ChaChappterter 22
LiLinearnear PProgrammrogrammiingng
Linear Programming (LP)
1.1. LineaLinearr ProgrammingProgramming (LP)(LP) isis aa mathematicalmathematical procedureprocedure
forfor determiningdetermining optimaloptimal allocationallocation ofof scarcescarce resourcesresources
2.2. LPLP dealsdeals withwith aa classclass ofof programmingprogramming problemsproblems wherewhere bothboth thethe objectiveobjective functionfunction toto bebe optimizedoptimized isis linearlinear andand allall relationsrelations amongamong thethe variablesvariables correspondingcorresponding toto resourcesresources areare linearlinear
3.3. AnyAny LPLP problemproblem consistsconsists ofof anan objectiveobjective functionfunction andand aa
IInn mosmostt cases,cases, consconsttraraiinnttss comecome
fromfrom thethe environmentenvironment inin whichwhich youyou workwork toto achieveachieve youyourr objectiveobjective
sesett ooff consconsttraraiinnttss
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Some of the major application areas to which LP can be applied are:
Work scheduling Production planning & Production process Capital budgeting Financial planning Blending (e.g. Oil refinery management)
Farm planning Distribution Multiperiod decision problems
• Inventory model
• Financial models
• Work scheduling
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Facility Location Decisions LP as a “WhatIf” Tool
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Facility Location Problem
LPbased techniques can be used to locate manufacturing facilities, distribution centres, warehouse/storage facilities etc. taking into consideration factors such as facility/distribution capacities, customer demand, budget constraints, quality of service to customers etc.
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Linear Programming Model
Objective: the goal of an LP model is maximization or minimization Decision variables: amounts of either inputs or outputs Feasible solution space: the set of all feasible combinations of decision variables as defined by the constraints Constraints: limitations that restrict the available
alternatives Parameters: numerical values
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Linear Programming Assumptions
Linearity: the impact of decision variables is linear in constraints and objective function. Divisibility: noninteger values of decision variables are acceptable. Certainty: values of parameters are known and constant. Nonnegativity: negative values of decision variables are unacceptable.
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2. Linear programming (LP)
Formulation of a LP Model 1.1.IdentifIdentifyy thethe decisiondecision variablesvariables andand exexppressress themthem inin
algebraicalgebraic symbols.symbols. (like(like XX11,, XX22,, etcetc
))
aallll ththee consconsttraraiinnttss oror lilimmititaatitionsons anandd
expressexpress asas equationsequations (scares(scares resourcesresources likelike time,time, labor,labor, rawraw materialsmaterials etcetc ……)) 33 IdentifIdentifyy thethe ObjectiveObjective FunctionFunction andand exexppressress itit asas aa linearlinear functionfunction (the(the decisiondecision makermaker wantwant toto achieveachieve it)it)
22
IdIdenentiftifyy
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Requirements of a LP Problem
1.1. LPLP problemsproblems seekseek toto maximizemaximize oror minimizeminimize somesome quantityquantity (usually(usually profitprofit oror cost)cost) expresseexpressedd asas anan oobjbjecectitiveve ffuncunctitionon
22
TheThe
constraintsconstraints,, limitslimits thethe dedeggreeree toto whichwhich wewe cancan pursuepursue ourour objective.objective.
presencepresence
ofof
restrictionsrestrictions,,
oror
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2. Linear programming (LP)
1.1. LPLP modelmodel formulationformulation AnAn LPLP isis oneone ofof thethe bedrocksbedrocks ofof OROR
ItIt isis aa tooltool forfor solvingsolving optimizationoptimization problemsproblems
2.2. AnyAny linearlinear programprogram consistsconsists ofof 44 parts:parts:
aa setset ofof decisiondecision variablesvariables,, thethe objectiveobjective function,function, andand aa setset ofof constraintsconstraints SiSiggnn RestrictionsRestrictions
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2. Linear programming (LP)
General Mathematical Formulation of LP
Optimize (Maximize or Minimize) Z = c _{1} x _{1} + c _{2} x _{2} +…+c _{n} x _{n} Subject to:
a _{1}_{1} x _{1} + a _{1}_{2} x _{2} +…+ a _{1}_{n} x _{n} (≤, =, ≥ ) a _{2}_{1} x _{1} + a _{2}_{2} x _{2} +…+ a _{2}_{n} x _{n} (≤, =, ≥ ) .
b _{1}
b _{2}
. . a _{m}_{1} x _{1} + a _{m}_{2} x _{2} +…+ a _{m}_{n} x _{n} (≤, =, ≥ ) b _{m} and
.
.
.
.
.
.
.
x _{1} , x _{2} , …x _{n} ≥ 0
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Example 1 1. The KADISCO company owns a small paint factory that produces both interior and exterior house paints for wholesale distribution. Two basic raw materials, A and B, are used to manufacture the paints. The maximum availability of A is 6 tons a day; that of B is 8 tons a day. The daily requirements of the raw materials per ton of interior and exterior paints are summarized in the following table.
Tons of Raw Material per Ton of Paint 

Exterior 
Interior 
Maximum Availability (tons) 

Raw Material A Raw Material B 
1 
2 
6 
2 
1 
8 
A market survey has established that the daily demand for the interior paint cannot exceed that of exterior paint by more than 1 ton. The survey also showed that the maximum demand for the interior paint is limited to 2 tons daily. The wholesale price per kg is $3000 for exterior paint and $2000 per interior paint. How much interior and exterior paint should the company produce daily to maximize gross income?
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Define X _{E} = Tons of exterior paint to be produced X _{I} = Tons of interior paint to be produced
Maximize Z = 3000X _{E} + 2000X _{I}
Subject to:
X
2X _{E} + X _{I} ≤ 8 (2) (availability of raw material B) _X + X ≤ 1 (3) (Restriction in production) X _{I} ≤ 2 (4) (demand restriction)
+ 2X ≤ 6 (1) (availability of raw material A)
E
I
E
I
X _{E} , X _{I} ≥ 0
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Example 2. ProductionMix Example
DepartmentDepartment
PProrodducuctt 
WiWirriingng 
DDrrilliillingng 
AAssemssemblblyy 
IInspecnspectitionon 
UUnnitit PProrofitfit 

XJ201XJ201 
.5.5 
33 
22 
.5.5 
$$ 
99 

XM897XM897 
1.51.5 
11 
44 
1.01.0 
$12$12 

TR29TR29 
11 
55 
22 
11 
55 
$15$15 

BR788BR788 
1.01.0 
33 
22 
.5.5 
$11$11 
DepartmentDepartment
CapacityCapacity (in(in hours)hours)
ProductProduct
MinimumMinimum ProductionProduction LevelLevel
WiringWiring 
11,,500500 
XJ201XJ201 
150150 
DrillingDrilling 
2,3502,350 
XM897XM897 
100100 
AssemblyAssembly 
2,6002,600 
TR29TR29 
300300 
InspectionInspection 
1,2001,200 
BR788BR788 
400400 
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X _{1} = number of units of XJ201 produced X _{2} = number of units of XM897 produced X _{3} = number of units of TR29 produced X _{4} = number of units of BR788 produced
MaximizeMaximize pprofitrofit == 9X9X _{1}_{1} ++ 12X12X _{2}_{2} ++ 15X15X _{3}_{3} ++ 11X11X _{4}_{4}
subject to
.5X _{1} + 1.5X _{2} + 1.5X _{3} +
+ 2X _{1} + .5X _{1} +
+ 1X _{3} +
1X _{4} ≤ 1,500 hours of wiring
≤ 2 350 hours of drilling
4
3X
1
1X
+ 4X _{2} + 1X _{2} +
2
2X
3
^{,} 2X _{4} ≤ 2,600 hours of assembly
3X
.5X _{3} + .5X _{4} ≤ 1,200 hours of inspection X _{1} ≥ 150 units of XJ201 X _{2} ≥ 100 units of XM897 X _{3} ≥ 300 units of TR29 XX _{4}_{4} ≥≥ 400400 ununititss ooff BR788BR788
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Example 3 : Advertisement
3. Dorian makes luxury cars and jeeps for highincome men and women. It wishes to advertise with 1 minute spots in comedy shows and football games. Each comedy spot costs $50 and is seen by 7M high income women and 2M highincome men. Each football spot costs $100 and is seen by 2M high income women and 12M highincome men. How can Dorian reach 28M highincome women and 24M high income men at the least cost.
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Example 4: Post Office
A PO requires different numbers of employees on different days of the week. Union rules state each employee must work 5 consecutive days and then receive two days off. Find the minimum number of employees needed.
Monday 
Tuesday 
Wednesday 
Thursday 
Friday 
Saturday 
Sunday 

