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Chapter Two
Linear Programing
 Introduction to Linear Programming 2

 A Linear Programming model seeks to maximize or minimize a linear function,

subject to a set of linear constraints.
 The linear model consists of the following
components:

• A set of decision variables.

• An objective function.

• A set of constraints.
 Cot’d 3
 The term linear implies that all the mathematical relations used in the
problem are linear or straight-line relations, while
 the term programming refers to the method of determining a particular
program or plan of action.
 the term linear programming refers to a family of mathematical
techniques for determining the optimum allocation of resources and
obtaining a particular objective when there are alternative uses of the
limited or constrained resources.
 Linear programming models are mathematical representations of LP
problems.
 Introduction to Linear Programming 4
 The Importance of Linear Programming
 Many real world problems lend themselves to linear
programming modeling.
 Many real world problems can be approximated by linear models.
 There are well-known successful applications in:
Manufacturing
Marketing
Finance (investment)
Advertising
Agriculture
 5
 These characteristics can be grouped as components and assumptions. The components relate to the
structure of a model, where as the assumptions reveal the conditions under which the model is valid.
COMPONENTS OF LP MODELS
 There are four major components of LP models including: Objective function, decision variables,
constraints and parameters.
 Objective and Objective Function
 The objective in problem solving is the criterion by which all decisions are evaluated. It provides the focus for
problem solving.
 Decision variables
 They represent unknown quantities to be solved for.
 Constraints
 However, the ability of a decision maker to select values of the decision variables in an LP problem is subject to
certain restrictions or limits coming from a variety of sources.
 Only solutions that satisfy all constraints in a model are acceptable and are referred
to as feasible solutions. 6
 Generally speaking, a constraint has four elements:
 A right hand side (RHS) quantity that specifies the limit for that constraint.
It must be a constant, not a variable.
 An algebraic sign that indicates whether the limit is an upper bound that
cannot be exceeded, a lower bound that is the lowest acceptable amount, or
an equality that must be met exactly.
 The decision variables to which the constraint applies.
 The impact that one unit of each decision variable will have on the right-
hand side quantity of the constraint.
 Constraints can be arranged into three groups: 7

 System constraints – involve more than one decision variable,

 Individual constraints – involve only one variable, and

 Non-negativity constraints – specify that no variable will be allowed to take

on a negative value.

 Parameters
 The objective function and the constraints consist of symbols that represent the decision variables
(e.g., X1, X2, etc.) and numerical values called parameters.

 The parameters are fixed values that specify the impact that one unit of each decision variable will
have on the objective and on any constraint
 Steps in Formulating LP Models
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 Formulating linear programming models involves the
following steps:
1. Define the decision variables.
2. Determine the objective function.
3. Identify the constraints.
4. Determine appropriate values for parameters and
determine whether an upper limit (<=), lower limit (>=), or
equality (=) is called for.
5. Use this information to build a model.
6. Validate the model.
Example: The Micro Computer Problem
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 A firms that Assembles computer and computer equipment is about to

start production of two new microcomputers. Each type of
microcomputer will require assembly time, inspection time and
storage space. The amounts of each of these resources that can be
devoted to the production of the microcomputer is limited. The
manager of the firm would like to determine the quantity of each
microcomputer to produce in order to make maximize the profit
generated by sales of these microcomputers.
Additional information 10
1. A Discussion with experts, in order to develop the model a
manager obtained the following information:
Type 1 Type 2
Profit per unit $60 $50
Assembly time per unit 4 hours 10 hours

Inspection time per unit 2 hours 1 hours

Storage space per unit 3 cubic feet 3 cubic feet

2. Manager also obtained the following information on availability of resource:

Resource Amount available
Assembly time 100 hours
Inspection time 22 hours
Storage space 39 cubic feet

3. Note that, no demand limit. That mean what ever the combination of Microcomputer produced will be
sold.
Formulate the model 11
1. Identify the Decision Variable;
 the decision variable will is determining the quantity of each microcomputer to produce.
 Therefore:

X1= Quantity of type 1 to be produced

X2 = Quantity of type 2 to be produced

2. Formulate objective function:

 Profit on each type 1 is $60 and for each type2 is $50
 So, the appropriate objective function is:
Maximize z = 60x1 + 50x2
 Formulate the model (Cont.) 12
  
3. Formulate the constraints:
 As for resources we have three resources with limited availability, i.e.
Limited means these constraints will be

a. Tpe1 requires 4 hours of assembly time and type2 requires 10 hours assembly time
so,
b. Tpe1 requires 2 hours of inspection time and type2 requires 1 hours inspection time
so,
c. Both Tpe1 and Type 2 requires 3 cubic feet each so,
 Formulate the model (Cont.) 13
4.
 Formulate
  Non-negativity
Both type of quantity may not have opportunity to be negative, i.e. if produced there is value above
zero otherwise equal to Zero if not produced.
Therefore,

Model Summary :   

