LINEAR

PROGRAMMING:
Model Formulation

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Mathematical Programming
A family of tools designed to help solve
managerial problems in which the
decision maker must allocate scarce (or
limited) resources among various
activities to optimize a measurable
goal.

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Characteristics of Mathematical
Programming
1. A limited quantity of economic resources (such as labor,
capital, etc.) is available for allocation.
2. The resources are used in the production of products or
services.
3. There are two or more ways in which the resources can be
used. Each is called a solution or a program. (Usually the
number of ways is large, or even infinite.)
4. Each activity (product or service) in which the resources are
used yields a return (or reward) in terms of the stated goal.
5. The allocation is usually restricted by several limitations or
requirements called constraints.

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Assumptions in Mathematical
Programming
1. Returns from different allocations can be
compared; that is, they can be measured by a
common unit (such as dollars or utility).
2. All data are known with certainty.
3. The resources are to be used in the most
economical manner.

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In the case of LINEAR PROGRAMMING,
two additional assumptions are:
(Linear Programming is a class of mathematical
programming models concerned with the efficient
allocation of limited resources to known activities
with the objective of meeting a desired goal. The distinct
characteristic of LP models is that the functions
representing the objective and the constraints are linear. )
 
4. The return from any allocation is independent of other
allocations.
5. The total return is the sum of the returns yielded by the
different activities.

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FORMULATION: THE LINEAR
PROGRAMMING MODEL
The LP model is composed of three components:

a) Decision Variables (xj)

also called controllable or independent
variables
values are unknown and are searched for to
provide an optimal solution
depend on the type of LP problem being
considered
variables can be quantities of the resources to
be allocated, or the number of units produced 6
FORMULATION: THE LINEAR
PROGRAMMING MODEL
b) The Objective Function
 
the LP attempts to optimize a single goal
written as a linear function
objective function is to be maximized
(revenue, market share) or minimized (costs)

Profit or Cost Coefficients (cj) express the rate at

which the value of the objective function
increases or decreases.
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FORMULATION: THE LINEAR
PROGRAMMING MODEL
c)Constraints
  While seeking to optimize a goal, the LP process is subject to one or
more uncontrollable restrictions, requirements, or regulations that are
called constraints.
expressed as linear equations and/or inequalities
A constraint is composed of:
 input-output (technology) variables (aij) = indicate the rate at
which a given resource is depleted or utilized
 capacities (or availability) (bi) = of the various resources,
usually expressed as some upper or lower limit; can also
express minimum requirements
 limits to the decision variables = positive, negative,
unrestricted
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If the real-world problem involves
several goals:
1. Select a primary goal whose level
is to be maximized or minimized.
2. Transform the other goals into
constraints, which must only be
satisfied.

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General Format of LP Models
max (or min) z = c1x1 + c2x2 + … + cnxn
= n

c
j 1
j xj

subject to:
a11x1 + a12x2 + … + a1nxn (≤, =, ≥) b1
a21x1 + a22x2 + … + a2nxn (≤, =, ≥) b2
.
.
am1x1 + am2x2 + … + amnxn (≤, =, ≥) bm
x1, x2, …, xn≥ 0

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Structural Constraint General
Form:
ai1x1 + ai2x2 + … + ainxn (≤, =, ≥) bi for i = 1,2,…, m
where
x1, x2, …, xn = decision variables (unknowns)
c1, c2, …, cn = objective function coefficients
aij = technological coefficients or input/output
coefficients (rate at which resources are used)
b1, b2, …, bn = right hand coefficients (available
resources or capacities)

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Properties of LP Problems
1. All LP problems seek to maximize or minimize
some quantity.
2. All LP problems have restrictions or
constraints that limit the degree to which the
objective can be pursued.
3. There must be alternative courses of action to
choose from.
4. The objective and constraints in LP problems
must be expressed in terms of linear equations or
inequalities.
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Operations Research/ Operational Research

♦ scientific approach to managerial decision-

making
 characterized by its use of
mathematical models
study is undertaken to help in solving
a decision problem

