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Technical Note 2
Optimizing the Use
of Resources with
Linear
Programming
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OBJECTIVES

Linear Programming Basics

A Maximization Problem

A Minimization Problem

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Linear Programming Essential

Conditions

Is used in problems where we have

limited resources or constrained
resources that we wish to allocate

The model must have an explicit

objective (function)
Generally maximizing profit or
minimizing costs subject to resourcebased, or other, constraints

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Common Applications

Aggregate sales and operations planning

Service/manufacturing productivity analysis
Product planning
Product routing
Vehicle/crew scheduling
Process control
Inventory control

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Linear Programming Essential

Conditions (Continued)

Limited Resources to allocate

Linearity is a requirement of the model

in both objective function and
constraints

Homogeneity of products produced

(i.e., products must the identical) and
all hours of labor used are assumed
equally productive

Divisibility assumes products and

resources divisible (i.e., permit
fractional values if need be)

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Objective Function
Maximize
Maximize (or
(or Minimize)
Minimize) ZZ ==CC11XX11 ++CC22XX22 ++...
...++ CCnnXXnn

Cj is a constant that describes the

rate of contribution to costs or
profit of (Xj) units being produced

Z is the total cost or profit from

the given number of units being
produced

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Constraints
AA1111XX11 ++ AA1212XX22 ++ ...
... ++ AA1n1nXXnnBB11
AA2121XX11 ++ AA2222XX22 ++ ...
... ++ AA2n2nXXnnBB22
::
::

AAM1
X11 ++ AAM2
XX22 ++ ...
++ AAMn
XXnn==BBMM
...
XA
M1
M2
Mn
ij are resource requirements for each of
the related (Xj) decision variables
Bi are the available resource
requirements
Note that the direction of the inequalities
can be all or a combination of , , or =
linear mathematical expressions
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Non-Negativity Requirement
XX11,X
,X22,, ,
, XXnn00

All linear programming model

formulations require their decision
variables to be non-negative
While these non-negativity requirements
take the form of a constraint, they are
considered a mathematical requirement
to complete the formulation of an LP
model

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10

An Example of a Maximization Problem

LawnGrow Manufacturing Company must determine the
unit mix of its commercial riding mower products to be
produced next year. The company produces two product
lines, the Max and the Multimax. The average profit is $400
for each Max and $800 for each Multimax. Fabrication
hours and assembly hours are limited resources. There is a
maximum of 5,000 hours of fabrication capacity available
per month (each Max requires 3 hours and each Multimax
requires 5 hours). There is a maximum of 3,000 hours of
assembly capacity available per month (each Max requires 1
hour and each Multimax requires 4 hours). Question: How
many units of each riding mower should be produced each
month in order to maximize profit?

Now
Now lets
letsformula
formulathis
thisproblem
problem as
as an
an LP
LPmodel
model
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The Objective Function

If we define the Max and Multimax products as the two
decision variables X1 and X2, and since we want to
maximize profit, we can state the objective function as
follows:

Maximize
Maximize ZZ == 400X
400X11 ++ 800
800 XX22
Where
Where
ZZ == the
the monthly
monthlyprofit
profit from
from Max
Max and
and Multimax
Multimax
XX11 == the
the number
number of
of Max
Max produced
produced each
each month
month
XX22 == the
the number
number of
of Multimax
Multimax produced
produced each
each month
month
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12

Constraints
Given
Giventhe
theresource
resourceinformation
informationbelow
below from
fromthe
theproblem:
problem:
Max (X1)
Required Time/Unit
3
1

Multimax (X2)
Required Time/Unit
5
4

Available Time/Month
5,000
3,000

Fab
Assy

We
Wecan
cannow
now state
statethe
theconstraints
constraintsand
andnon-negativity
non-negativity
requirements
requirementsas:
as:
3X1 + 5X 2 5,000

(Fab.)

X1 + 4X 2 3,000

(Assy.)

X1 , X 2

(Non - negativity)

Note
Notethat
thatthe
theinequalities
inequalitiesare
areless-than-or-equal
less-than-or-equalsince
since
the
thetime
timeresources
resourcesrepresent
representthe
the total
total available
available
resources
resourcesfor
forproduction
production
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13

Solution

Produce
Produce 715
715 Max
Max and
and 571
571 Multimax
Multimax per
per month
month
for
for aa profit
profit of
of $742,800
$742,800

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An Example of a Minimization
Problem
HiTech Metal Company is developing a plan for buying
scrap metal for its operations. HiTech receives scrap
metal from two sources, Hasbeen Industries and
Gentro Scrap in daily shipments using large trucks.
Each truckload of scrap from Hasbeen yields 1.5 tons
of zinc and 1 ton of lead at a cost of $15,000. Each
truckload of scrap from Gentro yields 1 ton of zinc and
3 tons of lead at a cost of $18,000. HiTech requires at
least 6 tons of zinc and at least 10 tons of lead per day.
Question: How many truckloads of scrap should be
purchased per day from each source in order to
minimize scrap metal costs to HiTech?
Now
Now lets
letsformula
formulathis
thisproblem
problem as
as an
an LP
LPmodel
model
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The Objective Function

IfIf we
wedefine
definethe
the Hasbeen
Hasbeentruckloads
truckloads and
and the
theGentro
Gentro
truckloads
truckloadsas
as the
thetwo
twodecision
decision variables
variables XX11 and
and XX22,,and
and
since
sincewe
wewant
want to
tominimize
minimizecost,
cost, we
wecan
canstate
statethe
the
objective
objectivefunction
functionas
asfollows:
follows:

Minimize
Minimize ZZ == 15,000
15,000 XX11 ++ 18,000
18,000 XX22
Where
Where
ZZ== daily
dailyscrap
scrapcost
cost
XX11== truckloads
truckloadsfrom
fromHasbeen
Hasbeen
XX2 == truckloads
truckloadsfrom
fromGentro
Gentro
2

Hasbeen

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Constraints

16

Given
Giventhe
thedemand
demandinformation
informationbelow
below from
fromthe
the problem:
problem:
Hasbeen (X1)
Tons
1.5
1

Gentro (X2)
Tons
1
3

Min Tons
6
10

Zinc
Lead

We
Wecan
cannow
now state
statethe
theconstraints
constraintsand
andnon-negativity
non-negativity
requirements
requirementsas:
as:
Note
Notethat
thatthe
the
inequalities
inequalitiesare
are
1.5X
+
X
>
6(Zinc/tons)
1.5X11 + X22
> 6(Zinc/tons)
greater-than-orgreater-than-orequal
equal since
sincethe
the
XX1
++ 3X
>>10(Lead/tons)
demand
3X22
10(Lead/tons)
demandinformation
information
1
represents
representsthe
the
XX11,,XX22
>>00(Non-negativity)
minimum
(Non-negativity)
minimum necessary
necessary
for
forproduction.
production.
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17

Solution
Order
Order 2.29
2.29 truckloads
truckloads from
from Hasbeen
Hasbeen and
and 2.57
2.57
truckloads
truckloads from
from Gentro
Gentro for
for daily
daily delivery.
delivery. The
The daily
daily
cost
cost will
will be
be $80,610.
$80,610.

Note:
Note: Do
Do you
you see
see why
why in
in this
this solution
solution that
that
integer
integer linear
linear programming
programming methodologies
methodologies
can
can have
have useful
useful applications
applications in
in industry?
industry?

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18

End of Technical
Note 2

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