Topic10:

Linear Programming
This topic will cover:
◦ Formulating a two variable linear programme
◦ Graphical solution of a linear programme
◦ Introduction to sensitivity analysis
By the end of this topic students will be able
to:
◦ Recognise the concept of constrained optimisation
◦ Formulate a two variable linear programme
 Maximisation and minimisation problems
◦ Find a graphical solution to a two variable LP
◦ Appreciate the process of sensitivity analysis
◦ A company produces two specialist materials
 Available demand known for following week:
 Material A 90 square metres
 Material B 150 square metres
 Two internal processes are constrained:
 Process 1 has 140 hours available per
week
 Process 2 has 70 hours available per week
 No input material supply side constraints
 ◦ Resource use and profit from materials
Material A Material B
Process 1 (time per m2) 24 minutes 42 minutes
Process 2 (time per m2) 12 minutes 24 minutes
Profit per m2 £50 £25

◦ Profit = 50A + 25B

◦ Process 1: ≤ 140
◦ Process 2: ≤ 70
0.4A + 0.7B
0.2A + 0.4B
◦ What to produce this week to maximise profit?
◦ Objective function
 Maximise: profit = 50A + 25B
◦ Constraints
 Process 1: 0.4A + 0.7B ≤ 140
 Process 2: 0.2A + 0.4B ≤ 70
 Demand A: A ≤ 90
 Demand B: B ≤ 150
 A≥0
 B≥0

non-negativity constraints
 Demand A: A ≤ 90
B 250
200

150

100

50

0
A
0 50 100 150 200 250 300 350 400
 Demand B: B ≤ 150
B 250
200

150

100

50

0
0 50 100 150 200 250 300 350 400
A
 Process 1: 0.4A + 0.7B ≤ 140
B 250
200

150

100

50

0
A
0 50 100 150 200 250 300 350 400
 Process 2: 0.2A + 0.4B ≤ 70
B 250
200

150

100

50

0
A
0 50 100 150 200 250 300 350 400
 The Feasible Area
B 250
200

150

100

50

0
A
0 50 100 150 200 250 300 350 400
 The Feasible Area • Graph the objective
B 150 function
• Profit = 50A + 25B
120
• £7,750
Profit =
90 £6,750
• Profit =
60 £5,250

30
• Profit =
0 £3,000
A
0 30 60 90
◦ Produce 90 m2 of material A and 130 m2 of B
 Profit = (90 x 50) + (130 x 25) = £7,750
◦ Available process resource constraints
 Process 1: 0.4A + 0.7B ≤ 140, non-binding &
redundant
 Process 2: 0.2A + 0.4B ≤ 70, binding
◦ Available demand constraints
 Demand A: A ≤ 90, binding
 Demand B: B ≤ 150, non-binding
B 150 • Solutions to Linear
Programs always lie
120
on a corner of the
90 feasible area.
• Occasionally also on
60 the line between two
corners.
30

0
A
0 30 60 90
 (0, 150) (50, 150)
B 150 • Identify variable
(90, 130) mix at each corner
120
• Evaluate objective
90
function
60 − e.g. profit at each
corner
30
(90, 0)
• Assess and decide
0
A
0 30 60 90
◦ What to produce this week?

Material A (m2) Material B (m2) Profit (50A +

25B)
0 150 £3,750
50 150 £6,250
90 130 £7,750
90 0 £4,500
Minimize:
◦ Objective function: Cost = 42A + 100B
Constraints
◦ A ≥ 25
◦ B ≥ 10
◦ A + B ≥ 50
◦ 3A + 7B ≥ 210
 A = 25
B 50 A + B = 50

40

30
(25, 25)

20 (35, 15)
(46⅔, 10)
10 B = 10

3A + 7B = 210
0
A
0 10 20 30 40 50 60 70 80
◦ What to produce this week?

A B Cost (42A +
100B)
25 25 £3,550
35 15 £2,970
46⅔ 10 £2,960
B 150 • Assume unit profit
120 of one product
changes, then the
90 • Gradient of isoprofit
line changes, and
60
eventually
30 • Product mix
changes
0
A
0 30 60 90
Material A (m2) Material B (m2) Profit (50A + 25B)
0 150 £3,750
50 150 £6,250 PB:PA = 0.5
90 130 £7,750
90 0 £4,500

Material A (m2) Material B (m2) Profit (25A + 50B)

0 150 £7,500
50 150 £8,750 PB:PA = 2.0
90 130 £8,750
90 0 £2,250

Material A (m2) Material B (m2) Profit (20A + 60B)

0 150 £9,000
50 150 £10,000 PB:PA = 3.0
90 130 £9,600
90 0 £1,800
B 250
200

150

100

50

0
A
0 50 100 150 200 250 300 350 400
Material A (m2) Material B (m2) Profit (50A +
25B)
0 150 £3,750
50 150 £6,250
90 130 £7,750
90 0 £4,500
Material A (m2) Material B (m2) Profit (50A +
25B)
0 150 £3,750
50 150 £6,250
100 125 £8,125
100 0 £5,000
B 250
200

150

100

50

0
A
0 50 100 150 200 250 300 350 400
B 250
200

150

100

50

0
A
0 50 100 150 200 250 300 350 400
By the end of this topic students will be able
to:
◦ Recognise the concept of constrained optimization
◦ Formulate a two variable linear programme
 Maximisation and minimisation problems
◦ Find a graphical solution to a two variable LP
◦ Appreciate the process of sensitivity analysis
◦ Hillier, F. and Lieberman. G. Introduction to
Operations Research. McGraw Hill
◦ Keast, S. and Towler M. Rational Decision-Making
for Managers. Wiley.
◦ Wisniewski, M. Quantitative Methods for Decision
Makers. FT Prentice Hall.
Any Questions?