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LINEAR PROGRAMMING

SOLUTION TECHNIQUES:
GRAPHICAL AND COMPUTER
METHODS

LEARNING OBJECTIVES
Understand basic assumptions and properties of linear
programming (LP).
Use graphical solution procedures for LP problems with
only two variables to understand how LP problems are
solved.
Understand special situations such as redundancy,
infeasibility, unboundedness, and alternate optimal solutions
in LP problems.
Understand how to set up LP problems on a spreadsheet and
solve them using Excels solver.

INTRODUCTION
Management decisions in many organizations involve trying
to make most effective use of resources (machinery, labor,
money, time, warehouse space, and raw materials) in order
to:
Produce products - such as computers, automobiles, or
clothing or
Provide services - such as package delivery, health
services, or investment decisions.
To solve problems of resource allocation one may use
mathematical programming.

LINEAR PROGRAMMING
Linear programming (LP) is the most common type of
mathematical programming.
LP seeks to maximize or minimize a linear objective
function subject to a set of linear constraints
LP assumes all relevant input data and parameters are
known with certainty (deterministic models).
Computers play an important role in the solution of LP
problems

LP 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 to be 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.

DEVELOPMENT OF A LP MODEL
LP applied extensively to problems areas medical, transportation, operations,
financial, marketing, accounting,
human resources, and agriculture.
Development and solution of all LP models can be
examined in a four step process:
(1) identification of the problem as solvable by LP
(2) formulation of the mathematical model.
(3) solution.
(4) interpretation.

BASIC STEPS OF DEVELOPING A LP


MODEL
Formulation
Process of translating problem scenario into simple LP model
framework with a set of mathematical relationships.

Solution
Mathematical relationships resulting from formulation process are
solved to identify optimal solution.

Interpretation and What-if Analysis


Problem solver or analyst works with the manager to
interpret results and implications of problem solution.
investigate changes in input parameters and model variables
and impact on problem solution results.

LINEAR EQUATIONS AND


INEQUALITIES
This is a linear equation:
2A + 5B = 10
This equation is not linear:
2A2 + 5B3 + 3AB = 10
LP uses, in many cases, inequalities like:
A+ B C

or A + B C

BASIC ASSUMPTIONS OF A LP MODEL


1. Conditions of certainty exist.
2. Proportionality in objective function and constraints (1
unit 3 hours, 3 units- 9 hours).
3. Additivity (total of all activities equals sum of individual
activities).
4. Divisibility assumption that solutions need not necessarily
be in whole numbers (integers); ie.decision variables can
take on any fractional value.

FORMULATING A LP PROBLEM
A common LP application is product mix problem.
Two or more products are usually produced using
limited resources - such as personnel, machines, raw
materials, and so on.
Profit firm seeks to maximize is based on profit
contribution per unit of each product.
Firm would like to determine How many units of each product it should produce in
order to maximize overall profit given its limited
resources.

MAXIMIZATION MODEL EXAMPLES:

BEAVER CREEK EXAMPLE


FLAIR FURNITURE EXAMPLE
GALAXY INDUSTRIES EXAMPLE

PROBLEM DEFINITION:
BEAVER CREEK MAXIMIZATION
PROBLEM (1 of 18)
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:

PROBLEM DEFINITION: BEAVER


CREEK EXAMPLE (2 of 18)
Resource
Availability:

40 hrs of labor per day


120 lbs of clay

Decision Variables

x1 = number of bowls to produce per day


x2 = number of mugs to produce per day

Objective
Function:

Maximize Z = $40x1 + $50x2


Where Z = profit per day

Resource
Constraints:

1x1 + 2x2 40 hours of labor


4x1 + 3x2 120 pounds of clay

Non-Negativity
Constraints:

x1 0; x2 0

PROBLEM DEFINITION:
BEAVER CREEK EXAMPLE (3 of 18)
Complete Linear Programming Model:
Maximize Z = $40x1 + $50x2
subject to:
1x1 + 2x2 40
4x1 + 3x2 120
x1, x2 0

FEASIBLE SOLUTIONS:
BEAVER CREEK EXAMPLE (4 of 18)
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) = 50 < 120 pounds, within constraint

INFEASIBLE SOLUTIONS:
BEAVER CREEK EXAMPLE (5 of 18)
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 the constraint

The set of all points that satisfy all the constraints of


the model is called
a
FEASIBLE REGION

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.

