Linear Programming Models: Graphical Methods

To accompany Quantitative Analysis for Management, 8e by Render/Stair/Hanna

7-1

2003 by Prentice Hall, Inc. Upper Saddle River, NJ 07458

What is Linear Programming?

Linear Programming (LP) is a technique that helps in resource allocation decisions.
Programming refers to modelling and solving a problem mathematically

Linear programming can solve two variable problems (graphical method); or more than two variable problems (simplex method)
To accompany Quantitative Analysis for Management, 8e by Render/Stair/Hanna

7-2

2003 by Prentice Hall, Inc. Upper Saddle River, NJ 07458

Requirements of a Linear Programming Problem

All problems seek to maximize or minimize some quantity (the objective function). The presence of restrictions or constraints, limits the degree to which we can pursue our objective. There must be alternative courses of action to choose from. The objective and constraints in linear programming problems must be expressed in terms of linear equations or inequalities. 7-3
To accompany Quantitative Analysis for Management, 8e by Render/Stair/Hanna 2003 by Prentice Hall, Inc. Upper Saddle River, NJ 07458

Examples of Successful LP Applications

1. Development of a production schedule that will satisfy future demands for a firms production and at the same time minimize total production and inventory costs 2. Selection of the product mix in a factory to make best

use of machine-hours and labor-hours available while

maximizing the firms products
To accompany Quantitative Analysis for Management, 8e by Render/Stair/Hanna

7-4

2003 by Prentice Hall, Inc. Upper Saddle River, NJ 07458

Examples of Successful LP Applications

3. Determination of grades of petroleum products to yield the maximum profit 4. Selection of different blends of raw materials to feed mills to produce finished feed combinations at minimum cost

5. Determination of a distribution system that will

minimize total shipping cost from several warehouses to various market locations
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7-5

2003 by Prentice Hall, Inc. Upper Saddle River, NJ 07458

Basic Assumptions of Linear Programming

Certainty coefficients in the objective function and constraints are known with certainty and do not change during the period being studied. Proportionality-in the objective function and constraints. If one product uses 5 hours of a machine resource, then making 10 of that product uses 50 hours of machine time. Additivity- the total of all activitiesequals the sum of each individual activity Divisibility solutions need not be integers but may also be fractional values Nonnegativity all answers and variable values are either zero or positive.
To accompany Quantitative Analysis for Management, 8e by Render/Stair/Hanna

7-6

2003 by Prentice Hall, Inc. Upper Saddle River, NJ 07458

Equations and Inequalities

1. 2. 3. 4. 5. 6. Solve for X1 and X2 and graph solution X1 80 X2 100 3X1+ 2X2 240 2X1+ 1X2 140 1X1 + 2X2 = 16 2X1 - X2 2
7-7
2003 by Prentice Hall, Inc. Upper Saddle River, NJ 07458

To accompany Quantitative Analysis for Management, 8e by Render/Stair/Hanna

Flair Furniture Company Data - Table

7.1 Hours Required to Produce One Unit
Department T Tables C Chairs Available Hours This Week

Carpentry Painting &Varnishing Profit Amount

4 2
$7 $5

3 1

240 100

Constraints: 4T + 3C 240 (Carpentry)

2T + 1C 100 (Paint & Varnishing) Objective: Max: To accompany Quantitative Analysis for7T + 5C
Management, 8e by Render/Stair/Hanna

7-8

2003 by Prentice Hall, Inc. Upper Saddle River, NJ 07458

Corner Point Solution Method

Find the objective function and constraints Define the decision variables Use the decision variables to write mathematical expressions for the objective function and constraints Solve for unknown decision variables in each constraint and graph the solution Find the value of the variables at each corner point to form the feasible region or feasible line segment Test corner points by substituting value of decision variables and corresponding profit or cost. Do simultaneous equation for corner points with intersecting constraint lines Select the corner point with the highest (profit) or lowest (cost) objective coefficient values as optimal solution
To accompany Quantitative Analysis for Management, 8e by Render/Stair/Hanna

