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
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.
Solution
Mathematical relationships resulting from formulation process are
solved to identify optimal solution.
or A + B C
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.
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:
Decision Variables
Objective
Function:
Resource
Constraints:
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
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
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
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
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
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
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.
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.
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.
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)
$7 T + $5 C
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)
(objective function)
(carpentry constraint)
(painting constraint)
T 0
C 0
(carpentry constraint)
2T + 1C + s2 = 100
(painting constraint)
C + s3 = 60
T 0
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)
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 lines
($210, $280,
$350) are all
parallel.
Optimal Solution:
Corner Point 4: T=30 (tables) and C=40 (chairs) with $410 profit
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
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
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
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
X2
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).
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
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)
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)
(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
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.
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
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
Feasible Region
Vitamin D constraint
2
Vitamin A constraint
Maximize Profit
= 2X + 3Y
subject to:
X + Y 20
2X + Y 30
X 25
X, Y 0
X + 2Y 6
2X + Y 8
X 7
Maximize profit
= $3X + $5Y
subject to:
X 5
Y 10
X + 2Y 10
X, Y 0
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
CONSTRAINTS
Specifying Constraints
SOLVER OPTIONS
Click on Options
button to get Solver
Options window
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
(protein constraint)
4A + 3B 48
(vitamin constraint)
A 1
(iron constraint)
A, B 0
(nonnegativity)
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