Chapter 2

Linear Programming Models:

Graphical and Computer Methods

© 2007 Pearson Education

 Steps in Developing a Linear
Programming (LP) Model
1) Formulation

3) Solution

5) Interpretation and Sensitivity Analysis

 Properties of LP Models
1) Seek to minimize or maximize

2) Include “constraints” or limitations

3) There must be alternatives available

4) All equations are linear

 Example LP Model Formulation:
The Product Mix Problem
Decision: How much to make of > 2 products?

Objective: Maximize profit

Constraints: Limited resources

 Example: Flair Furniture Co.
Two products: Chairs and Tables

Decision: How many of each to make this

month?

Objective: Maximize profit

 Flair Furniture Co. Data
Tables Chairs
(per table) (per chair)
Profit Hours
$7 $5
Contribution Available
Carpentry 3 hrs 4 hrs 2400
Painting 2 hrs 1 hr 1000

Other Limitations:
• Make no more than 450 chairs
• Make at least 100 tables
Decision Variables:
T = Num. of tables to make
C = Num. of chairs to make

Objective Function: Maximize Profit

Maximize $7 T + $5 C
Constraints:

• Have 2400 hours of carpentry time

available
3 T + 4 C < 2400 (hours)
• Have 1000 hours of painting time available
2 T + 1 C < 1000 (hours)
More Constraints:
• Make no more than 450 chairs
C < 450 (num. chairs)
• Make at least 100 tables
T > 100 (num. tables)

Nonnegativity:
Cannot make a negative number of chairs or tables
T>0
C>0
 Model Summary
Max 7T + 5C (profit)
Subject to the constraints:
3T + 4C < 2400 (carpentry hrs)
2T + 1C < 1000 (painting hrs)
C < 450 (max # chairs)
T > 100 (min # tables)
T, C > 0 (nonnegativity)
 Graphical Solution
• Graphing an LP model helps provide
insight into LP models and their solutions.

• While this can only be done in two

dimensions, the same properties apply to
all LP models and solutions.
 C
Carpentry
Constraint Line
3T + 4C = 2400 Infeasible
600
> 2400 hrs
3T
+
Intercepts 4C
=
24
00
(T = 0, C = 600) Feasible
< 2400 hrs
(T = 800, C = 0)
0
0 800 T
 C
1000
Painting
Constraint Line

2T
+
2T + 1C = 1000

1C
600

= 100
0
Intercepts
(T = 0, C = 1000)
(T = 500, C = 0) 0
0 500 800 T
 C
1000
Max Chair Line
C = 450

600
Min Table Line
450
T = 100

Feasible
Region
0
0 100 500 800 T
 C

7T
Objective

+ 5C
Function Line

=$
4,0
500
7T + 5C = Profit

40
Optimal Point
(T = 320, C = 360)

7T
400

+5
C
=$
7T
300

2,8
+5

00
C
=$
200

2,1
100 00

0
0 100 200 300 400 500 T
 C

Additional Constraint New optimal point

500 T = 300, C = 375
Need at least 75
more chairs than
tables 400 T = 320
C > T + 75 C = 360
No longer
300 feasible
Or
C – T > 75
200

100

0 100 200 300 400 500 T

 LP Characteristics
• Feasible Region: The set of points that
satisfies all constraints
• Corner Point Property: An optimal
solution must lie at one or more corner
points
• Optimal Solution: The corner point with
the best objective function value is optimal
 Special Situation in LP
• Redundant Constraints - do not affect
the feasible region

Example: x < 10
x < 12
The second constraint is redundant
because it is less restrictive.
 Special Situation in LP
• Infeasibility – when no feasible solution
exists (there is no feasible region)

Example: x < 10
x > 15
 Special Situation in LP
• Alternate Optimal Solutions – when
there is more than one optimal solution
C
Max 2T + 2C 10

2T
Subject to:

+
All points on

2C
T + C < 10

=
Red segment

20
6
T < 5 are optimal
C< 6
T, C > 0
0
0 5 10 T
 Special Situation in LP
• Unbounded Solutions – when nothing
prevents the solution from becoming
infinitely large
C t i on n
c
Max 2T + 2C ri e lutio
D so
Subject to: 2 of
2T + 3C > 6
T, C > 0 1

0
0 1 2 3 T
 Using Excel’s Solver for LP
Recall the Flair Furniture Example:
Max 7T + 5C (profit)
Subject to the constraints:
3T + 4C < 2400 (carpentry hrs)
2T + 1C < 1000 (painting hrs)
C < 450 (max # chairs)
T > 100 (min # tables)
T, C > 0 (nonnegativity)
Go to file 2-1.xls