Primary advantage of two-variable LP models (such as


Beaver Creek problem) is their solution can be graphically
illustrated using two-dimensional graph.
Allows one to provide an intuitive explanation of how
more complex solution procedures work for larger LP
models.

GRAPHICAL REPRESENTATION OF LP
MODELS
60
50
40
30

Coordinates
for graphical
analysis

20
10

10

20

30

40

50

60

GRAPHICAL REPRESENTATION OF
CONSTRAINTS:
COORDINATE AXES-BEAVER CREEK
EXAMPLE (6 of 18)
Maximize Z = $40x1 + $50x2
subject to: 1x1 + 2x2 40
4x1 + 3x2 120
x1, x2 0

Coordinates for Graphical Analysis

GRAPHICAL REPRESENTATION OF
CONSTRAINTS:
-BEAVER CREEK EXAMPLE-LABOR
CONSTRAINT (7 of 18)
Maximize Z = $40x1 + $50x2
subject to: 1x1 + 2x2 40
4x1 + 3x2 120
x1, x2 0

Graph of Labor Constraint

GRAPHICAL REPRESENTATION OF
CONSTRAINTS:
-BEAVER CREEK EXAMPLE-LABOR
CONSTRAINT AREA(8 of 18)
Maximize Z = $40x1 + $50x2
subject to: 1x1 + 2x2 40
4x1 + 3x2 120
x1, x2 0

Labor Constraint Area

GRAPHICAL REPRESENTATION OF
CONSTRAINTS:
BEAVER CREEK EXAMPLE-CLAY
CONSTRAINT AREA(9 of 18)
Maximize Z = $40x1 + $50x2
subject to: 1x1 + 2x2 40
4x1 + 3x2 120
x1, x2 0

Clay Constraint Area

GRAPHICAL REPRESENTATION OF
CONSTRAINTS:
BEAVER CREEK EXAMPLE- BOTH
CONSTRAINTS (10 of 18)
Maximize Z = $40x1 + $50x2
subject to: 1x1 + 2x2 40
4x1 + 3x2 120
x1, x2 0

Graph of Both Model Constraints

FEASIBLE SOLUTION AREA:


BEAVER CREEK EXAMPLE (11 of 18)

Maximize Z = $40x1 + $50x2


subject to: 1x1 + 2x2 40
4x1 + 3x2 120
x1, x2 0

Feasible Solution Area

GRAPHICAL SOLUTION:
ISOPROFIT LINE SOLUTION METHOD
Optimal solution is the point in feasible region that
produces highest profit
There are many possible solution points in region.
How do we go about selecting the best one, one yielding
highest profit?
Let objective function (that is, $$40x1 + $50x2) guide one
towards optimal point in feasible region.
Plot line representing objective function on graph as a
straight line.

ISOPROFIT LINE METHOD:


BEAVER CREEK EXAMPLE (12 of 18)
Maximize Z = $40x1 + $50x2
subject to: 1x1 + 2x2 40
4x1 + 3x2 120
x1, x2 0

Set Objective Function = 800


Objective Function Line for Z = $800

ISOPROFIT LINE METHOD ALTERNATIVE OBJECTIVE FUNCTION


SOLUTION LINES:
BEAVER CREEK EXAMPLE (13 of 18)
Maximize Z = $40x1 + $50x2
subject to: 1x1 + 2x2 40
4x1 + 3x2 120
x1, x2 0

Alternative Objective Function Lines

ISOPROFIT LINE METHOD-OPTIMAL


SOLUTION):
BEAVER CREEK EXAMPLE (14 of 18)
Maximize Z = $40x1 + $50x2
subject to: 1x1 + 2x2 40
4x1 + 3x2 120
x1, x2 0

Identification of the Optimal Solution

ISOPROFIT LINE METHOD - OPTIMAL


SOLUTION COORDINATES:
BEAVER CREEK EXAMPLE (15 of 18)
Maximize Z = $40x1 + $50x2
subject to: 1x1 + 2x2 40
4x1 + 3x2 120
x1, x2 0

Optimal Solution Coordinates

CORNER POINT PROPERTY


It is a very important property of Linear
Programming problems:
This property states optimal solution to LP problem
will always occur at a corner point.

