LINEAR PROGRAMMING: THE

GRAPHICAL METHOD

 Linear Programming Problem

 Properties of LPs
 LP Solutions
 Graphical Solution
 Introduction to Sensitivity Analysis

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 Linear Programming (LP) Problem
 A mathematical programming problem is one that
seeks to maximize or minimize an objective function
subject to constraints.
 If both the objective function and the constraints are
linear, the problem is referred to as a linear
programming problem.
 Linear functions are functions in which each variable
appears in a separate term raised to the first power
and is multiplied by a constant (which could be 0).
 Linear constraints are linear functions that are
restricted to be "less than or equal to", "equal to", or
"greater than or equal to" a constant.

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 Building Linear Programming Models

 1. What are you trying to decide - Identify the

decision variable to solve the problem and define
appropriate variables that represent them. For instance, in
a simple maximization problem, RMC, Inc. interested in
producing two products: fuel additive and a solvent base.
The decision variables will be X1 = tons of fuel additive to
produce, and X2 = tons of solvent base to produce.
 2. What is the objective to be maximized or
minimized? Determine the objective and express it as a
linear function. When building a linear programming
model, only relevant costs should be included, sunk costs
are not included. In our example, the objective function is:
z = 40X1 + 30X2; where 40 and 30 are the objective
function coefficients.

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 Building Linear Programming Models

 3. What limitations or requirements restrict the values of

the decision variables? Identify and write the constraints
as linear functions of the decision variables. Constraints
generally fall into one of the following categories:
• a. Limitations - The amount of material used in the
production process cannot exceed the amount available
in inventory. In our example, the limitations are:
• Material 1 = 20 tons
• Material 2 = 5 tons
• Material 3 = 21 tons available.
• The material used in the production of X1 and X2 are
also known.

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 Building Linear Programming Models

 To produce one ton of fuel additive uses .4 ton of

material 1, and .60 ton of material 3. To produce one ton
of solvent base it takes .50 ton of material 1, .20 ton of
material 2, and .30 ton of material 3. Therefore, we can
set the constraints as follows: .4X1 + .50 X2 <= 20
.20X2 <= 5 .6X1 + .3X2 <=21, where .4, .50, .20, .6,
and .3 are called constraint coefficients. The limitations
(20, 5, and 21) are called Right Hand Side (RHS).
 b. Requirements - specifying a minimum levels of
performance. For instance, production must be
sufficient to satisfy customers’ demand.

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 Properties of LPs

 Proportionality
The profit contribution and the amount of the
resources used by a decision variable is directly
proportional to its value.
 Additivity
The value of the objective function and the
amount of the resources used can be calculated by
summing the individual contributions of the decision
variables.
 Divisibility
Fractional values of the decision variables are
permitted.

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 LP Solutions
 The maximization or minimization of some quantity is
the objective in all linear programming problems.
 A feasible solution satisfies all the problem's constraints.
 Changes to the objective function coefficients do not
affect the feasibility of the problem.
 An optimal solution is a feasible solution that results in
the largest possible objective function value, z, when
maximizing or smallest z when minimizing.
 In the graphical method, if the objective function line is
parallel to a boundary constraint in the direction of
optimization, there are alternate optimal solutions, with
all points on this line segment being optimal.

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 LP Solutions
 A graphical solution method can be used to solve a
linear program with two variables.
 If a linear program possesses an optimal solution,
then an extreme point will be optimal.
 If a constraint can be removed without affecting the
shape of the feasible region, the constraint is said to
be redundant.
 A nonbinding constraint is one in which there is
positive slack or surplus when evaluated at the
optimal solution.
 A linear program which is overconstrained so that no
point satisfies all the constraints is said to be
infeasible.

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 LP Solutions
 A feasible region may be unbounded and yet there may
be optimal solutions. This is common in minimization
problems and is possible in maximization problems.
 The feasible region for a two-variable linear
programming problem can be nonexistent, a single
point, a line, a polygon, or an unbounded area.
 Any linear program falls in one of three categories:
• is infeasible
• has a unique optimal solution or alternate optimal
solutions
• has an objective function that can be increased
without bound

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 Slack and Surplus Variables
 A linear program in which all the variables are non-
negative and all the constraints are equalities is said
to be in standard form.
 Standard form is attained by adding slack variables
to "less than or equal to" constraints, and by
subtracting surplus variables from "greater than or
equal to" constraints.
 Slack and surplus variables represent the difference
between the left and right sides of the constraints.
 Slack and surplus variables have objective function
coefficients equal to 0.

