chapter 7 linear programming models: graphical and computer methods
TRANSCRIPT
Chapter 7
Linear Programming Models: Graphical and Computer
Methods
Chapter Outline
7.17.1 Introduction7.27.2 Requirements of a Linear Programming Problem7.37.3 Formulating LP Problems7.47.4 Graphical Solution to an LP Problem7.57.5 Solving LP Problem (QM for Window and Excel)7.67.6 Solving Minimization Problems7.77.7 Four Special Cases in LP7.87.8 Sensitivity Analysis
Objectives of business decisions frequently involve maximizing profit or minimizing costs.
Linear programming is an analytical technique in which linear algebraic relationships represent a firm’s decisions, given a business objective, and resource constraints.
Steps in application: Identify problem as solvable by linear programming. Formulate a mathematical model of the unstructured
problem. Solve the model. Implementation
Linear Programming: An Overview
Requirements Decision variables - mathematical symbols representing levels of activity of a
firm. Objective function - a linear mathematical relationship describing an objective of
the firm, in terms of decision variables - this function is to be maximized or minimized.
Constraints – requirements or restrictions placed on the firm by the operating environment, stated in linear relationships of the decision variables.
Parameters - numerical coefficients and constants used in the objective function and constraints.
Assumptions Proportionality - The rate of change (slope) of the objective function and
constraint equations is constant. Additivity - Terms in the objective function and constraint equations must be
additive. Divisibility -Decision variables can take on any fractional value and are therefore
continuous as opposed to integer in nature. Certainty - Values of all the model parameters are assumed to be known with
certainty (non-probabilistic). Non-negativity - all answers or variables are greater than or equal to (≥) zero
Requirements of LP Problems and LP Basic Assumptions
Minime Restaurant
Pho
(40K VND/bowl)
Hu tieu
(50K VND/bowl)
Chef
(works 40 min./day)
Meat
(120 grs meat/day)
I can prepare 1 bowl of:- Pho in 1 min.
- Hu tieu in 2 min.1 bowl of:- Pho needs 4 gr meat- Hu tieu neads 3 gr. meat
LP Model FormulationA Maximization Example (1 of 3)
Product mix problem – Minime Noodle Restaurant
How many bowls of Pho and Hu tieu should be prepared to maximize profits given labor and materials constraints?
Product resource requirements and unit profit:
Products Resource Requirements Profits
Labor (min./bowl)
Meat (gr./bowl)
(K. VND/bowl)
Pho 1 4 40
Hu tieu 2 3 50
ResourceAvailability
40 min. 120 grs.
LP Model FormulationA Maximization Example (2 of 3)
Products Resource Requirements Profits
Labor (min./bowl) Meat (gr./bowl) (K. VND/bowl)
Pho 1 4 40
Hu tieu 2 3 50
Avail. Resource 40 120
Trial and error
• All for Pho:
40 bowls 30 bowls 30 bowls x 40= 1200 (chef’s time surplus)
• All for Hu tieu: 20 bowls 40 bowls 20 bowls x 50= 1000 (meat surplus)
Half for Pho and Half for Hu tieu PHO 20 bowls 15 bowls 15 bowls x 40= 600 (chef’s time surplus) HU TIEU 10 bowls 20 bowls 10 bowls x 50= 500 (meat surplus)
Time Meat Profit
LP Model FormulationA Maximization Example (3 of 3)
Decision x1 = # of bowls of Pho to prepare per dayVariables: x2 = # of bowls of Hu tieu to prepare per day
Objective Maximize Z = 40x1 + 50x2
Function: Where Z = profit per day subject to (s.t.):
Resource 1x1 + 2x2 40 minutes of laborConstraints: 4x1 + 3x2 120 grs. of meat
Non-Negativity x1 0; x2 0 Constraints:
A feasible solution does not violate any of the constraints:
Example x1 = 5 bowls of Pho
x2 = 10 bowls of Hu tieu
Z = 40x1 + 50x2 = 700 (K.VND) Labor constraint check: 1(5) + 2(10) = 25 < 40 minutes, within constraint Meat constraint check: 4(5) + 3(10) = 70 < 120 grams, within constraint
An infeasible solution violates at least one of the constraints:
Example x1 = 10 bowls of Pho
x2 = 20 bowls of Hu tieu Z = 1400 (K.VND) Labor constraint check: 1(10) + 2(20) = 50 > 40 minutes, violates constraint
Feasible and Infeasible Solutions
Graphical solution is limited to linear programming models containing only two decision variables (can be used with three variables but only with great difficulty).
