Dr. Sachin C.

Vyavhare
sachinvyavhare@gmail.com
Linear Programming
Introduction
Linear Programming is a deterministic model in decision sciences. This is an optimisation
technique whereby we consider a given business problem and identify the variables
“concerning the same. These variables are then used to write down the objective function and
the constraints for the given problem situation. Under LPP both these are expressed using the
Linear Relationships only. After the formulation of the given problem we use techniques like
Graphical method and Simplex method to solve it further. Problem formulation is the most
critical step under LPP model. |

Linear Programming Problem (LPP)

(a) Linear Problem: A linear relation is proportional i.e. the power of the terms (variables)
in an equation is at the most raised to 1, e.g. P = ax + by + cz, where a, b, c are constants
and x, y, z are variables.
The problem most commonly faced by management is to decide the manner in which
the limited resources should be used to achieve the desired objectives like profit
maximisation, cost minimisation, etc.

LPP is a mathematical technique for allotting the limited resources of a firm in an

optimum manner and it is useful in product mix problem, media selection,
transportation problems, assignment problems, portfolio selection, etc.

(b) Decision Variables: These are the unknowns to be determined from the solution e.g. x, y,
z in the linear equation above.

(c) Constraints: These represent the mathematical equations of the limitations imposed by the
problem situations.

(d) Objective Function: This represents the mathematical equation of the major objective of
the system in terms of the decision variables.

(e) Linear Relationship: Linear Programming deals with the problems in which the objective
function as well as the constraints can be expressed as linear mathematical functions of the
decision variables i.e. the functions in which each variable appears only in one term and only
to the first power. Linear relationships have two properties:
(i) Proportionality (directly proportional) e.g. 2x, - 3y etc.

(ii) Divisibility i.e. variables can take fractional values.

e.g. P = ax + by + cz (Linear Function)
P = ax2 + byz + cx (Quadratic Function)
P = ax3 + by + c (Cubic Function)
(f) Non-negativity Condition: i.e. the decision variables must be either 0 or +ve
i.e. x, y,z, ≥ 0

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 Dr. Sachin C. Vyavhare
sachinvyavhare@gmail.com

(g) Feasible Solution: A set of values of the decision variables which Satisfies all the
constraints and the non-negativity condition is a feasible solution. A problem can have many
feasible solutions.

(h) Optimal/Optimum Solution: This is a feasible solution which optimises the objective
function. Normally an optimal solution is unique.

Assumption of LPP Model:

1) Certainty- model parameter-resources, contribution(cost/profit), consumption of
resources by unit of decision variable must be known and constant.

2) Additivity - The value of objective function and total sum of resources = contribution
of cost/profit on each decision variable and sum of the resources earned by decision
variable.

3) Linearity (Or Proportionality) - The relationship is linear. If production of one unit

uses 5 m/c hour, then for production of three unit, 3*5=15 m/c hour.

4) Divisibility( Or Continuity) - the solution value of decision variable are assumed to

have either whole number (integer) or mixed number (integer and fractional values)
Advantage of using Linear Programming:
1) Optimum use of productive resources
2) Improves the quality of decisions (approach of DM is Objective rather than Subjective)
3) provides practical solution for the problem
4) Highlights the bottlenecks in the production process.
5) Helps in re-evaluation of a basic plan for changing condition
Limitations of LPP:
1) Treats all the relationship among Decision variables Linear
2) No guarantee to get integer valued solution
3) Parameters appeared in the models are assumed to be constant.
4) It deals with only single objective.
5) Large –scale problems can be solved with LPP. The large –scale problem can be
fragmented into small problems and solved it separately which is cumbersome.
6) Does not take into consideration effect of time and uncertainty

General Mathematical Model of Linear Programming Problem:

The general linear programming problem with ‘n’ decision variables and ‘m’ constraints can
be stated in the following form.
Find the value of decision variables X1,X2,…….,Xn So as to

Optimize (Max or Min) Z = C1 X1 + C2 X2 +………………+Cn Xn

Subject to the Linear constraints,
a11X1 + a12X2 + ……..+ a1nXn (≤ = ≥) b1

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sachinvyavhare@gmail.com
 Dr. Sachin C. Vyavhare
sachinvyavhare@gmail.com
a21X1 + a22X2 + ……..+ a2nXn (≤ = ≥) b2
.am1X1 + am2X2 + ……..+ amnXn (≤ = ≥) bm
And X1,X2,…….,Xn ≥ 0

Cj=Coefficient representing the per unit contribution of decision variables Xj, to the value of
objective function.
aij=input-output coefficients thet represent amount of resource (i) consumed per unit of
variables(Xj)
bi= represent total availability of the (i) th resource.

