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Tata McGraw

Chapter 2A

Linear Programming Using the Excel Solver

2A-3 OBJECTIVES Linear Programming Basics A Maximization Problem A Minimization Problem .

2A-4 Linear Programming Essential Conditions Is used in problems where we have limited resources or constrained resources that we wish to allocate The model must have an explicit objective (function) ± Generally maximizing profit or minimizing costs subject to resourcebased. constraints . or other.

permit fractional values if need be) .e. products must the identical) and all hours of labor used are assumed equally productive Divisibility assumes products and resources divisible (i..e.2A-5 Linear Programming Essential Conditions (Continued) Limited Resources to allocate Linearity is a requirement of the model in both objective function and constraints Homogeneity of products produced (i..

2A-6 Common Applications Aggregate sales and operations planning Service/manufacturing productivity analysis Product planning Product routing Vehicle/crew scheduling Process control Inventory control .

. + CnXn Cj is a constant that describes the rate of contribution to costs or profit of (Xj) units being produced Z is the total cost or profit from the given number of units being produced .2A-7 Objective Function Maximize (or Minimize) Z = C1X1 + C2X2 + ..

or = linear mathematical expressions : : ...... + A1nXneB1 A21X1 + A22X2 + . u. + AMnXn=BM Aij are resource requirements for each of the related (Xj) decision variables Bi are the available resource requirements Note that the direction of the inequalities can be all or a combination of e..2A-8 Constraints A11X1 + A12X2 + . + A2nXn uB2 AM1X1 + AM2X2 + .

2A-9 Non-Negativity Requirement X1.X2. «. Xn u 0 All linear programming model formulations require their decision variables to be non-negative While these non-negativity requirements take the form of a constraint. they are considered a mathematical requirement to complete the formulation of an LP model .

the Max and the Multimax.000 hours of fabrication capacity available per month (each Max requires 3 hours and each Multimax requires 5 hours). Fabrication hours and assembly hours are limited resources. The average profit is $400 for each Max and $800 for each Multimax. The company produces two product lines.000 hours of assembly capacity available per month (each Max requires 1 hour and each Multimax requires 4 hours). There is a maximum of 3. Question: How many units of each riding mower should be produced each month in order to maximize profit? Now let¶s formula this problem as an LP model« .2A-10 An Example of a Maximization Problem LawnGrow Manufacturing Company must determine the unit mix of its commercial riding mower products to be produced next year. There is a maximum of 5.

and since we want to maximize profit. we can state the objective function as follows: Maximize Z = 400X1 + 800 X 2 Where Z = the monthly profit from Max and Multimax X1 = the number of Max produced each month X 2 = the number of Multimax produced each month .2A-11 The Objective Function If we define the Max and Multimax products as the two decision variables X1 and X2.

000 X1 + 4X 2 e 3. X 2 u0 (Fab.000 3.) (Assy.) (Non .negativity) Note that the inequalities are less-than-or-equal since the time resources represent the total available resources for production .000 X1 .2A-12 Constraints Given the resource information below from the problem: Max (X1) Required Time/Unit 3 1 Multimax (X2) Required Time/Unit 5 4 Available Time/Month 5.000 Fab Assy We can now state the constraints and non-negativity requirements as: 3X1 + 5X 2 e 5.

2A-13 Solution Produce 715 Max and 571 Multimax per month for a profit of $742.800 .

2A-14 The Excel Solver Formulation .

5 tons of zinc and 1 ton of lead at a cost of $15. Question: How many truckloads of scrap should be purchased per day from each source in order to minimize scrap metal costs to HiTech? Now let¶s formula this problem as an LP model« . Hasbeen Industries and Gentro Scrap in daily shipments using large trucks. HiTech requires at least 6 tons of zinc and at least 10 tons of lead per day. HiTech receives scrap metal from two sources. Each truckload of scrap from Gentro yields 1 ton of zinc and 3 tons of lead at a cost of $18. Each truckload of scrap from Hasbeen yields 1.000.000.2A-15 An Example of a Minimization Problem HiTech Metal Company is developing a plan for buying scrap metal for its operations.

and since we want to minimize cost.2A-16 The Objective Function If we define the Has been truckloads and the Gentro truckloads as the two decision variables X1 and X2. we can state the objective function as follows: Minimize Z = 15.000 X2 Where Z= daily scrap cost X1 = truckloads from Hasbeen X2 = truckloads from Gentro Hasbeen GENTRO .000 X1 + 18.

5 1 Gentro (X2) Tons 1 3 Min Tons 6 10 Zinc Lead We can now state the constraints and non-negativity requirements as: 1. X1.2A-17 Constraints Given the demand information below from the problem: Hasbeen (X1) Tons 1. X2 .5X1 + X1 + X2 3X2 > 6(Zinc/tons) > 10(Lead/tons) > 0(Non-negativity) Note that the inequalities are greater-than-orequal since the demand information represents the minimum necessary for production.

2A-18 Solution Order 2.57 truckloads from Gentro for daily delivery. Note: Do you see why in this solution that ³integer´ linear programming methodologies can have useful applications in industry? .610. The daily cost will be $80.29 truckloads from Hasbeen and 2.

2A-19 The Excel Solver solution .

Linearity e.) .2A-20 Question Bowl Which of the following is considered an ³essential condition´ for linear programming to be used in a problem situation? a. All of the above Answer: e. Explicit objective c. Divisibility d. All of the above (Correct answer can include Homogeneity. Limited resources b.

refers to which of the following ³essential conditions´? a.2A-21 Question Bowl The fact that a regular linear programming model has to permit a solution that is factional. Explicit objective c. Divisibility . Divisibility d. All of the above Answer: c. Linearity e. Limited resources b.

Microsoft Solver spreadsheet program c. None of the above Answer: d. All of the above e.2A-22 Question Bowl Which of the following are means by which a linear programming problem can be solved? a. All of the above . Genetic algorithm b. Graphic LP d.

2A-23 End of Chapter 2A .

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