Study

LINEAR
PROGRAMMI
NG
Introduction:
Linear Programming is widely used mathematical modelling
technique designed to help managers in planning & decision
making related to resource allocation.

Requirements:
 Problems seek to maximize or minimize an objective

 Constraints limit the degree to which the objective can be

obtained
 There must be alternatives available
 Mathematical relationships are linear

COMMON LP APPLICATIONS
● Two or more products are produced using limited
resources
● Maximize profit based on the profit contribution per
unit of each product
● Determine how many units of each product to
producewas offered to the firms

HIGHNOTE SOUND COMPANY

The company manufactures quality speakers and receivers
● Products require a certain amount of skills which is a
limited supply
○ Each speaker requires 2 hours of electricians time & 3 hours
of technicians
time
○ Each receiver requires 4 hours of electricians time & 1 hour
of technicians time
○ There are 80 hours of electricians time & 60 hours of
technicians time available
○ Each speaker yields a profit of $80 & each receiver yields
$120
● The company wants to determine the best combination of
speakers & receivers to
produce to reach the maximum profit

FORMULATION:
Maximize profit = $80S + $120R
Subject to 2S+4R ≤ 80 (hours of electricians time available)
3S+1R ≤ 60 (hours of technicians time available)
S,R ≥ 0 (Non-negative constraints)