Name of the Teacher: Gayathri Ravikumar

Department: Commerce PG.

Subject/paper Quantitative Techniques for Business Decision-1

Class M.com
Year II/SEM IV
Date 13/04/2020
Class Time 9:30-10:30
Unit V
Topic Linear programing

Introduction:

Linear programming (LP) can ease the task of solving a particular type of planning
problem. LP is a mathematical method or set of procedures to solve and interpret the
results of a model of Linear functions that in conjunction represents a phenomenon,
generally related to production or industry environments.
The mathematical technique for solving LP problems was developed by George
Dantzig in 1947 to solve planning problems in the U.S. Air Force.

Practical applications of LP:

Economicss
Engineering
Mathematics
Agriculture
Business
Transport
Manufacturing

Introduction Structure of a LP Model

To analyze a problem using LP, it must be molded into a particular structure that at
least must contain the following components:

Objective – to obtain the best or optimal solution Activities or decision variables

 What to do?
 How much to produce?
 When to Produce ?

Constraints or restrictions – Limits on the availability of a resource.

Steps in Solving LPP

Step:1 Find Maximum or Minimum

 Steo:2 Subject to Constrain
Step :3 Non negativity assumption of variables.

Problems on LPP

1) A company manufactures dolls of three designs. Design 1 requires one minute of

molding, two minutes of painting and one minute of finishing and packing. Design
two requires two minutes of molding, one minute of painting and one minute of
finishing and packing. Design 3 requires two minutes of molding, one minute of
painting and two minutes of finishing and packing. Suppose 420 minutes of molding
time, 450 minutes of painting and 480minutes of finishing and packing are available
per day. Suppose also that each doll of design one contributes Rs 1.50, each doll of
design two contributes Rs 2 and each doll of design 3 contributes Rs1.80 to the total
profit. Formulate the problem of deciding how many of the different designs of dolls
should be made each day.

Sol) (i) Z(max)=1.5X1+2X2+1.8X3

(ii) Subject to constraints:-

D1 D2 D3
X1+2X2+2X3 <=420(molding)
2X1+X2+X3<=450(painting)
X1+X2+2X3<=480(finishing and painting)

(iii) Non negativity assumption of variables:-

X1,X2,X3>=0

Now , only consider D1 and D2 (convert inequation to equality)

X1+2X2=420 2X1+X2=450 x1+x2=480
Let x1=0 let x1=0 let x1=0
2x2=420 x2=450 x2=480
X2=210 x2=450 x2=480
Let x2=0 let x2=0 let x2=0
X1=420 2X1=450 x1=480
X1=420 x1=225 x1=480
i.e (42,21) (22.5,45) (48,48)
(x,y) (x,y) (x,y)

Plot the above values on graph

We get A(0.22.5) B(14,16) C(22.5,0)
We have Z(max)=1.5X1+2X2
Substitute the values of A,B,c in above equation

We get B=53 A=45 max C=33.75

Therefore Maximum is at B(14,16)

Design 1- 14 dolls should be made

Design 2- 16 dolls should be made.