Session 3-18 - Linear Programming Problem
Session 3-18 - Linear Programming Problem
▪ Meaning
▪ Formulation - process of converting the verbal description and numerical data into mathematical
expressions, which represents the relationship among relevant decision variables (or factors), objective
and restrictions (constraints) on the use of scarce resources (such as labor, material, machine, time,
warehouse space, capital, energy, etc.) to several competing activities (such as products, services, jobs,
new equipment, projects, etc.) on the basis of a given criterion of optimality
▪ Scarce Resources - resources that are not available in infinite quantity during the planning period
▪ Criterion of optimality is generally either performance, return on investment, profit, cost, utility, time,
distance, etc.
▪ Meaning
▪ Linear Programming (LP) - a mathematical technique useful for allocation of scarce resources, to several
competing activities on the basis of a given criterion of optimality
▪ Linear - linear relationship among variables in a model, e.g., a1x1 + a2x2 + … + anxn (higher powers of
variables like x13, x23/2, etc. or their products like x1x2, etc. do not appear in the expressions for objective
function as well as the constraints)
▪ Programming - 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
Objective Function
• Expressed as a linear function of the decision variables to optimize (maximize or minimize) the criterion of optimality
(measure-of-performance) such as cost, profit, revenue, distance, etc.
• Optimize (maximize or minimize) Z = c1x1 + c2x2 + … + cnxn
where Z is the measure-of-performance variable which is a linear function of the decision variables x1, x2, … xn
c1, c2, … cn are parameters that represent the contribution of a unit of the respective variable x1, x2, … xn to the
measure-of-performance Z
Alternatives
• The different courses of action or strategy from which one must be chosen in order to achieve the desired objective
considering the given constraints
• Optimize (maximize or minimize) Z = c1x1 + c2x2 + … + cnxn
Non-Negativity
• The decision variables should be interrelated and non-negative which shows that linear programming deals with real-life
situations for which negative quantities are generally illogical
▪ Assumptions of an LP Model
• There exists proportionality between the constraints & the objective function i.e., the amount of each
resource used (or supplied) and its contribution to the profit (or cost) in objective function is
Linearity proportional to the value of each decision variable
(Proportionality) • E.g., if a product yields a profit of ₹10, the profit earned from 12 such products will be 10 × 12 = ₹120
• E.g., if a product requires processing time of 5 hours, then 10 such products will require processing
time of 5 × 10 = 50 hours
• The value of the objective function & the total amount of each resource used (or supplied) is equal to
the sum of the respective individual contribution (profit or cost) of the decision variables.
• E.g., the total profit earned from the sale of two products A and B is equal to the sum of the profits
Additivity
earned separately from A and B.
• E.g., the amount of a resource consumed for producing A and B is equal to the total sum of resources
used for A and B individually.
▪ Assumptions of an LP Model
• All parameters of the LP model such as availability of resources, profit (or cost) contribution per unit
Certainty of decision variable and consumption of resources per unit of decision variable are known and
constant i.e., the LP problem is deterministic in nature
• Decision variables are continuous & can take any non-negative values that satisfy the constraints
• If any of the variable can assume only integer values or are limited to discrete number of values, LP
Continuity model is no longer applicable. (However, such problems are frequently solved by LP techniques and
(Divisibility) the values are then rounded off to the nearest integers to satisfy the constraints. Such approximation
is valid only if the variables have large optima values, and it must be ascertained whether the solution
represented by rounded values is a feasible solution and is the best integer solution
• A finite (limited) no. of choices (alternatives) are available to the decision-maker and that the decision
Finite Choices
variables are interrelated & non-negative
▪ Applications
• Farm Economics - inter-regional competition, optimum allocation of crop production, efficient
production patterns under regional land resources & national demand constraints
Agriculture
• Farm Management - allocation of limited resources such as acreage, labor, water, working capital, etc.
