Linear Programming:

Model Formulation and

Graphical Solution

Chapter 2

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 Chapter Topics

 Model Formulation
 A Maximization Model Example
 Graphical Solutions of Linear Programming Models
 A Minimization Model Example
 Irregular Types of Linear Programming Models
 Characteristics of Linear Programming Problems

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Linear Programming: An Overview

 Objectives of business decisions frequently involve

maximizing profit or minimizing costs.
 Linear programming uses linear algebraic relationships
to represent a firm’s decisions, given a business
objective, and resource constraints.
 Steps in application:
1. Identify problem as solvable by linear
programming.
2. Formulate a mathematical model of the
unstructured problem.
3. Solve the model.
4. Implementation 2-3
Model Components

 Decision variables - mathematical symbols representing

levels of activity of a firm.
 Objective function - a linear mathematical relationship
describing an objective of the firm, in terms of decision
variables - this function is to be maximized or minimized.
 Constraints – requirements or restrictions placed on the firm
by the operating environment, stated in linear relationships of
the decision variables.
 Parameters - numerical coefficients and constants used in the
objective function and constraints.

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Summary of Model Formulation Steps

Step 1 : Clearly define the decision variables

Step 2 : Construct the objective function

Step 3 : Formulate the constraints

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LP Model Formulation
A Maximization Example (1 of 4)

 Product mix problem - Beaver Creek Pottery Company

 How many bowls and mugs should be produced to maximize
profits given labor and materials constraints?
 Product resource requirements and unit profit:
Resource Requirements

Labor Clay Profit

Product
(Hr./Unit) (Lb./Unit) ($/Unit)

Bowl 1 4 40
Mug 2 3 50

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LP Model Formulation
A Maximization Example (2 of 4)

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LP Model Formulation
A Maximization Example (3 of 4)

Resource 40 hrs of labor per day

Availability: 120 lbs of clay
Decision x1 = number of bowls to produce per day
Variables: x2 = number of mugs to produce per day

Objective Maximize Z = $40x1 + $50x2

Function: Where Z = profit per day
Resource 1x1 + 2x2  40 hours of labor
Constraints: 4x1 + 3x2  120 pounds of clay

Non-Negativity x1  0; x2  0
Constraints:
2-8
LP Model Formulation
A Maximization Example (4 of 4)

Complete Linear Programming Model:

Maximize Z = $40x1 + $50x2

subject to: 1x1 + 2x2  40

4x1 + 3x2  120
x1, x2  0

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Feasible Solutions

A feasible solution does not violate any of the constraints:

Example: x1 = 5 bowls
x2 = 10 mugs
Z = $40x1 + $50x2 = $700

Labor constraint check: 1(5) + 2(10) = 25 < 40 hours

Clay constraint check: 4(5) + 3(10) = 50 < 120 pounds

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Infeasible Solutions

An infeasible solution violates at least one of the

constraints:

Example: x1 = 10 bowls
x2 = 20 mugs
Z = $40x1 + $50x2 = $1400

Labor constraint check: 1(10) + 2(20) = 50 > 40 hours

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Graphical Solution of LP Models

 Graphical solution is limited to linear programming models

containing only two decision variables (can be used with three
variables but only with great difficulty).

 Graphical methods provide visualization of how a solution for

a linear programming problem is obtained.

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Coordinate Axes
Graphical Solution of Maximization Model (1 of
12)

X2 is mugs

Maximize Z = $40x1 + $50x2

subject to: 1x1 + 2x2  40
4x1 + 3x2  120
x1, x2  0

X1 is bowls
Figure 2.2 Coordinates for Graphical
Analysis 2-13
Labor Constraint
Graphical Solution of Maximization Model (2 of
12)

Maximize Z = $40x1 + $50x2

subject to: 1x1 + 2x2  40
4x1 + 3x2  120
x1, x2  0

Figure 2.3 Graph of Labor Constraint

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Labor Constraint Area
Graphical Solution of Maximization Model (3 of
12)

Maximize Z = $40x1 + $50x2

subject to: 1x1 + 2x2  40
4x1 + 3x2  120
x1, x2  0

Figure 2.4 Labor Constraint Area

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Clay Constraint Area
Graphical Solution of Maximization Model (4 of
12)

