1 BUSI 2013:

Business Decision Analysis

 Unit 3
Introduction to Linear Programming
Chapter 7
Introduction to Linear Programming
´ Linear Programming Problem
´ Problem Formulation
´ A Simple Maximization Problem
´ Graphical Solution Procedure
´ Extreme Points and the Optimal Solution
´ Computer Solutions
´ A Simple Minimization Problem
´ Special Cases
Linear Programming

 Linear programming has nothing to do with

computer programming.
 The use of the word “programming” here means
“choosing a course of action.”
 Linear programming involves choosing a course
of action when the mathematical model of the
problem contains only linear functions.
Linear Programming (LP) Problem
´ The maximization or minimization of some
quantity is the objective in all linear programming
problems.
´ All LP problems have constraints that limit the
degree to which the objective can be pursued.
´ A feasible solution satisfies all the problem's
constraints.
´ An optimal solution is a feasible solution that
results in the largest possible objective function
value when maximizing (or smallest when
minimizing).
´ A graphical solution method can be used to
solve a linear program with two variables.
Guidelines for Model Formulation
´ Understand the problem thoroughly.
´ Describe the objective.
´ Describe each constraint.
´ Define the decision variables.
´ Write the objective in terms of the decision
variables.
´ Write the constraints in terms of the decision
variables.
Example 1: A Simple Maximization Problem

´ LP Formulation
Objective
Max 5x1 + 7x2 Function

s.t. x1 < 6
“Regular”
2x1 + 3x2 < 19 Constraints
x1 + x2 < 8
Non-negativity
x1 > 0 and x2 > 0 Constraints
 Example 1: Graphical Solution
´ First Constraint Graphed
x2

8
7 x1 = 6

6
Shaded region
5 contains all
4 feasible points
for this constraint
3
2 (6, 0)
1
x1
1 2 3 4 5 6 7 8 9 10
Example 1: Graphical Solution
´ Second Constraint Graphed
x2

8 (0, 6 1/3)
7
6
2x1 + 3x2 = 19
5
4
Shaded
3
region contains
2 all feasible points (9 1/2, 0)
1 for this constraint
x1
1 2 3 4 5 6 7 8 9 10
Example 1: Graphical Solution
´ Third Constraint Graphed
x2
(0, 8)

8
7
6 x1 + x2 = 8

5
4
Shaded
3
region contains
2 all feasible points
for this constraint (8, 0)
1
x1
1 2 3 4 5 6 7 8 9 10
Example 1: Graphical Solution
´ Combined-Constraint Graph Showing Feasible Region
x2
x1 + x2 = 8
8
7
x1 = 6
6
5
4
3
Feasible 2x1 + 3x2 = 19
2 Region
1
x1
1 2 3 4 5 6 7 8 9 10
Example 1: Graphical Solution
´ Objective Function Line
x2

8
7
(0, 5)
6 Objective Function
5x1 + 7x2 = 35
5
4
3
2
(7, 0)
1
x1
1 2 3 4 5 6 7 8 9 10
Example 1: Graphical Solution
 Selected Objective Function Lines
x2

8
7
5x1 + 7x2 = 35
6
5 5x1 + 7x2 = 39

4
3 5x1 + 7x2 = 42

2
1
x1
1 2 3 4 5 6 7 8 9 10
Example 1: Graphical Solution
´ Optimal Solution
x2 Maximum
Objective Function Line
8 5x1 + 7x2 = 46
7
6 Optimal Solution
(x1 = 5, x2 = 3)
5
4
3
2
1
x1
1 2 3 4 5 6 7 8 9 10
Summary of the Graphical Solution
Procedure
for Maximization Problems
´ Prepare a graph of the feasible solutions for
each of the constraints.
´ Determine the feasible region that satisfies
all the constraints simultaneously.
´ Draw an objective function line.
´ Move parallel objective function lines
toward larger objective function values
without entirely leaving the feasible region.
´ Any feasible solution on the objective
function line with the largest value is an
optimal solution.
Slack and Surplus Variables
´ A linear program in which all the variables are
non-negative and all the constraints are
equalities is said to be in standard form.
´ Standard form is attained by adding slack
variables to "less than or equal to" constraints,
and by subtracting surplus variables from
"greater than or equal to" constraints.
´ Slack and surplus variables represent the
difference between the left and right sides of
the constraints.
´ Slack and surplus variables have objective
function coefficients equal to 0.
Slack Variables (for < constraints)
 Example 1 in Standard Form