Staff 
17 
13 
15 
19 
14 
16 
11 
Needed 
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The decision variables are x _{i} (number of employees starting on day i)
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2. Linear Programming (LP)
Example 5: A Diet Problem Suppose the only foods available in your local store are potatoes and steak. The decision about how much of each food to buy is to made entirely on dietary and economic considerations. We have the nutritional and cost information in the following table:
it P of potatoes er un 
it of steak P er un 
Mi i n mum requirements 

UnitsUnits ofof carbohydratescarbohydrates UnitsUnits ofof vitaminsvitamins UnitsUnits ofof proteinsproteins UnitUnit costcost 
33 
11 
88 

44 
33 
1919 

11 
33 
77 

$25$25 
$50$50 
The problem is to find a diet (a choice of the
numbers of units of the two foods) that meets all
minimum nutritional requirements at minimal
cost. Formulate the problem LP.
Mini {Z = $25X _{1} + $50X _{2} }
3X _{1}
4X _{1}
X _{1}
+
+
+
X
1
^{,}
X
_{2}
3X _{2}
3X _{2}
X
2
≥ 8
≥ 19
≥ 7
≥ 0
Example 6: Blending Problem
Bryant's Pizza, Inc. is a producer of frozen pizza products. The company makes a net income of $1.00 for each regular pizza and $1.50 for each deluxe pizza produced. The firm currently has 150 pounds of dough mix and 50 pounds of topping mix. Each regular pizza uses 1 pound of dough mix and 4 ounces (16 ounces= 1 pound) of topping mix. Each deluxe pizza uses 1 pound of dough mix and 8 ounces of topping mix. Based on the past demand per week, Bryant can sell at least 50 regular pizzas and at least 25 deluxe pizzas. The problem is to determine the number of regular and deluxe pizzas the company should make to maximize net income. Formulate this problem as an LP problem.
Solution:
A Blending Problem
Let X1 and X2 be the number of regular and deluxe pizza, then the LP formulation is:
Maximize: { Z = X _{1} + 1.5 X _{2} }
Subject to:
0.25 X
1
X _{1} +
X _{2} ≤ 150
+
0 5 X
.
2
≤ 50
X _{1} ≥ 50 X _{2} ≥ 25 X _{1} , X _{2} ≥ 0
3. Solving Linear programming (LP)
Steps for Graphical Solution A. Corner Point Method 1.Define the problem mathematically 2.Graph by constraints by treating each inequality as equality 3. Locate the feasible region and the corner points 4.Find out the value of objective function at these points 5.Find out the optimal solution and the optimal value of objective function if it exists
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B. IsoProfit or IsoCost Line Method 1.Define the problem mathematically 2. Graph by constraints by treating each inequality as equality 3. Locate the feasible region and the corner points 4.Draw out a line having the slope of Objective Function Equation (this is called IsoCost / Profit Line in Minimization and Maximization problems respectively) somewhere in the middle of the feasible region.
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3. Solving Linear programming (LP)
Move this line away from origin (in case of Maximization) or towards Origin (in case of Minimization) until it touches the extreme point of the feasible region 6. If a single point is encountered, that reflects optimality and its coordination is the solution. If IsoProfit/ Cost line coincides with any constraint line at the extreme, then this is the case of multiple optimum solutions.
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Example1. The productmix problem at Shader Electronics
Two products
1. Shader Xpod, a portable music player
2. Shader BlueBerr y, an internetconnected
color telephone Determine the mix of products that will produce the maximum profit
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Hours Required to Produce 1 Unit
Xpods (X _{1} )
BlueBerrys (X _{2} )
Available Hours This Week
Department
Electronic 
4 
3 
240 
Assembly 
2 
1 
100 
Profit per unit 
$7 
$5 
Decision Variables:
X _{1} = number of Xpods to be produced X _{2} = number of BlueBerrys to be produced
