model:
Maximize Z = $40x1 + $50x2 subject to: 1x1 + 2x2 40 4x2 + 3x2 120 x1, x2 0

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Feasible Solutions
A feasible solution does not violate any of the constraints: Example x1 = 5 bowls x2 = 10 mugs Z = $40x1 + $50x2 = $700 Labor constraint check: 1(5) + 2(10) = 25 < 40 hours, within constraint Clay constraint check: 4(5) + 3(10) = 70 < 120 pounds, within constraint

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Infeasible Solutions
An infeasible solution violates at least one of the constraints: Example x1 = 10 bowls x2 = 20 mugs Z = $1400 Labor constraint check: 1(10) + 2(20) = 50 > 40 hours, violates constraint

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Graphical Solution of Linear Programming Models Graphical solution is limited to linear programming models containing only two decision variables (can be used with three variables but only with great difficulty). Graphical methods provide visualization of how a solution for a linear programming problem is obtained.

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The graphic solution procedure is one of the method of solving two variable Linear programming problems. It consists of the following steps:-

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Step I Defining the problem. Formulate the problem mathematically. Express it in terms of several mathematical constraints & an objective function. The objective function relates to the optimization aspect is, maximisation or minimisation Criterion.

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Step II Plot the constraints Graphically. Each inequality in the constraint equation has to be treated as an equation. An arbitrary value is assigned to one variable & the value of the other variable is obtained by solving the equation. In the similar manner, a different arbitrary value is again assigned to the variable & the corresponding value of other variable is easily obtained. These 2 sets of values are now plotted on a graph and connected by a straight line. The same procedure has to be repeated for all the constraints. Hence, the total straight lines would be equal to the total no of equations, each straight line representing one constraint equation. Q
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Coordinate Axes Graphical Solution of Maximization Model (1 of 12)

Maximize Z = $40x1 + $50x2 subject to: 1x1 + 2x2 40 4x2 + 3x2 120 x1, x2 0

Figure 2.1 Coordinates for Graphical Analysis

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Labor Constraint Graphical Solution of Maximization Model (2 of 12)

Maximize Z = $40x1 + $50x2 subject to: 1x1 + 2x2 40 4x2 + 3x2 120 x1, x2 0

Figure 2.1 Graph of Labor Constraint

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Labor Constraint Area Graphical Solution of Maximization Model (3 of 12)

Maximize Z = $40x1 + $50x2 subject to: 1x1 + 2x2 40 4x2 + 3x2 120 x1, x2 0

Figure 2.3 Labor Constraint Area

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Clay Constraint Area Graphical Solution of Maximization Model (4 of 12)

Maximize Z = $40x1 + $50x2 subject to: 1x1 + 2x2 40 4x2 + 3x2 120 x1, x2 0

Figure 2.4 Clay Constraint Area

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Both Constraints Graphical Solution of Maximization Model (5 of 12)

Maximize Z = $40x1 + $50x2 subject to: 1x1 + 2x2 40 4x2 + 3x2 120 x1, x2 0

Figure 2.5 Graph of Both Model Constraints

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Feasible Solution Area Graphical Solution of Maximization Model (6 of 12)

Maximize Z = $40x1 + $50x2 subject to: 1x1 + 2x2 40 4x2 + 3x2 120 x1, x2 0

Figure 2.6 Feasible Solution Area

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Objective Solution = $800 Graphical Solution of Maximization Model (7 of 12)

Maximize Z = $40x1 + $50x2 subject to: 1x1 + 2x2 40 4x2 + 3x2 120 x1, x2 0

Figure 2.7 Objection Function Line for Z = $800

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Alternative Objective Function Solution Lines Graphical Solution of Maximization Model (8 of 12)

Maximize Z = $40x1 + $50x2 subject to: 1x1 + 2x2 40 4x2 + 3x2 120 x1, x2 0

Figure 2.8 Alternative Objective Function Lines

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Optimal Solution Graphical Solution of Maximization Model (9 of 12)

Maximize Z = $40x1 + $50x2 subject to: 1x1 + 2x2 40 4x2 + 3x2 120 x1, x2 0

Figure 2.9 Identification of Optimal Solution

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Optimal Solution Coordinates Graphical Solution of Maximization Model (10 of 12)

Maximize Z = $40x1 + $50x2 subject to: 1x1 + 2x2 40 4x2 + 3x2 120 x1, x2 0

Figure 2.10 Optimal Solution Coordinates

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Corner Point Solutions Graphical Solution of Maximization Model (11 of 12)

Maximize Z = $40x1 + $50x2 subject to: 1x1 + 2x2 40 4x2 + 3x2 120 x1, x2 0

Figure 2.11 Solution at All Corner Points

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Optimal Solution for New Objective Function Graphical Solution of Maximization Model (12 of 12)

Maximize Z = $70x1 + $20x2 subject to: 1x1 + 2x2 40 4x2 + 3x2 120 x1, x2 0

Figure 2.12 Optimal Solution with Z = 70x1 + 20x2 44

Slack Variables
Standard form requires that all constraints be in the form of equations. A slack variable is added to a constraint to convert it to an equation (=). A slack variable represents unused resources. A slack variable contributes nothing to the objective function value.