to maximize the net revenue
• Selection of air weapons systems against enemies
• Ensuring minimum use of aviation gasoline
Military
• Updating supply-chain to maximize the total tonnage of bombs dropped on a set of targets
• Community defense against disaster at the lowest possible cost
• Portfolio Selection - selection of specific investment activity among several other activities i.e., finding
Financial allocation that maximizes the total expected return or minimizes the risk under certain limitations
Management • Profit Planning - maximizing the profit from investment in plant, cash in hand & inventory
▪ Applications
• Product Mix - determining quantities of different products to be produced, considering their per unit
profit (or cost) contribution & resource consumption, with the objective of maximizing the total profit
• Production Planning - determining the minimum cost production plan over the planning period, for
an item with a fluctuating demand, while considering the initial number of units in inventory,
production capacity, constraints on production, manpower and all relevant cost factors, with the
Production objective of minimizing the total operation costs
Management • Assemble-line Balancing - determining task allocation to workstations considering the task times &
sequences, with the objective of minimizing the total elapsed time to balance the assembly-line
• Blending Problems - determining minimum cost blend for a product that can be made from a variety
of available materials, subject to the availability of the materials & the product constituent constraints
• Trim Loss - determining the combination of requirements / orders to be produced from standard
materials to minimize the trim losses when an item is made to standard sizes
▪ Applications
• Media Selection - determining the advertising media mix, subject to constraints of budget, specified
exposure rates to different market segments, no. of advertisements in various media, with the
objective of maximizing the effective exposure
Marketing • Traveling Salesman Problem - determining the shortest route for a salesman from a given city to each
Management of the specified cities and then returning to the original point of departure, without visiting any city
twice during the tour
• Physical Distribution - determining the most economic & efficient locations of manufacturing plants
and distribution centers for physical distribution
• Staffing Problem - allocating optimum manpower to a particular job with the objective of minimizing
Personnel the total overtime cost or total manpower
Management • Equitable Salaries - determining equitable salaries and sales incentives
• Job Evaluation & Selection - selecting suitable person for a specified job and evaluating the job
Decision Variables Let x1, x2 & x3 be the no. of units of products A, B & C, respectively, to be produced
Objective Function Maximize (total profit) Z = 12x1 + 20x2 + 45x3
Constraints Subject to constraints 0.8x1 + 1.7x2 + 2.5x3 ≤ 100 … Labor constraints
x1 ≤ 50 ; x2 ≤ 25 ; x3 ≤ 30 … Material constraints
x1 ≥ 20 ; x2 + x3 ≥ 15 … Order commitment constraints
and x1, x2, x3 ≥ 0 … Non-negativity condition
Q. A company has two plants, each of which produces and supplies two products: A and B. The
plants can each work up to 16 hours a day. In plant 1, it takes three hours to prepare and pack
1,000 gallons of A and one hour to prepare and pack one quintal of B. In plant 2, it takes two
hours to prepare and pack 1,000 gallons of A and 1.5 hours to prepare and pack a quintal of B.
In plant 1, it costs ₹15,000 to prepare and pack 1,000 gallons of A and ₹28,000 to prepare and
pack a quintal of B, whereas in plant 2 these costs are ₹18,000 and ₹26,000, respectively. The
company is obliged to produce daily at least 10 thousand gallons of A and 8 quintals of B.
Formulate this problem as an LP model to find out as to how the company should organize its
production so that the required amounts of the two products be obtained at the minimum
cost.
Decision Variables Let x1 & x2 be the quantities of product A, in 1,000 gallons, to be produced in plants 1 & 2, respectively
Let x3 & x4 be the quantities of product B, in quintals, to be produced in plants 1 & 2, respectively
Objective Function Minimize (total cost) Z = 15,000x1 + 18,000x2 + 28,000x3 + 26,000x4
Constraints Subject to constraints 3x1 + x3 ≤ 16 ; 2x2 + 1.5x4 ≤ 16 … Preparation Time constraints
x1 + x2 ≥ 10 ; x3 + x4 ≥ 8 … Min. Daily Production constraints
and x1, x2, x3, x4 ≥ 0 … Non-negativity condition
Q. An electronic company producing two components C1 & C2 incurs costs of ₹5 in wages & ₹5 in
material costs for each C1, & ₹25 in wages & ₹15 in material for that of C2. It sells them on one-
period credit terms, but its labor & material expenses must be paid in cash. The selling price of
C1 is ₹30 per unit & that of C2 is ₹70 per unit. Because of the company’s strong monopoly, the
company can sell, at the prevailing prices, all its production, which is limited by two
considerations. First, at the beginning of period 1, the company has an initial balance of ₹4,000
(cash, bank credit & collections from past credit sales). Second, the company has, in each
period, 2,000 hours of machine time and 1,400 hours of assembly time. Production of each C1
requires 3 hours of machine time & 2 hours of assembly time, & production of each C2
requires 2 hours of machine time & 3 hours of assembly time. Formulate this problem as an LP
model to maximize the total profit to the company.
