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Business Analytics

ADM2302 B / ADM2302 C
Week 2a
Linear Programming: Graphical Method I

Notes
Deferred exams
Student Service Centre (DMS110)
http://www.telfer.uottawa.ca/bcom/en/current-students/55exams

Assignment 1
Individual Assignment
Due before class September 29th
Electronic and Hardcopy

Lecture Slides Upload


TA DGDs and Office Hours

Graphical Solution Method


Graphical methods provide visualization of how a
solution for a linear programming problem is obtained.
Please note that Graphical solution is limited to linear
programming models containing only two decision
variables.
Decision Variables are axes decision space
Constraints and Objective Function are lines

Example Product Mix Problem


How many bowls and mugs should be produced to
maximize profits given labor and materials constraints?
Product resource requirements and unit profit:
Resource availability :
40 hrs of labor/day
120 lbs of clay

Linear Programming Model


Formulation
Decision Variables:
Let X1 be the number of bowls to produce per day
Let X2 be the number of mugs to produce per day
Objective Function:
Maximize Z = $40X1 + $50X2
where Z = profit per day
Resource Constraints:
1X1 + 2X2 40 hours of labour
4X1 + 3X2 120 pounds of clay
Non-Negativity Constraints:
X1 0; X2 0

Graphical Solution (1 of 11)


Graph axes
Scales
Labels

Graph labour constraint


Maximize Z = $40X1 +
$50X2
Subject to: 1X1 +
2X2 40
4X1 + 3X2 120
X1 0; X2 0

Graphical Solution (2 of 11)


Identify feasible region
(area) of the 3 constraints
graphed
Pick a side and test a point, is
it feasible? If not, then the
Maximize
Z = $40X
+on the
feasible region
must 1be
other side.
$50X
2

Subject to: 1X1 +


2X2 40
4X1 + 3X2 120
X1 0; X2 0

Graphical Solution (3 of 11)


Graph axes
Scales
Labels

Graph clay constraint


Maximize Z = $40X1 +
$50X2
Subject to: 1X1 + 2X2
40
4X1 + 3X2 120
X1 0; X2 0

Graphical Solution (4 of 11)


Graph all model constraints

Maximize Z = $40X1 +
$50X2
Subject to: 1X1 +
2X2 40
4X1 + 3X2 120
X1 0; X2 0

Graphical Solution (5 of 11)


Identify Feasible Solution
Region (FSR)
R? S? T?

Maximize Z = $40X1 +
$50X2
Subject to: 1X1 +
2X2 40
4X1 + 3X2 120
X1 0; X2 0

Graphical Solution (6 of 11)


Graph the objective function
using an arbitrary value for Z
Sometime this is called the isoprofit line
Objective Function Line for Z =
Maximize
Z = $40X1
$800

+ $50X2
Subject to: 1X1 + 2X2
40
4X1 + 3X2 120
X1 0; X2 0

Graphical Solution (7 of 11)


Alternative objective
function lines
Z = 800
Z = 1200
Z = 1600

Maximize Z = $40X1
+ $50X2
Subject to: 1X1 + 2X2
40
4X1 + 3X2 120
X1 0; X2 0

Graphical Solution (8 of 11)


Identify optimal solution
point

Maximize Z = $40X1
+ $50X2
Subject to: 1X1 + 2X2
40
4X1 + 3X2 120
X1 0; X2 0

Graphical Solution (9 of 11)


Solve for the decision
variables associated with the
optimal point
Maximize Z = $40X1 +
$50X2
Subject to: 1X1 + 2X2
40
4X1 + 3X2 120
X1 0; X2 0

Observation: Where would the


optimal solutions always be?

An optimal solution, if it exists, will always be at


the corner of the feasible solution region (area).

Graphical Solution (10 of 11)


Compare solutions at all
corner points

Maximize Z = $40X1 +
$50X2
Subject to: 1X1 + 2X2
40
4X1 + 3X2 120
X1 0; X2 0

Graphical Solution (11 of 11)


What if the objective
function changes?

