CHAPTER III

INTRODUCTION TO LINEAR PROGRAMMING

Linear Programming- is an optimization method, which shows how to allocate

scarce resources such as money, materials or time and how to do such allocation in
the best possible way subject to more than one limiting condition expressed in the
form of inequalities and/or equations.
It enables users to find optimal solution to certain problems in which the solution
must satisfy a given set of requirements or constraints.
Optimization in linear programming implies either maximization (such as profit, revenue, sales,
and market share) or minimization (such as cost, time, and distance) a certain objective function.
It implies that in LP we cannot max/min two quantities in one model. It involves linearly related
multi-variate functions, i.e., functions with more than one independent variable.

The goal in linear programming is to find the best solution given the constraints
imposed by the problem; hence the term constrained optimization.
Linear programming Models (LPM)

Linear Programming (LP) models are mathematical representations of LP problems. Some LP

models have a specialized format, whereas others have a more generalized format. Despite this,
LP Models have certain characteristics in common. Knowledge of these characteristics enables
us to recognize problems that are amenable to a solution using LP models and to correctly
formulate an LP model. The characteristics can be grouped into two categories: Components and
Assumptions. The components relate to the structure of a model, whereas the assumptions reveal
the conditions under which the model is valid.

Components Assumptions
1. Objective function 1. Linearity
2. Decision variables Model 2. Divisibility Model
3. Constraints Structure 3. Certainty Validity
4. Parameters & RHSV 4. Non-negativity

Components of LP model

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1. The Objective Function- is the mathematical or quantitative expression of the objective of the company/model.
The objective in problem solving is the criterion by which all decisions are evaluated. In LPMs a single quantifiable
objective must be specified by the decision maker. For example, the objective might relate to profits, or costs, or
market share, but to only one of these. Moreover, because we are dealing with optimization, the objective will be
either maximization or minimization, but not both at a time.
2. The Decision Variables - represent unknown quantities to be resolved for. These decision variables may represent
such things as the number of units of different products to be sold, the amount of Birr to be invested in various
projects, the number of ads to be placed with different media.

Since the decision maker has freedom of choice among actions, these decision variables are controllable variables.
3. The constraints - are restrictions which define or limit the feasibility of a proposed course of action. They limit the
degree to which the objective can be pursued.
Atypical restriction embodies scarce resources (such as labor supply, raw materials, production capacity, machine
time, storage space), legal or contractual requirements (e.g. Product standards, work standards), or they may reflect
other limits based on forecasts, customer orders, company policies etc.
4. Parameters - are fixed values that specify the impact that one unit of each decision variable will have on the
objective and on any constraint it pertains to as well as to the numerical value of each constraint.
 The components are the building blocks of an LP model. We can better understand their meaning by
examining a simple LP model as follows.
Example:
Maximize: 4X1 + 7X2 + 5X3 (Profit) ________________ objective function
Subject to:
2X1 + 3X2 + 6X3  300 labor hrs
5X1 + X2 + 2X3 200 lb raw material A System contents
3X1 + 5X2 + 2X3 360
X1 = 30 Individual
X2 40 constraints
X1, X2, X3  0  Non-negativity constraints.

System constraints – involve more than one decision variables.

Individual constraints – involve only one decision variable.
None-negativity constraints specify that no variable will be allowed to take on a negative value. The non-negativity
constraints typically apply in an LP model, whether they are explicitly stated or not.
Assumption of LP Models
1. Linearity. The linearity requirement is that each decision variable has a linear impact on the objective function and
in each constraint in which it appears. Following the above example, producing one more unit of product 1 adds Br.
4to the total profit. This is true over the entire range of possible values of X1. The same applies to each of the
constraints. It is required that the same coefficient (fro example, 2 lb. per unit) apply over the entire range of
possible value so the decision variable.

2. Divisibility. The divisibility requirement pertains to potential values of decision variables. It is assumed that non-
integer values are acceptable. For example: 3.5 TV sets/hr would be acceptable  7 TV sets/2hrs.

3. Certainty. The certainty requirement involves two aspects of LP models.

i) With respect to model parameters (i.e., the numerical values) – It in assumed that these values are known
and constant e.g. in the above example each unit of product 1 requires 2lab his is known and remain
constant, and also9 the 300 lab/hr available is deemed to be known and constant.

II) ALL THE RELEVANT CONSTRAINTS IDENTIFIED AND

REPRESENTED IN THE MODEL ARE AS THEY ARE.

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4. Non-negativity. The non-negativity constraint is that negative values of variables are unrealistic and, therefore, will
not be considered in any potential solution; only positive values and zero will be allowed.

Formulating LP Models
Once a problem has been defined, the attention of the analyst shifts to formulating a model. Just as it is important to
carefully define a problem, it is important to carefully formulate the model that will be used to solve the problem. If
the LP model is ill formulated, ill-structured, it can easily lead to poor decisions.