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Objective Function:
Maximize Profit = $7X + $5X
1
2
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First Constraint:
Electronic time used
is ≤
Electronic time available
4X _{1} + 3X _{2} ≤ 240 (hours of electronic time)
SecondSecond Constraint:Constraint:
Assembly time used
is ≤
Assembly time available
2X _{1} + 1X _{2} ≤ 100 (hours of assembly time)
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variables 1. Plot the constraint equations at their limits by converting each equation to an equality
2. Identify the feasible solution space 3. Create an isoprofit line based on the objective function 4. Move this line outwards until the optimal point is identified
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XX 22
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of Watchr Watch TVsTVs
NumbeNumbe r of
XX 22
Iso‐ Profit Line Solution Method
100 –
–
Choose a possible value for the objective function
8080
–
AssemblyAssembly (constraint(constraint B)B)
6060
4040
–
–
–
–
$ 210 = 7X _{1} + 5X _{2}
Solve for the axis intercepts of the function and plot the line
–
ElectronicsElectronics (constraint(constraint A)A)
2020
– Feasible
– region
FigureFigure .3.3
–
00
X
2
= 42
2020
4040
X = 30
1
6060
8080
100100
NumberNumber ofof XXppodsods
XX 11
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XX 22
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XX 22
Number of Xpods
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XX 11
Figure .5
X 2
Number of Xpods
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^{X} ^{1}
Figure .6
Numb er of Blue Berrys
Number of Xpods
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^{X} ^{1}
Figure .7
The optimal value will always be at a corner point
Find the objective function value at each corner point and choose the one with the hi g hest profit
Point 1 : 
(X _{1} = 0, X _{2} = 0) 
Profit $7(0) + $5(0) = $0 
Point 2 : 
(X _{1} = 0, X _{2} = 80) 
Profit $7(0) + $5(80) = $400 
Point 4 :
(X _{1} = 50, X _{2} = 0)
Profit $7(50) + $5(0) = $350
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Solve for the intersection of two constraints
point
4X
3X
240 (electronics time)
Find the obj ective function value at each corner
1
2
+
≤
point and choose the one with the highest profit
1
+
2
≤
2X
1X
100 (assembly time)
Point 1 :
Po int 2 :
Point 4 :
4X _{1} 
+ 3X _{2} 
= 
240 
 4X _{1} 
 2X _{2} 
= 
200 
(X _{1} = 0, X = 0) + 1X 2 = 
40 
2
(X _{1} = 0 , X _{2} = 80)
(X _{1} = 50, X _{2} = 0)
4X _{1} 
+ 
3(40) 
= 
4X _{1} 
+ 
120 
= 
Profit $7(0) + $5(0) = $0
X
1
=
240
240
30
Pro fit $7(0) + $5(80) = $400
Profit $7(50) + $5(0) = $350
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The optimal value will always be at a corner point
Find the ob j ective function value at each corner point and choose the one with the highest profit
Point 1 : 
(X _{1} = 0, X _{2} = 0) 
Profit $ 7(0) + $ 5(0) = $ 0 
Point 2 : 
(X _{1} = 0, X _{2} = 80) 
Profit $7(0) + $5(80) = $400 
Point 4 : 
(X _{1} = 50, X _{2} = 0) 
Profit $7(50) + $5(0) = $350 
Point 3 : 
( X _{1} = 30 , X _{2} = 40 ) 
Profit $ 7 ( 30 ) + $ 5 ( 40 ) = $ 410 
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Formulated and solved in much the same way as maximization problems In the graphical approach an isocost line is used The objective is to move the isocost line inwards until it reaches the lowest cost corner point
X _{1} = number of tons of blackandwhite picture chemical produced X _{2} = number of tons of color picture chemical produced
Minimize total cost = 2,500X _{1} + 3,000X _{2} Subject to:
X _{1} ≥ 30 tons of blackandwhite chemical
X _{2} ≥ 20 tons of color chemical
X _{1} + X _{2}
≥ 60 tons total
X _{1} , X _{2} ≥ $0 nonnegativity requirements
6060
50
4040
30
2020
_{1}_{0}
^{X} ^{1}
Table .9
4. (LP) Simplex Method
Realistic linear programming problems often have several decision variables and many constraints.
problems 
cannot 
be 
solved 
graphically; 