Decision Variables Let x1 & x2 be the quantities of components C1 & C2, respectively, to be produced by the company
Objective Function Maximize (total profit) Z = (30 - 5 - 5)x1 + (70 - 25 - 15)x2 = 20x1 + 30x2
Constraints Subject to constraints (5 + 5)x1 + (25 + 15)x2 ≤ 4000 … Budget constraints
3x1 + 2x2 ≤ 2,000 ; 2x1 + 3x2 ≤ 1,400 … Machine & Assembly Times constraints
and x1, x2 ≥ 0 … Non-negativity condition
Q. An electronic company produces three types of parts for automatic washing machines. It
purchases casting of the parts from a local foundry and then finishes the part on drilling,
shaping and polishing machines. The selling prices of parts A, B and C are ₹8, ₹10 and ₹14
respectively. All parts made can be sold. Castings for parts A, B and C, respectively cost ₹5, ₹6
and ₹10. The shop possesses only one of each type of casting machine. Costs per hour to run
each of the three machines are ₹20 for drilling, ₹30 for shaping and ₹30 for polishing. The
capacities (parts per hour) for each part on each machine are shown in the table below. The
management of the shop wants to know how many parts of each type it should produce per
hour in order to maximize profit for an hour’s run. Formulate this problem as an LP model so
as to maximize total profit to the company.
A. Decision Variables Let x1, x2 & x3 be the quantities of parts A, B & C, respectively, to be produced per hour by the company
Objective Function Maximize (total profit) Z = 0.25x1 + 1.00x2 + 0.95x3
Constraints Subject to constraints x1 x2 x3
+ + ≤ 1 … Drilling Machine constraints
25 40 25
x1 x2 x3
+ + ≤ 1 … Shaping Machine constraints
25 20 20
x1 x2 x3
+ + ≤ 1 … Polishing Machine constraints
40 30 40
and x1, x2, x3 ≥ 0 … Non-negativity condition
Q. A company produces two types of sauces: A and B. Both these sauces are made by blending
two ingredients - X and Y. A certain level of flexibility is permitted in the formulae of these
products. Indeed, the restrictions are that
i. B must contain no more than 75 per cent of X, and
ii. A must contain no less than 25 per cent of X, and no less than 50 per cent of Y
Up to 400 kg. of X and 300 kg. of Y could be purchased. The company can sell as much of
these sauces as it produces at a price of ₹18 for A and ₹17 for B. The X and Y ingredients cost
₹1.60 and ₹2.05 per kg., respectively. The company wishes to maximize its net revenue from
the sale of these sauces. Formulate this problem as an LP model.
A. Decision Variables Let a & b be the quantities, in kg., of sauces A & B, respectively, to be produced by the company
Let xa & xb be the quantities, in kg., of ingredient X to be used in sauces A & B, respectively
Let ya & yb be the quantities, in kg., of ingredient Y to be used in sauces A & B, respectively
Objective Function Maximize (total profit) Z = (18a + 17b) – 1.60(xa + xb) – 2.05(ya + yb)
Constraints Subject to constraints xb
≤ 0.75 … Blending constraints of ingredient X for sauce B
b
xa
≥ 0.25 … Blending constraints of ingredient X for sauce A
a
ya
≥ 0.50 … Blending constraints of ingredient Y for sauce A
a
xa + xb ≤ 400 ; ya + yb ≤ 300 … Purchase constraints of ingredients X & Y
xa + ya - a = 0; xb + yb – b = 0 … Basic Composition constraints for sauces A & B
and a, b, xa, xb, ya, yb ≥ 0 … Non-negativity condition
Q. An advertising company wishes to plan an advertising campaign for three different media:
television, radio & a magazine to reach as many potential customers as possible. The following
are the results of a market study:
Television (₹) Radio (₹) Magazine (₹)
Prime Day Prime Time
Cost of an advertising unit 40,000 75,000 30,000 15,000
No. of potential customers reached per unit 4,00,000 9,00,000 5,00,000 2,00,000
No. of women customers reached per unit 3,00,000 4,00,000 2,00,000 1,00,000
The company does not want to spend more than ₹8,00,000 on advertising.
iii. at least three advertising units be bought on prime day and two units during prime time; and
iv. the number of advertising units on the radio and the magazine should each be between 5 and 10.
A. Decision Variables Let x1, x2, x3 & x4 be the no. of advertising units on television (prime day), television (prime time), radio &
magazine, respectively, to be bought by the company
Objective Function Maximize (potential reach) Z = 4,00,000x1 + 9,00,000x2 + 5,00,000x3 + 2,00,000x4
Constraints Subject to constraints 40,000x1 + 75,000x2 +
≤ 8,00,000 … Total Budget constraints
30,000x3 + 15,000x4
3,00,000x1 + 4,00,000x2 +
≥ 20,00,000 … Women Exposure constraints
2,00,000x3 + 1,00,000x4
40,000x1 + 75,000x2 ≤ 5,00,000 … Television Budget constraints
x1 ≥ 3 ; x2 ≥ 2 ; 5 ≤ x3 ≤ 10 ; 5 ≤ x4 ≤ 10 … Advertising Units constraints
and x1, x2, x3, x4 ≥0 … Non-negativity condition
Q. A businessman is opening a new restaurant and has budgeted ₹8,00,000 for advertisement, for
the coming month. He is considering four types of advertising:
i. 30 second television commercials
iv. Full-page advertisement in a weekly magazine which will appear four times during the coming month.
