LPmodelsbom1101 PDF

BA 46
LINEAR PROGRAMMING
BOM 1101
LP MODELS
LP General
Graphical Method
Simplex Method
Transportation Method
Assignment Method
PYPITS ©Quantitative Analysis for Management

Ormoc City 2018 C7, 9 & 8-1
BA 46
LINEAR PROGRAMMING

C7, 9 & 8-2
BA 46
LINEAR PROGRAMMING
What is Linear Programming?
• Mathematical technique
– Not computer programming
• Allocates scarce resources to achieve an
objective
• Pioneered by George Dantzig in World War II
– Developed workable solution in 1947
• Called Simplex Method

C7, 9 & 8-3
BA 46
LINEAR PROGRAMMING
Linear Programming Applications
• Given machine and labor hours, find product
mix to maximize profit
• Given demand, schedule production to
minimize costs
• Given limited patrol cars, allocate police to
minimize response time
• Given minimum daily diet requirements, plan
menus to minimize cost
C7, 9 & 8-4
BA 46
LINEAR PROGRAMMING
Examples of Successful LP Applications
• Development of a production schedule that will
satisfy future demands for a firm’s products and at
the same time minimize total production and
inventory costs
• Selection of the product mix in a factory to make
best use of machine–hours and labor–hours
available while maximizing the firm’s profit
• Determination of grades of petroleum products to
yield the maximum profit
C7, 9 & 8-5
BA 46
LINEAR PROGRAMMING
Requirements of a Linear Programming Model
• Objective: the goal of an LP model is maximization
or minimization of some quantity.
• Constraints: limitations that restrict the objective
function.
• Decision variables: alternatives or courses of
action to choose from.
• Linearity: objective and constraints in linear
inequality or equations.
• Certainty: values of parameters are known and
constant. C7, 9 & 8-6
BA 46
LINEAR PROGRAMMING
Linear Programming Assumptions
• Proportionality: a ratio of resources against
utilization
• Additivity: total of all activities is equal to the sum
of individual activities
• Divisibility: non-integer values of decision
variables are acceptable
• Nonnegativity: negative values of decision
variables are unacceptable
C7, 9 & 8-7
BA 46
LINEAR PROGRAMMING
Graphical Linear Programming Procedures
• Define the problem
• Set up objective function and constraints in
mathematical format
• Plot the constraints
• Identify the feasible solution space
• Plot the objective function (iso profit/cost
method)
• Determine the corner points (corner point
method)
• Determine the optimum solution

C7, 9 & 8-8
BA 46
LINEAR PROGRAMMING
Washy-Washy Problem
A small chemical plant specializes in producing
two unique types of cleansing reagent, Clear All and
Delete All. Clear All requires a pound of compound A
and 4 pounds of compound B, while Delete All needs
3 pounds of compound A and 3 pounds of compound
B. Each pound of Clear All will yield a profit of 4,000
pesos and Delete All, a profit of 5,000 pesos. There
are only 12 pounds of compound A and 24 pounds of
compound B supplied daily.
How many of these reagents are to be
produced in order to maximize profit?
C7, 9 & 8-9
BA 46
LINEAR PROGRAMMING
Step 1 Washy-Washy Problem
Tabulated Information
Mixture Required to
Produce 1 Unit
X1 X2 Available Pounds
Clear All Delete All Daily
Compound A 1 3 12
Compound B 4 3 24
Profit/unit 4,000 5,000

C7, 9 & 8-10
BA 46
LINEAR PROGRAMMING
Washy-Washy Problem
Objective Function:
max Profit: Z = 4,000X1 + 5,000X2
Subject to:
compound A constraint : X1 + 3X2  12
compound B constraint : 4X1 + 3X2  24
non-negative: X1  0
X2  0

C7, 9 & 8-11
BA 46
LINEAR PROGRAMMING
Linear Programming Example
X2
12
Plot constraint 1
10 X1 + 3X2 = 12
8 X1 + 3X2  12
6
4
2
0
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
X1

