Linear programming

Linear programming is a powerful quantitative techniques which design for solving the
allocation problem. Linear programming indicates the planning of decision variables which are
directly proportional to achieve the optimal solution by using limited resources and try to solved
the problem.

Decision variables
Decision variables refers to the economic variables or physical quantities which are
competing with one another for sharing limited resources. Decision variables indicate that
what problem we solve like want to produce the a product, but problem is that what
quantity we want to produce. Company need to take decision that what product they will
produce with their limited resources.

Objective function
every company has their own object for the decision variables. They will get the answer
that what they want to accomplish from the decision variables. Some company try to
increase the profit that means maximization of profit otherwise the try to decrease the
cost that means minimization of cost and sometime want to decrease the time amount for
performing a function. The objective function are express by Capital letter Z.
constraint
In the world there is a limitation of resources, so company can’t use huge resources for
their decision problem. Company have so many resources that are time, cost, manpower,
production capacity, limited raw material. The resources are expressed by the equalities
(=) and inequalities (≥∨≤).
Non-negativity restriction
We can produce some amount or may be zero production that means no production but a
company can’t produce negative production.
Steps for formulation the LP problem.
step 1 – identify the decision variables of interest to the decision maker and express them
by x, y, z.
x= number of x product to be produce
y=number of y product to be produce.
Step 2- ascertain the objective of the decision maker, that they try to maximize the profit
or minimize the cost or time.
Step3- a company want to maximization the profit or minimization the cost or time.
Every company have their own objective function that they want to achieve. If a
 company sell a product then their objective will be increase the profit margin. Then the
function are express by the Z = x+y.
Suppose, x company want to maximize profit where they get 2 dollar for
x and 3 for the y. so their objective function be z= 2x+3y
Step4 - introduce constraint , constraint are the limited resources of a company. Which
are express by ≥∨≤ sign. Limitation of manpower that a company have. So constraint,
suppose x and y will get 10 people for selling product. Then the constant will be
x + y ≤ 10
Step5- we already know the non-negativity restriction which means that negative
production can not happen.

Some problem solution

Product mix problem
An animal feed company must produce 200 kg of mixture consisting of ingredient x and
y daily. X cost Rs. 3 per kg and y cost Rs. 8 per kg. Not more than 80kg of x can be
used. And at least 60 kg of y must be used. Find how much of each ingredient should be
used if the company want to minimize cost.

Solution

Let x= kg of ingredient x can be produced

Y= kg of ingredient y can be produced
Since the objective is to minimize the cost, the objective function is given by
Minimize Z= 3 x+ 8 y
Subject to constraint
x + y=200 ( total mixture to be produced)
x ≤ 80 ( maximum use of x ingredient ) x can be used as equal 80 or less than 80
y ≥60 (minimum use of ingredient y) we can use ≥ for the at least used ingredient
x ≥ 0 (non- negativity restriction)
In case of Purchasing problem solution we have to find out the cost of product to be
produced and cost for purchasing that particular product .