Formulating linear programming models involves the following steps:

1. Define the problem/problem definition

* To determine the # of type 1 and type 2 products to be produced per mother so as to maximize the
monthly profit given the restrictions.
2. Identify the decision variables or represent unknown quantities
* Let X1 and X2 be the monthly qualities of Type 1 and type 2 products

3. Determine the objective function

* Once the variables have been identified, the objective function can be specified. It is necessary to decide
if the problem is a maximization or a minimization problem and the coefficients of each decision variable.

Note: a. The units of all the coefficients in the objective function must be the
same. E.g. If the contribution of type 1 is in terms of Br so does for type 2.
b. All terms in the objective function must include a variable each term
have to have 1 variable.
c. All decision variables must be represented in the objective function.

4. Identifying the constraints

- System constraints - more than one variable
- Individual constraints - one variable
- Non-negative constraints
Example
1. A firm that assembles computer and computer equipment is about to start production of two new microcomputers.
Each type of micro-computer will require assembly time, inspection time and storage space. The amount of each of
these resources that can be devoted to the production of microcomputers is limited. The manger of the firm would
like to determine the quantity of each microcomputer to produce in order to maximize the profit generated by sales
of these microcomputers.

Additional information
In order to develop a suitable model of the problem, the manager has met with design and manufacturing personnel.
As a result of these meetings, the manger has obtained the following information:

Type 1 Type 2

Profit per unit Birr 60 Birr 50

Assembly time per unit 4hrs 10hrs
Inspection time per unit 2hrs 1hr
Storage space per unit 3cubic ft 3cubic ft

The manager also has acquired information on the availability of company resources. These weekly amounts are:

Resource Resource available

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 Assembly time 100hrs
Inspection time 22hrs
Storage space 39 cubic feet

The manger also meet with the firm’s marketing manger and learned that demand for the microcomputers was such
that whatever combination of these two types of microcomputer is produced, all of the output can be sold.

Required: Formulate the Linear programming model.

2. An electronics firm produces three types of switching devices. Each type involves a two-step assembly operation. The
assembly times are shown in the following table:

Assembly time per Unit (in minutes)

Section #1 Section #2
Model A 2.5 3.0
Model B 1.8 1.6
Model C 2.0 2.2

Each workstation has a daily working time of 7.5 hrs. The manager wants to obtain the greatest possible profit
during the next five working days. Model A yields a profit of Birr 8.25 per unit, Model B a profit of Birr 7.50 per
unit and Model C a profit of Birr 7.80 per unit. Assume that the firm can sell all it produces during this time, but it
must fill outstanding orders for 20 units of each model type.

Required: Formulate the linear programming model of this problem.

3. A diet is to include at least 140 mgs of vitamin A and at least 145 Mgs of vitamin B. These requirements are to be
obtained from two types of foods: Type 1 and Type 2. Type 1 food contains 10Mgs of vitamin A and 20mgs of
vitamin B per pound. Type 2 food contains 30mgs of vitamin A and 15 mgs of vitamin B per pound. If type 1 and 2
foods cost Birr 5 and Birr 8 per pound respectively, how many pounds of each type should be purchased to satisfy
the requirements at a minimum cost?

Vitamins
Foods A B
Type 1 10 20
Type 2 30 15

4. A farm consists of 600 hectares of land of which 500 hectares will be planted with corn, barley and wheat, according
to these conditions.

(1) At least half of the planted hectar should be in corn.

(2) No more than 200 hectares should be barley.
(3) The ratio of corn to wheat???planted should be 2:1

It costs Birr 20 per hectar to plant corn, Birr 15 per hectar to plant barley and Birr 12 per hectar to plant wheat.

a. Formulate this problem as an LP model that will minimize planting cost while achieving the specified
conditions.
Solution Approaches to Linear Programming Problems
There are two approaches to solve linear programming problems:
1. The Graphic solution method
2. The Algebraic solution/ simplex algorithm method

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 A. The Graphic Solution Method
It is a relatively straightforward method for determining the optimal solution to
certain linear programming problems. It gives as a clear picture. This method can
be used only to solve problems that involve two decision variables. However, most
linear programming applications involve situations that have more than two
decision variables, so the graphic approach s not used to solve them.
E.g.: 1. Solving the micro-computer problem with graphic approach

Zmax = 60X1 + 50X2

: 4X1 + 10X2 100
2X1 + X2 22
3X1 + 3X2 39
X1, X2 0
Activity(please practice the following questions)
1. A company manufactures two products A and B. Both products are processed on two
machines M1 & M2.
M1 M2 Availability
A 6hr/unit 2hr/unit 7200hr/month
B 4hr/unit 4hr/unit 4000hr/month

# Profit per unit for A is Birr 100 and for B is Birr 80.
a) Formulation of LPM(Linear programming model)
b) Find out the monthly production of A and B to maximize profit by graphical method.
2. A firm is engaged in animal breeding. The animals are to be given nutrition supplements
every day. There are two products A and B which contain the three required nutrients.
Nutrients Quantity/unit Minimum
Requirement
A B 216
1 72 12 72
2 6 24 200
cost Br 40 Br 80

a) Formulation of LPM
b) Find out quantity of product A & B to be given to provide minimum nutritional
requirement(Use graphical methods)

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