05-10-2022

LINEAR PROGRAMMING: MODEL

FORMULATION & GRAPHICAL
SOLUTION & EXCEL SOLUTION
Dr. Navneet Bhatt
[email protected]

LINEAR PROGRAMMING: AN OVERVIEW

 Objectives of a business frequently are to maximize profit or minimize cost.

 Linear programming is a model that consists of linear relationships representing
a firm’s decision(s), given an objective and resource constraints.
 Steps in application:
 Identify problem as solvable by linear programming.
 Formulate a mathematical model of the unstructured problem
 Solve the model
 Implementation

Dr. Navneet Bhatt, ASM SOC, NM IMS 1

 05-10-2022

LINEAR PROGRAMMING
FORMULATION PRODUCT MIX PROBLEM

 The Clay Company is a small crafts operation run by a Native Indian tribal
council. The company employs skilled labors to produce clay bowls and mugs.

 The two primary resources used by the company are special pottery clay and
skilled labor.
 Given these limited resources, the company desires to know how many bowls
and mugs to produce each day in order to maximize profit.

LINEAR PROGRAMMING
FORMULATION PRODUCT MIX PROBLEM
• To make one unit of bowl, they
need 1 labor hr and 4 kg of clay. To
make one unit of mug, they need 2
labor hr and 3 kg of clay. There are
40 hours of labor and 120 pounds
of clay available each day for
production.

• The profit after selling these bowls

and mugs is Rs. 40 and Rs. 50 per
unit respectively.

Dr. Navneet Bhatt, ASM SOC, NM IMS 2

 05-10-2022

LINEAR PROGRAMMING
FORMULATION PRODUCT MIX PROBLEM

Step 1: Define the decision variables

How many bowls and mugs to produce

Step 2: Define the objective function

Maximize profit

Step 3: Define the constraints

The resources (clay and labor) available

LINEAR PROGRAMMING
FORMULATION PRODUCT MIX PROBLEM

Decision Variables
 The decision confronting management in this problem is how many bowls and
mugs to produce.
 The quantities to be produced can be represented symbolically as:
𝑥 = 𝑛𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑏𝑜𝑤𝑙𝑠 𝑡𝑜 𝑝𝑟𝑜𝑑𝑢𝑐𝑒
𝑥 = 𝑛𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑚𝑢𝑔𝑠 𝑡𝑜 𝑝𝑟𝑜𝑑𝑢𝑐𝑒
The Objective Function
 The objective of the company is to maximize total profit. The company’s profit is
the sum of the individual profits gained from each bowl and mug.
𝒁 = 𝟒𝟎𝒙𝟏 + 𝟓𝟎𝒙𝟐

Dr. Navneet Bhatt, ASM SOC, NM IMS 3

 05-10-2022

LINEAR PROGRAMMING
FORMULATION PRODUCT MIX PROBLEM

 Model Constraints: Labor  Model Constraints: Clay

 For each bowl produced, 1 hour of  Each bowl requires 4 pounds of clay,
labor is required. Therefore, the labor the amount of clay used daily for the
used for the production of bowls is production of bowls is 4𝑥 pounds.
1𝑥 hours.  Each mug requires 3 pounds of clay,
 Similarly, each mug requires 2 hours the amount of clay used daily for
of labor; thus, the labor used to mugs is 3𝑥 .
produce mugs every day is 2𝑥 hours.  The amount of clay available for
 The amount of labor represented by production each day is 120 pounds,
1𝑥 + 2𝑥 is limited to 40 hours per the material constraint can be
day formulated as

𝟏𝒙𝟏 + 𝟐𝒙𝟐 ≤ 𝟒𝟎 𝟒𝒙𝟏 + 𝟑𝒙𝟐 ≤ 𝟏𝟐𝟎

LINEAR PROGRAMMING
FORMULATION PRODUCT MIX PROBLEM

 A final restriction is that the number of bowls and mugs produced must be
either zero or a positive value because it is impossible to produce negative
items.
 These restrictions are referred to as nonnegativity constraints and are expressed
mathematically as

