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 The Flair Furniture Company produces inexpensive tables and chairs.

The
production process for each is similar in that both require a certain
number of labor hours in the carpentry department, and a certain
number of labor hours in the painting department. Each table takes 4
hours of carpentry work and 2 hours of painting work. Each chair
requires 3 hours in carpentry time and 1 hour in painting. During
the current production period, 240 hours of carpentry time and 100
hours of painting time are available. The marketing personnel are
confident that they can sell all the tables that are made. However, due to
an existing inventory of chairs, they want Flair to make no more than 60
new chairs. Each table sold results in a profit contribution of $7, and
each chair sold yields a profit contribution of $5. Flair Furniture is to
determine the best possible combination of tables and chairs to
manufacture in order to attain the maximum profit. The firm would like
this product mix situation formulated as an LP problem.
a)Formulate using Linear Programming
b) Solve graphically
 To express the LP constraints for this problem
mathematically, we let
X1 = number of tables produced
X2 = number of chairs produced

 Objective function: Maximize profit =$7X1 + $5X2


Subject to: 4X1 + 3X2 ≤ 240 (constraint A)
2X1 + 1X2 ≤ 100 (constraint B)
 Constraints added to ensure nonnegative solutions:
X1 ≥ 0, X2 ≥ 0
 The first step is convert the constraint inequalities into
equalities (or equations):

 4X1 + 3X2 = 240 (A) 2X1 + 1X2 = 10 (B)


The equation on the left (A) is plotted in Figure 9.1(A)
and the one on the right in Figure 9.1(B). To plot
 The line in Figure 9.1(A), all we needed to do was find the
points at which the line intersected the X1 and X2 axes.
When X1 = 0 (The location where the line touches the X2
axis), it implies that 3 X2 = 24 or that X2 = 8. Likewise,
when X2 = 0, we see that 4 X1 = 24 and that X1 = 6. Thus,
the A constraint is bounded by the line running from (X1 =
0, X2 = 8) to (X1 = 6, X2 = 0 The shaded area represents all
points that satisfy the original inequality.

 Constraint B is illustrated in Figure 9.1(B) in a similar


fashion. When X1 = 0, then X2 = 10, and when X2 = 0, then
X1 = 5. The B constraint then is bounded by the line
between (X1 = 0, X2 = 10) to (X1 = 5 ,X2 = 0) and the
shaded area represents the original inequality.
Figure 9.2 shows both constraints together- the
shaded region is the part that satisfies both
restrictions.
 The shaded region in Figure 9.2 is called the area
of feasible solutions or simply the feasible region.
This region must satisfy all conditions specified
by the program’s constraints, and is thus the
region where all constraints overlap. Any point in
the region would be a feasible solution to the
Flair Furniture Company problem—any point
outside the shaded area would represent an
infeasible solution. Hence, it would be feasible to
manufacture 3 tables and 2 chairs (X1 =3, X2=2),
but it would violate the constraints to produce 7
tables and 4 chairs.
THE CORNER-POINT SOLUTION
METHOD

 There are several approaches that can be


taken in solving for the optimal solution once
the feasible region has been established
graphically. The simplest one conceptually is
called the corner-point method .The
mathematical theory behind linear
programming states that the optimal solution
to any problem (that is, the values of the X1
variables which yield the maximum profit or
minimum cost) will lie at a corner point, or
extreme point, of the feasible region .Hence, it
is only necessary to find the values of the
variables at each corner—the maximum profit
or optimal solution will lie at one of them. This
concept is illustrated in Example 9.6
 point a: (X1 = 0, X2 = 0) profit = ($7)(0) + ($5)(0) = $0
 point b: (X1 = 0, X2 = 8) profit = ($7)(0) + ($5)(8) = $40
 point d: (X1 = 5 ,X2 = 0) profit = ($7)(5) + ($5)(0) = $35
 We skipped corner point c momentarily because to accurately
establish its coordinates, it is necessary to solve for the
intersection of the two constraint lines. To do so, we apply the
method of simultaneous equations to

4X1 + 3X2 = 24 and 2X1 + 1X2 = 10


 Multiply the second equation by -2 and add it to the first
equation:
4X1 + 3X2 = 24
-4X1 - 2X2 =-20 [ which is –(2)(2X1+ 3X2 = 10)]
1X2 = 4

