Introduction to LPP

Before discussing the basic concepts and applications of linear programming, it is important to
understand the meaning of the words – linear and programming. The word linear refers to linear
relationship among variables in a model. That is, a given change in one variable causes a
proportional change in another variable. For example, doubling the investment on a certain
project will also double the rate of return. The word programming refers to the mathematical
modelling and solving of a problem that involves the use of limited resources, by choosing a
particular course of action (or strategy) among the given courses of action (or strategies) in order
to achieve the desired objective.

Linear Programming Problem (LPP) is a mathematical technique which is used to optimize

(maximize or minimize) the objective under the given constraints. LPP is useful mathematical
technique because resources are scarce or limited and these resources should be used in such a
way that we could get optimum result. We optimize objective function under the given
constraints. The objective function and the constraints can be expressed as linear functions of
the decision variables.

Four components of any LP model are:

(i) Decision variables

(ii) Objective function
(iii) Constraints
(iv) Non negativity

Objective function: The objective function of each LP problem is expressed in terms of

decision variables to optimize the criterion of such as cost, profit, time, labor, revenue etc. It is
denoted by z . For example, if Z = 10x + 7y. The variables x and y are called the decision
variable.
Decision variables: The decision variables are the variables, which has to be determined to
optimize the objective function.
Constraints: There are always certain limitations (or constraints) on the use of resources, such
as: labour, machine, raw material, space, money, etc., that limit the degree to which an objective
can be achieved. Such constraints must be expressed as linear equalities or inequalities in terms
of decision variables. The solution of an LP model must satisfy these constraints.
Non negativity: Non-negativity restriction indicates that all decision variables must take on
values equal to or greater than zero.
We calculate two types of solution;
(i) Initial solution (initial basic feasible solution)
(ii) Optimal Solution.
Feasible solution: A set of values of the decision variables that satisfies all the constraints of the
problem and non-negativity restrictions is called a feasible solution of the problem.

Optimal solution: Any feasible solution which maximizes or minimizes the objective function is
called an optimal solution.

ADVANTAGES OF USING LINEAR PROGRAMMING

Following are certain advantages of using linear programming technique:

1. Linear programming technique helps decision-makers to use their productive resources
effectively.
2. Linear programming technique improves the quality of decisions. The decision-making
approach of the user of this technique becomes more objective and less subjective.
3. Linear programming technique helps to arrive at optimal solution of a decision problem by
taking into
Account constraints on the use of resources. For example, saying that so many units of any
product may be produced does not mean that all units can be sold.
4. Linear programming approach for solving decision problem highlight bottlenecks in the
production processes. For example, when a bottleneck occurs, machine cannot produce sufficient
number of units of a product to meet demand. Also, machines may remain idle.
The linear programming problem can be solved using different methods, such as the graphical
method & simplex method. Both the methods are used to find optimal solution. An optimal
solution is a feasible solution where the objective function reaches its maximum (or minimum)
value – for example, the most profit or the least cost.
Limitations:-
(I) The assumption that all relation is linear may not hold well in many real situations.
(II) In linear programming all coefficients and constraints are stated with certainty.
(III) The solution many times is in fractions which may not remain optimal when
rounded off.
(IV) When the no. of variables or constraints involved is quite large then it becomes
necessary to use computers.
(V) It deals with only a single objective problem.
 Graphical Method

Corner point method is used to solve LPP graphically.

Steps in Graphical Method: -

(i). First check that problem is given in max or min

(ii). Convert the inequality in the form of equality.

(iii). Calculate intersecting point of given line or equation.

(iv). with the help of points draw the graph.

(v). Find out the bounded region covered, which is against the inequality.

(vi). after selecting the region select option point in that shaded region.

(vii). Put that points in Zmax or Zmin and evaluate the answer accordingly.
Simplex method examines corner points of the feasible region, using matrix row operations,
until an optimal solution is found.

1). Slack Variable: - When the inequality is given in the form of ≤ then we introduce or add one
slack variable in the inequality to convert it equality.

2). Surplus Variable: - When the inequality is given in the form of ≥ then we subtract one
surplus and add one artificial variable on the inequality to convert it into equality.

3). Artificial variable: - When the inequality is given in the form of (=) then add one artificial
variable in the inequality to convert it equality.

Steps in slack variable Problem: -

Step 1. Convert the inequality in the form of equality with the help of variables.

Step 2. Draw the table:-For Eg: -

(a). XB = constant value given in equality.

(b). Ci = coefficient of Z(value).

(c). CB= Variable introduced.

Step 3. Z= Multiplying CB value with every variable and add them.

Step 4.   (Ci  Z )
Condition 1: -If all the  ≤0 then this is known as optimal solution.

Condition 2: if all the  is not less than equal to zero then this is not an optimal solution. Then
to obtain the optimal solution follows these steps:-

(a). Select maximum  .

(b). Calculate min ratio.

(c). Select Key element.

Note :- Key element should always be 1. With respect to key element remaining element with in
the selected column should be zero.

Again calculate Z &   (Ci  Z ) , until  ≤0 occurs.

 In case of Z maximization the solution will be optimal when (CJ - Z) ≤0.

