Session 1 & 2, LP Basics and Examples

Quantitative Techniques
and Decision Making

By
Prof. Alok Kumar Singh
A.K.Singh, IMI, Delhi

Solving System of Linear Equations

Introduction
A function f(x1, x2, , xn) of x1, x2, ,

xn is a linear function if and only if
for some set of constants, c1, c2, ,
cn, f(x1, x2, , xn) = c1x1 + c2x2 +
+ cnxn.
For any linear function f(x1, x2, , xn)
and any number b, the inequalities
f(x1, x2, , xn) b and f(x1, x2, , xn)
b are linear inequalities.
What are linear functions?
y = mx+b is the equation of a straight
line
e.g. y = -4/3 x +6
Multiplying byfunction
Linear 3 andin rearranging:
2 variables 4x + 3y =
18
A linear function consists of the sum of positive, negative
or 0 constants times variables; e.g.
5X1 - 4X2 + 0X3 + 6X4 is a linear function in 4 variables.

Solving Pair of Linear
Equation

GRAPHICAL SOLUTIONS OF A LINEAR
EQUATION
Let us consider the following
system of two simultaneous linear
equations in two variable.
2x y = -1
3x + 2y = 9
Here we assign any value to one of
the two variables and then
determine the value of the other
variable from the given equation.
Y
(-1,6)
(2,5)
(0,1) (0,3)
X X
X=
Y 1
Y=3
2x y 1
Example: 3x 2 y 12
Geometrically, the two lines represented by the two
equations that make up the system intersect at the point (2,
3):
y
6
5 2x y 1
4
3 (2, 3)
2
1 3 x 2 y 12
x
1 1 2 3 4 5 6

Graphical and Algebraic
Method
Romila went to a stationery shop and
purchased 2 pencils and 3 erasers for Rs 9. Her
friend Sonali saw the new variety of pencils
and erasers with Romila, and she also bought
4 pencils and 6 erasers of the same kind for Rs
18. Represent this situation algebraically and
graphically.
The ratio of incomes of two persons is 9 : 7
and the ratio of their expenditures is 4 : 3. If
each of them manages to save Rs 2000 per
month, find their monthly incomes.
Solving Systems of Linear
Equations in 3 Variables

A system of linear equations in 3
variables
2 x 4 y 6 z 22
3x 8 y 5 z 27
x y 2z 2
A solution is an ordered triple (x,y,z)
that makes all 3 equations true.
X = 3, Y= 1, Z = 2

Gauss-Jordan Elimination
Fundamental operations:
1. Replace one equation with linear
combination
of other equations
2. Interchange two equations
3. Re-label two variables
Combine to reduce
1 0 to? trivial system
as
0 1 ?

Solve:
2 x1 3x2 7
4 x1 5 x2 13
Only care about numbers form

tableau or augmented matrix:
2 3 7

4 5 13

Given:
2 3 7

4 5 13
Goal: reduce this to trivial system
1 0 ?

0 1 ?
and read off answer from right
column
2 3 7

4 5 13
Basic operation 1: replace any row

by
linear combination with any other
row
1 32 7
Here, replace row1 with
2

1
/2 * row1 +
4 5 13
0 * row2
1 3
2
7
2

4 5 13
Replace row2 with row2 4 * row1

1 3
2
7
2

0 1 1
Negate row2
1 3
2
7
2

0 1 1
1 3
2
7
2

0 1 1
Replace row1 with row1 3/2 * row2

1 0 2

0 1 1
Read off solution: x1 = 2, x2 = 1

Class Exercise
Solve by Gauss Jordan Elimination
Method:
X+Y+Z =5
2X+3Y+5Z = 8
4X+5Z = 2
X= 3, Y = 4, Z = -2
Home Exercise
Solve using Gauss Jordan elimination
method
x+y-z = -1
2x-2y+3z = 8
2x-y+2z = 9
Solve using Gauss Jordan elimination
method
a-2b+2c-3d = -7
3a+2b-c+5d = 22
2a-3b+4c-d = -3
3a-2b-c+2d = 12
A.K.Singh, IMI, New Delhi
Linear Inequalities
Ravi goes to market with Rs 200 to buy rice,
which is available in packets of 1kg. The
price of one packet of rice is Rs 30. If x
denotes the number of packets of rice,
which he buys, then the total amount spent
by him is Rs 30x. Since, he has to buy rice in
packets only, he may not be able to spend
the entire amount of Rs 200. (Why?)
Two real numbers or two algebraic
expressions related by the symbol <, >,
or form an inequality.
What are Linear Inequalities?
Linear inequalities have the form:
<Linear Function> <has some relation to> <a
constant>
The relation is one of the following:
, ---- they all contain the equal to part
Examples:
4X1 + 5X2 - 6X3 + 2X5 34
2X1 - 5X2 + 1X4 47
X1 0
X5 0
Problem : Linear Inequalities
The marks obtained by a student of Class XI
in first and second terminal examination are
62 and 48, respectively. Find the number of
minimum marks he should get in the annual
examination to have an average of at least
60 marks.
The longest side of a triangle is 3 times the
shortest side and the third side is 2 cm
shorter than the longest side. If the
perimeter of the triangle is at least 61 cm,
find the minimum length of the shortest side.

