LINEAR

PROGRAMMING
 Introduction
Linear programming is a widely used mathematical modelling technique to
determine the optimum allocation of scarce resources among competing demands.
Resources typically include raw materials, manpower, machinery, time, money and
space.
The technique is very powerful and found especially useful because of its
application to many different types of real business problems in areas like finance,
production, sales and distribution, personnel, marketing and many more areas of
management.
As its name implies, the linear programming model consists of linear objectives
and linear constraints, which means that the variables in a model have a proportionate
relationship. For example, an increase in manpower resource will result in an increase
in work output.
 ESSENTIALS OF LINEAR
PROGRAMMING MODEL
For a given problem situation, there are certain essential conditions that need to be
solved by using linear programming.
1. Limited resources : limited number of labour, material equipment and finance
2. Objective : refers to the aim to optimize (maximize the profits or minimize the
costs).
3. Linearity : increase in labour input will have a proportionate increase in output.
4. Homogeneity : the products, workers' efficiency, and machines are assumed to be
identical.
5. Divisibility : it is assumed that resources and products can be divided into
fractions. (in case the fractions are not possible, like production of one-third of a
computer, a modification of linear programming called integer programming can be
 FORMULATION OF LINEAR
PROGRAMMING
Formulation of linear programming is the representation of problem situation in a
mathematical form. It involves well defined decision variables, with an objective function
and set of constraints. Objective function:
The objective of the problem is identified and converted into a suitable objective
function. The objective function represents the aim or goal of the system (i.e., decision
variables) which has to be determined from the problem. Generally, the objective in most
cases will be either to maximize resources or profits or, to minimize the cost or time.
Constraints: When the availability of resources are in surplus, there will be no problem in
making decisions. But in real life, organizations normally have scarce resources within
which the job has to be performed in the most effective way. Therefore, problem
situations are within confined limits in which the optimal solution to the problem must be
found.
Non-negativity constraint
Negative values of physical quantities are impossible, like producing
negative number of chairs, tables, etc., so it is necessary to include the
element of non-negativity as a constraint
 GENERAL LINEAR PROGRAMMING MODEL

A general representation of LP model is given as follows: Maximize or Minimize, Z = p1 x1

+ p2 x2 ………………pn xn Subject to constraints,
w11 x1 + w12 x2 + ………………w1n xn ≤ or = or ≥ w1 ……………(i) w21 x1 + w22 x2
………………w2n xn ≤ or = or ≥ w2 …………… (ii)
...
....
....
wm1 x1 + wm2 x2 +………………wmn xn ≤ or = ≥ wm …………(iii)
Non-negativity constraint,
xi ≥ o (where i = 1,2,3 …..n)
 LINEAR PROGRAMMING

Definition: 

The Linear Programming method is a technique of selecting

the best alternative out of the available set of feasible
alternatives, for which the objective function and the
constraint function can be expressed as linear mathematical
functions.
 There are certain prerequisites for applying the
linear programming technique.

1.There should be an objective, clearly defined and measurable

in quantitative terms. Such as, maximization of sales,
minimization of cost of production, etc.

2.The activities included should be distinctively identifiable and

measurable in quantitative terms. Such as products included in
the problem of production planning.
3. The resources to be allocated for the attainment of the
objective must be distinctively identifiable and measurable
in quantitative terms. These resources must be in limited
supply.

4. The objective function and the constraint function must

be linear in nature.

5. The decision maker should have a series of feasible

alternative course of actions, determined through resource
constraints.
ASSUMPTIONS UNDERLYING LINEAR PROGRAMMING
1. 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 20x 1, 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.

2. 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.
3. 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.
4.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.

5.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.
Graphical Method
 Procedure:

 Step I: Convert each inequality as equation

 Step II: Plot each equation on the graph
 Step III: Shade the ‘Feasible Region’. Highlight the common Feasible
region. Feasible Region: Set of all possible solutions.
 Step IV: Compute the coordinates of the corner points (of the feasible
region). These corner points will represent the ‘Feasible Solution’.
 Feasible Solution: If it satisfies all the constraints and non negativity
restrictions.
 Procedure (Cont…)

 Step V: Substitute the coordinates of the corner points into the objective
function to see which gives the Optimal Value. That will be the ‘Optimal
Solution’.
 Optimal Solution: If it optimizes (maximizes or minimizes) the objective
function.
 Unbounded Solution: If the value of the objective function can be
increased or decreased indefinitely, Such solutions are called Unbounded
solution.
 Inconsistent Solution: It means the solution of problem does not exist.
This is possible when there is no common feasible region.
 Limitation of Graphical Method:

Graphical solution is limited to linear programming models

containing only two decision variables.
Example:

Max Z=3 P1 + 5 P2
s.t. P1< 4
P2 < 6
3 P1 + 2 P2 < 18
P1, P2 >0
SIMPLEX METHOD
 INTRODUCTION

In practice, most problems contain more than two variables and are
consequently too large to be tackled by conventional means. Therefore,
an algebraic technique is used to solve large problems using Simplex
Method. This method is carried out through iterative process
systematically step by step, and finally the maximum or minimum
values of the objective function are attained.
The simplex method solves the linear programming problem in iterations to
improve the value of the objective function. The simplex approach not
only yields the optimal solution but also other valuable information to
perform economic and 'what if' analysis.
 Simplex Method Steps:

1. Determine the objective function.

2. Write all necessary constraints.
3. Convert each constraint into an equation by adding slack
variables.