C7, 9 & 8-12
BA 46
LINEAR PROGRAMMING
Linear Programming Example
12
Add constraint 2
10 4X1 + 3X2 = 24
8 4X1 + 3X2  24
constraint 1
6
X1 + 3X2 = 12
4 X1 + 3X2  12
2
Solution space
0
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

C7, 9 & 8-13
BA 46
LINEAR PROGRAMMING
Linear Programming Example (isoprofit method)
X2
14
12 Z  4x1  5x 2
10
Z = 60 x1  3x 2  12
8 4x1  3x 2  24
6 Z = 40 x1, x 2  0
4
2
Z = 20
0
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
X1

C7, 9 & 8-14
BA 46
LINEAR PROGRAMMING
Linear Programming Example (corner point method)
X2
12
Constraint 2
10 4X1 + 3X2 = 24
4X1 + 3X2 < 24
8
Constraint 1
6 X1 + 3X2 = 12
Point 2
4 Point 3 X1 + 3X2 < 12
2
Point 1 Point 4
0
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
X1

C7, 9 & 8-15
BA 46
LINEAR PROGRAMMING
Decision Matrix Z = 4,000X1 + 5,000X2
Alternatives X1 X2 Profit
Point 1 0 0 0
Point 2 0 4 20,000
Point 3 4 2.67 29,350
Point 4 6 0 24,000

C7, 9 & 8-16
BA 46
LINEAR PROGRAMMING
Therefore produce 4 of X1 and 2.67 of X2 in order

to maximize profit by 29,350 pesos.
Answer

C7, 9 & 8-17
BA 46
LINEAR PROGRAMMING
Minimization Example
You’re an analyst for a division of BW: $2,500 mfg.

Cannon, which makes BW & color cost per month
chemicals. At least 30 tons of BW and
at least 20 tons of color must be made
each month. The total chemicals
made must be at least 60 tons. How © 1995 Corel Corp.
many of each chemical should be
made to minimize costs?
Color: $ 3,000 mfg. cost

per month
C7, 9 & 8-18
BA 46
LINEAR PROGRAMMING
Definition of the Problem
Attributes X1 X2 Quantity
Cost 2500 3000
BW 1 30
Color 1 20
Total Tonnage 1 1 60

C7, 9 & 8-19
BA 46
LINEAR PROGRAMMING
Formulation of Objective Function and Constraints
• Decision variables
– X1 = tons of BW chemical produced
– X2 = tons of color chemical produced
• Objective
– Minimize Z = 2500X1 + 3000X2
• Constraints
– X1 ≥ 30 (BW); X2 ≥ 20 (Color)
– X1 + X2 ≥ 60 (Total tonnage)
– X1 ≥ 0; X2 ≥ 0 (Non-negativity)
C7, 9 & 8-20
BA 46
LINEAR PROGRAMMING
Graphical Solution
80 BW
60 Total
Tons, Color
Chemical 40
(X2)
20 Color
0
0 20 40 60 80
Tons, BW Chemical (X1)
C7, 9 & 8-21
BA 46
LINEAR PROGRAMMING
Optimal Solution: Corner Point Method
80 BW Find corner
points.
60 Total Feasible
Tons, Color Region
Chemical 40
B
20 Color
A
0
0 20 40 60 80
Tons, BW Chemical
C7, 9 & 8-22
BA 46
LINEAR PROGRAMMING
Decision Matrix
Alternatives Black Color 2500x1+3000x2
Costs
Point A 30 30 165,000
Point B 40 20 160,000
Therefore produce 40 tons of black and 20 tons of

color with a cost of 160,000.
Answer

C7, 9 & 8-23
BA 46
LINEAR PROGRAMMING
Sensitivity Analysis
• Projects how much a solution might change if

there were changes in variables or input data.
• Shadow price (dual) - value of one additional
unit of a resource
• Special Issues in Linear Programming Problems

C7, 9 & 8-24
BA 46
LINEAR PROGRAMMING
End of Graphical Method

C7, 9 & 8-25
BA 46
LINEAR PROGRAMMING
Simplex Method
• Define the problem
• Set up objective function and constraints in
mathematical format
• Convert the inequalities to equalities
• Incorporate all the variables in each equation
• Start the initial simplex tableau by setting the
production to zero
• Test for optimality. All entries in the net profit row
must be zero or negative for maximization problem.
In a minimization problem must be 0 or +.
• IfPYPITS
optimality is not attained make another tablefor Management
©Quantitative Analysis
C7, 9 & 8-26
BA 46
LINEAR PROGRAMMING
Second Simplex Tableau
• Select the pivot column

• Select the pivot row
• For other constraints use the formula:
• New number = old number – (the number below or
above the pivot number x the new corresponding
number)
• Continue until optimality is attained.

