Kurdistan Regional Government-Iraq

Ministry of Higher Education and Scientific Research

Lebanese French University

College of Administration and Economics

Department of accounting

(Second Stage)(A)

The General Structure of Linear Programming Model

Involving Two Variables
The student’s name: Lana Tahr Azez

The name of the teacher: Dr. Nagaraju Gajjela

Academic year: 2019-2020

Name of the lecturer: Operation Research

: Signature: Date:
Mark (number)mark(written) signature

Contents
Introduction.............................................................................................................2
Structure of a linear program model.....................................................................2
Structure of Linear Programming Problem.........................................................3
Methods....................................................................................................................4
Unbalanced Transportation Problem....................................................................6
Linear Equations.....................................................................................................8
The Importance of Linear Programming..............................................................9
Reference................................................................................................................10

Introduction
Introducing the subject of Linear Programming (LP) it is rather useful to present the graphical
method for solving a two-variable linear program as it provides valuable in-sights about the
general nature of multivariable linear programming models. The graphical method illustrates
numerous aspects of the more complex, algebra-based, solution algorithm - the simplex
method. Specifically, graphically solving a linear program pro-vides students with intuitive
visual aids to facilitate their understanding of concepts such as the feasible region, basic feasible
solutions, unbounded solutions, binding /nonbinding constraints, degeneracy, slack, and so on.
Nonetheless, without a dynamic tool, it is not easy to show students what happens in a (two-
variable) LP problem as constraint boundary lines and objective-value line’s move around on a
graphic. To provide students with an effective learning environment a tool should show
graphically and dynamically the construction of the feasible region of two-variable linear
programs, and should allow to interactively experiment with the feasible solutions set and the
objective function. This kind of tool is what is called an active learning tool. Active learning is
generally defined as any instructional method that engages students in the learning
process . The core elements of active learning are student activity and engagement in the
learning process within the classroom. In short, active learning requires students to do
meaningful learning activities and think about what they are doing. Prince. summarizes some of
the most relevant literature in the field of active learning, which report strong evidences of the
effectiveness of using active learning techniques. In particular, the effectiveness of using an
active learning technical tool while teaching linearprogramming. [1]
Structure of a linear program model

Roughly speaking, the linear programming problem consists in optimizing (that is, either
minimize or maximize) the value of a linear objective function of a vector of decision variables,
considering that the variables can only take the values defined by a set of linear constraints.
Linear programming is a case of mathematical programming, where objective function and
constraints are linear. A formulation of a linear program in its canonical form of maximum is:

MAX z = c1x1 + c2x2 + · · · + cnxn s. t. a11x1 + a12x2 + · · · + a1nxn ≤ b1 a21x1 + a22x2 + · ·

· + a2nxn ≤ b2 . . . am1x1 + am2x2 + · · · + amnxn ≤ bm xi ≥ 0

The model has the following elements: • An objective function of the n decision variables xj .
Decision variables are affected by the cost coefficients cj • A set of m constraints, in which a
linear combination of the variables affected by coefficients aij has to be less or equal than its
right hand side value bi (constraints with signs greater or equal or equalities are also possible)[2]

Structure of Linear Programming Problem

The present section serves the purpose of building your vocabulary of the terms frequently
employed in the description of Linear Programming Models.

Linear Function

A linear function contains terms each of which is composed of only a single, continuous variable
raised to (and only to) the power of 1.

Objective Function

It is a linear function of the decision variables expressing the objective of the decision-maker.
The most typical forms of objective functions are: maximize f(x) or minimize f(x).

Decision Variables
These are economic or physical quantities whose numerical values indicate the solution of the
linear programming problem. These variables are under the control of the decision-maker and
could have an impact on the solution to the problem under consideration. The relationships
among these variables should be linear.

Constraints

These are linear equations arising out of practical limitations. The mathematical forms of the
constraintsare:
f(x)  b or f(x)  b or f(x) = b

Feasible Solution

Any non-negative solution which satisfies all the constraints is known as a feasible solution. The
region comprising all feasible solutions is referred to as feasible region.

