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LP Modeling and Optimization Techniques

The document discusses linear programming problems and their solutions. It provides an example of a manufacturing problem seeking to maximize profits given constraints on machine processing times. The problem is modeled using decision variables and constraints, and solved using LINGO software to find the optimal solution of producing 58.9 units of product P and 26.2 units of product Q each day, yielding maximum daily profits of $4,221.82. Computational methods for solving linear programming problems by converting inequalities to equations are also overviewed.

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Karan Veer Singh
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0% found this document useful (0 votes)
23 views18 pages

LP Modeling and Optimization Techniques

The document discusses linear programming problems and their solutions. It provides an example of a manufacturing problem seeking to maximize profits given constraints on machine processing times. The problem is modeled using decision variables and constraints, and solved using LINGO software to find the optimal solution of producing 58.9 units of product P and 26.2 units of product Q each day, yielding maximum daily profits of $4,221.82. Computational methods for solving linear programming problems by converting inequalities to equations are also overviewed.

Uploaded by

Karan Veer Singh
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Programming here means Planning

Dennis Bricker Wuhan University of Technology & University of Iowa

LP Modeling

9/11/2004

page 1 of 18

linear function

f ( x1 , x2 , xn ) = c0 + ci xi
i =1

= c0 + c1 x1 + c2 x2 +
examples

+ cn xn

2 x 1 +5 x2 + x3 + 1 x1 3 x3

linear inequality

a x
i =1

i i

( or )

examples

x1 2 x2 5 2 x1 + x2 x3 10

LP Modeling

9/11/2004

page 2 of 18

In two dimensions, the graph of a linear equation is a line, and the graph of a linear inequality is a half-space (including the line).
To draw the graph of a linear inequality, first draw the graph of the equation, and then decide which side is the correct half-space by testing whether (0,0) is feasible.

In three dimensions, the graph of a linear equation is a plane. In n dimensions, the graph of a linear equation is a hyperplane.

LP Modeling

9/11/2004

page 3 of 18

Exercise

Graph the linear inequality:


X1 X 2 2

(Shade the region representing points which are feasible in both inequalities.)

LP Modeling

9/11/2004

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(exercise, continued)

Graph the solutions of the pair of linear inequalities:

X1 X 2 2 X1 + 3 X 2 6 (Shade the region representing points which are feasible in both inequalities.)

LP Modeling

9/11/2004

page 5 of 18

linear programming (LP): an optimization problem for which we maximize or minimize a linear function of the decision variables (this function is called the objective function) the values of the decision variables must satisfy a set of constraints, each

consisting of a linear equation or linear inequality


a sign restriction, i.e., usually nonnegativity ( xi 0 ) but perhaps nonpositivity

( xi 0 ) , may be associated with each decision variable.


example:

maximize 2x1 + x2 subject to 3 x1 x2 6 2 x1 + 3 x2 12 x1 0, x2 0

LP Modeling

9/11/2004

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maximize 2x1 + x2 subject to 3 x1 x2 6 2 x1 + 3 x2 12 x1 0, x2 0

Each point in the shaded feasible region satisfies all four inequality constraints (including nonnegativity) and represents a possible solution of the problem. The optimal solution is the feasible solution for which the objective function is largest.

LP Modeling

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page 7 of 18

By graphing the linear equations

2 X 1 + X 2 = 0 , 2 X 1 + X 2 = 4 , 2 X 1 + X 2 = 12 , etc., we see that the slope remains the same, but the line is shifted to the right.

How far to the right can the line be shifted while still including a feasible solution of the set of inequalities? The optimal solution is the corner farthest to the right, ( X 1 , X 2 ) = ( 6,0 ) . In fact, an optimal solution of an LP problem can always be found at a corner point!

LP Modeling

9/11/2004

page 8 of 18

Example: A manufacturer can make two products: P and Q. Each product requires processing time on each of four machines: A, B, C, and D. Each machine is available 24 hours per day = 1440 minutes per day. The profit per unit of products P and Q are $45 and $60, respectively. Maximum demand for products P and Q are 100/day and 40/day, respectively.

Machine \Product: A B C D Profit/unit

Unit Processing Time (minutes) P Q 20 10 12 28 15 6 10 15 45 60

Available (min.) 1440 1440 1440 1440

How much of each product should be manufactured each day in order to maximize profits?

LP Modeling

9/11/2004

page 9 of 18

Define the decision variables P = number of units/day of product P Q = number of units/day of product Q Objective: Maximize 45 P + 60Q ($/day) Constraints: do not exceed the available processing time on each machine: 20 P + 10Q 1440 12 P + 28Q 1440
15 P + 6Q 1440 10 P + 15Q 1440 do not produce more than the demand for the products: P 100 Q 40 a negative quantity of product is meaningless: P 0, Q 0

LP Modeling

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page 10 of 18

The maximum profit is obtained at the corner point ( P, Q ) = ( 58.9, 26.2 )


Note: I clearly erred in drawing the isoquant line for the profit!

LP Modeling

9/11/2004

page 11 of 18

The graphical method for solving an LP problem is useless for problems with more than 2 (possibly 3) decision variables

Problems occurring in the real world may involve a million decision variables and thousands of constraints!

We will study computational methods for solving linear programming problems.

LP Modeling

9/11/2004

page 12 of 18

LINGO is a software package for solving LP problems.

(by default, variables are assumed to be nonnegative.)

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SOLUTION:

Global optimal solution found at step: Objective value:

2 4221.818

Variable P Q Row 1 2 3 4 5 6 7

Value 58.90909 26.18182 Slack or Surplus 4221.818 0.0000000 0.0000000 399.2727 458.1818 41.09091 13.81818

Reduced Cost 0.0000000 0.0000000 Dual Price 1.000000 1.227273 1.704545 0.0000000 0.0000000 0.0000000 0.0000000

LP Modeling

9/11/2004

page 14 of 18

That is, the manufacturer will maximize profits by producing 58.9 units of P and 26.18 units of Q each day (assuming fractional units are possible). This plan will yield a profit of $4221.818/day.

Row 1 2 3 4 5 6 7

Slack or Surplus 4221.818 0.0000000 0.0000000 399.2727 458.1818 41.09091 13.81818

Dual Price 1.000000 1.227273 1.704545 0.0000000 0.0000000 0.0000000 0.0000000

This plan will use all of the available time on machines A and B, i.e.,
S A = SB = 0 but unused time on machines C & D will be 399.27 and 458.18, respectively,

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page 15 of 18

that is, SC = 399.2727 and S D = 458.1818 .

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page 16 of 18

Computational Methods for Solving LPs It is more convenient to work with linear equations rather than linear inequalities. Define slack variables S A , S B , SC & S D to be the unused processing time on machines A, B, C & D, respectively. Then, for example, the inequality constraint for machine A is equivalent to the linear equation and nonnegativity restriction: 20 P + 10Q 1440 20 P + 10Q + S A = 1440 & S A 0

LP Modeling

9/11/2004

page 17 of 18

Thus we obtain the system of equations (& simple bounds on the variables):

20 P + 10Q 1440 12 P + 28Q 1440 15 P + 6Q 1440 10 P + 15Q 1440

= 1440 20 P + 10Q + S A 12 P + 28Q + SB = 1440 + SC = 1440 15 P + 6Q + S D = 1440 10 P + 15Q 0 P 100, 0 Q 40, S A 0, S B 0, SC 0, S D 0

Next we will review computational methods for solving systems of linear equations!

LP Modeling

9/11/2004

page 18 of 18

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