SOLVE LP
THROUGH
GRAPHICAL
REPRESENTATION
AND EXCEL
SOLVER
BUSINESS ANALYTICS FOR OPTIMAL
PERFORMANCE
ARPEE
C. ARRUEJO,
MIT
Linear Programming
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SOLUTIONS
GRAPH
A graphicalmethod involvesformulating a set of linear
inequalitiessubject tothe constraints.
Example: Problem
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A farmer has recently acquired an 110 hectares piece of land. He has decided to grow Wheat and
barley on that land. Due to the quality of the sun and the region’s excellent climate, the entire
production of Wheat and Barley can be sold. He wants to know how to plant each variety in the 110
hectares, given the costs, net profits and labor requirements according to the data shown below:
The farmer has a budget of US$10,000 and an availability of 1,200 man-days during the planning
horizon. Find the optimal solution and the optimal value.
Example: Solution
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A. Formulation of Linear Problem
Step 1: Identify the decision variables
The total area for growing Wheat = X (in hectares)
The total area for growing Barley = Y (in hectares)
X and Y are my decision variables.
Example: Solution
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Step 2: Write the objective function
Since the production from the entire land can be sold in the
market. The farmer would want to maximize the profit for his
total produce. We are given net profit for both Wheat and
Barley. The farmer earns a net profit of US$50 for each
hectare of Wheat and US$120 for each Barley.
Our objective function (given by Z) is,
Max Z = 50X + 120Y
Example: Solution
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Step 3: Writing the constraints
• 100X + 200Y ≤ 10,000
• 10X + 30Y ≤ 1200
• X + Y ≤ 110
Example: Solution
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Step 4: The non-negativity restriction
The values of X and Y will be greater than or equal to 0. This
goes without saying.
X ≥ 0, Y ≥ 0
Example: Graphical
Method
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• 100X + 200Y ≤ 10,000 can
be simplified to X + 2Y ≤ 100
by dividing by 100.
• 10X + 30Y ≤ 1200 can be
simplified to X + 3Y ≤ 120 by
dividing by 10.
• The third equation is in its
simplified form, X + Y ≤ 110.
Example: Graphical
Method
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• To maximize profit the
farmer should produce
Wheat and Barley in 60
hectares and 20 hectares
of land respectively.
• The maximum profit the
company will gain is,
Max Z = 50 * (60) + 120 * (20)
Example
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