Optimal Solution

The solution where the objective function is maximized or minimized is known as optimal
solution.

Methods

 Linear Programming. Linear Programming (LP) is a mathematical technique of

assigning a fixed amount of resources to satisfy a number of demands in such a way that
some objective is optimized and other defined conditions are also satisfied.
 Transportation Problem. The transportation problem is a special type of linear
programming problem, where the objective is to minimize the cost of distributing a
product from a number of sources to a number of destinations.
 Assignment Problem. Succinctly, when the problem involves the allocation of n
different facilities to n different tasks, it is often termed as an assignment problem.
 Queuing Theory. The queuing problem is identified by the presence of a group of
customers who arrive randomly to receive some service. This theory helps in calculating
the expected number of people in the queue, expected waiting time in the queue, expected
idle time for the server, etc. Thus, this theory can be applied in such situations where
decisions have to be taken to minimize the extent and duration of the queue with
minimum investment cost.
 Game Theory. It is used for decision making under conflicting situations where there are
one or more opponents (i.e., players). In the game theory, we consider two or more
persons with different objectives, each of whose actions influence the outcomes of the
game. The game theory provides solutions to such games, assuming that each of the
players wants to maximize his profits and minimize his losses.
 Inventory Control Models. It is concerned with the acquisition, storage, handling of
inventories so as to ensure the availability of inventory whenever needed and minimize
wastage and losses. It help managers to decide reordering time, reordering level and
optimal ordering quantity.
 Goal Programming. It is a powerful tool to tackle multiple and incompatible goals of an
enterprise.
 Simulation. It is a technique that involves setting up a model of real situation and then
performing experiments. Simulation is used where it is very risky, cumbersome, or time
consuming to conduct real study or experiment to know more about a situation.
 Nonlinear Programming. These methods may be used when either the objective
function or some of the constraints are not linear in nature. Non-Linearity may be
introduced by factors such as discount on price of purchase of large quantities.
 Integer Programming. These methods may be used when one or more of the variables
can take only integral values. Examples are the number of trucks in a fleet, the number of
generators in a power house, etc.
 Dynamic Programming. Dynamic programming is a methodology useful for solving
problems that involve taking decisions over several stages in a sequence. One thing
common to all problems in this category is that current decisions influence both present
& future periods. [3]
  Sequencing Theory. It is related to Waiting Line Theory. It is applicable when the
facilities are fixed, but the order of servicing may be controlled. The scheduling of
service or sequencing of jobs is done to minimize the relevant costs. For example,
patients waiting for a series of tests in a hospital, aircrafts waiting for landing clearances,
etc.
 Replacement Models. These models are concerned with the problem of replacement of
machines, individuals, capital assets, etc. due to their deteriorating efficiency, failure, or
breakdown.
 Markov Process. This process is used in situations where various states are defined and
the system moves from one state to another on a probability basis. The probability of
going from one state to another is known. This theory helps in calculating long run
probability of being in a particular state.
 Network Scheduling-PERT and CPM. Network scheduling is a technique used for
planning, scheduling and monitoring large projects. Such large projects are very common
in the field of construction, maintenance, computer system installation, research and
development design, etc. Projects under network analysis are broken down into
individual tasks, which are arranged in a logical sequence by deciding as to which
activities should be performed simultaneously and which others sequentially.
 Symbolic Logic. It deals with substituting symbols for words, classes of things, or
functional systems. It incorporates rules, algebra of logic, and propositions. There have
been only limited attempts to apply this technique to business problems; however, it is
extensively used in designing computing machinery.
 Information Theory. It is an analytical process transferred from the electrical
communications field to operations research. It seeks to evaluate the effectiveness of
information flow within a given system and helps in improving the communication flow.
[3]

Unbalanced Transportation Problem

So far we have assumed that the total supply at the origins is equal to the total requirement at the
destinations.
Specifically,

Si = Dj
But in certain situations, the total supply is not equal to the total demand. Thus, the
transportation problem with unequal supply and demand is said to be unbalanced transportation
problem.

