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Linear Programming Models: Graphical and Computer Methods

To accompany Quantitative Analysis for Management, 8e by Render/Stair/Hanna

7-1

2003 by Prentice Hall, Inc. Upper Saddle River, NJ 07458

Examples of Successful LP Applications


1. Development of a production schedule that will satisfy future demands for a

firms production and at the same time


minimize total production and inventory costs 2. Selection of the product mix in a factory to make best use of machinehours and labor-hours available while maximizing the firms products

To accompany Quantitative Analysis for Management, 8e by Render/Stair/Hanna

7-2

2003 by Prentice Hall, Inc. Upper Saddle River, NJ 07458

Examples of Successful LP Applications


3. Determination of grades of petroleum products to yield the maximum profit

4. Selection of different blends of raw


materials to feed mills to produce finished feed combinations at minimum

cost
5. Determination of a distribution system that will minimize total shipping cost from several warehouses to various market locations
To accompany Quantitative Analysis for Management, 8e by Render/Stair/Hanna

7-3

2003 by Prentice Hall, Inc. Upper Saddle River, NJ 07458

Requirements of a Linear Programming Problem


All problems seek to maximize or minimize some quantity (the objective function). The presence of restrictions or constraints, limits the degree to which we can pursue our objective. There must be alternative courses of action to choose from. The objective and constraints in linear programming problems must be expressed in terms of linear equations or inequalities.
To accompany Quantitative Analysis for Management, 8e by Render/Stair/Hanna

7-4

2003 by Prentice Hall, Inc. Upper Saddle River, NJ 07458

Basic Assumptions of Linear Programming


Certainty

Proportionality
Additivity Divisibility Nonnegativity

To accompany Quantitative Analysis for Management, 8e by Render/Stair/Hanna

7-5

2003 by Prentice Hall, Inc. Upper Saddle River, NJ 07458

Flair Furniture Company Data - Table 7.1


Hours Required to Produce One Unit
Department T C Tables Chairs Available Hours This Week 240 100

Carpentry Painting &Varnishing Profit Amount

4 2 $7

3 1 $5

Constraints: 4T + 3C 240 (Carpentry) 2T + 1C 100 (Paint & Varnishing) Objective: Max: 7T + 5C


To accompany Quantitative Analysis for Management, 8e by Render/Stair/Hanna

7-6

2003 by Prentice Hall, Inc. Upper Saddle River, NJ 07458

Flair Furniture Company Constraints


120 100

Number of Chairs

Painting/Varnishing
80 60 40

Carpentry
20 0

20
To accompany Quantitative Analysis for Management, 8e by Render/Stair/Hanna

40
7-7

60

80

100

Number of Tables
2003 by Prentice Hall, Inc. Upper Saddle River, NJ 07458

Flair Furniture Company Feasible Region

120

Number of Chairs

Painting/Varnishing

100 80 60

Carpentry
40 20 0 20 40
7-8

Feasible Region
60 80 100

Number of Tables
To accompany Quantitative Analysis for Management, 8e by Render/Stair/Hanna 2003 by Prentice Hall, Inc. Upper Saddle River, NJ 07458

Flair Furniture Company Isoprofit Lines


120 100

Painting/Varnishing 7T + 5C = 210 7T + 5C = 420

Number of Chairs

80 60 40 20 0

Carpentry

20

40

60

80

100

Number of Tables
To accompany Quantitative Analysis for Management, 8e by Render/Stair/Hanna

7-9

2003 by Prentice Hall, Inc. Upper Saddle River, NJ 07458

Flair Furniture Company Optimal Solution


120 100

Isoprofit Lines
Painting/Varnishing

Number of Chairs

80 60 40

Solution (T = 30, C = 40) Carpentry

20
0 20
To accompany Quantitative Analysis for Management, 8e by Render/Stair/Hanna

40

60
7-10

80

100

Number of Tables
2003 by Prentice Hall, Inc. Upper Saddle River, NJ 07458

Flair Furniture Company Optimal Solution


120

2
100

Corner Points
Painting/Varnishing

Number of Chairs

80 60 40

Solution (T = 30, C = 40) 3 Carpentry

20

1
0 20

4 60 80 Number of Tables
40
7-11

100

To accompany Quantitative Analysis for Management, 8e by Render/Stair/Hanna

2003 by Prentice Hall, Inc. Upper Saddle River, NJ 07458

Flair Furniture - QM for Windows

To accompany Quantitative Analysis for Management, 8e by Render/Stair/Hanna

7-12

2003 by Prentice Hall, Inc. Upper Saddle River, NJ 07458

Flair Furniture - Excel

To accompany Quantitative Analysis for Management, 8e by Render/Stair/Hanna

7-13

2003 by Prentice Hall, Inc. Upper Saddle River, NJ 07458

Holiday Meal Turkey Ranch


Minimize: 2 X1 + 3 X 2 Subject to : 5 X1 + 10 X 2 90 ( A) (B)

