LINEAR PROGRAMMING

LINEAR PROGRAMMING
A mathematical technique
designed to help operations
managers plan and make
decisions relative to the tradeoffs necessary to optimize the
usage of limited resources.

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APPLICATIONS:
Selecting the product mix in a factory
Picking blends of raw materials in feed
mills
Scheduling school buses
Allocating police patrol units to high
crime areas

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REQUIREMENTS OF A LINEAR PROGRAMMING PROBLEM
1. LP problems seek to maximize or minimize some quantity
(usually profit or cost).
2. The presence of restrictions, or constraints, limits the
degree to which we can pursue our objective.
3. There must be alternative courses of action to choose
from.
4. The objective and constraints in linear programming
problems must be expressed in terms of linear equations
or inequalities.

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FORMULATION OF A LINEAR PROGRAMMING PROBLEM
The Shader Electronics Company produces two products: (1) the Shader
Walkman, a portable CD/DVD player, and (2) the Shader Watch-TV, a
wristwatch-size internet-connected color television. The production process
for each product is similar in that both require a certain number of hours of
electronic work and a certain number of labor-hours in the assembly
department. Each Walkman takes 4 hours of electronic work and 2 hours in
the assembly shop. Each Watch-TV requires 3 hours in electronics and 1
hour in assembly. During the current production period, 240 hours of
electronic time are available, and 100 hours of assembly department time
are available. Each Walkman sold yields a profit of $7; each Watch-TV
produced may be sold for a $5 profit.

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SIMPLEX ALGORITHM
(Maximization)

Developed by George Dantzig in 1946, It

provides us with a systematic way of
examining the vertices of the feasible
region to determine the optimal value of
the objective function.

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KEY TERMS:

Slack variable this is used for constraints of the type . It

represents how much of your capacity in that particular
regard you aren't using.
entering variable - corresponds to the smallest (the most
negative) entry in the bottom row of the tableau.
departing variable - corresponds to the smallest
nonnegative ratio in the column determined by the entering
variable.

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KEY TERMS:
basic solution - is a solution of the constraint equations in
which at most m variables are
nonzero
basic variables - the variables that are nonzero.
basic feasible solution - A basic solution for which all
variables are nonnegative.

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steps involved in the simplex method
(Maximization)
1. Convert each inequality in the set of constraints to an equation
by adding slack variables.
2. Create the initial simplex tableau.
3. Locate the most negative entry in the bottom row. The column
for this entry is called the entering column.
4. Form the ratios of the entries in the b-column with their
corresponding positive entries in the entering column. The
departing row corresponds to the smallest nonnegative ratio.

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steps involved in the simplex method
(Maximization)
5. Use elementary row operations so that the pivot is 1, and all
other entries in the entering column are 0. This process is
called pivoting.
6. If all entries in the bottom row are zero or positive, this is
the final tableau. If not, go back to Step 3.
7. If you obtain a final tableau, then the linear programming
problem has a maximum solution, which is given by the entry
in the lower-right corner of the tableau.

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Sample Problem
The advertising alternatives for a company include
television, radio, and newspaper advertisements. The
costs and estimates for audience coverage are given in
the table.

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The local newspaper limits the number of weekly
advertisements from a single company to ten. Moreover, in
order to balance the advertising among the three types of
media, no more than half of the total number of
advertisements should occur on the radio, and at least 10%
should occur on television. The weekly advertising budget is
$18,200. How many advertisements should be run in each of
the three types of media to maximize the total audience?

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SIMPLEX ALGORITHM
(Minimization)
The von Neumann Duality Principle
The objective value w of a minimization problem in
standard form has a minimum value if and only if the
objective value z of the dual maximization problem has a
maximum value. Moreover, the minimum value of w is
equal to the maximum value of z.

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steps used to solve a minimization
1. problem
Form the augmented matrix for the given system of inequalities,
and add a bottom row consisting of the coefficients of the objective
function.
2. Form the transpose of this matrix.
3. Form the dual maximization problem corresponding to this
transposed matrix.
4. Apply the simplex method to the dual maximization problem. The
maximum value of z will be the minimum value of w. Moreover, the
values of , , . . . , and will occur in the bottom row of the final simplex
tableau, in the columns corresponding to the slack variables.

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Sample Problem

Minimize
subject to the constraints

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Application
(Problem)
A small petroleum company owns two refineries. Refinery 1 costs
$20,000 per day to operate, and it can produce 400 barrels of highgrade oil, 300 barrels of medium-grade oil, and 200 barrels of low-grade
oil each day. Refinery 2 is newer and more modern. It costs $25,000 per
day to operate, and it can produce 300 barrels of high-grade oil, 400
barrels of medium-grade oil, and 500 barrels of low-grade oil each day.
The company has orders totaling 25,000 barrels of high-grade oil,
27,000 barrels of medium-grade oil, and 30,000 barrels of low-grade oil.
How many days should it run each refinery to minimize its costs and
still refine enough oil to meet its orders?

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The M-Method
It is used to solve maximization and
minimization problems with any combination
of , , = constraints.

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Key Terms:
Artificial Variable - is a variable introduced into each equation that
has a surplus variable. This variable has no physical meaning in the
original problem and is introduced solely for the purpose of obtaining a
basic feasible solution so that we can apply the simplex method. The
variable is disposed of at a later iteration.
Penalty is assigned to the artificial variable in the objective function
to force them to zero level at a later iteration of the simplex algorithm.

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The M-Method
(Summary)
1. Form the preliminary
simplex tableau for the modified
problem.
2. Use row operations to eliminate the Ms in the bottom row of
the preliminary simplex tableau in the columns corresponding
to the artificial variables. The resulting tableau is the initial
simplex tableau.
3. Solve the modified problem by applying the simplex method
to the initial simplex tableau found in the second step.

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Formulation of the Modified Problem
If any problem constraints have negative constants on the right side,
multiply both sides by -1 to obtain a constraint with a nonnegative
constant. Remember to reverse the direction of the inequality if the
constraint is an inequality.
Introduce a slack variable for each constraint of the form .
Introduce a surplus variable and an artificial variable in each
constraint.
Introduce an artificial variable in each = constraint.
For each artificial variable a, add Ma to the objective function in the
case of maximization and Ma in the case of minimization. Use the
same constant M for all artificial variables.

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Sample Problem

Maximize
subject to the constraints