𝒙𝟏 ≥ 𝟎, 𝒙𝟐 ≥ 𝟎

Dr. Navneet Bhatt, ASM SOC, NM IMS 4

 05-10-2022

LINEAR PROGRAMMING
FORMULATION PRODUCT MIX PROBLEM

 The complete linear programming model for this problem can now be
summarized as follows:
 𝑥 = 𝑛𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑏𝑜𝑤𝑙𝑠 𝑡𝑜 𝑝𝑟𝑜𝑑𝑢𝑐𝑒
Decision Variable
 𝑥 = 𝑛𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑚𝑢𝑔𝑠 𝑡𝑜 𝑝𝑟𝑜𝑑𝑢𝑐𝑒
𝑴𝒂𝒙𝒊𝒎𝒊𝒛𝒆 𝒁 = 𝟒𝟎𝒙𝟏 + 𝟓𝟎𝒙𝟐 Objective Function

subject to
Assumptions:
1. Certainty
𝟏𝒙𝟏 + 𝟐𝒙𝟐 ≤ 𝟒𝟎 Constraints
2. Additivity 𝟒𝒙𝟏 + 𝟑𝒙𝟐 ≤ 𝟏𝟐𝟎
3. Proportionality
4. Continuity 𝒙𝟏 , 𝒙𝟐 ≥ 𝟎 Non Negativity Restrictions

 The solution of this model will result in numeric values for 𝑥 and 𝑥 that will
maximize total profit, Z.

ASSUMPTIONS OF LP MODEL

 Certainty: It is assumed that all its parameters must be known and constant.
 Additivity: The value of the objective function and the total amount of each
resource used (or supplied), must be equal to the sum of the respective individual
contribution (profit or cost) of the decision variables.
 Proportionality: The amount of each resource used (or supplied) and its
contribution to the profit (or cost) in objective function must be proportional to
the value of each decision variable.
 Continuity: The solution values of decision variables are allowed to assume
continuous values.

Dr. Navneet Bhatt, ASM SOC, NM IMS 5

 05-10-2022

LINEAR PROGRAMMING
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.
1. Decision variables are mathematical symbols that represent levels of activity.
 For example, an electrical manufacturing firm desires to produce 𝑥 radios, 𝑥 toasters, and 𝑥
clocks, where 𝑥 , 𝑥 , and 𝑥 are symbols representing unknown variable quantities of each
item.
2. 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 (e.g.,
maximize the profit or minimize the cost of producing radios).
3. The model constraints are also linear relationships of the decision variables; they represent the
restrictions placed on the firm.
 For example, only 40 hours of labor may be available to produce radios during production.

LINEAR PROGRAMMING
PRODUCT MIX PROBLEM 2

 Consider a small manufacturer making two products A and B. Two resources R1

and R2 are required to make these products.
 Each unit of Product A requires 1 unit of R1 and 3 units of R2. Each unit of
Product B requires 1 unit of R1 and 2 units of R2.
 The manufacturer has 5 units of R1 and 12 units of R2 available.
 The manufacturer also makes a profit of 6 per unit of Product A sold and 5 per
unit of Product B sold.

𝑴𝒂𝒙𝒊𝒎𝒊𝒛𝒆 𝒁 = 𝟔𝒙𝟏 + 𝟓𝒙𝟐

subject to
𝒙𝟏 + 𝒙𝟐 ≤ 𝟓
𝟑𝒙𝟏 + 𝟐𝒙𝟐 ≤ 𝟏𝟐
𝒙𝟏 , 𝒙𝟐 ≥ 𝟎

Dr. Navneet Bhatt, ASM SOC, NM IMS 6

 05-10-2022

LINEAR PROGRAMMING
IMPORTANT TERMS

 Solution: The set of values of decision variables xj ( j = 1, 2, . . ., n) that satisfy the

constraints of an LP problem is said to constitute the solution to that LP problem.
 Feasible solution: The set of values of decision variables xj ( j = 1, 2, . . ., n) that satisfy
all the constraints and non-negativity conditions of an LP problem simultaneously is
said to constitute the feasible solution to that LP problem.
 Infeasible solution: The set of values of decision variables xj ( j = 1, 2, . . ., n) that do
not satisfy all the constraints and non-negativity conditions of an LP problem
simultaneously is said to constitute the infeasible solution to that LP problem.
 Optimum feasible solution: A feasible solution that optimizes (maximizes or
minimizes) the objective function value of the given LP problem is called an optimum
feasible solution.
 Unbounded solution: A solution that can increase or decrease infinitely the value of
the objective function of the LP problem is called an unbounded solution.

LINEAR PROGRAMMING
GRAPHICAL SOLUTION

 An optimal as well as a feasible solution to an LP problem is obtained by

choosing one set of values from several possible values of decision variables x1,
x2, . . ., xn, that satisfies the given constraints simultaneously and also provides
an optimal (maximum or minimum) value of the given objective function.
 The graphical method is realistically limited to models with only two decision
variables, which can be represented on a graph of two dimensions.
 Since most real-world problems have more than two decision variables, such
problems cannot be solved graphically.
 The following two graphical solution methods (or approaches):
 Extreme point solution method
 Iso-profit (cost) function line method

Dr. Navneet Bhatt, ASM SOC, NM IMS 7

 05-10-2022

GRAPHICAL SOLUTION
PROBLEM 1
• As the objective function was increased, the last point it
touched in the feasible solution area was on the
boundary of the feasible solution area.
• The solution point is always on this boundary because
the boundary contains the points farthest from the
origin (i.e., the points corresponding to the greatest
profit).

