LINEAR PROGRAMMING

POST OPTIMALITY ANALYSIS

GROUP MEMBERS
• Prasad Nadkarni 61
• Ashish Nakade 62
• Ankur Nandu 63
• Kishore Nannaware 64
• Deepti Nayak 65
• Sweedisha N. 66
• Sunny Parekh 67
• Satish Parmar 68
Introduction
• Today many of the resources needed as inputs to
operations are in limited supply.
• Operations managers must understand the
impact of this situation on meeting their
objectives.
• Linear programming (LP) is one way that
operations managers can determine how best to
allocate their scarce resources.
Definition
• A Linear Programming model seeks to maximize
or minimize a linear function, subject to a set of
linear constraints.
Linear Programming (LP) in OM
• There are five common types of decisions in
which LP may play a role
▫ Product mix
▫ Production plan
▫ Ingredient mix
▫ Transportation
▫ Assignment
Recognizing LP Problems
• A well-defined single objective must be stated.

• There must be alternative courses of action.

• The total achievement of the objective must be

constrained by scarce resources or other
restraints.

• The objective and each of the constraints must be

expressed as linear mathematical functions.
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.
• Cavi Electrici Affini Torino (Electrical Cables
and Allied Products of Turin).

• Founded in Italy as CEAT Tyres (1942) by

Virginio Bruni Tedeschi.

• Manufactured cables for telephones and

railways.

• 1958 : CEAT Tyres of India Ltd was established

in collaboration with the TATA Group.

• 1990 : Renamed the company CEAT Ltd.

Current operations
• Over 6 million tyres produced every year
• Operations in Mumbai and Nasik plants
• Exports to USA, Africa, America, Australia and
other parts of Asia
• Network of 34 regional offices, 7 Zones, over
3,500 dealers.
• Dedicated customer service, with customer
service managers in all four divisional offices,
assisted by 50 service engineers.
 Problem
• CEAT Tyres manufactures produces bike and car tyres.
Each bike tyre requires 1.5 kg of rubber and 700 g of
carbon black, while car tyre requires 1 kg of rubber and 3
kg of carbon black. The total availability of rubber is 120
kg and of carbon black is 180 kg per batch. The company
makes a profit of Rs. 250 per bike tyre and Rs. 350 per
car tyre. Formulate the LPP to optimize production mix in
order to maximize profit.
 Solution
• Let Bike tyre be ‘x’
Let Car tyre be ‘y’

Objective : Max Z = 250x + 350y

Subject to : 1.5x + 1y ≤ 120
0.7x + 3y ≤ 180
x, y ≥ 0 (non- negativity)
• 1.5x + 1y ≤ 120

When x = 0 , y = 120
Co-ordinates : (0, 120)

When y = 0 , x = 80
Co-ordinates : (80, 0 )
• 0.7x + 3y ≤ 180

When x = 0 , y = 180 / 3 = 60
Co-ordinates : (0, 60)

When y = 0 , x = 180 / 0.7 = 257. 14

Co-ordinates : (257.14 , 0)
Graphical Solution Method
1. Draw the axis taking the nos. to be
manufactured.
2. Plot model constraint on a set of coordinates
in a plane
3. Identify the feasible solution space on the
graph where all constraints are satisfied
simultaneously.
4. Find the point on boundary of this space that
maximize value of objective function.
Graphical Solution
Optimal solution

• Z (0,0) = 0
• Z (80,0) = Rs. 20,000
• Z ( 0, 60) = Rs. 21,000
• Z (47.36, 48.95) = Rs. 28,927
• Z (47, 49) = Rs. 28,900
• Z (48, 48) = Rs. 28,800
EXCEL SOLVER
An Alternate Method
Sensitivity Analysis
Over what ranges can these prices change without affecting
the optimality of the present solution?
 Will the present solution remain the optimum solution if
the amount of raw materials, production time is
suddenly changed because of shortages, machine
failures, or other events?
 The amount of each type of resources needed to
produce one unit of each type of product can be either
increased or decreased slightly. Will such changes
affect the optimal solution ?
Summary of output from Excel solver
Shadow Prices

• Assuming there are no other changes to the

input parameters, the change to the objective
function value per unit increase to a right
hand side of a constraint is called the
“Shadow Price”
Other Post - Optimality Changes

• Addition of a constraint.
• Deletion of a constraint.
• Addition of a variable.
• Deletion of a variable.
• Special thanks to

Prof. Bhide
Operation Research

Mr. Vijay Panzale

Assistant Manager
Industrial Engineering Department
CEAT Ltd, Nahur
Mumbai
THANK YOU