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LP PROBLEM FORMULATION
1. List concerns
2. Define decision variables
3. Formulate objective function
4. List constraints which define decision
variables
5. Remember the non-negativity constraint

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Two of the most common allocation problems

1. Product-Mix Problem (MAXIMIZATION)

there are two or more products (candidates or
activities) that compete for limited resources, such as
limited production capacity
The problem is to find out which products to includes in
the production plan and in what quantities these
should be produced - in order to maximize profit,
market share or some other goal
more generally: decide how to allocate scarce
resources

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 Two of the most common allocation problems

2. Blending Problem (MINIMIZATION)

determine the best blend of available ingredients to
form a certain quantity of a product under strict
specifications
best blend = least-cost blend of the required inputs
especially important in the process industries such as
petroleum, chemicals and food
more generally: decide how to allocate resources in the
best manner

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EXAMPLE: THE PRODUCT-MIX
PROBLEM
Jules completed the development of a new
Plasma television projection system for the
NS Corporation. “They’ll be installing the
system on two models for initial sales next
week,” he was saying to his wife Jillien. “I
wish we had a larger workforce, more
machine time, and better marketing
capabilities; I’m sure we could make
considerably more profit. But even as it is,
we don’t know how much of each model to
produce.”
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 CONT………EXAMPLE: THE PRODUCT-MIX
PROBLEM

The two models of color TV sets produced

by the NS Corp. will be designated as N
and S. The company aim is to maximize
profit. The profit realized is PhP 300 from
each model N and PhP 250 from each
model S. Obviously, the more sets
produced and sold, the better. The
trouble is that there are certain
limitations that prevent them from
producing and selling thousands of sets
daily. 18
 CONT………EXAMPLE: THE PRODUCT-MIX
PROBLEM
These limitations are:
 1. Availability of only 40 hours of labor each day
in the production dept. Each unit of model N
requires two hours of labor, whereas each set of
model S requires only one hour. (labor constraint)
2. A daily availability of 45 hours of machine time.
Machine processing time for 1 unit of model N is 1
hour, and for 1 unit of model S, three hours.
(machine constraint)
3. Inability to sell more than 12 sets of model N
each day (marketing constraint) NS’s problem is to
determine how many sets of each model to
produce each day so that the total profit will be as
large as possible.
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 CONT………EXAMPLE: THE PRODUCT-MIX
PROBLEM
Formulation of the Problem
The Decision Variables
x1 = number of sets of model N to be produced daily
x2 = number of sets of model S to be produced daily

The Objective Function

The daily profit realized from selling sets of model N is
300 x1. Similarly, we can get 250 x2 from model S. The
total profit, Z, is therefore, 300x1 + 250x2. This is to be
maximized.
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 Cont….Formulation of the Problem
The Constraints of the System
Labor constraint – there are 40 hours of labor available each day. This is expressed as:
2x1 + x2 ≤ 40
demand for labor supply of labor
Machine Time Constraint – there are 45 machine-hours available per day. This limitation
is expressed as:
1x1 + 3x2 ≤ 45
Marketing Constraint – it is only possible to sell up to 12 units of model N each day. This
is expressed as:
1x1 + 0x2 ≤ 12
Nonnegativity Constraint – finally, it is not possible to produce a negative number of
sets; that is, both x1 and x2 must be nonnegative (zero or positive). This constraint is
expressed as:
x1 ≥ 0, x2 ≥ 0.

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In summary,
the problem is to find the best daily production plan so that
the total profit will be maximized. The problem can now be
written in canonical form as follows:

Maximize Z = 300x1 + 250x2

s.t. 2x1 + x2 ≤ 40 (labor constraint)
x1 + 3x2 ≤ 45 (machine time constraint)
x1 ≤ 12 (marketing constraint)
x1 ≥ 0, x2 ≥ 0(nonnegativity constraints)

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EXAMPLE: THE BLENDING
PROBLEM
Jules’s wife Jillien was thinking about her problem at
the Tom Paint Company. A new, expensive, special-
purpose paint, Moongold, was becoming very
popular, and the production manager had asked
Jillien to see if she could find a combination of two
new ingredients, code named Alpha and Beta, that
would result in an equivalent brilliance and hue,
but at less cost than the original ingredients. In
preparing Moongold paint, it is required that the
paint have a brilliance rating of at least 300
degrees and a hue level of at least 250 degrees.

