Quantitative Methods for Decision Making:

SYSTEM OPTIMISATION:

LINEAR PROGRAMMING: GRAPHICAL

METHOD 1

Adrian Bown

Room: CC NT 101 / Tel. Ext. 27629

• Linear Programming is a method for determining the
optimal solution (i.e. the minimum use of resources or the
maximum monetary profit) for a system whose parameters
(resources and constraints) can be represented by a series
of linear equations.

• There are numerous different methods for linear

programming which range from the simple to the complex

• Two relatively simple methods will be studied over the next

three weeks - The Graphical and Simplex Methods
There are 5 stages involved in solving any Linear Programming

problem. These are :-

• Formulate the problem

• Construct a model

• Derive a solution

• Test and evaluate that solution

• Maintain the solution

There are 5 stages involved in solving any Linear Programming

problem. These are :-

• Formulate the problem

• Construct a model

• Derive a solution

• Test and evaluate that solution

• Maintain the solution

Example 1 _ Maximising Profit:
• Consider a generalised production-based system in which a set of
resources are to be allocated to a number of commodities
• It is assumed that there is a high demand for both commodities and
the objective is to allocate resources such that profit is maximised
• The details of resources, commodities and profit are:

Resource 1, R 1 Resource 2, R 2 Profit

Commodity 1, C 1 3 2 2

Commodity 2, C 2 2 4 3

Maximum
7 10
Resources
• If the system were, say, a consulting structural engineering
company, the resources and commodities might be:

Resource
Design1, R 1 Resource 2, R 2
Drawing Profit

Commodity 1, C 1
Retaining wall 3
3 hours 2
2 hours 2
£ 100

Portal frame
Commodity 2, C 2 2
2 hours 4 3
4 hours £ 150
structure
Maximum 7
Resources 7 hours 10 10
hours
There are 5 stages involved in solving any Linear Programming

problem. These are :-

• Formulate the problem

• Construct a model

• Derive a solution

• Test and evaluate that solution

• Maintain the solution

 R1 R2 Profit

x 3 2 2

y 2 4 3

Maximum Resources 7 10

• Let the production of Commodity 1 = x (i.e. x is the number of

Commodity 1 that are produced) and, similarly, Commodity 2 = y
 R1 R2 Profit

x 3 2 2

y 2 4 3

Maximum Resources 7 10

• Let the production of Commodity 1 = x (i.e. x is the number of

Commodity 1 that are produced) and, similarly, Commodity 2 = y

• An linear equation can be formulated which models the

production constraints of R1
 R1 R2 Profit

x 3 2 2

y 2 4 3

Maximum Resources 7 10

• Let the production of Commodity 1 = x (i.e. x is the number of

Commodity 1 that are produced) and, similarly, Commodity 2 = y

• An linear equation can be formulated which models the

production constraints of R1

• 3x  2y  7
 R1 R2 Profit

x 3 2 2

y 2 4 3

Maximum Resources 7 10

• A similar equation can be formulated for R2

• 2 x  4 y  10
 R1 R2 Profit

x 3 2 2

y 2 4 3

Maximum Resources 7 10

• A similar equation can be formulated for R2

• 2 x  4 y  10

• Least number of commodities that can be made is zero - this

(lower limit) is expressed mathematically as x = 0 and y = 0
 R1 R2 Profit

x 3 2 2

y 2 4 3

Maximum Resources 7 10

• A similar equation can be formulated for R2

• 2 x  4 y  10

• Least number of commodities that can be made is zero - this

(lower limit) is expressed mathematically as x = 0 and y = 0

• Finally, the expression for the profit, P, is: P  2 x  3 y

 R1 R2 P

x 3 2 2

y 2 4 3

Maximum Resources 7 10

• Summary:

– Resource Equation 1: 3 x  2 y  7

– Resource Equation 2: 2 x  4 y  10

– The profit equation: P  2 x  3 y

– As there is only positive production, x  0 and y  0

There are 5 stages involved in solving any Linear Programming

problem. These are :-

• Formulate the problem

• Construct a model

• Derive a solution

• Test and evaluate that solution

• Maintain the solution

The production constraints can be represented graphically by:

– Plotting the two resource constraint equations and shading the

area that is wholly contained within these constraints

– The limits of Resource Equation 1 ( 3 x  2 y  7 ) are:

 Y

3
3x  2y  7
2

0 X
0 1 2 3 4 5 6
The production constraints can be represented graphically by:

– Plotting the two resource constraint equations and shading the

area that is wholly contained within these constraints

– The limits of Resource Equation 1 ( 3 x  2 y  7 ) are:

– If x = 0, y = 3.5

3 x  2 y  7  3 x  2 y  7  2 y  7  y  3.5
 Y

3
3x  2y  7
2

0 X
0 1 2 3 4 5 6
The production constraints can be represented graphically by:

– Plotting the two resource constraint equations and shading the

area that is wholly contained within these constraints

– The limits of Resource Equation 1 ( 3 x  2 y  7 ) are:

– If x = 0, y = 3.5 and, if y = 0, x = 2.33

3 x  2 y  7  3 x  2 y  7  2 y  7  y  3.5

3 x  2 y  7  3 x  2 y  7  3 x  7  x  2.33
 Y

3
3x  2y  7
2

0 X
0 1 2 3 4 5 6
 Y

3
3x  2y  7
2

0 X
0 1 2 3 4 5 6
 Y

6
3x  2y  7
5

3
3x  2y  7
2

0 X
3 x  2 y  70 1 2 3 4 5 6
 Y

3
Feasible domain
2
for production

0 X
0 1 2 3 4 5 6
The production constraints can be represented graphically by:

– Plotting the two resource constraint equations and shading the

area that is wholly contained within these constraints

– The limits of Resource Equation 1 ( 3 x  2 y  7 ) are:

– If x = 0, y = 3.5 and, if y = 0, x = 2.33

– Similarly, the limits of Resource Equation 2 ( 2 x  4 y  10 )

are:

– If x = 0, y = 2.5 and, if y = 0, x = 5
 Y

0 X
0 1 2 3 4 5 6
 Y

0 X
0 1 2 3 4 5 6
• The shaded area that is wholly contained within the

constraints represents the ‘feasible domain’ for production

• Given the current constraints for the system, production is

not possible outside this domain

Maximum profit _ Method 1 : Profit Line Method

• The objective is to find the profit line that maximises P and remains

within, or at the boundary of, the feasible (shaded) region.

• The profit equation (profit line) can be plotted by selecting a specific

profit value, e.g. 12

• The profit equation: P  2 x  3 y

– Therefore, if P = 12 and x = 0, y = 4 and, if y = 0, x = 6

 Y

0 X
0 1 2 3 4 5 6
Maximum profit _ Method 1 : Profit Line Method

• The objective is to find the profit line that maximises P and remains

within, or at the boundary of, the feasible (shaded) region.

• The profit equation (profit line) can be plotted by selecting a specific

profit value, e.g. 12

• The profit equation: P  2 x  3 y

– Therefore, if P = 12 and x = 0, y = 4 and, if y = 0, x = 6

– Similarly, if P = 10 and x = 0, y = 3.33 and, if y = 0, x = 5

 Y

0 X
0 1 2 3 4 5 6
Maximum profit _ Method 1 : Profit Line Method

• The objective is to find the profit line that maximises P and remains

within, or at the boundary of, the feasible (shaded) region.

• The profit equation (profit line) can be plotted by selecting a specific

profit value, e.g. 12

• The profit equation: P  2 x  3 y

– Therefore, if P = 12 and x = 0, y = 4 and, if y = 0, x = 6

– Similarly, if P = 10 and x = 0, y = 3.33 and, if y = 0, x = 5

– And, if P = 8 and x = 0, y = 2.67 and, if y = 0, x = 4

 Y

0 X
0 1 2 3 4 5 6
• The solution for the maximum profit, Pmax, must be on the

boundary of the feasible region

• In order to determine the allocation of resources associated with

Pmax the co-ordinates of the first intersect between the profit line

and feasible region must be found; this can be read from the

graph
 Y

0 X
0 1 2 3 4 5 6
Maximum profit _ Method 2 _ Corner-point Method

• Alternatively, the maximum profit can be calculated

mathematically by calculating the co-ordinates of the corners of
the feasible domain

• The corners created by pairs of intersecting straight lines are

solved simultaneously
 Y

0 X
0 1 2 3 4 5 6
• Resource Equation 1: 3 x  2 y  7

• Resource Equation 2: 2 x  4 y  10

Corners of shaded region

Profit , P
x y ( P  2x  3y )

0 2.5 7.5
1 2 8
2.33 0 4.66

• The solution is: Pmax = 8, with resources of x = 1 and y = 2

• Although the solution which involves plotting a series of profit
lines to identify the maximum profit appears crude and very
‘hit and miss’ compared to the second method it can be useful
if there are many resources

