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Transparency Masters to accompany Heizer/Render Principles of Operations Management, 5e, and Operations 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458

B-1

Outline

REQUIREMENTS OF A LINEAR PROGRAMMING PROBLEM FORMULATING LINEAR PROGRAMMING PROBLEMS

Shader Electronics example

Graphical representation of Constraints Iso-Profit Line Solution Method Corner-Point Solution Method

Transparency Masters to accompany Heizer/Render Principles of Operations Management, 5e, and Operations 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458 B-2

Outline - Continued

SENSITIVITY ANALYSIS

Sensitivity Report Change in the Resources of the Right-HandSide Values Changes in the Objective Function Coefficient

Production Mix Example Diet Problem Example Production Scheduling Example Labor Scheduling Example

2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458

Transparency Masters to accompany Heizer/Render Principles of Operations Management, 5e, and Operations

B-3

Learning Objectives

When you complete this chapter, you should be able to : Identify or Define:

Objective function Constraints Feasible region Iso-profit/iso-cost methods Corner-point solution Shadow price

Transparency Masters to accompany Heizer/Render Principles of Operations Management, 5e, and Operations

B-4

When you complete this chapter, you should be able to : Describe or Explain:

How to formulate linear models Graphical method of linear programming How to interpret sensitivity analysis

Transparency Masters to accompany Heizer/Render Principles of Operations Management, 5e, and Operations

B-5

Mathematical technique

Not computer programming

Allocates scarce resources to achieve an objective Pioneered by George Dantzig in World War II

Developed workable solution called Simplex Method in 1947

Transparency Masters to accompany Heizer/Render Principles of Operations Management, 5e, and Operations 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458 B-6

Scheduling school busses to minimize total distance traveled when carrying students Allocating police patrol units to high crime areas in order to minimize response time to 911 calls Scheduling tellers at banks to that needs are met during each hour of the day while minimizing the total cost of labor

Transparency Masters to accompany Heizer/Render Principles of Operations Management, 5e, and Operations 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458 B-7

Picking blends of raw materials in feed mills to produce finished feed combinations at minimum costs Selecting the product mix in a factory to make best use of machine- and labor-hours available while maximizing the firms profit Allocating space for a tenant mix in a new shopping mall so as to maximize revenues to the leasing company

Transparency Masters to accompany Heizer/Render Principles of Operations Management, 5e, and Operations 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458 B-8

1 Must seek to maximize or minimize some quantity (the objective function) 2 Presence of restrictions or constraints limits ability to achieve objective 3 Must be alternative courses of action from which to choose 4 Objectives and constraints must be expressible as linear equations or inequalities

Transparency Masters to accompany Heizer/Render Principles of Operations Management, 5e, and Operations 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458 B-9

Assume:

You wish to produce two products (1) Walkman AM/FM/Cassette and (2) Watch-TV Walkman takes 4 hours of electronic work and 2 hours assembly Watch-TV takes 3 hours electronic work and 1 hour assembly There are 240 hours of electronic work time and 100 hours of assembly time available Profit on a Walkman is $7; profit on a Watch-TV $5

Transparency Masters to accompany Heizer/Render Principles of Operations Management, 5e, and Operations

B-10

Let:

X1 = number of Walkmans X2 = number of Watch-TVs

Then:

4X1 + 3X2 240 electronics constraint

Transparency Masters to accompany Heizer/Render Principles of Operations Management, 5e, and Operations 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458 B-11

Draw graph with vertical & horizontal axes (1st quadrant only) Plot constraints as lines, then as planes

Use (X1,0), (0,X2) for line

Corner point method Iso-profit line method

Transparency Masters to accompany Heizer/Render Principles of Operations Management, 5e, and Operations 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458 B-12

Hours Required to Produce 1 Unit X1 X2 Walkmans Watch-TVs 4 3 2 $7 1 $5

Constraints: 4x1 + 3x2 240 (Hours of Electronic Time) 2x1 + 1x2 100 (Hours of Assembly Time) Objective: Maximize: 7x1 + 5x2

Transparency Masters to accompany Heizer/Render Principles of Operations Management, 5e, and Operations Management, 7e B-13 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458

120 Number of Watch-TVs (X2)

100

80 60

40 20 0

0 10 20 30 40 50 60 70 80 Number of Walkmans (X1)