C7, 9 & 8-27
BA 46
LINEAR PROGRAMMING
Formulation
Objective Function:
max Profit: Z = 4X1 + 5X2 conversion to
equality
Subject to:
constraint 1: X1 + 3X2  12 X1 + 3X2 + S1 = 12
constraint 2: 4X1 + 3X2  24 4X1 + 3X2 + S2 = 24
non-negative: X1  0
X2  0

C7, 9 & 8-28
BA 46
LINEAR PROGRAMMING
Incorporation of all variables in each equation
Objective Function:
max Profit: Z = 4X1 + 5X2 + 0S1 + 0S2
Subject to:
constraint 1: 1X1 + 3X2 + 1S1 + 0S2 = 12
constraint 2: 4X1 + 3X2 + 0S1 + 1S2 = 24
non-negative: All variables  0

C7, 9 & 8-29
BA 46
LINEAR PROGRAMMING
1st Simplex Tableau
4 5 0 0
Cj
Solution X1 X2 S1 S2 Quantity
Mix
0 S1 1 3 1 0 12
0 S2 4 3 0 1 24
Zj 0 0 0 0 0
Cj – Zj 4 5 0 0
C7, 9 & 8-30
BA 46
LINEAR PROGRAMMING
1st Simplex Tableau (cont’d)
4 5 0 0
Cj
Mix
0 S1 1 3 1 0 12
0 S2 4 3 0 1 24
Zj 0 0 0 0 0
Cj – Zj 4 5 0 0
C7, 9 & 8-31
BA 46
LINEAR PROGRAMMING
2nd Simplex Tableau
4 5 0 0
Cj
Mix
5 X2 1/3 1 1/3 0 4
0 S2 3 0 -1 1 12
Zj 5/3 5 5/3 0 20
Cj – Zj 7/3 0 - 5/3 0
C7, 9 & 8-32
BA 46
LINEAR PROGRAMMING
2nd Simplex Tableau (cont’d)
4 5 0 0
Cj
Mix
5 X2 1/3 1 1/3 0 4
0 S2 3 0 -1 1 12
Zj 5/3 5 5/3 0 20
Cj – Zj 7/3 0 - 5/3 0
C7, 9 & 8-33
BA 46
LINEAR PROGRAMMING
3rd Simplex Tableau
4 5 0 0
Cj
Mix
5 X2 0 1 4/9 - 1/9 2 2/3
4 X1 1 0 - 1/3 1/3 4
Zj 4 5 8/9 7/9 29.35
Cj – Zj 0 0 - 8/9 - 7/9
C7, 9 & 8-34
BA 46
LINEAR PROGRAMMING
Simplex Solution
Therefore produce 4 of X1 and 2.67 of X2 in

order to maximize profit by 29.35 T pesos.
Answer

C7, 9 & 8-35
BA 46
LINEAR PROGRAMMING
End of Simplex Method

C7, 9 & 8-36
BA 46
LINEAR PROGRAMMING
The Transportation Model

C7, 9 & 8-37
BA 46
LINEAR PROGRAMMING
The Transportation Problem
D 90
(Palawan)
200
S
(Negros) 100
S
D (Iligan)
(Cebu) 160
D
(Surigao)
80
S 150
(Masbate) D 120
(Basilan)
C7, 9 & 8-38
BA 46
LINEAR PROGRAMMING
Cost Distribution
Surigao Palawan Basilan Cebu
Iligan 4 7 7 1
Negros 12 3 8 8
Masbate 8 10 16 5