GRAPHICAL SOLUTION - CORNER


POINT SOLUTION METHOD :
BEAVER CREEK EXAMPLE(16 of 18)
Maximize Z = $40x1 + $50x2
subject to: 1x1 + 2x2 40
4x1 + 3x2 120
x1, x2 0

Solution at All Corner Points

OPTIMAL SOLUTION FOR A NEW


OBJECTIVE FUNCTION:
BEAVER CREEK EXAMPLE (17 of 18)
Maximize Z = $70x1 + $20x2
subject to: 1x1 + 2x2 40
4x1 + 3x2 120
x1, x2 0

Optimal Solution with Z = 70x1 + 20x2

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.

STANDARD FORM OF LINEAR


PROGRAMMING MODEL:
BEAVER CREEK EXAMPLE (18 of 18)
Max Z = 40x1 + 50x2 + s1 +s2
subject to:1x1 + 2x2 + s1 = 40
4x1 + 3x2 + s2 = 120
x1, x2, s1, s2 0
Where:
x1 = number of bowls
x2 = number of mugs
s1, s2 are slack variables

Solution Points A, B, and C with Slack

PROBLEM DEFINITION:
FLAIR
MAXIMIZATION
Company
DataFURNITURE
and Constraints
Flair Furniture Company
EXAMPLE
(1 ofproduces
19) tables and chairs.
Each table requires: 4 hours of carpentry and 2 hours of painting.
Each chair requires: 3 hours of carpentry and 1 hour of painting.

Available production capacity: 240 hours of carpentry time and 100 hours of
painting time.
Due to existing inventory of chairs, Flair is to make no more than 60 new
chairs.
Each table sold results in $7 profit, while each chair produced yields $5 profit.

Flair Furnitures problem:


Determine the best possible combination of tables and chairs to manufacture
in order to attain maximum profit.

DECISION VARIABLES:
FLAIR
EXAMPLE
(2chairs
of 19)
ProblemFURNITURE
facing Flair is to determine
how many
and tables to produce to yield maximum profit?
In Flair Furniture problem, there are two unknown
entities:
T- number of tables to be produced.
C- number of chairs to be produced.

OBJECTIVE FUNCTION:
FLAIR FURNITURE EXAMPLE (3 of 19)

Objective function states the goal of problem.


What major objective is to be solved?
Maximize profit!

An LP model must have a single objective function.


In Flairs problem, total profit may be expressed as:
Using decision variables T and C Maximize

$7 T + $5 C

($7 profit per table) x (number of tables produced) +


($5 profit per chair) x (number of chairs produced)

CONSTRAINTS:
FLAIR FURNITURE EXAMPLE (4 of 19)
Denote conditions that prevent one from selecting any
specific subjective value for decision variables.
In Flair Furnitures problem, there are three
restrictions on solution.
Restrictions 1 and 2 have to do with available
carpentry and painting times, respectively.
Restriction 3 is concerned with upper limit on the
number of chairs.

CONSTRAINTS:
FLAIR FURNITURE EXAMPLE (5 of 19)
There are 240 carpentry hours available.
4T + 3C < 240
There are 100 painting hours available.
2T + 1C 100
The marketing specified chairs limit constraint.
C 60
The non-negativity constraints.

T 0
(number of tables produced is 0)

C 0
(number of chairs produced is 0)

BUILDING THE COMPLETE


MATHEMATICAL MODEL:
FLAIR FURNITURE EXAMPLE (6 of 19)
Maximize profit = $7T + $5C

(objective function)

Subject to constraints 4T + 3C 240


2T + 1C 100
C 60

(carpentry constraint)
(painting constraint)

(chairs limit constraint)

T 0

(non-negativity constraint on tables)

C 0

(non-negativity constraint on chairs)

CONVERTING INEQUALITIES INTO


EQUALITIES BY USING SLACK:
FLAIR FURNITURE EXAMPLE (7 of 19)
Maximize profit = $7T + $5C + 0s1 + 0s2 + 0s3
Subject to constraints 4T + 3C + s1 = 240

(carpentry constraint)

2T + 1C + s2 = 100

(painting constraint)

C + s3 = 60

(chairs limit constraint)

T 0

(non-negativity constraint on tables)

C 0
(non-negativity constraint on chairs)
s1 s2 s3 0 (non-negativity constraints on slacks)

GRAPHICAL REPRESENTATION OF
CONSTRAINTS:
FLAIR FURNITURE EXAMPLE (8 of 19)

Carpentry time
constaint
4T + 3C 240

GRAPHICAL REPRESENTATION OF
CONSTRAINTS:
FLAIR FURNITURE EXAMPLE (9 of 19)
Carpentry Time Constraint
(feasible area)

Carpentry time and


the feasible region

Any point below


line satisfies
constraint.

