LESSON 5: LINEAR PROGRAMMING

Linear Programming – is a problem-solving approach that has been developed to help managers or
administrators make decisions

2 Properties of Linear Programming Problems:

1. They deal with maximizing or minimizing some quantities.

2. There are restrictions or constraints that limit the degree to which the objective can be pursued.

Model Formulation:

A linear programming model consists of certain common components and characteristics. The
model components include decision variables, an objective function, and model constraints, which
consist of decision variables and parameters.

4 Components of LP Model:

1. Objective – linear programming algorithms require that a single goal or objective be specified.
The objective function is a linear mathematical relationship that describes the objective of the
firm in terms of the decision variables. The objective function always consists of either
maximizing or minimizing some value.
2. Decision Variables – are mathematical symbols that represent levels of activity by the firm.
These represent choices available to the decision maker in terms of amounts of either inputs or
outputs.
3. Constraints – are also linear relationships of the decision variables; they represent the
restrictions placed on the firm by the operating environment. The restrictions can be in the form
of limited resources or restrictive guidelines.
4. Parameters – are numerical values that are included in the objective functions and constraints.

Assumptions on Linear Programming Models:

1. Linearity – the impact of decision variables is linear in constraints and the objective function.
2. Divisibility – non-integer value of decision variables are acceptable.
3. Certainty – values of parameters are known and constant.
4. Non-negativity – negative value of decision variables are unacceptable.

Formulating a Linear Programming Model:

The information about the problem should be gathered but naturally it is important to obtain valid
information on what constraints are appropriate. Once all information has been obtained, you are now
ready to assemble a model.

1st approach: (this follows a logical sequence)

1. Identify the decision variables.

 2. Write out the objective function.
3. Formulate each of the constraints

2nd approach: (Let the problem guide you in formulating a linear programming model)

Example: If the first words of a problem are: “ A manager wants to maximize profit” this would lead to
an objective function: Maximize Profit. But if the words are: “A department has 1,000 pounds of raw
material available to prepare its products” this would lead to : raw material ≤ 1,000 pounds.

Maximization Problem

Example: An appliance manufacturer produces two models of electric fans: stand fan and desk fan. Both
models require fabrications and assembly work. Each stand fan uses 4 hours of fabrication and 2 hours
of assembly work. While each desk fan uses 2 hours of fabrication and 6 hours of assembly work. There
are 600 fabrication hours available per week and P480 hours of assembly work. Each stand fan
contributes P400 to profits and each desk fan contributes P300 to profits. How many stand fan and desk
fan must the manufacturer produce in order to maximize the profit?

Solution:

Decision Variables:

Let x = number of stand fans to produce

y = number of desk fans to produce

By tabulating first, the information about the problem, we may come out with this table:

Product Fabrication time Assembly Work time Profit

x 4 hours 2 hours P400
y 2 hours 6 hours P300
Available time 600 hours 480 hours

Then the problem could be formulated as follows:

LP Model:

Maximize Profit = 400x + 300y

subject to:

fabrication: 4x + 2y ≤ 600

assembly: 2x + 6y ≤ 480

non-negativity: x≥0
 y≥0

GRAPHICAL LINEAR PROGRAMMING

- Involves plotting the constraints on a plane and identifying an area that will satisfy all the given
constraints. This area is the feasible solution area which contains the combination of values for
the decision variables that simultaneously satisfy all the restrictions in a linear program.

Steps:

1. Assign decision variables for the given products.

2. Set up the objective function and the constraints in mathematical format.
3. Plot the constraints on the xy-plane after converting the inequality sign with an equal sign.
4. Identify the feasible solution area.
5. Substitute the coordinates at the points of intersection of the feasible solution area to the
objective function.
6. Formulate your decision by choosing the ordered that gives the highest value for maximization
and the lowest value if it is minimization.

Plotting the Constraints on xy-plane:

Plot the fabrication time constraint 4x + 2y ≤ 600 and the assembly time constraint 2x + 6y ≤ 480.

Graph: (task #1)

Substituting the coordinate of the vertices of the feasible region to the objective function;

Vertex Objective Function Total Profit

400x + 300y
A (0, 80) 400(0) + 300(80) 24,000
B (132, 36) 400(132) + 300 (36) 63,600
C(150, 0) 400(150) + 300 (0) 60,000

Formulating the Decision:

Therefore, vertex B (132,36) will give the highest profit of P63,600. Our decision is to choose the one
that will give the highest value since the objective is to maximize profit. In this case, the manufacturer
can produce 132 units of stand fans and 36 units of desk fans in order to maximize profit.

Minimization Problem

Example: A dietician has learned from a nutrition book that his family needs at least 300 grams of
protein and at least 60 milligrams of iron per day for sound health. These nutrients can be obtained
from meat and vegetable products. Each pound of meat costs an average of P60 and contains an
average of 150 grams of protein and 15 grams of iron while each pound of vegetable costs P15 and has
10 grams of protein and 5 grams of iron. He wants to determine the quantities of food that meet the
nutritional requirements at least cost.

Solution:

Decision Variables:

Let x = number of pounds of meat

y = number of pounds of vegetables

LP Model:

Minimize Cost = 60x + 15y

subject to:

protein: 150x + 10y ≥ 300

iron: 15x + 5y ≥ 60

non-negativity: x≥0

y≥0

Plotting the constraints on the xy-plane:

Graph: (task #2)

Substituting the coordinate of the vertices of the feasible region to the objective function;

Vertex Objective Function Total Cost

60x + 15y
A (0,30) 60 (0) + 15(30) P450
B (1.5,7.5) 60 (1.5) + 15 (7.5) P202.5
C (4,0) 60(4) + 15 (0) P240
Decision:

Therefore the quantities of food that meet the nutritional requirements at least cost are 1.5 pounds
of meat and 7.5 pounds of vegetables.

Note: For task number 1 and 2 sketch the graph of the maximization and minimization problem.
Shade the feasible region or area and label the vertices.