C7, 9 & 8-39
BA 46
Using the simplex model LINEAR PROGRAMMING
Equation Formulation: S P B C
Let: I = Iligan S = Surigao I 4 7 7 1
N = Negros P = Palawan
N 12 3 8 8
M = Masbate C = Cebu B = Basilan
Objective Function: M 18 10 16 5
Minimize Transportation Cost
C = 4IS+7IP+7IB+1IC+12NS+3NP+8NB+8NC+18MS+10MP+16MB+5MC
Subject To:
Supply 1.) IS + IP + IB + IC  100 S P B C
2.) NS + NP + NB + NC  200 I 100
3.) MS + MP + MB + MC  150
Demand 4.) IS + NS + MS  80 N 200
5.) IP + NP + MP  90 M 150
6.) IB + NB + MB  120
7.) IC + NC + MC  160 80 90 120 160
Non Neg. 8.) All Variables  0
C7, 9 & 8-40
BA 46
LINEAR PROGRAMMING
TRADITIONAL SIMPLEX APPROACH (cont’d)
Conversion to Equality:
Supply 1.) IS + IP + IB + IC + S1 = 100
2.) NS + NP + NB + NC + S2 = 200
3.) MS + MP + MB + MC + S3 = 150
Demand 4.) IS + NS + MS – S4 + A1 = 80
5.) IP + NP + MP – S5 + A2 = 90
6.) IB + NB + MB – S6 + A3 = 120
7.) IC + NC + MC – S7 + A4 = 160
Non Neg. 8.) All Variables  0

C7, 9 & 8-41
BA 46
LINEAR PROGRAMMING
TRADITIONAL SIMPLEX APPROACH (Cont’d)
Incorporation of all the variables in each equation:
Objective Function:
C = 4IS+7IP+7IB+1IC+12NS+3NP+8NB+8NC+8MS+10MP+16MB+5MC +0S1+0S2+0S3 +0S4+0S5 +0S6 +0S7
+MA1+MA2+MA3+MA4
Constraints:
1.) 1IS+1IP+1IB+1IC+0NS+0NP+0NB+0NC+0MS+0MP+0MB+0MC+1S1+0S2+0S3+0S4+0S5+0S6+0S7 +0A1+0A2+0A3+0A4 = 100
4.) 1IS+0IP+0IB+0IC+1NS+0NP+0NB+0NC+1MS+0MP+0MB+0MC+0S1+0S2+0S3-1S4+0S5+0S6+0S7 +1A1+0A2+0A3+0A4 = 80
5.) 0IS+1IP+0IB+0IC+0NS+1NP+0NB+0NC+0MS+1MP+0MB+0MC+0S1+0S2+0S3+0S4-1S5+0S6+0S7 +0A1+1A2+0A3+0A4 = 90
6.) 0IS+0IP+1IB+0IC+0NS+0NP+1NB+0NC+0MS+0MP+1MB+0MC+0S1+0S2+0S3+0S4+0S5-1S6+0S7 +0A1+0A2+1A3+0A4 = 120
7.) 0IS+0IP+0IB+1IC+0NS+0NP+0NB+1NC+0MS+0MP+0MB+1MC+0S1+0S2+0S3+0S4+0S5+0S6-1S7 +0A1+0A2+0A3+1A4 = 160
8.) All Variables  0
WHAT DO YOU THINK AND FEEL?

C7, 9 & 8-42
BA 46
LINEAR PROGRAMMING
Requirements for Transportation Model
• List of origins and each one’s

capacity The Transportation Problem
• List of destinations and each one’s

demand The Transportation Problem
• Unit cost of shipping Cost Distribution

C7, 9 & 8-43
BA 46
LINEAR PROGRAMMING
A Transportation Table
Warehouse
Surigao Palawan Basilan Cebu Capacity
Factory 4 7 7 1
Iligan 100
12 3 8 8
Negros 200
8 10 16 5
150
Masbate
450
Requirement 80 90 120 160
450

C7, 9 & 8-44
BA 46
LINEAR PROGRAMMING
Transportation Model Assumptions
• Items to be shipped are

homogeneous
• Shipping cost per unit is the same
• Only one route between origin and
destination

