II.

Linear Programming: Formulation and Graphical Solution

Formulating LP Models

There are many different types of models. You may be familiar with econometric models, civil-
engineering prototype models, even models of the world. Before any problem can be solved by
LP analysis, it must be formulated as a mathematical model that fits the general form. In any
mathematical model, the decision maker is attempting to represent the essence of some problem
in terms of relationships between symbols. In LP formulations, the real-world problem is
translated into mathematical equations.

Model building is more than an art than a science; thus, formulating successful models depends
greatly upon the decision makers own ingenuity and experience. Formulation can often be most
difficult part of the LP analysis. It is also the most important, for once the problem has formulated
correctly, it can be solved on.

Sample1:

The USEP IC Company is a small manufacturer of high-fidelity components for the discriminating
audiophile. It currently manufactures power amp and preamps; it has the facilities to produce only
power amps, only preamps, or the combination of both. Production resources are limited, and it is
critical that the firm produce the appropriate number of power amps and/or preamps in order to
maximize profit. Currently, the power amp is selling for Php799.95 and is contributing Php200
toward profit. The preamp sells for Php1,000 and contributes Php500 to profit. The production
process is limited by scarcity of high-quality transistors for the preamps, assembly worker hours,
and inspection and testing worker hours. Due to the shortage of high-quality transistors, at most
40 preamps can be manufactured on a daily basis; all other electronic components are in
adequate supply. There are only 240 hours of assembly worker time available each day.
Furthermore, each power amp requires 1.2 hours for assembly and each preamp requires 4
hours. Finally, there are 81 worker hours available for inspection and testing each day, and the
two components require .5 and 1 hour respectively. How much power amp and preamp should
the company produce to maximize gross income?

Guidelines for Constructing LP Models

1. Understand the problem: Make sure that you understand the problem fully. Is the
objective clear? Is the problem a maximization or minimization?
2. Determine the variables: What does the problem seek to determine? Decide what
decision variables should be. What, precisely, is being sought in the problem?
3. Identify and represent all constraints: What constraints must be imposed on the variables
to satisfy the limitations of the modeled system? A constraint must be constructed for
each limited resources. Be certain each decision variable that affects the given resource
is included in the constraints.
4. Collect relevant data:

Solution:

The company seeks to determine the amounts of power amp and preamp to be produce by the
company to maximize the profit while satisfying the limitation of supply and demand.
First to identify the unknown(variables) since we desire to determine the amounts of power amp
and preamp to be produced.

Let X1 = numbers of power amp produced

X2 = numbers of preamp produced
Y = represents the total profit

Objective function: What is the goal of the problem?

To maximize the profit:
Power amp contributes = Php200.00
Preamp contributes = Php500.00

Max Y = 200X1 + 500X2

second: the constraints

Imposes restrictions on the usage of the transistor

X2 40

Assembly time: not exceed 240 hours

1.2X1 + 4X2 240

inspection and testing: not to exceed 81 hours

0.5X1 + X2 81

third: nonnegative condition

X1, X2 0

The final LP formulation is thus:

Max Y = 200X1 + 500X2

Subject to
X2 40
1.2X1 + 4X2 240
0.5X1 + X2 81
X1, X2 0

Mathematical Assumptions and Limitations of LP

LP has two basic properties:

1. Certainty: requires that all parameters of the model be known. In the realm of decision-
making problems, LP falls in the class of decision making under certainty. In
other words, the objective function coefficients, C j, the coefficients of the
constraints, aij and the right hand side numbers bi, must all be known
constants. When a decision maker cannot determine exact values for some
of these parameters, specific numeral values must be estimated and
assigned, nonetheless, in order to use LP. This requirement bears re[eating:
specific numeral values are necessary in order to solve an LP model.
2. Linearity: is a property of mathematical function. The term denotes the stable
relationship between dependent and independent variables that are
 graphically expressed by strength lines. Suppose y is a variable whose value
depends on the value of an independent variable x. If y is linearly related to
x, then the graph of y versus x results in a straight line. In LP, we generally
use more than tow variables. Suppose we have n variables x1, x2, x3, xn.
Then a linear expression in terms of these variables is of the form a1x1 + a2x2
+ + anxn. Note that in linear expression the coefficients are constants, all
variables have an exponent of 1, and no variables are multiplied together.