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CONT…..EXAMPLE: THE BLENDING
PROBLEM
Brilliance and hue levels are determined by 2
ingredients: Alpha and Beta. Both Alpha and Beta
contribute equally to the brilliance rating, one
ounce (dry weight) of either producing one degree
of brilliance in one drum of paint. However, the
hue is controlled entirely by the amount of Alpha,
one ounce of it producing 3 degrees of hue in one
drum of paint. The cost of Alpha is 45 cents per
ounce, and the cost of Beta is 12 cents per ounce.
Assuming that the objective is to minimize the cost
of the ingredients, then the problem is to find the
quantity of Alpha and Beta to be included in the
preparation of each drum of paint.
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 CONT…..EXAMPLE: THE BLENDING PROBLEM

Formulation of the Problem

The Decision Variables
x1 = quantity of Alpha to be included in each drum of paint
(in ounces)
x2 = quantity of Beta to be included in each drum of paint (in
ounces)
 
The Objective Function
Cost for Alpha is 45 cents per ounce, and 12 cents for Beta:
45x1 + 12x2 is our total cost, and is the equation to be
minimized.
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 CONT…Formulation of the Problem
The Constraints of the System
1. To provide a brilliance rating of at least 300 degrees
in each drum. Because each ounce of Alpha or Beta
increases the brightness by 1 degree, the following
equation can be written:
supplied by Alpha supplied by Beta Demand
x1 + x2 ≥ 300

2. To provide a hue level of at least 250 degrees, we have:

3x1≥ 250
3. Nonnegativity Constraint x1 ≥ 0, x2 ≥ 0.

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 In summary,
the blending problem is formulated as follows.
Find x1 and x2 such that:

Minimize Z = 45x1 + 12x2

s.t.
x1 + x2 ≥ 300 (brightness specification constraint)
3x1≥ 250 (hue specification constraint)
x1, x2 ≥ 0 (nonnegativity constraint)

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EXAMPLES OF
APPLICATION
S
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 Example -Blending Problem
The Kayan pharmaceutical of Arkadia produces a weight loss drug
called Manizac. Manizac is made of 3 chemicals and requires two
active ingredients, called A and B, found in these chemicals. The
cost per kg of each chemical and the amount of each active
ingredient (by weight) in each chemical is given as
Chemical Cost A B
1 PhP 14 0.05 0.06
2 13 0.06 0.04
3 10 0.11 0.02

The FDA requires that Manizac must consist of, by weight, at least
8% of ingredient A and 5% of ingredient B. Assume that the weight
is conserved during the drug production. Formulate a linear
program for Kayan that will minimize raw material costs to
produce 1 kg of Manizac. 29
 LP Formulation
Decision Variable
Let X1, X2 and X3 be the amount (in kg) of chemicals 1,2 and 3 used in the
production
Objective Function
Min Z = 14X1 + 13X2 + 10X3
Subject to:
X1 + X 2 + X 3 = 1
0.05X1 + 0.06X2 + 0.11X3 ≥ 0.08(X1 + X2 + X3 )
0.06X1 + 0.04X2 + 0.02X3 ≥ 0.05(X1 + X2 + X3 )
  X1, X2, X3 ≥  0

