6S

Linear
Programming

McGraw-Hill/Irwin

Copyright 2007 by The McGraw-Hill Companies, Inc. All rights reserved.

Learning Objectives
Describe the type of problem tha would lend
itself to solution using linear programming
Formulate a linear programming model from
a description of a problem
Solve linear programming problems using
the graphical method
Interpret computer solutions of linear
programming problems
Do sensitivity analysis on the solution of a
linear progrmming problem
6S-2

Linear Programming
Used to obtain optimal solutions to
problems that involve restrictions or
limitations, such as:

Materials
Budgets
Labor
Machine time

6S-3

Linear Programming
Linear programming (LP) techniques
consist of a sequence of steps that will
lead to an optimal solution to problems,
in cases where an optimum exists

6S-4

Linear Programming Model

Objective Function: mathematical statement
of profit or cost for a given solution

Decision variables: amounts of either inputs

or outputs

Feasible solution space: the set of all

feasible combinations of decision variables as
defined by the constraints

Constraints: limitations that restrict the

available alternatives

Parameters: numerical values

6S-5

Linear Programming
Assumptions
Linearity: the impact of decision variables is
linear in constraints and objective function

Divisibility: noninteger values of decision

variables are acceptable

Certainty: values of parameters are known and

constant

Nonnegativity: negative values of decision

variables are unacceptable

6S-6

Graphical Linear Programming

Graphical method for finding optimal
solutions to two-variable problems
1.Set up objective function and
constraints in mathematical format

2.Plot the constraints

3.Identify the feasible solution space

4.Plot the objective function

5.Determine the optimum solution
6S-7

Linear Programming Example

Objective - profit
Maximize Z=60X1 + 50X2

Subject to
Assembly 4X1 + 10X2 <= 100 hours
Inspection 2X1 + 1X2 <= 22 hours
Storage
3X1 + 3X2 <= 39 cubic feet
X1, X2 >= 0

6S-8

Linear Programming Example

24

22

20

18

16

14

12

10

12
10
8
6
4
2
0

Product X2

Assembly Constraint
4X1 +10X2 = 100

Product X1

6S-9

Linear Programming Example

Add Inspection Constraint
2X1 + 1X2 = 22

20
15
10
5

24

22

20

18

16

14

12

10

Product X2

25

Product X1

6S-10

Linear Programming Example

Add Storage Constraint
3X1 + 3X2 = 39

Product X2

25

Inspection

20

Storage

15

Assembly

10
5

Feasible solution space

24

22

20

18

16

14

12

10

Product X1

6S-11

Linear Programming Example

Add Profit Lines

Product X2

25
20

Z=900

15
10
5

Z=300

Z=600

24

22

20

18

16

14

12

10

Product X1

6S-12

Solution
The intersection of inspection and storage
Solve two equations in two unknowns
2X1 + 1X2 = 22
3X1 + 3X2 = 39
X1 = 9
X2 = 4
Z = $740

6S-13

Constraints
Redundant constraint: a constraint that
does not form a unique boundary of the
feasible solution space

Binding constraint: a constraint that forms

the optimal corner point of the feasible
solution space

6S-14

Solutions and Corner Points

Feasible solution space is usually a polygon
Solution will be at one of the corner points
Enumeration approach: Substituting the
coordinates of each corner point into the
objective function to determine which corner
point is optimal.

6S-15

Slack and Surplus

Surplus: when the optimal values of
decision variables are substituted into a
greater than or equal to constraint and the
resulting value exceeds the right side value

Slack: when the optimal values of decision

variables are substituted into a less than or
equal to constraint and the resulting value is
less than the right side value

6S-16

Simplex Method
Simplex: a linear-programming
algorithm that can solve problems
having more than two decision
variables

6S-17

MS Excel Worksheet for

Microcomputer
Problem
Figure 6S.15

6S-18

MS Excel Worksheet Solution

Figure 6S.17

6S-19

Sensitivity Analysis
Range of optimality: the range of values
for which the solution quantities of the
decision variables remains the same

Range of feasibility: the range of values

for the fight-hand side of a constraint over
which the shadow price remains the same

Shadow prices: negative values

indicating how much a one-unit decrease
in the original amount of a constraint
would decrease the final value of the
objective function

6S-20