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You are on page 1of 48

Model Formulation

and Graphical

Solution

Prepared

by

JOSEPH GEORGE KONNULLY

2-1

Topics

Linear Programming – An overview

Model Formulation

Characteristics of Linear Programming

Problems

Assumptions of a Linear Programming

Model

Advantages and Limitations of a Linear

Programming.

A Maximization Model Example

Graphical Solutions of Linear Programming

Models

2-2

Linear Programming: An

Overview

Objectives of business decisions frequently

involve maximizing profit or minimizing

costs.

Linear programming uses linear algebraic

relationships to represent a firm’s

decisions, given a business objective, and

resource constraints.

Steps in application:

1. Identify problem as solvable by linear

programming.

2. Formulate a mathematical model of the

unstructured problem. 2-3

Model Components

representing levels of activity of a firm.

Objective function - a linear mathematical

relationship describing an objective of the firm,

in terms of decision variables - this function is to

be maximized or minimized.

Constraints – requirements or restrictions

placed on the firm by the operating environment,

stated in linear relationships of the decision

variables.

Parameters - numerical coefficients and

constants used in the objective function and

constraints.

2-4

Summary of Model Formulation

Steps

variables

function

2-5

Characteristics of Linear

Programming Problems

is required.

The decision is represented in the model by

decision variables.

The problem encompasses a goal, expressed as

an objective function, that the decision maker

wants to achieve.

Restrictions (represented by constraints) exist

that limit the extent of achievement of the

objective.

The objective and constraints must be definable

by linear mathematical functional relationships.

2-6

Assumptions of Linear

Programming Model

Proportionality - The rate of change (slope) of

the objective function and constraint equations is

constant.

Additivity - Terms in the objective function and

constraint equations must be additive.

Divisibility -Decision variables can take on any

fractional value and are therefore continuous as

opposed to integer in nature.

Certainty - Values of all the model parameters

are assumed to be known with certainty (non-

probabilistic).

2-7

Advantages of Linear

Programming Model

It helps decision - makers to use their productive

resource effectively.

The decision-making approach of the user

becomes more objective and less subjective.

In a production process, bottle necks may occur.

For example, in a factory some machines may be

in great demand while others may lie idle for

some time. A significant advantage of linear

programming is highlighting of such bottle

necks.

2-8

Limitations of Linear

Programming Model

Linear programming is applicable only to

problems where the constraints and objective

function are linear i.e., where they can be

expressed as equations which represent straight

lines. In real life situations, when constraints or

objective functions are not linear, this technique

cannot be used.

Factors such as uncertainty, and time are not

taken into consideration.

Parameters in the model are assumed to be

constant but in real life situations they are not

constants.

Linear programming deals with only single

objective , whereas in real life situations may

have multiple and conflicting objectives.

2-9

LP Model Formulation

A Maximization Example (1 of 4)

Company

How many bowls and mugs should be produced to

maximize profits given labor and materials

constraints?

Resource Requirements

Product resource requirements and unit profit:

Labor Clay Profit

Product

(Hr./Unit) (Lb./Unit) ($/Unit)

Bowl 1 4 40

Mug 2 3 50

2-10

LP Model Formulation

A Maximization Example (2 of 4)

2-11

LP Model Formulation

A Maximization Example (3 of 4)

Availability: 120 lbs of clay

Decision x1 = number of bowls to produce per

day

Variables: x2 = number of mugs to produce per

day

Objective Maximize Z = $40x1 + $50x2

Function: Where Z = profit per day

Resource 1x1 + 2x2 40 hours of labor

Constraints: 4x1 + 3x2 120 pounds of clay

Non-Negativity x1 0; x2 0

2-12

LP Model Formulation

A Maximization Example (4 of 4)

4x2 + 3x2 120

x1, x2 0

2-13

Feasible Solutions

the constraints:

Example: x1 = 5 bowls

x2 = 10 mugs

Z = $40x1 + $50x2 = $700

40 hours

Clay constraint check: 4(5) + 3(10) = 70 <

120 pounds

2-14

Infeasible Solutions

one of the constraints:

Example: x1 = 10 bowls

x2 = 20 mugs

Z = $40x1 + $50x2 = $1400

40 hours

2-15

Graphical Solution of LP

Models

Graphical solution is limited to linear

programming models containing only two

decision variables (can be used with three

variables but only with great difficulty).

Graphical methods provide visualization of how

a solution for a linear programming problem is

obtained.

Graphical methods can be classified under two

categories:

1. Iso-Profit(Cost) Line Method

2. Extreme-point evaluation Method.

2-16

Coordinate Axes

Graphical Solution of Maximization

Model (1 of 12)

X2 is mugs

Maximize Z = $40x1 +

$50x2

subject to: 1x1 + 2x2

40

4x2 + 3x2

120

x1, x2 0

X1 is bowls

Figure 2.2 Coordinates for

Graphical Analysis 2-17

Labor Constraint

Graphical Solution of Maximization

Model (2 of 12)

Maximize Z = $40x1 +

$50x2

subject to: 1x1 + 2x2

40

4x2 + 3x2

120

x1, x2 0

Constraint 2-18

Labor Constraint Area

Graphical Solution of Maximization

Model (3 of 12)

Maximize Z = $40x1 +

$50x2

subject to: 1x1 + 2x2

40

4x2 + 3x2

120

x1, x2 0

Area 2-19

Clay Constraint Area

Graphical Solution of Maximization

Model (4 of 12)

Maximize Z = $40x1 +

$50x2

subject to: 1x1 + 2x2

40

4x2 + 3x2

120

x1, x2 0

Area 2-20

Both Constraints

Graphical Solution of Maximization

Model (5 of 12)

Maximize Z = $40x1 +

$50x2

subject to: 1x1 + 2x2

40

4x2 + 3x2

120

x1, x2 0

Constraints 2-21

Feasible Solution Area

Graphical Solution of Maximization

Model (6 of 12)

Maximize Z = $40x1 +

$50x2

subject to: 1x1 + 2x2

40

4x2 + 3x2

120

x1, x2 0

Solution Area 2-22

Objective Function Solution = $800

Graphical Solution of Maximization

Model (7 of 12)

Maximize Z = $40x1 +

$50x2

subject to: 1x1 + 2x2

40

4x2 + 3x2

120

x1, x2 0

for Z = $800 2-23

Alternative Objective Function Solution

Lines

Graphical Solution of Maximization Model

(8 of 12)

Maximize Z = $40x1 +

$50x2

subject to: 1x1 + 2x2

40

4x2 + 3x2

120

x1, x2 0

Function Lines 2-24

Optimal Solution

Graphical Solution of Maximization

Model (9 of 12)

Maximize Z = $40x1 +

$50x2

subject to: 1x1 + 2x2

40

4x2 + 3x2

120

x1, x2 0

Solution Point 2-25

Optimal Solution Coordinates

Graphical Solution of Maximization

Model (10 of 12)

Maximize Z = $40x1 +

$50x2

subject to: 1x1 + 2x2

40

4x2 + 3x2

120

x1, x2 0

Coordinates 2-26

Extreme (Corner) Point Solutions

Graphical Solution of Maximization

Model (11 of 12)

Maximize Z = $40x1 +

$50x2

subject to: 1x1 + 2x2

40

4x2 + 3x2

120

x1, x2 0

Corner Points 2-27

Optimal Solution for New Objective

Function

Graphical Solution of Maximization

Model (12 of 12)

Maximize Z = $70x1 +

$20x2

subject to: 1x1 + 2x2

40

4x2 + 3x2

120

x1, x2 0

2-28

Slack Variables

be in the form of equations (equalities).

A slack variable is added to a constraint

(weak inequality) to convert it to an

equation (=).

A slack variable typically represents an

unused resource.

A slack variable contributes nothing to

the objective function value.

2-29

Linear Programming Model:

Standard Form

+ s2

subject to:1x1 + 2x2 + s1 =

40

4x2 + 3x2 + s2 =

120

x1, x2, s1, s2 0

Where:

x1 = number of bowls

x2 = number of mugs

s1, s2 are slack variables

Figure 2.14 Solution Points A, B, and C

2-30

LP Model Formulation – Minimization

(1 of 8)

Two brands of fertilizer available - Super-gro, Crop-

quick.

Field requires at least 16 pounds of nitrogen and

24 pounds of phosphate.

Super-gro costs $6 per bag, Crop-quick $3 per bag.

Problem: How much of each brand to purchase to

minimize total cost of fertilizer given following data

?

