Optimization and

Linear Programming
An Introduction
Expressing
Optimization Problems Mathematically
DECISIONS. The decision in an optimization problem often
are represented in a mathematical model by the symbol x 1,
x2, …, xn.
CONSTRAINTS. The constraints in an optimization problem
can be represented in a mathematical model in several
ways:
f (x1, x2, …, xn) ≤ b
f (x1, x2, …, xn) ≥ b
f (x1, x2, …, xn) = b
Expressing
Optimization Problems Mathematically

OBJECTIVE. The objective in an optimization problem often

are represented in a mathematical by an objective function
in the general format:
MAX (or MIN) = f (x1, x2, …, xn)
The objective function identifies some function of the
decision variables that the decision maker wants to either
MAXimize or MINimize.
Linear Programming (LP) Model

MAX (or MIN): f0 (x1, x2, …, xn)

Subject to: f1(x1, x2, …, xn) ≤ b1
fk (x1, x2, …, xn) ≥ b2
fm (x1, x2, …, xn) = b3
This representation identifies the objective function that will
maximized 9or minimized) and the constraints that must be
satisfied.
An Example LP Problem

Blue Ridge Hot Tubs manufactures and sells two models of

hot tubs: the Aqua-Spa and the Hydro-Lux. Howie Jones,
the owner and manager of the company, needs to decide
how many of each type of hot tub to produce during his next
production cycle. Howie buys prefabricated fiberglass hot
tub shells from a local supplier and adds the pump and
tubing to the shells to create his hot tubs. (This supplier has
the capacity to deliver as many hot tub shells as Howie
needs.)
An Example LP Problem

Howie installs the same type of pump into both hot tubs. He
will have only 200 pumps available during his next
production cycle. From a manufacturing standpoint, the main
difference between the two models of hot tubs is the amount
of tubing and labor required. Each Aqua-Spa requires 9
hours of labor and 12 feet of tubing. Each Hydro-Lux
requires 6 hours of labor and 16 feet of tubing.
An Example LP Problem

Howie expects to have 1,566 production labor hours and

2,880 feet of tubing available during the next production
cycle. Howie earns a profit of $350 on each Aqua-Spa he
sells and $300 on each Hydro-Lux he sells. He is confident
that he can sell all the hot tubs he produces. The question is,
how many Aqua-Spas and Hydro-Luxes should Howie
produce if he wants to maximize his profits during the next
production cycle?
Steps in Formulating an LP Model

Understand the problem

The problem in our example is fairly easy to understand;
How many Aqua-Spas and Hydro-Luxes should Howie
produce to maximize his profit, while using no more than 200
pumps, 1560 labor hours, and 2880 feet of tubing.
Steps in Formulating an LP Model

Identify the decision variables

In our example, the fundamental decision Howie faces is
this: how many Aqua-Spas and Hydro-Luxes should be
produced? In this problem, we will let x1 represent the
number of Aqua-Spas to produce and x2 represent the
number of Hydro-Luxes to produce.
Steps in Formulating an LP Model

State the objective function as a linear

combination of the decision variables
In our example, Howie earns a profit $350 on each Aqua-
Spa (x1) he sells and $300 on each hydro-Lux (x2) he sells.
Thus, Howie’s objective of maximizing the profit he earns is
stated mathematically as:
MAX: 350 x1 + 300 x2
Steps in Formulating an LP Model

State the constraints as a linear

combination of the decision variables
In our example, Howie faces three major constraints.
Because 200 pumps are available and each hot tub requires
one pump, Howie cannot produce more than a total of 200
tub. This restriction is stated mathematically as:
1 x1 + 1 x2 ≤ 200
Steps in Formulating an LP Model

Another restriction Howie faces is that he has only 1,566

labor hours available during the next production cycle.
Because each Aqua-Spa he builds (each unit of x1) requires
9 labor hours and each Hydro-Lux (each unit of x2) requires
6 labor hours, the constraint on the number of labor hours is
stated as:
9 x1 + 6 x2 ≤ 1,566
Steps in Formulating an LP Model

The final constraint specifies that only 2,880 feet of tubing is

available for the next production cycle. Each Aqua-Spa
produced (each unit of x1) requires 12 feet of tubing, and
each hydro-Lux produced (each unit of x2) requires 16 feet of
tubing. The following constraint is necessary to ensure that
Howie’s production plan does not use more tubing than is
available:
12 x1 + 16 x2 ≤ 2,880
Steps in Formulating an LP Model

Identify any upper or lower bounds on the

decision variables
In our example, there are simple lower bounds of zero on
the variables x1 and x2 because it is impossible to produce a
negative number of hot tubs. Therefore, the following two
constraints also apply to this problem:
x1 ≥ 0 ; x2 ≥ 0
Solving LP Problems: A Graphical Approach

