Module 1: Linear Programming: Model Formulation and Graphical Solution

What is Linear Programming

 is a model that consists of linear relationships representing a firm’s decision(s), given an objective
and resource constraints.
 When a manager attempts to solve a general type of problem by seeking an objective that is subject to
restrictions, the management science technique called linear programming is frequently used.
 The linear programming technique derives its name from the fact that the functional relationships in the
mathematical model are linear, and the solution technique consists of predetermined mathematical steps –
that is, a program

Model Formulation
A linear programming model consists of certain common components and characteristics
 Decision variables are mathematical symbols that represent levels of activity by the firm
 The objective function is a linear relationship that reflects the objective of an operation
 A model constraint is a linear relationship that represents a restriction on decision making. The actual
numeric values in the objective function and the constraints, such as hours of available labor, are
parameters.

A Maximization Model Example

Graphical Solutions of Linear Programming Models

Graphical solutions are limited to linear programming problems with only two decision variables

The graphical method provides a picture of how a solution is obtained for a linear programming
problem.

Graphical Solution of a maximization Model

  The first step in drawing the graph of the model is to plot
the constraints on the graph. This is done by treating
both constraints as equations (or straight lines) and
plotting each line on the graph
 A simple procedure for plotting this line is to determine
two points that are on the line and then draw a straight
line through the points. One point can be found by
letting x1 = 0 and solving for x2:
 Thus, one point is at the coordinates x1 = 0 and x2 = 20.
A second point can be found by letting x2 = 0 and solving
for x1: