LP Model Formulation

• Decision variables
– mathematical symbols representing levels of activity of an operation

• Objective function
– a linear relationship reflecting the objective of an operation – most frequent objective of business firms is to maximize profit – most frequent objective of individual operational units (such as a production or packaging department) is to minimize cost

• Constraint
– a linear relationship representing a restriction on decision making

LP Model Formulation (cont. =. ≥) bm xj = decision variables bi = constraint levels cj = objective function coefficients aij = constraint coefficients z = c1x1 + c2x2 + . =. + amnxn (≤. =... ≥) b2 : am1x1 + am2x2 + .. + a2nxn (≤.... + a1nxn (≤. ≥) b1 a21x1 + a22x2 + ...) Max/min subject to: a11x1 + a12x2 + . + cnxn .

LP Model: Example RESOURCE REQUIREMENTS PRODUCT Bowl Mug Labor (hr/unit) 1 2 Clay (lb/unit) 4 3 Revenue ($/unit) 40 50 There are 40 hours of labor and 120 pounds of clay available each day Decision variables x1 = number of bowls to produce x2 = number of mugs to produce .

x2 0 (labor constraint) (clay constraint) Solution is x1 = 24 bowls Revenue = $1.360 x2 = 8 mugs .LP Formulation: Example Maximize Z = $40 x1 + 50 x2 Subject to x1 + 4x1 + 2x2 40 hr 3x2 120 lb x1 .

Plot model constraint on a set of coordinates in a plane 2. Identify the feasible solution space on the graph where all constraints are satisfied simultaneously 3. Plot objective function to find the point on boundary of this space that maximizes (or minimizes) value of objective function .Graphical Solution Method 1.

Graphical Solution: Example x2 50 – 40 – 30 – 20 – 10 – 0– | 10 | 20 | 30 | 40 Area common to both constraints x1 + 2 x2 40 hr 4 x1 + 3 x2 120 lb | 50 | 60 x1 .

Computing Optimal Values x2 40 – 4 x + 3 x 120 lb 1 2 30 – 20 – 10 – 8 x1 + 4x1 + 4x1 + -4x1 2x2 = 3x2 = 8x2 = 3x2 = 5x2 = x2 = x1 + 2 x2 40 hr x1 + x1 2(8) = = 40 120 160 -120 40 8 40 24 0– | 10 24 | | 20 30 x1 | 40 Z = $50(24) + $50(8) = $1.360 .

Extreme Corner Points x1 = 0 bowls x2 =20 mugs Z = $1.200 B C | | 30 40 x1 .360 x2 =0 mugs Z = $1.000 x2 40 – 30 – 20 – A 10 – 0– | 10 | 20 x1 = 224 bowls x2 =8 mugs x1 = 30 bowls Z = $1.

Objective Function x2 40 – 4x1 + 3x2 120 lb Z = 70x1 + 20x2 Optimal point: x1 = 30 bowls x2 =0 mugs Z = $2.100 30 – 20 –A 10 – B x1 + 2x2 40 hr 0– | 10 | 20 | C 30 | 40 x1 .

2 types of fertilizer Type A: high phosphorus Type B: low phosphorus Tons Required/ ton of Fertilizer Item Urea Potash Rock Phosphate Net profit per ton Type A 2 1 1 15 Type B 1 1 0 10 Maximum amount available per day 1500 1200 500 .Example 1: Product Mix Problem Fertilizer manufacturing company.

The decision variables Daily production of Type A: x tons Type B: y tons Step 2.Product Mix Problem: Modeling Step 1. The objective function (maximize profit) z = 15x + 10y .

.Product Mix Problem: Modeling. The constraints Limited supply of raw materials per day: Urea: Potash: 2x + y ≤ 1500 x + y ≤ 1200 Rock Phosphate: x ≤ 500 . Step 3.

y≥0 .Product Mix Problem: Complete model Maximize z( x. y) = 15 x + 10y subject to 2x + y ≤ 1500 x + y ≤ 1200 x ≤ 500 x ≥ 0.

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