4 X1 + 3 X 2 48
X1

11/2 (C)

To accompany Quantitative Analysis for Management, 8e by Render/Stair/Hanna

7-14

2003 by Prentice Hall, Inc. Upper Saddle River, NJ 07458

Holiday Meal Turkey Problem


Corner Points

To accompany Quantitative Analysis for Management, 8e by Render/Stair/Hanna

7-15

2003 by Prentice Hall, Inc. Upper Saddle River, NJ 07458

Holiday Meal Turkey Problem


Isoprofit Lines

To accompany Quantitative Analysis for Management, 8e by Render/Stair/Hanna

7-16

2003 by Prentice Hall, Inc. Upper Saddle River, NJ 07458

Special Cases in LP
Infeasibility Unbounded Solutions Redundancy/Degeneracy

More Than One Optimal Solution

To accompany Quantitative Analysis for Management, 8e by Render/Stair/Hanna

7-17

2003 by Prentice Hall, Inc. Upper Saddle River, NJ 07458

A Problem with No Feasible Solution


X2

8
6 4

Region Satisfying 3rd Constraint

2
0

X1

Region Satisfying First 2 Constraints


To accompany Quantitative Analysis for Management, 8e by Render/Stair/Hanna

7-18

2003 by Prentice Hall, Inc. Upper Saddle River, NJ 07458

A Solution Region That is Unbounded to the Right


X2 15

X1 > 5

X2 < 10

10

Feasible Region
X1 + 2X2 > 10

10

15

X1

To accompany Quantitative Analysis for Management, 8e by Render/Stair/Hanna

7-19

2003 by Prentice Hall, Inc. Upper Saddle River, NJ 07458

A Problem with a Redundant Constraint


X2 30 25

2X1 + X2 < 30

20
15 10 5 0

Redundant Constraint
X1 < 25

X1 + X2 < 20

Feasible Region
X1

10

15
7-20

20

25

30

To accompany Quantitative Analysis for Management, 8e by Render/Stair/Hanna

2003 by Prentice Hall, Inc. Upper Saddle River, NJ 07458

An Example of Alternate Optimal Solutions

8 7 6 5 4 3 2 1 A

Optimal Solution Consists of All Combinations of X1 and X2 Along the AB Segment Isoprofit Line for $8
B AB

Isoprofit Line for $12 Overlays Line Segment


5 6 7 8

0
1 2 3 4

To accompany Quantitative Analysis for Management, 8e by Render/Stair/Hanna

7-21

2003 by Prentice Hall, Inc. Upper Saddle River, NJ 07458

Sensitivity Analysis
Changes in the Objective
Function Coefficient

Changes in Resources (RHS)


Changes in Technological

Coefficients

To accompany Quantitative Analysis for Management, 8e by Render/Stair/Hanna

7-22

2003 by Prentice Hall, Inc. Upper Saddle River, NJ 07458

Changes in the Technological Coefficients for High Note Sound Co.


(a) Original Problem
X2
60 3X1 + 1X2 < 60 40 Stereo Receivers 20 0 a b 2X1 + 4X2 < 80 d c 20 40 X1 20 e 30 40 X1 Optimal Solution a 2X1 + 4X2 < 80 Still Optimal 2X1 + 1X2 < 60

(b) Change in Circled X2 Coefficient

CD Players
To accompany Quantitative Analysis for Management, 8e by Render/Stair/Hanna

CD Players
7-23
2003 by Prentice Hall, Inc. Upper Saddle River, NJ 07458

Changes in the Technological Coefficients for High Note Sound Co.


(a) Original Problem
X2 60 3X1 + 1X2 < 60 40 Stereo Receivers 20 0 a b c 20 40 CD Players
To accompany Quantitative Analysis for Management, 8e by Render/Stair/Hanna

(c) Change in Circled X2 Coefficient

3X1 + 1X2 < 60

Optimal Solution

Optimal Solution 2X1 + 5X2 < 80 f g c

2X1 + 4X2 < 80

X1

20

40

X1

CD Players
7-24
2003 by Prentice Hall, Inc. Upper Saddle River, NJ 07458

To accompany Quantitative Analysis for Management, 8e by Render/Stair/Hanna

7-25

2003 by Prentice Hall, Inc. Upper Saddle River, NJ 07458

Part A, November 2005

To accompany Quantitative Analysis for Management, 8e by Render/Stair/Hanna

7-26

2003 by Prentice Hall, Inc. Upper Saddle River, NJ 07458