GRAPHICAL REPRESENTATION OF
CONSTRAINTS:
FLAIR FURNITURE EXAMPLE (10 of 19)

Painting Time
Constraint and the
Feasible Area
2T + 1C 100
Any point on line
satisfies equation:
2T + 1C = 100
(30,40) yields 100.

GRAPHICAL REPRESENTATION OF
CONSTRAINTS:
FLAIR FURNITURE EXAMPLE (11 of 19)
Chair Limit
Constraint and the
Feasible Solution
Area

Feasible solution
area is constrained
by three limiting
lines

ISOPROFIT LINE SOLUTION METHOD:


FLAIR FURNITURE EXAMPLE (12 of 19)
Let objective function (that is, $7T + $5C) guide one
towards an optimal point in the feasible region.
Plot line representing objective function on graph.
One does not know what $7T + $5C equals at an optimal
solution.
Without knowing this value, how does one plot
relationship?

ISOPROFIT LINE SOLUTION METHOD:


FLAIR FURNITURE EXAMPLE (13 of 19)
Write objective function: $7 T + $5 C = Z
Select any arbitrary value for Z.
For example, one may choose a profit ( Z ) of $210.
Z is written as: $7 T + $5 C = $210.
To plot this profit line:

Set T = 0 and solve objective function for C.


Let T = 0, then $7(0) + $5C = $210, or C = 42.

Set C = 0 and solve objective function for T.


Let C = 0, then $7T + $5(0) = $210, or T = 30.

ISOPROFIT LINE SOLUTION METHOD:


FLAIR FURNITURE EXAMPLE (14 of 19)

One can check for


higher values of Z
to find an optimal
solution.
210 is not the
highest possible
value.

ISOPROFIT LINE SOLUTION METHOD:


FLAIR FURNITURE EXAMPLE (15 of 19)

Isoprofit lines
($210, $280,
$350) are all
parallel.

ISOPROFIT LINE SOLUTION METHOD:


FLAIR FURNITURE EXAMPLE (16 of 19)

Optimal Solution:
Corner Point 4: T=30 (tables) and C=40 (chairs) with $410 profit

ISOPROFIT LINE SOLUTION METHOD:


FLAIR FURNITURE EXAMPLE (17 of 19)
Optimal solution occurs at the maximum point in the feasible region.
It occurs at the intersection of carpentry and painting constraints:

- Carpentry constraint equation: 4T + 3C = 240


- Painting constraint equation : 2T + 1C = 100

If one solves these two equations with two unknowns for T


and C (for Corner Point 4), Optimal Solution is found:
T=30 (tables) and C=40 (chairs) with $410 profit.

CORNER POINT SOLUTION METHOD:


FLAIR FURNITURE EXAMPLE (18 of 19)
From the figure one knows
that the feasible region for
Flairs problem has five
corner points, namely, 1,
2, 3, 4, and 5,
respectively.
To find the point yielding
the maximum profit, one
finds coordinates of each
corner point and computes
profit level at each point.

CORNER POINT SOLUTION METHOD:


FLAIR FURNITURE EXAMPLE (19 of 19)
Point 1 (T = 0, C = 0)
profit = $7(0) + $5(0) = $0
Point 2 (T = 0, C = 60)
profit = $7(0) + $5(60) = $300
Point 3 (T = 15, C = 60)
profit = $7(15) + $5(60) = $405
Point 4 (T = 30, C = 40)
profit = $7(30) + $5(40) = $410
Point 5 (T = 50, C = 0)
profit = $7(50) + $5(0) = $350 .

PROBLEM DEFINITION:
THE GALAXY INDUSTRIES EXAMPLE
(1 of 9)
Galaxy manufactures two toy models:
Space Ray.
Zapper.
Resources are limited to
1200 pounds of special plastic.
40 hours of production time per week.

PROBLEM DEFINITION:
THE GALAXY INDUSTRIES EXAMPLE
(2 of 9)
Marketing requirement
Total production cannot exceed 800 dozens.
Number of dozens of Space Rays cannot exceed
number of dozens of Zappers by more than 450.
Technological input
Space Rays requires 2 pounds of plastic and
3 minutes of labor per dozen.
Zappers requires 1 pound of plastic and
4 minutes of labor per dozen.

