OPERATIONS RESEARCH

Linear Programming

Dr. Arunkumar O N,
Assistant Professor,
Symbiosis Institute of Operations Management,
Constituent of Symbiosis International (Deemed University), Pune.
Email: arunon27@gmail.com
Session 1
Module 1: Introduction to Operations Research
 Introduction
 Historical Perspective
 Definition of OR
 Phases in OR intervention
 Application in business

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 Contents
 Linear Programming:
 Mathematical Formulation and Assumptions
 Graphical solution, Special cases
 Simplex Method
 Sensitivity
 Duality and post-optimality analysis
 Applications.

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 Session 2

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  Mathematical Formulation of Linear Programming:
 Introduction to Linear Programming
 Mathematical Formulation and Assumptions
 Linear Programming Problem Formulation
 Assumptions
 Applications
 Problems

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 Introduction to Linear Programming
 Linear Programming is a special and versatile technique which
can be applied to a variety of management problems viz.
 Advertising
 Distribution
 Investment
 Production
 Refinery Operations, and
 Transportation analysis
 The linear programming is useful not only in industry and
business but also in non-profit sectors such as Education,
Government, Hospital, and Libraries.
 The linear programming method is applicable in problems
characterized by the presence of decision variables.

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 Introduction to Linear Programming
The objective function and the constraints can be
expressed as linear functions of the decision
variables.
The decision variables represent quantities that are, in
some sense, controllable inputs to the system being
modeled.
An objective function represents some principal
objective criterion or goal that measures the
effectiveness of the system such as maximizing profits
or productivity, or minimizing cost or consumption.

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 Introduction to Linear Programming
There is always some practical limitation on the
availability of resources viz. man, material, machine,
or time for the system.
These constraints are expressed as linear equations
involving the decision variables.
Solving a linear programming problem means
determining actual values of the decision variables that
optimize the objective function subject to the
limitation imposed by the constraints.

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 Introduction to Linear Programming
The main important feature of linear programming
model is the presence of linearity in the problem.
The use of linear programming model arises in a wide
variety of applications.
Some model may not be strictly linear, but can be made
linear by applying appropriate mathematical
transformations.
Still some applications are not at all linear, but can be
effectively approximated by linear models.
The ease with which linear programming models can
usually be solved makes an attractive means of dealing
with otherwise intractable nonlinear models.
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 Assumptions in Linear Programming Models

Proportionality
Additivity
Continuity
Certainty
Finite Choices

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 Proportionality:
The basic assumption underlying the linear programming
is that any change in the constraint inequalities will have
the proportional change in the objective function.
This means, if product contributes Rs 20 towards the
profit, then the total contribution would be equal to 20x1,
where x1 is the number of units of the product.
For example, if there are 5 units of the product, then the
contribution would be Rs 100 and in the case of 10 units,
it would be Rs 200. Thus, if the output (sales) is doubled,
the profit would also be doubled.

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 Additivity:
The assumption of additivity asserts that the total
profit of the objective function is determined by the
sum of profit contributed by each product separately.
Similarly, the total amount of resources used is
determined by the sum of resources used by each
product separately.
This implies, there is no interaction between the
decision variables.

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 Continuity:
Another assumption of linear programming is that the
decision variables are continuous.
This means a combination of outputs can be used with the
fractional values along with the integer values.
For example:
 If 52/3 units of product A and 101/3 units of product B to be produced
in a week.
 In this case, the fractional amount of production will be taken as a
work-in-progress and the remaining production part is taken in the
following week.
 Therefore, a production of 17 units of product A and 31 units of
product B over a three-week period implies 52/3 units of product A
and 101/3 units of product B per week.

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 Certainty:
Another underlying assumption of linear programming is
a certainty, i.e. the parameters of objective function
coefficients and the coefficients of constraint inequalities
is known with certainty.
Such as profit per unit of product, availability of material
and labor per unit, requirement of material and labor per
unit are known and is given in the linear programming
problem.

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 Finite Choices:
This assumption implies that the decision maker has
certain choices, and the decision variables assume non-
negative values.
The non-negative assumption is true in the sense, the
output in the production problem can not be negative.
Thus, this assumption is considered feasible.

