GRAPHI CAL METHOD

Linear Programming
Linear Programming
Modeling and solving optimization problems:
Max profit or min cost
Assumptions:
1. Certainty (does not take into account uncertainties)
2. Proportionality
3. Additivity
4. Divisibility (assuming all variables are continuous and not
discrete)
5. Non-negativity (no company can produce -2 units of toy!)
Formulation of a Maximization Problem
You are a factory supervisor, deciding on daily production for 2 models:
Deluxe and Special.
Profit on Deluxe is $12/unit;
Profit on Special is $10/unit.
Each model goes through 2 phases of production;
100 man hours are available for construction stage;
80 man hours are available for finishing stage;
Each Deluxe model requires 20mins of construction and 10mins of finishing
time.
Each Special model: 15mins of construction and 15 mins of finishing time.
Special model must comprise of 40% of the production total.

Question:
How many units of Deluxe model and how many units of Special model the
company should produce to maximize profit?
Formulate this as a linear programming model.
Production of Deluxe and Special Models
Summarise the information using a table:

Deluxe Special ManHour
available
Construction
time
20mins 15mins 100hrs
Finishing 10mins 15mins 80hours
Profit $12 $10 -
Steps in Linear Programming
Step 1: Identify the decision variable
Step 2: Construction of objective function
Step 3: Construction of constraints

Step 1:
number of Deluxe model to be produced
number of Special model to be produced

x
1
=
x
2
=
Step 2: Construct the objective function
Profit for Deluxe

Profit for Special

=12x
1
=10x
2
Totalprof it=12x
1
+10x
2
Prof itmax = Z
MaxZ =12x
1
+10x
2
Step 3: Construct the constraints
Manhour
Total construction time used in order to produce
x units of Deluxe + x units of Special must be less than or same as total
construction time available.




20x
1
+15x
2
s10060,
or
20x
1
+15x
2
s 6000 (constraint 1)
10x
1
+15x
2
= 8060
10x
1
+15x
2
= 4800 (constraint 2)
SpecialModel> 40%of total production
x
2
> 0.4(x
1
+ x
2
)
x
2
0.4x
1
0.4x
2
> 0
6x
2
4x
1
> 0 (constraint 3)
Solution using Graphical Method
Objective is to find the optimal product mix to satisfy
all the constraints and max profit.
Graphical Method can only be applied when the LPP
has only 2 variables;
Plot all constraints identified in Step 3 one-by-one.
Find the best solution= optimal solution which is
always be at any of the corner point, using 2
methods: Corner Point method and Isoprofit
Line method.
Corner Point Method
Refer to the graph plotted using all the constraints:
Solve the equations to find the coordinates of every
corner
Calculate the optimal function value, Z
Choose the corner that gives the highest value of Z.
Isoprofit Line Method
Identify the optimal point (to avoid having to find all
the corner coordinates);
Step 1: set a figure for arbitrary profit
If



Push the line through the feasible region that increases the value
of the objective function- direction-away from the origin.
Therefore, the optimal point is (120,240) and Z max = $3840

x
1
=100; x
2
=100;then12x
1
+10x
2
= 2200 .
if profit = 3000;then
x
1
= ?; x
2
= ? :