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Technical Note 2
Optimizing the Use of Resources with Linear Programming
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The McGraw-Hill Companies, Inc., 2006
OBJECTIVES
Linear A
Programming Basics
Maximization Problem
Minimization Problem
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used in problems where we have limited resources or constrained resources that we wish to allocate model must have an explicit objective (function)
Generally maximizing profit or minimizing costs subject to resourcebased, or other, constraints
The
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Common Applications
Aggregate sales and operations planning Service/manufacturing productivity analysis Product planning Product routing Vehicle/crew scheduling Process control Inventory control
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Limited Resources to allocate Linearity is a requirement of the model in both objective function and constraints Homogeneity of products produced (i.e., products must the identical) and all hours of labor used are assumed equally productive Divisibility assumes products and resources divisible (i.e., permit fractional values if need be)
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Objective Function
Maximize (or Minimize) Z = C1X1 + C2X2 + ... + CnXn
Cj is
a constant that describes the rate of contribution to costs or profit of (Xj) units being produced is the total cost or profit from the given number of units being produced
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Constraints
A11X1 + A12X2 + ... + A1nXnB1 A21X1 + A22X2 + ... + A2nXn B2
: :
Aij are resource requirements for each of the related (Xj) decision variables Bi are the available resource requirements Note that the direction of the inequalities can be all or a combination of , , or = linear mathematical expressions
Non-Negativity Requirement
X1,X2, , Xn 0
All
linear programming model formulations require their decision variables to be non-negative While these non-negativity requirements take the form of a constraint, they are considered a mathematical requirement to complete the formulation of an LP model
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Maximize Z = 400X1 + 800 X 2 Where Z = the monthly profit from Max and Multimax X1 = the number of Max produced each month X 2 = the number of Multimax produced each month
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Constraints
Given the resource information below from the problem:
Max (X1) Required Time/Unit 3 1 Multimax (X2) Required Time/Unit 5 4 Available Time/Month 5,000 3,000
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Fab Assy
Note that the inequalities are less-than-or-equal since the time resources represent the total available resources for production
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Solution
Produce 715 Max and 571 Multimax per month for a profit of $742,800
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Hasbeen Gentro
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Constraints
Given the demand information below from the problem:
Hasbeen (X1) Tons 1.5 1 Gentro (X2) Tons 1 3 Min Tons 6 10
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Zinc Lead
We can now state the constraints and non-negativity requirements as: Note that the inequalities are 1.5X1 + X2 > 6(Zinc/tons) greater-than-orequal since the X1 + 3X2 > 10(Lead/tons) demand information represents the X1, X2 > 0(Non-negativity) minimum necessary for production.
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Solution
Order 2.29 truckloads from Hasbeen and 2.57 truckloads from Gentro for daily delivery. The daily cost will be $80,610.
Note: Do you see why in this solution that integer linear programming methodologies can have useful applications in industry?
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