MODULE 1: LINEAR PROGRAMMING Step 2: Tabulate the data about the facts (if

necessary)
Linear Programming
▪ Is a method of dealing with decision
problems that can be expressed as
constrained linear models. The primary
objectives of all linear programming models
are certainty of the parameters and linearity
of the objective function and all constraints.
▪ Is a mathematical technique for finding the
best uses of an organization’s resources. Step 3: Formulate the objective function and
▪ Graphical Solution Method is a two- constraints by restating the information in
dimensional geometric analysis of Linear mathematical form.
Programming problems. The objective function is:
PART 1: Maximization Problem Maximize: Zj = 1200x + 1600y
The constraints are:
Sample Problem: Structural
A tailor has the following materials available: 18 3x + 2y ≤ 18 → Cotton
square meter cotton, 20 square meter silk, 5 2x + 4y ≤ 20 → Silk
square meter wool. A gown requires the x≤5 → Wool
following: 3 square meters cotton, 2 square meter
silk and 1 square meter wool. A suit requires the Non-negativity
following: 2 square meter cotton, 4 square meter x, y ≥ 0
silk. If a gown sells for P1,200 and a suit for
P1,600, how many of each garment should the Step 4: Plot the constraints in the problem on a
tailor make to obtain the maximum amount of graph, with gowns (x) shown on the horizontal
money? axis and suits (y) shown in the vertical axis,
using the intercept rule.
o Objective Function is an expression, which
shows the relationship between the variables 3x + 2y ≤ 18 2x + 4y ≤ 20 x≤5
in the problem and the firm’s goal 3x + 2y = 18 2x + 4y = 20 x=5
o Structural Constraint, also called explicit
constraints, is a limit on the availability of
resources
o Non-Negativity Constraint, also called
implicit constraints, is a constraint that
restricts all variables to zero or positive.
Step 1: Represent the unknown in the problem.
Let: x be the number of gowns, and
y be the number of suits.
Step 5: Identify the area that satisfies the 3x + 2(3) = 18
constraints. The area that satisfies the constraints 3x + 6 = 18
is called the feasible region. 3x = 18 – 6
3x = 12
o Feasible Region is the set of combination of
x = 4 (4,3)
values for the decision variables that satisfy
the non-negativity conditions and all the Solving the intersection of the 1st and 3rd equation
constraints simultaneously that is, the First Equation 3x + 2y = 18
allowable decision. Third Equation x=5
o Extreme Point is the corner of the feasible
Substitute the value of x in the first constraint.
region. If a Linear Programming problem has
a solution, there is always at least one 3 (5) + 2y = 18
extreme point solution. 15 + 2y = 18
2y = 18
Step 6: Solve the intersection of the lines, which
2y = 18 – 5
satisfies the feasible solution simultaneously.
2y = 3
y = 1.5 (5, 1.5)
Step 7: Substitute the coordinates at the extreme
points of the feasible region in the objective
function.
Objective Function: 1200x + 1600y
Extreme Points:
(0, 5)→ 1200(0) +1600(5) = 0 + 8000 = 8000
(5, 0)→1200(5) +1600(0)= 6000 + 0 = 6000
(4, 3)→1200(4) +1600(3) = 4800 + 4800 = 9600
Solving the intersection of the first and second (5,1.5)→1200(5) + 1600(1.5) = 6000 +2400 = 8400
equation using elimination method.
First equation : 3x + 2y = 18 Optimal Solution is a combination of decision
Second equation: 2x + 4y = 20 variable amounts that yields the best possible value
of the objective function and satisfies all the
Find the Least Common Multiple (LCM) of x in constraints. There may be multiple combinations of
order to eliminate the variable x. decision variables that yield the same best value of
the objective function.
2 ( 3x + 2y = 18) → 6x + 4y = 36
3 ( 2x + 4y = 20) → (-) 6x + 12y = 60 Step 8: Formulate the decision. Therefore, the
0x – 8y = -24 coordinate (4,3) will give the highest value of
– 8y = -24 P9,600. The decision s to create 4 gowns and 3 suits
y=3 in order to maximize profit.
Decision:
Step 6: Substitute the value of y in the first
equation or the second equation to obtain the x = 4 gowns y = 3 suits Zj = Php9,600
intersection of the two.
Problem A. Delphi Inc. produces a standard golf
bag and a deluxe golf bag on a weekly basis. Each
golf bag requires time for cutting and dyeing and
time for sewing and finishing as shown in the
table below:
Step 1: Identify the unknown based on the given
problem:
Let S be the number of standard bags, and
Let D be the number of deluxe bags.
Step 2: Present the facts using a table.