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 Applications
Industrial Applications
 Product mix problems
 Blending problems
 Production scheduling problems
 Trim loss problems
 Assembly line balancing
 Make or buy (sub-contracting) problems
Management Applications
 Media selections problems
 Portfolio selection problems
 Profit planning problems
 Transportation problems
 Assignment problems
16  Man – power scheduling problems
 Applications
Miscellaneous Applications
 Diet problems
 Agriculture problems
 Flight scheduling problems
 Environment protection
 Facilities location

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 Linear Programming Problem Formulation
The linear programming problem formulation is
illustrated through a product mix problem.
The product mix problem occurs in an industry
where it is possible to manufacture a variety of
products.
A product has a certain margin of profit per unit,
and uses a common pool of limited resources.
In this case the linear programming technique
identifies the products combination which will
maximize the profit subject to the availability of
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limited resource constraints.
 Steps in LP Model Formulation
Step 1: Identify the decision variables
a) Express each constraint in words. For this you should first
see whether the constraint is of the form ≥, of the form ≤
or of the form =.
b) Express verbally the objective function.
c) Verbally identify the decision variables with the help of
Step (a) and (b). For this you need to ask yourself the
question – what decisions must be made in order to
optimize the objective function.?
Having followed step 1 (a) to (c) decide the symbolic
notation for the decision variables and specify their units
of measurement.
Such specification of units of measurements would help
19 in interpreting the solution of the LP problem.
 Steps in LP Model Formulation
Step 2: Identify the problem data
To formulate an LP model, identify the problem data in
terms of constants, and parameters associated with
decision variables.
It may be noted that the decision maker can control
values of the variables but cannot control values in the
data set.

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 Steps in LP Model Formulation
Step 3: Formulate the constraints
Convert the verbal expression of the constraints in terms of
resource requirement and availability of the each resource.
Then express each of them as linear equality or inequality,
in terms of the decision variables defined in step 1.
 Values of these decision variables in the optimal LP
problem solution must satisfy these constraints in order to
constitute an acceptable (feasible) solution.
Wrong formulation can either lead to a solution that is not
feasible or to the exclusion of a solution that is actually
feasible and possibly optimal.

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 Steps in LP Model Formulation
Step 4: Formulate the objective function
Identify whether the objective function is to be
maximized or minimized.
Then express it in the form of linear mathematical
expression in terms of decision variables along with
profit (cost) contributions associated with them.
After gaining enough experiences in model building,
readers may skip verbal description.
The following are certain examples of LP model
formulation that may be used to strengthen the ability
to translate a real-life problem into a mathematical
model.
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 Problem - 1
Production Allocation Problem (Hira and Gupta pp.43)
A firm produces three products.
These products are processed on three different machines.
The time to manufacture one unit of each of the tree
products and the daily capacity of the three machines are
given in the table below.

Machine Time per unit (minutes) Machine

Product 1 Product 2 Product 3 Capacity
(Minutes / day)

M1 2 3 2 440
M2 4 - 3 470
M3 2 5 - 430

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 It is required to determine the daily number of units to
be manufactured for each product .
Then profit per unit for product 1,2 and 3 is Rs. 4, Rs.
3 and Rs. 6 respectively.
It is assumed that all the amounts produced are
consumed in the market.
Formulate the mathematical (L.P.) model that will
maximize the daily profit

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 Solution:
 Let the extents (amounts) of products 1,2 and 3
manufactured daily be

Objective function is
Maximize Z = 4+3+ 6

Subjected to
2+3+ 2 ≤ 440
4+0+ 3 ≤ 470
2+5+ 0 ≤ 430

≥ 0

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 Problem – 2 Bharathiyar University Page 123

The data given in Table represents the shipping cost (in Rs.)
per unit for shipping from each warehouse to each
distribution centre.
The supply and demand data of each warehouse and
distribution centre is given.
Determine how many units should be shipped from each
warehouse to each centre in order to minimize the overall
transportation cost.
Data Shows Shipping Cost from Warehouse to Distribution
Distribution Centre
Warehouse Supply
1 2 3
1 9 10 11 150
2 4 6 8 250
26 Demand 150 100 150 400
 Solution

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 Problem – 3 Bharathiyar University Page 124

Sivakumar & Co., manufactures two types of T-shirts,

one with collar and another without collar. Each T-shirt
with collar yields a profit of Rs. 20, while each Tshirt
without collar yields Rs. 30.
Shirt with collar requires 15 minutes of cutting and 25
minutes of stitching. Shirt without collar requires 10
minutes of cutting and 20 minutes of stitching.
The full shift time is available for cutting in an 8 hour
shift, but only 6 hours are available for stitching.
Formulate the problem as an LP model to maximize the
profit.

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 Solution

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 Problem – 4 Bharathiyar University Page 125

An agricultural urea company must daily produce 500

kg of a mixture consisting of ingredients x1, x2 and
x3.
Ingredient x1 costs Rs. 30 per kg, x2 Rs. 50 per kg and
x3 Rs. 20 per kg.
Due to raw material constraint, not more than 100 kg
of x1, 70 kg of x2 and 45 kg of x3 must be used.
Determine how much of each ingredient should be
used if the company wants to minimize the cost.

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 Problem - 5
The ABC company has been a producer of picture tubes
for television sets and certain printed circuits for radios.
The company has just expanded into full scale production
and marketing of AM and AM-FM radios.
It has built a new plant that can operate 48 hours per
week.
Production of an AM radio in the new plant will require 2
hours and production of an AM-FM radio will require 3
hours.
Each AM radio will contribute Rs. 40 to profits while an
AM-FM radio will contribute Rs. 80 to profits.

