Linear programming

A large number of decision problems faced by a business manager

involve allocation of limited resources to different activities.
Linear programming has been successfully applied to a variety of
problems of management, such as production, advertising,
transportation, refinery operation, investment analysis, etc. Over
the years, linear programming has been found useful not only in
business and industry but also in non-profit organizations such as
government, hospitals, libraries, education, etc. Actually, linear
programming improves the quality of decisions by amplifying the
analytic abilities of a decision maker. Please note that the result of
the mathematical models that you will study cannot substitute for
the decision maker's experience and intuition, but they provide the
comprehensive data needed to apply his knowledge effectively
What is the meaning of Linear Programming?
The word 'linear' means that the relationships
are represented by straight lines, i.e., the
relationships are of the form k = p + qx. In
other words, it is used to describe the
relationships among two or more variables,
which are directly proportional. The word
'programming' is concerned with optimal
allocation of limited resources.

Some Important terms:-
Solution of LPP:- A set of values of the variables x
1
, x
2
,
..x
n
satisfying the constraints of a L.P.P. is called a
solution of a L.P.P.
Linear Function of L.P.P.
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
The linear programming problem must have a well defined
objective function to optimize i.e. it is a linear function of
decision variables expressing the objective of the decision-
maker which is to be optimize. For example maximization
of profit, minimization of cost.

Constraints
There must be limitations on resources which are to
be allocated among various competing activities or
These are linear equations arising out of practical
limitations. The mathematical forms of the
constraints are:
f(x) b or f(x) b or f(x) = b .
Feasible Solution of L.P.P.
Any non-negative solution which satisfies all the
constraints is known as a feasible solution.
Optimal Solution
The solution where the objective function is
maximized or minimized is known as optimal
solution.

Linear programming deals with the optimization
(maximization or minimization) of a function of variables
known as objective functions. It is subject to a set of linear
equalities and or/ inequalities known as constraints.
Linear programming is a technique which involves the
allocation of limited resources in an optimal manner.

LP
Formulation
Graphical
Method
Max Min
Simplex
Method
Egg contains 6 units of vitamin A per gram and
7 units of vitamin B per gram and cost 12
paise per gram .Milk contains 8 units of
vitamin A per gram and 12 units of vitamin B
per gram and costs 20 paise per gram.The
daily min requirement of vitamin A and
vitamin B are 100 units and 120 units
respectively .Find the optimal product mix.
Maximization Case:-
Example 1:-
A manufacturing company in producing two products A
and B. each unit of product A requires 2 kg of raw
material and 4 labour hours for processing. Whereas
each unit of product B requires 3 kg of raw material
and 3 hours of labour of the same type. Every week,
the firm has an availability of 60 kg of raw material and
96 labour hours. One unit of product A sold yields Rs.
40 and one unit of product B sold gives Rs. 35 as profit.
Formulate this problem as a linear programming
problem to determine as to how many units of each of
the products should be produced per week so that the
firm can earn the maximum constraint so that all that
is produced can be sold.
Solution: In this problem, our goal is the maximization of profit, which
would be obtained by producing (and selling) products A and B. if we let
x
1
and x
2
represent the number of units produced. Per week products A
and B respectively.
Total profit X = 40x
1
+ 35x
2

..Objective Function
Or
Max Z = 40x
1
+ 35x
2

Notice that function is linear one.
The constraints:-
Another requirements of linear programming is that the resources must
be limited supply. The limitation itself is known as a constraints.
Each unit of Product A requires 2 kg of raw material while each unit of
Product B needs 3 kg.
The total consumption would be 2x
1
+ 3x
2

which cannot exceed the total availability of 60 kg every week.
2x
1
+ 3x
2
< 60
Similarly it is given that a unit of A requires 4 labour hours for its
production and one unit of B requires 3 hours with an availability 96
hours a week, we have 4x
1
+ 2x
2
< 96

Non Negativity Condition: -
X
1
and x
2
being the number of units produced,
can not have negative values.
X
1
> 0 , x
2
> 0
Maximize
CZ = 40x
1
+ 35x
2

Sub to constraint
2x
1
+ 3x
2
< 60
Raw material constraints
4x
1
+ 3x
2
< 96
Labour hours constraints
x
1,
x
2
> 0 Non
Negative constraints restriction

The Minimization Case:
Example 2:-
In an agricultural Research Institute suggested to a farmer
to spread out at least 4800 kg of a special phosphate
fertilizer and not less than 7200 kg of a special nitrogen
fertilizer to raise productivity of crops in his fields. There
are two sources for obtaining these mixtures A and B. Both
of these are available in bags weighing 100 kg each and
they cost Rs 40 and Rs 24 respectively. Mixture A contains
phosphate and nitrogen equivalent of 20 kg and 80 kg
respectively while mixture B contains these ingredients
equivalent of 50 kg each.
Write this as a linear programming problem and determine
how many bags of each type the farmer should buy in order
to obtain the required fertilizer at minimum cost.

