Chapter(2):Linear Programming

[LP] Graphical Method

 Benefits of this Topic

 General Description

 Problem Analysis Through Application Examples

 Summary of Method Used

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 1- Benefits of This Topic
After finishing this topic, the student should be able to:

Understand how this technique can be used to assist in

the decision-making process in his organization.
Use this approach for solving problems involving
situations of maximization or minimization in a linear
function format subject to linear constraints.
Know how to apply it in formulating problems in the
areas of marketing, finance, transportation and
production management.
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 2- General Description of LP
2.1 Definition:
“ Linear Programming is a quantitative problem
solving approach that has been developed to help
managers make rational managerial decisions”
 The word Programming means : “ choosing a
course of action”

2.2 Objective:
In all applications of LP problems, the maximization or
minimization of some quantity is the objective.
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2.3 Properties of LP
 A linear Program is a mathematical model that is
characterized by the following main properties:
 A linear objective function that is to be maximized or
minimized.
 A set of linear constraints.
 Variables that are all restricted to non_negative values

2.4 Areas of Application in Real Life:

Maximization:
 Maximizing the return on investment to financial analyst
who select from among an investment portfolio.
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 Maximizing the advertising effectiveness for a marketing
manager who wants to determine how best to allocate a
fixed advertising budget from among a set of
alternatives.
Minimization:
 Minimizing the total production and inventory costs to a
manufacture who develops a production schedule.
 Minimizing the costs of transportation of shipping products to
some customers.

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 3- Problem Analysis Through
Application Examples
The problem analysis as previously discussed in chapter 1
involves 5 steps as follows:

 Problem Identification
 Model Development
 Data Preparation
 Model Solution
 Report Generation

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 1] Maximization Problem

3.1 Problem Identification:

 A toy company produces two types of toy models [model 1] and
[model 2]. The company has 900 hours of production time
available in its producing department, 300 hours in its finishing
department and 100 hours in its packing and shipping department.
The production time of model 1 is 1 hour while that for model 2 is
3/2 hours. The finishing time required for model 1 is 1/2 hours and
for model 2 is 1/3 hours. Finally, the packing and finishing
department requires 1/8 hours for model 1 and 1/4 hours for model
2. The company estimated the profit of contribution of models 1
and 2 to be $5 and $8 per toy respectively. Formulate problem as
linear program and solve it for an optimal solution.
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3.2 Model Preparation:
 Modeling is the process of translating a verbal statement of a
problem into a mathematical statement.

 In linear programming the mathematical statement is a linear

program.

Guidelines for Model Formulation:

1- Understand the problem thoroughly: identify parameters
and items to be included in the model

2- Write a verbal statement of the objective function and

each constraint: e.g maximize profit (Max P) or minimize
monthly operating costs (Min C).
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 3- Define the decision variables: i.e. ask yourself what
decisions the manager must make. The decision variables
should be chosen to represent these decisions e.g. x1 and x2..

4- Write the objective function in terms of the decision

variables: i.e. translate your objective function of step 2
into a linear mathematical model e.g. Max P = 5x1 + 8 x2

5- Write the constraints in terms of the decision variables:

i.e.translate the verbal statement of the constraints developed in
step 3 into a linear constraint equation with the LHS must be a
linear function of the decision variables x1 and x2.
 After carrying the above steps, a linear programming
model is prepared. An optimal solution is then to be obtained.
Proper interpretation of the solution can provide valuable
decision-making information for the manager. 9
As an application to our toy problem:
1- Understand the problem: the problem requires getting the no. of
toys to be produced in each model.
2- The objective function statement will be to: Maximize Profit
3-a) Defining decision variables: here we need to assign decision
variables to express the type of each model to be produced so as
to generate the profit required.
Let x = no. of toys of model 1
y = no. of toys of model 2
b) Writing the constraint statement in a linear function format:
Constraint 1: Production time <= 900 hours
Constraint 2: Finishing time <= 300 hours
Constraint 3: Packing and Shipping time <= 100 hours
Constraint 4: x and y are non negative 10
4- Writing the objective function in terms of the decision
variables:

Objective Function: Max P = 5x + 8y

5- Writing the constraint statement in a linear function format:

Constraint 1: 1x +3/2 y <= 900 hours
Constraint 2: 1/2 x + 1/3y <= 300 hours
Constraint 3: 1/8 x + 1/4 y <= 100 hours
Constraint 4: x and y should be >=0 ( i.e. non negative)

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3.3 Data Preparation (Maximization Problem):
Going back to the toy problem the data required for the model
has to be prepared by the different departments before the
manager can solve the model. These data are:

1) the uncontrollable factors like the total capacities of the 3

departments and the time required to produce a toy of each
model. These are subject to managers of each department
who from experience and recognition of their resources have
to provide top managers with these data to put in the model.