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Example-Product Mix Problem
Lara Valves produces valves. Two alternative
production lines are available. The company just
received an order for producing 1000 Mark I
valves. Line 1 can produce the valves at a rate of
15 minutes for each valve. The production
capacity on Line 2 is 5 valves per hour. Line 1 is
available, for this order, for not more than 200
hours at a cost of PhP 8 per hour. Line 2 is
available, for this order, for not more than 170
hours at a cost of PhP 5 per hour. (This can be
formulated in two different ways.)
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LP Formulation
METHOD 1 METHOD 2
Decision Variable
Decision variable
X1 = hrs on line 1,
X2 = hrs on line 2 Y1 = # valves line 1,
Objective Function Y2 = # valves line 2
Min Z = PhP 8X1 + 5X2
Objective Function
Subject to:
4X1 + 5X2 = 1000
Min Z = 2Y1 + 1Y2
X1  ≤   200 Subject to:
X2  ≤  170 Y1 + Y2 = 1000
X1, X2 ≥  0
Y1  ≤  800
 
Y2  ≤  850
Y1, Y2 ≥  0
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 Example -Budget Problem
Voice Fair Co. advertises its weekly sales in newspapers, television,
and radio. Each dollar spent in advertising in newspapers is
estimated to reach an exposure of 12 buying customers; each
dollar in TV reaches an exposure of 15 buying customers; and
each dollar in radio reaches an exposure of 10 buying customers.
The company has an agreement with all three media services
according to which it will spend not less than 20% of its total
money actually expended in each medium. Further, it is agreed
that the combined newspaper and TV budget will not be larger
than three times the radio budget. The company has just decided
to spend no more than PhP 17,000 on advertising. How much
should the company budget for each medium if it is interested in
reaching as many buying customers as possible?

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LP Formulation
Decision Variable
Let X1 = Peso (PhP) spent in newspaper,
X2 = Peso spent in television,
X3 = Peso spent in radio
Objective Function
Max Z = 12X1 + 15X2 + 10X3
Subject to:
X1 + X2 + X3 ≤ 17,000
X1 ≥ .2(X1 + X2 + X3)
X2 ≥ .2(X1 + X2 + X3)
X3 ≥ .2(X1 + X2 + X3)
X1 + X2  ≤ 3X3
X1, X2, X3 ≥  0

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 Example- A CARGO PLANE
A cargo plane has three compartments for storing cargo: front, center and rear.
These compartments have the following limits on both weight and space:
Compartment Weight capacity (tons) Space capacity (cubic meters)
Front 10 6800
Centre 16 8700
Rear 8 5300
Furthermore, the weight of the cargo in the respective compartments must be the
same proportion of that compartment's weight capacity to maintain the balance of
the plane.
The following four cargoes are available for shipment on the next flight:
Cargo Available Weight Volume Profit
(tons) (cubic meters/tons) ($/tons)
C1 18 480 310
C2 15 650 380
C3 23 580 350
C4 12 390 285
Any proportion of these cargoes can be accepted. The objective is to determine how
much (if any) of each cargo C1, C2, C3 and C4 should be accepted and how to
distribute each among the compartments so that the total profit for the flight is
maximized 35
LP Formulation
Decision Variables
We need to decide how much of each of the four cargoes to put in each of the three
compartments. Hence let:
xij be the number of tonnes of cargo i (i=1,2,3,4 for C1, C2, C3 and C4 respectively) that is put into
compartment j (j=1 for Front, j=2 for Centre and j=3 for Rear) where x ij ≥ 0 i=1,2,3,4; j=1,2,3
Objective Function
maximize Z= 310[x11+ x12+x13] + 380[x21+ x22+x23] + 350[x31+ x32+x33] + 285[x41+ x42+x43]
Subject to the ff Constraints
cannot pack more of each of the four cargoes than we have available
x11 + x12 + x13 ≤ 18
x21 + x22 + x23 ≤ 15
x31 + x32 + x33 ≤ 23
x41 + x42 + x43 ≤ 12
the weight capacity of each compartment must be respected
x11 + x21 + x31 + x41 ≤ 10
x12 + x22 + x32 + x42 ≤ 16
x13 + x23 + x33 + x43 ≤ 8
the volume (space) capacity of each compartment must be respected
480x11 + 650x21 + 580x31 + 390x41 ≤ 6800
480x12 + 650x22 + 580x32 + 390x42 ≤ 8700
480x13 + 650x23 + 580x33 + 390x43 ≤ 5300
the weight of the cargo in the respective compartments must be the same proportion of that
compartment's weight capacity to maintain the balance of the plane 36
[x + x + x + x ]/10 = [x + x + x + x ]/16 = [x + x + x + x ]/8
Example -Production planning problem
A company manufactures four variants of the same product and in the final part
of the manufacturing process there are assembly, polishing and packing
operations. For each variant the time required for these operations is shown
below (in minutes) as is the profit per unit sold.
Assembly Polish Pack Profit (PhP)
Variant 1 2 3 2 1.50
2 4 2 3 2.50
3 3 3 2 3.00
4 7 4 5 4.50
Given the current state of the labor force the company estimate that, each year,
they have 100000 minutes of assembly time, 50000 minutes of polishing time
and 60000 minutes of packing time available. How many of each variant should
the company make per year and what is the associated profit?
Suppose now that the company is free to decide how much time to devote to
each of the three operations (assembly, polishing and packing) within the total
allowable time of 210000 (= 100000 + 50000 + 60000) minutes. How many of
each variant should the company make per year and what is the associated
profit?
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 LP FORMULATION
Decision Variables
Let:
xi be the number of units of variant i (i=1,2,3,4) made per year
Tass be the number of minutes used in assembly per year
Tpol be the number of minutes used in polishing per year
Tpac be the number of minutes used in packing per year

