MGOC10 Analysis for Decision Making

Lecture 02

Chapter 2 – Solving LP Graph Method & Sensitivity Analysis of Constraints

LP terminology

Example – Giapetto’s problem

MAX Z = 3X1 + 2X2

S.T. 2X1 + X2  100 (finishing)
X1 + X2  80 (carpentry)
X1  40 (soldier demand)
X1 0 , X2 0

 Any specification of values for variables is called a solution eg. X1 = 60, X2 = 10.

 Feasible solution is a solution that satisfies all constraints and sign restrictions
eg. [X1 = 40, X2 = 20] or [X1 = 30.5, X2 = 20.001] or …

 The feasible region is set of all feasible solutions.

 Given many feasible solutions, goal is to find the best or optimal solution.
 For max problem, optimal (best) solution is one which maximizes value of objective.
 For min problem, it is one which minimizes objective.

 Solutions which are intersection of 2 or more constraints are called corner feasible
solutions (at corner of feasible region). The optimal solution for an LP must be a corner
feasible solution.

 LPs can have one optimal solution, multiple optimal solutions, or problem can be
infeasible (no feasible solution) or unbounded ( Z = ∞ or Z = - ∞)

Slack

Given optimal solution, can compute the slack for any “≤” constraints.
Slack = right hand side – left hand side.

Optimal solution for Giapetto, X1* = 20, X2* = 60

 For X1 + X2  80 hrs, Slack = 80 – (X1* + X2*) = 80 – (20 + 60) = 0.

 For X1  40 units, Slack = 40 – X1* = 40 – 20 = 20.

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Excess
Given optimal solution can compute excess for any “≥” constraints.

Excess = left hand side – right hand side.

A = gallons of product A produced, B = gallons of product B produced

MIN Z = 2A + 3B
ST. A ≥ 125 (A Req.)
A + B ≥ 350 (A & B Req.)
2A + B ≤ 600 (process time)
A, B ≥ 0

Optimal solution for M & D chemical, A* = 250, B* =100

 For A + B ≥ 350 gallon, excess = A* + B* - 350 = 250 + 100 - 350 = 0

 For A ≥ 125 gallon, excess = A* - 125 = 250 - 125 = 125

 Given the optimal solution, a constraint is said to be binding if the LHS = RHS

 For binding constraints → Excess (or Slack) = 0

Example #1 – two product 3 machine

A company produces two products using three machines. The price of each product, time each
product takes to produce and amount of time available on each machine is given below.
Formulate a LP model to determine the number of products 1 and 2 to produce to maximize total
revenue. Solve the problem using graphical method. Perform some sensitivity analysis on what
happens if you have more mach 1 hour? Machine 2 hour?

Machine Product 1 Product 2 Hours Available

1 1 0 4
2 0 2 12
3 3 2 18
Prices $3 $5

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Example #2 – problem is infeasible

MAX Z = 3X1 + 5X2

S.T. X1 ≥ 5
2X1 + 2X2 ≤ 8
X1, X2  0

Example #3 – minimization problem

MIN Z = 50X1 + 100X2

S.T. 7X1 + 2X2 ≥ 28
2X1 + 12X2 ≥ 24
X1, X2  0

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Example #4 - problem is unbounded

MAX Z = 2X1 - X2
S.T. X1 – X2  1
2X1 + X2 ≥ 6
X1, X2  0

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Example #5 – multiple optimal solutions

MAX Z = 3X1 + 2X2

S.T. X1  4
2X2  12
3X1 + 2X2 ≤ 18
X1, X2 0