Chapter 4:

Linear Programming
Presented by Paul Moore
What is Linear Programming?
What is Linear Programming?
Say you own a 500 square acre farm. On
this farm you can grow wheat, barley, corn or
some combination of the 3. You have a limited
supply of fertilizer and pesticide, both of which
are needed (in different quantities) for each crop
grown. Let’s say wheat sells at $7 a bushel,
barley is $3, and corn is $3.50.

So, how many of each crop should

you grow to maximize your profit?
 What is Linear Programming?
A mathematical tool for
maximizing or minimizing a
quantity (usually profit or cost
of production), subject to
certain constraints.

Of all computations and

decisions made by
management in business, 50-
90% of those involve linear
programming.
 Brief Outline
• Short background to Linear Programming as a field of
mathematics
• Mixture Problems & Feasible Regions
• Optimal Production (Skateboards & Dolls)
– Corner Point Principle
– Optimal Production Policy
– Simplex Method
– Tableaus (Transportation Problems)
– Northwest Corner Algorithm
• Various Applications
• Discussion
 Background on
Linear Programming
• As a field of mathematics, LP is still a small child (in
math years)
• Developed by Leonid Kantorovich
around the time of WWII
• Further developed over following
decades
• Today, easily the most commonly used
field for optimization
• Economics, business management,
transportation, technology, planning, production, …

the list goes on…

 Mixture Problems
Problem where a limited
number of resources Production of…
are used to produce a
combination of
• Pretty much anything
products in a fashion
that maximizes profit
from the sale of these • Skateboards & Dolls
products
 Mixture Problems
• Goal: to find a feasible solution that maximizes
profit
• …what will our solution look like?

• Mixture Problems consist of…

1. Resources
2. Products
3. Recipes
4. Profit
5. Objective
 Mixture Problems
• An Optimal Production Policy, giving optimal
number of each product to produce where:
1. It is possible to produce this number of products &
2. This policy gives yields maximum profit
 Setting Up Mixture Problems
Example 1: Toy manufacturer can produce
skateboards and dolls. Both require the
precious resource of plastic, of which there are
60 units available. Skateboards take five units
of plastic and make $1 profit. Dolls take two
units of plastic and make $0.55 profit.
What is the number of dolls and skateboards the
company can produce to maximize profit?
 Setting Up Mixture Problems
First identify components of the problem:
1. Resources – Plastic (60 available)
2. Products – Skateboards & Dolls
3. Recipes – Skateboards (5 units), Dolls (2 units)
4. Profits – Skateboards ($1.00), Dolls $0.55)
5. Objective – Maximize profit

Second, make a mixture chart:

 Translate Mixture Chart into Formulas

2 Groups of Equations:
- Objective Equation (profit equation)
- Constraints (minimum constraints, resource constraints…)

Objective Equation - total profit given number of units produced

P = 1x + 0.55y
Constraints – usually inequalities
5x + 2y ≤ 60

With these, create Feasible Region

 Mixture Problems
Feasible Region – region which consists of all possible
solution choices for a particular problem

Using the constraint equation we get the following graph:

Constraints:
5x + 2y ≤ 60
 Corner Point Principle
Which point is optimal?
• Any point in feasible region will ( 0, 30 )

satisfy constraint equation, but

which will maximize profit
equation?

Corner Point Principle

In LP problem, the maximal value ( 12, 0 )

for profit always corresponds to a ( 0, 0 )

corner point on feasible region

 Corner Point Principle
Plug in corner points to profit
formula:
( 0, 30 )
Point Calculation of Profit Formula
$1.00x + $0.55y = P
(0, 0) $1.00 (0) + $0.55 (0) = $0.00

(0, 30) $1.00 (0) + $0.55 (30) = $16.50

(12, 0) $1.00 (12) + $0.55 (0) = $12.00

Corner point (0,30) is the optimal point ( 12, 0 )

( 0, 0 )
Therefore the optimal solution would be
to produce 0 skateboards and 30 dolls
 Quick Practice
A clothing company has 100 yards of cloth and produces shirts (x units) and
vests (y units). Shirts require 10 units and have profit value of $5, while
vests require 4 units and have profit value of $4.
What is the optimal production solution?
Step 1 & 2: Steps 3 & 4:
Identify Components & Mixture Chart Feasible Region & Corner Points
1. Resources – Cloth (100) ( 0, 25 )
2. Products – Shirts & Vests
3. Recipes – Shirts (10), Vests (4)
4. Profits – Shirts ($5), Vests ($4)
5. Objective – Maximize profit

