Ques 1: Why is the term Linear used in the name Linear Programming?

Ans: Linear Programming is a model consisting of linear relationship representing a firms objective and resource constraints used to determine a level of operational activity in order to achieve an objective subject to restrictions called constraints. More formally, linear programming is a technique for the optimization of a linear objective function, subject to linear equality and linear inequality constraints The LP model, as in any OR model, has three basic components. 1. Decision variables that we seek to determine. 2. Objective (goal) that we need to optimize (maximize or minimize). 3. Constraints that the solution must satisfy. An example would be taking the limitations of materials and labor, and then determining the "best" production levels for maximal profits under those conditions. Properties of the LP Model 1. Proportionality: This property requires the contribution of each decision variable in both the objective function and the constraints to be directly proportional to the value of the variable. 2. Additivity: This property requires the total contribution of all the variables in the objective function and in the constraints to be the direct sum of the individual contributions of each variable. 3. Certainty: All the objective and constraint coefficients of the LP model are deterministic. All the above points show that why the term linear is used in the name linear programming.

Ques 2: Describe the steps one should follow in formulating a linear programming model? Ans: Steps for Developing an LP Model 1. What decisions need to be made? Define each decision variable. 2. What is the goal of the problem? Write down the objective function as a function of the decision variables. 3. What resources are in short supply and/or what requirements must be met?

Formulate the constraints as functions of the decision variables. Example: A lumber mill can produce pallets of high quality lumber. Its lumber capacity is limited by its kiln size. It can dry 200 mbf per day. Similarly, it can produce a maximum of 600 pallets per day. In addition, it can only process 400 logs per day through its main saw. Quality lumber sells for $490 per mbf, and pallets sell for $9 each. It takes 1.4 logs on average to make one mbf of lumber, and four pallets can be made from one log. Of course, different grades of logs are used in making each product. Grade 1 lumber logs cost $200 per log, and pallet-grade logs cost only $4 per log. Processing costs per mbf of quality lumber are $200 per mbf, and processing costs per pallet are only $5. How many pallets and how many mbf of lumber should the mill produce? Step 1 Identify the decision variables The problem here is to determine the number of pallets and the number of mbf of lumber to produce each day. Thus, the decision variables will be: P = the number of pallets to produce each day, and L = the number of mbf of lumber to produce each day. Step 2 Formulate the objective function Objective function is to maximize daily net revenue. objective function must have the
following general form:

Max Z = cP P + cL L Step 3 Identify and formulate the constraints. Limits on what you can do will typically be represented by less-than-or-equal constraints. Greater-than-or-equal constraints will typically be needed when there is a minimum level of something that is required. The current example, has three resource constraints related to equipment limitations. The lumber mill has three resource constraints which are determined by equipment limitations -- the kiln capacity constraint, the pallet capacity constraint, and the main saw constraint. In addition, all linear programming formulations have non-negativity constraints on the variables. 1L 200

600 400 0

P + 1.4 L P 0 and L

Ques 3: Summarize the steps for solving a linear programming model graphically? Ans: Steps in solving an LP problem graphically are: Step I Defining the problem. Formulate the problem mathematically. Express it in terms of several mathematical constraints & an objective function. The objective function relates to the optimization aspect is, maximisation or minimisation Criterion. Step II Plot the constraints Graphically. Each inequality in the constraint equation has to be treated as an equation. An arbitrary value is assigned to one variable & the value of the other variable is obtained by solving the equation. In the similar manner, a different arbitrary value is again assigned to the variable & the corresponding value of other variable is easily obtained. These 2 sets of values are now plotted on a graph and connected by a straight line. The same procedure has to be repeated for all the constraints. Hence, the total straight lines would be equal to the total no of equations, each straight line representing one constraint equation. Step III Locate the solution space. Solution space or the feasible region is the graphical area which satisfies all the constraints at the same time. Such a solution point (x, y) always occurs at the comer. points of the feasible Region the feasible region is determined as follows: a. For greater than & greater than or equal to constraints (i.e.;), the feasible region or the solution space is the area that lies above the constraint lines. b. For Less Then & Less than or equal to constraint (ie; ). The feasible region or the solution space is the area that lies below the constraint lines. Step IV Selecting the graphic technique. Select the appropriate graphic technique to be used for generating the solution. Two techniques viz; Corner Point Method and Iso-profit (or Isocost) method may be used.

Ques 4: In graphical analysis of a linear programming model, what occurs when the slope of the objective function is same as the slope of one of the constraint equation? Ans: When the objective function is parallel to a binding constraint (i.e. constraint that is satisfied as an equation by the optimal solution), the objective function will assume the same optimal value at more than one solution point. For this reason there are Multiple Optimal solution which exists. Ques 5: What are the benefits and limitations of the graphical method for solving Linear Programming problems? Ans: Benefits: 1. It helps in attaining the optimum use of productive factors. 2. It improves the quality of decisions. The individual who makes use of linear programming methods becomes more objective than subjective. 3. It also helps in providing better tools for adjustment to meet changing conditions. 4. It highlights the bottlenecks in the production processes. 5. Most business problems involve constraints like raw materials availability, market demand etc. which must be taken into consideration. Just we can produce so many units of product does not mean that they can be sold. Linear programming can handle such situation also. Limitations: 1. In some problems objective functions and constraints are not linear. LPP under non linear condition usually results in an incorrect soIution 2. LPP deals with problems that have a single objective. Real life problem may involve multiple objectives. 3. Parameters appearing in the model are assumed to be constant. But in real life situation they are neither constant nor deterministic. 4. It is applicable to only static situations since it does not take into account the effect of time. 5. LPP can not be used efficiently for large scale problems, the computational difficulties are enormous, even when the large digital computer is available. 6. LPP may get fractional valued answers for the decision variables, whereas it may happen that only integer values of the variable are logical.

Ques 6: What constitutes the feasible solution area on the graph of linear programming model? Ans: A feasible region is, in a constrained optimization problem, the set of solutions satisfying all equalities and/or inequalities. On the other hand a linear programming is a constrained optimization problem in which both the objective function and the constraints are linear, therefore a feasible region on a linear programming problem is the set of solutions of the a linear problem. Feasible Regions can be bounded or unbounded.

Ques 7: How is the optimal solution point identified on the graph of a linear programming model? Ans: The theory of linear optimisation says that the maximum (and the minimum) value of the objective function will be found on the boundary of the feasible region. More

specifically, it will occur at one of the vertices of the polygon formed by the feasible region (and possibly on one of the sides, if the max occurs at two adjacent vertices). Determine first the points of intersection of the constraints (basically, the vertices of the polygon formed), by solving the corresponding equations. Then we will have a set of points (x,y) representing the boundary of the feasible region. Then, just plug each of these points into the objective function, and see which one gives the maximum value. If two vertices give the same value, then every point on the side between them will also give that value. Ques 8: Why does the co-efficient of a slack variable equal to zero in the objective function? Ans: Slack Variable The positive variable, which is added to the left hand side of the constraint to convert it into an equality equation, is called the slack variable. It is used to represent unused or idle resources and since unused capacity makes no contribution to profit, so slack variables have coefficient of zero in the objective function. Some linear programs may have one or more constraints that do not affect the feasible region i.e the feasible region remains the same whether or not the constraint is included in the problem. So it also doesnt affect the optimal solution and is also called as redundant constraint.