PROBLEM DEFINITION:
THE GALAXY INDUSTRIES EXAMPLE
(3 of 9)
Current production plan calls for:
Producing as much as possible of the more profitable
product, Space Ray ($8 profit per dozen).
Use resources left over to produce Zappers ($5 profit
per dozen).
The current production plan consists of:
Space Rays = 550 dozens
Zapper
= 100 dozens
Profit
= 4900 dollars per week

Management is seeking a production


schedule that will increase the companys
profit.

DECISION VARIABLES:
GALAXY INDUSTRIES EXAMPLE
(4 of 9)
Decision variables:
X1 = Production level of Space Rays (in dozens per
week).
X2 = Production level of Zappers (in dozens per week).
Objective Function:
- Weekly profit, to be maximized

BUILDING THE COMPLETE


MATHEMATICAL MODEL:
GALAXY INDUSTRIES EXAMPLE
(5 of 9)
Max. 8X1 + 5X2
(Weekly profit)
subject to
2X1 + 1X2 < = 1200 (Plastic)
3X1 + 4X2 < = 2400 (Production Time)
X1 + X2 < = 800
(Total production)
X1 - X2 < = 450
(Mix)
Xj> = 0, j = 1,2
(Nonnegativity)

GRAPHICAL REPRESENTATION OF
CONSTRAINTS:
X2
GALAXY
INDISTRIES EXAMPLE (6 of 9)
1200
The plastic constraint:
The
Plastic constraint
2X1+X2<=1200
Total production constraint:
X1+X2<=800

Infeasible

600

Production
Feasible
Time
3X1+4X2<=2400

Production mix
constraint:
X1-X2<=450

Boundary points.
Interior points.
There are three types of feasible points
Extreme points.
600

800

X1

SOLVING GRAPHICALLY FOR AN


OPTIMAL SOLUTION

ISOPROFIT LINE SOLUTION METHOD:


GALAXY INDUSTRIES EXAMPLE (7 of 9)

We now demonstrate the search for an optimal solution


X2some arbitrary profit, say profit = $2,000...
Start at
1200
Then increase the profit, if possible...
n
o
i
...and continue until it becomes infeasible
eg
800

Profit
=$5040
4,
Profit
= $ 3,
2,
000

ca
e
R

600

e
h
t
ll

s
a
fe

R
e
l
ib

X1
400

600

800

ISOPROFIT LINE SOLUTION METHOD:


GALAXY INDUSTRIES EXAMPLE (8 of 9)
1200

X2

Lets take a closer look at


the optimal point

800

Infeasible

600

Feasible
Feasible
region
region
400

X1
600

800

OPTIMAL SOLUTION:
GALAXY INDUSTRIES EXAMPLE (9 of 9)
Space Rays = 480 dozens
Zappers
= 240 dozens
Profit
= $5040
This solution utilizes all the plastic and all the production
hours.
Total production is only 720 (not 800).
Space Rays production exceeds Zapper by only 240
dozens (not 450).

MINIMIZATION MODEL EXAMPLES:


FERTILIZER MIX PROBLEM
HOLIDAY MEAL CHICKEN RANCH
EXAMPLE
NAVY SEA RATIONS EXAMPLE

A MINIMIZATION LP PROBLEM
Many LP problems involve minimizing objective such as cost
instead of maximizing profit function.
Examples:
Restaurant may wish to develop work schedule to meet staffing
needs while minimizing total number of employees.
Manufacturer may seek to distribute its products from several
factories to its many regional warehouses in such a way as to
minimize total shipping costs.
Hospital may want to provide its patients with a daily meal plan
that meets certain nutritional standards while minimizing food
purchase costs.

PROBLEM DEFINITION:
FERTILIZER MIX 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 the following data ?
Chemical Contribution
Nitrogen
(lb/bag)

Phosphate
(lb/bag)

Super-gro

Crop-quick

Brand

PROBLEM DEFINITION:
FERTILIZER MIX EXAMPLE (2 of 7)
Decision Variables:
x1 = bags of Super-Gro
x2 = bags of Crop-Quick
The Objective Function:
Minimize Z = $6x1 + 3x2
Model Constraints:
2x1 + 4x2 16 lb (nitrogen constraint)
4x1 + 3x2 24 lb (phosphate constraint)
x , x 0 (non-negativity constraint)