Linear Programming
Linear programming has nothing to do with
computer programming.
The use of the word programming here
means choosing a course of action.
Linear programming involves choosing a
course of action when the mathematical
model of the problem contains only linear
functions.
The first problem in linear programming
was formulated in 1941 by the Russian
mathematician, L. Kantorovich and the
American economist, F. L. Hitchcock. This
was the well known transportation problem.
Linear Programming
In 1945, an English economist, G.Stigler,
described yet another linear programming
problem that of determining an optimal
diet.
In 1947, the American economist, G. B.
Dantzig suggested an efficient method
known as the simplex method which is an
iterative procedure to solve any linear
programming problem in a finite number
of steps.

Introduction
Mathematical programming is used to find the best or
optimal solution to a problem that requires a decision or
set of decisions about how best to use a set of limited
resources to achieve a state goal of objectives.
Steps involved in mathematical programming
Conversion of stated problem into a mathematical model that
abstracts all the essential elements of the problem.
Exploration of different solutions of the problem.
Finding out the most suitable or optimum solution.
Linear programming requires that all the

mathematical functions in the model be linear
functions.
Linear Programming (LP)
Problem
The maximization or minimization of some
quantity is the objective in all linear
programming problems.
All LP problems have constraints that limit
the degree to which the objective can be
pursued.
A feasible solution satisfies all the
problem's constraints.
An optimal solution is a feasible solution
that results in the largest possible objective
function value when maximizing (or
smallest when minimizing).
A graphical solution method
A.K.Singh, IMI, Delhi can be used to
Linear Programming Assumptions
The decision variable are

continuos.
The parameters are know with
certainty
The objective function and
constraints exhibit constant return
to scale.
There are no interactions between
the decision variables
Assumption of LP Explained
The fact that the objective function for
an LP must be a linear function of the
decision variables has two implications:
1.The contribution of the objective function
from each decision variable is proportional
to the value of the decision variable.
2.The contribution to the objective function
for any variable is independent of the other
decision variables.

Assumption of LP Explained (Contd.)
Analogously, the fact that each LP

constraint must be a linear inequality or
linear equation has two implications:
1.The contribution of each variable to the left-
hand side of each constraint is proportional
to the value of the variable.
2.The contribution of a variable to the left-
hand side of each constraint is independent
of the values of the other variables.

Assumption of LP Explained (Contd.)
The first item in each list is called the
Proportionality Assumption of Linear
Programming.
The second item in each list is called the
Additivity Assumption of Linear
Programming.
The divisibility assumption requires that each
decision variable be permitted to assume
fractional values.
The certainty assumption is that each
parameter (objective function coefficients, right-
hand side, and technological coefficients) are
known with certainty.
The LP Model
Let: X1, X2, X3, , Xn be the decision variables & Z
be the objective function or linear function
Requirement: Maximization/ Minimization of the linear
function Z.
Z = c1X1 + c2X2 + c3X3 + + cnXn
subject to the following constraints where all a ij, bij
and cij are constants.

Example of a Linear
Program
MAX 4X1 + 7X3 - 6X4
s.t. 2X1 + 3X2 - 2X4 = 20
- 2X2 + 9X3 + 7X4 10
-2X1 + 3X2 + 4X3 + 8X4 35
X2 5
Subject to All Xs 0
X1 0, X2 0, X3 0, X4 0

Set of Feasible Solutions for Linear
Programs
The feasible region of an LP is the set of all
points satisfying all the LPs constraints and
sign restrictions.
For a maximization problem, an optimal

solution to an LP is a point in the feasible
region with the largest objective function
value.
Similarly, for a minimization problem, an

optimal solution is a point in the feasible
region with the smallest objective function
value. A.K.Singh, IMI, Delhi
CORNER POINT PROPERTY
It is a very important property of Linear

Programming problems:
This property states optimal solution to LP

problem will always occur at a corner points
of the feasible region.

