6S Linear Programming McGraw-Hill/Irwin Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved. Learning Objectives Describe the type of problem tha would lend itself to solution using linear programming Formulate a linear programming model from a description of a problem Solve linear programming problems using the graphical method Interpret computer solutions of linear programming problems Do sensitivity analysis on the solution of a linear progrmming problem 6S-2 Linear Programming Used to obtain optimal solutions to problems that involve restrictions or limitations, such as: Materials Budgets Labor Machine time 6S-3 Linear Programming Linear programming (LP) techniques consist of a sequence of steps that will lead to an optimal solution to problems, in cases where an optimum exists 6S-4 Linear Programming Model Objective Function: mathematical statement of profit or cost for a given solution Decision variables: amounts of either inputs or outputs Feasible solution space: the set of all feasible combinations of decision variables as defined by the constraints Constraints: limitations that restrict the available alternatives Parameters: numerical values 6S-5 Linear Programming Assumptions Linearity: the impact of decision variables is linear in constraints and objective function Divisibility: noninteger values of decision variables are acceptable Certainty: values of parameters are known and constant Nonnegativity: negative values of decision variables are unacceptable 6S-6 Graphical Linear Programming Graphical method for finding optimal solutions to two-variable problems 1.Set up objective function and constraints in mathematical format 2.Plot the constraints 3.Identify the feasible solution space 4.Plot the objective function 5.Determine the optimum solution 6S-7 Linear Programming Example Objective - profit Maximize Z=60X1 + 50X2 Subject to Assembly 4X1 + 10X2 <= 100 hours Inspection 2X1 + 1X2 <= 22 hours Storage 3X1 + 3X2 <= 39 cubic feet X1, X2 >= 0 6S-8 Linear Programming Example 24 22 20 18 16 14 12 10 8 6 4 2 12 10 8 6 4 2 0 0 Product X2 Assembly Constraint 4X1 +10X2 = 100 Product X1 6S-9 Linear Programming Example Add Inspection Constraint 2X1 + 1X2 = 22 20 15 10 5 24 22 20 18 16 14 12 10 8 6 4 2 0 0 Product X2 25 Product X1 6S-10 Linear Programming Example Add Storage Constraint 3X1 + 3X2 = 39 Product X2 25 Inspection 20 Storage 15 Assembly 10 5 Feasible solution space 24 22 20 18 16 14 12 10 8 6 4 2 0 0 Product X1 6S-11 Linear Programming Example Add Profit Lines Product X2 25 20 Z=900 15 10 5 Z=300 Z=600 24 22 20 18 16 14 12 10 8 6 4 2 0 0 Product X1 6S-12 Solution The intersection of inspection and storage Solve two equations in two unknowns 2X1 + 1X2 = 22 3X1 + 3X2 = 39 X1 = 9 X2 = 4 Z = $740 6S-13 Constraints Redundant constraint: a constraint that does not form a unique boundary of the feasible solution space Binding constraint: a constraint that forms the optimal corner point of the feasible solution space 6S-14 Solutions and Corner Points Feasible solution space is usually a polygon Solution will be at one of the corner points Enumeration approach: Substituting the coordinates of each corner point into the objective function to determine which corner point is optimal. 6S-15 Slack and Surplus Surplus: when the optimal values of decision variables are substituted into a greater than or equal to constraint and the resulting value exceeds the right side value Slack: when the optimal values of decision variables are substituted into a less than or equal to constraint and the resulting value is less than the right side value 6S-16 Simplex Method Simplex: a linear-programming algorithm that can solve problems having more than two decision variables 6S-17 MS Excel Worksheet for Microcomputer Problem Figure 6S.15 6S-18 MS Excel Worksheet Solution Figure 6S.17 6S-19 Sensitivity Analysis Range of optimality: the range of values for which the solution quantities of the decision variables remains the same Range of feasibility: the range of values for the fight-hand side of a constraint over which the shadow price remains the same Shadow prices: negative values indicating how much a one-unit decrease in the original amount of a constraint would decrease the final value of the objective function 6S-20