 •In case of Z minimization the Solution will be optimal when (CJ - Z) >=0. And there
two more changes in the process
1. Multiply by –sign in Zmin OR
2. Run the process as you run in Z max only select the MIN  rest the process is
same.

BIG M-Method: -

In case of Z maximization the solution will be optimal when (CJ - Z) ≤0.

•In case of Z minimization the Solution will be optimal when (CJ - Z) ≥0. Rest the
process remains the same as in Zmax problem.

•In case of Big-M Method In maximization problem we write –M for artificial

Variable coefficient.
•In case of Big-M Method in Minimization problem we write +M for artificial
Variable coefficient.

•Rest all the steps are same as we studied in simplex method.

Case I: - Zmax: - then all the inequality in constraints should be less than or equal
(≤) if not then multiply that constraint with (-1) and change the inequality.

Case II: - Zmin: - then all the inequality in constraints should be more than or
equal (≥) if not then multiply that constraint with (-1) and change the inequality.

Case III: - If Inequality is given in the form of equality then break the equation in 2
inequality one is in >= sign and another in <= sign.

Case IV: - If one of the variable is given in unrestricted form then make it
restricted by doing eg if X3 then write it as x3’ –x3”

Step 2:- Write all the constraint in matrix form: -for eg.
Step 3:- Take a transpose of the matrix.
Step 4: - Change the variable.
Step 5: - Change the RHS value with the objective function coefficient.
Step 6: -RHS constants of the constraints to write new objective function.

Transportation

1. North West Corner Rule:

Step 1;- Supply and demand should be equal in transportation problem if D≠ S then we introduce
a dummy row or dummy column to balance the D=S.

Step 2:- Start the problem from the first cell of the given transportation.

Step 3:- Fill according to demand & supply, all the cells.

Step 4:- multiply all the cells from the cost, which are occupied with D & S.

Step 5:- hence Transportation cost will obtained.

2. Low Cost Method;-

Step 1:- Demand and supply should be equal in problem if D≠ S then we introduces a dummy
row or dummy column to balance the D=S.

Step 2:- start the problem from the min cost given in the cell. Fill whole demand and supply
within it.

Step 3:- Multiply all the cost of occupied cell and add them for T.C.

3. Vogel’s approximation method (Penalty Method)

Step 1:- Demand and supply should be equal in problem if D≠ S then we introduces a dummy
row or dummy column to balance the D=S.

Step 2:- Calculate penalty with the help of 2 min cost difference.

Step 3:- Select max penalty (Do until all Demand and supply filled).

Step 4:- Calculate T.C.

Now to check this transportation cost we do optimality test.

I. There should be initial basic feasible solution (IBFS).

ii. M+N-1=occupied cells. If yes then this is known as Non-degeneracy. If not then this is the
case of degeneracy.
iii. All allocation should be at independent position.
Modi Test;-

(i) Insert a new row and new column named as ui and VJ.
(ii) Calculate the value of ui and vj with help of occupied cells. (Do one value zero in which)

 ij value form occupied cells: -

(iii) Calculate
 ij  cij  (ui  v j )

If all the  ij  0 then this is optimal solution. If all the  ij

not Greater than equal to zero then
this is not an optimal solution. To obtain an optimal solution: -

(i) Draw loop with the help of negative sign and run it from occupied cell to
occupied cell.

value from the loop and calulate the value

(ii) After plotting a loop select -

of .

(iii) After plotting a loop select at least value within that loop from occupied
cell and subtract it in alternative form (+,-,+,-) and draw a new table and
again calculate ui and vj and until is obtain.

Case: -. M+N-1≠ occupied cells. If No then this is known as degeneracy. To make it non
degeneracy we have to add one € as a small quantity which tends to zero. At the min cost place
and the position should be independent.

iii. All allocation should be at independent position.

Stepping Stone Method: -

Step 1: - Find an initial basic feasible solution using any one of the three methods NWCM, LCM
or VAM.

Step 2: - i. Draw a closed path (or loop) from an unoccupied cell. The right angle turn in this path
is allowed only at occupied cells and at the original unoccupied cell. Mark (+) and (-) sign
alternatively at each corner, starting from the original unoccupied cell.

ii. Add the transportation costs of each cell traced in the closed path. This is called net cost
change. iii. Repeat this for all other unoccupied cells.

Step 3: -i if all the net cost change are ≥0, an optimal solution has been reached. Now stop this
procedure.
ii. If not then select the unoccupied cell having the highest negative net cost change and draw a
closed path.

Step 4: -i. Select minimum allocated value among all negative position (-) on closed path.

ii. Assign this value to selected unoccupied cell (So unoccupied cell becomes occupied cell).

iii. Add this value to the other occupied cells marked with (+) sign.

iv. Subtract this value to the other occupied cells marked with (-) sign.

Step 5: -Repeat Step-2 to step-4 until optimal solution is obtained. This procedure stops when all
net cost change ≥0 for unoccupied cells.

Maximization in Transportation

•There are certain types of transportation problems where the objective function is to be
maximized instead of being minimized. These problems can be solved by converting the
maximization problem into a minimization problem

•Converting the profit matrix to an equivalent loss matrix by subtracting all the profit values
from the highest value.