ADVANCED MATHEMATIC ENGINEERING MKA 1003

ASSIGNMENT 1

2.0 Model a linear programming problem of either maximization or minimization

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problem. Solve the maximization problem by simplex method, whereas minimization
method by duality or 2-phase method.

- Our group choose to solve the maximization problem by simplex method.

1.0 INTRODUCTION

1.1 Linear Programming (LP)

(LP) is a mathematical method for determining a way to achieve the best outcome
(such as maximum profit or lowest cost) in a given mathematical model for some list of
requirements represented as linear equations.

More formally, linear programming is a technique for the optimization of

a linear objective function, subject to linear equality and linear inequality constraints. Given
a polytope and a real-valued affine function defined on this polytope, a linear programming
method will find a point on the polytope where this function has the smallest (or largest)
value if such point exists, by searching through the polytope vertices.

Linear programs are problems that can be expressed in canonical form:

Maximize: cTx
Subject to: Ax ≤ b.

where x represents the vector of variables (to be determined), c and b are vectors of
(known) coefficients and A is a (known) matrix of coefficients. The expression to be
maximized or minimized is called the objective function (cTx in this case). The
equation Ax ≤ b is the constraints which specify a convex polytope over which the objective
function is to be optimized. (In this context, two vectors are comparable when every entry in
one is less-than or equal-to the corresponding entry in the other. Otherwise, they are
incomparable.)
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Linear programming can be applied to various fields of study. It is used most

extensively in business and economics, but can also be utilized for some engineering
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problems. Industries that use linear programming models include transportation, energy,
telecommunications, and manufacturing. It has proved useful in modelling diverse types of
problems in planning, routing, scheduling, assignment, and design.

1.2 Optimization

In mathematics and computer science, optimization, or mathematical programming,

refers to choosing the best element from some set of available alternatives.

In the simplest case, this means solving problems in which one seeks
to minimize or maximize a real function by systematically choosing the values
of real or integer variables from within an allowed set. This formulation, using a scalar, real-
valued objective function, is probably the simplest example; the generalization of
optimization theory and techniques to other formulations comprises a large area of applied
mathematics. More generally, it means finding "best available" values of some objective
function given a defined domain, including a variety of different types of objective functions
and different types of domains.

1.3 Simplex Method

Technique most commonly used to solve a Linear Programming (LP) problem. It is an

algorithm, a step-by-step procedure for moving from corner point to corner point of the
feasible region in such a manner that successfully larger (smaller) values of the objective
function in a maximization (minimization) problem are obtained at each step. The procedure
is guaranteed to yield the optimal solution in a finite number of steps.
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2.0 PROBLEM STATEMENT

COURSEWORK 1
A contractor has identified a set of eight major construction projects that are to be
awarded on the basis of sealed bids. The contractor is reasonably confident of being able to
submit the low bid on each of the projects, but does not have the resources to undertake all of
them. The projects are large in scale, and each will require different level of labour, materials,
and equipment to complete. The contractor’s labour and equipment resources are limited.
Each bid also requires time and special expertise to prepare, and these are limited as well.
The question facing the contractor is which projects should be selected for bidding.

The relevant data for each of the eight projects are presented in Table 1.0, including
the time necessary to prepare a bid and the expected profit that would result from being
awarded and completing each project. Estimates for the major resources needed for a
particular project are also included. For example, project 3-the re decking of an urban bridge
crossing a major river-would require a skilled labour input of about 4000 hours and the use of
a very large crane during almost the entire project. The bid for this project would be the first
of its kind undertaken by this contractor, and would thus take approximately 13 person weeks
to prepare..

The resources available to the contractor for preparing bids and completing projects
that might be awarded are limited. The company owns 3 cranes, each of which is suitable for
any of the projects. Only 30,000 hours of skilled labour are expected to be available to the
contractor during the period of the projects. A team of four project estimators will prepare all
bids so that over the next three months, a total of only 50 person-weeks are available. The
company confidently assumes that it will win any bid that it prepares. Which projects should
be pursued?
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Table 1.0: Estimated resources needed and profit for the bidding problem
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Project Time to prepare Thousands of Crane required Profit IF

bid hours of skilled for the project? Project Won
(person-weeks) labour needed (1=yes) (RM)
(0=no)
1 8 6 1 80
2 12 5 0 110
3 13 4 1 100
4 11 7 0 90
5 9 8 0 70
6 7 3 1 80
7 8 4 1 90
8 8 5 1 60
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3.0 MODEL FORMULATION

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The objective function for a model that will help analyze this problem is the
maximization of expected profit.:

These decision variables allow formulation of the maximum profit objective. They also allow
formulation of the constraint on bid preparation time and the constraints on equipment and
labor resources:

Maximize Z = 80x1 + 110x2 + 100x3 + 90x4 + 70x5 + 80x6 + 90x7 + 60x8

Subject to: 8x1 + 12x2 + 13x3 + 11x4 +9x5 + 7x6 +8x7 +8x8 ≤ 50

6x1 + 5x2 + 4x3 + 7x4 + 8x5 + 3x6 + 4x7 + 5x8 ≤ 30

x1 + x3 + x6 + x7 + x8 ≤ 3

The optimal solution is x1 = x3 = x4= x5 = x6 = x7 = x8 = 0, x2 = 2, x7 = 3

Resulting in a total expected profit of RM580.

