Application of Linear Programming

INTRODUCTION
Mathematics is the queen of science. In our daily life, planning is required on

various occasions, especially when the resources are limited. Any planning is meant for

attaining certain objectives. The best strategy is one that gives a maximum output from

a minimum input. The objective which is in the form of output may be to get the

maximum profit, minimum cost of production or minimum inventory cost with a

limited input of raw material, manpower and machine capacity. Such problems are

referred to as the problems of constrained optimization. Linear programming is a

technique for determining an optimum schedule of interdependent activities in view of

the available resources. Programming is just another word for ‘planning’ and refers to

the process of determining a particular plan of action from amongst several alternatives.

Linear programming applies to optimization models in which objective and

constraint functions are strictly linear. The technique is used in a wide range of

applications, including agriculture, industry, transportation, economics, health systems,

behavioral and social sciences and the military. It also boasts efficient computational

algorithms for problems with thousands of constraints and variables. Indeed, because of

its tremendous computational efficiency, linear programming forms the backbone of

the solution algorithms for other operative research models, including integer,

stochastic and non-linear programming. The graphical solution provides insight into the

development of the general algebraic simplex method. It also gives concrete ideas for
the development and interpretation of sensitivity analysis in linear programming.

Linear programming is a major innovation since World War II in the field of

business decision making, particularly under conditions of certainty. The word ‘linear’

means the relationships handled are those represented by straight lines, i.e. the

relationships are of the form y = a + bx and the word ‘programming’ means taking

decisions systematically. Thus, linear programming is a decision making technique

under given constraints on the assumption that the relationships amongst the variables

representing different phenomena happen to be linear.

A linear programming problem consists of three parts. First, there objective

function which is to be either maximized or minimized. Second, there is a set of linear

constraints which contains thee technical specifications of the problems in relation to

the given resources or requirements. Third, there is a set of non negativity constraints -

since negative production has no physical counterpart.

AIM

1. To find and know more about the importance and uses of ‘linear
programming’.
2. To formulate a linear programming problem and solve in simplex method
and dual
problem.

DATA COLLECTION
Linear programming is a versatile mathematical technique in operations

research and a plan of action to solve a given problem involving linearly related
variables in order to achieve the laid down objective in the form of minimizing or

maximizing the objective function under a given set of constraints

CHARACTERISTIC:

Objectives can be expressed in a standard form viz. maximize/minimize z = f(x)

where z is called the objective function.

¢ Constraints are capable of being expressed in the form of equality or inequality

viz. f(x) = or < or > k, where k = constant and x > 0.

e Resources to be optimized are capable of being quantified in numerical terms.

e — The variables are linearly related to each other.

¢ More than one solution exist, the objectives being to select the optimum solution.

e The linear programming technique is based on simultaneous solutions of linear

equations.

USE!
There are many uses of L.P. It is not possible to list them all here. However L.P is very

useful to find out the following:

© Optimum product mix to maximize the profit.

¢ Optimum schedule of orders to minimize the total cost.

¢ Optimum media-mix to get maximum advertisement effect.

¢ Optimum schedule of supplies from warehouses to minimize transportation cos

¢ Optimum line balancing to have minimum idling time.

¢ Optimum allocation of capital to obtain maximum R.O.T

¢ — Optimum allocation of jobs between machines for maximum utilization of

machines.

¢ Optimum assignments of jobs between workers to have maximum labor

productivity.

¢ Optimum staffing in hotels, police stations and hospitals to maximize efficiency.

¢ Optimum number of crew in buses and trains to have minimum operating costs.

¢ Optimum facilities in telephone exchange to have minimum break downs.

The above list is not an exhaustive one; only an illustration.

ADVANTAGES

¢ Provide the best allocation of available resources.

© meet overall objectives of the management.

e Assist management to take proper decisions.

e Provide clarity of thought and better appreciation of problem.

¢ Improve objectivity of assessment of the situation.

¢ Put across our view points more successfully by logical argument supported by

methods.

PRINCIPLES

Following principles are assumed in L.P.P

Proportionality: There exist proportional relationships between objectives and

constraints.

Additivity: Total resources are equal to the sum of the resources used in individual
activities.

Divisibility: Solution need not be a whole number viz decision variable can be in

fractional form.

Certainty. COCHICICHIS OF ODJECUVE TUNCHON and CONSUAINS ale KNOWN

CONSLATES ald

do not change viz parameters remain unaltered.

Finiteness: Activities and constraints are finite in number.

Optimality: The ultimate objective is to obtain an optimum solution viz

‘maximization’ or ‘minimization’.