GRAPHICAL REPRESENTATION OF
CONSTRAINTS:
FERTILIZER MIX EXAMPLE (3 of 7)
Minimize Z = $6x1 + $3x2
subject to: 2x1 + 4x2 16
4x2 + 3x2 24
x1, x2 0

Graph of Both Model Constraints

FEASIBLE SOLUTION AREA:


FERTILIZER MIX EXAMPLE (4 of 7)

Minimize Z = $6x1 + $3x2


subject to: 2x1 + 4x2 16
4x2 + 3x2 24
x1, x2 0

Feasible Solution Area

OPTIMAL SOLUTION POINT:


FERTILIZER MIX EXAMPLE (5 of 7)

Minimize Z = $6x1 + $3x2


subject to: 2x1 + 4x2 16
4x2 + 3x2 24
x1, x2 0

Optimum Solution Point

SURPLUS VARIABLES:
FERTILIZER MIX 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 surplus variables in the farmer problem
constraints:
2x1 + 4x2 - s1 = 16 (nitrogen)
4x1 + 3x2 - s2 = 24 (phosphate)

GRAPHICAL SOLUTION:
FERTILIZER MIX 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

Graph of Fertilizer Example

PROBLEM DEFINITION:
HOLIDAY MEAL CHICKEN RANCH
(HMCR) EXAMPLE (1 of 10)

Buy two brands of feed for good, low-cost diet for chickens.
Each feed may contain three nutritional ingredients (protein, vitamin,
and iron).
One pound of Brand A contains:
5 units of protein,
4 units of vitamin, and
0.5 units of iron.
One pound of Brand B contains:
10 units of protein,
3 units of vitamin, and
0 units of iron.

PROBLEM DEFINITION:
HMCR EXAMPLE (2 of 10)
Brand A feed costs ranch $0.02 per pound, while Brand B
feed costs $0.03 per pound.
Ranch owner would like lowest-cost diet that meets
minimum monthly intake requirements for each
nutritional ingredient.

PROBLEM DEFINITION:
HMCR EXAMPLE (3 of 10)

BUILDING THE COMPLETE


MATHEMATICAL MODEL:
HMCR EXAMPLE (4 of 10)
Minimize cost (in cents) = 2A + 3B
Subject to:
5A + 10B 90
(protein constraint)
4A + 3B 48
(vitamin constraint)
A
1
(iron constraint)
A 0, B 0
(nonnegativity constraint)
Where:
A denotes number of pounds of Brand A feed,
and B denote number of pounds of Brand B feed.

BUILDING THE STANDARD LP MODEL:


HMCR EXAMPLE (5 of 10)
Minimize cost (in cents)=2A+3B+0s1+0s2+0s3
subject to constraints:
5A + 10B - s1 = 90

(protein constraint)

4A + 3B - s2 = 48

(vitamin constraint)

A - s3 = 1

(iron constraint)

A, B, s1,s2 s3 0

(nonnegativity)

GRAPHICAL REPRESENTATION OF
CONSTRAINTS:
HMCR EXAMPLE (6 of 10)
Drawing
Constraints:

A 1

4A + 3B 48
5A + 10B 90

Nonnegativity Constraint
A 0, B 0

GRAPHICAL SOLUTION METHOD-ISOCOST


LINE METHOD: HMCR EXAMPLE (7 of 10)
One can start by drawing a 54-cent cost
line : 2A + 3B. = 54

ISOCOST LINE METHOD:


HMCR EXAMPLE (8 of 10)

Isocost line is moved parallel to 54-cent solution line toward lower left origin.
Last point to touch the isocost line while still in contact with the feasible region,
is corner point 2.

ISOCOST LINE METHOD:


HMCR EXAMPLE (9 of 10)

Solving for corner point 2 with two equations produces values 8.4 for
A and 4.8 for B, minimum optimal cost solution is:
2A + 3B = (2)(8.4) + (3)(4.8) = 31.2

CORNER POINT SOLUTION


METHOD:HMCR EXAMPLE (10 of 10)
Point 1 - coordinates (A = 3, B = 12)
cost of 2(3) + 3(12) = 42 cents.
Point 2 - coordinates (A = 8.4, b = 4.8)
cost of 2(8.4) + 3(4.8) = 31.2 cents
Point 3 - coordinates (A = 18, B = 0)
cost of (2)(18) + (3)(0) = 36 cents.
Optimal minimal cost solution:
Corner Point 2, cost = 31.2 cents

PROBLEM DEFINITION:
NAVY SEA RATIONS EXAMPLE (1 of 4)
A cost minimization diet problem
Mix two sea ration products: Texfoods, Calration.
Minimize the total cost of the mix.
Meet the minimum requirements of
Vitamin A, Vitamin D, and Iron.

