LINEAR PROGRAMMING

BY
ARINAITWE NICHOLAS

Nick 1
 Introduction
• Programming means planning activities in a manner that
leads to some optimal results.
• The concept of “linear” in this context means that all the
variables in consideration ,both the in objective functions
and constraint inequalities must have a linear relationship.
• Linear Programming is one of the optimization
techniques(quest for the best given certain constraints ).
• Optimization means use of resources most efficiently to achieve
specific objective(s) subject to certain constraints or
restraints/limiting conditions that arise either out of limited
resources(labour, land, capital/finances and machinery, time, space
and climatic factors), or due technological limitations.

Nick 2
 Introduction
• Linear Programming is a mathematical technique for
solving maximization and minimization problems which
involve variables having linear relationships with each
other in order to get optimal solutions.
• It is a mathematical model used to determine optimal
combinations of alternative enterprises/activities or
products from which maximum output(profits or
revenue) OR minimum costs(wastes) can be achieved
subject to certain resource constraints.
• It describes graphical and mathematical technique that
seek optimum allocation of scarce(limited) resources to
competing products or activities for profit/revenue
maximization or cost /cost minimization.
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 Introduction
• In this context, optimization means the use of
resources efficiently to maximize or minimize the
objective variables subject to certain constraints.
• A programme is optimal if it maximizes profits or
returns or minimize costs or wastes.
• It allows decision makers, resource owners and
managers (business owners, investors, industries
and governments) in determination (selection) of
optimum enterprises, or investments and product
mix given limited resource over their control to
achieve ends(goals) of maximizing benefits and
minimizing costs and wastes.

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 Assumptions on which LP is based.
• Linearity: Input and outputs in LP have linear
relationship( Can be presented on straight lines using
equations and Inequalities)
• Additivity:That activities in business are able be added
together
• Divisibility: Activities, output and inputs should be
divisible.
• Certainty: Prices, profits & Costs per unit of variables
and required inputs per unit activity & other outcomes
should be predicted or known with certainty.
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 Assumptions….
• Constraints/limited resources: Assumes
limited resources and technology.
• Non-negativity: That either there is an activity
or not , but not negative output or activity.
That is, activities in LP are ≥0.
• Fixed Proportions (proportionality):
Resources required per unit activity are in
fixed proportions (Constant techinical
coefficient)
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 Formulation of Linear
programming Problem/Model
• A Mathematical description of verbal description
of the problem is Linear Programming
Model/Problem (LPP)
• Formulation of LPP is the translation of the above.
• Steps include –identify decision variables-identify
the scarce resources- write objective function-
write the constraint inequalities-add any
additional constraint and non negativity
constraint.
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 OJECTIVE FUNCTION (Function to optimize)
• The objective function is a mathematical statement
of what the organization or firm wishes to achieve.
• It could be maximization of profits or TR or output,
minimization of costs or wastes or some other
measurable objective.
• An “objective function” is expressed in a linear
function or equation like: Max ∏=AX +BY
• The objective function is a linear function of the
decision variables(X and Y) to be determined as
optimal solutions.
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 Cont’d..
• An optimal solution is combination of enterprises or
activities or products that maximizes profits(returns)
or minimize costs within the constraints of the
prevailing limited resources.
• The basic goal of LP is to find the values of
variables/activities (decision variables) that
maximize or minimize the objective function while
satisfying the constraints conditions.
• Constraints may be input requirements like labor,
raw materials, capital, technology, budgets, legal
requirements, time or (machine hours) etc.
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 Examples
• Suppose that a firm produces two products X and
Y, with two inputs A and B. The total quantities of
A and B available per unit of time to the firm were
specified as A=1600 units, and B=2000units.
Producing one unit of X requires 4 units of A and 2
units of B, and one unit of Y requires 2 units of A
and 5 units of B. Profits per unit of X and Y are
estimated at $10 and $8 respectively. Given these
conditions, find the output-mix of X and Y for
optimizing the profits.
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 Solution
• Maximize ∏= 10x + 8Y,
• Subject to constraints,
4X +2Y ≤ 1600
• 2X +5Y ≤ 2000
where X,Y ≥ 0
Use simultaneous or graphical method to get
the optimal solutions (X & Y) that maximize
the profit(∏).
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 Ways of solving LP problems
• Graphical methods
• Solving equations simultaneously
• Simplex Method.
• ETC.