Stages of LPP
Stages of LPP are:
(i) Problem identification through collection of data.
(ii) Problem formulation i.e. to formulate the mathematical problem from the given data.
(iii) Problem solving.

Problem Formulation of LPP

Step 1: Find the key decisions to be made from the study of the problem.

Step 2: Identify the decision variables and assign symbols like x1, x2, x3 or x, y, z, etc.

Step 3: Mention the objective function quantitatively and express it as a linear function of the
decision variables.

Step 4: Express the constraints also as linear equalities or inequalities in terms of the decision
variables.

Step 5: Express the objective function, the constraints and the non-negativity condition from
the steps above in an LPP format as follows:

General Form of an LPP:

Optimise (Maximise or Minimise)

Z= C1x1 + C2x2+ C3x3+…..+ Cnxn (Objective Function)

Subject to
a11 X1 + a12 x2 + a13 x3 + …. + a1n xn (< , = , >) b1

a21 x1 + a22 x2 + a23 x3 + …. + a2n xn (< , = , >) b2 ….. Constraints

.
.
.
am1 x1 + am2 x2 + am3 x3 + …. + amn xn (< , = , >) bm

Dr. Sachin C. Vyavhare

sachinvyavhare@gmail.com
 Dr. Sachin C. Vyavhare
sachinvyavhare@gmail.com

and x1, x2, x3……, xn ≥ 0 …… (non-negativity condition)

e.g. Maximise Z = 5x1 + 7x2+ 3x3 …..(Objective Function)

Subject to : 2x1 + 3x2 + x3 ≤ 10 …. (Constraint 1)

X1 + x3 ≤ 6 ….. (Constraint 2 )
Where x1, x2, x3 ≥ 0 ….. (non-negativity condition)
Cj=Coefficient representing the per unit contribution of decision variables Xj, to the value of
objective function.
aij=input-output coefficients thet represent amount of resource (i) consumed per unit of
variables(Xj)
bi= represent total availability of the (i) th resource.

Summarization of LP model:

Resources OR Decision Total

Constraints Variables

X1 X2 Xn

Constraint 1

Constraint 2

Constraint 3

Contribution (Cost OR
Profit

Q.1) A company is making two products A and B. The cost of producing product A is Rs.60
and product B is Rs. 80 respectively. As per the agreement, the company has to supply at least
200 units of product B to its regular customers. One Unit of product A require one machine
hour whereas product B has machine hours available abundantly within the company. The total
machine hour available for product A are 400 hours. One unit of product A and product B
requires one labour hour each and total 500 hours are available. The company wants to
minimize the cost of production by satisfying the given requirements. Formulate the problem
as LPP.

Q.2) A factory makes tennis rackets and cricket bats. A tennis racket takes 1.5 hours of machine
time and 3 hours of craftsman’s time in its making while a cricket bat takes 3 hour of machine
time and 1 hour of craftsman’s time. In a day, the factory has the availability of not more than
42 hours of machine time and 24 hours of craftsman’s time. The profit earned on a racket and

Dr. Sachin C. Vyavhare

sachinvyavhare@gmail.com
 Dr. Sachin C. Vyavhare
sachinvyavhare@gmail.com
on a bat is Rs 20 and Rs 10 respectively. You are the operation manager of the company,
Formulate the LPP so that profit is maximum.

Q.3) A merchant plans to sell two types of personal computers − a desktop model and a portable
Laptop model that will cost Rs 30000 and Rs 40000 respectively. He estimates that the total
monthly demand of computers will not exceed 300 units. Determine the number of units of
each type of computers which the merchant should stock to get maximum profit if he does not
want to invest more than Rs 70 lakhs and if his profit on the desktop model is Rs 4500 and on
portable model is Rs 5000.

