LINEAR

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PROGRAMMING

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 What islinearprogramming?

Why is this called “linear” programming?

What are the key assumptions in linear

Linear
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Programming
What are the different components of a
linear program?

What is most important step inlinear

programming technique?

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 Linear programming has nothing to do with
computer programming
The use of the word “programming”
here means “choosing a course of
action”
Linear programming involves choosing a
Linear course of action when the mathematical
model of the problem contains only linear
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functions. In life most problems can be solved
(LP) Problems considering them as linear.
The course of action is an Algorithm which
provides fixed computational rules that are
applied repetitively to the problem, with
each repetition (called iteration) moving the
solution closer to the optimum.

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 Stages in Linear Programming
Problems.
• Formulation
– 1. Identify the Decision Variables
– 2. Define the Objective Function.
– 3. Write the Constraints
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– 4. Write the non-negativity constraints.

• Solution
– Graphical Solution
– Simplex Solution
– Excel Solver solution
• Sensitivity Analysis
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 LPP Problem 1

• A manufacturing firm is engaged in producing 2 products A & B.

Each unit of product A requires 5 kgs of raw material & 4 labour
hours for processing, whereas each unit of product B requires 3 kgs
of raw material & 6 labour hours of the same type. Every week the
firm has a availability of 80 kg of raw material and 100 labour hours.
One unit of A sold yields Rs 45/- and one unit of B sold gives Rs 30/-
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as profit. Formulate this problem as a linear programming problem
to determine as to how many units of each of the products should
be produced each week so that the firm can maximize its profits.
There is no marketing constraint & it is presumed that whatever is
manufactured is sold.

Observe Viacom for explanation of formulation

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 LPP Problem 2
• A firm uses three machines in the manufacture of three products. Each unit of product A
requires 4 hours on machine I, 3 hours on machine II and two hours on machine III. Each
unit of product B requires 5 hours on machine I, two hours on machine II, and 4 hours on
machine III. Each unit of product C requires 3 hours on each of the three machines. The
contribution margin of the three products is Rs 40, Rs 60 and Rs 38 per unit respectively.
The machine hours available on three machines are 90, 54 and 124 hours respectively.
• Formulate the above as a LPP.
• Obtain optimal solution to the problem using the simplex method. Which of the three
products shall not be produced by the firm? Why? Interpret the result.
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KP2WFEJ3RX • Calculate the percentage of capacity utilization for each machine as derived from the
optimal solution.
• What are the shadow prices of the machine hours?
• If for some reason the company has to manufacture 5 units of product A, what would be
the effect on the profit contribution & on the solution mix?
• Would there be a change in the solution if there is a 20% increase in hours available on
machine II?

Observe Excel screen for explanation of formulation, solution & interpretation of solution

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 LPP Problem 3

• A firm produces three products P, Q & R, each of which need to be

processed in three departments Milling, Grinding & packaging. Each
unit of product P requires 4, 5 and 3 hours in each of the three
departments. Likewise product Q requires 8, 5 and 5 hours, wherase
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product R requires 2, 5 and 6 hours respectively in the three
departments. Everyday 96, 108 and 150 hours are available in the
three departments. The unit contribution of the products is Rs 6, 12
& 8 for product P, Q & R respectively. Formulate the given problem
as an LPP and find the solution.

Observe Excel screen for explanation of formulation, solution & interpretation of solution

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 Solution Approaches to Linear
Programming Problems
• Graphical Solution
• Simplex Solution
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• Excel Solution & Interpretation.

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• (We will limit ourselves to Graphical solution

& Excel solution)
• Integer Programming Problems

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 Transportation Model Stages.

Maximisation Problem or Minimisation Problem?

If problem is a Minimisation Problem, proceed with

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Else convert the maximisation problem into a minimisation
Problem & later proceed with solution methodology.

Is the given Problem a balanced problem OR is the sum total

of source availability equal to total of destination demand?

If not add Dummy rows or columns to equalise the total of

source availability & destination demand.

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 Transportation Problem
Manufacturing Market Market Market Total
Plants D E F
Plant 6 4 1 70
A
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B
Plant 4 4 2 90
C
Total 40 115 65 220
Reqm

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 Assignment Problem – Cost of Mfg
Machine Machine Machine Machine
M1 M2 M3 M4
Job J1 5 7 11 6

borade.vijay@gmail.com Job J2 8 5 9 6
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Job J3 4 7 10 7

Job J4 10 4 8 3

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 Travelling Salesman Problem
A B C D E

A -- 3 6 8 2

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C 9 8 -- 5 8

D 13 5 7 -- 6

E 5 4 3 9 --

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 Travelling Salesman Problem 2

To
From C1 C2 C3 C4 C5 C6
C1 -- 48 50 38 70 54
C2
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C3 52 37 -- 40 47 51
C4 36 48 51 -- 46 48
C5 68 43 50 45 -- 50
C6 55 47 44 46 47 --

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