The document provides information about linear programming, including:
- Linear programming is a technique to optimize allocation of scarce resources among competing demands. It involves determining variables, constraints, and an objective function.
- The linear programming model consists of linear objectives and constraints, where variables have a proportionate relationship (e.g. increasing labor increases output proportionately).
- Essential elements of a linear programming model include limited resources, an objective to maximize or minimize, linear relationships between variables, identical resources/products, and divisible resources.
- Linear programming problems can be solved graphically by plotting constraints and objective function to find the optimal point, or algebraically using the simplex method through iterative tables.
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Internal and external institutions and influences of corporateGrace Fatima Abelida
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A problem is provided which is solved by using graphical and analytical method of linear programming method and then it is solved by using geometrical concept and algebraic concept of simplex method.
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My name is Niraj Thapa. I have compiled Assignment Chapter including SM, PM & Exam Questions of AMA.
You feedback on this will be valuable inputs for me to proceed further.
A problem is provided which is solved by using graphical and analytical method of linear programming method and then it is solved by using geometrical concept and algebraic concept of simplex method.
Assignment Chapter - Q & A Compilation by Niraj ThapaCA Niraj Thapa
My name is Niraj Thapa. I have compiled Assignment Chapter including SM, PM & Exam Questions of AMA.
You feedback on this will be valuable inputs for me to proceed further.
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2. Introduction
Linear programming is a widely used mathematical modeling 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.
3. 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 used).
4. PROPERTIES OF LINEAR PROGRAMMING MODEL
The following properties form the linear programming
model:
1. Relationship among decision variables must be
linear in nature.
2. A model must have an objective function.
3. Resource constraints are essential.
4. A model must have a non-negativity constraint.
5. 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
6. 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)
7. Example
A company manufactures two types of boxes, corrugated and ordinary
cartons.
The boxes undergo two major processes: cutting and pinning operations.
The profits per unit are Rs. 6 and Rs. 4 respectively.
Each corrugated box requires 2 minutes for cutting and 3 minutes for
pinning operation, whereas each carton box requires 2 minutes for
cutting and 1 minute for pinning.
The available operating time is 120 minutes and 60 minutes for cutting
and pinning machines.
The manager has to determine the optimum quantities to be
manufacture the two boxes to maximize the profits.
8. Solution
Decision variables completely describe the decisions to be made (in this case, by
Manager). Manager must decide how many corrugated and ordinary cartons should be
manufactured each week. With this in mind, he has to define:
xl be the number of corrugated boxes to be manufactured.
x2 be the number of carton boxes to be manufactured
Objective function is the function of the decision variables that the decision maker
wants to maximize (revenue or profit) or minimize (costs). Manager can concentrate on
maximizing the total weekly profit (z).
Here profit equals to (weekly revenues) – (raw material purchase cost) – (other variable costs).
Hence Manager’s objective function is:
Maximize z = 6X2 + 4x2
Constraints show the restrictions on the values of the decision variables. Without
constraints manager could make a large profit by choosing decision variables to be very
large. Here there are three constraints:
Available machine-hours for each machine
Time consumed by each product
Sign restrictions are added if the decision variables can only assume nonnegative values
(Manager can not use negative negative number machine and time never negative number )
9. All these characteristics explored above give the following Linear
Programming (LP) problem
max z = 6x1 + 4x2 (The Objective function)
s.t. 2x1 + 3x2 ≤ 120 (cutting timeconstraint)
2x1 + x2 ≤ 60 (pinning constraint)
x1, x2 ≥ 0 (Sign restrictions)
A value of (x1,x2) is in the feasible region if it satisfies all
the constraints and sign restrictions.
This type of linear programming can be solve by two methods
1) Graphical method
2) Simplex algorithm method
10. Graphic Method
Step 1: Convert the inequality constraint as equations and find co-ordinates of the line.
Step 2: Plot the lines on the graph.
(Note: If the constraint is ≥ type, then the solution zone lies away from the centre.
If the constraint is ≤ type, then solution zone is towards the centre.)
Step 3: Obtain the feasible zone.
Step 4: Find the co-ordinates of the objectives function (profit line) and plot it on the graph representing it
with a dotted line.
Step 5: Locate the solution point.
