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Chapter 3 Notes-Or

Chapter 3 discusses solving linear programming problems using graphical methods, specifically the extreme point approach. It outlines the steps for graphing constraints, identifying feasible regions, and calculating optimal solutions through examples involving solar panel production and mining operations. The chapter emphasizes maximizing revenue and minimizing costs while adhering to resource constraints.

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2 views

Chapter 3 Notes-Or

Chapter 3 discusses solving linear programming problems using graphical methods, specifically the extreme point approach. It outlines the steps for graphing constraints, identifying feasible regions, and calculating optimal solutions through examples involving solar panel production and mining operations. The chapter emphasizes maximizing revenue and minimizing costs while adhering to resource constraints.

Uploaded by

christianeshetu953
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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CHAPTER 3: LINEAR PROGRAMMING: GRAPHIC SOLUTION

Learning Objective:
 Solve LPPs using the graphic the extreme point approach
 Identify special cases of solution in the graphic approach

3.1 Graphing LPM

Graphical linear programming is a relatively straight forward method for solving LP’.
This method can be used only to solve problems involving 2 decision variables. The
graphic method provides visual portrayal of many important concepts that relate to LP.
Generally there are 2 methods in the graphic approach: the objective function and
extreme approach. In the objective function approach, we draw the graphs of the
objective function that are parallel to each other and are passing through corner points
on the coordinate plane containing the graphs of constraints and solution region. The
farthest and last point in the solution region that the objective function line would touch
is the optimal point. Here after the second approach is discussed.
The steps of graphic (extreme point) method can be summarized as follows

1. Plot each constraint after writing it as equality

2. Identify the feasible solution region that satisfies all constraints

3. Locate the corner points of the feasible region

4.Calculate the value of the objective function at the corner points and pick the optimal
(best) value (solution) depending on the objective

Below are two illustrations based on examples 1 & 3 from your example sheet

Examples

1. Daylight Engineering produces two types of solar panels: A and B. The raw material
requirements, space needed for storage, production rates, and selling prices for
these products are given in the following table:
Solar Panels A B
Selling Price ($/unit) 13 11
Storage Space (m2/unit) 4 5
Raw material (Kg/unit) 5 3
Production rate (units/hr.) 60 30

The total amount of raw material available per day for both products is 1575kg. The
total storage space for all products is 1500 m2, and a maximum of 7 hours per day
can be used for production. All products manufactured are shipped out of the
storage area at the end of the day. Therefore, the two products must share the total
raw material, storage space, and production time. The company wants to determine
how many units of each product to produce per day to maximize its total revenue.

Problem Def: Determine the mix of Solar panels A and B to be produced per day to
maximize revenue given the limitations.

Let the decision variables, X1, X2 be the number of units of solar panels type A and B,
respectively, produced per day.

Maximize Z=13X1+11X2 (Revenue)

Subject to:
1. 4x1+5X2<1500 (Storage space)
2. 5X1+3X2<1575 (Raw material)
3. 1X1+2X2<420 (Production time)
X1, X2 >0 (Non-negativity Constraints)

Find X & Y intercepts: 1. (375,0) (0,300) 2. (315,0); (0,525) 3. (420,0); (0,210)


Corner Points 13X1+11X2 = Revenue
A (0,0) 13(0)+11(0)= 0
B (315,0) 13(315)+11(0)= 4,095
C (0,210) 13(0)+11(210)= 2,310
D (270,75) 13(270)+11(75)=4,335 (Solve simultaneously)

Assess resource utilization @ optimal solution:

4(270)+5(75)=1455 <1500 (Storage space) 1500-1455=45 Slack


5(270)+3(75)=1575 <1575 (Raw material) 1575-1575=0
1(270)+2(75)=420 <420 (Production time) 420-420=0
Optimal Feasible Solution: X1=270, X2=75, S1=45, S2,S3=0 Z*=4335
Interpretation

The company is advised to produce and sell 270 and 75 units of solar panel A & B
respectively, to get maximum revenue of $4,335; in doing so, there will be unused
45m2 storage space while other resources are fully used.

2. A company owns 2 mines: Mine A produces 1 ton of high grade ore, 3 tons of
medium grade ore and 5 tons of low grade ore each day; and mine B produces 2
tons of each of the three grades of ore each day. The company needs 80 tons of
high grade ore, 160 tons of medium grade ore and 200 tons of low grade ore. If it
costs Birr 200 per day to work each mine; find the number of days each mine has to
be operated for producing the required output with minimum total cost.

Minimization Z.: 200X1+200X2 (Cost)


Subject to
1x1+2x2>80;
3x1+2x2>160;
5x1+2x2>200;
All variables>0

X and Y intercepts:
1x1+2x2=80; x1=80, x2=40
3x1+2x2=160; x1=160/3 (53.3), x2=80
5x1+2x2=200 x1=40,x2=100
A: 1x1+2x2=80; 3x1+2x2=160 X1=40, X2=20 Z*=12,000

B: (80,0) Z=16,000 C: (0,100) Z=20000

Optimal feasible Solution: X1=40, X2=20, S1,2=0,S3=0 Z*=12,000

Interpretation

The firm is advised to operate mine A for 40 days and mine B for 20days to attain a
minimum operating cost of 12,000 birr in doing so 40tones of low grade ore will be a
surplus while all other ores will not over produce.

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