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 Steps for computing a LP problem.
• Identify the problem in the question or objective (Is it Maximization
or minimization problem, and of what variable or performance indicator?)
• Define the variables (products & resources) used in the problem.
• Identify the returns (profit or cost per unit) activity or product.
• Establish the constraints( availability of resources and their limits)
• Identify the technical coefficients (resource/ input requirements
per unit product or per activity)
• Construct the objective function subject to constraints.
• Write the constraint inequalities in relation to available(Maximum
or Minimum) constraints
• Convert the inequalities into equations & solve them
simultaneously to get points of intersection on the X-Y graph
• Plot the equations of constraints on the X-Y graph (plane).
• Establish the feasible region(FR)Nickby shading the unwanted. 13
 Cont’d..
• Points inside and on the boundary of Feasible Region
satisfy the constraint inequalities.
• Find the corner points .Determine the optimal solutions
and value by substituting corner points(X,Y) of feasible
region in the objective function of Maximization or
minimization.
• For maximization problem, the point that gives the
highest value of objective function will be optimal
solution. For minimization problem, the point that
gives the least value of costs will be the optimal solution.
NOTE: Substitute the optimal solution variables into the
constraint inequalities to identify which resource is well planned.
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 MAXIMIZATION OBJECTIVE FUNCTION
• For instance if a firm produces and sells products X and Y
each yielding a unit profit of A and B respectively,
• The objective function of profit maximization will be
express as:
• Max ∏=AX +BY .
• If one unit of X requires a1 units of capital and a2 units
labour to be produced, while one unit of Y needs b1 units
of capital and b2 units labour to be produced, given that
the maximum units of capital & labour available are K
and L respectively,
• Then the maximization problem of profits subject to the
constraints will be as:
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 Maximization Problem
• Max ∏=AX +BY
Subject to constraints,
a1X + b1Y ≤ K, (capital constraint)
a2X + b2Y ≤ L , ( labor constraint)
where X,Y ≥ 0 (Non-negativity)
• The sum of units for each resource constraint(K
or L) used to produces X & Y must not exceed
the maximum available units
• By solving the equations, an optimum solution
(X & Y) to the problem can be got.
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 Cont’d…
• A and B are profits or marginal returns from each
unit of product or activity X & Y respectively.
• X and Y represent activities or enterprises or
products(outputs) or decision variables to which
resources(K & L) are allocated.
• In constraint inequalities, K and L are the
maximum available resource (capital & labor in
this case)
• a1 ,a2, b1 and b2 are inputs(resources) required per
unit activity or product or enterprise. They are
constants called technical coefficients.
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 Further Examples
• A Company produces three products A, B, and C.
The products yield a contribution of $8, $5 and
$10 respectively. The products use a machine
which has 400 hours capacity in the next period.
• Each unit of the product uses 2, 3 and 1 hour
respectively of machine’s capacity. The are only
150 units a variable in the special component
which is used singly in products A and C.
• 200Kgs only of special alloy is a variable in the
period.
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 ctd
• Product A uses 2Kgs per unit and product C
use 4Kgs per units. There is an agreement with
the trade association to produce not more
than 50 units of Product B in the period.
Formulate a LLP to help the Company find the
production plan which maximises contribution

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 Hint.
Resources Out put A variable
resources
A B C
M.Hour 2 3 1 400 hours
capacity
M. component - 150 units
M.alloy 2 - 4 200 kgs
Sale Agreement - - 50 units
Obj 8 5 10 maximize
contribution