C7, 9 & 8-45
BA 46
LINEAR PROGRAMMING
Steps in the Process
• Obtain an initial solution
– N-W corner method approach North – West Corner Method Approach
– Minimum cost method approach Minimum Cost or Greedy Method Approach
– VAM approach Vogel’s Approximation Method Approach
• Test the solution for optimality

– Stepping-Stone method approach Stepping Stone Method Approach
– Modi method approach Modi Method Approach

C7, 9 & 8-46
BA 46
LINEAR PROGRAMMING
Special Problems
• Unequal supply and demand
• Dummy: Imaginary number added
equal to the difference between
supply and demand when these are
unequal
• Degeneracy: The condition of too few
completed cells to allow all
necessary paths to be constructed
C7, 9 & 8-47
BA 46
LINEAR PROGRAMMING
Summary of Procedure
• Make certain that supply and demand are
equal
• Develop an initial solution using either of the
three models
• Check that completed cells = R+C-1
• Evaluate each empty cell using either of the
two models
• Repeat until all unused cells are zero or
positive for minimization problems. Zero or
negative for maximization problems
C7, 9 & 8-48
BA 46
LINEAR PROGRAMMING
END
C7, 9 & 8-49
BA 46
LINEAR PROGRAMMING
Domou Arigatou Gozaimasu
Japan 2015
C7, 9 & 8-50
BA 46
LINEAR PROGRAMMING

C7, 9 & 8-51
BA 46
LINEAR PROGRAMMING
North – West Corner Method Approach
Warehouse
Surigao Palawan Basilan Cebu Supply
Factory 4 7 7 1
Iligan 100
80 20
12 3 8 8
Negros 70 120 200
10
8 10 16 5
150
Masbate 150
450
Demand 80 90 120 160
450
Cost = (80*4)+(20*7)+(70*3)+(120*8)+(10*8)+(150*5)
= 2,460
C7, 9 & 8-52
BA 46
LINEAR PROGRAMMING
Minimum Cost or Greedy Method Approach
Warehouse
Factory 4 7 7 1
Iligan 100 100
12 3 8 8
Negros 90 110 200
8 10 16 5
Masbate
80 10 60 150
450
Demand 80 90 120 160
450
Cost = (100*1)+(90*3)+(110*8)+(80*8)+(10*16)+(60*5)
= 2,350
C7, 9 & 8-53
BA 46
LINEAR PROGRAMMING
Vogel’s Approximation Method Approach
Warehouse
Factory 4 7 7 1
Iligan 100 3
12 3 8 8
90 200 5
Negros
8 10 16 5
150 3
Masbate
450
Demand 80 90 120 160
450
4 4 1 4
C7, 9 & 8-54
BA 46
LINEAR PROGRAMMING
Warehouse
Factory 4 7 7 1
Iligan
100 100 3
12 3 8 8
90 200 5 0
Negros
8 10 16 5
150 3
Masbate
450
Demand 80 90 120 160
450
4 4 1 4
C7, 9 & 8-55
BA 46
LINEAR PROGRAMMING
Warehouse
Factory 4 7 7 1
Iligan
100 100 3
12 3 8 8
90 110 200 5 0
Negros
8 10 16 5
150 3
Masbate
450
Demand 80 90 120 160
450
4 4 1 8 4 3
C7, 9 & 8-56
BA 46
LINEAR PROGRAMMING
Warehouse
Factory 4 7 7 1
Iligan
100 100 3
12 3 8 8
90 110 200 5 0
Negros
8 10 16 5
Masbate
80 10 60 150 3
450
Demand 80 90 120 160
450
4 4 1 8 4 3
C7, 9 & 8-57
BA 46
LINEAR PROGRAMMING
Warehouse
Factory 4 7 7 1
Iligan 100 100
12 3 8 8
Negros 90 110 200
8 10 16 5
Masbate
80 10 60 150
450
Demand 80 90 120 160
450
Cost = (100*1)+(90*3)+(110*8)+(80*8)+(10*16)+(60*5)
= 2,350
C7, 9 & 8-58
BA 46
LINEAR PROGRAMMING
Stepping Stone Method Approach
Warehouse Test for degeneracy:
Surigao Palawan Basilan Cebu Supply Used squares  R+C-1
Factory 4 7 7 -11 1
Iligan -5 100
80 20
12 3 8 8
Negros 12 70 120 200
10
8 10 16 5
11 150
Masbate 11 10 150
450
Demand 80 90 120 160
450