2-31

LP Model Formulation – Minimization

(2 of 8)

Figure 2.15

Fertilizing farmer’s

field

2-32

LP Model Formulation –

Minimization (3 of 8)

Decision Variables:

x1 = bags of Super-gro

x2 = bags of Crop-quick

Minimize Z = $6x1 + 3x2

Where: $6x1 = cost of bags of Super-Gro

$3x2 = cost of bags of Crop-Quick

Model Constraints:

2x1 + 4x2 16 lb (nitrogen constraint)

4x1 + 3x2 24 lb (phosphate constraint)

x1, x2 0 (non-negativity constraint)

2-33

Constraint Graph – Minimization

(4 of 8)

subject to: 2x1 + 4x2 16

4x2 + 3x2 24

x1, x2 0

Constraints 2-34

Feasible Region– Minimization

(5 of 8)

subject to: 2x1 + 4x2 16

4x2 + 3x2 24

x1, x2 0

Area 2-35

Optimal Solution Point –

Minimization (6 of 8)

subject to: 2x1 + 4x2 16

4x2 + 3x2 24

x1, x2 0

Solution Point 2-36

Surplus Variables – Minimization (7

of 8)

A surplus variable is subtracted from a

constraint to convert it to an equation (=).

A surplus variable represents an excess

above a constraint requirement level.

A surplus variable contributes nothing to

the calculated value of the objective

function.

Subtracting surplus variables in the farmer

problem constraints:

2x1 + 4x2 - s1 = 16

(nitrogen)

4x1 + 3x2 - s2 = 24 2-37

Graphical Solutions – Minimization

(8 of 8)

+ 0s2

subject to: 2x1 + 4x2 – s1 = 16

4x2 + 3x2 – s2 = 24

x1, x2, s1, s2 0

Example 2-38

Irregular Types of Linear

Programming Problems

general rules do not apply.

Special types of problems include those

with:

Multiple optimal solutions

Infeasible solutions

Unbounded solutions

2-39

Multiple Optimal Solutions Beaver

Creek Pottery

parallel to a constraint

line.

Maximize Z=$40x1 + 30x2

subject to: 1x1 + 2x2 40

4x2 + 3x2 120

x1, x2 0

Where:

x1 = number of bowls

x2 = number of mugs

Optimal Solutions 2-40

An Infeasible Problem

violates at least one

constraint:

Maximize Z = 5x1 + 3x2

subject to: 4x1 + 2x2 8

x1 4

x2 6

x1, x2 0

Problem 2-41

An Unbounded Problem

function increases

indefinitely:

Maximize Z = 4x1 + 2x2

subject to: x1 4

x2 2

x1, x2 0

Problem 2-42

Problem Statement

Example Problem No. 1 (1 of 3)

■ Two ingredients, chicken ($3/lb) and beef

($5/lb).

■ Recipe requirements:

at least 500 pounds of

“chicken”

at least 200 pounds of

“beef”

■ Ratio of chicken to beef must be at least 2

to 1.

2-43

Solution

Example Problem No. 1 (2 of 3)

Step 1:

Identify decision variables.

x1 = lb of chicken in mixture

x2 = lb of beef in mixture

Step 2:

Formulate the objective function.

Minimize Z = $3x1 + $5x2

where Z = cost per 1,000-lb batch

$3x1 = cost of chicken

$5x2 = cost of beef

2-44

Solution

Example Problem No. 1 (3 of 3)

Step 3:

Establish Model Constraints

x1 + x2 = 1,000 lb

x1 500 lb of chicken

x2 200 lb of beef

x1/x2 2/1 or x1 - 2x2 0

x1, x2 0

The Model: Minimize Z = $3x1 + 5x2

subject to: x1 + x2 = 1,000 lb

x1 50

x2 200

x1 - 2x2 0

2-45

Example Problem No. 2 (1 of 3)

model graphically:

Maximize Z = 4x1 + 5x2

subject to: x1 + 2x2

10

6x1 + 6x2

36

x1 4

x 1, x 2 0

constraints as equations

Figure 2.23 Constraint

Equations 2-46

Example Problem No. 2 (2 of 3)

subject to: x1 + 2x2

10

6x1 + 6x2

36

x1 4

x 1, x 2 0

Step 2: Determine the

feasible solution space

Extreme Points 2-47

Example Problem No. 2 (3 of 3)

subject to: x1 + 2x2

10

6x1 + 6x2

36

x1 4

x1, x2 0

Step 3 and 4:

Determine the solution

points and optimal

solution

Figure 2.25 Optimal Solution

Point 2-48

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