The owner wishes to reach families (a) with income over ₹50,000 and (b) with income under
₹50,000. The amount of exposure of each media to families of type (a) and (b) and the cost of
each media is shown below:
To have a balanced campaign, the owner has determined the following four restrictions:
i. there should be no more than four television advertisements
Q.
iii. there should not be more than 60 per cent of all advertisements in newspaper and magazine put
together
iv. there must be at least 45,00,000 exposures to families with annual income of over ₹50,000.
A. Decision Variables Let x1, x2, x3 & x4 be the no. of advertisements on television, radio, newspaper & magazine, respectively, to be
given by the company
Objective Function Maximize (total exposures) Z = 5,00,000x1 + 12,00,000x2 + 4,50,000x3 + 2,00,000x4
Constraints Subject to constraints 40,000x1 + 20,000x2 +
≤ 8,00,000 … Budget constraints
15,000x3 + 5,000x4
x1 ≤4 … Television Advertising constraints
x4 ≤4 … Magazine Advertising constraints
(x3 + x4)
≤ 0.6 … Newspaper & Magazine
(x1 + x2 + x3 + x4)
Advertising Constraints
-0.6x1 – 0.6x2 + 0.4x3 +0.4x4 ≤0
Q. A leading CA is attempting to determine the ‘best’ investment portfolio and is considering six
alternative investment proposals. The following table indicates point estimates for the price
per share, the annual growth rate in the price per share, the annual dividend per share and a
measure of the risk associated with each investment.
Shares under Consideration A B C D E F
Current price per share (₹) 80.00 100.00 160.00 120.00 150.00 200.00
Projected annual growth rate 0.08 0.07 0.10 0.12 0.09 0.15
Projected annual dividend per share (₹) 4.00 4.50 7.50 5.50 5.75 0.00
Projected risk return 0.05 0.03 0.10 0.20 0.06 0.08
The total amount available for investment is ₹25 lakh and following conditions must be met:
Q.
i. The maximum rupee amount to be invested in alternative F is ₹2,50,000.
iii. Total weighted risk should not be greater than 0.10, where
(Amount invested in alternative j) × (Risk of alternative j)
Total weighted risk =
(Total amount invested in all the alternatives)
iv. For the sake of diversity, at least 100 shares of each stock should be purchased.
v. At least 10 per cent of the total investment should be in alternatives A and B combined.
Q. Rupee return per share of stock is defined as the price per share one year hence, less current
price per share plus dividend per share. If the objective is to maximize total rupee return,
formulate this problem as an LP model for determining the optimal number of shares to be
purchased in each of the shares under consideration. You may assume that the time horizon
for the investment is one year.
A. Decision Variables Let x1, x2, x3, x4, x5 & x6 be the no. of shares of A, B, C, D, E & F, respectively, to be purchased by the CA
Objective Function Maximize (net returns) Z = [(0.08 × 80) + 4.00]x1 + [(0.07 × 100) + 4.50]x2 + [(0.10 × 160) + 7.50]x3 +
[(0.12 × 120) + 5.50]x4 + [(0.09 × 150) + 5.75]x5 + [(0.15 × 200) + 0.00]x6
= 10.40x1 + 11.50x2 + 23.50x3 + 19.90x4 + 19.25x5 + 30.00x6
Constraints Subject to constraints 80x1 + 100x2 + 160x3 + 120x4 +
≤ 25,00,000 … Total Investment constraints
150x5 + 200x6
200x6 ≤ 2,50,000 … Share F Investment constraints
… Shares A, B Maximum Investment
80x1 + 100x2 ≤ 5,00,000
constraints
(0.05 × 80x1) + (0.03 × 100x2) +
(0.10 × 160x3) + (0.20 × 120x4) +
(0.06 × 150x5) + (0.08 × 200x6) ≤ 0.10 … Total Weighted Risk constraints
(80x1 + 100x2 + 160x3 + 120x4 +
150x5 + 200x6)
▪ Introduction
▪ An optimal as well as a feasible solution to an LP problem is obtained by choosing one set of values from
several possible values of decision variables x1, x2, ..., xn, that satisfies the given constraints simultaneously
and also provides an optimal (maximum or minimum) value of the given objective function
▪ Graphical Solution Method - the technique used to identify the optimal solution for LP problems with
only two decision variables wherein the entire set of feasible solutions can be displayed graphically by
plotting linear constraints on a graph paper in order to locate the optimal solution
▪ For most real-world problems having more than two variables, the graphical method provides pictorial
representation of the solution process & understanding of the basic concepts used in solving LP
problems algebraically
▪ Definitions
Solution A set of values of decision variables xj ( j = 1, 2, ..., n) that satisfy the constraints of an LP problem
A set of values of decision variables xj ( j = 1, 2, ..., n) that satisfy all the constraints and non-
Feasible Solution
negativity conditions of an LP problem simultaneously
