PRESENTATION ON

‘LINEAR PROGRAMMING’

April 2, 2010

BY DEEPAK & ASHISH

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LINEAR PROGRAMMING

Linear Programming is one of the most versatile, popular & widely-used quantitative techniques. A Linear Programming model provides an efficient method for determining an optimal decision (or an optimal strategy or an optimal plan) chosen from a large number of possible decisions. The optimal decision is one that meets a specified objective of management, subject to various constraints & restrictions. For e.g., Determination of how much to produce of different grades of petroleum products in an oil refinery to yield maximum profit.
April 2, 2010 BY DEEPAK & ASHISH 2

CONT…
“ Linear Programming is a mathematical technique for determining the optimum allocation of resources & obtaining a particular objective when there are alternative uses of resources: money, material, manpower, machine & other facilities.”

April 2, 2010

BY DEEPAK & ASHISH

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REQUIREMENT OF LP PROBLEM
     

Decision variables & their relationship. Well-defined objective function. Presence of constraints & restrictions. Alternative courses of action. Non-negative restriction. Linearity.

April 2, 2010

BY DEEPAK & ASHISH

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BASIC ASSUMPTIONS OF LP
    

Proportionality. Additivity. Divisibility. Certainty. Finiteness.

April 2, 2010

BY DEEPAK & ASHISH

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APPLICATION AREAS OF LP

   

Industrial Applications.
Product Mix Problem Finding Least Cost Shipping Arrangement from plant to customer Oil Refineries Production Scheduling


   

Management Applications.
Portfolio Selection Profit Planning Traveling Salesmen Problem A Make-or-Buy Problem

April 2, 2010

BY DEEPAK & ASHISH

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CONT…

  

Miscellaneous Applications.
Diet Problem Airline Routine Farm Planning

Administrative Applications.

April 2, 2010

BY DEEPAK & ASHISH

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ADVANTAGES OF LP APPROACH
 

 

Insight & perspective into problem solutions. Consideration of all possible solutions to the problem. Better & more successful decisions. It also contributes the development of executives through the technique of model building & corresponding interpretations.

April 2, 2010

BY DEEPAK & ASHISH

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DRAWBACKS OF LP APPROACH

In LP Problem, fractional values are permitted for the decision variables. However, many decision problems require that the solution for decision variables should be obtained in non fractional values. Does not take into consideration the effect of time & uncertainty. A primary requirement of LP is that the objective function & constraints function must be clear.
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April 2, 2010

Example:

One kind of cake requires 200gm of flour & 25 gm of fat, and another kind of cake requires 100gm of flour & 50 gm of fat. Find the maximum number of cakes which can be made from 5 kg of flour & 1 kg of fat assuming that there is no shortage of the other ingredients, used in making the cakes. Let x cakes of 1st kind & y cake of 2nd kind are being made. Now we have,

Solution:

April 2, 2010

BY DEEPAK & ASHISH

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Kind of cake No. of cakes Flour

Fat

1st 2nd Total

x y x+y

200 gm 100 gm 5000 gm

25 gm 50 gm 1000 gm

April 2, 2010

BY DEEPAK & ASHISH

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Now, Objective Function is Z= x+y Max. quantity of flour used = 5000 gm 200 x + 100 y < 5000 2 x + 1 y < 50 ------(i) Max. quantity of fat used = 1000 gm 25 x + 50 y < 1000 x + 2 y < 50 ------(ii) Also, x > 0 , y > 0

April 2, 2010

BY DEEPAK & ASHISH

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Y-axis

(0,50)

. . .

Feasible Region

(0,20)

.

.. . . . . . . . (20,10) .. .. . . .. . . .
(25,0)

.(40,0)
X-axis

(0,0)

April 2, 2010

BY DEEPAK & ASHISH

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April 2, 2010

BY DEEPAK & ASHISH

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