2) The profit required per model ($5 and $8) has to be

identified by the financial department who does the projection
for future profits to the company.

3) the value of controllable factors like the value of production

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quantity x and y required from each model.
3.4 Model Solving Using Graphical Method:
Now we are ready to solve the problem. The method
we are going to use is the Graphical Method.
Graphical Method for Solving Linear Programming
with only 2 decision variables (e.g. x and y)
The complete mathematical formulation of the toy
problem is a follows:
Max P = 5x+ 8y
subject To (s.t.)
1x +3/2 y <= 900 hours
1/2 x + 1/3y <= 300 hours
1/8 x + 1/4 y <= 100 hours
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x , y >=0 ( i.e. non negative)
3.5 Report Generation (Maximization Problem):
 The important part after solving the model is to record the
solution in a report readable by managers .
 With respect to this example the report would include :
 the problem parameters, decision variables, objective
function, constraints and the solution with the
recommended quantity of x and y of both models.
 Also the calculated optimal profit from selling these
quantities without violating the constraints defined.
 Finally managers before implementing the solution in
real life they have to check its validity by examining the
results by changing the values of the uncontrollable
inputs.
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 2] Minimization Problem

3.1 Problem Identification:

 A company produces two types of products [product 1] and
[product 2]. The company management estimated that combined
production of both products must total to at least 4 units per hour.
They also estimated that the processing units of product 1 takes
about 1 hour while that of product 2 takes about 3 hours. The
minimum number of hours to be worked in a shift is 6 hours. The
company estimated the cost of production of both products to be e
$3 and $4 per unit respectively. Formulate problem as linear
program and solve it for an optimal solution.

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As an application to our toy problem:
1- Understand the problem: the problem requires getting the no. of
units to be produced of each product.
2- The objective function statement will be to: Minimize Cost
3-a) Defining decision variables: here we need to assign decision
variables to express the type of each model to be produced so as
to generate the profit required.
Let x = no. of units of product 1
y = no. of units of product 2
b) Writing the constraint statement in a linear function format:
Constraint 1: Combined units of both products >= 4 units/hour
Constraint 2: Processing time capacity per shift >=6 hours
Constraint 3: x and y are non negative
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4- Writing the objective function in terms of the decision
variables:

Objective Function: Min C = 3x + 4y

5- Writing the constraint statement in a linear function format:

Constraint 1: 1x + 1y >= 4 units/ hour
Constraint 2: 1x + 3y >= 6 hours
Constraint 3: x and y should be >=0 ( i.e. non negative)

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3.3 Data Preparation (Minimization Problem):
Going back to the toy problem the data required for the model
has to be prepared by the different departments before the
manager can solve the model. These data are:

1) the uncontrollable factors like the total capacities of the 3

departments and the time required to produce a toy of each
model. These are subject to managers of each department
who from experience and recognition of their resources have
to provide top managers with these data to put in the model.

2) The cost estimated per unit ($3 and $4) has to be identified
by the financial department who does the estimation for the
cost associated with the production of the units.

3) the value of controllable factors like the value of production

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quantity x and y required from each model.
3.4 Model Solving Using Graphical Method:
Now we are ready to solve the problem. The method
we are going to use is the Graphical Method.
Graphical Method for Solving Linear Programming
with only 2 decision variables (e.g. x and y)
The complete mathematical formulation of the toy
problem is a follows:
Min C = 3x + 4y
subject To (s.t.)
1x + 1y >= 4 units/hour
1x +3 y >= 6 hours
x , y >=0 ( i.e. non negative)
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3.5 Report Generation (Minimization Problem):
 The important part after solving the model is to record the
solution in a report readable by managers .
 With respect to this example the report would include :
 the problem parameters, decision variables, objective
function, constraints and the solution with the
recommended quantity of x and y of both models.
 the calculated minimum cost of production of these
quantities without violating the constraints defined.
 Finally managers before implementing the solution in
real life they have to check its validity by examining the
results by changing the values of the uncontrollable
inputs.
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 4- Summary of Graphical Method Used
Summary of the Graphical Solution Procedure
1- Prepare a graph of the feasible solution points for each of the
constraints.

2- Determine the feasible region by identifying the solution points

that satisfy all the constraints simultaneously.

3- Draw an objective function line showing the values of the x and

y variables that yield a specified value of the objective function.

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Maximization Problems
4- Move parallel objective function lines toward Larger objective
function values until further movement would take the line
completely outside the feasible region.
5- A feasible solution point on the objective function line with the
Larger Value is the optimal solution which normally fall on an
extreme point of the feasible region.
Minimization Problems
4- Move parallel objective function lines toward Smaller objective
function values until further movement would take the line
completely outside the feasible region.
5- A feasible solution point on the objective function line with the
Smallest Value is the optimal solution which normally fall on an22
extreme point of the feasible region.