Linear Programming Problem (LPP)

(Introduction and formulation)

Dr. Pradip Kundu

Birla School of Management, BGU

Linear programming problem (LPP) is a class of optimization problems which deals with
optimization (maximization or minimization) of objective function subject to a set of
constraints/restrictions where the objective function and the constraints are linear. Here the word
‘linear’ indicates that 2nd or higher power of the variables or their products do not appear in the
expressions of the objective function as well as of the constraints.

George B. Dantzig, a great mathematician and former chief of the combat analysis branch of the US
Army Air Forces first formulated general linear programming problem for solving the resources
allocation problem in 1947. The method he suggested to solve LPP is well known as Simplex
Method.

The LPP has three basic components:

i. Decision variable
ii. Objective (goal)
iii. Constraints (restrictions)

Let’s consider the following problem to discuss the above components:

Ex. 1. (Product-mix problem) Reddy Mikks produces both exterior and interior points from two raw
materials, M1 and M2. The following table provides the basic data of the problem

Tons of raw material require for per ton of Maximum daily

Exterior paint Interior paint availability (tons)
Raw material M1 6 4 24
Raw material M2 1 2 6
Profit per ton ($1000) 5 4

The maximum daily demand for interior product is 2 tons. The company wants to determine the
daily amounts of interior and exterior paints to be produced to maximize the total daily profit.
Formulate this problem as a linear programming problem (LPP).

i. Decision variable: The decision variables refer to those quantities we seek to determine in order
to solve the problem. These variables represent the amount of a resource to use or the level of some
activity for best outcome. The decision variables are usually interrelated with respect to the
utilization of available resources. Defining the decision variables of a problem is the first and most
crucial step in formulating a problem as a linear program.

In the above example, one has to determine the ‘daily amounts of exterior and interior paints’ to be
produced so that the total daily profit is maximized. So there are two decision variables, each of
them represents the ‘daily amounts’ of paints to be produced.
Notation: or , … Like, let the daily amounts of exterior and interior paints to be
produced are ton and ton respectively to maximize the total profit.

ii. Objective (goal): An LPP always has clearly identifiable and quantifiable goal or objective that
could be maximization of profit/sales, minimization of cost or time, etc. The objective or goal is
represented in a form of a linear function of the decision variables known as objective function
which has to be optimized.

In the above example, the objective is to maximize the total daily profit. Profit per ton of exterior
and interior paints is given. So the objective function will be which we have to be
maximized.

iii. Constraints: Constraints are a set of linear equations and/or inequalities in terms of the
decision variables describing the limits on the available resources (e.g., money, amount of raw
materials, number of working days, volume, space, etc.).

In the above example, maximum daily availabilities for the two types of raw materials create a set
of constraints. It is given that maximum daily availability of raw material M1 is 24 tons. It is given
that 6 tons and 4 tons of raw material M1 are required for production of per ton of exterior and
interior paints respectively. So the mathematical form of this constraint will be
Similarly, the limitation on availability of raw material M2 will create another constraint (write
yourself). Again the maximum daily demand for interior product is 2 tons which means .

 Mathematical formulation of a problem as LPP:

Next we summarize the requirements for formulation of a problem as an LPP:

 There must be a well-defined objective/goal (e.g., maximization of profit/sales,

minimization of time or cost, etc.).
 There must be some constraints (due to the limited resources).
 There must be alternative courses of action. For instance, in Ex. 2, there are three
alternatives (magazines) to place the advertisements.
 The decision variables should be interrelated and non-negative.
 The objective function and the constraints are linear expressions in terms of the decision
variables.

The formulation of the problem in Ex.1 as an LPP is given as follows. Let the daily amounts of
exterior and interior paints to be produced are ton and ton respectively to maximize the total
profit. That is we have to find the values of and so as to:

Maximize (Objective function)

Subject to the constraints:

(Non-negativity condition)
Assumptions in LP models:

Proportionality, additivity, continuity, certainty, and finite choice.

Formulate the following problems as LPP:

Ex. 2. (Media selection problem) The owner of a sports company wishes to determine how many
advertisements to place in the selected three magazines A, B and C. His objective is to advertise in
such a way that total exposure to principle buyers of expensive sports good is maximized. Exposure
in any particular magazine is the number of advertisements placed multiplied by the number of
principle buyers. The following data may be used:

Magazine
A B C

Principle Buyers 20000 15000 8000

Cost per advertisement (Rs.) 8000 6000 5000

The budget amount is Rs. 2 lakh for the advertisements. The limitation on number of
advertisements for the magazine is that A can receive at most 20 advertisements, and that B and C
each have at least 8 advertisements.

Ex. 3. (Blending problem) An animal feed company must produce 200 lbs of a mixture containing
the ingredients X1 and X2. X1 costs Rs. 3 per lb and X2 costs Rs. 8 per lab. Not more than 80 lbs of
X1 can be used and minimum quantity to be used for X2 is 60 lbs. Formulate an LP model to find
how much of each ingredient should be used if the company wants to minimize the cost.

Ex. 4. (Product-mix problem) A furniture company produces inexpensive tables and chairs. The
production process for each is similar in that both require a certain number of hours of carpentry
work and a certain number of labour hours in the painting department. Each table takes 4 hours of
carpentry and 2 hours in the painting department. Each chair requires 3 hours of carpentry and 1
hour in the painting department. During the current production period, 240 hours of carpentry time
are available and 100 hours in painting is available. Each table sold yields a profit of Rs. 140; each
chair produced is sold for a Rs. 100 profit. The company wants to find the best combination of
tables and chairs to manufacture in order to reach the maximum profit. Formulate the problem as
LPP.

Standard form of Linear Problem (LP):

The following LPP is a problem of decision variables and constraints. That is the constraints
are a system of linear equations with variables and equations.

Minimize/Maximize

Subject to
Example: The following LPP is in standard form

Maximize
Subject to ,

Converting an LPP to standard form:

1. If an inequality constrain is type, then to make it an equation, a non-negative variable is
added to left-hand side of the constraint. This new variable is called slack variable.

2. If an inequality constrain is type, then to make it an equation, a non-negative variable is

subtracted from left-hand side of the constraint. This new variable is called surplus variable.
An Example: Convert the following problem into standard form:

Minimize
Subject to ,

Standard form:

Minimize
Subject to

Here and are slack variables and is surplus variable.