Linear Programming Models

in Services

Learning Objectives
Describe the features of constrained optimization
models.
Formulate LP models for computer solution.
Solve two-variable models using graphics.
Explain the nature of sensitivity analysis.
Solve LP models with Excel Add-in Solver and
interpret the results.
Formulate a goal programming model.

Stereo Warehouse
Let x = number of receivers to stock
y = number of speakers to stock
Maximize 50x + 20y
gross profit
Subject to 2x + 4y 400 floor space
100x + 50y 8000 budget
60 sales limit
x
x, y 0

Diet Problem
Lakeview Hospital
Let E = units of egg custard base in the shake
C = units of ice cream in the shake
S = units of butterscotch syrup in the shake
Minimize
Subject to

015
. E 0.25C 010
. S
50 E 150C 90S 175

100C 50S 150

70 E 10C
200
30 E 80C 200S 100

E , C, S 0

cholesterol
fat
protein
calories

Shift-Scheduling Problem
Gotham City Police Patrol
Let xi = number of officers reporting at period i for i =1, 2, 3, 4, 5, 6
Minimize

x1 x2 x3 x4 x5 x6

x1

+ x6

x1 + x2

period 1

14

x2 + x3
x3 + x4
x4 + x5
x5 + x6

period 2
period 3

period 4

12

period 5

16

period 6

Workforce-Planning Problem
Last National Drive-in Bank
Let Tt = number of trainees hired at the beginning of period t
for t = 1,2,3,4,5,6
At = number of tellers available at the beginning of period t
for t = 1,2,3,4,5,6
Minimize
6

(600 A 300T )

subject to

t 1

160 A1 80T1 1500

160 A2 80T2 1800
160 A3 80T3 1600
160 A4 80T4 2000
160 A5 80T5 1800
A = 12
160 A6 180T6 2200

At , Tt

for t = 2,3,4,5,6
0 and integer for t = 1,2,3,4,5,6

0.9 At 1 Tt 1 At 0

Transportation Problem
Lease-a-Lemon Car Rental
Let

xij = number of cars sent from city i to city j for i = 1,2,3 and j = 1,2,3,4

Minimize 439x11 + 396 x12 + . . . +479x33 + 0x34

subject to

x11 + x12 + x13 + x14

= 26
x21 + x22 + x23 + x24

= 43
x31 + x32 + x33 + x34 = 31

x11

+ x21
x12

+ x31
+ x22

x13

+ x32
+ x23

x14

= 28
+ x33

+ x24
xij

= 32

0 for all i , j

= 26
+ x34 = 14

Graphical Solution
Stereo Warehouse

Z=3800
Z=3600
Z=3000 200

Z=2000 150

100

50

0
A
0

Optimal solution
( x = 60, y = 40)

50 B

100

150

200

Model in Standard Form

Let s1 = square feet of floor space not used
s2 = dollars of budget not allocated
s3 = number of receivers that could have been sold
Maximize Z = 50x + 20y
subject to
2x + 4y + s1
100x + 50y

= 400 (constraint 1)
+ s2

= 8000 (constraint 2)
+ s3 =

x, y, s1, s2, s3

60 ( constraint 3)
0

Stereo Warehouse
Extreme-Point Solutions
Extreme
point
A

Nonbasic
variables
x, y

Basic
variables
s1

Variable
value
400

s2

8000

s3

60

s1

280

s2

2000

s 3 , s2

x
s1

60
120

3800

s 1 , s2

y
x
s3

40
60
20

3600

s 1, x

y
x
s3

80
40
60

2000

y
s2

100
3000

s 3, y

Objective-function
value Z
0

3000

Sensitivity Analysis
Objective-Function Coefficients
200

z = 50x + 20y

150
x 60

100

2 x 4 y 400 (constraint 1)

100 x 50 y 8000 (constraint 2)

50

(constraint 3 )

50 B

100

150

200

Sensitivity Analysis
Right-Hand-Side Ranging
200

x 60

150

(constraint 3 )

100
D

50

100 x 50 y 8000

50 B I 100

150

200

(constraint 2)

Goal Programming
Stereo Warehouse Example
Let x = number of receivers to stock
y = number of speakers to stock
d1

= amount by which profit falls short of $99,999

d = amount by which profit exceeds $99,999
d 2 = amount by which floor space used falls short of 400 square feet
d 2 = amount by which floor space used exceeds 400 square feet
d 3 = amount by which budget falls short of $8000
d 3 = amount by which budget exceeds $8000
d 4 = amount by which sales of receivers fall short of 60
d 4 = amount by which sales of receivers exceed 60
Pk = priority level with rank k

Minimize
subject to

Z Pd
1 4 P2 ( d1 2d 3 ) P3 ( d 21 2 d 2 )

50 x 20 y d1 d1 99,999
2 x 4 y d 2 d 2 400
100 x 50 y d 3 d 3 8000
x d 4 d 4 60

x , y , d1 , d1 , d 2 , d 2 , d 3 , d 3 , d 4 , d 4 0

profit goal
floor-space goal
budget goal
sales-limit goal

Topics for Discussion

How can the validity of LP models be evaluated?
Interpret the meaning of the opportunity cost for a
nonbasic decision variable that did not appear in the LP
solution.
Explain graphically what has happened when a degenerate
solution occurs in an LP problem.
Is LP a special case of goal programming? Explain.
What are some limitations to the use of LP?