Three properties of linearity:

1. Proportionality: requires that the amount of each resource used must be
proportional to the value of the decision variable. This must be true over
the entire range of values for the decision variable. For example, in an
objective function to maximize 3x1 + 7x2, each unit of x1 contributes 3 (a
proportional amount) to the value of the objective function.
2. Additivity: postulates that the value of the objective function and the amount of
resource used are equal to the sum of the contributions of all decision
variables. Using the same objective function, maximize 3x1 + 7x2,
suppose that x1 = 1 and x2 = 1. Additivity asserts that the contributions of
3 and 7 respectively must be add together to form the sum of 10.
3. Divisibility: simple means that the decision variables are allowed to assume a
continuous range of values. Thus the decision variable values may be
fractional or any decimal value. The point here is that LP generally will
not provide integer, or whole number, solutions. Of course, we know that
it is impossible to manufacture a fractional number of automobiles. In
problems where integer solutions are required, LP may be used to
provide approximate answers by rounding off the solution to integers.
However, doing so may cause significant departure form optimality. If
optimal integer solutions are required, you must resort to another, more
difficult, branch of mathematical programming, integer programming.

GRAPHICAL SOLUTION:

Max Y = 200X1 + 500X2

Subject to
X2 40
1.2X1 + 4X2 240
0.5X1 + X2 81
X1, X2 0

Next step is to plot the constraints on a graph. Since the constrains are inequalities rather
than equations, their graphs are regions rather than lines.

For X2 40 X2

80

40
X1
For X2 40, 1.2X1 + 4X2 240

80
60

40
X1

50 100 150 200

Sample 2:
The Ready Mikks Company owns a small paint factory that produces both interior and exterior
house paints for wholesale distribution. Two basic raw materials, A and B, are used to
manufacture the paints. The maximum availability of A is 6 tons a day that of B is 8 tons a day.
The daily requirements of the raw materials per ton of interior and exterior paints are summarized
in the following table.

Tons of raw material per

ton of paint

exterior interior max availability(tons)

Raw A 1 2 6
Raw B 2 1 8

A market survey has established that the daily demand for interior paint cannot exceed that of
exterior paint by more than 1 ton. The survey also shows that the maximum demand for interior
paint is limited to 2 tons daily

The wholesale price per ton is Php3000 for exterior paint and Php2000 for interior paint. How
much interior and exterior paints should the company produce to maximize gross income?

Solution:
First: to identify the unknowns (variables): since we desire to determine the amounts of
interior and exterior paints to be produced.
Let: X1 = tons produced daily of exterior paints
X2 = tons produced daily of interior paints
Y = represents the total gross revenue

Objective function: What is the goal of the problem?

Since the interior paints sells at Php3000 - 3000X1
the exterior paints sells at Php2000 - 2000X2
Max Y = 3000X1 + 2000X2

Second: the constraints

Usage of Raw materials
X1 + 2X2 6
2X1 + X2 8

on demand:
excess amount of interior over exterior paint 1 ton daily
demand for interior paint 2
in mathematical form:
X2 X1 1
X2 2
Variables or the amount produced of each paints cannot be negative
X1, X2 none negative

Final:
Max Y = 3000X1 + 2000X2
Subject to:
X1 + 2X2 6
2X1 + X2 8
-X1 + X2 1
X2 2
X1, X2 0
X1 + 2X2 = 6 2X1 + X2 = 8 -X1 + X2 = 1 X2 = 2
X1 X2 X1 X2

0 3 0 8 0 1
6 0 4 0 -1 0

3
2 1
Sample3:
A Farmer owns 200 pigs that consume at least 800lb of special feed daily. the feed is prepared as
a mixture of corn and soybean meal with the following compositions:

Pounds per pound of feedstuff

feedstuff protein fiber cost(Php/lb)

corn 0.09 0.02 0.3

soybean 0.60 0.06 0.9

The dietary requirements of the pigs are

at least 30% protein
at most 5% fiber
Determine the daily minimum-cost feed mix.

Solution of Minimization Mode

First: to identify the unknowns (variables): since we desire to determine the amounts of corns and
soybean in daily mix to minimize the daily cost
X1 = lbs corn in daily mix
X2 = lbs soybean in daily mix
Objective function: What is the goal of the problem?
To minimize the daily cost of the feed mix.
Since the corn sells at Php0.3 = 0.3X1
the soybean sells at Php0.9 = 0.9X2
Min Y = 0.3X1 + 0.9X2

Second: the constraints

supply:
X1 + X2 800

protein requirement fiber constraint

0.09 X1 + 0.60 X2 0.30 ( X1 + X2 ) 0.02 X1 + 0.06 X2 0.05 (X1 + X2)
0.21 X1 - 0.30 X2 0 0.03 X1 0.01 X2 0

Variables or the amount produced of each paints cannot be negative : X 1, X2 0

Model:

Min Z = 0.30 X1 + 0.90 X2

s.t. X1 + X2 800 X1 + X2 = 800 (0, 800) (800, 0)
0.21 X1 - 0.30 X2 0 X1 = 1/7 X2
0.03 X1 - 0.01 X2 0 X1 = 1/3X2
X1 , X2 0

X2

X1
The Two Mines Company own two different mines that produce an ore which, after being crushed, is graded into three
classes: high, medium and low-grade. The company has contracted to provide a smelting plant with 12 tons of high-
grade, 8 tons of medium-grade and 24 tons of low-grade ore per week. The two mines have different operating
characteristics as detailed below.

