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Lecture 2-Linear Programming

The document discusses linear programming, focusing on model formulation and graphical solutions, which include decision variables, objective functions, constraints, and parameters. It provides examples of maximization and minimization models, illustrating how to define decision variables, formulate objective functions, and establish constraints using a pottery company and a farmer's fertilizer problem. The examples demonstrate the process of solving linear equations and graphing constraints to find optimal solutions.

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0% found this document useful (0 votes)
1 views4 pages

Lecture 2-Linear Programming

The document discusses linear programming, focusing on model formulation and graphical solutions, which include decision variables, objective functions, constraints, and parameters. It provides examples of maximization and minimization models, illustrating how to define decision variables, formulate objective functions, and establish constraints using a pottery company and a farmer's fertilizer problem. The examples demonstrate the process of solving linear equations and graphing constraints to find optimal solutions.

Uploaded by

nicole angcana
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Lecture 2

LINEAR PROGRAMMING:
MODEL FORMULATION and GRAPHICAL SOLUTION

Model Formulation
• Consists of certain common components and characteristics.
• Include decision variables (objective function) and model constraints (parameters).
• Decision variables are mathematical symbols that represent levels of activity by the
firm.
• Objective functions are linear mathematical relationship that describes the objective
of the firm in terms of the decision variables. It is always consisting of either
maximizing or minimizing some value (e.g. maximizing profit, minimizing cost). It is
a linear relationship that reflects the objective of an operation.
• Constraint is a linear relationship that represents a restriction on decision making.
Restrictions can be in the form of limited resources or restrictive guidelines.
• Parameters are numerical values that are included in the objective functions and
constraints.

Maximization Model Example


• A pottery company employs skilled artisans to produce clay bowls and mugs with
authentic design and colors. The two primary resources used by the company are
special pottery clay and skilled labor. Given these limited resources, the company
desires to know how many bowls and mugs to produce each day in order to
maximize profit. The diagram below shows the scenario.
The two products have the
following resource requirements for
production and profit per item produced.

Resource Requirement
Product Labor Clay Profit
(Hr/unit) (lb/unit)
Bowl 1 4 40
Mug 2 3 50
There are 40 hours of labor and
120 pounds of clay available each day for
production.

❖ Step 1: Define the Decision Variable


Problem: How many bowls and mugs to produce
The two decision variables represent the number of bowls and mugs to
be produced on a daily basis.
Let x1 is the number of bowls to produce; and
x2 is the number of mugs to produce

❖ Step 2: Define the objective function


Objective Function: Maximize the profit
The company’s profit is the sum of the individual profit gained from
each bowl and mug.
Maximize Z = $40x1 + $50x2; where
Z is the total profit per day
$40x1 is the profit from bowls
$50x2 is the profit from mugs

❖ Step 3: Define the constraints.


Constraints: The resources (clay and labor) available.
There are two limited resources used in the problem, the clay and the
labor.

Based on the table, it needs 1 hour to produce a bowl (x1) and 2 hours
to produce a clay (x2). This means that
1x1 + 2x2 ≤ 40

On the other hand, it needs 4 lbs. of clay to make a bowl (x 1) and 3 lbs.
of clay to make a mug (x2). This means that
4x1 + 3x2 ≤ 120

To find one of the optimal solution, let us transform each inequality to


equations.
1x1 + 2x2 = 40
4x1 + 3x2 = 120

Solving the linear equations by systems of equations:


1x1 + 2x2 = 40 (1)
4x1 + 3x2 = 120 (2)

(-4)[1x1 + 2x2] = [40](-4)


-4x1 – 8x2 = -160 (3)
4x1 + 3x2 = 120
-5x2 = -40 (4)
−5𝑥2 −40
=
−5 −5
x2 = 8

1x1 + 2(8) = 40
1x1 + 16 = 40
1x1 = 40 – 16
1x1 = 24

The maximum profit (hypothetically) is obtained by the equation in Step


#2:
Maximize Z = $40x1 + $50x2
Maximize Z = $40(24) + $50(8)
Maximize Z = $960 + $400
Maximize Z = $1 360

To verify, we can graph the given inequalities.


Hint: Identify and draw constraints
To draw constraint x1 + 2x2 ≤ 40→(1)
Treat it as x1 + 2x2 = 40
When x1=0 then x2=?
⇒(0)+2x2 = 40
⇒2x2 = 40
⇒x2 = 40/2 =20
When x2=0 then x1=?
⇒x1 + 2(0) = 40
⇒x1 = 40

x1 0 40
x2 20 0

Put x1 = 0, x2 = 0 (origin) in x1 + 2x2 ≤ 40, then 0 + 0 ≤ 40, which is true. The


half plane containing the origin is the region of the solution set of the
inequation x1 + 2x2 ≤ 40.

To draw constraint 4x1 + 3x2 ≤ 120 → (2)


Treat it as 4x1 + 3x2 = 120
When x1=0 then x2=?
⇒4(0) + 3x2 = 120
⇒3x2 = 120
⇒x2 = 120/3 = 40

When x2 = 0 then x1 = ?
⇒4x1 + 3(0) = 120
⇒4x1 = 120
⇒x1 = 120/4 = 30

x1 0 30
x2 40 0

Put x1 = 0, x2 = 0 (origin) in 4x1 + 3x2 ≤ 120, then 0 +


0 ≤ 120, which is true. The half plane containing
the origin is the region of the solution set of the
inequation 4x1 + 3x2 ≤ 120

The graph on the left shows the feasible area, these


are the sets of possible solutions on the given
problem. The three points (red, green and blue) are
what we called the extreme points. These extreme
points are corner points on the boundary of the
feasible solution area.
Minimization Model Example
• A farmer is preparing a plant crop in the spring and needs to fertilize a field. There
are two brands of fertilizer to choose from. Brand X and Brand Y. Each brand yields
a specific amount of nitrogen and phosphate per bag, as follows:
Chemical Contribution
Brand Nitrogen (lbs./ bag) Phosphate (lbs./ bag)
Brand X 2 4
Brand Y 4 3

The farmer’s field requires at least 16 pounds of nitrogen and 24 pounds of


phosphate. Brand X costs Php 150 per bag, and Brand Y costs Php 75. The farmer
wants to know how many bags of each brand to purchase in order to minimize the
total cost of fertilizing.

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