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 Example ctd

A chemical manufacturer processes two chemicals,

Arkon and Zenon in varying proportations to
produce three products A, B and C. He wishes to
produce atleast 150 units of A ,200 units of B
and 60 units of C. Each ton of Arkon yields 3 of
A, 5 of B and 3 of C.Each ton of Zenon yields 5 of
A, 5 of B and 1 of C. If Arkon costs $40 per ton
and Zenon $50 per ton, formulate LPP.
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 Class work
• A UAE based firm uses three types of factor inputs namely
labour, capital and gold in producing jewelry of types X and Y.
To produce each unit of X, the firm requires one unit of
labour, one unit of capital and two units of gold. To produce
each unit of Y requires one unit of labour, two units of capital
and one unit of gold. The firm has 50 units of labour, 80 units
of capital and 80 units of gold available. But each unit of
product X contributes $20 to profit while each unit of Y
contributes $ 30 units to profits.
• Required: Use a linear programming approach to find the
optimal combination of product X and Y that will maximize
profit for the firm. What is the value for maximum profit and
which of the available inputs has been poorly planned?

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 Discussion(class work)
• A producer wants to decide how many units of good X
and good Y to produce and maximize revenue from
their sale. Suppose one unit of good X requires 6 units
of labor, 3 hours of machine work and 2 units of raw
materials, while one unit of Y requires 5 units of labor,
one(1) hour of machine work/time and 4 units of raw
materials. If 90 units of labor are available, 36 hours of
machine time are available and 60 units of raw
materials are available, and a unit of X sells at $5 while
a unit of Y sells at $3.Required: Formulate a linear
programming model and determine the combination
of the two products that maximizes the producer’s
total revenue. Which resourceNick
is underutilized? 23
 Group work
A firm manufactures two products -Cup and plate.
These products are processed through 2 production
lines A& B. Production line A has a total of 90 hours
available a week and production line B has a total of
72 hours available per week. Production of one unit
of Cup requires 6 hours in production Line A and 3
hours in production Line B. On the other hand the
production of one unit of plate requires 3 hours in
production line A and 6 hours in production line B.
The profit on each unit of cup is 8/= and that on
plate is 10/=.
If the firm is interested in maximizing profits,
determine the best possible combination of
products- Cup and plate.Nick 24
 Class Discussion Question
A company produces two products X and Y. Product X requires 30
minutes of labour while Y requires 15 minutes of labour. Each unit
of product X uses 2kgs of raw materials while Y uses 4kgs of raw
materials. Product X requires 3minutes of testing while Y requires
4 minutes of testing. In any week, only 30 hours of labour and 280
kgs of aw materials are available. The testing machine can only be
used for 4 hours a week. In what ever situation, at least 20 units of
X must be produced. Each unit of X generates a profit of 12000/=
and Y generates a profit of 10000/= per unit. Required:
(a)Formulate the company’s objective function. (b)Formulate the
constraints to the above function. (c) Determine the weekly
production(X & Y) that maximizes profits, hence compute the
profit level.(d)Which resource has been poorly planned? (see next
slide for the approach)
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 Approach:
Maximize ∏= 12000X + 10000Y,
Subject to constraints below
30X +15Y ≤ (30x60);labour time(minutes).
2X + 4Y ≤ 280; Raw materials.
3X + 4 Y ≤ (4x60); Testing time(minutes).
X ≥20; (at least 20 units of X must be produced)
where X,Y ≥ 0 Non negativity.
NB:Complete this task using either graphical or simultaneous
method or both. NB remember to-draw a vertical line of X
≥20 in your graph
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 Minimization Problem
• This is the LP method of determining the
least cost combinations of activities or
products given resource constraints.
• The main objective is minimization of costs of
production /operations given certain resource
constraints.
• The standard form of minimization problem
consists of minimization objective function
subject to constraint inequalities(next slide)
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 Minimization problem.
• Min C= C1X + C2 Y
• subject to constraints
a1X + b1Y ≥ K (capital constraint)
a2X + b2Y ≥ L ( labour constraint)
where X,Y ≥ 0 (Non-negativity activities)
• X and Y are activities or products produced
• C1 and C2 are costs per unit activity or product.
• a1 ,a2, b1 and b2 are inputs(resources) required per unit
activity or product.
• K and L are minimum(least) quantities
Nick
of constraints available.28
 Example
• A construction firm produces special bricks and
blocks. The cost per brick is $10 and that of a
block is $12. Each brick requires 1unit of cement
and 1unit of sand, while each block needs 1 unit
of cement and 2 units of sand. He needs at least
3 units of cement and 4 units of sand in an hour
(assuming that water and labor are provided
freely). If he wants to minimize the costs of
production per hour, how many bricks and
blocks will he produce?
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 Approach
Let C= cost of production
X= bricks
Y= Blocks
The cost minimization objective function is:
Min C=10X + 12Y
subject to
X+ Y ≥ 3; (Cement)
X + 2Y ≥ ; (Sand)
and X,Y ≥ 0 Non negativity
Complete the computation following all steps of LP.
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 Group work
An automobile manufacturing firm produces only trucks and cars
for which it uses only three inputs-labour, machine and steel. The
firm gets the contractual supplies of inputs; and per agreement, it
requires to make use at least 160 man-hours, 36 machine-hours
and 48 tones of steel. Input requirements per truck are 40 man-
hours, 3 machine hours and 8 tones of steel, while input
requirements per car are 10 man-hours, 6 machine-hours and 4
tones of steel. Given that the production cost per truck has been
at $60,000 and the cost per car is $20,000, formulate an
appropriate linear programming model and determine the
combination of trucks and cars the firm should manufacture to
minimize costs. Which inputs are properly planned as per
contractual terms.

