GENERAL SIR JOHN KOTELAWALA DEFENCE UNIVERSITY

Faculty of Management, Social Sciences and Humanities Department of Management & Finance Bachelor of Science in Logistics Management Degree Programme Management & Technical Science Degree Programme Intake 28 Semester 2 Subject: Operations Research Lesson: Linear Programming Lecturer: Chaminda Wijethilake Handout number: 01 What is Linear Programming? Linear Programming is one of the mathematical techniques which is fundamental to Operations Research. This technique involves the optimization of a function which is called the Objective Function. This function is subject to a definite number of constraints. Linear Programming facilitates the selection of the best alternatives from among the entire set of feasible alternatives. Linear Programming is subject to the following requirements: (1) The objective function should be quantitatively (in numeric terms) well-defined and identifiable. For example, the function can be relating to maximization of profits, minimization of losses, etc. (2) All factors involved in the program (Objective Function and the constraint inequalities) must have linear relationships e.g. a doubling of output requires a doubling of labour hours; if one unit provides Rs. 10 contribution 10 units will produce Rs. 100 and so on. (3) The activities and the resources should be quantifiable and distinctly identifiable. (4) The problem must permit a choice between alternative courses of action. (5) There must be one or more restrictions on the factors involved. Theses may be restrictions on resources (labour hours, tons of material etc) but they may be on particular characteristics, for example, a fertilizer must contain a minimum of 15% phosphate and 30% nitrogen or a patent fuel must contain not more than 6% ash, 2% phosphate and 1% sulfur.

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Example: 01 An Engineering Company can manufacture two different products P1 and P2, which have to pass through two machines E1 and E2. The details relating to the time required to process the product, the profit per unit and the available capacity of each machine are given in the following table: Product Processing Time / Unit Profit / Unit Machine E1 Machine E2 P1 2 2 6 P2 3 1 7 Available hours per 12 8 week Determine the number of units of P1 and P2 should be produced to maximize the profit.

For the formulation of a Linear Problem (LP), the following steps need to be followed: (1) Identify the decision variables in the given problem and denote them by x1 and x2. (2) Express the objective function in terms of the decision variables. The objective function is a linear function with the objective of either to maximize or minimize as the case may be. (3) Identify the limiting conditions and express them as inequalities in terms of the decision variables. (4) The decision variables cannot take negative values. Hence they must carry a value greater than or equal to zero. (5) The LP problem gets formulated when we express the objective function and the inequalities (constraints) are explained in the earlier steps. Example: 02 A manufacturer produces two types of models M1 and M2. Each model of the type M1 requires 4 hours of grinding and 2 hours of polishing; whereas each model of the M2 type requires 2 hours of grinding and 5 hours of polishing. The manufacturer has 2 grinders and 3 polishers. Each grinder works 40 hours a week and polisher works for 60 hours a week. Profit on M1model is Rs. 3.00 and on Model M2 is Rs. 4.00. Whatever is produced in a week is sold in the market. How should the manufacturer allocate his production capacity to the two types of models, so that he may make the maximum profit in a week? Example: 03 A company manufactures two products A and B. These products are processed in the same machine. It takes 10 minutes to process one unit of product A and 2 minutes for each unit of product B and the machine operates for a maximum of 35 hours in a week. Product A requires 1kg and B 0.5kg or raw materials per unit the supply of which is 600kg per week. Market constraint on product B is known to be minimum of 800 units every week. Product A costs Rs. 5 per unit and sold at Rs. 10. Product B costs Rs. 6 per unit and can be sold in the
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market at a unit price of Rs. 8. Determine the number of units of A and B to be manufactured per week to maximize the profit. Example: 04 A person requires 10, 12 and 12 units of chemicals A, B, and C, respectively for his garden. A liquid product contains 5, 2 and 1 units of A, B and C respectively per bottle. A dry product contains 1,2 and 4 units of A, B and C per box. If the liquid product sells for Rs. 3 jar and the dry product sells for Rs. 2 per cartion how many of each should be purchased in order to minimize the cost and meet the requirement? Linear Programming problems can be solved using one of the following methods: (1) The Graphical Method (2) The Simplex Method

GRAPHICAL METHOD
Simple linear programming problem with two decision variables can be easily solved by graphical method. Procedure of Solving LPP by Graphical Method The steps involved in graphical method are as follows. Step 1: Consider each inequality constraint as an equation. Step 2: Plot each equation on the graph, as each will geometrically represent a straight line. Step 3: Make the region. If the inequality constrain corresponding to that line is then the region below the line lying the first quadrant (due to non-negativity of variables) is shaded. For the inequality constraint sign, the region above the line in the first quadrant is shaded. The points lying in common region will satisfy all the constraints simultaneously. The common region thus obtained is called the feasible region. Step 04: Assign an arbitrary values say zero for the objective function. Step 05: Draw the straight line to represent the objective function with the arbitrary value( i.e. a straight line through the region). Step 06: Stretch the objective function line till the extreme points of the feasible region. In the maximization case this line will stop farthest region. In the minimization case, this line will stop farthest from the origin and passing through at least one corner of the feasible region. In the

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minimization case, this line will stop nearest to the origin and passing through at least one corner of the feasible region. Step 07: Find the co-ordinates of the extreme points selected in step 6 and find the maximum or minimum value of Z Example 05: A manufacturer produces two products, K1and K2. K1 has a contribution of Rs 3 per unit and K2 has a contribution of Rs. 4 per unit. The manufacturer wishes to establish the weekly production plan, which maximizes contribution. Production data are as follows:

Products Klunk Klick Total Available per week Machine 4 2 100

Per Unit Labour (Hours) 4 6 180

Material(Kgs) 1 1 40

Because of a trade agreement, sales of K1 are limited to a weekly maximum of 20 units and to honour an agreement with an old established customer at least 10 units to K2 must be sold per week.

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