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Course Instructor: Dr. Swati Singh
                 Course: BBA III
             Amity Business School
Linear Programming Problem
 LPP is a mathematical modeling technique, used to
 determine a level of operational activity in order to
 achieve an objective, subject to restrictions.

 It is a mathematical modeling technique, useful for
  economic allocation of ‘scarce’ or ‘limited’ resources
  like labor, material, machine, time, space, energy etc. to
  several competing activities like product, services, jobs
  etc. on the basis of a given criterion of optimality.
LPP Consists of:
 Decision Variables: Decision to produce no. of units of
  different items.
 Objective Function: Linear mathematical relationship
  used to describe objective of an operation in terms of
  decision variables.
 Constraints: Restrictions placed on decision situation
  by operating environment.
 Feasible Solution: Any solution of general LPP which
  also satisfies non negative restrictions.
 Optimum Solution : The feasible solution which
  optimizes the objective function.
General Structure of LPP
 Maximize (or Minimize) Z = c1x1 + c2x2 + ---- + cnxn
 Subject to,
     a11x1 + a12x2 + -------- + a1nxn   (≤, =, ≥ ) b1

     a11x1 + a12x2 + -------- + a1nxn   (≤, =, ≥ ) b2




     an1x1 + an2x2 + -------- + annxn     (≤, =, ≥ ) bn


     where, x1 ≥ 0, x2 ≥ 0 ---- xn ≥ 0
Question 1.
A dealer wishes to purchase a no. of fans and Air
Conditioners. He has only Rs. 5760 to invest & space for
at most 20 items.
      A fan costs him Rs. 360 & AC Rs. 240. His
expectation is that he can sell a fan at a profit of Rs. 22 &
AC at profit of Rs. 18.
      Assuming he can sell all items he can buy, how
should he invest money in order to maximize his profits?
Solution 1. purchases x1 Fans & x2 ACs.
 Let us suppose, dealer
        Since no. of fans & ACs can’t be negative
        So, x1 ≥ 0, x2 ≥ 0
 Since cost of fan = Rs. 360 & AC = Rs. 240
        & Total money to be invested = Rs. 5760
        Thus, 360 x1 + 240 x2 ≤ 5760
 Also, space is for at most 20 items
        So, x1 + x2 ≤ 20
 Again, if dealer can sell all his items
        Profit is Z = 22 x1 + 18 x2, which is to be maximized
Thus, the required LPP is:
        Maximize Z = 22 x1 + 18 x2
Subject to Constraints,
       360 x1 + 240 x2 ≤ 5760
       x1 + x2 ≤ 20
      & x1 ≥ 0, x2 ≥ 0
Question 2.
       A company produces two articles R & S. Processing
is done through assembly & finishing departments. The
potential capacity of the assembly department is 60 hrs. a
week & that of finishing department is 48 hrs. a week.
       Production of one unit of R requires 4 hrs. in
assembly & 2hrs. in finishing.
       Each of the unit S requires 2 hrs. in assembly & 4hrs.
in finishing.
       If profit is Rs. 8 for each unit of R & Rs. 6 for each
unit of S. Find out the no. of units of R & S to be produced
each week to give maximum profit.
Solution 2.
       Products       Time Required for Producing One         Total hrs.
                                   Unit                       available

                           x1                x2
  Assembly Dept.
                           4                 2                   60
  Finishing Dept.
                           2                 4                   48
        Profit
                          Rs. 8             Rs. 6

      Objective Function: Max. Z = 8x1 + 6x2
Subject to Constraints,
       4 x1 + 2 x2 ≤ 60 (Time available in assembly dept.)
       2 x1 + 4 x2 ≤ 48 (Time available in finishing dept.)
where, x1 ≥ 0, x2 ≥ 0

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7b3ba module ii lpp_part i- formulation (a)

  • 1. Course Instructor: Dr. Swati Singh Course: BBA III Amity Business School
  • 2. Linear Programming Problem  LPP is a mathematical modeling technique, used to determine a level of operational activity in order to achieve an objective, subject to restrictions.  It is a mathematical modeling technique, useful for economic allocation of ‘scarce’ or ‘limited’ resources like labor, material, machine, time, space, energy etc. to several competing activities like product, services, jobs etc. on the basis of a given criterion of optimality.
  • 3. LPP Consists of:  Decision Variables: Decision to produce no. of units of different items.  Objective Function: Linear mathematical relationship used to describe objective of an operation in terms of decision variables.  Constraints: Restrictions placed on decision situation by operating environment.  Feasible Solution: Any solution of general LPP which also satisfies non negative restrictions.  Optimum Solution : The feasible solution which optimizes the objective function.
  • 4. General Structure of LPP  Maximize (or Minimize) Z = c1x1 + c2x2 + ---- + cnxn  Subject to, a11x1 + a12x2 + -------- + a1nxn (≤, =, ≥ ) b1 a11x1 + a12x2 + -------- + a1nxn (≤, =, ≥ ) b2 an1x1 + an2x2 + -------- + annxn (≤, =, ≥ ) bn where, x1 ≥ 0, x2 ≥ 0 ---- xn ≥ 0
  • 5.
  • 6. Question 1. A dealer wishes to purchase a no. of fans and Air Conditioners. He has only Rs. 5760 to invest & space for at most 20 items. A fan costs him Rs. 360 & AC Rs. 240. His expectation is that he can sell a fan at a profit of Rs. 22 & AC at profit of Rs. 18. Assuming he can sell all items he can buy, how should he invest money in order to maximize his profits?
  • 7. Solution 1. purchases x1 Fans & x2 ACs.  Let us suppose, dealer Since no. of fans & ACs can’t be negative So, x1 ≥ 0, x2 ≥ 0  Since cost of fan = Rs. 360 & AC = Rs. 240 & Total money to be invested = Rs. 5760 Thus, 360 x1 + 240 x2 ≤ 5760  Also, space is for at most 20 items So, x1 + x2 ≤ 20  Again, if dealer can sell all his items Profit is Z = 22 x1 + 18 x2, which is to be maximized Thus, the required LPP is: Maximize Z = 22 x1 + 18 x2 Subject to Constraints, 360 x1 + 240 x2 ≤ 5760 x1 + x2 ≤ 20 & x1 ≥ 0, x2 ≥ 0
  • 8. Question 2. A company produces two articles R & S. Processing is done through assembly & finishing departments. The potential capacity of the assembly department is 60 hrs. a week & that of finishing department is 48 hrs. a week. Production of one unit of R requires 4 hrs. in assembly & 2hrs. in finishing. Each of the unit S requires 2 hrs. in assembly & 4hrs. in finishing. If profit is Rs. 8 for each unit of R & Rs. 6 for each unit of S. Find out the no. of units of R & S to be produced each week to give maximum profit.
  • 9. Solution 2. Products Time Required for Producing One Total hrs. Unit available x1 x2 Assembly Dept. 4 2 60 Finishing Dept. 2 4 48 Profit Rs. 8 Rs. 6 Objective Function: Max. Z = 8x1 + 6x2 Subject to Constraints, 4 x1 + 2 x2 ≤ 60 (Time available in assembly dept.) 2 x1 + 4 x2 ≤ 48 (Time available in finishing dept.) where, x1 ≥ 0, x2 ≥ 0