Non-Basic Variables The (n – m) variables whose value did not appear in basic solution
Basic Feasible A feasible solution which is also the basic solution i.e., a basic solution with non-negative values for
Solution all basic variables
▪ Definitions
Degenerate Basic Feasible Solution A basic feasible solution with value of at least one basic variable as zero
Non-Degenerate Basic Feasible Solution A basic feasible solution with non-zero & positive values of all basic variables
▪ Definitions
Just as a linear equation in x1, x2 such as a1x1 + a2x2 = b represents a line in two-dimensions, so also a
linear equation in x1, x2, x3 such as a1x1 + a2x2 + a3x3= b or ax = b where a = (a1, a2, a3) & x = (x1, x2, x3)
Set of Points
represents a plane. Both are considered a set of points. A line represents a set of points that satisfy the
equation a1x1 + a2x2 = b, a plane represents a set of points that satisfy ax = b
A set S (of points) such that for any two points in the set, the line joining those two points lies entirely in
set
Convex Sets
▪ Supporting Theorems
The graphical method makes use of the following theorems of linear programming:
• The collection of all feasible solutions to an LP problem constitutes a convex set whose extreme points correspond to
the basic feasible solutions.
• There are a finite number of basic feasible solutions within the feasible solution space.
• If the convex set of the feasible solutions of the system of simultaneous equations: ax = b, x ≥ 0, is a convex polyhedron,
then at least one of the extreme points gives an optimal solution.
• If the optimal solution occurs at more than one extreme point, the value of the objective function will be the same for all
convex combinations of these extreme points.
Remarks • A convex set is a polygon i.e., if any two points of a polygon are selected arbitrarily, a straight line segment joining these two
points lies completely within the polygon.
• Each corner (extreme or vertex) point of the feasible region (space or area) falls at the intersection of two constraint equalities.
• The extreme points of the convex set provide the basic feasible solution to the LP problem.
A. 1. Develop an LP Model
Maximize Z = 15x1 + 10x2
Subject to constraints 4x1 + 6x2 ≤ 360 3x1 + 0x2 ≤ 180 0x1 + 5x2 ≤ 200
and x1, x2, x3 ≥ 0
A. 3. Examine the extreme points of the feasible solution space to find an optimal solution
a. Determine the coordinates of each extreme point of the feasible
solution space.
A. 3. Examine the extreme points of the feasible solution space to find an optimal solution
b. Compute and compare the value of the objective function at each
extreme point.
A. 3. Examine the extreme points of the feasible solution space to find an optimal solution
c. Identify the extreme point that gives optimal (max. or min.) value of the
objective function.
Q. The ABC Company has been a producer of picture tubes for television sets and certain printed
circuits for radios. The company has just expanded into full scale production and marketing of
AM and AM-FM radios. It has built a new plant that can operate 48 hours per week.
Production of an AM radio in the new plant will require 2 hours and production of an AM-FM
radio will require 3 hours. Each AM radio will contribute ₹40 to profits while an AM-FM radio
will contribute ₹80 to profits. The marketing department, after extensive research has
determined that a maximum of 15 AM radios and 10 AM-FM radios can be sold each week.
Formulate a linear programming model to determine the optimum production mix of AM and
FM radios that will maximize profits. Solve this problem using the graphical method.
A. Decision Variables Let x1 & x2 be the no. of AM & AM-FM radios, respectively, to be produced by the company each week
A.
Extreme Point Coordinates Objective Function Value Z = 40x1 + 80x2
O (0, 0) 40(0) + 80(0) = 0
A (0, 10) 40(0) + 80(10) = 800
B (9, 10) 40(90) + 80(10) = 1,160
C (15, 6) 40(15) + 80(6) = 1,080
D (15,0) 40(15) + 80(0) = 600
The optimal solution is: (x1 = 9, x2 = 10), and Max. Z = 1,160
ABC company must produce 9 AM radios & 10 AM-FM radios every
week to yield the maximum profit of ₹1,160
Q. G. J. Breweries Ltd. produces whisky, beer & brandy at two bottling plants, one at G & the
other at J. The no. of bottles produced per day are shown in the table. A market survey
indicates a demand of 20,000 bottles of whisky, 40,000 of beer & 44,000 of brandy that during
the month of July. The operating cost per day for plants at G & J are 600 & 400 monetary
units. For how many days each plant be run in July so as to minimize the production cost,
while still meeting the market demand? Formulate this problem as an LP problem & solve that
using graphical method.