Graphical methods provide visualization of how a solution for a linear programming problem is obtained.
Graphical Solution of LP Models
Coordinate AxesGraphical Solution of Maximization Model (1 of 11)
Maximize Z = 40x1 + 50x2
subject to: 1x1 + 2x2 40 4x1 + 3x2 120
x1, x2 0
Figure 2.2 Coordinates for Graphical Analysis
Labor ConstraintGraphical Solution of Maximization Model (2 of 11)
Maximize Z = 40x1 + 50x2
subject to: 1x1 + 2x2 40 4x1 + 3x2 120
x1, x2 0
Figure 2.3 Graph of Labor Constraint
Labor Constraint AreaGraphical Solution of Maximization Model (3 of 11)
Maximize Z = 40x1 + 50x2
subject to: 1x1 + 2x2 40 4x1 + 3x2 120
x1, x2 0
Figure 2.4 Labor Constraint Area
Meat Constraint AreaGraphical Solution of Maximization Model (4 of 11)
Maximize Z = 40x1 + 50x2
subject to: 1x1 + 2x2 40 4x1 + 3x2 120
x1, x2 0
Figure 2.5 Clay Constraint Area
Both ConstraintsGraphical Solution of Maximization Model (5 of 11)
Maximize Z = 40x1 + 50x2
subject to: 1x1 + 2x2 40 4x1 + 3x2 120
x1, x2 0
Figure 2.6 Graph of Both Model Constraints
Feasible Solution AreaGraphical Solution of Maximization Model (6 of 11)
Maximize Z = 40x1 + 50x2
subject to: 1x1 + 2x2 40 4x1 + 3x2 120
x1, x2 0
Figure 2.7 Feasible Solution Area
Graphical Solution Methods
ISOPROFIT METHOD1. Graph all constraints and find the feasible region.
2. Select a specific profit (or cost) line and graph it to find the slope.
3. Move the objective function line in the direction of increasing profit (or decreasing cost) while maintaining the slope. The last point it touches in the feasible region is the optimal solution.
4. Find the values of the decision variables at this last point and compute the profit (or cost).
CORNER POINT METHOD1. Graph all constraints and find the feasible region.
2. Find the corner points of the feasible reason.
3. Compute the profit (or cost) at each of the feasible corner points.
4. select the corner point with the best value of the objective function found in Step 3. This is the optimal solution.
Isoprofit Line MethodGraphical Solution of Maximization Model (7 of 11)
Maximize Z = 40x1 + 50x2
subject to: 1x1 + 2x2 40 4x1 + 3x2 120
x1, x2 0
Figure 2.8 Objection Function Line for Z = $800
Construct the isoprofit line:
Z = 40x1 + 50x2
x2 = Z/50 - 40/50x1
= Z/50 -4/5x1
Isoprofit Line MethodGraphical Solution of Maximization Model (8 of 11)
Maximize Z = 40x1 + 50x2
subject to: 1x1 + 2x2 40 4x1 + 3x2 120
x1, x2 0
Figure 2.9 Alternative Objective Function Lines
Isoprofit Line MethodGraphical Solution of Maximization Model (9 of 11)
Maximize Z = 40x1 + 50x2
subject to: 1x1 + 2x2 40 4x1 + 3x2 120
x1, x2 0
Figure 2.10 Identification of Optimal Solution
Optimal Solution CoordinatesGraphical Solution of Maximization Model (10 of 11)
Maximize Z = 40x1 + 50x2
subject to: 1x1 + 2x2 40 4x1 + 3x2 120
x1, x2 0
Figure 2.11 Optimal Solution Coordinates
Extreme (Corner) Point MethodGraphical Solution of Maximization Model (11 of 11)
Maximize Z = 40x1 + 50x2
subject to: 1x1 + 2x2 40 4x1 + 3x2 120
x1, x2 0
Figure 2.12 Solutions at All Corner Points
Using Excel’s Solver to Solve LP Problems
The Solver tool in Excel can be used to find solutions to LP problems Integer programming problems Noninteger programming problems
Solver may be sensitive to the initial values it uses Solver is limited to 200 variables and 100
constraints It can be used for small real world problems Add-ins like What’s Best! Can be used to expand
Solver’s capabilities
Click on “Tools” to invoke “Solver.”