COMPLETE MODEL:
NAVY SEA RATIONS EXAMPLE (2 of 4)
Decision variables:
X1 (X2) -- The number of portions of Texfoods
(Calration) product used in a
serving.
The Model:
Minimize 0.60X1 + 0.50X2
Subject to
20X1 + 50X2 100 Vitamin A
25X1 + 25X2 100 Vitamin D
50X1 + 10X2 100 Iron
X1, X2
0

GRAPHICAL SOLUTION:
NAVY SEA RATIONS EXAMPLE (3 of 4)
5
4

The Iron constraint

Feasible Region
Vitamin D constraint

2
Vitamin A constraint

SUMMARY OF THE OPTIMAL


SOLUTION: NAVY SEA RATIONS
EXAMPLE (4 of 4)

Texfood product = 1.5 portions


Calration product = 2.5 portions
Cost =$ 2.15 per serving.
The minimum requirement for Vitamin D and iron
are met with no surplus.
The mixture provides 155% of the requirement for
Vitamine A.

SUMMARY OF THE GRAPHICAL


SOLUTION METHODS (1 of 3)
1. Plot the model constraints accepting them as equalities,
2. Considering the inequalities of the constraints identify the
feasible solution region, that is, the area that satisfies all
constraints simultaneously.
3. Select one of two following graphical solution techniques
and proceed to solve problem.
-

Isoprofit or Isocost Method.

Corner Point Method

SUMMARY OF THE GRAPHICAL


SOLUTION METHODS (2 of 3)
Corner Point Method
Determine the coordinates of each of the corner points of
the feasible region by solving simultaneous equations at
each point.
Compute the profit or cost at each point by substituting the
values of coordinates into the objective function and
solving for results.
Identify the optimal solution as a corner point with highest
profit (maximization), or lowest cost (minimization).

SUMMARY OF THE GRAPHICAL


SOLUTION METHODS (3 of 3)
Isoprofit or Isocost Method

Select an arbitrary value for profit or cost, and plot an


isoprofit / isocost line to reveal its slope.
Maintain the same slope and move the line up or down until it
touches the feasible region at one point. While moving the line
up or down consider whether the problem is a maximization or
a minimization problem
Identify the optimal solution as coordinates of the point that is
touched by the highest possible isoprofit line or lowest
possible isocost line (by solving the simultaneous equations)
Read optimal coordinates and compute the optimal profit or
cost.

SPECIAL SITUATIONS IN SOLVING LP


PROBLEMS
(IRREGULAR TYPES OF LP PROBLEMS)

IRREGULAR TYPES OF LINEAR


PROGRAMMING PROBLEMS
For some linear programming models, the
general rules do not apply.
Special types of problems include those with:
Redundancy
Infeasible solutions
Unbounded solutions
Multiple optimal solutions

Redundancy: A redundant constraint is a constraint that


does not affect the feasible region in any way.

Maximize Profit
= 2X + 3Y
subject to:
X + Y 20
2X + Y 30
X 25
X, Y 0

Infeasibility: A condition that arises when an LP problem


has no solution that satisfies all of its constraints.

X + 2Y 6
2X + Y 8
X 7

Unboundedness: Sometimes an LP model will not


have a finite solution

Maximize profit
= $3X + $5Y
subject to:
X 5
Y 10
X + 2Y 10
X, Y 0

MULTIPLE OPTIMAL SOLUTIONS


An LP problem may have more than one optimal
solution.
Graphically, when the isoprofit (or isocost) line
runs parallel to a constraint in the problem
which lies in the direction in which isoprofit (or
isocost) line is located.
In other words, when they have the same slope.

EXAMPLE: MULTIPLE OPTIMAL


SOLUTIONS
Maximize profit =
$3x + $2y
Subject to:
6X + 4Y 24
X 3
X, Y 0

EXAMPLE: MULTIPLE OPTIMAL


SOLUTIONS

At profit level of $12, isoprofit line will rest directly on top


of first constraint line.
This means that any point along the line between corner
points 1 and 2 provides an optimal X and Y combination.

