Linear Programming Model

BBA Program.
Mahbub Parvez, Faculty of Business & Economics. DIU

The objective of a company is to maximize the profit or to minimize the cost. Linear Programming deals with the optimisation of a function of variables known as objective function subject to some set of linear equalities / inequalities known as Constraints. The objective function may be profit, loss, cost, production capacity or any other measure of effectiveness which is to be obtained in the best possible or optimal manner. The constraints may be imposed by different sources such as market demand, production processes, equipment, storage capacity, raw material availability etc. By linearity meant a mathematical expression in which the variables have unit power only. To solve the linear Programming model, we need to identify the following conditions. 1. Decision variables that we need to determine (which must be interrelated and non negative) 2. Objective (or goal) that we aim to optimise. 3. Constraints that we need to satisfy. There are three different ways to represent LP model. 1. 2. 3. Example: Tabular form Graphical form Algebraic form.

Maximize the objective function = x + 0.5y Subject to x+y4 Constraints x +2y 6 X, y 0 Non- negativity restrictions.

Definition: Feasible Solution: Any values of x and y that satisfy all the constraints of the mode constitute a feasible solution.

Optimum Feasible Solution: The yields the maximum total profit or minimum total cost while satisfying all the constraints. Basic proposition in Maximization: All optimum solutions must lie within feasible solution set, but all feasible solutions are not necessary optimum.

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Linear Programming Model

BBA Program.
Mahbub Parvez, Faculty of Business & Economics. DIU

Exercise: 1. Maximize the objective function S/t Z = 30x + 40y x+y 7 0.5x + y 5 0.5y 2 X, y 0 2. Maximize the profit S/t 2x + 9y 36 4x + 3y x, y 0 3. S /t 6 X 1 + 4 X 2 24 X1+2X26 X1 2.5 X2 2 X 1, X 2 # Formulation of LP model: 4. Star Insulating Company manufactures two types of storm window: Model H and R. Model H sells for $45 per window and costs $ 36 per window to make, whereas Model R sells for $35 per window and costs $27 per window to make. To make one Model H window, it requires 4 hours on Machine A and 3 hours on Machine B. On the other hand, to make one Model R window, it takes 5 hors on Machine A and 2 hours on Machine B. Production scheduling indicates that during the coming week Machine A will be available for at most 30 hours and Machine B for at most 19 hours. How many of each window should the company make in the coming week in order to maximize its profit? What is this maximum profit? [Ans: $ 61 at (5, 2)] 5. Safety Lock Company makes two kinks of locks: Model SS and Model S. Each Model SS lock sells for $24 and costs $19 to make, while each Model S lock sells for $18 and costs $15 to make. Each of the locks must be processed on two machines: Model SS requires 3 hours on Machine A and 2 hours on Machine B, whereas Model S requires 7 hours on A and 1 hour on B. During the coming week Machine A will be free for no more than 42 hours and Machine B for no more than 17 hours. Determine the number of each kind of lock to be making in the coming week for the company to maximize its profit. What is this maximum profit? [Ans: $44 at (7, 3)]. 6. XYZ steel Company manufactures two kinds of wrought-iron rails. Model E and Model D. Model E rails sell for $ 59 and cost $50 to make, whereas Model D rails sell for $48 and cost $41 to make. To make one model E rail requires 2 hours on Machine A, 1 hour on Machine B, and 4 hours on Machine C. On the other hand, to make one Model D rail requires 1 hour on A, 2 hours on B, and 5 hours on C. Production scheduling indicated that during the coming week Machine A will be available for at most 30 hours, Machine B for at most 24 hours, and Machine C for at most 72 hours. Find the number of each Page2 of 4 Max Z = 5 X 1 + 4 X 2 = 10x + 8y

[Ans: 240 at x = 4, y = 3]

[Ans: 19.5 at X 1 = 2.5, X 2 = 1.75]

Linear Programming Model

BBA Program.
Mahbub Parvez, Faculty of Business & Economics. DIU

kind of rail to be making in the coming week in order for the company to maximize its profit. What is this maximum profit? [Ans: $145 at (13, 4)]

7. A special food for athletes is to be developed from two foods: Food X and Food Y. The new food is to contain at least 16 milligrams of vitamin A, at least 20 milligrams of vitamin B, and lat least 12 milligrams of Vitamin C. Each pound of Food X costs $1.50 and contains 1 milligram of Vitamin A, 5 milligrams of Vitamin B, and 1 milligram of Vitamin C. On the other hand, each pound of Food Y costs $ 2.50 and contains 2 milligrams of A, 1 milligram of B, and 1 milligram of C. How pounds of each food should be used in the mixture in order to meet the preceding requirements at a minimum cost? What is this minimum cost? [Ans: $22 at (8, 4)] Exercise: Problems in Operations Research by Gupta & Hira, Page: 64. No. 1,2,3,4,5,6,7. Page: 91. No. 1, 3, 4,5,6,10,11, 18 Simplex Method: Slack Variable: Let x + y 4 To make it equal we introduce another variable which is say s1. Hence, x + y + s1 = 4 So, Slack variable is a variable which is used to the left side to make the inequality equal. I.e. any less than or equal to constraint has a slack variable. Surplus Variable: Any larger tan or equal to constraint has a surplus variable. Let x + y 4 x + y - s1 = 4 Simplex Method: Simplex method is a method of solving linear programming model. Exercise: 9. Solve the following problems by using simplex method Max = X1 + 0.5X2 S/t X1 + X2 4 X1 + 2X2 6 X1 X2 0 10. Max Z = 5 X 1 + 4 X 2 S /t 6 X 1 + 4 X 2 24 X1+2X26 -X 1 + X2 1 X22 X 1, X 2 0 Min Z = X1 3X2 + 3X3 S/ t 3X 1 - X 2 + 2X3 7 2X 1+ 4X 2 -12 - 4X 1 + 3X 2+ 8X3 10 X 1, X 2, X3 0

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Min = X1 2X2 + 8 S/ t X1+X27 - X 1+ X 2 1 X1 5 X 1, X 2 0 Min Z = - 40X1 100 X2 Page3 of 4

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Linear Programming Model

BBA Program.
Mahbub Parvez, Faculty of Business & Economics. DIU

S/ t 2X 1 + 5 X 2 100 2X 1 + 3 X2 90 X1X2 0 10X 1 + 5 X 2 250

Assignment: 1. The Gutchi company manufactures Purses, Bags, and Backpacks. The construction of the three products includes leather and synthetic materials but leather seems to be the main limiting raw material. The production process requires two types of skilled labor: sewing and finishing. The following table gives the availability of the resources their usage by the three products, and profits per unit. Resource Requirements per unit Resource Leather (ft2) Sewing (hr) Finishing (hr) Selling Price ($) Purse 2 2 1 24 Bag 1 1 0.5 22 Backpack 3 2 1 45 Daily availability 42 ft2 40 hr 45 hr

Formulate the problem as a LP model and solve that by simplex method. 2. Nitron Corp of Canada produces two products. Unit profit for product A is Tk. 60; for product B Tk. 50. Each must pass through two machines, P and Q. Product A requires 10 minutes on machine P and 8 minutes on machine Q. Product B requires 20 minutes on machine P and 5 minutes on machine Q. Machine P is available 200 minutes a day, while machine Q is available 80 minutes a day. The company must produce at least two units of product A and five of product B each day. What is the most profitable daily production plan? Solve graphically. What are the associated slack/ surplus for the above resources?

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