Objective Function
Presumably to maximize profit - hence we have
Maximize Z = 1.5x1 + 2.5x2 + 3.0x3 + 4.5x4

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Constraints
(a) operation time definition
Tass = 2x1 + 4x2 + 3x3 + 7x4 (assembly)
Tpol = 3x1 + 2x2 + 3x3 + 4x4 (polish)
Tpac = 2x1 + 3x2 + 2x3 + 5x4 (pack)
(b) operation time limits
The operation time limits depend upon the situation being considered. In the first situation,
where the maximum time that can be spent on each operation is specified, we simply have:
Tass ≤ 100000 (assembly)
Tpol ≤ 50000 (polish)
Tpac ≤ 60000 (pack)
In the second situation, where the only limitation is on the total time spent on all operations, we
simply have:
Tass + Tpol + Tpac ≤ 210000 (total time)

where xi ≥ 0 i=1,2,3,4 and Tass, Tpol, Tpac ≥ 0

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ADVANTAGES AND LIMITATIONS OF LP
Advantages:
Finds an optimal solution(s).
Fast determination of the solution, especially if
a computer is used.
Finds solutions to a wide variety of problems
that can be formulated as an LP.
Finds solutions (efficiently) to problems with a
very large or infinite number of possible
solutions.
Provides a natural sensitivity analysis.

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ADVANTAGES AND LIMITATIONS OF LP
Limitations of LP due to Assumptions:

Certainty -assumed that all data are known with

certainty
Linear Objective Function- objective function is
linear. This means that per unit cost, price, and
profit are assumed to be unaffected by changes
in production methods or quantities produced or
sold.
Linear Constraints- constraints are linear. This
assumption is reflected in the next 3 limitations.
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ADVANTAGES AND LIMITATIONS OF LP
Limitations of LP due to Assumptions:

 Additivity- total utilization of each resource is determined by adding

together that portion of the resource required for the production of each of
the various products or activities.
 Independence-complete independence of coefficients is assumed,
both among activities and among resources.
 Proportionality-linearity of the objective function and of the
constraints is a proportionality requirement. This means that the
amount of resources used, and the resulting value of the objective
function, will be proportional to the value of the decision variables.
 Nonnegativity-negative production, or activity levels are not
permissible
 Divisibility-unknown variables (x1, x2, …) are assumed to be continuous, that
is, they can take any fractional value. If the variables are restricted to whole
numbers (thus indivisible), the problem is considered an integer
programming problem.
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Thank you


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