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Management Science Tools: Linear Programming

Linear programming is a quantitative technique used to allocate resources to maximize profit or minimize cost. It involves developing a mathematical model with an objective function and constraints. The objective function aims to maximize or minimize a value, while constraints represent limitations. Linear programming problems can be solved graphically by plotting the constraints on a graph and finding the optimal solution at the intersection point within the feasible region. This optimal solution provides the values of variables that achieve the highest profit or lowest cost.

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0% found this document useful (0 votes)
65 views12 pages

Management Science Tools: Linear Programming

Linear programming is a quantitative technique used to allocate resources to maximize profit or minimize cost. It involves developing a mathematical model with an objective function and constraints. The objective function aims to maximize or minimize a value, while constraints represent limitations. Linear programming problems can be solved graphically by plotting the constraints on a graph and finding the optimal solution at the intersection point within the feasible region. This optimal solution provides the values of variables that achieve the highest profit or lowest cost.

Uploaded by

Arbie D. Decimio
Copyright
© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
Download as pptx, pdf, or txt
Download as pptx, pdf, or txt
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Management

Science Tools
Linear Programming
LINEAR PROGRAMMING

is a quantitative technique used


in properly allocating the
resources of a business to
maximize its profit or minimize
cost

Leonid Vitalyevich Kantorovich


Different Approaches to Linear
Programming:

Graphical Method

Simplex Method

Transportation Problem

Assignment problem
Programming
Use of a mathematical model when developing an
equation to solve a problem.

Presence of objective function


The objective of a linear programming problem is either to maximize
profit or minimize cost. It must be expressed in an equality.

Presence of constraints
The constraints or limitations must be expressed in equalities or
inequalities.

Availability of alternatives
The alternative courses of action may favor the selection of one
variable over another or it may involve the mixture of to or more
variables.

Linear Mathematical Relationship


The relationship of the variables in linear programming is
considered linear and can be expressed in equalities or inequalities
ASSUMPTIONS OF LINEAR PROGRAMMING

1) Certainty assumption. The objective function and the constraints will not
change during the period of the study.

2) Proportionality assumption. Proportionality exists among the variables in the


function and constraints.

3) Additivity assumption. There is additivity in the mathematical model.

4) Divisibility assumption. The optimum solution may take the form of a fraction,
necessarily an integer or a whole number. However, an integer programming will
exist when a fractional form results in manufacturing a product.

5) Non-negativity assumption. The value of the decision variables should be


positive or zero.
PARTS OF A LINEAR
PROGRAMMING MODEL

OBJECTIVE FUNCTION
- maximization of the profit or minimization of cost
CONSTRAINT
- introduced by the words “subject to”

EXPLICIT CONSTRAINTS
- are limitations that are expressed or stated in the problem
IMPLICIT CONSTRAINTS
- are implied limitations or non-negativity assumptions.
METHODS OF SOLVING A LINEAR PROGRAMMING
PROBLEM
GRAPHICAL METHOD – utilizes a two-dimensional graph to solve
the programming problems

Use letters to represent the unknowns or Graph the constraints. If the lines intersect,
variables in the problem. 01 04 solve for the coordinates of the intersection
point.

If necessary, prepare a simple matrix to Determine the feasible region.


facilitate the formulation of constraints. 02 05
Feasible region – contains all the points in the
graph where the optimum solution can be found.

Formulate the objective function and the Determine the optimum solution.
constraints in equalities and inequalities 03 06

Formulate the decision based on the highest profit or


07 lower cost
ILLUSTRATION 1

Jenny Furniture Shop produces two types of tables, an elegant table and an
ordinary table. The table whether elegant or ordinary, passes through two
departments, namely, the assembly department and finishing department.
Each elegant table requires 8 hours of assembly work and 4 hours of
finishing tasks. Each ordinary table requires 6 hours in the assembly
department and 2 hours in the finishing department. Every production
period, the shop has 480 hours of assembly hours and 200 hours of finishing
time. The elegant table contributes P700 to the company’s profit, while the
ordinary table has a profit of P500.

Required: Using the graphical method of linear programming, determine


the number of units needed to be produced to maximize profits.
ILLUSTRATION 2

To operate the newly imported state-of-the-art machinery recently purchased


by ABC Company, two types of fuels are needed, namely, Fuel A and Fuel B.
The machine specifications and requirements shows that for every one hour
of production time, each gallon of Fuel A emits 6 units of Php320.00. In a
similar manner, each gallon of Fuel B emits 10 units of chemical gas and
generates 8 horsepower of mechanical energy. This costs Php300.00. The
maximum number of units of such type of chemical gas allowed by the
government to be emitted by such type of machinery is 30 units. The
operating activities of the company require at least 32 horsepower of
mechanical energy per hour.

Required: Using the graphical method, determine the number of gallons of Fuel A and
Fuel B that are needed to operate the machine at the lowest possible cost.
THANK YOU!

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