C7, 9 & 8-59
BA 46
LINEAR PROGRAMMING
Warehouse
Factory 4 10 7 7 -11 1
-5 100
Iligan 80 20 10
12 3 8 8
Negros 12 70 80 120 200
10
8 10 16 5
11 150
Masbate 11 10 150
450
Demand 80 90 120 160
450

C7, 9 & 8-60
BA 46
LINEAR PROGRAMMING
Warehouse
Factory 4 7 7 1
100
Iligan 80 10 10
12 3 8 8
Negros 80 120 200
8 10 16 5
150
Masbate 150
450
Demand 80 90 120 160
450
COST = (80*4)+(10*7)+(10*1)+(80*3)+(120*8)+(150*5)
= 2,350
C7, 9 & 8-61
BA 46
LINEAR PROGRAMMING
Warehouse
Factory 4 7 7 1
100
Iligan 80 10 -5 10
12 3 8 8
Negros 80 120 11 200
12
8 10 16 5
0 150
Masbate -1 150
0
450
Demand 80 90 120 160
450

C7, 9 & 8-62
BA 46
LINEAR PROGRAMMING
Warehouse
Factory 4 7 7 1
10
100
Iligan 80 10 -5 10
12 3 8 8
Negros 80 90 120110 11 200
12
8 10 16 5
0 150
Masbate -1 150
0
450
Demand 80 90 120 160
450

C7, 9 & 8-63
BA 46
LINEAR PROGRAMMING
Warehouse
Factory 4 7 7 1
100
Iligan 80 10 10
12 3 8 8
Negros 90 110 200
8 10 16 5
150
Masbate 150
450
Demand 80 90 120 160
450
Cost = (80*4)+(10*7)+(10*1)+(90*3)+(110*8)+(150*5)
= 2,300
C7, 9 & 8-64
BA 46
LINEAR PROGRAMMING
Warehouse
Factory 4 7 7 1
100
Iligan 80 5 10 10
12 3 8 8
90 110 200
Negros 7 6
8 10 16 5
5 150
Masbate 0 4 150
450
Demand 80 90 120 160
450

C7, 9 & 8-65
BA 46
LINEAR PROGRAMMING
Warehouse
Factory 4 7 7 1
100
Iligan 80 5 10 10
12 3 8 8
90 110 200
Negros 7 6
8 10 16 5
5 150
Masbate 0 4 150
450
Demand 80 90 120 160
450
Cost = (80*4)+(10*7)+(10*1)+(90*3)+(110*8)+(150*5)
= 2,300 therefore is the least cost.
C7, 9 & 8-66
BA 46
LINEAR PROGRAMMING
Final Answer: Ship To
Iligan to Surigao = 80
Iligan to Basilan = 10
Iligan to Cebu = 10
Negros to Palawan = 90
Negros to Basilan = 110
Masbate to Cebu = 150
Least Cost is 2,300
Answer

C7, 9 & 8-67
BA 46
LINEAR PROGRAMMING
Modi Method Approach
Warehouse Steps:
S P B C S
1.) Rename values to Ri and Kj.
F 4 7 7 1
100 Ri = value assigned to
I 100 row as R1, R2, etc.
12 3 8 8 Kj = value assigned to
N 110 200 column as K1, K2,
90
8 10 16 5
K3, etc.
150 Cij = cost in square ij.
M 80 10 60
450
D 80 90 120 160
450
Cost = (100*1)+(90*3)+(110*8)+(80*8)+(10*16)+(60*5)
= 2,350

