LINEAR PROGRAMMING

Definition
• It is a mathematical technique that deals with the
optimization of a linear function of variables known as
the objective function to a set of linear inequalities
known as constraints.
• It is a method of determining an optimum program of
inter-dependent activities in view of available resources.
 Basic Parts of a LPP
1. The objective function: it describes the
primary purpose of the formulation i.e. to
maximize profit or to minimize cost.
2. The constraint set: It is a system of equalities
and / or inequalities describing the conditions
under which optimization is to be
accomplished e.g. machine hours, man-hours,
materials etc.
3. Positive solutions: Non-negativity constraints
are introduced to ensure only positive values
are considered.
 Mathematical
Formulation of a LPP
• If there are n decision variables and m constraints in the
problem, the mathematical formulation of the LP is:-
Optimization (Max or Min) Z = c1x1 + c2x2 + … + cnxn
Subject to the constraints
a11x1 + a12x2 + … + a1nxn ≤ b1
a21x1 + a22x2 + … + a2nxn ≤ b2
am1x1 + am2x2 + … + amnxn ≤ bm

x1 , x2 … ,xn ≥ 0
Where:
• Xj – decision variable
• Cj – constant representing per unit contribution
of the objective function of the j th decision
variable
• a i j - constant representing exchange
coefficient of the jth decision variable in the
ith constraint
• b i - constant representing ith constraint
requirement or availability
 Requirements for LPP Modelling
1. An objective which should be clearly
identifiable and measurable in quantitative
terms
2. The activities to be included should be
distinctly identifiable and measurable in
quantitative terms
3. The resources of the system which are to be
allocated for the attainment of the goal, should
also be identifiable and measurable
quantitatively. They must be in limited supply.
4. The relationships representing the objective
function and the constraint equations or
inequalities, respectively must be linear in
nature
5. There should be a series of feasible alternative
courses of action available to the decision
maker which are determined by the resource
constraints
 Assumptions of LPP
1. Linearity: Costs, revenues or any physical
properties, which form the basis of the
problem, vary in direct proportion with the
quantities or numbers of components
produced.
2. Divisibility: Quantities, revenues and costs
are infinitely divisible i.e. any fraction or
decimal answer is valid.
3. Certainty: The technique makes no allowance
for uncertainty in the estimate made.
4. Interdependence between demand products is ignored,
products may be complementary or a substitute for one
another.
5. Time factors are ignored. All production is assumed to be
instantaneous.
6. Costs and benefits which cannot be quantified easily, such as
liquidity, good will and labour stability are ignored.
 Advantages of LPP
1. Helps in attaining the optimum use of productive factors
2. Improves the quality of decisions
3. Improves the knowledge and skill of tomorrow’s executives
4. It highlights the bottlenecks in the production process
5. It gives insight and perspective into problem situations
6. Enables one to consider all possible solutions to problems.
7. Enables one to come up with better and more successful
decisions
8. It’s a better tool for adjusting to meet changing conditions.
 Limitations of LPP
1. It treats all relationships as linear
2. It is assumed that any activity is infinitely
divisible
3. It takes into account single objective only i.e.
profit maximization or cost minimization
4. It can be adopted only under the condition of
certainty i.e. that the resources available, per
unit contribution, costs etc are known with
certainty. This does not hold in real situations.
 Solution to LP Problems
Linear Programming problems can be solved by
the help of the following methods:
1. Graphical method
2. Simplex method (to be considered later)
Graphical Method can only be used to solve
problems that involve two decision variables.
In order to solve a LP P graphically, the
following procedure is adopted:-
• Formulate the appropriate LPP
• Plot each of the constraint lines. (Arbitrarily select
two sets of points. Plot each of the points and
connect them with appropriate lines)
• Determine the feasible solution space/area which is
the region that contains all the points that satisfy
the entire constraints set. (Shade the unwanted
region).
• Determine the optimal solution by either the
extreme point approach which considers the the
coordinates of the corner points that border the
feasible solution space and determines which
corner point provides the best value of the
objective function (highest value for a maximization
or lowest value for minimization)
 Exercise 1: The Web Server Problem
• A firm that assembles computer and computer equipment
is about to start production of two new web server models.
Each type of model will require assembly time, inspection
time and storage space. The amounts of each of these
resources that can be devoted to the production of these
servers is limited. The manager of the firm would like to
determine the quantity of each model to produce in order
to maximize the profit generated by sales of these servers.
In order to develop a suitable model, the manager has
met with design and manufacturing personnel. As a result
of these meetings, he has 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 hour
• Storage space per unit 3 cubic ft 3
cubic ft
The manager also acquired information on the
availability of resources. The daily amounts are:
Resource Amount
available
• Assembly time 100 hours
• Inspection time 22 hours
• Storage space 39 cubic ft
 Required
• The manager also met with the firm’s
marketing manager and learned that demand
for the web servers was such that whatever
combination of these two models of servers is
produced, all the output can be sold.
• Use the graphical method to solve or
determine the optimal product mix.
• Compute the amount of slack in the Problem.
 Slack
• Slack relates to a ≤ constraint; it is the
amount of constraint that is unused by the
solution.
• E.g. if one constraint of a problem is that
labour ≤100 hours and the solution requires
90 hours
 Slack
• We say that the labour constraint has a slack
of 10hours. Slack is the amount by which the
LHS of a ≤ constraint is less than the RHS of
the constraint.
• Exercise: Compute the Slack in the Web
Server Problem
 Computing Slack
The Optimal solution is x1 = 9 and x2=4
We have Assembly Time Constraint
4 x1 + 10 x2 ≤ 100
Substituting (9,4) into inequality
We get 4(9) + 10(4) ≤ 100
76 ≤ 100
LHS ≠ RHS therefore Assembly time has a
slack of 24 hours, It is an UNBOUNDED
constraint
 Computing Slack
For Inspection Time Constraint
2x1 + x2 ≤ 22
Substituting (9,4) into inequality
We get 2(9) + 4 ≤ 22
22 ≤ 22
LHS = RHS therefore Inspection has no
unused capacity i.e. no slack and is a
BOUNDED constraint
 Computing Slack
For Storage Space Constraint
3x1 + 3 x2 ≤ 39
Substituting (9,4) into inequality
We get 3(9) + 3(4) ≤ 39
39 ≤ 39
LHS = RHS therefore Storage Space
has no unused capacity i.e. no slack
and is a BOUNDED constraint
 Bounded vs. UnBounded
Constraints
A bounded constraint has no slack i.e.
no excess capacity as all is used up.
The constraint line passes through the
optimal point. (See graph)
An unbounded constraint – not all is
used up and there is excess capacity,
The constraint line does not pass
through the optimal point.
 Exam Question: A Minimization LPP

• Ashok Chemicals Company manufactures

two chemicals A and B, which are sold to the
manufacturers of soaps and detergents. On
the basis of the next month’s demand, the
management has decided that the total
production for chemicals A and B should be at
least 350 kilograms. Moreover, a major
customer’s order for 125 kilograms of product
A must also be supplied. Product A requires 2
hours of processing time per kilogram and
product B requires one hour of processing
time per kilogram.
 Question ctd: A Minimization LPP
• For the coming month, 600 hours of
processing time are available. The
company wants to meet the above
requirements at minimum total cost.
The production costs are Sh. 2 per
kilogram for product A and Sh. 3
per kilogram for product B.
• Use the graphical method to
determine the optimal product mix.