Maximize Z = $40x1 + $50x2

subject to: 1x1 + 2x2  40
4x1 + 3x2  120
x1, x2  0

Figure 2.5 Clay Constraint Area

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Both Constraints
Graphical Solution of Maximization Model (5 of
12)

Maximize Z = $40x1 + $50x2

subject to: 1x1 + 2x2  40
4x1 + 3x2  120
x1, x2  0

Figure 2.6 Graph of Both Model Constraints

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Feasible Solution Area
Graphical Solution of Maximization Model (6 of
12)

Maximize Z = $40x1 + $50x2

subject to: 1x1 + 2x2  40
4x1 + 3x2  120
x1, x2  0

Figure 2.7 Feasible Solution Area

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Objective Function Solution = $800
Graphical Solution of Maximization Model (7 of
12)

Maximize Z = $40x1 + $50x2

subject to: 1x1 + 2x2  40
4x1 + 3x2  120
x1, x2  0

Figure 2.8 Objection Function Line for Z =

$800 2-19
Alternative Objective Function Solution Lines
Graphical Solution of Maximization Model (8 of 12)

Maximize Z = $40x1 + $50x2

subject to: 1x1 + 2x2  40
4x1 + 3x2  120
x1, x2  0

Figure 2.9 Alternative Objective Function Lines

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Optimal Solution
Graphical Solution of Maximization Model (9 of
12)

Maximize Z = $40x1 + $50x2

subject to: 1x1 + 2x2  40
4x1 + 3x2  120
x1, x2  0

Figure 2.10 Identification of Optimal Solution Point

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Optimal Solution Coordinates
Graphical Solution of Maximization Model (10 of 12)

Maximize Z = $40x1 + $50x2

subject to: 1x1 + 2x2  40
4x1 + 3x2  120
x1, x2  0

Figure 2.11 Optimal Solution Coordinates

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Extreme (Corner) Point Solutions
Graphical Solution of Maximization Model (11 of 12)

Maximize Z = $40x1 + $50x2

subject to: 1x1 + 2x2  40
4x1 + 3x2  120
x1, x2  0

Figure 2.12 Solutions at All Corner

Points 2-23
Optimal Solution for New Objective Function
Graphical Solution of Maximization Model (12 of 12)

Maximize Z = $70x1 + $20x2

subject to: 1x1 + 2x2  40
4x1 + 3x2  120
x1, x2  0

Figure 2.13 Optimal Solution with Z = 70x1 +

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LP Model Formulation – Minimization (1 of 8)

 Two brands of fertilizer available - Super-gro, Crop-quick.

 Field requires at least 16 pounds of nitrogen and 24 pounds of
phosphate.
 Super-gro costs $6 per bag, Crop-quick $3 per bag.
 Problem: How much of each brand to purchase to minimize total
cost of fertilizer given following data ?
Chemical Contribution

Nitrogen Phosphate
Brand
(lb/ bag) (lb/ bag)
Super-gro 2 4
Crop-quick 4 3

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LP Model Formulation – Minimization (2 of 8)

Figure 2.15 Fertilizing

farmer’s field

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LP Model Formulation – Minimization (3 of 8)

Decision Variables:
x1 = bags of Super-gro
x2 = bags of Crop-quick

The Objective Function:

Minimize Z = $6x1 + 3x2
Where: $6x1 = cost of bags of Super-Gro
$3x2 = cost of bags of Crop-Quick

Model Constraints:
2x1 + 4x2  16 lb (nitrogen constraint)
4x1 + 3x2  24 lb (phosphate constraint)
x1, x2  0 (non-negativity constraint)
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Constraint Graph – Minimization (4 of 8)

Minimize Z = $6x1 + $3x2

subject to: 2x1 + 4x2  16
4x1 + 3x2  24
x1, x2  0

Figure 2.16 Graph of Both Model Constraints

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Feasible Region– Minimization (5 of 8)

Minimize Z = $6x1 + $3x2

subject to: 2x1 + 4x2  16
4x1 + 3x2  24
x1, x2  0

Figure 2.17 Feasible Solution Area

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Optimal Solution Point – Minimization (6 of 8)

Minimize Z = $6x1 + $3x2

subject to: 2x1 + 4x2  16
4x1 + 3x2  24
x1, x2  0

Figure 2.18 Optimum Solution Point

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Irregular Types of Linear Programming Problems

For some linear programming models, the general

rules do not apply.