C7, 9 & 8-68
BA 46
LINEAR PROGRAMMING
Warehouse Steps:
K1 K2 K3 K4 S
2.) Compute values on used squares
F 4 7 7 1
100 Using the formula: Ri + Kj = Cij.
R1 100
12 3 8 8 As shown:
R2 110 200 (R1K4 ) R1 + K4 = 1
90
8 10 16 5
(R2K2 ) R2 + K 2 = 3
150 (R2K3 ) R2 + K3 = 8
R3 80 10 60
(R3K1 ) R3 + K 1 = 8
450 (R3K3 ) R3 + K3 = 16
D 80 90 120 160 (R3K4 ) R3 + K4 = 5
450
Cost = (100*1)+(90*3)+(110*8)+(80*8)+(10*16)+(60*5)
= 2,350

C7, 9 & 8-69
BA 46
LINEAR PROGRAMMING
Warehouse Steps:
K1 K2 K3 K4 S
3.) Set R1 = 0 then solve for
F 4 7 7 1
100 other values
R1 100 As shown:
12 3 8 8 R1 + K4 = 1 R1 = 0 K4 = 1
R2 110 200 R2 + K2 = 3 R2 = -4 K2 = 7
90
R2 + K3 = 8 R2 = -4 K3 = 12
8 10 16 5
150 R3 + K1 = 8 R3 = 4 K1 = 4
R3 80 10 60
R3 + K3 = 16 R3 = 4 K3= 12
450 R3 + K4 = 5 R3 = 4 K4 = 1
D 80 90 120 160
450
Cost = (100*1)+(90*3)+(110*8)+(80*8)+(10*16)+(60*5)
= 2,350

C7, 9 & 8-70
BA 46
LINEAR PROGRAMMING
Steps:
Warehouse
K1 K2 K3 K4 S 4.) Compute the improvement index
F 4 7 7 90 1 using RiKj = Cij – Ri – Kj
R1 10 100 100 5.) Use stepping stone to solve for
large improvement index.
12 3 8 8
R2 110 R1 = 0
200 R2 = -4 R3 = 4
90
K1 = 4 K2 =7 K3 = 12 K4 = 1
8 10 16 70 5
R3 80 10 60 150 R1K1 = 4–0–4= 0
R1K2 = 7–0–7= 0
450 R1K3 = 7 – 0 – 12 = - 5
D 80 90 120 160 R2K1 = 12 – (-4) – 4 = 12
450
R2K4 = 8 – (-4) – 1 = 11
Cost = (100*1)+(90*3)+(110*8)+(80*8)+(10*16)+(60*5) R3K2 = 10 – 4 – 7 = - 1
= 2,350

C7, 9 & 8-71
BA 46
LINEAR PROGRAMMING
Warehouse
K1 K2 K3 K4 S
F 4 7 7 1
R1 100
10 90
12 3 8 8
R2 110 200
90
8 10 16 5
150
R3 80 70
450
D 80 90 120 160
450
Cost = (10*7)+(90*1)+(90*3)+(110*8)+(80*8)+(70*5)
= 2,300

C7, 9 & 8-72
BA 46
LINEAR PROGRAMMING
Steps:
Warehouse 6.) Go back to step 1 for the next iteration
K1 K2 K3 K4 S
F
R1K3 = R1 + K3 = 7 R1 = 0
4 7 7 1
100 R1K4 = R1 + K4 = 1 R2 = 1
R1 10 90 R2K2 = R2 + K2 = 3 R3 = 4
12 3 8 8 R2K3 = R2 + K3 = 8 K1 = 4
R2 110 200 R3K1 = R3 + K1 = 8 K2 = 2
90
8 10 16 5 R3K4 = R3 + K4 = 5 K3 = 7
80 70 150 K4 = 1
R3 R1K1 =4–0–4=0
R1K2 =7–0–2=5
450
D 80 90 120 160 R2K1 = 12 – 1 – 4 = 7
450 R2K4 =8–1–1=6
Cost = (10*7)+(90*1)+(90*3)+(110*8)+(80*8)+(70*5) R3K2 = 10 – 4 – 2 = 4
= 2,300 R3K3 = 16 – 4 – 7 = 5

C7, 9 & 8-73
BA 46
LINEAR PROGRAMMING
Final Answer: Ship To
Iligan to Basilan = 10
Iligan to Cebu = 90
Negros to Palawan = 90
Negros to Basilan = 110
Masbate to Samar = 80
Masbate to Cebu = 70
Least Cost is 2,300
Answer