Plant Whisky (A) Beer (B) Brandy (C)
Plant G 1,500 3,000 2,000
Plant J 1,500 1,000 5,000
A. Decision Variables Let x1, x2 & x3 be the no. of days the plants at G & J, respectively, be run by the company in the month of July
A.
Q. A firm plans to purchase at least 200 quintals of scrap containing high quality metal X & low
quality metal Y. The scrap must contain at least 100 quintals of metal X & not more than 35
quintals of metal Y. The firm can purchase the scrap from two suppliers, A & B, in unlimited
quantities. The percentage of X & Y metals in terms of weight in the scrap supplied by A & B is
given below. The price of A’s scrap is ₹200 per quintal & that of B is ₹400 per quintal. The firm
wants to determine the quantities that it should buy from the two suppliers so that the total
cost is minimized.
Metals Supplier A Supplier B
X 25% 75%
Y 10% 20%
A. Decision Variables Let x1 & x2 be the quantities (in quintals) of scrap to be purchased from Supplier A & Supplier B, respectively
Q. A manufacturer produces two different models - X and Y of the same product. Model X makes
a contribution of ₹50 per unit & model Y, ₹30 per unit, towards total profit. Raw materials r1 &
r2 are required for production. At least 18 kg of r1 & 12 kg of r2 must be used daily. Also, at
most 34 hours of labor are to be utilized. A quantity of 2 kg of r1 is needed for model X and 1
kg of r1 for model Y. For each of X and Y, 1 kg of r2 is required. It takes 3 hours to manufacture
model X & 2 hours to manufacture model Y. How many units of each model should be
produced in order to maximize the profit?
A. Decision Variables Let x1 & x2 be the no. of units of model X & Y, respectively, to be produced by the manufacturer
A.
▪ Special Cases
1. Alternative or Multiple Optimal Solutions 3. No Feasible Solution or Infeasible Solution
• When an LP problem has more than one solution • When no solution exists to an LP problem that satisfies all
yielding the same optimal objective function value. constraints & non-negativity conditions simultaneously
▪ Special Cases
1. Alternative or Multiple Optimal Solutions
• When a given LP problem has more than one solution yielding the same optimal objective function value, each of such
optimal solutions is termed as alternative optimal solution
• Alternative optimal solutions are arrived only when slope of the objective function is same as the slope of a constraint
which falls on the boundary of the feasible region
• Two conditions that should be satisfied for an alternative optimal solution to exist:
i. Slope of objective function should be the same as that of the constraint forming the boundary of feasible solutions region, and
ii. Constraint should form a boundary on the feasible region in the direction of optimal movement of the objective function i.e., the
constraint should be an active (binding or tight) constraint
A constraint is said to be active (binding or tight), if at the point of optimality, the left-hand side of a constraint equals the right-hand
side. In other words, an equality constraint is always active, and inequality constraint may or may not be active. Geometrically, an active
constraint is one that passes through one of the extreme points of the feasible solution space.
▪ Special Cases
▪ Special Cases
A. The optimal solution of LP problem can be obtained at any point between B & C including extreme points B & C on
the same line. Several combinations of values of x1 & x2 give the same value of objective function. The value of
variables x1 & x2 obtained at extreme points B & C should only be considered to establish that the solution to an LP
problem will always lie at an extreme point of the feasible region.
Extreme Point Coordinates Objective Function Value Z = 3x1 + 2x2 The max. value of Z (60) occurs at two points B & C.
O (0, 0) 10(0) + 6(0) = 2 Every linear convex combination of these points will also
give the same maximum value of S. Thus, there is no
A (0, 9) 10(0) + 6(9) = 16 unique solution to the problem, i.e., the problem has
B (6/7, 60/7) 10(6/7) + 6(60/7) = 60 multiple optimal solutions & any point between B & C on
Multiple Optimal
the line BC can be taken as an optimal solution with
C (6, 0) 10(6) + 6(0) = 60 Solutions
maximum value of the objective function Z as 60.
