LINEAR PROGRAMMING:

GRAPHICAL METHODS

JOUHARA G. SAN JUAN DR. V.V. SALENTES

DBA Student Professor Lecturer
Linear Programming:
Basic Concept, Component
Linear programming (LP) is a
mathematical technique
designed to help managers in
their planning and decision
making. It is usually used in
an organization that is trying
to make most effective use of
its resources.
Managerial Applications of Linear
Programming
 A few examples of problems in
which LP has been successfully
applied are:
1. Development of a production
schedule that will satisfy future
demands for a firm’s product and at
the same time minimize total
production and inventory costs.
2. Establishment of an investment
portfolio from a variety of stocks or
bonds that will maximize a
company’s return on investment.
3. Allocation of a limited advertising budget
among radio, TV, and newspaper spots in
order to maximize advertising effectiveness.

4. Determination of a distribution system

that will minimize total shipping cost from
several warehouses to various market
locations.

5. Selection of the product mix in a factory

to make best use of machine and man hours
available while maximizing the firm’s profit.
Methods of Linear Programming
GraphicalMethod
Simplex Method
Graphical Method- Linear Programming
 is used to solve problems by
finding the highest or lowest point of
intersection between the objective
function line and the feasible region
on a graph.
 This process can be broken down
into 7 simple steps explained below.
7 Steps in Graphical Method of
Linear Programming
 Step 1 Define Constraints
 Step 2 Define the Objective Function
 Step 3 Plot the constraints on a
graph paper
 Step 4 Highlight the feasible region
on the graph
 Step 5 Plot the objective function on
the graph
 Step 6 Find the optimum point
 Step 7 Find the coordinates of the
optimum point
EXAMPLE
Bob, a farmer, is wondering which crops he
should plant in the upcoming season.
He can grow wheat and barley on his 4000
acres of farmland.
Bob uses only organic fertilizers on his farm.
He estimates that a maximum of 10 Metric
Tons of organic fertilizers could be procured for
the upcoming season.
Bob is confused regarding which crop (or
combination of crops) to grow in order to maximize
his income because although wheat yields a
relatively higher contribution, growing barley
requires relatively less land and fertilizers compared
to wheat.
Comparison of wheat and barley is as follows:

Wheat Barley

(1 Metric Ton) (1 Metric Ton)

Contribution $200 $100

Land requirement 1 acre 0.8 acre

Fertilizer
0.004 MT 0.001 MT
requirement
Objective :
Find the optimum production plan that will maximize Bob's income.
Step 1 Define Constraints

Variables used for constraints:

W = Quantity of wheat (in metric tons) to be grown

B = Quantity of barley (in metric tons) to be grown

● Land constraint 1W + 0.8B ≤ 4000

● Fertilizer constraint 0.004W + 0.001B ≤ 10
● Non-Negativity constraint W ≥ 0 and B ≥ 0
Step 2 Define the Objective Function

Objective function 200W + 100B = 400,000

Explanation
Since Bob's objective is to maximize his income, we
have used the contribution per unit of wheat and
barley in the objective function.
400,000 is just a random number that we have
used to obtain the slope of the objective function.
Any other number could also be used as the
gradient will remain the same.
Step 3 Plot the constraints on a
graph paper
Graph Working
Constraints Wheat Barley Point 1 Point 2

1(0)+0.8B
=4000
0 0.8B = 4000 (0, 5000)
Land : B = 4000 ÷ 0.8
1W + 0.8B ≤ B = 5000
4000
1W + 0.8(0) =
4000 0 (4000, 0)
W = 4000

0.004(0)+0.001
B = 10
0 0.001B = 10 (0, 10000)
B = 10 ÷ 0.001
Fertilizer : B = 10000
0.004W +
0.001B ≤ 10 0.004W +
0.001(0) = 10
0.004W = 10 0 (2500, 0)
W = 10 ÷ 0.004
W = 2500
Step 4 Highlight the feasible region on the graph

Feasible region is the

white area on the graph.
Step 5 Plot the objective function on the graph

Objective
W B Point 1 Point 2
Function

0 + 100B
=400000
0 B = 400000 ÷ (0, 4000)
100
B = 4000
200W +
100B =
400000
200W + 0 =
400000
W = 4000 ÷ 0 (2000, 0)
200
W = 2000
Step 6 Find the optimum point

Optimum Point

Optimum Point
Optimum point always lies on one
of the corner points of the feasible
region.
Step 7 Find the coordinates of the optimum point

Co-ordinates of
the optimum point are
approximately 1850 W
and 2750 B (1850,
2750).
Conclusion…
All Linear Problems has two property

1. As discussed above, it seeks to maximize or

minimize some quantity (usually profit or cost).
2. The second property that LP problems have in
common is the presence of restrictions, or
constraints, that limit the degree to which we can
pursue our objective. We want, therefore, to
maximize or minimize a quantity (the objective
function) subject to limited resources (the
constraints).

***Thank you and God Bless***