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Linear Programming Model Standard Form

Max Z = 40x1 + 50x2 + s1 + s2 subject to:1x1 + 2x2 + s1 = 40 4x2 + 3x2 + s2 = 120 x1, x2, s1, s2 0 Where:
x1 = number of bowls x2 = number of mugs s1, s2 are slack variables

Figure 2.13 Solution Points A, B, and C with Slack

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Problem Definition A Minimization Model Example (1 of 7)

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 Super-gro Crop-quick Nitrogen (lb/bag) 2 4 Phosphate (lb/bag) 4 3
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Problem Definition A Minimization Model Example (2 of 7)

Decision Variables: x1 = bags of Super-Gro x2 = bags of Crop-Quick The Objective Function: Minimize Z = $6x1 + 3x2 Where: $6x1 = cost of bags of Super-Gro $3x2 = cost of bags of Crop-Quick

Model Constraints: 2x1 + 4x2 16 lb (nitrogen constraint) 4x1 + 3x2 24 lb (phosphate constraint) x1, x2 0 (non-negativity constraint)

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Model Formulation and Constraint Graph A Minimization Model Example (3 of 7)

Minimize Z = $6x1 + $3x2 subject to: 2x1 + 4x2 16 4x2 + 3x2 24 x1, x2 0

Figure 2.14 Graph of Both Model Constraints

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Feasible Solution Area A Minimization Model Example (4 of 7)

Minimize Z = $6x1 + $3x2 subject to: 2x1 + 4x2 16 4x2 + 3x2 24 x1, x2 0

Figure 2.15 Feasible Solution Area

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Optimal Solution Point A Minimization Model Example (5 of 7)

Minimize Z = $6x1 + $3x2 subject to: 2x1 + 4x2 16 4x2 + 3x2 24 x1, x2 0

Figure 2.16 Optimum Solution Point

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Surplus Variables A Minimization Model Example (6 of 7)

A surplus variable is subtracted from a constraint to convert it to an equation (=).

A surplus variable represents an excess above a constraint requirement level.

Surplus variables contribute nothing to the calculated value of the objective function. Subtracting slack variables in the farmer problem constraints: 2x1 + 4x2 - s1 = 16 (nitrogen) 4x1 + 3x2 - s2 = 24 (phosphate)

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Graphical Solutions A Minimization Model Example (7 of 7)

Minimize Z = $6x1 + $3x2 + 0s1 + 0s2 subject to: 2x1 + 4x2 s1 = 16 4x2 + 3x2 s2 = 24 x1, x2, s1, s2 0

Figure 2.17 Graph of Fertilizer Example

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Irregular Types of Linear Programming Problems

For some linear programming models, the general rules do not apply.

Special types of problems include those with:

Multiple optimal solutions Infeasible solutions

Unbounded solutions

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Multiple Optimal Solutions Beaver Creek Pottery Example

Objective function is parallel to a constraint line. Maximize Z=$40x1 + 30x2 subject to: 1x1 + 2x2 40 4x2 + 3x2 120 x1, x2 0 Where: x1 = number of bowls x2 = number of mugs
Figure 2.18 Example with Multiple Optimal Solutions

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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
Figure 2.19 Graph of an Infeasible Problem

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An Unbounded Problem

Value of objective function increases indefinitely: Maximize Z = 4x1 + 2x2 subject to: x1 4 x2 2 x1, x2 0

Figure 2.20 Graph of an Unbounded Problem

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Characteristics of Linear Programming Problems

A linear programming problem requires a decision - a choice amongst alternative courses of action.

The decision is represented in the model by decision variables.

The problem encompasses a goal, expressed as an objective function, that the decision maker wants to achieve. Constraints exist that limit the extent of achievement of the objective.

The objective and constraints must be definable by linear mathematical functional relationships.

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Properties of Linear Programming Models

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.
Divisability -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).

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Problem Statement Example Problem No. 1 (1 of 3)

Hot dog mixture in 1000-pound batches. Two ingredients, chicken ($3/lb) and beef ($5/lb). Recipe requirements: at least 500 pounds of chicken at least 200 pounds of beef Ratio of chicken to beef must be at least 2 to 1. Determine optimal mixture of ingredients that will minimize costs.

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Solution Example Problem No. 1 (2 of 3)

Step 1: Identify decision variables. x1 = lb of chicken

x2 = lb of beef
Step 2: Formulate the objective function. Minimize Z = $3x1 + $5x2 where Z = cost per 1,000-lb batch $3x1 = cost of chicken $5x2 = cost of beef
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Solution Example Problem No. 1 (3 of 3)

Step 3: Establish Model Constraints x1 + x2 = 1,000 lb x1 500 lb of chicken x2 200 lb of beef x1/x2 2/1 or x1 - 2x2 0 x1, x2 0 The Model: Minimize Z = $3x1 + 5x2 subject to: x1 + x2 = 1,000 lb x1 50 x2 200 x1 - 2x2 0 x1,x2 0
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Example Problem No. 2 (1 of 3)

Solve the following model graphically:

Maximize Z = 4x1 + 5x2

subject to: x1 + 2x2 10 6x1 + 6x2 36 x1 4 x1, x2 0

Step 1: Plot the constraints as equations

Figure 2.21 Constraint Equations

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Example Problem No. 2 (2 of 3)

Maximize Z = 4x1 + 5x2 subject to: x1 + 2x2 10 6x1 + 6x2 36 x1 4 x1, x2 0 Step 2: Determine the feasible solution space
Figure 2.22 Feasible Solution Space and Extreme Points

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Example Problem No. 2 (3 of 3)

Maximize Z = 4x1 + 5x2

subject to: x1 + 2x2 10 6x1 + 6x2 36

x1 4
x1, x2 0 Step 3 and 4: Determine the solution points and optimal solution
Figure 2.22 Optimal Solution Point

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