• For instance, six resources might produce 15 pairs of

simultaneous equations which must all be solved

• If the profit line is drawn, however, it can indicate which

combination(s) are likely to produce the optimal solution
 Y

0 X
0 1 2 3 4 5 6
Example 2 _ Minimising Cost:
• A manufacturer has the choice of two products; x and y
• For the same volume, the two products provide different quantities
of the same three chemicals – see Table below
• Based on the prices given in the table, determine how much of each
product should be used to minimise manufacturing costs

Chemical A Chemical B Chemical C Cost

Product x 4 kg / m 3 8 kg / m 3 6 kg / m 3 £ 8 / m3

Product y 8 kg / m 3 6 kg / m 3 7 kg / m 3 £ 4 / m3

Minimum amount
of chemicals reqd. 32 kg / m 3 48 kg / m 3 42 kg / m 3
 Chemical A Chemical B Chemical C Cost

Product x 4 kg / m 3 8 kg / m 3 6 kg / m 3 £ 8 / m3

Product y 8 kg / m 3 6 kg / m 3 7 kg / m 3 £ 4 / m3

Minimum amount
of chemicals reqd. 32 kg / m 3 48 kg / m 3 42 kg / m 3

• The ‘ resource ‘ equations are: A : 4 x  8 y  32

B: 8 x  6 y  48
C: 6 x  7 y  42
 Chemical A Chemical B Chemical C Cost

Product x 4 kg / m 3 8 kg / m 3 6 kg / m 3 £ 8 / m3

Product y 8 kg / m 3 6 kg / m 3 7 kg / m 3 £ 4 / m3

Minimum amount
of chemicals reqd. 32 kg / m 3 48 kg / m 3 42 kg / m 3

• The ‘ resource ‘ equations are: A : 4 x  8 y  32

B: 8 x  6 y  48
C: 6 x  7 y  42
Note: As this is a minimisation problem, the operator within
the resource equations are ‘greater than’. This is the opposite
of maximisation problems, where the operators are ‘less than’
 Chemical A Chemical B Chemical C Cost

Product x 4 kg / m 3 8 kg / m 3 6 kg / m 3 £ 8 / m3

Product y 8 kg / m 3 6 kg / m 3 7 kg / m 3 £ 4 / m3

Minimum amount
of chemicals reqd. 32 kg / m 3 48 kg / m 3 42 kg / m 3

• The ‘ resource ‘ equations are: A : 4 x  8 y  32

B: 8 x  6 y  48
C: 6 x  7 y  42

• Least number of either product that can be used is zero: x = 0

and y = 0
• The cost equation is : C  8 x  4 y
The three Resource Equations are:
A: 4 x  8 y  32
B: 8 x  6 y  48
C: 6 x  7 y  42

There limits are:

– A: x = 0, y = 4 and, if y = 0, x = 8

– B: x = 0, y = 8 and, if y = 0, x = 6

– C: x = 0, y = 6 and, if y = 0, x = 7
 Y

0 X
0 1 2 3 4 5 6 7 8
 Y

7
Feasible domain
6

0 X
0 1 2 3 4 5 6 7 8
 Y

7
Feasible domain
6

0 X
0 1 2 3 4 5 6 7 8
 Y

7 ‘cost’ line
6

0 X
0 1 2 3 4 5 6 7 8
The three Resource Equations are:
A: 4 x  8 y  32
B: 8 x  6 y  48
C: 6 x  7 y  42

There limits are:

– A: x = 0, y = 4 and, if y = 0, x = 8

– B: x = 0, y = 8 and, if y = 0, x = 6

– C: x = 0, y = 6 and, if y = 0, x = 7

Based on an initial guess of c = 40, the limits of the cost equation

( C  8 x  4 y ) are: x = 0, y = 10 and, if y = 0, x = 5
 Y

7 ‘cost’ line
6

0 X
0 1 2 3 4 5 6 7 8
 Y
First value in feasible
8
domain ( x = 0, y = 8 )

0 X
0 1 2 3 4 5 6 7 8
 Chemical A Chemical B Chemical C Cost

Product x 4 kg / m 3 8 kg / m 3 6 kg / m 3 £ 8 / m3

Product y 8 kg / m 3 6 kg / m 3 7 kg / m 3 £ 4 / m3

Minimum amount
of chemicals reqd. 32 kg / m 3 48 kg / m 3 42 kg / m 3

If the first value in the ‘feasible domain’ occurs at x = 0, y = 8 ,

the minimum cost is: C  8 x  4 y  8  0   4  8   £ 32

[for completeness, the other points are: x = 4.2, y = 2.4, C = £

43.2 ; x = 5.6, y = 1.2, C = £ 49.6 ; and, x = 8, y = 0, C = £ 64 )
COMPLETE THE
TUTORIAL
QUESTIONS