▪ Special Cases
2. Unbounded Solution
• When an LP problem has values of the decision variables that can increase to infinity thereby leading to an infinite value
of the objective function without violating any of the constraints
• In an LP problem having an infinite solution, such solution is referred to as an unbounded solution
• It happens when value of certain decision variables and the value of the objective function (maximization case) are
permitted to increase infinitely, without violating the feasibility condition
• There is a difference between unbounded feasible region and unbounded solution to a LP problem
• It is possible that for a particular LP problem the feasible region may be unbounded but LP problem solution may not be
unbounded, i.e., an unbounded feasible region may yield some definite value of the objective function
• In general, an unbounded LP problem solution exists due to improper formulation of the real-life problem
▪ Special Cases
A. There exist an infinite number of points in the convex region for which
the value of the objective function increases moving from the extreme
point (origin) to the right, i.e., the value of variables x1 and x2 can be
made arbitrarily large and accordingly the value of objective function Z
will also increase. Thus, the LP problem has an unbounded solution.
▪ Special Cases
A. Solution space is unbounded from above. The two corners of the region are A(0, 3) & B (2, 1)
with value of the objective function as 6 & 8, respectively. Since the objective function is to be
maximized, there exist a no. of points in the shaded region for which the value of the objective
function is more than 8, e.g., the point (2, 2) lies in the region and the objective function value
at this point is 10 which is more than 8. Thus, as value of variables x1 and x2 increase arbitrarily
large, the value of Z also starts increasing. Hence, the LP problem has an unbounded solution.
▪ Special Cases
A. For Z = 0, the iso-profit line passes through origin O(0,0) & point (4,1). The value of Z can be
increased by moving the Z = 0 iso-profit line upward parallel to itself until the max. value of Z
(10) is reached at the upper edge of the shaded region. Values of x1 & x2 can be made arbitrarily
large. Any point on the upper edge, extending to infinity, of the feasible region, yields the same
optimal value of Z = 10 for the objective function. Thus, the LP problem has an unbounded
feasible region, but since value of Z is finite, it does not have an unbounded solution.
▪ Special Cases
3. Infeasible Solution
• When no solution exists to an LP problem that satisfies all constraints & non-negativity conditions simultaneously
• This happens when there is no unique (single) feasible region
• This situation arises when a LP model that has conflicting constraints
• Any point lying outside the feasible region violates one or more of the given constraints
▪ Special Cases
A. Since there is no unique feasible solution space, therefore a unique set of values
of variables x1 and x2 that satisfy all the constraints cannot be determined.
Hence, there is no feasible solution to this LP problem because of the conflicting
constraints.
▪ Special Cases
A. Plotting the constraints provides three shaded regions satisfying some, but
not all, of the constraints. Since, the three shaded areas do not non-overlap,
there is no unique point (x1, x2) in these shaded regions that can satisfy all
the constraints simultaneously. Thus, the LP problem has an infeasible
solution i.e., the feasible solution to the LP problem does not exist.
▪ Special Cases
A. The two shaded areas satisfy two different conditions. These two shaded
regions do not overlap and hence there is no point (x, y) common to both the
shaded regions. This implies that the feasible solution to the problem does not
exist. Consequently, this LP problem has an infeasible solution.
4. Redundancy
• A constraint that does not affect the feasible solution region (or space) is known as a redundant constraint
• In other words, a constraint is said to be redundant when it may be more binding (restrictive) than another or does not
form boundary of the feasible region
• Redundancy of any constraint does not cause any difficulty in solving an LP problem graphically
▪ Special Cases
Q. An oil refinery manager must decide on the optimal mix of two possible blending processes of
which the inputs & outputs per production run are as follows. The max. amounts available of
crudes A & B are 200 units & 150 units, respectively. Market requirements show that at least
100 units of gasoline X & 80 units of gasoline Y must be produced. The profits per production
run for process 1 & process 2 are ₹300 & ₹400, respectively. Formulate this problem as an LP
model & solve it using graphical method to determine the production run for process 1 & 2.
Process (units) Grade A Input (units) Grade B Input (units) Gasoline X Output (units) Gasoline Y Output (units)
1 5 3 5 8
2 4 5 4 4
▪ Special Cases
A. Decision Variables Let x1 & x2 be the size of the production run for process 1 & 2, respectively, to be finalized by the manager
▪ Special Cases
Extreme Coordinates Objective Function Value Z = 200x1 + 400x2
Point
A.
A (20, 0) 300(20) + 400(0) = 6,000
B (40, 0) 300(40) + 400(0) = 12,000
C (400/13, 150/13) 300(400/13) + 400(150/13) = 1,80,000/13
D (0, 30) 300(0) + 400(30) = 12,000
E (0, 25) 300(0) + 400(25) = 10,000
The optimal solution is: (x1 = 400/13, x2 = 150/13), and Max. Z = 1,80,000/13
The manager should produce 400/13 units of gasoline through process 1 &
150/13 units of gasoline through process 2 in order to yield the maximum profit
of ₹1,80,000/13.