Objective function
Decision variables – Pho(x1)=B10; Hu tieu (x2)=B11
=C6*B10+D6*B11
=C7*B10+D7*B11
=E6-F6
=E7-F7
Maximize Z = 40 x1 + 50 x2
Subject to
x1 + 2x240 mins. (labor constraint)
4x1 + 3x2120 grs. (meat constraint)
x1 , x2 0
Using Excel’s Solver to Solve LP Problems
After all parameters and constraints have been input, click on “Solve.”
Objective function
Decision variables
C6*B10+D6*B11≤40
C7*B10+D7*B11≤120
Click on “Add” to insert constraints
Using Excel’s Solver to Solve LP Problems
Using Excel’s Solver to Solve LP Problems
Using QM for Windows and Excel Solving Flair Furniture’s LP Problem
Most organizations have access to software to solve big LP problems
While there are differences between software implementations, the approach each takes towards handling LP is basically the same
Once you are experienced in dealing with computerized LP algorithms, you can easily adjust to minor changes
Maximize profit = $70T + $50C
subject to
4T + 3C ≤240 (carpentry constraint)2T + 1C ≤100 (painting and varnishing constraint)T, C ≥ 0 (nonnegativity constraint)
Using QM for Windows
First select the Linear Programming module Specify the number of constraints (non-negativity is assumed) Specify the number of decision variables Specify whether the objective is to be maximized or minimized For the Flair Furniture problem there are two constraints, two
decision variables, and the objective is to maximize profit
Computer screen for input of data
Using QM for Windows
Computer screen for input of data
Computer screen for output of solution
Using QM for Windows
Graphical output of solution
LP Model FormulationA Minimization Example (1 of 6)
Chemical Contribution
Brand Nitrogen (lb/bag)
Phosphate (lb/bag)
Super-gro 2 4
Crop-quick 4 3
Two brands of fertilizer available - Super-Gro, Crop-Quick.
Field requires at least 16 pounds of nitrogen and 24 pounds of phosphate.
Super-Gro costs $6 per bag, Crop-Quick $3 per bag. Problem: How much of each brand to purchase to
minimize total cost of fertilizer given following data ?
