6.

LINEAR PROGRAMMING

6.1 The Linear Programming Problem

♦Regardless of the way one defines Linear Programming, certain basic
requirements are necessary before the technique can be used for
optimization problems

Requirements of
Linear

Programming
Non negative
restriction

Decision
Variables
Courses of
Objective Constraints
action
Function

i) Decision Variables
- These refer to candidates that are competing with one another
for sharing limited resources. These variables are usually
interrelated in terms of resource utilization and need
simultaneous equations
- The relationship among these variables must be clear

MME 8201 Industrial Modeling & Algorithms Dr Kizito Paul Mubiru

 ii) Objective Function
- A clearly defined objective function to optimize which may either
be to maximize contribution by utilizing available resources or
producing at the lowest possible cost by limited amount of
productive factors
- This is expressed as a linear function of the decision variables

General form

Optimize (maximize or minimize) Z = 𝐶1 𝑋1 +𝐶2 𝑋2 +………+𝐶𝑛 𝑋𝑛

where Z = measure of performance variable; which is a function

of 𝑋1 , 𝑋2 , …………………..𝑋𝑛

𝐶1 , 𝐶2 , …………………..𝐶𝑛 are parameters that give the

contribution of a unit of a respective variable to measure the
performance of Z

iii) Presence of constraints/restrictions

- There must be limitations or constraints on the use of limited
resources which are to be allocated among competing activities
- These constraints must be capable of being expressed and linear
inequalities
- The solution of LP must satisfy these constraints

iv) Alternative courses of action

- There must be alternative courses of action. For example it must
be possible to make a selection between various combinations of

MME 8201 Industrial Modeling & Algorithms Dr Kizito Paul Mubiru

 the productive factors such as manpower, machines, materials,
market etc.
v) None negative restriction
All decision variables must assume positive values as negative
values of physical quantities is an impossible solution

ie 𝑋𝑖 ≥ 0

6.2 Formulating Linear Programming Problems

Steps

1. Identify the decision variables

2. Define the objective function
3. Generate constraints
4. Explicitly state the non-negativity restrictions

Example: Product-mix Problem

A factory manufactures two products A and B. To manufacture one unit of A, 1.5

machine hours and 2.5 labor hours are required. To manufacture product B, 3.0
machine hours and 4.5 labor hours are required. In a month, 300 machine hours
and 240 labor hours are available. The profit unit for A is $50 and for B is $40.
Formulate the Linear Programming (LP) problem.

Resource per unit

Products Machine Labor
A 1.5 2.5
B 3.0 4.5
Available(hrs) 300 240
Profit($) 50 40

MME 8201 Industrial Modeling & Algorithms Dr Kizito Paul Mubiru

There will be two constraints: one for machine hours availability and one
for labor hours availability

Decision variables

𝑋1 = Number of units of A manufactured per month

𝑋2 = Number of units of B manufactured per month

Objective function

Maximize Z = 50 𝑋1 + 40 𝑋2

Constraints

Machine hours: 1.5 𝑋1 + 3.0 𝑋2 ≤ 300

Labor Hours: 2.5 𝑋1 + 4.5 𝑋2 ≤ 240

Non-negativity: 𝑋1 , 𝑋2 ≥ 0

Linear Programming Model

Maximize Z = 50 𝑋1 + 40 𝑋2

Subject to: 1.5 𝑋1 + 3.0 𝑋2 ≤ 300

2.5 𝑋1 + 4.5 𝑋2 ≤ 240

𝑋1 , 𝑋2 ≥ 0

6.3 Graphical LP Solution

Consider the following LP model for illustration

MME 8201 Industrial Modeling & Algorithms Dr Kizito Paul Mubiru

 Maximize Z = 3 𝑋1 + 2 𝑋2

Subject to: 𝑋1 + 2 𝑋2 ≤ 6 (1)

2 𝑋1 + 𝑋2 ≤ 8 (2)

- 𝑋1 + 𝑋2 ≤ 1 (3)

𝑋2 ≤ 2 (4)

𝑋1 ≥ 0 (5)

𝑋2 ≥ 0 (6)

X2

7 (3)

2 (4)

1 2 3 4 5 6 7 8 9 10
(2) (1) X
1

MME 8201 Industrial Modeling & Algorithms Dr Kizito Paul Mubiru

Within or on the boundary of the solution space ABCDE satisfies the
constraints. The optimal solution is represented by the point on the extreme
right on the solution space (point C).

The exact values of X1 and X2 are obtained by solving the equations of

constraint 1 and constraint 2 simultaneously; yielding

X1 = 10/3

X2 = 4/3

Point C has coordinates (10/3 , 4/3)

The maximum value of Z is given as

Z = 3(10/3) + 2(4/3) = 38/3

6.4 Graphical Sensitivity Analysis

In sensitivity analysis, we are interested in two types of analysis:

(i) How much can a resource be increased in order to improve

the optimum value of the objective function?
(ii) By how much can a resource be decreased without causing a
change in the optimum value?

We first classify the constraints of the LP problem as either binding or non

binding

Binding constraint - must pass through the optimum solution point

Nonbinding constraint – Does not pass through the optimum solution point

MME 8201 Industrial Modeling & Algorithms Dr Kizito Paul Mubiru

Considering the previous graphical example, constraints 1 and 2 are binding
constraints

Constraints 3 , 4 and 5 are non binding constraints

REFERENCES

[1] Balnaver M, Caputi P Introduction to Quantitative Research Methods,

SAGE Publications Ltd, 2001
[2] Brandimarte P Quantitative Methods: An Introduction for Business
Management, John Wiley and Sons, 2011
[3] Aidley D Introducing Quantitative Methods: A Practical Guide,
Bloomsbury, 2018
[4] Canela M.A., Alegre I, Ibarra A Quantitative Methods for Management A
Practical Approach, Springer International Publishing, 2014
Ad

MME 8201 Industrial Modeling & Algorithms Dr Kizito Paul Mubiru