Such instead 
an algorithm 
such 
as 
the 
simplex 
procedures is used.
thus the most effective
analytical method of solving linear programming
problems.
Simplex
method
is
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The simplex method is an ITERATIVE or “step by step” method or repetitive algebraic approach that moves automatically from one basic feasible solution to another basic feasible solution improving the situation each time until the optimal solution is reached at.
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4. (LP) Simplex Method
Objective Function Optimize (Max. or Min.) z = Subject to: (Constraints) Σ a _{i}_{j} x _{j} (≤, =, ≥) bi ; for j = 1
Σ c _{j} x _{j} for j = 1
n
i = 1,2, …m
n,
(Non negativity restrictions) x _{j} ≥ 0 ; j= 1, 2, …, n
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4. Simplex methods
General Mathematical Formulation of LP Optimize (Maximize or Minimize) Z = c _{1} x _{1} + c _{2} x _{2} +…+c _{n} x _{n} Subject to:
a _{1}_{1} x _{1} + a _{1}_{2} x _{2} +…+ a _{1}_{n} x _{n} (≤, =, ≥) b _{1} a _{2}_{1} x _{1} + a _{2}_{2} x _{2} +…+ a _{2}_{n} x _{n} (≤, =, ≥) b _{2}
.
.
a _{m}_{1} x _{1} + am _{2} x _{2} +…+ a _{m}_{n} x _{n} (≤, =, ≥ ) b _{m}
and
x _{1} , x _{2} , …x _{n} ≥ 0
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4. (LP) Simplex Method
1. The standard form of LP problem
i. All the constraints should be expressed as equations by slack or surplus and/or artificial variables
ii. The right hand side of each constraint should be made nonnegative; if it is not, this should be done by multiplying both sides of the resulting constraint by 1
Example:
2X _{1} +3X _{2} 4X _{3} +X _{4} ≤ 50, that gives 2X _{1} 3X _{2} +4X _{3} X _{4} ≤ 50
we multiply both sides by negative
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4. (LP) Simplex Method
iii. Three types of additional variables, namely a. Slack Variable (S) b. Surplus variable (S), and c. Artificial variables (A)
are added in the given LP problem to convert it into standard form for two reasons:

To convert an inequality into equation to have a 

standard form of an LP 
model, and 


To get an initial feasible solution represented by the columns of an identity matrix. 
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4. (LP) Simplex Method
The summery of the extra variables needed to add in the given LP problem to convert it into standard form is given below.
Types of 
Extra variables to be added 
Coefficient of extra variables in the objective function 
Presence of variables in the initial solution mix 

constraint 

Max Z 
Min Z 

≤ 
Add only slack variable 
0 
0 
Yes 

≥ 
Subtract surplus d var a i bl e an 
0 
0 
No 

Add artificial variable 
M 
+M 
Yes 

= 
Add artificial variable 
M 
+M 
Yes 
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4. (LP) Simplex Method
Some Definitions Solution: pertains to the values of decision variables that satisfies constraints Feasible solution: Any solution that also satisfies the non negativity restrictions Basic Solution: For a set of m simultaneous equations in n unknowns (n>m), a solution obtained by setting n m of the variables equal to zero and solving the m equation in m unknowns is called basic solution.
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Basic Feasible solution: A feasible solution that is also basic Optimum Feasible solution: Any basic feasible solution which optimizes the objective function Degenerate Solution: when one or more basic variable becomes equal to zero. 2. Test of optimality
i.
ii.
If
all
Z _{j}

C
_{j}
>
0, then
the basic
optimal (Maximization case)
C _{j}
optimal (Minimization case)
If
all
Z _{j}
0, then
the basic

<
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feasible solution is
feasible solution is
4. (LP) Simplex Method
3. Variable to enter the basis i. A variable that has the highest negative value in the Z _{j} C _{j} row (Maximization case) ii. A variable that has the most positive value in the Z _{j} C _{j} row(Minimization case)
4. Variable to leave the basis The row with the worst negative/largest positive and minimum replacement ratio (or both maximization & minimization cases respectively).
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4. (LP) Simplex Method
Steps in simplex methods:
Step 1: Formulate LP Model Step 2: Standardize the problem Step 3: Obtain the initial simplex tableau Step 4: check optimality (optimality test) Step 5: Choose the “incoming” or “entering” variables Step 6: Choose the “leaving “or “outgoing” variable Step 7:Repeat step 46 till optimum basic feasible solution is obtained. Or go to step 3 and repeat the procedure until all entries in the C _{j} – Z _{j} row are either negative or zero.
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4. (LP) Simplex Method
Example:1
Solve the problem using the simplex approach Max. Z=300x _{1} +250x _{2}
Subject to:
2x _{1} + x _{2} < 40
x _{1} +3x _{2} <
x _{1} x _{1} ,
< 45
12
> 0
x _{2}
(Labor ) (Machine) (Marketing)
Example:2 Simplex Method
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5. Big Mmethod
Minimize Z with inequalities of constraints in “> “form.
There are two methods to solve minimization LP problems:
1. Direct method/Big Mmethod/: Using artificial variables 2. Conversion method: Minimization by maximizing the dual
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Surplus Variable (s):
 A variable inserted in a greater than or equal to constraint to create equality. It represents the amount of resource usage above the minimum required usage.
Surplus variable is subtracted from a > constraint in the process of converting the constraint to standard form. Neither the slack nor the surplus is negative value. They must be positive or zero.

