Linear Programming

Eco: - 357
Mathematical Economics

Prepared for
Dr. Amir Hussain
Department of Economics
East West University

Prepared by
Kazi Sohag
2005-2-30-016

Date: Sunday, March

 Primal problem
C = 40 X 1 + 20 X 2 + 60 X 3
Subject to
2 X 1 + 4 X 2 + 10 X 3 ≥ 24
Minimizing cost 5 X 1 + X 2 + 5 X 3 ≥ 8
X1, X 2 , X 3 ≥ 0

Duel Problem
Maximize π = 24V1 +8V2
Subject to
2V1 + 5V2 ≤ 40
4V1 + V2 ≤ 20
10V1 + 5V2 ≤ 60
Basic Solution
V1 V2 Corner Feasible
Point
0 0 O(0,0) Yes
0 8 B(0,8) Yes
20 0 C(20,0) No
0 20 D(0,20) No
5 0 E(5,0) Yes
0 12 F(0,12) No
6 0 G(6,0) No
4 4 H(4,4) Yes
2.5 7 I(2.5,7) Yes
3.33 6.67 J(3.33,6.66) No

Slope
π = 24V1 + 8V2
8V2 = π − 24V1
π
V2 = − 3V1
8
∴ Slope = −3
Slope -3 tangent the highest feasible point at H and which point contain the maximum
profit.

whenV1 = 4, V2 = 4
π = 24V1 + 8V2
Maxπ = 24(4) + 8(4)
Maxπ = 128
2V1 + 5V2 + t1 = 40
t1 = 12
4V1 + V2 + t 2 = 20
t2 = 0
10V1 + 5V2 + t 3 = 60
t3 = 0
∴ X1 = 0
X 2 > 0, X 3 > 0
If the decision variables in primal problem are positive (e.g . X 1 , X 2 , X 3 > 0) ,
corresponding slack variables in the duel problem will be zero and vice versa.
4 X 2 + 10 X 3 = 24
X 2 + 5X 3 = 8
X 2 = 4, X 3 = 0.8
∴ MinCost
C = 40 X 1 + 20 X 2 + 60 X
C = 0 + 20( 4) + 60(0.8)
C = 80 + 48
C = 128

It is proved since C = π = 128

Thus, the minimum value of C is the as the maximum value of π . Notice that the
optimum solutions that produce this optimal value are different: (0,4,0.8) is the optimal
solution for primal problem and (4,4) is the optimal solution for the duel problem. The
theorem only guarantees that the optimal values of a minimization problem and its duel
are equal, not that the optimal solution are same.

Thank you,