DEFINITION OF TERMS

a) Basic solution: There are instances where number of unknowns (p) are more

than the number of linear equations (q) available. In such cases we assign zero

values to all surplus unknowns. There will be (p-q) such unknowns. With these

values we solve ‘q' equations and get values of 'q' unknowns. Such solutions are

called Basic Solutions.

b) Basic variables: The variables whose value is obtained from the basic solution is

called basic variables

c) Non-basic variables: The variables whose value are assumed as zero in basic

solutions are called non-basic variables.

Solution: A solution to a L.P.P is the set of values of the variables which

satisfies the set of constraints for the problem.

e) Feasible solution: A feasible solution to a L.P.P the set of values of variables

which satisfies the set of constraints as well as the non-negative constraints of the

problem.

f) Basic feasible solution: A feasible solution to a L.P.P in which the vectors

associated with the non-zero variables are linearly independent is called basic

feasible solution

Note: Linearly independent: variables x), x2, are said to be linearly

independent if k)x)+k2x2+.........+kiXn=0, implying ki=0, ko='

g) Optimum (optimal) solution: A feasible solution of a L.P.P is said to. be the

optimum solution if it also optimizes the objective function of the problem.

h) Slack variables: Linear equations are solved through equality form of equations.

Normally, constraints are given in the "less than or equal" (<) form. In such

cases, we add appropriate variables to make it an "equality" (=) equation. These

variables added to the constraints to make it an equality equation in L.P.P is

called stack variables and is often denoted by the letter 'S'.

Eg: 2x; + 3x2 < 500

+ 2x; + 3x2 + S,; = 500, where S; is the slack variable

i) Surplus variables: Sometime, constraints are given in the "more than or equal"

(©) form. In such cases we subtract an approximate variable to make it into

"equality" (=) form. Hence variables subtracted from the constraints to make it
an equality equation in L.P.P is called surplus variables and often denoted by the

letter 's'.

Eg: 3x1+ 4x2 > 100

3x, +4x2-S:=0, — where S> is the surplus variable.

j) Artificial variable : Artificial variables are fictitious variables. These are

introduced to help computation and solution of equations in L.P.P. There are

used when constraints are given in (>) "greater than equal" form. As discussed,

surplus variables are subtracted in such cases to convert inequality to equality

form . In certain cases, even after introducing surplus variables, the simplex

tableau may not contain an ‘Identity matrix’ or unit vector. Thus, in a L.P.P

artificial variables are introduced in order to get a unit vector in the simplex

tableau to get feasible solution. Normally, artificial variables are represented by

the letter 'A’.

k) Big-M-method: Problems where artificial variables are introduced can be solved

by two methods viz.

> Big-M-method and

» Two phase method.

Big-M-method is modified simplex method for solving L.P.P when high

penalty cost (or profit) has been assigned to the artificial variable in the

objective function. This method is applicable for minimizing and maximizing

problems.
1) Two Phase method : L.P.P where artificial variables are added can be solved by

two phase method. This is a modified simplex method. Here the solution takes

place in two phases as follows:

> Phase I - Basic Feasible solution: Here, simplex method is applied to a

specially constricted L.P.P called Auxiliary L.P.P and obtain basic

feasible solution.

> Phase II - Optimum Basic solution: From basic feasible solution, obtain

optimum feasible solution.

m) Simplex Tableau : This is a table prepared to show and enter the values obtained

for basic variables at each stage of Iteration. This is the derived values at each

stage of calculation.

Optimal solution

An optimal solution of a linear programming problem is the set of real values of

the decision variables which satisfy the constraints including the non-negativity

conditions, if any and at the same time optimize the objective function.

A vector (X1, X2... Xn) Which satisfies the constraints A x < or > b only is called

a solution. And a solution which satisfies all the constraints including the non-

negativity condition is called a feasible solution. The set of all feasible solutions is

called feasible space.

Integer Programming

A LP.P in which solution requires integers is called an integer programming

problem. A mathematical programming in which the objective fn is quadratic but all the

constraints are linear un the decision variable is called a quadratic programming.

eg: Max z= xpt x?

Subject to 2x; + x2 <6

Tx; + 8x2 < 28

X1,X%220

Graphical L P solution

The graphical procedure includes two steps :

1. Determination of the solution space that defines all feasible solutions of the
model.
2. Determination of the optimum solution from among all the feasible points
in the
solution space.

The proper definition of the decision variables is an essential first step in the

development of the model. Once done, the task of constructing the objective function

and the constraints is more straight forward.