Chapter Three

Linear Programming (LP):

Model Formulation
and Solving LPM
After completing this chapter, you should be able to:
1.Explain what is meant by the terms constrained optimization
and linear programming.
2.List the components and the assumptions of linear programming
and briefly explain each.
3.Name and describe at least three successful applications of
linear programming.
4.Identify the type of problems that can be solved using linear
programming.
5.Formulate simple linear programming models.
6.Identify LP problems that are amenable to graphical solutions.
After completing this chapter, you should be able to:
7. Explain these terms: optimal solution, feasible solution
space, corner point, redundant constraint slack, and
surplus.
8. Solve two-variable LP problems graphically and interpret
your answers.
9. Identify problems that have multiple solutions, problems
that have no feasible solutions, unbounded problems, and
problems with redundant constraints.
? What comes in to your mind when we say
Linear and Programming?
Linear Programming(LP):
Linear implies that all the mathematical relations used
in the problem are linear or straight-line relations, where
as
 For any relation to be linear, two criteria should be
satisfied simultaneously:
i. The power on the variable should be one
ii. A variable should be a product of a constant; not
another variable
 Programming refers to the method of
determining a particular program or plan of
action, i.e., the use of algorithms that is a well
defined sequence of steps that will lead to an
optimal solution.
 Note: The word programming here is different from
the one we know in computer science.
 Taken as a whole:
• Linear programming refers to a family of mathematical
techniques for determining the optimum allocation of
resources and obtaining best solution for a particular
objective when there are alternative uses of the limited
or constrained resources.
• The problems must involve a single objective, a linear
objective function, and linear constraints and have
known and constant numerical values.
 Constrained optimization
• Finding the optimal solution to a problem given that
certain constraints must be satisfied by the solution.
• A form of decision making that involves situations in
which the set of acceptable solutions is somehow
restricted.
• Recognizes scarcity—the limitations on the availability
of physical and human resources.
• Seeks solutions that are both efficient and feasible in the
allocation of resources.
Linear Programming models are characterized by:
 Attaining the optimum use of scarce
productive resources
 Improve quality of decisions
 Highlighting of bottlenecks in the production
process
 Helps in re-evaluation of a basic plan for
changing conditions
 LP treats all relationships among decision
variables as linear
 Parameters appearing in the model are
assumed to be constant
 There is no guarantee that we will get integer
valued solutions
 An LP model does not take in to consideration
the effect of time and uncertainty
 It deals with only with a single objective
 Formulation- the process of converting word
description and numerical data in to
mathematical expression connected using

algebraic signs of ( <,=,> ).

 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 (See work sheet questions)
 Product Mix
 Blending problems
 Portfolio selection
 Marketing
 Chemical mixture
 Human Resources
 Etc
x1 = quantity of server model 1 to produce
x2 = quantity of server model 2 to produce
maximize Z = 60x1+50x2
Subject to:
 There are various ways of solving LPMs:
i. Graphic Approach
ii. Analytical
iii.Simplex/Algebraic
iv. Software
 This method can be used to solve problems that
involve only two decision variables.
 The graphical approach: Steps
1. Plot each of the constraints by finding its
coordinates.
2. Determine the feasible region for each constraint
3.Determine the region or area that contains all of the
points that satisfy the entire set of constraints.
4. Determine the optimal solution.
 Corner point- point where two constraint
intersect
 Feasible solution space – a region common to
all constraints
 Optimal solution – a feasible solution that
optimizes the objective function
 Redundant constraint – repeated constraint whose
removal does not affect the feasible
solution
 Slack – Unused resource/Idle resource
 Surplus – the amount of resource over and
above the amount used.
 For <=(less or equal to) constraint, often times
associated with maximization problems, the feasible
region will be all area below the slant line including
the origin.
 For >=(great or equal to) constraint, often times
associated with minimization problems, the feasible
region is the area that extends above the slant line
infinitely.
 For equality, the feasible region is on a point on the
line.
Fig 3.1
 Fig 3.2

Draw a graph of Inspection time constraint on the same graph

Fig 3.3
 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.
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.
Fig 3.4
 This approach directly identifies the optimal corner point,
so only the coordinates of the optimal point need to be
determined.
• Accomplishes this by adding the objective function to
the graph and then using it to determine which point is
optimal.
• Avoids the need to determine the coordinates of all of
the corner points of the feasible solution space.
• But, this approach is trial and error based and is time
consuming.
Fig 3.5
Fig 3.6
1. Graph the constraints.
2. Identify the feasible solution space.
3. Set the objective function equal to some amount that is
divisible by each of the objective function coefficients.
4. After identifying the optimal point, determine which two
constraints intersect there.
5. Substitute the values obtained in the previous step into the
objective function to determine the value of the objective
function at the optimum.
 Fig 3.8
Fig 3.7
Determine the values of decision variables x1 and x2 that will
yield the minimum cost in the following problem. Solve using
the objective function approach.
Example 3.3
Fig 3.9
 No Feasible Solutions
• Occurs in problems where to satisfy one of the constraints, another
constraint must be violated.
 Unbounded Problems
• Exists when the value of the objective function can be increased without
limit.
 Redundant Constraints
• A constraint that does not form a unique boundary of the feasible solution
space; its removal would not alter the feasible solution space.
 Multiple Optimal Solutions
• Problems in which different combinations of values of the decision
variables yield the same optimal value. (See the material given)
• No Combination of x1 and x2, Can simultaneously satisfy both
constraints
----End of Graphic Approach----