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 The marketing department, after extensive research
has determined that a maximum of 15 AM radios and
10 AM-FM radios can be sold each week.
Formulate a linear programming model to determine
the optimum production mix of AM and FM radios
that will maximize the profits.

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 Solution
 Let be the number of units of AM radio and AM-FM
radio to be produced respectively.

Objective function is
Maximize (total profit) Z = 40+8

Subjected to the constraints

Plant: 2+3≤ 48
AM radio: ≤ 15
AM-FM radio: ≤ 10
and
≥ 0
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 Problem 6: Production Planning Problem(Hira and Gupta pp.51)
A company manufacturing air coolers has, at present,
firm orders for the next 6 months. The company can
schedule its production over the next 6 months to meet
orders on either regular or overtime basis. The order size
and production costs over the next six months are as
follows:
Month 1 2 3 4 5 6
Orders 640 660 700 750 550 650
Cost/ unit (Rs.) for 40 42 41 45 39 40
regular production
Cost/ unit (Rs.) for 52 50 53 50 45 43
overtime production

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 With 100 air coolers in stock at present, the company
wishes to have at least 150 air coolers in stock at the
end of 6 months.
The regular and overtime production in each month is
not to exceed 600 and 400 units respectively.
The inventory carrying cost for air coolers is Rs. 12
per unit per month.
Formulate the LP model to minimize the total cost.

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 Solution
 Key decision is to determine the number of units of air
coolers to be produced on regular as well as overtime
basis together with the number of units of ending
inventory in each of the six months.
Let be the number of units produced in month j (j=1,2,
…,6), on a regular or overtime basis (i=1,2).
Further let represent the number of units of ending
inventory in month j (j=1,2..6).

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  Objective is to minimize the total cost (of production
and inventory carrying).
i.e., minimize Z = (40 + 42 + 41 + 45 + 39 + 40) + (52
+ 50 + 53 + 50 + 45 + 43 ) + 12 ( + + + + + )
Constraints are
For first month, 100 + + -640 =
For second month, + + - 660 =
For third month, + + - 700 =

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  For fourth month, + + - 750 =
For fifth month, + + - 550 =
For sixth month, + + - 550 =
Also, the ending inventory constraint is
≥ 150
Further, since regular and overtime production each
month is not to exceed 600 and 400 units respectively,
, , , , , , each ≤ 600
, , , , , , each ≤ 400
Also ≥ 0 (I = 1,2; j = 1,2,3,4,5,6), ≥ 0

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 Aggregate Planning
Concerned with the overall operations of an
organisation over a specified time horizon
Determines the efficient way of responding (allocating
resources) to market conditions
Effectively allocate system capacity (plant, equipment,
and manpower) over designated period

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 Aggregate Planning Strategies
SUPPLY
Workforce
 hire / fire
 overtime / slack
 temporaries
 extra shifts
Inventory
Subcontracting
Product Mix
DEMAND
Pricing
Promotion
Customer Service
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Backorders
 The Aggregate Planning Problem
 The general form can be stated as follows:
Given a set of (usually monthly) forecasts of demand
for a single product, or some measure of output that is
common across several products, what should be
specified for each period in terms of
i) Size of work force
ii) Rate of production
iii) Quantity shipped
Minimise the expected total cost over a given planning
interval

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 The Aggregate Planning Problem…
The cost components included:
 Cost of regular payroll and overtime
 Regular time cost is the cost of producing a unit of output during
regular working hours, including direct and indirect labours,
materials and manufacturing expenses
 Overtime cost is the cost associated with using manpower beyond
normal working hours
 Production rate change costs
 The expenses incurred in altering the production rate substantially
from one period to the next including such items as cost of
layoffs, hiring, training, learning and so on
 Inventory associated costs
 The cost associated with carrying or not carrying inventory

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 The Aggregate Planning Problem…
 The definition of aggregate planning problem
considered three variables: , and .
They are measured in per period (month) t basis.
The resulting inventory at the end of the period t, is
=+

(The variable does not appear because any set level of , in

turn determine the possible range of values that can
assume)
The backlog of order at the end of the period t, is
=+
= actual (or forecasted) demand in period t

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 Linear Programming Methods for
Aggregate Planning
Aggregate Planning Problem – I
This method considers the following variables:
Regular time
Hiring
Firing
over time
inventory.
The aggregate sales and production are measured in
number of units.

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 Aggregate Planning Problem – II
This formulation is based on measuring aggregate
sales and inventories in terms of direct labour hours.
The variables considered are
regular time
over time
Hiring
Firing
Inventory
back order.

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 Readings
J K Sharma, Operations Research; Page 30-64, 35
Solved Problems, 38 Self Practice Problems

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 Thank You

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