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5. Big Mmethod
Example: let us consider 5x _{1} +2x _{2} ≥ 20
When x _{1} = 4.5 and x _{2} = 2 ==>5(4.5)+2(2)s = 20 ==> s=11
When x _{1} = 2 and x _{2} = 5 ==>
s= 0
But when x _{1} = 0 and x _{2} = 0 (No production) ==> s = 20 (This is mathematically unaccepted). Thus, in order to avoid the mathematical contradiction, we have to add artificial variable (A) Artificial variable (A): Artificial variable is a variable that has no meaning in a physical sense but acts as a tool to create an initial feasible LP solution.
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Note that:
Type of constrain
To put into standard form
≤  Add a slack variable =  Add an artificial variable ≥  Subtract a surplus variable & add artificial variable
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5. Big Mmethod
Following are the characteristics of BigM Method:
1. High penalty cost (or profit) is assumed as M
2.
M
is
assigned to artificial
objective function Z.
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variable
A
in
the
3. BigM method can be applied to minimization as well as maximization problems with the following distinctions:
Minimization problems: Assign +M as coefficient of artificial variable A in an objective function Z. Maximization problems: Here –M is assigned as coefficient of artificial variable A in the objective function Z.
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5. Big Mmethod
4. Coefficient of S (slack/surplus) takes zero values in the objective function Z
5. For minimization problem, the incoming variable corresponds to a highest positive value of Z _{j}  C _{j} .
6. Solution is optimal when all the values of Z  C non positive (For minimization case)
j
j
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Example 1: Big method
The ABC printing company is facing a tight financial squeeze and is attempting to cut costs wherever possible. At present it has only one printing contract, and luckily the book is selling well in both the hardcover and paper back editions. It has just received a request to print more copies of this book in either the hardcover or paperback form. The printing cost for hardcover books is birr 600 per 100 while that for paperback is only birr 500 per 100. Although the company is attempting to economize, it does not wish to lay off any employee. Therefore, it feels oblized to run its two printing presses at least 80 and 60 hours per week, respectively. Press I can produce 100 hardcover books in 2 hours or 100 paperback books in 1 hour. Press II can produce 100 hardcover books in 1 hour or 100 paperbacks books in 2 hours. Determine how many books of each type should be printed in order to minimize costs.
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Example 2 : Big  method
Minimize
Z= 25x _{1} +30x _{2}
Subject to:
20x _{1} +15x _{2} > 100
2x _{1} + 3x _{2}
x _{1} , x _{2}
> 15
> 0
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6. Duality and Sensitivity
Every LP has another LP associated with it, which is called its dual. The first way of starting a linear problem is called the primal of the problem. The second way of starting the same problem is called the dual. The optimal solutions for the primal and the dual are equivalent, but they are derived through alternative procedures.
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6.1 Primal and Duality
The dual contains economic information useful to management, and it may also be easier to solve, in terms of less computation than the primal problem. Corresponding to every LP, there is another LP. The given problem is called the primal.
the given problem is
The related
problem
to
known as the dual.
Amare Matebu (Dr.) ‐ BDU IOT
The dual of a dual is the primal If the primal has optimal solution ,the dual will have optimal solution If the primal has no optimal solution, the dual will not have optimal solution. Whether we follow the dual or primal system, the optimal solution will remain equal.
Amare Matebu (Dr.) ‐ BDU IOT
6.1 Primal and Duality
Primal 
Dual 
Objective is minimization 
Objective is maximization & vice versa 
≥ type constraints 
≤ type constraints 
Number of columns 
Number of rows 
Number of rows 
Number of columns 
Number of decision variables 
Number of constraints 
Number of constraints 
Number of decision variables 
Coefficient of objective function 
RHS value 
RHS values 
Coefficient of objective function 
Amare Matebu (Dr.) ‐ BDU IOT
Finding the Dual of an LP
Define the variables for a max problem to be z,
x _{1} , x _{2} , …,x _{n} an
d
t
h
i
e var a
bl
es
be w, y _{1} , y _{2} , …, y _{n} .
f
i
or a m n pro
bl
em to
Finding the dual to a max problem in which all
the variables are required to be nonnegative and all
the constraints are ≤ constraints (called normal max
problem) is shown on the next slide.
Amare Matebu (Dr.) ‐ BDU IOT
Finding the Dual of an LP
N
l
orma max pro
bl
em
It’s dual
Normal min problem
It’s dual
Amare Matebu (Dr.) ‐ BDU IOT
Economic Interpretation of the Dual Problem
Example: A Dakota work shop want to produce desk, table, and chair with the available resource of: Timber, Finishing hours and carpenter hours as revised in the table below. The selling price and available resources are also revised in the table. Formulate the this problem as Primal and Dual Problem?
Resource 
Desk 
Table 
Chair 
Availability 