.
 ADVANCED MATHEMATIC ENGINEERING MKA 1003
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3.1 Solving Method: Simplex method calculation using Excel Formulation

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* Since the z row indicators of the variables of x 1,x2,x3,x4,x5,x6,x7,and x8 are negative, the current solution is not a minimum. Then, using simplex
method as solution steps to find maximization.

Step 1 : Build the table consists of the column headings of Iteration, Basic, dependent variable, independent variables, RHS and Ration. This is
initial table (zero iteration).

Initial Iteration
Iteration Basis z x1 x2 x3 x4 x5 x6 x7 x8 s1 s2 s3 RHS Ratio
z 1 -80 -110 -100 -90 -70 -80 -90 -60 0 0 0 0 0
0 s1 0 8 12 13 11 9 7 8 8 1 0 0 50 4.166667
s2 0 6 5 4 7 8 3 4 5 0 1 0 30 6
s3 0 1 0 1 0 0 1 1 1 0 0 1 3 

Step 2 : For standard maximization problem, find the pivot column as the most negative column from row 0 (objective function row). For
minimization problem, pivot column as the most positive column. Therefore, the control variable that enters the basis is x 2 because z = -110 is
the smallest negative value of the indicator vector. The x2 column as the pivot column.
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Step 3: Find ratio as RHS / pivot column. The smallest positive ratio gives pivot row. The control variable that leaves the basis is s 1 because
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4.166667 is the smallest positive ratio. The highlighted grey row indicates that s1 is to be removed from the basis and replace by x2. This also
meaning that s1 become the pivot row.

Step 4: The intersection of pivot column and pivot row gives pivot cell.

Successive elimination is used to determine the next candidate solution;

Iteration 1
Successive elimination is used to determine the next candidate
solution;

Iteration Basis z x1 x2 x3 x4 x5
x6 x7 x8 s1 s2 s3 RHS Ratio
- - - -
z 1 6.6667 0 19.1667 10.8333 12.5000 15.8333 16.6667 13.3333 9.1667 0 0 458.3333 27.5000
1 x2 0 0.6667 1.0000 1.0833 0.9167 0.7500 0.5833 0.6667 0.6667 0.0833 0 0 4.1667 6.2500
-
s2 0 2.6667 0 -1.4167 2.4167 4.2500 0.0833 0.6667 1.6667 0.4167 1 0 9.1667 13.7500
s3 0 1 0 1 0 0 1 1 1 0 0 1 3 3.0000
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COURSEWORK 1

Iteration 2
Iteration Basis z x1 x2 x3 x4 x5 x6 x7 x8 s1 s2 s3 RHS Ratio
z 1 10 0 35.8334 10.8333 12.5000 0.8334 0 30 9.1667 0 16.6667 508.3334
-
2 x2 0 0 1 0.4166 0.9167 0.7500 0.0834 0 0 0.0833 0 -0.6667 2.1666
- -
s2 0 2 0 -2.0834 2.4167 4.2500 0.5834 0 1 0.4167 1 -0.6667 7.1666
x7 0 1 0 1 0 0 1 1 1 0 0 1 3

Answer:
z=Optimal Solution x1 x2 x3 x4 x5 x6 x7 x8
508 0 2 0 0 0 0 3 0

INDICATOR:

Pivot
Cell
Pivot Coloumn
Pivot Row
 ADVANCED MATHEMATIC ENGINEERING MKA 1003
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4.0 DISCUSSION
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Linear programming has become nowadays, the mathematical technique most used in
solving a variety of problems related with management, from scheduling, media selection,
financial planning to capital budgeting, transportation and many others, with the special
characteristic that linear programming expect always to maximise or minimise some quantity.

First of all it is known that one of the main advantages of linear programming is that it
fits strictly with reality, as we will see, the example reflects this property. The
first advantage is the calculation facility, as can be checked in the first step where we have to
model or formulate the problem. This is a process where verbal statement is translated to
mathematical statement; here this example is quite simple. The incomes must be maximised
knowing the different prices of scarves and shirts but some limitations have been set which
are called constraints; in this case limitations are related with capacity, time and sales space.

It must be mentioned, another remarkable characteristic of linear programming

problems such as, the adapting facility to reality, which allows solving, by computer
programs, problems with thousands of variables and constraints.

The next step to analyse is what happens when we change the values of the objective
function or in the constraints. This is another advantage of using linear programming, when
can check easily how the results vary when we change the old coefficients for others. This is
called sensitivity analysis, which determines how changes affect the optimal solution to the
original linear programming problem. The range of values over which the current solution
will remain optimal, despite the change of the coefficients, is called range of optimality.

Based on the example above, the optimization easily can be determined using simplex
method. However, the user must understand first how to using this method. If not, the solving
process become difficult. First, the objective is determined which is to obtain the profit
optimization. Second, ensure the constraint during construct the project because the
constraint can effect the optimization of project profit. 3 constraints that was determined such
as time - time to prepare bid (person-weeks), labour resources - thousands of hours of skilled
labour needed and equipment - crane required for the project. The availability of crane by the
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company is 3. Therefore, they have to determine which project that can give the profit
optimization under the 3 constraints.
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As the result, the optimization of profit obtained as RM580 which produced from
project 2 and 7. Project 2 need 2 cranes and project 7 need 3 cranes.

REFERENCES

Paul J.O. (1984), System Analysis for Civil Engineers, Library of Congress Cataloging in
Publication Data, U.S.
Charles S.R., Earl W.J., Jeff R.W. (2004), Civil and Engineering System Analysis, Pearson
Hall Inc., U.S.