Q.4) Mr. Rao, the owner of a Readymade garments shop wishes to publish advertisements in
two local daily newspapers, one Marathi and one English. The expected coverage through the
advertisements is 1000 people and 1500 people per advertisement respectively. Each
advertisement in a Marathi newspaper costs Rs 3000 and for an English daily it is Rs. 5,000.
Mr. Rao has decided not to place more than 10 advertisements in the Marathi newspaper and
wants to place at least 6 advertisements in the English daily. The total advertisement budget is
Rs. 50,000/-. Formulate the problem as a LP model.

Q.5) A company engage in producing THREE products namely A, B, C. The production

department produces each day, components sufficient to make 50 units of A, 25 units of B and
30 units of C. The management is confronted with the problem of optimizing the daily
production of products in assembly department where only 100 man-hours are available daily
to assemble the products.
• The additional information is available as under:
Product Type Profit contribution per unit (Rs.) Assembly time per product (hrs)

A 12 0.8
B 20 1.7
C 45 2.5

The company has daily order commitment for 20 units of A and 15 units of both products B
and C. Formulate problem as LP Model to maximize the profit.

Graphical Method of Solution:

After a Linear Programming Problem is expressed in the LP format, the next step is to solve it
to get its solution. Before going for the solution (i.e. the set of values of the decision variables
x1, x2, x3, etc.), the following points must be noted:

(i) Basic Feasible Solution: It is a solution which satisfies the non-negativity condition as well
as the constraints. Thus, a problem can have many feasible solutions.

Dr. Sachin C. Vyavhare

sachinvyavhare@gmail.com
 Dr. Sachin C. Vyavhare
sachinvyavhare@gmail.com

(ii) Optimum/Optimal Solution: This is a basic feasible solution which optimises (maximises
or minimises) the objective function. A problem normally has a unique optimal solution. |

Graphical Method of Solution:

This is the simplest method to solve a LP Problem involving only two decision variables, The
two decision variables say x1 and x2 are plotted along the two coordinate axes X and Y on a
graph paper. Only first quadrant of XY plane must be considered as x1, x2 > = 0.

Steps for obtaining Graphical Solution:

Step 1: Develop LP model
Step 2: Plot the constraint on graph paper and decide the feasible region
Take value of x1=0; and determine the value of x2; alternatively take the value of x2=0
and determine value of x1 (equation involving 2 decision variable); and take the value of
variable as it is (equation involving 1 decision variable)
Feasible region involves points satisfying all the constraints.
Step 3- Examine the objective function at the extreme points and determine the highest/lowest
value as per the criterion of optimality.

Q.6) A Firm Makes Two Products X & Y, and has a total production capacity of 9 tonnes per
day, X and Y requiring the same production capacity. The firm has a permanent contract to
supply at least 2 tonnes of X and at least 3 tonnes of Y per day to another company. Each tonne
of X requires 20 machines hours of production time and each tonnes of Y requires 50 machines
hours of production time. The daily maximum number of machine hours is 300. All the firm’s
output can be sold and the profit made is Rs. 80 per tonne of X and Rs. 120 per tonne of Y.
Determine production schedule to maximise the profit. Solve by graphical method.

Q.7) A manufacturer produces two different model: X and Y, of the same product. Model X
makes a contribution of Rs. 50 per unit and model Y, Rs. 30 per unit towards total profit. Raw
material r1 and r2 are required production. At least 18 Kg of r1 and 12 kg of r2 must be used
daily. Also at the most 34 of hours are to be utilized. A quantity of 2 kg of r1 is needed for
model X and 1Kg of r1 for model Y. For each of X and Y, 1 kg of r2 is required. It takes 3
hours to manufacture model X and 2 hours to manufacture model Y. How many units should
be produced to maximize the profit?

Q.8) Solve the following LP problem by graphical method.

Minimize Z = 80x1 + 120x2

Subject to: X1 + x2 ≤ 9
X1 ≥ 2
X2 ≥ 3
20x1 + 50x2 ≤ 300
x1, x2 ≥ 0

Dr. Sachin C. Vyavhare

sachinvyavhare@gmail.com
 Dr. Sachin C. Vyavhare
sachinvyavhare@gmail.com

Q.9) Solve the following LP problem by graphical method.

Zmin = 20X1+10X2

Subject to constraints:
X1+2X2 ≤ 40;
3X1+X2 ≥ 30;
4X1+3X2 ≥ 60
X1, X2 ≥ 0

Dr. Sachin C. Vyavhare

sachinvyavhare@gmail.com