 Special types of problems include those with:

 Multiple optimal solutions
 Infeasible solutions
 Unbounded solutions

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Multiple Optimal Solutions Beaver Creek
Pottery

The objective function is

parallel to a constraint line.
Maximize Z=$40x1 + 30x2
subject to: 1x1 + 2x2  40
4x1 + 3x2  120
x1, x2  0
Where:
x1 = number of bowls
x2 = number of mugs

Figure 2.20 Example with Multiple Optimal

Solutions 2-32
An Infeasible Problem

Every possible solution

violates at least one constraint:
Maximize Z = 5x1 + 3x2
subject to: 4x1 + 2x2  8
x1  4
x2  6
x1, x2  0

Figure 2.21 Graph of an Infeasible Problem

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An Unbounded Problem

Value of the objective

function increases indefinitely:
Maximize Z = 4x1 + 2x2
subject to: x1  4
x2  2
x1, x2  0

Figure 2.22 Graph of an Unbounded Problem

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Characteristics of Linear Programming Problems

 A decision amongst alternative courses of action is required.

 The decision is represented in the model by decision
variables.
 The problem encompasses a goal, expressed as an objective
function, that the decision maker wants to achieve.
 Restrictions (represented by constraints) exist that limit the
extent of achievement of the objective.
 The objective and constraints must be definable by linear
mathematical functional relationships.

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Problem Statement
Example Problem No. 1 (1 of 3)

■ Hot dog mixture in 1000-pound batches.

■ Two ingredients, chicken ($3/lb) and beef ($5/lb).
■ Recipe requirements:
at least 500 pounds of “chicken”
at least 200 pounds of “beef”
■ Ratio of chicken to beef must be at least 2 to 1.
■ Determine optimal mixture of ingredients that will
minimize costs.

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Solution
Example Problem No. 1 (2 of 3)
Step 1:
Identify decision variables.
x1 = lb of chicken in mixture
x2 = lb of beef in mixture
Step 2:
Formulate the objective function.
Minimize Z = $3x1 + $5x2
where Z = cost per 1,000-lb batch
$3x1 = cost of chicken
$5x2 = cost of beef 2-37
Solution
Example Problem No. 1 (3 of 3)

Step 3:
Establish Model Constraints
x1 + x2 = 1,000 lb
x1  500 lb of chicken
x2  200 lb of beef
x1/x2  2/1 or x1 - 2x2  0
x1, x2  0
The Model: Minimize Z = $3x1 + 5x2
subject to: x1 + x2 = 1,000 lb
x1  500
x2  200
x1 - 2x2  0
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Example Problem No. 2 (1 of 3)
reading exercise on page 58
Solve the following model
graphically:
Maximize Z = 4x1 + 5x2
subject to: x1 + 2x2  10
6x1 + 6x2  36
x1  4
x1 , x 2  0

Step 1: Plot the constraints

as equations

Figure 2.23 Constraint Equations

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Example Problem No. 2 (2 of 3)

Maximize Z = 4x1 + 5x2

subject to: x1 + 2x2  10
6x1 + 6x2  36
x1  4
x1 , x 2  0
Step 2: Determine the feasible
solution space

Figure 2.24 Feasible Solution Space and Extreme

Points 2-40
Example Problem No. 2 (3 of 3)

Maximize Z = 4x1 + 5x2

subject to: x1 + 2x2  10
6x1 + 6x2  36
x1  4
x1, x2  0
Step 3 and 4: Determine the
solution points and optimal
solution

Figure 2.25 Optimal Solution Point

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Properties of Linear Programming Models

 Proportionality - The rate of change (slope) of the objective

function and constraint equations is constant.
 Additivity - Terms in the objective function and constraint
equations must be additive.
 Divisibility -Decision variables can take on any fractional
value and are therefore continuous as opposed to integer in
nature.
 Certainty - Values of all the model parameters are assumed to
be known with certainty (non-probabilistic).

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