Problem
A furniture dealer deals in only two items
tables and chairs. He has Rs 50,000 to invest
and has storage space of at most 60 pieces. A
table costs Rs 2500 and a chair Rs 500. He
estimates that from the sale of one table, he
can make a profit of Rs 250 and that from the
sale of one chair a profit of Rs 75. He wants to
know how many tables and chairs he should
buy from the available money so as to
maximise his total profit, assuming that he
can sell all the items which he buys.
Solution
Let X1 Be the number of tables and
X2 be the number of chairs sold.
Objective Function :
Max Profit (Z) = 250*X1 + 75* X2.
Subject to
2500X1+500X2 <= 50000 (Budgetary
Const)
X1+X2 < = 60 ( Space Const)
Xi >= 0

APPLICATIONS OF LINEAR
PROGRAMMING

LP Example #1 (Product Mix)
The Quality Furniture Corporation produces
benches and picnic tables. The firm has two
main resources: its labor force and a supply
of redwood for use in the furniture. During
the next production period, 1200 labor hours
are available under a union agreement. The
firm also has a stock of 5000 pounds of
quality redwood. Each bench that Quality
Furniture produces requires 4 labor hours and
10 pounds of redwood; each picnic table
takes 7 labor hours and 35 pounds of
redwood. Completed benches yield a profit of
$9 each, and tables a profit of $20 each.
What product mix will maximize the total
Solution ( Product Mix)
Let X1 Be the number of benches and
X2 be the number of tables sold.
Max Profit (Z) = 9*X1 + 20* X2.
Subject to
4X1+7X2 <= 1200 (Labour Const)
10X1+35X2 < = 5000 ( Avlb. Of
Wood Const)
Xi >= 0

LP Example (Diet Problem)
A prison is trying to decide what to feed its
prisoners. They would like to offer some
combination of milk, beans, and oranges. Their goal
is to minimize cost, subject to meeting the
minimum nutritional requirements imposed by law.
The cost and nutritional content of each food, along
with the minimum nutritional requirements are
Nutrition/ Milk Beans Oranges Minimum
shown below.
Product In Gallons In Cups Per unit Daily
Requireme
nt
Niacin 3.2 4.9 0.8 13
Thiamin 1.12 1.3 0.19 1.5
Vitamin 32 0 93 45
Cost 2 0.2 0.25

Solution (Diet Problem)
Let X1 Be the gallons of milk, X2 be the cups of
beans and X3 be the number of oranges.
Min Cost (Z) = 2*X1 + 0.2* X2+ 0.25 X3.
Subject to
3.2X1+4.9X2+0.8 X3 >= 13 (Min Niacin)
1.12X1+1.3X2+0.19X3 >= 1.5 (Min
Thaimin)
32X1+93 X3 >= 45 (Min Vitamin)
Xi >= 0

Blending Problem
An oil company makes two blends of fuel by mixing
three oils. Figures on the costs and daily availability
of the oils and the requirements of the blends of fuel
are given in Tables below. Each litre of blend 1 can
be sold for $1.10 and each litre of blend 2 can be
sold for $1.20. Long-term contracts require at least
10,000 litres of each blend to be produced. Assume
no losses, maximize the profit by formulating this as
a linear programming problem:
Oil Cost Amount Available Blend 1 At least 30 % of A
($/ (Ltrs) At most 50 % of B
Ltr.) At least 30 % of C
A 0.3 6,000
Blend 2 At most 40 % of A
B 0.4 10,000 At least 35 % of B
At most 40 % of C
C 0.48 12,000
Transportation Problem
A company has two plants producing a certain product that is
to be shipped to three distribution centers. The unit production
costs are the same at the two plants, and the shipping cost per
unit is shown below. Shipments are made once per week.
During each week, each plant produces at most 60 units and
each distribution center needs at least 40 units. Formulate this
as a Linear Programming problem to minimize the cost of
transportation.
Distribution Center
1 2 3
A $4 $6 $4
Plant
B $6 $5 $2

Capital Budgeting Problem
A bank is in the process of devising a loan policy that maximizes the
return and involves a maximum of Rs. 12 million. The table below
provides the pertinent data about available loans. Bad debts are
unrecoverable and produce no interest revenue. Competition with other
financial institution dictates the allocation of at least 40% of the funds
to farm and commercial loans. To assist the housing industry in the
region, home loans must be at least 50 % of the personal, car and home
loans. The bank limits the overall ratio of the bad debts on all loans to
at most 4 %.
Type of Loan Interest Bad Debt

Rates ratio
Personal 14 0.1
Car 13 0.07
Home 12 0.03
Farm 12.5 0.05
Commercial A.K.Singh, IMI,10
New Delhi
0.02
Advertising Problem
Dorian Auto manufactures luxury cars and trucks. The
company believes that its most likely customers are
high-income women and men. To reach these groups,
Dorian Auto has embarked on an ambitious TV
advertising campaign and will purchase 1-minute
commercial spots on two type of programs: comedy
shows and football games. Each comedy show is seen
by 7 million high income women and 2 million high-
income men and costs $50,000. Each football game is
seen by 2 million high-income women and 12 million
high-income men and costs $100,000. Dorian Auto
would like for commercials to be seen by at least 28
million high-income women and 24 million high-income
men. Use LP to determine how Dorian Auto can meet its
advertising requirements at minimum cost.