MAX: 350 x1 + 300 x2

Subject to: 1 x1 + 1 x2 ≤ 200
9 x1 + 6 x2 ≤ 1,566
12 x1 + 16 x2 ≤ 2,880
x1 ≥0
1 x2 ≥ 0
 Plotting the First Constraint

x1 + x2 = 200
The line connecting the
point (0, 200) and (200, 0)
identifies the points (x1, x2)
that satisfies the equality
x1 + x2 = 200.
Plotting the Second and Third Constraint
 Solving for the Intersections
Solve simultaneously, equations
for pump and labor constraints:
-9 (1 x1 + 1 x2 = 200)
9 x1 + 6 x2 = 1,566
- 3 x2 = -234
x2 = 78
Thus, x1 = 122, and the point of
intersection is at (122, 78).
 Solving for the Intersections
Solve simultaneously, equations
for pump and tubing constraints:
-12 (1 x1 + 1 x2 = 200)
12 x1 + 16 x2 = 2,880
4 x2 = 480
x2 = 120
Thus, x1 = 80, and the point of
intersection is at (80, 120).
Finding the Optimal Solution
Enumerate the corner points of the feasible region to identify
the optimal solution.
At point (0, 0), no profit would be realized. At (0, 180), the profit
is $54,000. At (174, 0), the profit is increased to $60,900.
At the first computed intersecting point (122, 78), the profit
reached $ 66,100; while at the second intersecting point (80,
120), the profit is $ 64,000.
Finding the Optimal Solution
Based on the optimality solution, the analysis indicates that the
point (x1, x2) = (122, 78) is optimal.

Blue Ridge Hot Tubs can realize a profit of

$66,100 if it produces 122 Aqua-Spas and 78
Hydro-Luxes.
Special Condition in LP Models –
Alternate Optimal Solutions
Suppose Howie can increase the price of Aqua-Spas to the
point at which each unit sold generates a profit of $ 450 rather
than $ 350.
At point (0, 0), no profit would be realized. At (0, 180), the profit
is $54,000. At (174, 0), the profit is increased to $ 78,300.
At the first computed intersecting point (122, 78), the profit
reached $ 78,300; while at the second intersecting point (80,
120), the profit is $ 72,000.
Special Condition in LP Models –
Redundant Constraints
Suppose that 225 hot tub
pumps are available instead
of 200. The constraint is now
modified as:

1 x1 + 1 x2 ≤ 225
 Special Condition in LP Models –
Infeasibility
Consider:
MAX: x1 + x2
Subject to: x1 + x2 ≤ 150
x1 + x2 ≥ 200
x1 ≥0
x2 ≥ 0
No possible values for x1 and x2
exist that satisfy both constraints
in the model simultaneously.
Special Condition in LP Models –
Unbounded Solutions
Consider:
MAX: x1 + x2
Subject to: x1 + x2 ≥ 400
–x1 + 2 x2 ≤ 400
x1 ≥0
x2 ≥ 0
Self Review 1. Make vs Buy Decision

The Electro-Poly Corporation is the world’s leading

manufacturer of slip rings. A slip ring is an electrical coupling
device that allows current to pass through a spinning or
rotating connection—such as a gun turret on a ship, aircraft,
or tank. The company recently received a $750,000 order for
various quantities of three types of slip rings. Each slip ring
requires a certain amount of time to wire and harness.
Self Review 1. Make vs Buy Decision

The following table summarizes the requirements for the

three models of slip rings.

Model Model Model

1 2 3
Number ordered 3,000 2,000 900
Hours of wiring required per unit 2 1.5 3
Hours of harnessing required per unit 1 2 1
Self Review 1. Make vs Buy Decision

Unfortunately, Electro-Poly does not have enough wiring and

harnessing capacity to fill the order by its due date. The
company has only 10,000 hours of wiring capacity and 5,000
hours of harnessing capacity available to devote to this
order. However, the company can subcontract any portion of
this order to one of its competitors. The unit costs of
producing each model in-house and buying the finished
products from a competitor are summarized below.
Self Review 1. Make vs Buy Decision

Model 1 Model 2 Model 3

Cost to make $ 50 $ 83 $ 130
Cost to buy $ 61 $ 97 $ 145

Electro-Poly wants to determine the number of slip rings to

make and the number to buy to fill the customer order at the
least possible cost.
Self Review 2. A Transportation Problem
Tropicsun is a leading grower and distributor of fresh citrus
products with three large citrus groves scattered around
central Florida in the cities of Mt. Dora, Eustis, and Clermont.
Tropicsun currently has 275,000 bushels of citrus at the
grove in Mt. Dora, 400,000 bushels at the grove in Eustis,
and 300,000 bushels at the grove in Clermont. Tropicsun
has citrus processing plants in Ocala, Orlando, and
Leesburg with processing capacities to handle 200,000,
600,000, and 225,000 bushels, respectively.
Self Review 2. A Transportation Problem

Tropicsun contracts with a local trucking company to

transport its fruit from the groves to the processing plants.
The trucking company charges a flat rate for every mile that
each bushel of fruit must be transported. Each mile a bushel
of fruit travels is known as a bushel-mile. The following table
summarizes the distances (in miles) between the groves and
processing plants:
 Self Review 2. A Transportation Problem

Distances (in miles)

Grove Ocala Orlando Leesburg
Mt. Dora 21 50 40
Eustis 35 30 22
Clermont 55 20 25
Tropicsun wants to determine how many bushels to ship from
each grove to each processing plant to minimize the total
number of bushel-miles the fruit must be shipped.