 When X2= 4, then 4X1 + (3)(4)= 24, implying that


4X1= 12 or X1= 3. Now we can evaluate point c
point C: (X1 = 3, X2 = 4) profit = ($7)(3) + ($5)(4) =$41
 Because point c produces the highest profit of
any corner point, the product mix X1 = 3 tables
and X2 = 4 chairs is the optimal solution to
Flair Furniture’s problem. This solution will result
in a profit of $41.
 Note: Although the optimal solution to the
example fell at a corner point which was located
at the intersection of two constraint equations,
this is by no means always the case. The optimal
solution could just as easily have been at a
corner bordering on the X1 or X2 axis (such as
points b or d in the example). It all depends upon
the values of the objective function coefficients
and the angle of the profit line.
THE ISO-PROFIT-LINE SOLUTION
METHOD
 A second approach to graphically solving
linear programming problems employs the
iso-profit line. This technique is often
more speedy than the corner-point
method, for we do not have to evaluate
the profit at every corner. Instead, we
draw a series of parallel profit lines. Any
point along a particular iso-profit line will
have the same profit or value of the
objective function. The highest profit line
(or one farthest from the zero origin)
which touches the feasible region
pinpoints the optimal solution.
EXAMPLE

 The objective function for an LP problem is


given as:
maximize profit = 2X1 + 8X2

 The corresponding feasible region has


been graphed in Figure 9.4. We wish to
determine which corner point is optimal
using the iso-profit-line solution method.
 We may begin by selecting any profit
level, for example, P=$200, and drawing
its (dashed) iso-profit line. Is there a
higher possible profit line which touches a
corner of the feasible region? The answer
appears to be yes, and by drawing a
series of parallel profit lines farther and
farther away from the origin, we
eventually reach the tip of the feasible
region (at corner point b). The profit there
will be P = $2(X1 = 0) + 8(X2 = 50) =
2(0) + 8(50) = $400. Thus, the maximum
profit line is 400 = 2X1 + 8X2
MINIMIZATION PROBLEMS IN
LINEAR PROGRAMMING

o Many linear programming problems


involve minimizing an objective such as
cost, instead of maximizing a profit
function. Basically the same graphical
approaches may be applied to solving
these types of problems.
EXAMPLE

 The dean of the Western College of Business must plan his


school’s course offering for the fall semester.
 Student demands deem it necessary to offer at least 30
undergraduate and 20 graduate courses in the term.
 Faculty contracts also dictate that at least 60 courses be
offered in total.
 Each undergraduate course taught costs the college an
average of $2,500 in faculty wages, while each graduate
course costs $3,000.
 We may formulate this as a minimization LP problem as
follows.
 Let: X1= number of undergraduate business courses offered
in fall
X2 = number of graduate business courses
 Minimization problems can be solved graphically
by first establishing the feasible region, and then
by using either the corner-point method or an
iso-cost-line approach (analogous to the iso-
profit approach in maximization problems) to find
the values of X1 and X2 which yield the minimum
cost. The corner-point method is employed below
to solve the example.
EXAMPLE

o To solve the example graphically, we


construct the problem’s feasible region
(Figure 9.5). Minimization problems are
often unbounded outward (that is, on the
right side and on the top), but this causes
no problem in solving them. As long as
they are bounded inward (on the left side
and the bottom), corner points may be
established. The optimal solution will lie at
one of the corners.
 In this case, there are only two corner points, a and b. It is
easy to determine that at point a, X1= 40 and X2= 20 and
that at point b, X1= 30 and X2= 30. The optimal solution is
found at the point yielding the lowest total cost.
total cost at a = $2,500 X1 + $3,000 X2
= (2,500)(40) + (3,000)(20) = $160,000

total cost at b = $2,500 X1 + $3,000 X2


= (2,500)(30) + (3,000)(30) = $165,000

The lowest cost to the college is at point a; hence, the dean


should schedule 40 undergraduate courses and 20 graduate
courses.
 As mentioned, the iso-cost-line approach
may also be used to solve LP minimization
problems. As with iso-profit lines, we need
not compute the cost at each corner point,
but instead draw several parallel cost
lines, The lowest cost line to touch the
feasible region provides us with the
optimal solution corner.