Fertilizing Farmer’s Field
LP Model FormulationA Minimization Example (2 of 6)
Decision Variables: x1 = bags of Super-Grox2 = bags of Crop-Quick
The Objective Function:Minimize Z = 6x1 + 3x2
Model Constraints:2x1 + 4x2 16 lb (nitrogen constraint)4x1 + 3x2 24 lb (phosphate constraint)x1, x2 0 (non-negativity constraint)
LP Model Formulation and Constraint GraphA Minimization Example (3 of 6)
Minimize Z = $6x1 + $3x2
subject to: 2x1 + 4x2 16 4x1 + 3x2 24
x1, x2 0
Figure 2.16 Graph of Both Model Constraints
Feasible Solution AreaA Minimization Example (4 of 6)
Minimize Z = $6x1 + $3x2
subject to: 2x1 + 4x2 16 4x1 + 3x2 24
x1, x2 0
Figure 2.17 Feasible Solution Area
Optimal Solution PointA Minimization Example (5 of 6)
Minimize Z = $6x1 + $3x2
subject to: 2x1 + 4x2 16 4x1 + 3x2 24
x1, x2 0
Figure 2.18 Optimum Solution Point
Construct the objective line:
Z = 6x1 + 3x2
x2 = Z/3 – 6/3x1
x2 = Z/3 -2x1
Figure 2.19 Graph of Fertilizer Example
Graphical SolutionsA Minimization Example (6 of 6)
Minimize Z = $6x1 + $3x2
subject to: 2x1 + 4x2 16 4x1 + 3x2 24
x1, x2 0
Four Special Cases in LP
Four special cases and difficulties arise at times when using the graphical approach to solving LP problems
Infeasibility Unboundedness Redundancy Alternate Optimal Solutions
Four Special Cases in LP Infeasibility-A problem with no feasible solution
Exists when there is no solution to the problem that satisfies all the constraint equations
No feasible solution region exists
8 –
–
6 –
–
4 –
–
2 –
–
0 –
X2
| | | | | | | | | |
2 4 6 8 X1
Region Satisfying First Two ConstraintsRegion Satisfying First Two Constraints
Region Satisfying Third Constraint
Four Special Cases in LP Unboundedness- A solution region unbounded to the right
In a graphical solution, the feasible region will be open ended
This usually means the problem has been formulated improperly
15 –
10 –
5 –
0 –
X2
| | | | |
5 10 15 X1
Feasible Region
X1 ≥ 5
X2 ≤ 10
X1 + 2X2 ≥ 15
Four Special Cases in LP Redundancy- A problem with a redundant constraint
A redundant constraint is one that does not affect the feasible solution region
30 –
25 –
20 –
15 –
10 –
5 –
0 –
X2
| | | | | |
5 10 15 20 25 30 X1
Redundant Constraint
Feasible Region
X1 ≤ 25
2X1 + X2 ≤ 30
X1 + X2 ≤ 20
Four Special Cases in LP Alternate optimal solutions
Occasionally two or more optimal solutions may exist Graphically this occurs when the objective function’s
isoprofit or isocost line runs perfectly parallel to one of the constraints8 –
7 –
6 –
5 –
4 –
3 –
2 –
1 –
0 –
X2
| | | | | | | |
1 2 3 4 5 6 7 8 X1
Feasible Region
Isoprofit Line for $8
Optimal Solution Consists of All Combinations of X1 and X2 Along the AB Segment
Isoprofit Line for $12 Overlays Line Segment AB
B
A
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 (RHS) values.
Sensitivity analysis provides answers to certain what-if questions.
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
The slope of a constraint, a1x1 + a2x2 = b, is -a1/a2
Shadow Price
A shadow price for a RHS value (or resource limit) is the amount the objective function will change per unit increase in the right hand side value of a constraint.
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.
Solve graphically for the optimal solution:
Max z = 5x1 + 7x2
s.t. x1 < 6
2x1 + 3x2 < 19
x1 + x2 < 8
x1, x2 > 0
Example: Sensitivity Analysis
Graphical Solution
8
7
6
5
4
3
2
1
1 2 3 4 5 6 7 8 9 10
22xx11 + 3 + 3xx22 << 19 19
xx22
xx11
xx11 + + xx22 << 8 8Max 5x1 + 7x2Max 5x1 + 7x2
xx11 << 6 6
Optimal Optimal xx11 = 5, = 5, xx22 = 3 = 3 zz = 46 = 46
Example: Sensitivity Analysis
Example: Sensitivity Analysis Range of Optimality for c1
The slope of the objective function line is -c1/c2. The slope of the 1st binding constraint, x1 + x2 = 8, is -1, the slope of the 2nd binding constraint, 2x1 + 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
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
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 2nd 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.
Constraint 3: Change the RHS value of the 3rd 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 = znew - zold = 47 - 46 = 1.
Homework 06
7.15, 7.16, 7.20, 7.22, 7.24, 7.26, 7.28