( 10, 0 )

( 0, 0 )

10x + 4y ≤ 100 Point Calculation of Profit Formula

$5.00x + $4.00y = P
$5.00x + $4.00y = P
(0, 0) $5.00 (0) + $4.00 (0) = $0.00

(0, 25) $5.00 (0) + $4.00 (25) = $100.00

(10, 0) $5.00 (10) + $4.00(0) = $50.00

 Quick Practice
What if the company decides to also put a
“non-zero constraint” on all production?
Must produce at least 3 shirts and 10 vests.
Constraints become:
10x + 4y ≤ 100 …
x≥3
y ≥ 10

Feasible Region becomes: Corner Points:

Point Calculation of Profit Formula
$5.00x + $4.00y = P

(3, 10) $5.00 (3) + $4.00 (10) = $55.00

( 3, 17.5 ) (3, 17.5) $5.00 (3) + $4.00 (17) = $83.00

(6, 10) $5.00 (6) + $4.00(10) = $70.00

( 6, 10 )

( 3, 10 )

Great Job!
 Simplex Method
• Real world problems not as simple as previous examples
• Some involve millions of “corner points” in feasible region
– Would take fast computers days to compute.

• Simplex method – developed to help solve large, real

world linear programming problems
– Ant crawling on edges of feasible region, from corner to corner
– Ant would do better if given temperature range (hotter, colder)

• Start with any point and evaluate profit at neighboring

points. Move to neighbor with higher profit and repeat.
 Transportation Problem
Example:
Supermarket stores get bread delivered from a bakery
chain. Each store needs a certain amount per day, and
the bakery only ever bakes the exact number needed.
There are also shipping costs involved in delivering
bread to stores.

How many breads should be shipped from each bakery

to each store in order to minimize cost?
 Transportation Problem
Store (Demand)
S1 (3) S2 (7) S3 (1)
Bakery (Supply)

B1 (8) 8 9 3
B2 (1) 15 1 12
B3 (2) 1 3 5

The above table shows the various shipping costs from

bakeries (Bi) to stores (Sk)

To find the optimal solution we first create a Tableau

Tableau – special table showing costs and rim conditions

(supply & demand) for transportation problems
 Transportation Problem
Stores
These numbers represents
Breads made The shipping cost to each store
S1 S2 S3
(supply):
8 9 3
B1 8
Bakeries

B2 15 1 12 1 Rim Conditions

1 3 5
B3 2

Breads needed 3 7 1 11 Equal Totals from both

(demand): sets of rim conditions

Number of breads sent

from B3 to S3
Rim Conditions
 Transportation Problem
How to Solve the Problem using a Tableau
• Guess work…obviously not reliable, takes longer
• Northwest Corner Rule

Northwest Corner Rule

1. Locate the highest and leftmost cell in table that isn’t filled in.
Choose the smallest rim value, s, for this cell and fill cell with it.
2. Reduce other rim value by s, and eliminate row or column that
had rim value s. If more cells remain, repeat 1-2.
3. When there is a sole cell left, both its rim values will be the
same, and this will be the value for the cell.
 Transportation Problem
Initial Tableau:
Stores
1. Locate highest,
S1 S2 S3 Breads made
leftmost cell and fill (supply):
with smallest rim 8 9 3
value B1 8
5
3
2. Decrement other rim
Bakeries

B2 15 1 12
value by s 1
3. Eliminate row or
1 3 5
column associated B3 2
with s
Breads needed 3 7 1 11
(demand):
 Transportation Problem
New Tableau:
Stores
1. Locate highest,
S2 S3 Breads made
leftmost cell and fill (supply):
with smallest rim 9 3
value B1 5
2. Decrement other rim Bakeries
B2 1 12
value by s 1
3. Eliminate row or
3 5
column associated B3 2
with s
4. Repeat Breads needed 7 1 11
(demand):
 Transportation Problem
Tableau:
Stores
1. Locate highest,
S2 S3 Breads made
leftmost cell and fill (supply):
with smallest rim 9 3
value B1 5
5
2. Decrement other rim Bakeries
B2 1 12
value by s 1
3. Eliminate row or
3 5
column associated B3 2
with s
4. Repeat Breads needed 2
7 1 11
(demand):
 Transportation Problem
Tableau:
Stores
1. Locate highest,
S2 S3 Breads made
leftmost cell and fill (supply):
with smallest rim 1 12
value B2
1 1
2. Decrement other rim Bakeries 3 5
value by s B3
2
3. Eliminate row or
column associated Breads needed 11
(demand): 2
1 1
with s
4. Repeat
 Transportation Problem
Tableau:
Stores
1. Locate highest, S2 S3 Breads made
leftmost cell and fill (supply):
with smallest rim

