Linear Programming (LP)

Seung-Kuk Paik, Ph.D.

Systems and Operations Management
CSU, Northridge

Linear Programming (LP)

We all face decision about how to use limited
resources, such as time, money, etc.
LP is one field of management science that finds the
optimal, or most efficient, way of using limited
resources to achieve the objectives of an individual of
a business.
Many applications

Manufacturing
Staffing
Marketing
Financial Planning

Characteristics of
LP Problems
Decision variables (x)
variables to be solved; often represents choices available to
decision makers in terms of amounts of either inputs or outputs

Objective function
generally maximizing profit or minimizing costs

Constraints
restrictions that limit the degree to which we can pursue our
objective

General Form of a
Linear Programming (LP)
MAX (or MIN): c1X1 + c2X2 + + cnXn
Subject to:

a11X1 + a12X2 + + a1nXn <= b1

:
ak1X1 + ak2X2 + + aknXn >=bk
:
am1X1 + am2X2 + + amnXn = bm

Decision Variables &

Objective Function
Maximize (or Minimize) Z = C1X1 + C2X2 + ... + CnXn

Cj is a constant that describes the rate of

contribution to costs or profit of units being
produced (Xj), which are the decision
variables.
Z is the total cost or profit from the given
number of units being produced.

Constraints
A11X1 + A12X2 + ... + A1nXnB1

A21X1 + A22X2 + ... + A2nXn B2

:
:

AM1X1 + AM2X2 + ... + AMnXn=BM

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 Constraint
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.

5 Steps In Formulating LP Models

1. Understand the problem.
2. Identify the decision variables.
3. State the objective function as a linear
combination of the decision variables.
4. State the constraints as linear combinations of the
decision variables.
5. Identify any upper or lower bounds on the
decision variables.

Maximization Problem Example

LawnGrow Manufacturing Company must determine the mix of
its commercial riding mower products to be produced next year.
The company produces two product lines, the Max and the
Multimax. The average profit is $400 for each Max and $800 for
each Multimax. Fabrication and assembly are limited
resources. There is a maximum of 5,000 hours of fabrication
capacity available per month (Each Max requires 3 hours and
each Multimax requires 5 hours). There is a maximum of 3,000
hours of assembly capacity available per month (Each Max
requires 1 hour and each Multimax requires 4 hours).
Question: How many of each riding mower should be
produced each month in order to maximize profit?

Objective Function
If we define the Max and Multimax products as the two
decision variables X1 and X2, and since we want to maximize
profit, we can state the objective function as follows:

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

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

Fab
Assy

We can now state the constraints and non-negativity requirement:

3X1 + 5X 2 5,000

(Fab.)

X1 + 4X 2 3,000

(Assy.)

X1 , X 2

(Non - negativity)

Solving LP Problems:
A Graphical Approach
The constraints of an LP problem defines its
feasible region.
The best point in the feasible region is the
optimal solution to the problem.
For LP problems with 2 variables, it is easy
to plot the feasible region and find the
optimal solution.

Graphical Solution
X2

1,000

3X1 + 5X2 5000

750

Feasible Region:
Area that satisfies all of
the specified constraints.
It represents the set of all
feasible combinations of
decision variables.

X1 + 4X2 3000
1,666.67

3,000
X1

Graphical Solution
Corner-point principle
An optimal solution will lie at a corner point, or
extreme point, of the feasible region

It is necessary to find only the values of the

decision variables at each corner
Optimal solution will lie at one (or more) of
them.

Graphical Solution
X2

(0, 1,000)

3X1 + 5X2 5000

(0, 750)
(714.28, 571.43)

X1 + 4X2 3000
(1,666.67, 0)

(3,000, 0)
X1

Optimal Solution
Four possible points
(0, 0)
-----> profit: $0
(1, 666.67, 0) -----> profit: $666,666.6
(0, 750)
-----> profit: $600,000.0
(714.28, 571.43) -----> profit: $742,857.1
Produce 714 Max and 571 Multimax per month
for a profit of $742,400.

Excel Solver

Cells B6 and C6 represent the

decision variables X1 and X2 in our
model.

Excel Solver Objective function

Excel Solver Fab. constraint

Excel Solver Assy constraint

Excel Solver

Excel Solver set target cell &

define decision variables

Objective
function
Total Profit

Decision
variables

Excel Solver add constraints

Two main
constraints
fab. & assy
Nonnegative
constraint

Excel Solver - options

Excel Solver Result

Minimization Problem Example

HiTech Metal Company is developing a plan for buying
scrap metal for its operations. HiTech receives scrap metal
from two sources, Hasbeen Industries and Gentro Scrap in
daily shipments using large trucks. Each truckload of scrap
from Hasbeen yields 1.5 tons of zinc and 1 ton of lead at a
cost of $15,000. Each truckload of scrap from Gentro
yields 1 ton of zinc and 3 tons of lead at a cost of $18,000.
HiTech requires at least 6 tons of zinc and at least 10 tons
of lead per day.
Question: How many truckloads of scrap should be
purchased per day from each source in order to minimize
scrap metal cost?

Objective Function
If we define the Hasbeen truckloads and the Gentro truckloads as
the two decision variables X1 and X2, and since we want to
minimize cost, we can state the objective function as follows:

Minimize Z = 15,000 X1 + 18,000 X2

Where
Z=
daily scrap cost
X1 = truckloads from Hasbeen
X2 = truckloads from Gentro

Constraints
Given the demand information below from the problem:
Hasbeen (X1)
Tons
1.5
1

Gentro (X2)
Tons
1
3

Min Tons
6
10

Zinc
Lead

We can now state the constraints and non-negativity requirement a:

1.5X1 +

X2

>6

(Zinc/tons)

X1

3X2

> 10

(Lead/tons)

>0

(Non-negativity)

X1, X2

Solution
Order 2.29 truckloads from Hasbeen and 2.57
truckloads from Gentro for daily delivery.
The daily cost will be $80,610.