If the total supply is more than the total demand, we introduce an additional column, which will
indicate the surplus supply with transportation cost zero. Similarly, if the total demand is more
than the total supply, an additional row is introduced in the table, which represents unsatisfied
demand with transportation cost zero. The balancing of an unbalanced transportation problem is
illustrated in the following example.[4]

Example

Warehouse Suppl
Plant
W1 W2 W3 y

A 28 17 26 500
B 19 12 16 300
Deman
250 250 500  
d

Solution:

The total demand is 1000, whereas the total supply is 800.

Si < Dj
Total supply < total demand.
To solve the problem, we introduce an additional row with transportation cost zero indicating the
unsatisfied demand.

Warehouse
Plant Supply
W1 W2 W3
A 28 17 26 500
B 19 12 16 300
Unsatisfied
0 0 0 200
demand
Demand 250 250 500 1000

Using matrix minimum method, we get the following allocations.

Warehouse Supply
Plant
W1 W2 W3

A 17 500

B 19 300

Unsatisfied
0 0 200
demand

Demand 250 250 500 1000

Initial basic feasible solution

50 X 28 + 450 X 26 + 250 X 12 + 50 X 16 + 200 X 0 = 16900.

Linear Equations
All of the equations and inequalities in a linear program must, by definition, be linear. A linear
function has the following form:

a0 + a1 x1 + a2 x2 + a3 x3 + . . . + an xn = 0
In general, they are called the coefficients of the equation; they are also sometimes called
parameters. The important thing to know about the coefficients is that they are fixed values,
based on the underlying nature of the problem being solved. The x’s are called the variables of
the equation; they are allowed to take on a range of values within the limits defined by the
constraints. Note that it is not necessary to always use x’s to represent variables; any label could
be used, and more descriptive labels are often more useful.

Linear equations and inequalities are often written using summation notation, which makes it
possible to write an equation in a much more compact form. The linear equation above, for
example, can be written as follows:

Note that the letter i is an index, or counter that starts in this case at 1 and runs to n. There is a
term in the sum for each value of the index. Just as a variable does not have to be specified with
a letter x, the index does not have to be a letter I. Summation notation will be used a lot in the
rest of this chapter and in all of the remaining chapters. You will need to become adept at
interpreting it.

The Importance of Linear Programming

Since linear programming (LP) technology can solve large problems reliably, it was the first
method widely used for optimization using digital computation. It remains one of the most
important – likely the most important – optimization method. Linear programming is used in a
wide range of applications, such as design, manufacturing, personnel planning, investment
management, statistics, public health, national public policy, and many more. A linear
programming (LP) problem involves many variables and equations. Current software can solve
100s of thousands to millions of equations and variables in a reasonable time. How can we solve
such large mathematical problems? The key feature is in the name – linear programming. After
several years of engineering study, you have seen that most models involve non-linear
expressions, and therefore, you might be dubious about the value of linear model. Please keep an
open mind, because we will see many useful applications and learn model formulations that
enable us to solve realistic problems with linear programming. Optimization in general, and
linear programming in many instances, is a natural way to formulate and solve engineering
problems. In the past, problems requiring fast solution could not be solved using optimization, so
that ad hoc solution methods were developed that gave rapid, but sub-optimal, solutions. An
example is automatic control, whose development predated digital computation and linear
programming. However, linear programming can solve some problems very fast and is replacing
older methods in selected real-time applications.[5]

Reference

1. Sen, S. and J.L. Higle, An introductory tutorial on stochastic linear programming

models. Interfaces, 1999. 29(2): p. 33-61.
2. Bennett, J.M., An approach to some structured linear programming problems.
Operations Research, 1966. 14(4): p. 636-645.
3. Dorfman, R., P.A. Samuelson, and R.M. Solow, Linear programming and economic
analysis. 1987: Courier Corporation.
4. Färe, R., et al., Data envelopment analysis and its related linear programming models.
Annals of Operations Research, 2017. 250(1): p. 37-43.
5. Marlin, T., Linear Programming Key Terms, Concepts, & Methods for the User. 2002.