Guidelines for Problem Formulation

• Understand the problem thoroughly

• Describe the objective
Linear Programming
• Describe each constraint
• Type of optimization problem • Define the decision variables
• Problems Objective: maximization or • Write the objective in terms of the
minimization of some quantity decision alternatives
• All LP problems have constraints that limit • Writhe the constraints in terms of the
the degree to which the objective can be decision alternatives
pursued
• Feasible Solution – satisfies all the
problems’ constraints. Using graphs,
feasible solutions can be found in the
feasible region. Linear programming
problems may or may not have a feasible
solution.
• Optimal Solution – a feasible solution that
results in the largest possible objective
function value when maximizing (or
smallest when minimizing). Using graphs, it
can be found at an extreme point of the
feasible region
• Graphical Solution Method – used to solve
a linear program with two variables.
• Linear – because relationships can be
expressed in a straight line
• Programming – not in the sense of a
computer program, but as a part of
planning and choosing a course of action
• Linear Functions – functions in which each
variable appears in a separate term raised
to the first power and is multiplied by a
constant (which may be 0)
• Linear Constraints – linear functions that
are restricted to be “less than or equal to”,
“equal to”, or “greater than or equal to” a
constant
Problem Formulation

• Problem formulation or modeling – process

of translating a verbal statement of a
problem into a mathematical statement
called the mathematical model
• Mathematical Model – representation of a
problem where the objective and all
constraint conditions are described by
mathematical expressions
 • Constraints are represented by a
straight line
• The area bounded by the
constraints is a feasible solution
area (feasible region) – every single
point within that area is a possible
solution. However, you can usually
find optimal solutions in each
corner (extreme points).
2. Simplex Method
• A popular algorithm first developed
in the 1940s
• It is used for LP problems that
contain more than two variables
• The procedure is long but not hard
• Follows simple rules and can be
more easily understood by doing
rather than reading

Two Methods of Solving LP Optimization Problems:

1. Graphical Method
• Can only be used for problems with
two variables
• Each axis represents a variable
Slack and Surplus Variables, Standard Form

• In an optimization problem, a slack variable

is a variable that is added to the left-hand
side of a less-than-or-equal-to constraint to
transform it into an equality. The value of
this variable can usually be interpreted as
the amount of unused resource.
• Meanwhile, a surplus variable is a variable
subtracted from the left-hand side of a
greater-than-or-equal to constraint to
convert the constraint into an equality. The
value of this variable can usually be
 interpreted as the amount over and above
some required minimum level.
• A linear program in which all the variables
are non-negative and all the constraints are
equalities is said to be in standard form.
Standard form is attained by adding slack
variables to “less than or equal” to
constraints, and by subtracting surplus
variables from “greater than or equal to”
constraints.
• Slack and surplus variables represent the
difference between the left and right ides
of the constraints. (Simplex)
• Slack and surplus variables have objective Computer Solutions
function coefficients equal to 0.
• Computer programs designed to solve LP
• Redundant constraint is a constraint that
problems are now widely available. LP
does not affect the feasible region and
problems involving 1000s of variables and
cannot affect the optimal solutions.
1000s of constraints are now routinely
solved with computer packages
• Most large LP problems can be solved with
just a few minutes of computer time. Small
LP problems usually require only a few
seconds
• Linear programming solvers are now part of
many spreadsheet packages, such as
Microsoft Excel
• Leading commercial packages include
CPLEX, LINGO, MOSEK, Xpress-MP, and
Premium Solver for Excel
 Special Cases
1. Alternative Optimal Solutions
• Happens when there are more than
one solution that provides the
optimal value for the objective
function
• A linear programming problem with
alternative optimal solutions is
generally a good situation for the
manager or decision maker. It
means that several combinations of
the decision variables are optimal
and that the manager can select the
most desirable optimal solution
2. Infeasibility
• Means that no solutions to the
linear programming problem
satisfies all the constraints,
including the nonnegativity
conditions
• Graphically, infeasibility means that
a feasible region does not exist
3. Unbounded
• The solutions of a maximization
linear programming problem is
unbounded if the value of the
solution may be made infinitely
large without violating of the
constraint.
• For a minimization problem, the
solution is unbounded if the value
Feasible Region may be made infinitely small
• This condition might be termed
• The feasible region for a two-variable linear managerial utopia as theoretically,
programming problem can be nonexistent, managers may achieve unlimited
a single point, a line, a polygon, or an profit.
unbounded area
• A linear program may fall in one of three
categories:
o Has unique optimal solution (eg:
has alternate optimal solutions)
o Is feasible
o Has an objective function that can
be increased without bound
• A feasible region may be unbounded and
yet there may be optimal solutions. This is
common in minimization problems and is
possible in maximization problems