Bakeries
B3 3 5
value 1 2
1
2. Decrement other rim
value by s Breads needed 11
(demand): 1 1
3. Eliminate row or
column associated
with s
4. Repeat
 Transportation Problem
Tableau:
Store
s
1. Locate highest,
S3 Breads made
leftmost cell and fill (supply):
with smallest rim

Bakeries
B3 5
value 1 1
2. Decrement other rim
value by s 1
1
Breads needed 11
3. Eliminate row or (demand):
column associated
with s
4. Repeat
Transportation Problem
Final Tableau:
Stores

S1 S2 S3 Breads made
(supply):
8 9 3
B1 8
3 5
Bakeries

B2 15 1 12
1 1

1 3 5
B3 2
1 1

Breads needed 3 7 1 11
(demand):
Problems with Northwest Corner Rule?
• Only gives a feasible solution, not an optimal solution

• Does not take shipping accounts into account

– In long run, this will not produce the optimal solution, because
these costs play an important role in optimal cost

• How to get Optimal Solution?

– Alter the feasible solution using indicator values
 Improving Feasible Solution
• Indicator Value – for a cell (not filled in) is the cost
change associated with increasing or decreasing the
amounts shipped in a circuit of cells starting at this empty
cell.
Stores
One example would be the
S1 S2 S3 Breads made indicator value of (B1, S3). By
(supply): increasing (B1, S3), we must
8 9 3 decrease (B1, S2), decrease
B1 8
3 5 (B3, S3), and increase (B3, S2).
- +
Bakeries

B2 15 1 12
1 1 So the cost of this move is:
+3–9+3–5=-8
1 3 5
B3 2
1 1 Want moves to have negative
+ -
value (decreasing cost)
Breads needed 3 7 1 11
(demand):
 Improving Feasible Solution
• Indicator Value – for a cell (not filled in) is the cost
change associated with increasing or decreasing the
amounts shipped in a circuit of cells starting at this empty
cell.
Stores
One example would be the
S1 S2 S3 Breads made indicator value of (B1, S3). By
(supply): increasing (B1, S3), we must
8 9 3 decrease (B1, S2), decrease
B1 8
3 4 1 (B3, S3), and increase (B3, S2).
Bakeries

B2 15 1 12
1 1 So the cost of this move is:
+3–9+3–5=-8
1 3 5
B3 2
2 Want moves to have negative
value (decreasing cost)
Breads needed 3 7 1 11
(demand):
 Improving Feasible Solution
Stores
Next, we can look cell (B3, S1)
S1 S2 S3 Breads made and its indicator value:
(supply):
8 9 3
B1 8
3 4 1 + 1 – 3 + 9 – 8 = -1
- +
Bakeries

B2 15 1 12
1 A negative value, so the move
1
should be performed.
1 3 5
B3 2
2 Since the minimum of the filled
+ -
numbers in the cell with a
Breads needed 3 7 1 11 negative label is 2, then we can
(demand): make this move twice
 Improving Feasible Solution
Stores

S1 S2 S3 Breads made
By examining all other indicator
(supply):
values for remaining empty
8 9 3
B1 8 cells, we find that they all yield
1 6 1
a positive cost change.
Bakeries

B2 15 1 12
1 1 This means we have found an
optimal solution.
1 3 5
B3 2
2

Breads needed 3 7 1 11
(demand):
 Applications
• Aviation fuel
• Store management
• Planning airline routes
• Scheduling work crews
• Energy efficiency
• Telecommunications
• Chex Mix
 Discussion
• Any other applications of linear
programming?

• HW: 8a, 19, 54a (8th Edition)