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 Example: Graphical Solution
 Solve graphically for the optimal solution:

Min z = 5x1 + 2x2

s.t. 2x1 + 5x2 > 10

4x1 - x2 > 12
x1 + x2 > 4

x1, x2 > 0

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 Example: Graphical Solution

 Graph the Constraints

Constraint 1: When x1 = 0, then x2 = 2; when x2 = 0, then
x1 = 5. Connect (5,0) and (0,2). The ">" side is above this
line.
Constraint 2: When x2 = 0, then x1 = 3. But setting x1 to
0 will yield x2 = -12, which is not on the graph.
Thus, to get a second point on this line, set x1 to any
number larger than 3 and solve for x2: when x1 = 5, then
x2 = 8. Connect (3,0) and (5,8). The ">" side is to the right.
Constraint 3: When x1 = 0, then x2 = 4; when x2 = 0, then
x1 = 4. Connect (4,0) and (0,4). The ">" side is above this
line.

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 Example: Graphical Solution

 Constraints Graphed

x2 Feasible Region

4x1 - x2 > 12
5

4 x1 + x2 > 4

3
2x1 + 5x2 > 10
2

1
x1
1 2 3 4 5 6

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 Example: Graphical Solution
 Graph the Objective Function
Set the objective function equal to an arbitrary constant
(say 20) and graph it. For 5x1 + 2x2 = 20, when x1 = 0,
then x2 = 10; when x2= 0, then x1 = 4. Connect (4,0) and
(0,10).

 Move the Objective Function Line Toward Optimality

Move it in the direction which lowers its value (down),
since we are minimizing, until it touches the last point
of the feasible region, determined by the last two
constraints. This is called the Iso-Value Line Method.

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 Example: Graphical Solution

 Objective Function Graphed

x2 Min z = 5x1 + 2x2

4x1 - x2 > 12
5

4 x1 + x2 > 4

3
2x1 + 5x2 > 10
2

1
x1
1 2 3 4 5 6

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 Example: Graphical Solution

 Solve for the Extreme Point at the Intersection of the Two

Binding Constraints
4x1 - x2 = 12
x1+ x2 = 4
Adding these two equations gives:
5x1 = 16 or x1 = 16/5.
Substituting this into x1 + x2 = 4 gives: x2 = 4/5
 Solve for the Optimal Value of the Objective Function
Solve for z = 5x1 + 2x2 = 5(16/5) + 2(4/5) = 88/5.
Thus the optimal solution is

x1 = 16/5; x2 = 4/5; z = 88/5

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 Example: Graphical Solution

x2 Min z = 5x1 + 2x2

4x1 - x2 > 12
5

4 x1 + x2 > 4

3
2x1 + 5x2 > 10
2

Optimal: x1 = 16/5
1
x x2 = 4/5
1
1 2 3 4 5 6

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 Sensitivity Analysis

 Sensitivity analysis is used to determine effects on the

optimal solution within specified ranges for the
objective function coefficients, constraint coefficients,
and right hand side values.
 Sensitivity analysis provides answers to certain what-if
questions.

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 Range of Optimality

 A range of optimality of an objective function coefficient is

found by determining an interval for the objective
function coefficient in which the original optimal solution
remains optimal while keeping all other data of the
problem constant. The value of the objective function
may change in this range.
 Graphically, the limits of a range of optimality are found
by changing the slope of the objective function line within
the limits of the slopes of the binding constraint lines.
(This would also apply to simultaneous changes in the
objective coefficients.)
 The slope of an objective function line, Max c1x1 + c2x2, is -
c1/c2, and the slope of a constraint, a1x1 + a2x2 = b, is -a1/a2.

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 Shadow Price

 A shadow price for a right hand side value (or resource

limit) is the amount the objective function will change
per unit increase in the right hand side value of a
constraint. Mathematically, the shadow price is the rate
of improvement in the objective value per unit increase
in a constraint right hand side(RHS). Economically, the
shadow price measures the marginal benefit of having
one additional unit of a scarce resources. Therefore,
depending on the cost per unit of the limited resource,
you use the shadow price to decide whether to buy one
additional unit of that resource.