Nick 31
 Discussion
• A company operates two types of aircrafts, the RS101
and the JC111. The RS101 is capable of carrying 40
passengers and 30 tons of cargo, whereas the JC111 is
capable of carrying 60 passengers and 15 tons of cargo.
The company is contracted to carry at least 480
passengers and 180 tons of cargo each day. However,
marketing considerations restricts the use of not more
than 4 air crafts of type RS101 a day. If the cost per
journey is $500 for a RS101 and $600 for a JC111, what
choice or combination of aircraft will minimize cost?

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 Application(Uses) of LP in Mgt &
• Eng
Decision making ( investment or business decisions) to achieve
organizational goals(Decision making to achieve optimal solutions to
problems like profit or revenue maximizing and cost minimizing output
levels given certain resource constraints).
• Based on for strategic planning and budgeting purposes
• Basis for policy formulation and quality assurance purposes,
• Helps managers in allocation of scarce resources to maximize
profits/returns or minimize costs/wastes.
• Product mix in industries for optimal quantities/results
• Applied in construction industry(Input-Mix)
• Job assignment or allocation by HR-managers
• Solving transport and Distribution problems for optimality
• Optimal project or activity selection from available alternative
options subject to input constraints,
Nick
ETC 33
Limitations of Linear Programming
• Graphical method applies to only two variables(activities or
products) yet in practice more than two variables are
involved.
• The model is static and therefore not suitable for analyzing in
details the effects of changes over time-e.g technological
changes.
• It assumes linear relationships between variables yet many
practical problems /situations have non-linear relationships.
• The quantities of certain resources per unit products and
returns /profits and costs per unit product are likely to be
subjected to considerable uncertainty due to socio-economic
and environmental variations.
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 Cont…
• It does not take into account the law of diminishing
returns.
• It only applies in situations with constant market
conditions for goods and resources which is not
always the case in real world.
• It is only useful in organizations whose main
objective is to either maximize profits ,output or
revenue or minimize costs and wastes while ignoring
other non-quantitative objectives.
• It does not take into consideration the problem of
inflation or fluctuations in other variables. ETC

