Linear Programming

Eco: - 357
Mathematical Economics

Prepared for
Dr. Amir Hussain
Department of Economics
East West University

Prepared by
Kazi Sohag
2005-2-30-016

Date: Sunday, March

 Primal problem
C 40 X 1 20 X 2 60 X 3
Subject to
2 X 1 4 X 2 10 X 3 24
Minimizing cost 5 X 1 X 2 5 X 3 8
X1, X 2 , X 3 0

Duel Problem
Maximize 24V1 8V2
Subject to
2V1 5V2 40
4V1 V2 20
10V1 5V2 60
Basic Solution
V1 V2 Corner Feasible
Point
0 0 O(0,0) Yes
0 8 B(0,8) Yes
20 0 C(20,0) No
0 20 D(0,20) No
5 0 E(5,0) Yes
0 12 F(0,12) No
6 0 G(6,0) No
4 4 H(4,4) Yes
2.5 7 I(2.5,7) Yes
3.33 6.67 J(3.33,6.66) No

Slope
24V1 8V2
8V2 24V1

V2 3V1
8
Slope 3
Slope -3 tangent the highest feasible point at H and which point contain the maximum
profit.

whenV1 4, V2 4
24V1 8V2
Max 24(4) 8(4)
Max 128
2V1 5V2 t1 40
t1 12
4V1 V2 t 2 20
t2 0
10V1 5V2 t 3 60
t3 0
X1 0
X 2 0, X 3 0
If the decision variables in primal problem are positive (e.g. X 1 , X 2 , X 3 0) ,
corresponding slack variables in the duel problem will be zero and vice versa.
4 X 2 10 X 3 24
X 2 5X 3 8
X 2 4, X 3 0.8
MinCost
C 40 X 1 20 X 2 60 X
C 0 20( 4) 60(0.8)
C 80 48
C 128

It is proved since C 128

Thus, the minimum value of C is the as the maximum value of . Notice that the
optimum solutions that produce this optimal value are different: (0,4,0.8) is the optimal
solution for primal problem and (4,4) is the optimal solution for the duel problem. The
theorem only guarantees that the optimal values of a minimization problem and its duel
are equal, not that the optimal solution are same.

Thank you,