Step 3. Formulate the objective function and

constraints by restating the information in
Mathematical form
Objective Function: Zj = 12S + 14D
Structural Constraints:
Step 6: Solve the intersection of the lines, which
0.50S + D < 280 (Cutting and Dyeing)
satisfies the feasible solution simultaneously
S + 0.70D < 350 (Sewing and Finishing)
Non Negativity:
S, D > 0
Step 4: Plot the constraints in the problem on a
graph, with gowns (x) shown on the horizontal
axis and suits (y) shown in the vertical axis,
using the intercept rule.
Step 8: Formulate the decision. Therefore, the
coordinate (236.92, 161.54) will be the highest
value of $5,104.60.
S = 236.92 standard bags
D = 161.54 deluxe bags
Zj = $5,104.60
Step 3: Formulate the objective function and
constraints by restating the information in
mathematical form.
The objective function is
Maximize: Zj = 80x + 50y
The constraints are:
Structural
PART 2: Minimization Problem 3x + y ≥ 6 → antibiotic 1
x+ y≥4 → antibiotic 2
Sample Problem:
2x + 6y ≥ 12 → antibiotic 3
A Drug Company produces a drug from two Non-negativity
ingredients. Each ingredient contains the same x, y ≥ 0
three antibiotics in different proportions. Each
Step 4: Plot the constraints in the problem on a
ingredient 1 produced results in P80 in cost; each
graph, with ingredient 1 (x) shown on the
ingredient 2 results in P50 in cost. The
horizontal axis and ingredient 2 (y) shown in the
production of the antibiotic is dependent on the
vertical axis, using the intercept rule.
availability of limited resources. The resource
requirements for the production are as follows.

The company wants to determine the number of

grams of each ingredient 1 and 2 that must go in
to the drug in order to meet the antibiotic’s
minimum requirements at the minimum cost.
Step 1: Represent the unknown in the problem.
Let: x be the quantity of ingredient 1, and
Step 5: Identify the area that satisfies the
y be the quantity of ingredient 2.
constraints. The area is called the feasible region
Step 2: Tabulate the data about the facts (if
necessary)
 Substitute the value of x in the first constraint.
x+1=4
x = 4 -1
x = 3 (3,1)

Step 6: Solve the intersection of the lines, which

satisfies the feasible solution simultaneous.
Solving the intersection of the first and second
equation using elimination method.
First equation: 3x + y = 6
Second equation: x + y = 4
Find the Least Common Multiple (LCM) of x in
order to eliminate the variable x.
1 ( 3x + y = 6) → 3x + y = 6 Step 7: Substitute the coordinates at the extreme
3 ( x + y = 4) → (-) 3x + 3y = 12 points of the feasible region in the objective
0x – 2y = -6 function.
– 2y = -6 Objective Function: 80x + 50y
y=3 Extreme Points:
Step 6: Substitute the value of y in the first (0, 6) → 80( 0 ) + 50(6) = 0 + 300 = 300
equation or the second equation to obtain the (6, 0) →80( 6 ) + 50(0) = 480 + 0 = 480
intersection of the two. (1, 3) →80( 1 ) + 50(3) = 80 + 150 = 230
(3, 1) →80( 3 ) + 50(1) = 240 + 50 = 290
3x + 2 = 6
3x = 6 – 3 Step 8: Formulate the decision. Therefore, the
3x = 3 coordinate (1, 3) will give the lowest value of
x = 1 (1,3) P230. The decision is to mix 1 unit of ingredient
Solving the intersection of the 1st and 3rd 1 and 3 units of ingredient 2 in order minimize
equation cost.
First Equation: x + y = 4 Decision:
Second Equation: 2x + 6y = 12 x = 1 ingredient y = 3 ingredient 2 Zj = Php230
Find the Least Common Multiple (LCM) of x in
order to eliminate the variable x.
2 (x + y = 4) → 2x + 2y = 8
1 (2x + 6y = 12) → (-) 2x + 6y = 12
0x – 4y = -4
– 4y = -4
y=1
 MODULE 2: TRANSPORTATION MODEL The shipping cost per desktop computer from
each distributor to each university are as follows:
o Transportation Model is a linear
programming problem in which a product is to
be transported from a number of sources to a
o number of destinations at the minimum cost or
maximum profit.
o Destination is a point of demand in a
transportation problem and Origin is the
source or supply location in a transportation Step 1: Determine the difference of the lowest
problem. and second lowest cost alternatives for each row
o Unused Squares are squares, which represent or column. Identify the row or column with
routes where no quantity is shipped between a largest opportunity cost.
source destination while used squares in the
transportation problem are called Stone
Squares.
Vogel’s Approximation Method (VAM)
o An algorithm that finds an initial feasible
solution to a transportation problem by
considering the “penalty cost” of not using
the cheapest available route.
o Opportunity Cost is the cost of the
opportunities that are sacrificed in order to Step 2: Allocate 50 units of cell X3B that
take a certain action. contains the lowest cost in row 3 and cross out
row 3. Compute for the next opportunity cost.
Sample Problem:
The Epsilon Computers Company sells desktop
computers to universities in the university belt,
and ship them from three distribution
warehouses. The firm is able to supply the
following numbers of desktop computers to the
universities by the beginning of the academic
year:

Step 3: Then identify the difference of the

lowest and second lowest cost alternatives for
each remaining row or column. Identify the row
Universities have ordered desktop computers that or column with largest opportunity cost.
must be delivered and installed by the beginning
of the academic year:
Step 4: Allocate 30 units in cell X1B that Step 7: In the previous table the lowest cost is
contains the lowest cost in column B and cross in X1C. Allocate 20 units in X1C and then
out column B. Compute for the next opportunity allocate 200 units in X2C.
cost.

IMPROVEMENT INDICES
Step 5: Again select the largest difference
between the lowest and second lowest cost +A2-A1+C1-C2 = 10-7+9-10 = 2
alternatives for each row or column. Identify the
+A3-A1+B1-B3 = 6-7+5-3 = 1
row or column with the largest opportunity cost.
+B2-B1+C1-C2 = 12-5+9-10 = 6
+C3-B3+B1-C1 = 14-3+5-9 = 7
A1 = 100*7 = 700
B1 = 30*5 = 150
C1 = 20*9 = 180
C2 = 200*10 = 2000
B3 = 50*3 = 150
Total costs 3180
Step 6: Allocate 120 units in cell X1A that Improvement Indices
contains the lowest cost in column A and cross
o Form the closed path (square, rectangle,
out column A. If there are only two unused
ribbon, or L shapes)
squares, select the lowest cost and allocate the
o Starts with an empty cell (unused square) and the
necessary amount.
rest are filled cells (stone squares); the ending cell
should be aligned with the starting cell
o Path starts with positive (+), negative (-), positive o Reduce the appropriate supply and demand
(+), and ends with negative (-) by the amount allocated in third step.
o Determine the net change of each closed path o Remove any rows with zero available supply
formed and columns with zero unfilled demand form
o For cost minimization, net change should all be further consideration.
positive o Return to first step.
o If at least one has negative value, then do another
round of iteration (tableu); retrace the closed path
with negative net change; reallocate the units
assigned to it - add the lowest unit to the empty cell,
deduct it to the 2nd cell, add it to the 3rd cell, and
deduct it to the 4th or last cell, and copy how the
remaining units were allocated in your initial tableu;
then do round/s of improvement indices, retracing,
and tableu until all closed paths show positive net
change
o For profit maximization, net change of closed paths
should all be negative values
o If at least one has positive value, do another round/s
of iteration (tableu) and improvement indices until
all closed paths show negative values
Total Costs - Once optimal solution have been
determined, calculate the total costs
Steps in Vogel’s Approximation Method
o For each row with an available supply and
each column with an unfilled demand,
calculate an opportunity/penalty cost by
subtracting the smallest entry form the
second smallest entry for a minimization
problem. For maximization calculate an
opportunity cost by getting the difference
between the highest and second highest
entry.
o Identify the row or column with largest
opportunity/penalty cost for minimization or
opportunity/penalty profit maximization.
(Ties may be broken arbitrarily.)
o Allocate the maximum amount possible to
the available route with the lowest cost for
minimization or highest revenue for
maximization in the row or column selected
in second step.