Nick END 35
 Solution to LLP: Graphical
• Definition
• Feasible solution is the set all values of
variables that satisfy all the constraint
inequalities
• Feasible region is an area whose values satisfy
all the constraints.
• Optimal feasible solution is set of values of
decision variable that give the optimal value of
the objective and satisfy all the constraints
Nick 36
 ctd
• Optimal value the optimizes value of the objective
function.
• Example
• Solve the LP Max 3x+4y
• St 4x+2y≤100
• 4x+6y≤180
• x + y ≤40
• y≥10
• x,y≥0
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 SIMPLEX METHOD

• It’s a step by step arithmetic method of

solving LP Problems whereby one moves
progressively from zero contribution, until no
further contribution can be made.

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 Steps in simplex
• Express the problem in standardised format
by making inequalities equalities by adding
slack variables
• Set up the initial simplex of form
Solution Products Slack Variable Solution
variable X y z S t V w quantity

s 2 3 1 1 0 0 0 400

t 1 0 1 0 1 0 0 150
v 2 0 4 0 0 1 0 200

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w 0 1 0 0 0 0 1 50
 ctd
• Improve the previous feasible solution using
the highest figure in the Z row. Select 10,
divide the positive numbers in the z column
into the solution quantity column, ie
400/1=400, 150/1=150, 200/4=50, 50/0
ignore. Select the row that gives the lowest
answer, ie v-row. Ring element under z-
column and v-row ie 4 known as pivot
element.
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 ctd
• Divide all the elements in the indentified row
(v) by the pivot element. Change the solution
variable by heading of identified column
(z) ,Row 3 means 50 units of z are produced
• We adjust other row by repetitive row by row
operation using row 3 which makes all other
elements in the pivot elements column into
zero ie R3-R1→R1,R2-R3→R2,R5-10R3→R5

Nick 41
 ctd
• When all row operation are done, form next
simple tableau
Row no Solution Product Slack Solution
variable X y z variable quantity
S t v w
R6 S 1.5 3 0 1 0 -1/4 0 350
R7 t ½ 0 0 0 1 -1/4 0 100

R8 z ½ 0 1 0 0 ¼ 0 50
R9 w
R10 Z 3 5 0 0 0 -2.5 0 -500

Nick 42
 ctd
• Repeat producers until non positive elements
in Z Row. Finally
Row Solution Product Slack variable Solution
no variable X y z S t v w quantity
R16 s 0 0 -3 1 0 -1 -3 50
R17 t 0 0 -1 0 1 -1/2 0 50
R18 x 1 0 2 0 0 1/2 0 100
R19 y 0 1 0 0 0 0 1 50
R20 Z 0 0 -6 0 0 -4 -5 -1050

Nick 43
 ctd
• As there are non positive values in the Z-row
the optimal solution has been reached
• Thus the optimal solution variables are x=100,
y=50 and z=0
• Values of slacks are s=50 unused machine hours
and t=50 unused 50 components of the
machine at Optimum
• The Optimal value is 1050. obtained in obj. as
8.100+5.50=1050
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 Dual problem.
• Given the Primal problem
• Max z=cx
• st AX≤b, x>0
• The dual problem is Minz=bu
• st UA≥c, u>0
• Example. Find dual problem of ……

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 Fundamental Dual Theorem
• If the primal problem is MaxZ=Cx st AX≤b
• And the dual is Min w= bu st uA≥C the
theorem states that Maxz=minw for the
optimal value of the objective function.

Nick 46
 exercise
• Solve the following LPPS
• Max(-7x+9y+3z) st 5x-4y-z≤10,x-y≤4,-
3x+4y+z≤1, x,y,z≥0
• Max(2x-3y+z)s.t x-2y+4z≤5,2x+2y+4y≤5,3x+y-
z≤7, x,y,z≥0
• Min(2x+3y+3z) s.t 2x-3y+z≥4,x+y+2z≥3, x,y,z≥0
• Ans()

Nick 47