In Maximization Case: The optimal solution

point is the last point the objective function
touches as it leaves the feasible solution area.

LINEAR PROGRAMMING
A MINIMIZATION MODEL EXAMPLE

 A farmer is preparing to plant a crop in the spring and needs to fertilize a field.
There are two brands of fertilizer to choose from, Super-gro and Crop-quick.
 Each brand yields a specific amount of nitrogen and phosphate per bag, as
follows:

 The farmer’s field requires at least 16 pounds of nitrogen and at least 24

pounds of phosphate. Super-gro costs $6 per bag, and Crop-quick costs $3.
 The farmer wants to know how many bags of each brand to purchase in order
to minimize the total cost of fertilizing.

Dr. Navneet Bhatt, ASM SOC, NM IMS 8

 05-10-2022

LINEAR PROGRAMMING
A MINIMIZATION MODEL EXAMPLE

LINEAR PROGRAMMING PROBLEM

SUMMARY OF LP MODEL FORMULATION STEPS

Step 1: Define the decision variables

How many bags of Super-gro and Crop-quick to buy
Step 2: Define the objective function
Minimize cost
Step 3: Define the constraints
The field requirements for nitrogen and phosphate

Dr. Navneet Bhatt, ASM SOC, NM IMS 9

 05-10-2022

LINEAR PROGRAMMING PROBLEM

SUMMARY OF LP MODEL FORMULATION STEPS

Decision Variables
 This problem contains two decision variables, representing the number of bags of
each brand of fertilizer to purchase:
x1 = bags of Super-gro
x2 = bags of Crop-quick
The Objective Function
 The farmer’s objective is to minimize the total cost of fertilizing. The total cost is
the sum of the individual costs of each type of fertilizer purchased. The objective
function that represents total cost is expressed as
𝑚𝑖𝑛𝑖𝑚𝑖𝑧𝑒 𝑍 = $6𝑥 + $3𝑥
𝑤ℎ𝑒𝑟𝑒,
$6𝑥 = 𝑐𝑜𝑠𝑡 𝑜𝑓 𝑏𝑎𝑔𝑠 𝑜𝑓 𝑆𝑢𝑝𝑒𝑟 − 𝑔𝑟𝑜
$3𝑥 = 𝑐𝑜𝑠𝑡 𝑜𝑓 𝑏𝑎𝑔𝑠 𝑜𝑓 𝐶𝑟𝑜𝑝 − 𝑞𝑢𝑖𝑐𝑘

LINEAR PROGRAMMING PROBLEM

SUMMARY OF LP MODEL FORMULATION STEPS

Model Constraint for nitrogen: Model Constraint for phosphate:

 The nitrogen content for the field is a  The phosphate content for the field is a
minimum requirement specifying that minimum requirement specifying that at
at least 16 pounds of nitrogen be least 24 pounds of phosphate be
deposited on the farmer’s field. deposited on the farmer’s field.
 Each bag of fertilizer contributes a  Each bag of fertilizer contributes a
number of pounds of nitrogen to the number of pounds of phosphate to the
field. field.
2𝑥 + 4𝑥 ≥ 16 𝑙𝑏. 4𝑥 + 3𝑥 ≥ 24 𝑙𝑏.
 where,  where,
2x1 = the nitrogen contribution 4x1 = the phosphate contribution
(lb.) per bag of Super-gro (lb.) per bag of Super-gro
4x2 = the nitrogen contribution 3x2 = the phosphate contribution
(lb.) per bag of Crop-quick (lb.) per bag of Crop-quick
Dr. Navneet Bhatt, ASM SOC, NM IMS 10
 05-10-2022

LINEAR PROGRAMMING PROBLEM

MODEL

 The complete model formulation for this minimization problem is

𝑴𝒊𝒏𝒊𝒎𝒊𝒛𝒆 𝒁 = $𝟔𝒙𝟏 + $𝟑𝒙𝟐

subject to
2𝒙𝟏 + 𝟒𝒙𝟐 ≥ 𝟏𝟔
𝟒𝒙𝟏 + 𝟑𝒙𝟐 ≥ 𝟐𝟒
𝒙𝟏 , 𝒙𝟐 ≥ 𝟎

The solution of this model will result in numeric values for 𝑥 and 𝑥 that will
minimize total cost, Z.