C7, 9 & 8-74
BA 46
LINEAR PROGRAMMING
The Assignment
Model

C7, 9 & 8-75
BA 46
LINEAR PROGRAMMING
The Assignment Problem
Let us consider the case of the Fix-It Shop,
which has just receive three new rush projects to
repair: a radio, a toaster, a broken coffee table.
Three repair persons, each with different talents
and abilities, are available to do the jobs. The Fix-It
Shop owner estimates what it will cost in wages to
assign each of the workers to each of the three
projects.
The owner’s objective is to assign the three
projects to the workers in a way that will result in
the lowest total cost to the shop. The costs are
shown on the next slide.
C7, 9 & 8-76
BA 46
LINEAR PROGRAMMING
The Assignment Problem
PERSON PROJECT PROJECT PROJECT
X Y Z
ADAMS 11 14 6
BROWN 8 10 11
COOPER 9 12 7

C7, 9 & 8-77
BA 46
LINEAR PROGRAMMING
THE HUNGARIAN METHOD (Flood’s Technique)
Steps of the Assignment Method

1. Find the opportunity cost table by
a) Subtracting the smallest number in each row
of the original cost table or matrix from every
number in that row.
b) Then subtracting the smallest number in each
column of the table obtained in a)

C7, 9 & 8-78
BA 46
LINEAR PROGRAMMING
Steps of the Assignment Method (cont’d)
2. Test the table resulting from step 1 to see
whether an optimal assignment can be
made. The procedure is to draw the
minimum number of vertical and horizontal
lines necessary to cover all zeros in the
table. The number of lines must equal to the
number of rows or column to obtain
optimality. Otherwise go to step 3.
C7, 9 & 8-79
BA 46
LINEAR PROGRAMMING
Steps of the Assignment Method (cont’d)
3. Revise the present opportunity cost table.
This is done by subtracting the smallest
number not covered by a line from every
other uncovered number. This same
smallest number is also added to any
number(s) lying at the intersection of
horizontal and vertical lines. Go back to
step 2 until optimal assignment is reached.
C7, 9 & 8-80
BA 46
LINEAR PROGRAMMING
THE ASSIGNMENT MATRIX
P X Y Z P X Y Z
A 11 14 6 A 5 8 0
5 8
0 6
B 8 10 11 B 0 2 3
0 2 3 0
C 9 12 7 C 2 5 0
2 5 0 3

C7, 9 & 8-81
BA 46
LINEAR PROGRAMMING
THE ASSIGNMENT MATRIX
P X Y Z P X Y Z
A 5 6 0 A 3 4 0
3 4
B 0 0 3 B 0 0 5
5
C 2 3 0 C 0 1 0
0 1

C7, 9 & 8-82
BA 46
LINEAR PROGRAMMING
MAKING THE FINAL ASSIGNMENT
P X Y Z FINAL ASSIGNMENT
Adams to Project Z = 6
A 3 4 0 Brown to Project Y = 10
B 0 0 5 Cooper to Project X = 9
Total Cost = 25
C 0 1 0 Answer

C7, 9 & 8-83
BA 46
LINEAR PROGRAMMING
END
C7, 9 & 8-84
Merci Beaucoup BA 46
LINEAR PROGRAMMING

Lovers in Paris 2016 C7, 9 & 8-85
BA 46
LINEAR PROGRAMMING

C7, 9 & 8-86

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BA 46

PYPITS ©Quantitative Analysis for Management

PYPITS ©Quantitative Analysis for Management

PYPITS ©Quantitative Analysis for Management

PYPITS ©Quantitative Analysis for Management

PYPITS ©Quantitative Analysis for Management

PYPITS ©Quantitative Analysis for Management

PYPITS ©Quantitative Analysis for Management

PYPITS ©Quantitative Analysis for Management

PYPITS ©Quantitative Analysis for Management

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PYPITS ©Quantitative Analysis for Management

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PYPITS ©Quantitative Analysis for Management

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PYPITS ©Quantitative Analysis for Management

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PYPITS ©Quantitative Analysis for Management

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PYPITS ©Quantitative Analysis for Management