Timmber 
8 
board ft 
6 board ft 
1 board ft 1.5 hours 0.5 hours 
48 
boards fit 
Finishing 
4 
hours 
2 hours 
20 
hours 

Carpentry 
2 
hours 
1.5 hours 
8 hours 

Selling price 
$60 
$30 
$20 
Amare Matebu (Dr.) ‐ BDU IOT
Amare Matebu (Dr.) ‐ BDU IOT
Economic Interpretation of the Dual Problem
The first dual constraint is associated with desks, the second with tables, and the third with chairs. Decision variable y _{1} is associated with Timber, y _{2} with finishing hours, and y _{3} with carpentry hours. Suppose an entrepreneur wants to purchase all of Dakota’s resources. The entrepreneur must determine the price he or she is willing to pay for a unit of each of Dakota’s resources.
Amare Matebu (Dr.) ‐ BDU IOT
To determine these prices we define :
y _{1} = price paid for 1 boards ft of lumber
y _{2} = price paid for 1 finishing hour
y i _{3} = pr ce pa 
id f or 
1 carpentry 
h 
our 

The resource prices y _{1} , 
y _{2} , 
and 
y _{3} 
should 
be 
determined by solving the Dakota dual.
Amare Matebu (Dr.) ‐ BDU IOT
The total
price that should be paid for these
resources is 48 y _{1} + 20y _{2} + 8y _{3} . Since the cost of
purchasing the resources is to minimized:
Min w = 48y
for Dakota dual.
20
_{1} +
y _{2} +
8
y
3
i
s t
h
e o
b
i
ject ve
f
i
unct on
In setting resource prices, the prices must be high
enough to induce Dakota to sell.
Amare Matebu (Dr.) ‐ BDU IOT
For example, the entrepreneur must offer Dakota at least $60 for a combination of resources that includes 8 board feet of timber, 4 finishing hours, and 2 carpentry hours because Dakota could, if it wished, use the resources to produce a desk that could be sold for $60. Since the entrepreneur is offering 8y _{1} + 4y _{2} + 2y _{3} for the resources used to and
produce a desk, he or she must chose y
_{1} , y _{2} ,
y _{3} to satisfy:
8y _{1} + 4y _{2} +
2y _{3} ≥ 60.
Amare Matebu (Dr.) ‐ BDU IOT
Economic Interpretation of the Dual Problem
Similar reasoning shows that at least $30 must be paid for the resources used to produce a table. Thus y _{1} , y _{2} , and y _{3} must satisfy: 6y _{1} + 2y _{2} + 1.5y _{3} ≥ 30 Likewise, at least $20 must be paid for the combination of resources used to produce one chair. Thus y _{1} , y _{2} , and y _{3} must satisfy: y _{1} + 1.5y _{2} + 0.5y _{3} ≥ 20 The solution to the Dakota dual yields prices for timber, finishing hours, and carpentry hours.
Amare Matebu (Dr.) ‐ BDU IOT
Amare Matebu (Dr.) ‐ BDU IOT
6.2 Sensitivity Analysis
In an LP model, the input data (also known as parameters) such as:
i) Profit (cost) contribution C _{j} per unit of decision variable ii) Availability of resources (b ) iii) Consumption of resources per unit of decision variables (a _{i}_{j} ) are assumed constant and known with certainty during a planning period.
j
Amare Matebu (Dr.) ‐ BDU IOT
However, in realworld situations some data may change over time because of the dynamic nature of business: such changes in any of these parameters may raise doubt on the validity of the optimal solution of the given LP model. Thus, the decision maker in such situation would like to know how sensitive the optimal solution
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