AE 106

Linear Programming

Management
Management Science
Science

College of Business Administration

Prepared by: Josefine M. de Leon

 Outline

 Linear Programming Model Formulation:

 Maximization
 Minimization
 Graphical Solution Method
 Maximization
 Minimization
 Linear Programming (LP)

A model consisting of linear relationships

representing a firm’s objective and resource
constraints

LP is a mathematical modeling technique

used to determine a level of operational
activity in order to achieve an objective,
subject to restrictions called constraints
a) Identify the decision variables and assign symbols
x and y to them.
b) Identify the objective function and express it as a
linear function of decision variables. It would take
the form of minimizing cost.
c) Identify the set of constraints and express them
as linear equations in terms of the decision
variables. Add the non-negativity restrictions on the
decision variables.
 LP Model Formulation

 Decision variables
 mathematical symbols representing levels of activity of an

operation
 Objective function
 a linear relationship reflecting the objective of an operation

 most frequent objective of business firms is to maximize

profit
 most frequent objective of individual operational units

(such as a production or packaging department) is to

minimize cost
 Constraint
 a linear relationship representing a restriction on decision

making
 Example 4 (Maximization)
 In the production of 2 types of toys, a factory uses 3
machines A, B and C. The time required to produce the
first type of toy is 6 hours, 8 hours and 12 hours in
machines A, B and C respectively. The time required to
make the second type of toy is 8 hours, 4 hours and 4
hours in machines A, B and C respectively. The
maximum available time (in hours) for the machines A,
B, C are 380, 300 and 404 respectively. The profit on the
first type of toy is 5 dollars while that on the second
type of toy is 3 dollars. Find the number of toys of each
type that should be produced to get maximum profit.
 Let x = number of toys of type-I to be produced
y = number of toys of the type - II to be produced

Maximize P = 5x + 3y
subject to: 6x + 8y < 380
8x + 4y < 300
12x + 4y < 404
x, y > 0
 Example 4 (Maximization)

A firm manufactures 2 products, A and B. Each product is

processed by machines, M1 and M2. Each unit of type A
requires 1 hour of processing by M1 and 2 hours in M2 and
each unit of type B requires 3 hours on M1 and 1 hour on
M2. The profit on product A is Php20 per unit on product B
is Php30 per unit. If M1 is available for 200 hours each
month and M2 for 300 hours, how many units of each type
can be manufactured in one month in order to maximize
the profits?
Example 4 (Maximization)

LP Model Formulation

Maximize P = 20X + 30Y

Subject to
X + 3Y200 hours time in M1
2X + Y 300 hours time in M2
X , Y 0
Solution is X = 140 units of Product A
Y = 20 units of Product B
Revenue = Php1,280.00
a) Identify the decision variables and assign symbols x
and y to them.
b) Identify the objective function and express it as a
linear function of decision variables. It would take the
form of minimizing cost.
c) Identify the set of constraints and express them as
linear equations in terms of the decision variables. Add
the non-negativity restrictions on the decision
variables.
Example 1
Minimization Problem

A diet is to contain at least 4000 units of carbohydrates,

500 units of fat and 300 units of protein. Two foods A
and B are available. Food A costs 2 dollars per unit and
food B costs 4 dollars per unit. Food A contains at least
20 units of fat and 15 units of protein and 10 units of
carbohydrates. Food B contains 25 units of
carbohydrates, 10 units of fat and 20 units of protein
minimum requirement. Find the minimum cost for a diet
that consists of a mixture of these two foods.
Minimization Problem: LP Model
 Let the diet contain
x = number of units of food A
y = number of units of food B.

Minimize: C = 2x + 4y
subject to:
10x +25y  4000 units carbohydrates
20x + 10y  500 units of fat
15x + 20y  300 units of protein
x, y  0
Minimization Problem Example 2

Assume that a pharmaceutical firm is to produce exactly 40

gallons of mixture in which the basic ingredients, B and C,
cost P8 per gallon and P15 per gallon, respectively, No
more than 12 gallons of B can be used, and at least 10
gallons of C must be used. The firm wants to minimize cost.