Maximize Z = $70X1
+ $20X2
Subject to: 1X1 + 2X2
40
4X1 + 3X2 120
X1 0; X2 0

Overview of Graphing
Procedure
Graph the

Draw axes and


graph
constraints

Identify the
FSR

objective
function using
an arbitrary Z
value

Plug the optimal point


back into the objective
function and solve for Z

Write your managerial


statement and include
both the values of the
optimal point and the
optimal Z

Plug all corner points


back into the objective
function and solve for Z.
Look for optimal Z

Write your managerial


statement and include
both the values of the
optimal point and the
optimal Z

Move iso-profit
line

Solve 2
equations 2
unknowns

Test corner
points of FSR

Solve 2
equations 2
unknowns

Whichever method you pick, the


optimal point must be clear.
Sometimes the iso-profit line is
not the best option because of
the scale of the graph and the
optimal point is difficult to
identify.

LP Model Formulation - Minimization


Problem
Many LP problems involve minimizing objective such as
cost instead of maximizing profit function.
Examples:
Restaurant may wish to develop work schedule to meet
staffing needs while minimizing total number of
employees.
Hospital may want to provide its patients with a daily
meal plan that meets certain nutritional standards while
minimizing food purchase costs.

Example LP Model Formulation


Fertilizer Mix Problem
Two brands of fertilizer
available: Super-gro, Cropquick.
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?

Example LP Model Formulation


Fertilizer Mix Problem
Optimal Solution Point
Minimize Z = $6x1
+ $3x2
subject to: 2x1 + 4x2
16
4x1 + 3x2
24
x1, x2 0

Example for Everyone To Do


Graph the feasible region Consider the following
x 2y 6
constraints:
2x y 8
y x 1
y2
x, y 0

Solve the problem graphically for when the objective


function is
to maximize
and again for
when
Max
Z=
Min
Z =the problem
is to minimize:
3x+2y
3x+2y

If this was a maximization problem,


we move the objective function
away from the origin. Therefore the
optimal solution is found at point E
If this was a minimization problem,
we move the objective function
towards the origin. Therefore the
optimal solution is found at point A

Max Z = 50X + 80Y


Subject to:
X+Y = 20000
(1)
Y <= 2X
(2)
X >= 5000
(3)
Y >= 5000
(4)
X>=0, Y>=0

Note how the second constraint


is graphed. It passes through
the point (0,0) and therefore
you wont be able to plug in 0s
for X and again for Y. Youll
have to find two points that are
not situated on the axes and
connect them to form the
constraint line.

Types of Solution
1.Unique optimal point
Single corner point solution

2.Multiple optima
Objective function line lies along constraint (parallel)

3.Unboundness
Feasible region is unlimited in direction of improving objective
function

4.Infeasibility
Feasible region is unconnected or disjoint

Special Cases of LP Models


Redundant Constraints:
A constraint that does not form a unique boundary of the feasible
solution space; its removal would not alter the feasible solution
space.
It is absolutely necessary to show during formulation and graphing
to get full marks.

Example: X 10
X 12
The second constraint is redundant

Special Cases of LP Models


No Feasible Solution:
Occurs in problems where to
satisfy one of the constraints,
another constraint must be
violated.
Maximize
Z = 5x1 + 3x2
subject to: 4x1 + 2x2 8
x1 4
x2 6
x1, x2 0

Special Cases of LP Models


Multiple Optimal Solutions
The objective function is parallel
to a constraint line.
Maximize Z = $40X1 + 30X2
subject to: 1X1 + 2X2 40
4X1 + 3X2 120
X1, X2 0
Where: X1 = number of bowls
X2 = number of mugs

Special Cases of LP Models


Unbounded Solution:
Feasible region is unlimited in
direction of improving objective
function
Maximize Z = 2T + 2C
Subject to: 2T + 3C 6
T, C 0

Online Graphing Tool


An online graphing tool for you to use to check your
graph and get a sense of the feasible solution region.
However, you need to be able to solve by hand without
any online tools for the midterm and final exam. Any
graphs on the assignment are to be done by hand as
well. No marks will be awarded if you submit a computer
generated graph.
https://www.desmos.com/calculator