SETTING UP AND SOLVING LP


PROBLEMS USING EXCELS
SOLVER
Using solver to solve Flair Furniture problem:
Recall decision variables T ( Tables ) and
C ( Chairs ) in Flair Furniture problem:
Maximize profit = $7T + $5C
Subject to constraints
4T + 3C 240 (carpentry constraint)
2T + 1C 100 (painting constraint)
C 60
(chairs limit constraint)
T, C 0 (non-negativity)

SOLVER SPREADSHEET SETUP

LP EXCEL AND SOLVER PARTS


Changing cells
Solver refers to decision variables as changing cells.
In Flair Furniture example, there are two decision
variables cells B5 and C5 to represent number of tables
to make (T) and number of chairs to make (C),
respectively.

LP EXCEL AND SOLVER PARTS


Changing Cells
In each of excel layouts, for clarity, changing cells
(decision variables) have been shaded yellow.
Changing Cells ( B5 and C5 )

LP EXCEL AND SOLVER PARTS


Target Cell
Objective function, referred to as target cell by solver,
= SUMPRODUCT(B6:C6,$B$5:$C$5)
This is equivalent to =B6*B5+C6*C5
Target Cell

LP EXCEL AND SOLVER PARTS


Constraints
Each constraint has three parts (1) A left hand side (LHS) part consisting of every term
to the left of the equality or inequality sign.
(2) A right hand side (RHS) part consisting of all terms to
the right of the equality or inequality sign.
(3) An equality or inequality sign.

LP EXCEL AND SOLVER PARTS


Constraints
Each constraint has three parts
1. A left hand side (LHS) part.
2. A right hand side (RHS) part.
3. Equality or inequality sign.
1

ENTERING INFORMATION IN SOLVER


Invoke Solver by clicking Tools|Solver
Specify Target Cell (D6)
Specify Changing Cells (highlight B5, C5)

Flair Furniture
T
C
Tables Chairs
Number Of Units
Profit
Constraints:
Carpentry Hours
Painting Hours
Chairs Limit

4
2

3
1
1

0 <-Objective
0
0
0
LHS

<=
240
<=
100
<=
60
Sign RHS

CONSTRAINTS
Specifying Constraints
Use "Add" constraints to enter relevant cell references for

LHS and RHS.


Either add constraints one at a time or add blocks of

constraints having same sign (<=, >=, or =) at the same


time.
Since all constraints have same <= sign one chose to

highlight all LHS D8:D10 on left and F8:F10 on right


with <= sign.

CONSTRAINTS
Specifying Constraints

SOLVER OPTIONS
Click on Options
button to get Solver
Options window

One must check


boxes titled
Assume Linear
Model
Assume NonNegative

SOLVING MODEL

When Solve button is clicked, Solver executes model and results appear as shown.

Solver Results
window also
indicates the
availability of
three reports
- Answer.
- Sensitivity.
- Limits.

SOLUTION
Optimal solution indicated that one should make 30 Tables
and 40 chairs with an optimal profit of $ 410.
Flair Furniture

Number Of Units
Profit
Constraints:
Carpentry Hours
Painting Hours
Chairs Limit

T
C
Tables Chairs
30
40
7
5
410 <-Objective
4
2

3
1
1

240
100
40
LHS

<=
240
<=
100
<=
60
Sign RHS

POSSIBLE MESSAGES IN
RESULTS WINDOW

FLAIR FURNITURE SOLVER ANSWER


REPORT

USING SOLVER TO SOLVE HOLIDAY


MEAL CHICKEN RANCH PROBLEM
LP formulation for this problem is as follows:
Minimize cost (in cents) = 2A + 3B
subject to constraints
5A + 10B 90

(protein constraint)

4A + 3B 48

(vitamin constraint)

A 1

(iron constraint)

A, B 0

(nonnegativity)

HOLIDAY MEAL CHICKEN RANCH


PROBLEM SPREADSHEET

EXCEL LAYOUT AND SOLVER


ENTRIES

SOLVER ANSWER REPORT

SUMMARY
A mathematical modeling technique called linear
programming (LP) is introduced
LP models are used to find an optimal solution to
problems that have a series of constraints binding the
objective value.
How models with only two decision variables can be
solved graphically is shown
To solve LP models with numerous decision variables and
constraints, one need a solution procedure such as simplex
algorithm.
How LP models can be set up on Excel and solved using
Solver is demonstrated