Professional Documents
Culture Documents
¨ Introduction to LP
¨ Problem Formulation
¨ Solve LP using Graphical approach
¨ Four Special Cases
¨ Sensitivity Analysis
Notes: From now on, in every lecture, all students must participate
into the activities of the class. The results of these activities will be
scored and allocated to the assigments/homeworks at the end of
the semester.
1. Introduction
¨ Many decisions in management are related with the
best usage resources of organizations.
¨ Manager makes Decisions in order to satisfy Objectives,
Goals of organizations.
¨ Resources: Materials, Machines, Man, Money, Time,
Space.
¨ Linear Programming (LP) is a mathematical method that
helps managers to make decision related with
Resources Allocation. (references about Nobel laureate:
Kantorovich)
¨ Extensively using computer. 3
LP PROBLEM
¨ Problem: determine some variables to Maximize or
Minimize usually Profit/ Cost, called Objective
function.
¨ Constraints: are functions show resources limitation
of companies/ organizations. The problem is to find
solution that maximize profits (or minimize lost/cost)
in given constraints. Form of constraint functions
could be:
¨ Inequality (form or )
¨ Equality
¨ All Objective function and Constraint functions are 4
linear functions.
An Example of an LP model
¨ ABC company manufactures two products: Item A and Item B
¨ Each Item A:
¨ Sell for $27 and uses $19 worth of raw materials.
¨ Increase ABC’s variable labor/overhead costs by $5.
¨ Requires 2 hours of finishing labor.
¨ Requires 1 hour of carpentry labor.
¨ Each Item B:
¨ Sell for $21 and used $9 worth of raw materials.
¨ Increases ABC’s variable labor/overhead costs by $10.
¨ Requires 1 hour of finishing labor.
¨ Requires 1 hour of carpentry labor.
¨ Each week ABC can obtain:
¨ All needed raw material.
¨ Only 100 finishing hours.
¨ Only 80 carpentry hours.
¨ Demand for the Item B is unlimited.
¨ At most 40 Item A are bought each week.
¨ ABC wants to maximize weekly profit (revenues – costs).
ABC’s LP model
¨ x1 = number of item A produced each week
¨ x2 = number of item B produced each week
¨ Variables
¨ Objective function
¨ Constraints:
¨ Limit of resources
¨ Supply Requirement needed to satisfy
¨ Conditions of variables
2. Formulating LP Problems
WYNDOR GLASS CO.
¨ Glass products : windows and glass doors.
¨ Plant 1: Aluminum frames and hardware : Product 1
¨ Plant 2: Wood frame: Product 2
¨ Plant 3: The glass and assembles the products: Product 1 & 2.
¨ Product 1: An 8-foot glass door with aluminum framing
¨ Product 2: A 4x6 foot double-hung wood-framed window
¨ WYNDOR GLASS CO problem: Determine what the production rates
should be for the two products in order to maximize their total profit
The production rate = The number of batches of the
products to be produced / week
WYNDOR GLASS CO Data
Formulation as a Linear Programming Problem
x2
Fig 1. Shaded area shows values of
( x1 , x2 ) allowed by
9
x1 0, x2 0, x1 4, 2 x2 12 8
7 2 x2 12
0 1 2 3 4 5 6 7 x1
Number of batches of product 1
Graphical Representation of Constraints
x2
0 1 2 3 4 5 6 7 x1
Number of batches of product 1
3.1. Isoprofit- line method
Fig 3. The value of (x1 , x2 ) that x2
maximizes 3x1 5x2is (2, 6).
99
8
Z 36 3 x1 5 x2 8
77
(2,6)
66
55
Z 20 3 x1 5 x2 44
33
Z 10 3x1 5 x2 22
11
0 1 2 3 4 5 6 7 x1
Solving LP graphically by Isoprofit- line method
3 1 x2
x2 x1 Z Optimal solution
5 5
99
88
Z 36 3 x1 5 x2 I ( x1 2, x 2 6)
77
66
55
Z 20 3 x1 5 x2 44
Max Profit: Z=3*2+5*6=3
33
Z 10 3x1 5 x2 22
11
0 1 2 3 4 5 6 7 x1
Optimal Solution Structure
x2
99 Binding constraints
A constraint is said to be 88
binding if it holds with equality 77
I ( x1 2, x 2 6)
at the optimum solution. 66
55
44 Z 3x1 5 x2
Other constraints are non-
33
binding
22
11
0 1 2 3 4 5 6 7 x1
Remarks:
100
¨ The set of points finishing constraint Feasible Region
satisfying the LP is D
80
bounded by the five
demand constraint
60
sided polygon DGFEH. G
40
carpentry constraint
F
z = 180
feasible region z = 60
E A C
H
10 20 40 50 60 80 X1
3.2. Corner-point method
0 1 2 3 4 5 6 7 x1
• The optimal solution is C = (2,6)
which obtains profit of 36
Activity 4
100
finishing constraint Feasible Region
80 D
demand constraint
60
z = 100
40
carpentry constraint
20
F
z = 180
z = 60
E A C
H
10 20 40 50 60 80 X1
4. Special cases in LP
¨ Infeasible solutions
¨ Unbounded solutions
¨ Redundant constraints
¨ Multiple optimal solutions
Case 1: Infeasible
Infeasible solutions occurred when:
• Have conflicting constraints ; or
• No solution satisfy all constraints; or
• Can not build the feasible solutions
region.
x2
Example:
99 3x1+5x2=50
X1 0
X2 0
Case 2: Unbounded Solutions
¨ When value of Objective function
approached to infinity we said that the
problem is unbounded or missing one or
more constraints;
¨ The LP did not provide a finite solutions,
this implies the objective function
approaches to infinity without violating
any constraint.
Open ended problem
(4,∞ ), Z=∞
¨ Example: x2
X1 0 6
5
(4,6), Z=42
X2 0 4 (4,4), Z=32
3
X1 4 2 (4,2), Z=22
1
0 1 2 3 4 5 6 7 x1
Number of batches of product 1
Case 3: Redundancy of Constraints
¨ A redundant constraint is a constraint that
will not affect to the solution space
¨ In reality, this will usually happens when
number of constraints and number of
variables are very large.
x2
Example:
9
X1 0
X2 0
Case 4: Multiple solutions
¨ When objective function and one
constraint have the same slope we will
faced with the case multiple optimal
solutions
• Example: x2
Maximize Z = 3X1 + 2X2
St: 3 X1 +2X2 18
9
Z 18 3x1 2 x2
8
0 1 2 3 4 5 6 7 x1
Number of batches of product 1
5. Sensitivity Analysis
0 1 2 3 4 5 6 7 x1
Number of batches of product 1
Sensitivity Analysis on the Contsraints
¨ On constraint 1:
If we increase RHS by 1: 3X1 + 2X2 18+1
The new optimal solution is: X1= 7/3 , X2 =6 and the new Z’ =
37 . The net change in profit is is $1. This is called shadow
price (marginal value or dual price) associated with constraint
1.
• On constraint 2:
If we increase RHS by 1: 2X2 13, X1= 5/3 ,
X2 =13/2
The net change in profit is is $1.5. The shadow price
associated with constraint 2 is $1.5.
• On constrain 3:
X1 4 : not binding constraint x2
9 3 x1 2 x2 18
8
Z 36 3x1 5 x2
7
(2,6) 2 x2 12
0 1 2 3 4 5 6 7 x1
Number of batches of product 1
Remarks