Lecture 2-Linear Programming
Lecture 2-Linear Programming
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.
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.
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
1x1 + 2(8) = 40
1x1 + 16 = 40
1x1 = 40 – 16
1x1 = 24
x1 0 40
x2 20 0
When x2 = 0 then x1 = ?
⇒4x1 + 3(0) = 120
⇒4x1 = 120
⇒x1 = 120/4 = 30
x1 0 30
x2 40 0