Example : LP Formulation
Dorian must decide how many comedy and football
ads should be purchased, so the decision variables
are
x1 = number of 1-minute comedy ads
x2 = number of 1-minute football ads
Dorian wants to minimize total advertising cost.
Dorians objective functions is
min z = 50 x1 + 100x2
Dorian faces the following the constraints
Commercials must reach at least 28 million high-
income women. (7x1 + 2x2 28)
Commercials must reach at least 24 million high-
income men. (2x1 + 12x2 24)
The sign restrictions are necessary, so x1, x2 0.
Employee Scheduling
A post office requires different numbers of full
time employees on different days of the week.
The number of full time employees required each
day from Mon. to Sun are 17, 13, 15, 19, 14, 16
and 11 respectively. Union rule says that each full
time employee must work for 5 consecutive days
and get an off for 2 days. For example any
employee wo starts his week from Monday will
work till Friday and will get off on Sat. & Sun. The
post office wants to meet its daily requirement
with minimum number of full time employees. It
can not use part time workers. Formulate this
situation as a LP problem and determine the
minimum number of workers required.
Set Covering Models
Western Airlines has decided that it wants to
design a hub system in the United States. Each
hub is used for connecting flights to and fro m
cities within 1000 miles of the hub. Western runs
flight among the following cities; Atlanta, Boston,
Chicago, Denver, Houston, Los Angeles, New
Orleans, New York, Pittsburgh, Salt Lake city, San
Francisco and Seattle. The company wants to
determine the lowest number of hubs it will need
to cover all of the cities where a city is covered if
it is within 1000 miles of at least one hub. The
following table list the cities that are within 1000
miles of other cities.
Data for Western Airlines
City Name Cities Within
1000 Miles
Atlanta (AT) AT, CH, HO, NO, 1
NY, PI
Boston (BO) BO,NY,PI 2
Chicago (CH) AT, CH,NY, NO, PI 3
Denver (DE) DE, SL 4
Houston (HO) AT, HO, NO 5
Los Angeles (LA) LA, SL, SF 6
New Orleans (NO) AT, CH, HO, NO 7
New York (NY) AT, BO, CH, NY, PI 8
Pittsburgh (PI) AT, BO, CH, NY, PI 9
Salt Lake City (SL) DE, LA, SL, SF, SE 10
San Francisco (SF) LA, SL, SF, SE 11
Thank
You

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Quantitative Techniques

and Decision Making

A.K.Singh, IMI, Delhi

A.K.Singh, IMI, Delhi

A function f(x1, x2, , xn) of x1, x2, ,

5X1 - 4X2 + 0X3 + 6X4 is a linear function in 4 variables.

A.K.Singh, IMI, Delhi

A.K.Singh, IMI, Delhi

A.K.Singh, IMI, Delhi

A.K.Singh, IMI, Delhi

A.K.Singh, IMI, Delhi

A.K.Singh, IMI, Delhi

Only care about numbers form

A.K.Singh, IMI, Delhi

Basic operation 1: replace any row

Replace row2 with row2 4 * row1

Replace row1 with row1 3/2 * row2

Read off solution: x1 = 2, x2 = 1

A.K.Singh, IMI, Delhi

A.K.Singh, IMI, Delhi

A.K.Singh, IMI, Delhi

Linear programming requires that all the

The decision variable are

A.K.Singh, IMI, Delhi

Analogously, the fact that each LP

A.K.Singh, IMI, Delhi

A.K.Singh, IMI, Delhi

A.K.Singh, IMI, Delhi

For a maximization problem, an optimal

Similarly, for a minimization problem, an

It is a very important property of Linear

This property states optimal solution to LP

A.K.Singh, IMI, Delhi

A.K.Singh, IMI, Delhi

A.K.Singh, IMI, Delhi

A.K.Singh, IMI, Delhi

A.K.Singh, IMI, New Delhi

A.K.Singh, IMI, Delhi

A.K.Singh, IMI, New Delhi

Type of Loan Interest Bad Debt

A.K.Singh, IMI, New Delhi

A.K.Singh, IMI, Delhi

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