(Note: If the given problem is maximization, zmax then locate the solution point at the far
most point of the feasible zone from the origin and if minimization, Zmin then locate the solution at
the shortest point of the solution zone from the origin).
Step 6: Solution type
i. If the solution point is a single point on the line, take the corresponding values of x1 and x2.
ii. If the solution point lies at the intersection of two equations, then solve for x1 and x2 using the
two equations.
iii. If the solution appears as a small line, then a multiple solution exists.
iv. If the solution has no confined boundary, the solution is said to be an unbound solution.
11. CONT…
The inequality constraint of the first line is
(less than or equal to) ≤ type which means the
feasible solution zone lies towards the origin.
(Note: If the constraint type is ≥ then the
solution zone area lies away from the origin in
the opposite direction). Now the second
constraints line is drawn.
When the second constraint is drawn, you may notice that a portion of
feasible area is cut. This indicates that while considering both the
constraints, the feasible region gets reduced further. Now any point in
the shaded portion will satisfy the constraint equations.
the objective is to maximize the profit. The point that lies at the
furthermost point of the feasible area will give the maximum
profit. To locate the point, we need to plot the objective function
(profit) line.
12. Cont..
Objective function line (Profit Line)
Equate the objective function for any specific profit value Z,
Consider a Z-value of 60, i.e.,
6x1 + 4x2 = 60
Substituting x1 = 0, we get x2 = 15 and
if x2 = 0, then x1 = 10
Therefore, the co-ordinates for the objective function line are (0,15),
(10,0) as indicated objective function line. The objective function line
contains all possible combinations of values of xl and x2.
Therefore, we conclude that to maximize profit, 15 numbers of corrugated
boxes and 30 numbers of carton boxes should be produced to get a
maximum profit. Substituting
x1 = 15 and x2= 30 in objective function, we get
Zmax = 6x1 + 4x2
= 6(15) + 4(30)
Maximum profit : Rs. 210.00
13. Graphic Method on Tora
Steps for shoving linear programming by graphic
method using Tora shoftware
Step 1 Start Tora select linear programming
14. Simplex Method
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.
15. ADDITIONAL VARIABLES USED IN SOLVING LPP
Three types of additional variables are used in simplex method such
as,
(a) Slack variables (S1, S2, S3..…Sn): Slack variables refer to the amount
of unused resources like raw materials, labour and money.
(b) Surplus variables (-S1, -S2, -S3..…-Sn): Surplus variable is the
amount of resources by which the left hand side of the equation
exceeds the minimum limit.
(c) Artificial Variables (a1, a2, a3.. …an): Artificial variables are
temporary slack variables which are used for purposes of
calculation, and are removed later.
The above variables are used to convert the inequalities into equality
equations, as given in the Given Table below.
17. Procedure of simplex Method
Step 1: Formulate the LP problem.
Step 2: Introduce slack /auxiliary variables.
if constraint type is ≤ introduce + S
if constraint type is ≥introduce – S + a and
if constraint type is = introduce a
Step 3: Find the initial basic solution.
Step 4: Establish a simplex table and enter all variable coefficients. If the objective
function is maximization, enter the opposite sign co-efficient and if
minimization, enter without changing the sign.
Step 5: Take the most negative coefficient in the objective function, Zj to
identify the key column (the corresponding variable is the entering
variable of the next iteration table).
Step 6: Find the ratio between the solution value and the coefficient of the key
column. Enter the values in the minimum ratio column.
18. Cont….
Step 7: Take the minimum positive value available in the minimum ratio
column to identify the key row. (The corresponding variable is the
leaving variable of the table).
Step 8: The intersection element of the key column and key row is the pivotal
element.
Step 9: Construct the next iteration table by eliminating the leavin variable
and introducing the entering variable.
Step 10: Convert the pivotal element as 1 in the next iteration table and
compute the other elements in that row accordingly. This is the
pivotal equation row (not key row).
Step 11: Other elements in the key column must be made zero. For simplicity,
form the equations as follows: Change the sign of the key column
element, multiply with pivotal equation element and add the
corresponding variable.
19. Cont….
Step 12: Check the values of objective function. If there are negative
values, the solution is not an optimal one; go to step 5. Else, if all
the values are positive, optimality is reached. Non-negativity for
objective function value is not considered. Write down the values
of x1, x2,……..xi and calculate the objective function for
maximization or minimization.
Note:
(i) If there are no x1, x2 variables in the final iteration table, the
values of x1 and x2 are zero.
(ii) Neglect the sign for objective function value in the final iteration
table.
20. Example
Previous the packaging product mix problem is solved using
simplex method.
Maximize Z = 6x1 + 4x2
Subject to constraints,
2x1+3x2≤120 (Cutting machine) .....................(i)
2x1+ x2≤ 60 (Pinning machine) ......................(ii)
where x1, x2 ≥ 0
Considering the constraint for cutting machine,
2x1+ 3x2 ≤ 120
To convert this inequality constraint into an equation,
introduce a slack variable, S3 which represents the unused
resources. Introducing the slack variable, we have the
equation 2x1+ 3x2 + S3 = 120
Similarly for pinning machine, the equation is
2x1+ x2 + S4 = 60
21. Example cont….
If variables x1 and x2 are equated to zero,
i.e., x1 = 0 and x2 = 0, then
S3 = 120
S4 = 60
This is the basic solution of the system, and variables S3 and
S4 are known as Basic Variables, SB while x1 and x2 known
as Non-Basic Variables. If all the variables are non
negative, a basic feasible solution of a linear
programming problem is called a Basic Feasible
Solution.
22. Cont….
Rewriting the constraints with slack variables gives us,
Zmax = 6x1 + 4x2 + 0S3 + 0S4
Subject to constraints,
2x1 + 3x2 + S3 = 120 ....................(i)
2x1 + x2 + S4 = 60 ....................(ii)
where x1, x2 ≥ 0
Which can shown in following simplex table form
23. Cont…
If the objective of the given problem is a maximization one, enter the
co-efficient of the objective function Zj with opposite sign as shown in
table. Take the most negative coefficient of the objective function and
that is the key column Kc. In this case, it is -6.
Find the ratio between the solution value and the key column
coefficient and enter it in the minimum ratio column.
The intersecting coefficients of the key column and key row are called
the pivotal element i.e. 2.
The variable corresponding to the key column is the entering element
of the next iteration table and the corresponding variable of the key
row is the leaving element of the next iteration table (In other words, x1
replaces S4 in the next iteration table. Given indicates the key column,
key row and the pivotal element.)
24. Cont..
In the next iteration, enter the basic variables by eliminating the leaving variable (i.e.,
key row) and introducing the entering variable (i.e., key column).
Make the pivotal element as 1 and enter the values of other elements in that row accordingly.
In this case, convert the pivotal element value 2 as 1 in the next iteration table.
For this, divide the pivotal element by 2. Similarly divide the other elements in that row by 2.
The equation is S4/2.
This row is called as Pivotal Equation Row Pe.
The other co-efficients of the key column in iteration Table 5.4 must be made as zero in the
iteration Table 5.5.
For this, a solver, Q, is formed for easy calculation.
25. Cont…
Solver, Q = SB + (–Kc * Pe)
The equations for the variables in the iteration number 1 of table 8 are,
For S3 Q = SB + (– Kc * Pe)
= S3 + (–2x Pe)
= S3 – 2Pe …………………………(i)
For – Z , Q = SB + (– Kc * Pe)
= – Z + ((– 6) * Pe)
= – Z + 6Pe …………………………(ii)
Using the equations (i) and (ii) the values of S3 and –Z for the values of
Table 1 are found as shown in Table 5.4
26. Cont….
Using these equations, enter the values of basic variables SB and objective function Z. If
all the values in the objective function are non-negative, the solution is optimal.
Here, we have one negative value – 1. Repeat the steps to find the key row and pivotal
equation values for the iteration 2 and check for optimality.
We get New Table as below:
27. Cont….
The solution is,
x1 = 15 corrugated boxes are to be produced and
x2 = 30 carton boxes are to be produced to yield a
Profit, Zmax = Rs. 210.00
28. Cont….
It can be solve in different kinds of software as Tora,
EXCEL, Lindo, etc.
In Tora As follows,
Steps for shoving linear programming by graphic
method using Tora shoftware
Step 1 Start Tora select linear programming