LINGO

INTRODUCTION
• LINGO is a simple tool for utilizing the power of linear and nonlinear
optimization to formulate large problems concisely, solve them, and
analyze the solution.
• Optimization helps you find the answer that yields the best result; attains
the highest profit, output, or happiness; or the one that achieves the
lowest cost, waste, or discomfort.
• Often these problems involve making the most efficient use of your
resources-including money, time, machinery, staff, inventory, and more.
• Optimization problems are often classified as linear or nonlinear,
depending on whether the relationships in the problem are linear with
respect to the variables.
INSTALLATION
• Put CD/Download software
• Type SETUP
• Once LINGO is installed, you will find a new Lingo icon on your
desktop
• You may double-click on the icon to start LINGO. Once LINGO is
running, your screen will resemble the following:
Opening a Sample Model on Windows
Developing a LINGO Model
• For our sample model, we will create a small, product mix example. Let's
imagine that the CompuQuick Corporation produces two models of
computers - Standard and Turbo. CompuQuick can sell every Standard
unit it produces for a profit contribution of $100, and each Turbo unit for a
contribution of $150. At the CompuQuick factory, the Standard computer
production line can produce, at most, 100 computers per day. At the same
time, the Turbo computer production line can turn out 120 computers per
day. Furthermore, CompuQuick has a limited supply of daily labor. In
particular, there is a total of 160 hours of labor available each
day. Standard computers require 1 hour of labor, while Turbo computers
are relatively more labor intense requiring 2 hours of labor. The problem
for CompuQuick is to determine the mix of Standard and Turbo computers
to produce each day to maximize total profit without exceeding line and
labor capacity limits.
Modeling
• Let the variables STANDARD and TURBO denote the number of
Standard and Turbo computers to produce
• CompuQuick's objective is to maximize total profit
• MAX = 100 * STANDARD + 150 * TURBO;
• The two constraints of the objective function:
• STANDARD <= 100;
• TURBO <= 120;
• The final constraint on the amount of labor used can be expressed as:
• STANDARD + 2 * TURBO <= 160;
Solver Status Window
A Sample Transportation Model
Data
The Objective Function
• We will let the variable VOLUME_I_J denote the number of widgets
shipped from warehouse I to vendor J. Then, if we were to explicitly write
out our objective function using scalar variables, we would have:
The Constraints
The Completed Model