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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 resource-
based, 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
(orMinimize)
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
... ++ AA1n1nXXnnBB11
AA1111XX11 ++ AA1212XX22 ++ ...
... ++ AA2n2nXXnnBB22
AA2121XX11 ++ AA2222XX22 ++ ...
::

::

AAM1
XA
M1X11 + AAM2
ij+are
XX22 ++ ...
M2resource ... ++ AA X =B
MnXnn=BMM
requirements
Mn 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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 9

Non-Negativity Requirement
XX11,X …, XXnn00
,X22,, …,
 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 let’s
let’sformulate
formulatethis
thisproblem
problemas
asan
anLP
LPmodel…
model…
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 11

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:
M
Maxim
aximize
ize Z=400X
Z=400X11 ++ 800
800XX22

W
Where
here
Z
Z ==the
themmonthly
onthlyprofit
profitfrom
fromMMax
axand
andMMultim
ultimax
ax
X
X11==the
thenum
number
berof
ofMMax
axproduced
producedeach
eachmmonth
onth
X
X22==the
thenum
number
berof
ofM
Multim
ultimax
axproduced
producedeach
eachm month
onth
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 12

Constraints
Given
Giventhe
theresource
resourceinformation
informationbelow
belowfrom
fromthe
theproblem:
problem:
Max (X1) Multimax (X2)
Required Time/Unit Required Time/Unit Available Time/Month
3 5 5,000 Fab
1 4 3,000 Assy
We
Wecan
cannow
nowstate
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  0 (Non-negativity)
Note
Notethat
thatthe
theinequalities
inequalitiesare
areless-than-or-equal
less-than-or-equalsince
since
the
thetime
timeresources
resourcesrepresent
representthe
the total
totalavailable
available
resources
resourcesforforproduction
production
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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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 14

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 let’s
let’sformulate
formulatethis
thisproblem
problemas
asan
anLP
LPmodel…
model…
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 15

The Objective Function

IfIf we
wedefine
definethe
theHasbeen
Hasbeen truckloads
truckloadsand
and the
theGentro
Gentro
truckloads
truckloadsas as the
thetwo
twodecision
decisionvariables
variablesXX11 and
andXX22,,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
scrap cost
cost
XX11== truckloads
truckloadsfrom
fromHasbeen
Hasbeen
XX2 == truckloads
truckloadsfrom
fromGentro
Gentro
2

Hasbeen
Gentro

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 16
Constraints
Given
Giventhe
thedemand
demandinformation
informationbelow
belowfrom
fromthe
theproblem:
problem:
Hasbeen (X1) Gentro (X2)
Tons Tons Min Tons
1.5 1 6 Zinc
1 3 10 Lead

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

Solution

Order
Order 2.29
2.29 truckloads
truckloads from
from Hasbeen
Hasbeen andand 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 youyou 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

Question Bowl
Which of the following is considered
an “essential condition” for linear
programming to be used in a
problem situation?
a. Limited resources
b. Explicit objective
c. Divisibility
d. Linearity
e. All of the above

Answer: e. All of the above (Correct

answer can include Homogeneity.)
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 19

Question Bowl
The fact that a regular linear programming
model has to permit a solution that is
factional, refers to which of the
following “essential conditions”?
a. Limited resources
b. Explicit objective
c. Divisibility
d. Linearity
e. All of the above

Answer: c. Divisibility

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Question Bowl
Which of the following are means by
which a linear programming
problem can be solved?
a. Genetic algorithm
b. Microsoft Solver spreadsheet
program
c. Graphic LP
d. All of the above
e. None of the above

Answer: d. All of the above

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End of Technical
Note 2

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