7-9

2003 by Prentice Hall, Inc. Upper Saddle River, NJ 07458

Flair Furniture Company Constraints

120

Number of Chairs

100 80 60 40

Painting/Varnishing

Carpentry

20
To accompany Quantitative Analysis for Management, 8e by Render/Stair/Hanna

20

40
7-10

60

80

100

Number of Tables

2003 by Prentice Hall, Inc. Upper Saddle River, NJ 07458

Flair Furniture Company Feasible Region

Number of Chairs
120

Painting/Varnishing

100
80 60 40 20

Carpentry Feasible Region

20 40
7-11

60

80

100

To accompany Quantitative Analysis for Management, 8e by Render/Stair/Hanna

Number of Tables

2003 by Prentice Hall, Inc. Upper Saddle River, NJ 07458

Flair Furniture Company Optimal Solution

120

2 Number of Chairs
100 80 60 40 20

Corner Points
Painting/Varnishing Solution (T = 30, C = 40) Carpentry

3 1
20

To accompany Quantitative Analysis for Management, 8e by Render/Stair/Hanna

4 60 80 Number of Tables
40
7-12

100

2003 by Prentice Hall, Inc. Upper Saddle River, NJ 07458

Holiday Meal Turkey Ranch p. 290 (11th ed) or p. 296 (10th ed)
INGREDIENTS BRAND 1 FEED BRAND 2 FEED MINIMIMUM REQUIREMENT PER TURKEY (OZ) 90 48 1.5 A B C COST PER POUND 5 4 0.5 2 cents 10 3 0 3 cents

Minimize Subject

: 2 X1 + 3 X 2 to : 5 X 1 + 10 X 2 90 4 X 1 + 3 X 2 48
X 1

( A) (B) (C)

11/2
7-13
2003 by Prentice Hall, Inc. Upper Saddle River, NJ 07458

To accompany Quantitative Analysis for Management, 8e by Render/Stair/Hanna

Holiday Meal Turkey Problem

Corner Points

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7-14

2003 by Prentice Hall, Inc. Upper Saddle River, NJ 07458

LP-Graphical
SEATWORK HOMEWORK

Solve 7-18 and 7-19 Solve 7-27 p. 320 p319 10th and 11th ed 10th ed.; p314 for p313 11th edition

To accompany Quantitative Analysis for Management, 8e by Render/Stair/Hanna

7-15

2003 by Prentice Hall, Inc. Upper Saddle River, NJ 07458

Special Cases in LP
Infeasibility

Unbounded Solutions
Redundancy

Degeneracy
More Than One Optimal Solution

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2003 by Prentice Hall, Inc. Upper Saddle River, NJ 07458

A Problem with No Feasible Solution

X2 8 6 4 2 0 2
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Region Satisfying 3rd Constraint

X1
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Region Satisfying First 2 Constraints

7-17

A Solution Region That is Unbounded to the Right

X2 15

X1 > 5

X2 < 10

10

Feasible Region
5 X1 + 2X2 > 10

0 5
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10

15
7-18

X1
2003 by Prentice Hall, Inc. Upper Saddle River, NJ 07458

A Problem with a Redundant Constraint

X2 30 25 20 15

2X1 + X2 < 30

Redundant Constraint
X1 < 25

X1 + X2 < 20
10

5
0

Feasible Region
5 10 15
7-19

20

25

30

X1

To accompany Quantitative Analysis for Management, 8e by Render/Stair/Hanna

2003 by Prentice Hall, Inc. Upper Saddle River, NJ 07458

An Example of Alternate Optimal Solutions

8 7 6 A

5
4 3

2
1 0

Optimal Solution Consists of All Combinations of X1 and X2 Along the AB Segment Isoprofit Line for $8 Isoprofit Line for B $12 AB Overlays Line Segment
1 2 3 4 5 6 7 8
7-20
2003 by Prentice Hall, Inc. Upper Saddle River, NJ 07458

To accompany Quantitative Analysis for Management, 8e by Render/Stair/Hanna

Sensitivity Analysis
Changes in the Objective Function

Coefficient
Changes in Resources (RHS) Changes in Technological Coefficients

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7-21

2003 by Prentice Hall, Inc. Upper Saddle River, NJ 07458

Changes in the Technological Coefficients for High Note Sound Co.

(a) Original Problem
X2 60 3X1 + 1X2 < 60 Stereo Receivers 40 Optimal Solution 20 0 a b Still Optimal a d 2X1 + 1X2 < 60 X2

(b) Change in Circled Coefficient

2X1 + 4X2 < 80 c

2X1 + 4X2 < 80 e

20
To accompany Quantitative Analysis for Management, 8e by Render/Stair/Hanna

40 CD Players

X1
7-22

20

30

40

X1

CD Players
2003 by Prentice Hall, Inc. Upper Saddle River, NJ 07458

Changes in the Technological Coefficients for High Note Sound Co.

(a) Original Problem
X2 60 X2

(c) Change in Circled Coefficient

3X1 + 1X2 < 60 Optimal Solution 2X1 + 5X2 < 80 f g c

3X1 + 1X2 < 60

Stereo Receivers 40 Optimal Solution 20 a b 2X1 + 4X2 < 80 c 20 40 CD Players X1
7-23

20

40 CD Players

X1

To accompany Quantitative Analysis for Management, 8e by Render/Stair/Hanna

2003 by Prentice Hall, Inc. Upper Saddle River, NJ 07458