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Decision variables
mathematical symbols representing levels of activity of an
operation
Objective function
a linear relationship reflecting the objective of an operation
most frequent objective of business firms is to maximize profit
most frequent objective of individual operational units (such as a
production or packaging department) is to minimize cost
Constraint
a linear relationship representing a restriction on decision
making
LP Model Format
Max/min
subject to:
a11x1 + a12x2 + ... + a1nxn (, =, ) b1
a21x1 + a22x2 + ... + a2nxn (, =, ) b2
:
am1x1 + am2x2 + ... + amnxn (, =, ) bm
xj = decision variables
bi = constraint levels
cj = objective function coefficients
aij = constraint coefficients
And
The decision variables 0
LP Model: Example
RESOURCE REQUIREMENTS
PRODUCT
Bowl
Mug
Labor
(hr/unit)
1
2
Clay
(lb/unit)
4
3
Revenue
(Rs./unit)
40
50
LP Formulation: Example
Maximize Z = 40 x1 + 50 x2
Subject to
x1 + 2x2 40 hr
(labor constraint)
30
20
Area common to
both constraints
10
0
x1 + 2 x2 40 hr
|
10
|
20
|
30
|
40
|
50
|
60
x1
4 x1 + 3 x2 120 lb
30
x1 +
2x2 =
40
4x1 +
3x2 =
120
4x1 +
8x2 =
160
-4x1 -
3x2 =
-120
5x2 =
40
x2 =
2(8) =
40
24
20
10
x1 + 2 x2 40 hr
0
8
x1 +
x1
|
10
24 |
|
20
30
x1
|
40
Z = Rs.50(24) + Rs.50(8) = Rs.1,360
x2 =20 mugs
40
Z = Rs.1,000
x2 =8 mugs
Z = Rs.1,360
30
20
x1 = 24 bowls
B
|
10
x2 =0 mugs
Z = 1,200
10
0
x1 = 30 bowls
|
20
C|
|
30 40
x1
Special Situation in LP
Infeasibility
When no feasible solution exists (there
is no feasible region)
Infeasible Model
No point, simultaneously,
1
12
n
o
i
t on
c
re luti
i
D so
of
X2
0
0
X1
Unbounded solution
th
eO
Ma
xim
bje
ize
cti
Th
ve
ef
Fu
nc
re ea
ti
s
g
io ibl
n
e
on
14
Special Situation in LP
Alternate Optimal Solutions when there is
more than one optimal solution
X2
10
1
2X
All points on
Red segment
are optimal
2
2X
=
20
X1 + X2 < 10
X1
< 5
X2< 6
X1, X2 > 0
Subject to:
6
0
0
10
X1
Machine
Product
M1
A
4
B
3
C
5
M2
A
B
C
1
100
10
1
10
100
cost
Rs 1
Rs1.10 Rs .50
10
10
10
1
50
10
Z = 3X1 + 2X2
Subject to
5X1 + X2 10
X1 + X2 6
X1 + 4X2 12
X1, X2 0
X1 + X2 4
3X1 + 8X2 24
10X1 + 7X2 35
X1, X2 >0
2X1 + X2 500
X1 150
X2 250
X1, X2 0