Subject to:
Assembly

Inspection
Storage
Methods of Solving LP model 14

Two Methods:
Graphical Methods
Simplex Methods
 Graphical Method to Solve LP model 15

 This method can be used only to solve problems that involve two decision
variables.
 The graphical approach:
1. Plot each of the constraints. Convert each inequality equation into
equality
2. Determine the region or area that contains all of the points that
satisfy the entire set of constraints.
3. Determine the optimal solution.
Figure 2-1 Feasible Region Based on a Plot of the First Constraint
(assembly time) and the Non-negativity Constraint
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Figure 2–2 A Completed Graph of the Server Problem Showing the
Assembly and Inspection Constraints and the Feasible
Solution Space
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Figure 2–3 Completed Graph of the Server Problem Showing All of the
Constraints and the Feasible Solution Space
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 Finding the Optimal Solution
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 The extreme point approach

Involves finding the coordinates of each corner point
that borders the feasible solution space and then
determining which corner point provides the best value
of the objective function.
 The extreme point theorem
If a problem has an optimal solution at least one
optimal solution will occur at a corner point of the
feasible solution space.
 The Extreme Point Approach
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1. Graph the problem and identify the feasible solution space.
2. Determine the values of the decision variables at each corner
point of the feasible solution space.
3. Substitute the values of the decision variables at each corner
point into the objective function to obtain its value at each
corner point.
4. After all corner points have been evaluated in a similar
fashion, select the one with the highest value of the objective
function (for a maximization problem) or lowest value (for a
minimization problem) as the optimal solution.
Figure 2–5 Graph of Server Problem with Extreme Points of the Feasible
Solution Space Indicated
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Table 2–3 Extreme Point Solutions for the Server Problem
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Table 3–5Computing the Amount of Slack for the Optimal Solution to
the Server Problem
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 Minimization Problem 24
 Minimize Z with inequalities of constraints in > form
 Example:
 Suppose that a machine shop has two different types of machines; machine 1 and machine
2, which can be used to make a single product .These machines vary in the amount of
product produced per hr., in the amount of labor used and in the cost of operation.
 Assume that at least a certain amount of product must be produced and that we would like
to utilize at least the regular labor force. How much should we utilize each machine in
order to utilize total costs and still meets the requirement?
Cont’d 25
Figure 2–8 A Comparison of Maximization and Minimization Problems
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 Exercise 27

1. Formulate the LP
ABC Furniture manufacturer produces two products: Beds and Chairs. Each unit of Bed
requires 3 hrs in molding unit, 4hrs in painting unit, and 1 hr in finishing. On the other
hand, each unit of Chair requires 3 hrs in molding unit, 2 hrs in the paint shop and 2 hours
in finishing. Each week, there are 210 hrs available in molding, 200hrs in painting, and
120 hrs in finishing unit. The demand for Beds cannot exceed 40 units per week. Each
unit of Bed contributes Birr 20 to profit, while each unit of chair contributes Birr 30.

2. Maximize Z 3x + 4y
S.T.
5x + 4y ≤ 200 3. Minimize Z: 10x + 4y
3x + 5y ≤ 150 S.T.
5x + 4y ≤ 100 3x + 6y ≥ 250
8x + 4y ≤ 80 15x + y ≥ 150
X,y ≥ 0
2x + 9y ≥ 200
X,y ≥ 0
 Some Special Issues
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 No Feasible/Infeasible Solutions
 Occurs in problems where to satisfy one of the constraints, another
constraint must be violated.

In the above graph, there is no

common point in the shaded area.
All constraints cannot be satisfied
simultaneously and there is no
feasible solution to the problem.
Unbounded Problems
 Exists
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when the value of the objective function can be increased
without limit.
Note
Here that the two corners of the region are A(0,3) and .B(2,1).The
value of MaxZ(A)=6 and MaxZ(B)=8. But there exist number of
points in the shaded region for which the value of the objective
function is more than 8.For example, the point (10, 12) lies in the
region and the function value at this point is 70 which is more than 8.
 
Remark:
An unbounded solution does not mean that there is no solution to the
given LPP, but implies that there exits an infinite number of solutions.
Redundant Constraints
 A constraint that does not form a unique boundary of the feasible solution 30
space; its removal would not alter the feasible solution space.
 Ifa constraint when plotted on a graph doesn’t form part of the boundary
making the feasible region of the problem that constraint is said to be
redundant.

Note:
The packaging hour’s constraint does not form part of the
boundary making the feasible region.
Thus, this constraint is of no consequence and is
therefore, redundant. The inclusion or exclusion of a
redundant constraint does not affect the optimal solution
of the problem.
Multiple Optimal Solutions 31
 Problems in which different combinations of values of the
decision variables yield the same optimal value.

 Both C and D are optimal solutions. Any point on the

line segment CD will also lead to the same optimal
solution.

 Multiple optimal solutions provide more choices for

management to reach their objectives.