Linear Programming

1.1 What is Linear Programming

Linear programming is used as a mathematical method for determining and planning

for the best outcomes and was developed during World War II by Leonid Kantorovich
in 1937. It was a method used to plan expenditures and returns in a way that reduced
costs for the military and possibly caused the opposite for the enemy. Linear
programming is part of an important area of mathematics called "optimization
techniques" as it is literally used to find the most optimized solution to a given
problem. A very basic example of linear optimization usage is in logistics or the
"method of moving things around efficiently." For example, suppose there are 1000
boxes of the same size of 1 cubic meter each; 3 trucks that are able to carry 100
boxes, 70 boxes and 40 boxes respectively; several possible routes; and 48 hours to
deliver all the boxes. Linear programming provides the mathematical equations to
determine the optimal truck loading and route to be taken in order to meet the
requirement of getting all boxes from point A to B with the least amount of going
back and forth and, of course, the lowest cost at the fastest time possible.

1.2 The Role of Mathematical Models in Operations Decision

Making

Advances in business and engineering research and computer technology have

expanded managers’ use of mathematical models. A model represents the essential
features of an object, system, or problem without unimportant details. The
models in this supplement have the important aspects represented in
 mathematical form using variables, parameters, and functions. Analyzing and
manipulating the model gives insight into how the real system behaves under various
conditions. From this we determine the best system design or action to take.
Mathematical models are cheaper, faster, and safer than constructing and
manipulating real systems. Suppose we want to find the mixture of recycled scrap
paper to use when producing a type of paperboard that minimizes cost. A
company could try several different combinations, check the quality, and
calculate the cost. Since all possible combinations are not tried, the optimum
combination will probably not be found. Alternatively, using a mathematical
model, we evaluate all possible combinations to find the one that satisfies
product specifications at the lowest price. Mathematical modeling is quicker and
less expensive than using the trial-and-error approach. Facility location, vehicle
routing and scheduling, personnel, machine and job scheduling, product mixes,
and inventory management problems are formulated as constrained optimization
models. Constrained optimization models are mathematical models that find the best
solution with respect to some evaluation criterion from a set of alternative solutions.
These solutions are defined by a set of mathematical constraints—mathematical
inequalities or equalities.

1.3 Constrained Optimization Models

Constrained optimization models have three major components: decision

variables, objective function, and constraints.

1. Decision variables are physical quantities controlled by the decision maker

and represented by mathematical symbols. For example, the decision variablex j can
represent the number of pounds of product j that a company will produce during some
month. Decision variables take on any of a set of possible values.
2. Objective function defines the criterion for evaluating the solution. It is a
 mathematical function of the decision variables that converts a solution into a
numerical evaluation of that solution. For example, the objective function may
measure the profit or cost that occurs as a function of the amounts of various
products produced. The objective function also specifies a direction of
optimization, either to maximize or minimize. An optimal solution for the model is
the best solution as measured by that criterion a.
3. Constraints are a set of functional equalities or inequalities that represent
physical, economic, technological, legal, ethical, or other restrictions on what
numerical values can be assigned to the decision variables. For example, constraints
might ensure that no more input is used than is available. Constraints can be
definitional, defining the number of employees at the start of a period t1 as equal to
the number of employees at the start of period t, plus those added during period t
minus those leaving the organization during period t. In constrained optimization
models we find values for the decision variables that maximize or minimize the
objective function and satisfy all constraints.

1.4 Integer Linear Programming

The linear-programming models that have been discussed thus far all have been
continuous , in the sense that decision variables are allowed to be fractional. Often
this is a realistic assumption. For instance, we might easily produce 102 gallons of a
divisible good such as wine. It also might be reasonable to accept a solution giving an
hourly production of automobiles at 58.5 if the model were based upon average
hourly production, and the production had the interpretation of production rates. At
other times, however, fractional solutions are not realistic. There can only be an
integer solution to those problems. These problems are called (linear) integer-
programming problem . It is said to be a Mixed integer program when some, but not
all, variables are restricted to be integer, and is called a pure integer program when all
decision variables must be integers. As we saw in the preceding chapter, if the
 constraints are of a network nature, then an integer solution can be obtained by
ignoring the integrality restrictions and solving the resulting linear program. In
general, though, variables will be fractional in the linear programming solution, and
further measures must be taken to determine the integer-programming solution. The
purpose of this chapter is twofold. First, we will discuss integer-programming
formulations. This should provide insight into the scope of integer-programming
applications and give some indication of why many practitioners feel that the integer-
programming model is one of the most important models in management science.
Second, we consider basic approaches that have been developed for solving integer
and mixed-integer programming problems.

About Brown World

The restaurant was founded by Sardar Manohar Singh Chugh, being the leading
producers of cakes & pastries in the region since the year of 1947, Being operated by
professionally qualified persons we are committed to deliver the best products with a mix
of creativity & tradition in preparation and presentation. Brown World is a bakery and
cafe in Paonta sahib, Located at Badripur NH-7. Today it is headed by Mr.Tarun Singh
Chugh and is owned by his family who are locally situated in Paonta sahib. They are the
largest confectionary in the city and have one more branch with different name i.e. Deep
Bakers, situated in Paonta Sahib market near the gurudwara. Their main products are
cakes and pastries but they also sell a plethora of other goods such as Pizza, Sandwiches,
Burgers, Shakes, Desserts, etc. They are a leading brand in the local market of Paonta
Sahib catering to the demands of 25,172 urban population of the city.

Interview with Mr. Tarun Singh Chugh

Q1. In which kind of products would like us to do our project?

A1. I am interested in basically these four products, Cheese Corn Pizza, Onion Capsicum
Pizza, Tandoori Chicken Pizza and Big Veggie Burger.

Q2. What are the limitations in your production cycle?

A2. Each and every product will be made in a batch of at least 5 units. Shelf life of every
product is just 2 days.