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Linear Programming: Cost Minimization
Linear Programming: Cost Minimization
Programming
COST MINIMIZATION
What is LINEAR PROGRAMMING?
• A MATHEMATICAL METHOD THAT IS USED TO
DETERMINE THE BEST POSSIBLE OUTCOME
OR SOLUTION FROM A GIVEN SET OF
PARAMETERS.
• IT WAS A METHOD USED TO PLAN
EXPENDITURES AND RETURNS IN A WAY THAT
REDUCED COSTS FOR THE MILITARY AND
POSSIBLY CAUSED THE OPPOSITE FOR THE
ENEMY.
• BECAUSE OF ITS NATURE, LINEAR
BASIC COMPONENTS
Decision variables
Objective function
Constraints
Data
Formulation of the
Cost Minimization
Linear Programming
• Two brands of fertilisers available: SuperGro & CropQuick
C (8,0) 48
Case Study 8-3
COMPARISON OF DISTRIBUTION SYSTEM IN
EFFECT WITH OPTIMAL DISTRIBUTION
SYSTEM
Characteristics Old system Optimal System
Number of warehouse 13 34
Assume that the manager of a college dining hall is
required to prepare meals that satisfy the minimum
daily requirement of protein (P) minerals (M) and
vitamins (V) suppose that the minimum daily
requirement have been established at 14P 10m 6V.
The manager can use two basic foods (say meat and
fish) in the preparation of meals. Meat (food x)
contain 1P, 1M, 1V per pound. Fish (food y) contains
2P, 1M, 0.5V per pound. The price x is $2 per pound
while the price y is $3 per pound. The manager wants
to provide meals that fulfil the minimum daily
requirement of protein, mineral, vitamins at the
lowest possible cost per student.