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Lecture 3

This document provides a summary of a lecture on linear programming (LP) cost minimization problems. It discusses how to formulate an LP problem to minimize cost subject to multiple constraints. The steps include converting inequality constraints to equalities, plotting the constraint lines on a graph to identify the feasible region, and evaluating the objective function at corner points to find the minimum cost solution. An example problem is provided to minimize feeding costs for farm animals subject to nutrient requirements. The optimal solution is found by graphing the constraints and evaluating the objective function at corner points B, C, and E, with the minimum at corner B.

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degife desha
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91 views

Lecture 3

This document provides a summary of a lecture on linear programming (LP) cost minimization problems. It discusses how to formulate an LP problem to minimize cost subject to multiple constraints. The steps include converting inequality constraints to equalities, plotting the constraint lines on a graph to identify the feasible region, and evaluating the objective function at corner points to find the minimum cost solution. An example problem is provided to minimize feeding costs for farm animals subject to nutrient requirements. The optimal solution is found by graphing the constraints and evaluating the objective function at corner points B, C, and E, with the minimum at corner B.

Uploaded by

degife desha
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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Quantitative Analysis for Management Decision

Lecture 3
Linear programing (LP)
Cost Minimization
Course leader : Shewayirga Assalf (Ass.Pro.)
LP: Cost Minimization

 A minimization problem minimizes the value of the


objective function rather than maximizing it.
Minimization problems generally involve finding the least-
cost way to meet a set of requirements.
Problem of Minimizing C

Minimize C= 50x1 + 20x2


Subject to
2x1 – x2> 0
x1 + 4x2 > 80
0.9x1 + 0.8x2 >40
Where x1 ,x2 > 0 non- negativity condition.
Solution:
 The first step is skipped as LP problem is already
formulated. We will follow other steps simultaneously. In
constraint (i) 2x1 –x2 > 0 there is no constant value, hence
it must pass through the origin. First convert it into
equality.

2x1 –x2 > 0 . Now give x1 any arbitrary value.

When x1 =0, x2=0

x1 =1, x2=2

x1 =2, x2=4 and so on.


nt

d and get line I drawn in the graph
We draw the line with these coordinates
passing through origin.
 Now, convert constraint (ii) in equality
x1 + 4x2 = 80
When x1 =0, x2=20
X2 =0, x1=80
 We draw the line II (80, 20) as shown in graph.
 Now, convert constraint (iii) in equality
0.9x1 + 0.8x2 =40
 When x1 =0, x2=50
X2 =0, x1=44.4
 We draw line III (44.4, 50) as shown in graph.
contd
contd

 For feasible area we need to examine all the there constraints


equations (Note, all are > type)

 In equation (i) if we move vertically upward, meaning x1=o and


x2 increasing, the equation becomes negative or less than, which
is not permitted. Hence feasible area should be on RHS.

 In equation (ii), the feasible area should be above the line


because it is greater than the sum of x1 and x2.

 Similarly in equation (iii) it is on the RHS therefore feasible area


(region) is indicated by three rows or shading and extends upto
infinity.
Contd
 Now we have to find out different values of Z at different corner
points, B,C,E by finding out their coordinates (x1, x2) then putting
them in objective function Z. The point which gives the minimum
value is the answer.

At corner B x1=16,x2=32 therefore Z= 1440


At corner C x1=34.4,x2=11.4 therefore Z= 1948

At corner E x1=80,x2=0 therefore Z= 4000


From the above we can see that minimum value of Z is at point B
where x1=16 and x2 =32 and hence it is the answer.
Class exercise
feeding farm animals.

 Animals need:

 14 units of nutrient A, 12 units of nutrient B, and 18 units of nutrient C.

Two feed grains are available, X and Y.

 A bag of X has 2 units of A, 1 unit of B, and 1 unit of C.

 A bag of Y has 1 unit of A, 1 unit of B, and 3 units of C.

 A bag of X costs $2. A bag of Y costs $4.

 Required: 1. Minimize the cost of meeting the nutrient requirements.

2. Solve the problem graphically

3. Find the optimal solution in the graph


Answer
Feed Nutrients cost
grains A B C
X 2 1 1 2
Y 1 1 3 4
Total 14 12 18
needs
Change inequalities in to equalities

X1 X2 X1 X2
X1 X2
0 14 0 12
7 0 0 6
12 0
18 0

(7, 14) (12, 12) (18, 6)


Plot the graph
X2
14 A 2X1+X2= 14

12

10
2X1+X2= 14
B
8

4 C
2X1+X2= 14
2
D
X1
0 2 4 6 8 7 10 12 14 16 18
Optimum solution
Special Cases in Graphical solution
1. Redundant Constraint
• If a constraint when plotted on a graph doesn’t form part of the
boundary making the feasible region of the problem that constraint
is said to be redundant.
• Example:
Cont ..
2. Multiple optimal Solutions
• /Alternative optimal solutions/
• -This is a situation where by a LPP has more than
one optimal solution.
• Multiple optimal Solutions will be found if two
corers give optimal solution, then the line segment
joining these points will be the solution.
Cont….
• ==>We have unlimited number of optimal solution with out increasing or
decreasing the objective function.
•
• Example:
• The information given below is for the products A and B.
• __________________________________________________________________
___
Machine hours per week Maximum available
• Department Product A Product B
per week
• __________________________________________________________________
___
• Cutting 3 6 900
• Assembly 1 1 200
• Profit per unit $8 $16
• __________________________________________________________________
___
• Assume that the company has a marketing constraint on selling products B and
therefore it can sale a maximum of 125units of this product.
Cont…
• Required:
a. Formulate the LPP of this problem
b. Find the optimal solution
Solution:
• Let X1 =The No of units f product A produced per week
• X2 =The No of units f product B produced per week
• The LPP Model of the problem is:
Cont…
cont.
Corners Coordinates MaxZ=8 X1 + 16X2

A (0, 0) 0

B (0, 125) 2000

C (50, 125) 2400

D (100, 100) 2400

E (200, 0) 1600

Interpretation:

Both C and D are optimal solutions. Any point on the line segment CD will also lead to the same optimal solution.

==>Multiple optimal solutions provide more choices for management to reach their objectives.

3. Infeasible Solution
A solution is called feasible if it satisfies all the constraints and the constraints and non-negativity condition.

However, it is sometimes possible that the constraints may be inconsistent so that there is no feasible solution to the problem. Such a situation is called infeasibility.

Example:

MaxZ=20X1 +30X2

St:

2X1 +X2 < 40

4X1 +X2 < 60

X1 > 30

X1 , X2 > 0

Solution:
cont

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