Max 5x1 + 7x2 + 0s1 + 0s2 + 0s3

s.t. x1 + s1 = 6
2x1 + 3x2 + s2 = 19
x1 + x2 + s3 = 8
x1, x2 , s1 , s2 , s3 > 0
s1 , s2 , and s3
are slack
variables
Slack Variables
 Optimal Solution
x2 Third
Constraint: First
x1 + x2 = 8 Constraint:
8 x1 = 6
7 s3 = 0
6 s1 = 1

5
Second
4 Constraint:
2x1 + 3x2 = 19
3
Optimal
2 Solution
s2 = 0
(x1 = 5, x2 = 3)
1
x1
1 2 3 4 5 6 7 8 9 10
Extreme Points and the Optimal Solution

´ The corners or vertices of the feasible region

are referred to as the extreme points.
´ An optimal solution to an LP problem can be
found at an extreme point of the feasible
region.
´ When looking for the optimal solution, you
do not have to evaluate all feasible solution
points.
´ You have to consider only the extreme
points of the feasible region.
Example 1: Extreme Points
x2

8
7 5 (0, 6 1/3)
6
5
4
4 (5, 3)
3
Feasible (6, 2)
3
2 Region

1 1 (0, 0) 2 (6, 0)
x1
1 2 3 4 5 6 7 8 9 10
Example 2: A Simple Minimization Problem

´ LP Formulation
Min 5x1 + 2x2

s.t. 2x1 + 5x2 > 10

4x1 - x2 > 12
x1 + x2 > 4

x1, x2 > 0
Example 2: Graphical Solution
´ Graph the Constraints
Constraint 1: When x1 = 0, then x2 = 2; when x2
= 0, then x1 = 5. Connect (5,0) and (0,2).
The ">" side is above this line.
Constraint 2: When x2 = 0, then x1 = 3. But
setting x1
to 0 will yield x2 = -12, which is not on the
graph. Thus, to get a second point on this
line, set x1 to any number larger than 3 and
solve for x2: when
x1 = 5, then x2 = 8. Connect (3,0) and (5,8).
The ">“
side is to the right.
Example 2: Graphical Solution
 Graph the Constraints (continued)
Constraint 3: When x1 = 0, then x2 = 4; when x2 =
0, then x1 = 4. Connect (4,0) and (0,4). The ">"
side is above this line.
Example 2: Graphical Solution
´ Constraints Graphed
x2
6
Feasible Region
5
4x1 - x2 > 12
4
x1 + x2 > 4
3

2 2x1 + 5x2 > 10

x1
1 2 3 4 5 6
Example 2: Graphical Solution
´ Graph the Objective Function
Set the objective function equal to an
arbitrary constant (say 20) and graph it. For
5x1 + 2x2 = 20, when x1 = 0, then x2 = 10; when
x2= 0, then x1 = 4. Connect (4,0) and (0,10).
´ Move the Objective Function Line Toward
Optimality
Move it in the direction which lowers its
value (down), since we are minimizing, until it
touches the last point of the feasible region,
determined by the last two constraints.
Example 2: Graphical Solution
 Objective Function Graphed
x2 Min 5x1 + 2x2
6

5
4x1 - x2 > 12
4
x1 + x2 > 4
3

2 2x1 + 5x2 > 10

x1
1 2 3 4 5 6
Example 2: Graphical Solution
´ Solve for the Extreme Point at the Intersection of
the Two Binding Constraints
4x1 - x2 = 12
x1+ x2 = 4
Adding these two equations gives:
5x1 = 16 or x1 = 16/5

