Introduction to Linear

Programming
Chapter 3: Hillier and Lieberman
Chapter 3: Decision Tools for Agribusiness
Dr. Hurleys AGB 328 Course
Terms to Know
Simplex Method, Feasible Region, Slope-
Intercept Form, Optimal Solution,
Graphical Method, Decision Variables,
Parameters, Objective Function,
Constraints, Functional Constraints, Non-
Negativity Constraints, Feasible Solution,
Infeasible Solution, Feasible Region
Terms to Know Cont.
No Feasible Solution, Optimal Solution,
Most Favorable Value, Multiple Optimal
Solutions, No Optimal Solutions,
Unbounded Z, Corner-Point Feasible
Solution (CPF), Blending Problem, Data
Cells, Range Name, Changing Cells,
Output Cells, Target Cell
Wyndor Glass Co. Example
Company has two new productsa door
and a window
The company has three plants to develop
these two new products
The goal of the company is to maximize
profits
Key Data for Wyndor
Doors Windows Time Available Hours
Plant 1 Usage (Hours) 1 0 4
Plant 2 Usage (Hours) 0 2 12
Plant 3 Usage (Hours) 3 2 18
Unit Profit $3,000 $5,000
Mathematical Model
Let x1 = number of doors produced per week
Let x2 = number of windows produced per week
Let Z = profit per week
= 31 + 52
Subject to:
1 4
22 12
31 + 22 18
1 0, 2 0
Graphical Solution

x1=4
x2

2x2=12
6

3x1+2x2=18 Z=3x1+5x2=36

Z=3x1+5x2=20
0 4 6 x1

Z=3x1+5x2=10
The General Linear Programming
Model
Z = measure of performance
xj = a decision variable that indicates how
much you are doing of activity j for j = 1, 2,
, n
cj = a parameter that converts activity j into
the overall measure of performance
bi = the amount of resource i you have
available to allocate to your different
activities for i = 1, 2, , m
aij = a parameter that converts activity j into
the amount of resource i used
Resource Allocation Data Matrix
Activity 1 Activity 2 Activity n Resource
Available
Resource 1 a11 a12 a1n b1
Resource 2 a21 a22 a2n b2
. . . . . .
. . . . . .
. . . . . .
Resource m am1 am2 amn bm
Contribution to Z c1 c2 cn
Standard Mathematical Form
= 1 1 + 2 2 + +
Subject to:
11 1 + 12 2 + +1 1
21 1 + 22 2 + +2 2
.
.
.
1 1 + 2 2 + +
1 0, 2 0, , 0
Changes that Can Be Made to the
Standard Form
The objective function could be
minimized instead of maximized
The functional constraints can be met
with equality (=) or greater than () signs
The decision variables xj could be
unrestricted in sign, i.e., xj < 0 is also
possible
Major Assumptions Behind Linear
Programming
All functions are linear
Proportionality Assumption
Additivity
Divisibility
Certainty
Solving Linear Programming
Problems Using a Spreadsheet
Excel has an add-in called Solver that can
solve linear programming problems.
Major components to Solver are:
Set Objective:
To:
By Changing Variable Cells:
Subject to the Constraints:
Make Unconstrained Variables Non-negative
should be checked
Select a Solving Method:
Guidelines for Building Good
Spreadsheets
Enter the data first
Since the data can dictate the structure
of the spreadsheet model, it is valuable
to input the data in the spreadsheet
first.
This can also allow you to build the
spreadsheet to closely resemble the
structure of the data.
Guidelines for Building Good
Spreadsheets Cont.
Organize and clearly identify the data
Data should be grouped together in a
convenient format.
Each piece of data or group of data should be
appropriately labeled.
Enter each piece of data into one cell only
If you need to use the data elsewhere in the
model, you can reference it.
Guidelines for Building Good
Spreadsheets Cont.
Separate data from formulas
If possible, formulas should have no specific
parameters encoded in them.
By keeping the data separate from formulas,
you can save time when changes are needed
by only having to change one parameter
rather than looking for all the formulas that
use a specific piece of data.
This allows all the data to be visual in the
spreadsheet.
Guidelines for Building Good
Spreadsheets Cont.
Keep it simple
You should avoid more powerful functions when
simpler ones will accomplish the same task.
Keep formulas simple.
If you have a very complicated formula, you should break it up
into components on the spreadsheet.
Use range names
Range names should be indicative of what they
represent.
When using range names, care should be taken not to
allow too many range names so the names become
unwieldy.
Guidelines for Building Good
Spreadsheets Cont.
Use relative and absolute references to
simplify copying formulas
This also allows you to copy cells without
making as many errors.
Use borders, shading, and colors to
distinguish between cell types
This will make it easy for you to keep track of
the items within your spreadsheet model.
Guidelines for Building Good
Spreadsheets Cont.
Show the entire model on the
spreadsheet
You should attempt to put as many of the
elements of the model on the spreadsheet.
This will allow others to more easily understand
your model.
This will allow people using the spreadsheet to
more easily understand the Solver dialog box.
Review the Following Spreadsheet
Models
Wyndor Glass
Radiation Therapy
Kibbutzim
Nori and Leets
Save-It
Union Airways
Distribution Unlimited
Example
3.1-10 in the textbook
Develop a mathematical model
Solve the problem using the graphical method
Solve the problem using excel by developing a
spreadsheet model
In-Class Activity (Not Graded)
Solve the following using the graphical
method and the spreadsheet method:
= 2001 + 1002
Subject to:
201 102 150
151 + 152 180
31 + 52 45
1 0, 2 0