LINEAR PROGRAMMING
GRAPHICAL SOLUTIONS OF LINEAR PROGRAMMING

As the objective function edges toward the origin, the last

point it touches in the feasible solution area is A.
In other words, point A is the closest the objective
function can get to the origin without encompassing
infeasible points. Thus, it corresponds to the lowest cost
that can be attained.

The optimal solution of a minimization problem is at

the extreme point closest to the origin.

Dr. Navneet Bhatt, ASM SOC, NM IMS 11

 05-10-2022

IRREGULAR TYPES OF LINEAR PROGRAMMING PROB.

MULTIPLE OPTIMAL SOLUTIONS

 The optimal solution of any linear programming problem occurs at an extreme

point of the feasible region and that the solution is unique, i.e. no other solution
yields the same value of the objective function.
 However, in certain cases, a given LP problem may have more than one solution
yielding the same optimal objective function value. Each of such optimal solutions
is termed as alternative optimal solution.

Alternate optimal solutions are at the endpoints of the constraint line segment that the
objective function parallels.

The slope of the objective function should be the same as that of the constraint forming
the boundary of the feasible solutions region

IRREGULAR TYPES OF LINEAR PROGRAMMING PROB.

MULTIPLE OPTIMAL SOLUTIONS

 Consider the Pottery Company example, with the objective function changed from
Z = 40x1 + 50x2 to Z = 40x1 + 30x2
maximize Z = 40x1 + 30x2
subject to
x1 + 2x2 ≤ 40 hr. of labor
4x1 + 3x2 ≤ 120 lb. of clay
x 1, x 2 ≥ 0
where,
x1 = bowls produced
x2 = mugs produced

Dr. Navneet Bhatt, ASM SOC, NM IMS 12

 05-10-2022

IRREGULAR TYPES OF LINEAR PROGRAMMING PROB.

MULTIPLE OPTIMAL SOLUTIONS

 The pottery company, therefore, has several options in deciding on the number of
bowls and mugs to produce.
 Multiple optimal solutions can benefit the decision maker because the number of
decision options is enlarged.
 The multiple optimal solutions allow the decision maker greater flexibility.
 For example, in the case of Pottery Company, it may be easier to sell bowls than
mugs; thus, the solution at point C, where only bowls are produced, would be
more desirable than the solution at point B, where a mix of bowls and mugs is
produced.

Multiple optimal solutions provide greater flexibility to the decision maker

IRREGULAR TYPES OF LINEAR PROGRAMMING PROB.

AN INFEASIBLE PROBLEM

 An infeasible solution to an LP problem arises when there is no solution that

satisfies all the constraints simultaneously.

The three constraints do not

overlap to form a feasible solution
area. Because no point satisfies all
three constraints simultaneously,
there is no solution to the
problem.

An infeasible problem has no feasible solution area; every

possible solution point violates one or more constraints.
Dr. Navneet Bhatt, ASM SOC, NM IMS 13
 05-10-2022

IRREGULAR TYPES OF LINEAR PROGRAMMING PROB.

AN UNBOUNDED PROBLEM

 In some problems, the feasible solution area formed by the model constraints is
not closed.
 Sometimes an LP problem may have an infinite solution. Such a solution is
referred as an unbounded solution.
 It happens when value of certain decision variables and the value of the objective
function (maximization case) are permitted to increase infinitely, without violating
the feasibility condition.

In an unbounded problem the objective function can increase indefinitely

without reaching a maximum value.

IRREGULAR TYPES OF LINEAR PROGRAMMING PROB.

AN UNBOUNDED PROBLEM

 Example of Unbounded Solution

Dr. Navneet Bhatt, ASM SOC, NM IMS 14

 05-10-2022

IRREGULAR TYPES OF LINEAR PROGRAMMING PROB.

REDUNDANCY

 A redundant constraint is one that does not affect the feasible solution region (or
space) and thus redundancy of any constraint does not cause any difficulty in
solving an LP problem

A constraint whose removal

does not change the feasible
region.

IRREGULAR TYPES OF LINEAR PROGRAMMING PROB.

IMPORTANT POINTS

 Infeasible problems do not typically occur, but when they do, they are usually a
result of errors in defining the problem or in formulating the linear programming
model.
 Unlimited profits are not possible in the real world; an unbounded solution, like
an infeasible solution, typically reflects an error in defining the problem or in
formulating the model.

Dr. Navneet Bhatt, ASM SOC, NM IMS 15