Chapter Two

Linear Programming

Amanuel E.
Introduction to Linear Programming
 The term linear programming refers to a mathematical
techniques for determining the optimum allocation of
resources and obtaining a particular objective when there
are alternative uses of the limited or constrained
resources.
 Linear programming models are mathematical
representations of LP problems.
 Linear programming models have certain characteristics
in common.
Components of LP Models
1) Objective Function
 The objective in problem solving is the criterion by
which all decisions are evaluated.
 In linear programming models, a single, quantifiable
objective must be specified by the decision maker.
 Because we are dealing with optimization, the objective
will be either maximization or minimization.
 Hence, every LP problem will be either maximization or a
minimization problem.
 Cont’d…

2) Decision variables
 They represent unknown quantities to be solved for.
 The decision maker can control the value of the objective,
which is achieved through choices in the levels of decision
variables.

For example, how much of each product should be produced

in order to obtain the greatest profit?
 Cont’d …
3) Constraints
 Refers to restrictions or limits coming from a variety of sources.
 The restrictions may reflect availabilities of resources (e.g., raw
materials, labor time, etc.)

 Constraints can be arranged into three groups:

1. System constraints – involve more than one decision variable,
2. Individual constraints – involve only one variable, and
3. Non-negativity constraints – specify that no variable will be allowed
to take on a negative value.
 Cont’d …
4. Parameters

 The objective function and the constraints consist of

symbols that represent the decision variables (e.g., X1, X2,
etc.) and numerical values called parameters.
 The parameters are fixed values that specify the impact that
one unit of each decision variable will have on the objective
and on any constraint it pertains to as well as the numerical
value of each constraint.
A Model of Linear Programming Problem
 Assumptions of LP Models
1. Linearity/Proportionality: This assumption implies that the relationship between

inputs and outputs is linear. In other words, changes in inputs lead to proportional changes

in outputs. For example, if producing twice as many units of a product requires twice as

much raw material, then the relationship between production and resources is

proportional.

2. Additivity: This assumption states that the total contribution of each decision variable is

the sum of its individual contributions. It means that the overall objective function and

constraints can be expressed as the sum of the contributions of each decision variable. For

instance, if producing two different products generates revenue, the total revenue is the

sum of the revenue from each product.

Cont’d…

3. Divisibility: Linear programming assumes that decision variables can take any real
value within a feasible range. It implies that fractional amounts of resources or outputs
are permissible. For example, in production planning, it's assumed that you can
produce 1.5 units of a product if needed.

4. Certainty: Linear programming models assume that all parameters, such as

coefficients in the objective function and constraints, are known with certainty and
remain constant throughout the optimization process. This assumption simplifies the
modeling process but might not always reflect real-world uncertainties.

5. Non-negativity: Decision variables are assumed to be non-negative, meaning they

cannot take negative values. This assumption aligns with practical constraints; for
example, you can't produce a negative quantity of a product or allocate a negative
amount of resources.
 Formulating LP Models

Steps in formulating LP models:

1. Determine the objective function.

2. Identify the decision variables/Assign variables for the

unknowns.

3. Develop mathematical expression of the objective function.

4. Identify the constraints.

5. Develop and Validate the model.

 Example 1. Production (Maximization)

1. A company manufactures two products X and Y whose profit

contributions are Birr. 10 and Birr. 20 respectively. Product X requires 5
hours on machine I, 3 hours on machine II and 2 hours on machine III.
The requirement of product Y is 3 hours on machine I, 6 hours on
machine II and 5 hours on machine III. The available capacities for the
planning period for machine I, II and III are 30, 36 and 20 hours
respectively.

Required
A. Formulate the LP Problem Model
 Solving Linear Programming Problems

The two methods;

1. Graphical Approach

2. The simplex Approach

 1. Graphical Approach
 Used to solve a problem involving only two decision variables.

 In this method X1 is represented on X-axis and X2 on Y-axis.

 Steps in graphical Approach

Step 1. Change the inequality into equality (Standard form).
Step 2. Plot each of the constraints.
Step 3. Identify the feasible region.
Step 4. Find the Corner Points and the Coordinates.
Step 5. Determine the optimal solution.
Step 6. Calculate the slack (Unused resources).
Step 7. Interpret the result.
 Cont’d…
Maximization Problem: Example
 A firm is about to start production of two new microcomputers, X1 and X2.
Each requires limited resources of assembly time, inspection time, and
storage space. The manager wants to determine how much of each
computer to produce in order to maximize the profit generated by selling
them. Other relevant information is given;
Availability of company resources:

Required
A. Formulate the LPM.
B. Solve by Graphic Approach.
C. Solve by Simplex Approach
 Maximization Problem: Example
Example 1: Consider two models of color TV sets, models A and B, is produced by a company to

maximize profit. The profit realized is Birr. 300 from set A and Birr.250 from set B. The resource

requirement of model A is 2 hours of labor and (1) one hours of machine time. Where as, the

resource requirements of model B is that one hours of labor hour and 3 hours of machine.