Minimize: C = 8x + 15y
subject to To minimize cost, the
x + y = 40 company should use 12
x ≤ 12 gallons of x and 28 gallons
y ≥ 10 of y at a total cost of P516.
x, y 0
(a) Plot model constraint on a set of coordinates in
a plane.
(b) Identify the feasible solution space on the
graph where all constraints are satisfied
simultaneously
(c) Plot objective function to find the point on
boundary of this space that maximizes value of
objective function
(d) Convert the structural constraints into
equations. Graph each of the constraints equation
and solve for the intersection if necessary.
Determine the feasible solution region that
contains all points that satisfy the explicit
constraints.
(e) Find the vertices of the feasible solution region
and substitute it to the objective function.
(f) Choose the vertex with the highest profit in a
maximization problem and write the decision.
LP Model: Graphical Method

RESOURCE REQUIREMENTS
Labor Clay Revenue
PRODUCT (hr/unit) (lb/unit) (P/unit)
Bowl 1 4 40
Mug 2 3 50

There are 40 hours of labor and 120 pounds of clay

available each day

Decision variables
X = number of bowls to produce
Y = number of mugs to produce
 LP Model: Graphical Method

Maximize Z = 40 X + 50 Y

Subject to
X + 2Y 40 hr (labor constraint)
4X + 3Y 120 lb (clay constraint)
X , Y 0

Solution is X = 24 bowls Y = 8 mugs

Revenue = Php1,360.00
Graphical Solution: Example
Y
50 –

40 –
4X + 3Y 120 lb
30 –

Area common to
20 –
both constraints

10 – X + 2Y 40 hr
| | | | | |
0–
10 20 30 40 50 60 X
 Computing Optimal Values

Y X + 2Y = 40
40 –
4X + 3Y = 120
4X + 3Y 120 lb
30 – 4X + 8Y = 160
-4X - 3Y = -120
20 –
5Y = 40
10 – X + 2Y 40 hr Y = 8

0–8
| | 24 | | X X + 2(8) = 40
10 20 30 40 X = 24
Z = P50(24) + P50(8) = P1,360
 Computing Optimal Values

Extreme Corner Points

X = 0 bowls
Y Y =20 mugs
X = 24 bowls
Z = P1,000
Y =8 mugs
40 –
Z = P1,360 X = 30 bowls
30 – Y =0 mugs
Z = P1,200
20 – A

10 – B
| | | C|
0–
10 20 30 40 X
 Computing Optimal Values

Objective Function
Y
40 – 4X + 3Y 120 lb

Z = 70X + 20Y
30 – Optimal point:
A
x1 = 30 bowls
20 – x2 =0 mugs
Z = $2,100
B
10 –
X + 2Y 40 hr
| | | C |
0– 10 20 30 40 X
(a) Plot model constraint on a set of coordinates in
a plane.
(b) Identify the feasible solution space on the
graph where all constraints are satisfied
simultaneously
(c) Plot objective function to find the point on
boundary of this space that minimizes value of
objective function
(d) Convert the structural constraints into equations.
Graph each of the constraints equation and solve for
the intersection if necessary. Determine the feasible
solution region that contains all points that satisfy
the explicit constraints.
(e) Find the vertices of the feasible solution region
and substitute it to the objective function.
(f) Choose the vertex with the lowest cost in a
minimization problem and write the decision.
 Minimization Problem: Graphical

CHEMICAL CONTRIBUTION
Brand Nitrogen (lb/bag) Phosphate (lb/bag)
Gro-plus 2 4
Crop-fast 4 3

Minimize C = P6x + P3y

subject to
2x + 4y  16 lb of nitrogen
4x + 3y  24 lb of phosphate
x, y 0
Graphical Solution
Y

14 –
x = 0 bags of Gro-plus
12 – y = 8 bags of Crop-fast
Z = P24
10 –
A
8– Z = 6x + 3y
6–

4–
B
2–
C
| | | | | | |
0–
2 4 6 8 10 12 14 X