Transparency Masters to accompany Heizer/Render Principles of Operations Management, 5e, and Operations Management, 7e

B-14

120

100 80 60 40 20 0 0 10 20 30 40 50 60

Feasible Region

70

80

Transparency Masters to accompany Heizer/Render Principles of Operations Management, 5e, and Operations Management, 7e B-15 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458

120 100

80 60 40 20 0 0 10 20 30 40 50 60

Iso-profit line

70

80

Transparency Masters to accompany Heizer/Render Principles of Operations Management, 5e, and Operations Management, 7e B-16 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458

Iso-profit line

120 100 80 60 40 20 0

10

20

30

40

50

60

70

80

Transparency Masters to accompany Heizer/Render Principles of Operations Management, 5e, and Operations Management, 7e B-17 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458

Iso-profit line

120 100 80 60 40 20 0

Possible Corner Point Solution Optimal solution

10

20

30

40

50

60

70

80

Transparency Masters to accompany Heizer/Render Principles of Operations Management, 5e, and Operations Management, 7e B-18 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458

Iso-profit line

120 100 80

X1 = 30 X2 = 40

Electronics (Constraint A) Assembly (Constraint B) Possible Corner Point Solution Optimal solution

60 40

20 0

10

20

30

40

50

60

70

80

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B-19 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458

Formulation of Solution

Decision variables Objective

X1 = tons of BW chemical produced X2 = tons of color chemical produced Minimize Z = 2500X1 + 3000X2 X1 30 (BW); X2 20 (Color) X1 + X2 60 (Total tonnage) X1 0; X2 0 (Non-negativity)

Constraints

B-20

1. Choose the variable with the greatest positive Cj- Zj to enter the solution 2. Determine the row to be replaced by selecting that one with the smallest (non-negative) quantity-to-pivot column ratio 3. Calculate the new values for the pivot row 4. Calculate the new values for the other row(s) 5. Calculate the Cj and Cj-Zj values for this tableau. If there are any Cj-Zj numbers greater than zero, return to step 1.

B-21

1 Choose the variable with the greatest negative Cj- Zj to enter the solution 2 Determine the row to be replaced by selecting that one with the smallest (non-negative) quantity-to-pivot column ratio 3 Calculate the new values for the pivot row 4 Calculate the new values for the other row(s) 5 Calculate the Cj and Cj-Zj values for this tableau. If there are any Cj-Zj numbers less than zero, return to step 1.

B-22

Sensitivity Analysis

Projects how much a solution might change if there were changes in variables or input data. Shadow price (dual) - value of one additional unit of a resource

B-23

Minimization Example

Youre an analyst for a division of Kodak, which makes BW & color chemicals. At least 30 tons of BW and at least 20 tons of color must be made each month. The total chemicals made must be at least 60 tons. How many tons of each chemical should be made to minimize costs?

BW: $2,500 manufacturing cost per month

2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458

Transparency Masters to accompany Heizer/Render Principles of Operations Management, 5e, and Operations Management, 7e

B-24

80

X2

Graphical Solution

BW Total

Find values for X1 + X2 60.

60

X1 30, X2 20.

40

X1

Feasible Region

Color X1 80

2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458

B-25

80 Tons, Color Chemical

BW

Total

60

40

20 0 0

Transparency Masters to accompany Heizer/Render Principles of Operations Management, 5e, and Operations Management, 7e

A

20 40 Tons, BW Chemical

B-26

60

80

2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458

X2

100 80 60

Original assembly constraint Original Solution Assembly constraint increased by 10

40 20

0

Feasible Region

0 20

Soln Soln

40

60

X1

B-27

X2

100 80 60

New Solution Original assembly constraint Original Solution

Soln

Assembly constraint decreased by 10

40 20

0

Soln

0

Transparency Masters to accompany Heizer/Render Principles of Operations Management, 5e, and Operations

20

40

60

X1

B-28

A Minimization Problem

60 50 40 30 20 10 0 0 10 20 30 40 50 60

B-29 Transparency Masters to accompany Heizer/Render Principles of Operations Management, 5e, and Operations

x1 + x2 = 60

Feasible region

b

X1 = 30

X2 = 20

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