The limitations are:

a) Availability of only 40 hours of labor each day in the production department (a labor

constraint).

b) A daily availability of only 45 hours of machine time (a machining constraint).

c) Inability to sell more than 12 set of model A ( a marketing constraint).

The problem is to determine how many sets of each model to produce each day so that the total

profit will be as large as possible (Solve Using Graphic Approach).

 Graphic Approach: Minimization Problem

• The constraints in minimization problem are usually of the

greater than or equal to type instead of less than or equal to.

• This causes the feasible solution space to be outside of the

polygon instead of inside.

• The objective function is to minimize cost.

Minimization…..

Example 1:

Minimize Z = 8X1 + 12 X2

Subject to
𝟓𝒙𝟏 + 𝒙𝟐 ≥ 20
𝟒𝒙𝟏 + 𝟑𝒙𝟐 ≥ 𝟐𝟒
𝒙2 ≥ 2
𝒙1,𝒙2 ≥ 0
 Minimization…..
Example 2: Suppose a machine shop has two different types of machines, machine 1, and
machine 2, which can be used to make a single product. These machines vary in the
amount of product produced per hour, in the amount of labor used, and in the cost of
operation. Assume that at least a certain amount of product must be produced and that
we would like to utilize at least the regular labor force.

How much should we utilize each machine in order to minimize total costs and still meet
the requirements?
 Exercise
3F Furniture manufacturer produces two products: Beds and Chairs. Each
unit of Bed requires 3 hrs in molding unit, 4hrs in painting unit, and 1 hr in
finishing. On the other hand, each unit of Chair requires 3 hrs in molding
unit, 2 hrs in the paint shop and 2 hours in finishing. Each week, there are
210 hrs available in molding, 200hrs in painting, and 120 hrs in finishing
unit. The demand for Chairs cannot exceed 40 units per week. Each unit of
Bed contributes Birr 20 to profit, while each unit of chair contributes Birr
30.

Determine the number of units of each product per week to maximize the
profit? (Use Graphic Method to solve the given LP problem).
 Simplex Approach
Introduction
 The graphical method is restricted to problems with two
decision variables.
 When the number of variables and the number of
constraints increase, it becomes difficult to visualize the
solution space.
 As a result, the graphical method cannot be employed
successfully in such cases.
 In order to avoid this limitation, the simplex method or
step by step method is efficient method for solving linear
programming problems, which was developed by George
B. Datzing in 1947.
Steps In Simplex Method
Step 1. Standardize the Problem.
 The first step is to change all the inequality constraints
into equalities.
 To convert the inequality constraint into equality, we
introduce slack or surplus/Artificial variables.
1. Slack variables represent unused capacity
2. Surplus variables represent excess amount and
3. Artificial variables do not represent any quantity relating to the
decision problem.
The contribution (cost or profit) associated with the slack
and surplus variables is zero.
Con’d…

Step 2. Setting Up the Initial Tableau

 The simplex technique involves generating a series of

solutions in tabular form, called tableaus.

 The term tableau refers to the special simplex tables,

which are constructed to keep track of the computations,
(tabulated coefficients).
 Cont’d…
Step 3: Determine the entering variable (EV), the pivot column
(PC), the pivotal row (PR), the leaving variable (LV), and the pivot
element (PE).
 Entering variable is the variable with the largest positive value in
the Cj - Zj row of the simplex table.
 Pivot column is the column with the largest positive entry in the
Cj - Zj row.
 Pivotal row is the row with the minimum positive Replacement
Ration.
 Leaving Variable is the corresponding variable in the pivot row.
Cont’d…

Step 4: Find unique vector for the new basic variable

using elementary row operations on the pivot column.

Step 5: Find the optimal solution by computing the Cj-

Zj net evaluation row.
 For maximization problem the solution optimal when all Cj-

Zj row values contain negatives or zeros.

 For minimization problem the solution optimal when all Cj-

Zj row values contain positives or zeros.

Example (Maximization Case)

• Solve by using Simplex Method.