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 Shadow Price

 Graphically, a shadow price is determined by adding

+1 to the right hand side value in question and then
resolving for the optimal solution in terms of the same
two binding constraints.
 The shadow price is equal to the difference in the values
of the objective functions between the new and original
problems.
 The shadow price for a nonbinding constraint is 0. A
constraint is nonbinding if its constraint limit is not
reached (we have more of that resource than required).

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 Dual Price

 A dual price for a right hand side value (or resource

limit) is the amount the objective function will improve
per unit increase in the right hand side value of a
constraint.
 For maximization problems dual prices and shadow
prices are the same.
 For minimization problems, shadow prices are the
negative of dual prices.

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 Range of Feasibility

 The range of feasibility for a change in the right hand

side value is the range of values for this coefficient in
which the original shadow price remains constant.
 Graphically, the range of feasibility is determined by
finding the values of a right hand side coefficient such
that the same two lines that determined the original
optimal solution continue to determine the optimal
solution for the problem.

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 Example: Sensitivity Analysis

 Solve graphically for the optimal solution:

Max z = 5x1 + 7x2

s.t. x1 < 6
2x1 + 3x2 < 19
x1 + x2 < 8

x1, x2 > 0

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 Example: Sensitivity Analysis
 Graphical Solution
x2
8
x1 + x2 < 8
Max 5x1 + 7x2
7

6
x1 < 6
5
Optimal x1 = 5, x2 = 3
4
z = 46
3

2
2x1 + 3x2 < 19
1

1 2 3 4 5 6 7 8 9 10
x1

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 Example: Sensitivity Analysis

 Range of Optimality for c1

The slope of the objective function line is - c1/c2. The slope
of the first binding constraint, x1 + x2 = 8, is -1 and the
slope of the second binding constraint, x1 + 3x2 =
19, is -2/3.
Find the range of values for c1 (with c2 staying 7) such that
the objective function line slope lies between that of the
two binding constraints:
-1 < -c1/7 < -2/3
Multiplying through by -7 (and reversing the inequalities):
14/3 < c1 < 7

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 Example: Sensitivity Analysis

 Range of Optimality for c2

Find the range of values for c2 ( with c1 staying 5)
such that the objective function line slope lies between
that of the two binding constraints:
-1 < -5/c2 < -2/3
Multiplying by -1: 1 > 5/c2 > 2/3
Inverting, 1 < c2/5 < 3/2

Multiplying by 5: 5 < c2 < 15/2

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 Example: Sensitivity Analysis
 Shadow Prices
Constraint 1: Since x1 < 6 is not a binding constraint,
its shadow price is 0.
Constraint 2: Change the RHS value of the second
constraint to 20 and resolve for the optimal point
determined by the last two constraints:
2x1 + 3x2 = 20 and x1 + x2 = 8.
The solution is x1 = 4, x2 = 4, z = 48. Hence, the
shadow price = znew - zold = 48 - 46 = 2.

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 Example: Sensitivity Analysis

 Shadow Prices (continued)

Constraint 3: Change the RHS value of the third
constraint to 9 and resolve for the optimal point
determined by the last two constraints:
2x1 + 3x2 = 19 and x1 + x2 = 9.
The solution is: x1 = 8, x2 = 1, z = 47. Hence, the
shadow price is znew - zold = 47 - 46 = 1.

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 Example: Infeasible Problem

 Solve graphically for the optimal solution:

Max z = 2x1 + 6x2

s.t. 4x1 + 3x2 < 12

2x1 + x2 > 8

x1, x2 > 0

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 Example: Infeasible Problem

 There are no points that satisfy both constraints, hence

this problem has no feasible region, and no optimal
solution.
x2

8 2x1 + x2 > 8

4x1 + 3x2 < 12

4

x1
3 4
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 Example: Unbounded Problem

 Solve graphically for the optimal solution:

Max z = 3x1 + 4x2

s.t. x1 + x2 > 5
3x1 + x2 > 8

x1 , x2 > 0

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 Example: Unbounded Problem

 The feasible region is unbounded and the objective

function line can be moved parallel to itself without
bound so that z can be increased infinitely.
x2
3x1 + x2 > 8
8

x1 + x2 > 5
5

Max 3x1 + 4x2

x1
2.67 5
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The End of Chapter 7

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