Substituting this into x1 + x2 = 4 gives: x2 = 4/5

 Solve for the Optimal Value of the Objective

Function

5x1 + 2x2 = 5(16/5) + 2(4/5) = 88/5

Example 2: Graphical Solution
 Optimal Solution
x2
6
4x1 - x2 > 12
5
x1 + x2 > 4
4
Optimal Solution:
3 x1 = 16/5, x2 = 4/5,
5x1 + 2x2 = 17.6
2
2x1 + 5x2 > 10
1

x1
1 2 3 4 5 6
Summary of the Graphical Solution Procedure
for Minimization Problems
 Prepare a graph of the feasible solutions for
each of the constraints.
 Determine the feasible region that satisfies all the
constraints simultaneously.
 Draw an objective function line.
 Move parallel objective function lines toward
smaller objective function values without entirely
leaving the feasible region.
 Any feasible solution on the objective function
line with the smallest value is an optimal solution.
Surplus Variables

 Example 2 in Standard Form

Min 5x1 + 2x2 + 0s1 + 0s2 + 0s3

s.t. 2x1 + 5x2 - s1 = 10

4x1 - x2 - s2 = 12
x1 + x2 - s3. = 4

s1 , s2 , and s3 x1, x2, s1, s2, s3 > 0

are
surplus variables
Example: Alternative Optimal Solutions

 Consider the following LP problem.

Max 4x1 + 6x2

s.t. x1 < 6
2x1 + 3x2 < 18
x1 + x2 < 7

x1 > 0 and x2 > 0

Example: Alternative Optimal Solutions
 Boundary constraint 2x1 + 3x2 < 18 and
objective function Max 4x1 + 6x2 are parallel.
All points on line segment A – B are optimal
solutions.
x2 x1 + x2 < 7
7
6 Max 4x1 + 6x2
A
5
B x1 < 6
4
3 2x1 + 3x2 < 18

2
1
x1
1 2 3 4 5 6 7 8 9 10
Special Cases

 Infeasibility
• No solution to the LP problem satisfies all the
constraints, including the non-negativity
conditions.
• Graphically, this means a feasible region does
not exist.
• Causes include:
• A formulation error has been made.
• Management’s expectations are too high.
• Too many restrictions have been placed on
the problem (i.e. the problem is over-
constrained).
Example: Infeasible Problem
´ Consider the following LP problem.

Max 2x1 + 6x2

s.t. 4x1 + 3x2 < 12

2x1 + x2 > 8

x1, x2 > 0
Example: Infeasible Problem
´ There are no points that satisfy both constraints, so
there is no feasible region (and no feasible solution).

x2
10

2x1 + x2 > 8
8

6
4x1 + 3x2 < 12
4

x1
2 4 6 8 10
Special Cases

 Unbounded
• The solution to a maximization LP problem is
unbounded if the value of the solution may
be made indefinitely large without violating
any of the constraints.
• For real problems, this is the result of improper
formulation. (Quite likely, a constraint has
been inadvertently omitted.)
Example: Unbounded Solution
´ Consider the following LP problem.

Max 4x1 + 5x2

s.t. x1 + x2 > 5
3x1 + x2 > 8

x1, x2 > 0
Example: Unbounded Solution
´The feasible region is unbounded and the
objective function line can be moved
outward from the origin without bound,
infinitely increasing the objective function.
x2
10
3x1 + x2 > 8
8

M
6 ax
4x
1 +
4 5x
2
x1 + x2 > 5
2

x1
2 4 6 8 10
41

. SLIDES
.
. BY
.
.
.
.
. John Loucks
.
. St. Edward’s Univ.
.
.

@ Cengage Learning, All rights reserved.

Anderson, D. R., Sweeney, D. J., Williams, T. A., Camm, J. D., Cochran, J. J., Fry, M., &
Ohlmann, J. (2015). Quantitative methods for business (13th ed.). Cengage Learning.
References
´Anderson, D. R., Sweeney, D. J., Williams, T. A., Camm,
J. D., Cochran, J. J., Fry, M., & Ohlmann, J.
(2015). Quantitative methods for business (13th ed.).
Cengage Learning.
43

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