Chapter 8: Linear Programming

Linear Programming - Linear Programming is a problem solving approach develop to help managers make
decisions.

Linear programming (LP, also called linear optimization) is a method to achieve the best outcome (such as
maximum profit or lowest cost) in a mathematical model whose requirements are represented by linear
relationships. Linear programming is a special case of mathematical programming (also known as
mathematical optimization). More formally, linear programming is a technique for the optimization of a
linear objective function, subject to linear equality and linear inequality constraints.

Linear programming can be applied to various fields of study. It is widely used in mathematics, and in
business, economics, and for some engineering problems. Industries that use linear programming models
include transportation, energy, telecommunications, and manufacturing. It has proven useful in modeling
diverse types of problems in planning, routing, scheduling, assignment, and design.

Linear programming is a widely used field of optimization for several reasons. Many practical problems in
operations research can be expressed as linear programming problems.

Maximization Problem

Example Problem 1
Material Fuel Additive Solvent Base Availability
Material 1 0.4 0.5 20 Tons
Material 2 0.2 5 Tons
Material 3 0.6 0.3 21 Tons

A. OPTIMAL SOLUTION
Get the optimal solution. Any feasible solution on the objective function line with the largest
(maximization) or smallest (minimization) is an optimal solution.

Max 40F + 30S

s.t. 0.4F + 0.5S ≤ 20
0.2S ≤ 5
0.6F + 0.3S ≤ 21
F,S ≥ 0

0.4F + 0.5S ≤ 20 0.6F + 0.3S ≤ 21 F = 50 – 1.25 S

0.4F + 0.5S = 20 0.6 (50 – 1.25 S) + 0.3S = 21 F = 50 – 1.25 (20)
0.4 F = 20 – 0.5S 30 – 0.75S + 0.3S = 21 F = 50 - 25
0.4 -0.75S + 0.3S = 21 – 30 F = 25
F = 50 – 1.25 S -

Optimal Solution: (F=25, S=20)

Objective Function Maximize 40 Fuel Additive + 30 Solvent Base
 Max 40F + 30S
Max 40 (25) + 30 (20)
=1000 + 600
Value of the Optimal Solution = 1,600

Optimal Solution: In order to maximize the total profit contribution, RMC Inc. should produce 25 tons of
Fuel Additive, and 20 tons of Solvent Base to produce a profit of 1,600.

SLACK - when we substitute the optimum solution, the answer must be greater than or equal to the
constraint. It is maximized when the answer is zero. If not, there is slack. Any unused or idle capacity for
a maximization constraint is referred to as slack associated with the constraint.

Example Problem 1 Slack:

Constraints:

0.4F + 0.5S ≤ 20 0.2S ≤ 5 0.6F + 0.3S ≤ 21

0.4 (25) + 0.5 (20) = 20 0.2 (20) = 5 0.6 (25) + 0.3 (20) = 21
10 + 10 = 20 4=5 15 + 6 = 21
20 = 20 Slack of 1 21 = 21
No Slack No Slack

Meaning: To get the optimum solution with profit of 1,600, all available tons of Material 1 and 3 are
consumed. There is a 1 slack of Material 2.

Example Problem 2: You need to buy some tables for the computer room. You know that Table A costs
$4 per unit, requires 2 square feet of room space, and holds 2 computers. Table B costs $6 per unit,
requires 4 square feet of room space, and holds 3 computers. You have been given $100 for this purchase,
though you don’t have to spend that much. The computer area has room for no more than 60 square feet
of tables.

a. Formulate a linear programming model that can be used to determine the number of Table A and
the number of Table B that you should buy in order to maximize the space for computers in the
computer room.
b. What is the Optimal Solution? (Show your computation)
c. What is the value of the Optimal Solution?
Cabinet Cabinet A Cabinet B Availability
Cost $4 $6 $100
Room Space Required 2 square feet 4 square feet 60 square feet
Capacity 2 Computers 3 computers Maximize space
capacity

A. MATHEMATICAL MODEL
Based from the information on our problem formulated, translate verbal statement into mathematical
model. To find product mix that satisfies all the constraints, and at the same time yields the maximum or
minimum value of the objective function.

Max 2A + 3B
s.t. 4A + 6B ≤ 100
2A + 4B ≤ 60
A, B ≥ 0

B. OPTIMAL SOLUTION
Get the optimal solution. Any feasible solution on the objective function line with the largest
(maximization) or smallest (minimization) is an optimal solution.

Max 2A + 3B
s.t. 4A + 6B ≤ 100
2A + 4B ≤ 60
A, B ≥ 0

4A + 6B ≤ 100 2A + 4B ≤ 60 A=25-1.5B
4A + 6B = 100 2(25-1.5B) + 4B = 60 A=25 – 1.5 (10)
4A = 100 – 6B 50 – 3B + 4B = 60 A = 25 - 15
4 -3B +4B = 60 – 50 A = 10
A = 25-1.5B B = 10

Optimal Solution: (A=10, B=10)

Objective Function Maximize 2A + 3B
Max 2A + 3B
Max 2 (10) + 3 (10)
=20 + 30
Value of the Optimal Solution = 1,600

Optimal Solution: In order to maximize the space capacity, you need to buy 10 tables A to holds 20
computers, and 10 tables B to hold 30 computers, saving space for 50 computers in the computer room.

SLACK - when we substitute the optimum solution, the answer must be greater than or equal to the
constraint. It is maximized when the answer is zero. If not, there is slack. Any unused or idle capacity for
a maximization constraint is referred to as slack associated with the constraint.

Example Problem 1 Slack: Constraints:

4A + 6B ≤ 100 2A + 4B ≤ 60
4(10) + 6(10) = 100 2(10) + 4(10) = 60
40 + 60 = 100 20 + 40 = 60
100 = 100 60 = 60
The budget was maximized The room space was maximized

Meaning: To get the optimum solution with 50 computers in the computer room, there is no slack. The
$100 budget was used, and all 60 square feet of space for tables was maximized.

Practice Set: FNT Inc. uses 2 Raw Materials to produce two products: Legal Pad Paper, and White Bond
Paper. The accounting department arrived at prices that will result in profit contribution of $250 for every
box of Legal Bond Paper, and $200 for every box of White Bond Paper. Maximize the total profit
contribution.
Material Legal Pad Paper - x White Bond Paper - y Availability
1 2 4 200
2 5 3 210

a. Formulate a linear programming model that can be used to determine the number of Legal Pad
Paper and White Bond Paper boxes in order to maximize profit contribution.
b. What is the Optimal Solution?
c. What is the value of the Optimal Solution?
d. Use the optimal solution to determine if there is a slack in the constraints.

250X + 200Y
St 2x + 4y < 200
5x + 3y < 210