Solution:
Let x
1
and x
2
are number of bags of mixture A and B respectively.
Objective Function
Minimize Z = 40x
1
+ 24x
2
cost
The constraints
A B Total
Phosphate 20 50 4800
Nitrogen 80 50 7200
Constraints
Min Z = 40x
1
+ 24x
2
Cost
20x
1
+ 50x
2
> 4800 Phosphate
requirement
80x
1
+ 50x
2
> 7200 Nitrogen
requirement
x
1,
x
2
> 0 Non Negative constraints
restriction

Formulation of L.P.P.
In general terms a linear programming problem
can be written as
Consider the following
Optimize (maximize or minimize)
z = c
1
x
1
+ c
2
x
2
+ c
3
x
3
+ .........+ c
n
x
n

subject to Constraints :-
a
11
x
1
+ a
12
x
2
+ a
13
x
3
+ .........+ a
1n
x
n
( = ) b
1

a
21
x
1
+ a
22
x
2
+ a
23
x
3
+ .........+ a
2n
x
n
( = ) b
2

...............................................................................
....
a
m1
x
1
+ a
m2
x
2
+ a
m3
x
3
+ .........+ a
mn
x
n
( = )b
m

x
1
, x
2
,....., x
n
0

Maximization Problem
Maximize Z = C X
Subject to ax < b
X > 0

Minimization Problem
Minimization Z = C X
Subject to ax > b
X > 0

Application of Linear Programming in different areas:-

Application in Petroleum Industry:- This industrial area has
furnished a great many important and interesting linear-
programming applications. The one of them is the problem
of blending gasonlines into required products for maximum
profits. Other may be the problems of optimum crude
allocation to several refineries, and the optimum inventory
and production rate for a seasonal product.
Application in Commercial Airlines:- The applications is
related to the problems of routing air craft and of airline
management. One L.P. problem may be to determine the
pattern and timing of flights.
Application in Communication Industry: This application is
another area in which problems involving facilities for
transmission, switching, relaying etc. are solved by linear
programming.
Application in Paper Industry:- The application of
linear programming in the pulp and paper
industry has been in the transportation problem.
The problem is how to assign the various orders
to the mills so as to reduce the total company
freight bill to a minimum.
Application in Farm Management:- In this field
the limited resources such as labour, acreage,
water supply, working capital etc., are allocated in
such a way that maximize net revenue.
Application in Chemical Industry:- In chemical
industry, the application is mostly related to
production and inventory control. Our purpose is
to find the optimal scheduling of different
machines of various capacities, power limitations
and other restrictions.

Limitations of Linear Programming:-
Linear programming is applicable only to problems where
the constraints and objective function are linear i.e. where
they can be expressed as equations which represent straight
lines. In real life situations, when constraints or objective
functions are not linear this technique can not be used.
Factors such as uncertainty, weather conditions etc are not
taken into consideration.
There may not be an integer as the solution e.g. the number
of men required may be a fraction and the nearest integer
may not be the optimal solution.
i.e. linear programming technique may give practical valued
answer which is not desirable.
One single objective is dealt with while in real life situations,
problems come with multi-objectives.
Parameters are assumed to be constants but in reality.


Example 1:
A firm makes two types of locks A and B. the contributions for
each product as calculated by the accounting department are
Rs. 30 per lock A and Rs. 20 per lock B. both locks are
processed on three machines M
1
, M
2
, and M
3
. The time
required by each lock and total time available per week on
each machine are as follows:
How should the manufacturer schedule his production in order
to maximize contribution?
Solution: let x = number of locks A to be produced
y = number of locks B to be produced
here the object is to maximize the profit, thus objective
function is given by
Maximize z = 30x + 20y
Subject to constraints:
3x +3y < 26 (Total tome of machine M
1
)
5x + 2y < 30 (Total time of machine M
2
)
2x + 6y < 40 (Total time of machine M
3
)

A paper mill produces two grades of paper
namely X and Y .Because of raw material
restrictions , It cannot produce more than 400
tons of grade X and 300 tons of grade Y in a
week.There are 160 production hours in a
week .It requires 0.2 and 0.4 hours to produce
a ton of products X and Y respectively with
corresponding profits of 200 and rs 500 per
ton.Formulate the above as a LPP to maximize
profit and find the optimum product mix.
An electric appliance company produces two products
refrigerators and ranges. Production takes place in two
separate departments I and II .Refrigerators are
produced in department I and ranges in department II
.the companys two products are sold on a weekly basis
. The weekly production can not exceed 25
refrigerators and 35 ranges.the company regularly
employ a total of 60 workers in two departmenta A
refrigerator requires 2 man-weeks labour while a range
requires 1 man week labour .a refrigerator contributes
a profit of Rs 60 and a range contributes a profit of Rs
40 how many units of refrigerators and ranges shouls
the company produce to realize the maximum profit ?
Formulate the above as a LPP .

Example 3:A manufacturer produces two type of
models- P
1
and P
2
. Each model of the type P
1
requires
4 hrs of grinding and 2 hrs of polishing where as each
model of the type P
2
requires 2 hrs of grinding and 5 hrs
of polishing . The manufacturers have 2 grinders and 3
polishers. Each grinder works 40 hrs a week and each
polisher works for 60 hours a week . Profit on P
1
model
is Rs 3.00 and on model P
2
is Rs 4.00 Whatever is
produced in a week is sold in a market. How should the
manufacturer allocate his production capacity to the
two types of models,so that he may make the maximum
profit in a week ?