Constraint 8x1 + 4x2 ≥ 80 is redundant (since it does not form boundary of the
feasible region)
▪ Concept
▪ In an LP model, the coefficients (also known as parameters) such as:
i. profit (cost) contribution, cj, per unit of a decision variable, xj,
ii. availability of a resources, bi, and
iii. consumption of resource per unit of decision variables, aij,
are assumed to be constant and known with certainty during a planning period
▪ However, as these parameters may change, raising doubt on the validity of the optimal solution of the
given LP model, the decision-maker would like to know how changes in these parameters may affect the
optimal solution and the range within which the optimal solution will remain unchanged
▪ Concept
▪ Sensitivity Analysis - a technique that is used to evaluate the effect on an optimal solution of any LP
problem due to changes in its parameters
▪ Sensitivity Analysis - a technique that determines the sensitivity range (both lower and upper limit) within
which the LP model parameters can vary (one at a time) without affecting the optimality of the current
optional solution
▪ While study of duality helps to identify only an increase (or decrease) in the value of objective function
due to per unit variation in the amounts of resources available, the sensitivity analysis reveals the
magnitude of change in the optimal solution of an LP model due to discrete variations (changes) in its
parameters
▪ Concept
▪ Sensitivity analysis is also referred to as post-optimality analysis because it does not begin until the
optimal solution to the given LP model has been obtained
Range of Optimality for an Objective Function Coefficient = (cj - Allowable Decrease) cj (cj + Allowable Increase)
the dual value for the non-negativity condition associated with the variable
Reduced Cost
i.e., change in the value of the optimal solution per unit increase in the
associated with a variable
right-hand side of the non-negativity condition for the variable
In general, if a variable has a non-zero value in the optimal solution, it will have a reduced cost of zero
Range of Feasibility for the Right-Hand Side of a Constraint = (bi - Allowable Decrease) bi (bi + Allowable Increase)
Q. Time for the various production processes for two types of golf bags: standard & deluxe are
given below. A max. of 630 hours are available in the cutting & dyeing department, 600 hours
in the sewing department, 708 hours in the finishing department, & 135 hours in the inspection
& packaging department. Each standard bag provides a profit contribution of $10, while the
profit contribution of each deluxe bag is $9. Formulate a LP problem to determine the number
of standard & deluxe bags to produce in order to maximize total profit contribution.
Cutting & Dyeing Sewing Finishing Inspection & Packaging
Standard Bag 0.7 hour 0.5 hour 1 hour 0.1 hour
Deluxe Bag 1 hour 0.83 hour 0.67 hour 0.25 hour
A. Decision Variables Let S & D be the no. of standard & deluxe bags, respectively, to be produced
A. per unit increase in the RHS value of constraint 1, keeping all other coefficients constant,
The dual value associated with increases the optimal value of the objective function by 4.37500
i.e.,
constraint 1 is 4.37500 increasing the time available with cutting & dyeing process by 1 hour, keeping all other
coefficients constant, increases the max. profit contribution by $4.375
per unit increase in the RHS value of constraint 2, keeping all other coefficients constant,
The dual value associated with increases the optimal value of the objective function by 0.00000
i.e.,
constraint 2 is 0.00000 increasing the time available with sewing process by 1 hour, keeping all other coefficients
constant, has no effect on the max. profit contribution (since it has a slack time available)
per unit increase in the RHS value of constraint 3, keeping all other coefficients constant,
The dual value associated with increases the optimal value of the objective function by 6.93750
i.e.,
constraint 3 is 6.93750 increasing the time available with finishing process by 1 hour, , keeping all other
coefficients constant, increases the max. profit contribution by $6.93750
A. per unit increase in the RHS value of constraint 4, keeping all other coefficients constant,
increases the optimal value of the objective function by 4.37500
The dual value associated with
i.e., increasing the time available with inspection & packaging process by 1 hour, keeping all
constraint 4 is 0.00000
other coefficients constant, has no effect on the max. profit contribution (since it has a
slack time available)
The objective coefficient associated
i.e., the current profit contribution per standard bag is $10
with variable S is 10.00000
the current optimal solution will remain the optimal solution as long as the profit
contribution per standard bag is a max. of $3.5 more than its current profit contribution
The allowable increase for S is
and a max. of $3.7 less than its current profit contribution
3.50000 and the allowable decrease i.e.,
the current optimal solution will remain the optimal solution as long as $6.3 ≤ profit
for x1 is 3.70000
contribution per standard bag ≤ $13.5
range of optimality for standard bags is $6.3 to $13.5
A. Range of Feasibility
Min. Value Max. Value
Cutting & Dyeing Process 496.6 hours 682.4 hours
Sewing Process 480 hours Infinite
Finishing Process 580 hours 900 hours
Inspection & Packaging Process 117 hours Infinite