Mine Cost per day ('000) Production (tons/day)

High Medium Low
X 180 6 3 4
Y 160 1 1 6
How many days per week should each mine be operated to fulfill the smelting plant contract? Remember, there are
only 5 working days a week.
(3 pts) Define the decision variables
Let
x1 = number of days per week mine X is operated
x2 = number of days per week mine Y is operated
Note here that x1 >= 0 and x2 >= 0.

(1 pts) Write out the LP objective function

Again in words our objective is (presumably) to minimise cost which is given by 180x 1 +
160x2

(3 pts) Write out the LP constraints

ore production constraints - balance the amount produced with the quantity required
under the smelting plant contract
Ore
High 6x1 + 1x2 >= 12
Medium 3x1 + 1x2 >= 8
Low 4x1 + 6x2 >= 24
days per week constraint - we cannot work more than a certain maximum number of
days a week e.g. for a 5 day week we have
x1 <= 5
x2 <= 5
(3 pts) PL Model
Hence we have the complete mathematical representation of the problem as:
Minimize Y = 180x1 + 160x2
subject to
6x1 + x2 >= 12 line 1
3x1 + x2 >= 8 line 2
4x1 + 6x2 >= 24 line 3
x1 <= 5 line 4
x2 <= 5 line 5
x1,x2 >= 0
(15 pts Solution( use extra long size bond paper for your solution)
6x1 + x2 >= 12 (0,12)(2,0) @A line 4 and line 1 @ E line 1 and line 2
3x1 + x2 >= 8 (0,8) (8/3,0) X1 = 6/7 or 1 1/7; x2 = 5 X1 = 4/3 X2 = 4
4x1 + 6x2 >= 24 (0,4) (6,0) Y = 954 2/7 Y = 880
x1 <= 5 @ B line 4 and line 5
x2 <= 5 X1 = 5, X2 = 5 Final:
Y = 1700 X1 = 1 5/7 or 12/7
@ C line 3 and 5 X2 = 2 6/7
X1 = 5, X2 = 2/3 Y = 765 5/7
Y = 1006 2/3
@ D line 3 and line 2
X1 = 12/7 or 1 5/7; X2 = 2 6/7
Y = 765 5/7
2.. A certain brewer produces two products, ale and beer, both of which are made from different proportions of corn,
hops and malt. Suppose 480 pounds of corn, 160 ounces of hops, and 1,190 pounds of malt are immediately
available, and the output is limited by the scarcity of these raw materials. Other resources, such as water, yeast,
labor, and energy, may be consumed in the manufacturing process but are considered to be plentiful. Although
they may influence the brewers willingness to produce beer and ale because of their cost, they do not directly
limit the ability to produce. Assume that the brewing of each barrel of ale consumes five pounds of corn, four
ounces of hops, and 35 pounds of malt, whereas each barrel of beer requires 15 pounds of corn, four ounces of
hops, and 20 pounds of malt. Assume further that all of the ale and beer that can be produced can be sold at
current prices which yield a profit of $13 per barrel of ale and $23 per barrel of beer. Formulate a linear program to
maximize profits.
(3 pts) Define the decision variables
Let X1 = barrel of Ale produced
X2 = barrel of beer produced
Y = profit

(1 pt) Write out the LP objective function

Max y = 13X1 + 23 X2

(3 pts) Write out the LP constraints

5X1 + 15X2 480 -> corn
4X1 + 4X2 160 -> hops
35X1 + 20X2 1190 -> malt

(3 pts) Write the standard LP model

Max y = 13X1 + 23 X2
St
5X1 + 15X2 480 -> corn line 1
4X1 + 4X2 160 -> hops line 2
35X1 + 20X2 1190 -> malt line 3
X1, X2 0
(15 pts)Solve the Problem ( use extra long size bond paper for your solution)

Line 1 Line 2 Line 3 FINAL

X1 X2 X1 X2 X1 X2 X1 = 12 barrels of Ale
0 32 0 40 0 59.5 X2 = 28 barrels of beer
96 0 40 0 34 0 Y = $ 800.00

@ A (0,0) y = 0 @ D line 2 and line 3

@ B (0, 32) y = 736 X1 = 26 X2 = 14
@ C bet line 1 and line 2 y = 660
X1= 12, X2 = 28 @ E (34, 0)
Y = 800 y = 442