Contents of Chapter 4

4. Introduction to Optimization [9 hrs]

MEM124 Operations Research

 Linear and Multi-objective optimization models;

 Modeling optimization problem in EXCEL;
 Building linear programing models;
 Solving linear programing models;

LECTURE #02

 Interpreting solver results and sensitivity analysis;

 Solving multi-objective models;

Introduction to Optimization (1)

 Using premium solver for linear programming

Dr. Vishnu Prasad Pandey

Master Degree Program, Purbanchal University
2014.08.07




 

Contents of this lecture


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Lecture#02: Operational Research

Optimization: Introduction

4. Introduction to Optimization

A mathematical Optimization model consists of

 Introduction

An Objective Function (OF), &

 Optimization modeling process

A set of constraints in a form of system of equations or

inequalities

 Solution of optimization models

 Building linear programing models;

It seeks to answer the question What is the best?

 Solving linear programing models;

Answer can be expressed as numerical value

Optimization models are used extensively in almost all
areas of decision-making, e.g.

 Graphical method
 Simplex method





 


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Engineering design

Physical, chemical & biological sciences

Economics

Management, financial portfolio selection
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Optimization: Modeling Procedure

Optimization Model (OM): Basic contents

Problem
formulation

1. Describe the
problem

OMs are prescriptive or normative models seeking to find

the best possible strategy for decision-makers

2. Prescribe a
solution, &

Optimization problems are made up of following basic

ingredients:

3. Control the
problem by
assessing/
updating the
optimal solution
continuously,
while changing
the parameters &
structure of the
problem





 


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Decision variables: the controllable inputs which affect

the value of the objective function

An objective function: that we want to mini/maximize

Parameters: uncontrollable inputs which may be fixed
numbers

Constraints: relations between decision variables & the
parameters

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Optimization: Solutions





 


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Optimization: Solutions

Feasible solution

Optimization problems are classified & solved according to:

A solution value for decision variables, where all the

constraints are satisfied

mathematical characteristics of the OF,

constraints, &

Most solution algorithms proceed by

controlled decision variables

first finding a feasible solution,

Linear Programming (LP) deals with: a case of optimization

problem, where both the OF & the constraints are linear in
terms of the decision variables

then seeking to improve upon it, and

finally changing the decision variables to move from one
feasible solution to another feasible solution

Multi-objective Program (MP) or Goal Program, is:

The process is repeated until the OF has reached its

maximum or minimum

where a single objective characteristic of an optimization

problem is replaced by several goals

Optimal solution:

in solving MP, one may represent some of the goals as

constraints to be satisfied, while other objectives can be
weighted to make a composite single OF

Gives the minimum or maximum result of the OF while

satisfying the constraints




 


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Linear Programming (LP): Building LP

Example#01 (same as in Lecture#1)

 The Two Mines Company own two different mines that produce an
ore which, after being crushed, is graded into three classes: high,
medium and low-grade. The company has contracted to provide a
smelting plant with 12 tons of high-grade, 8 tons of medium-grade
and 24 tons of low-grade ore per week. The two mines have
different operating characteristics as detailed below

LP is a mathematical procedure for determining optimal

allocation of scarce resources
LP deals with a class of programming problems where both
the OF & constraints are linear & all relations among the
variables corresponding to resources are linear
While building a LP model:

Mine

What are decision variables?

What are parameters?

A
B

What is the objective function?

Cost/day ('000)
180
160

Production (tons/day)
High Medium Low
6
3
4
1
1
6

What are the constraints?

If maximum operating hours/week of the mines will be 5, formulate
LP model to answer How many days per week should each mine
be operated to fulfill the smelting plant contract?




 


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Example#01: Formulation of LP





 


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Two Types of solutions are:

 x = days/week mine A is operated

Graphical

 y = days/week mine B is operated

Simplex algorithm

Objective function (to minimize the cost):

Graphical Solution Method:

 min Z = 180x + 160y

suitable for only one or two decision variables

Constraints:

provides a conceptual basis for solving large and

complex LP problems

 High: 6x + 1y >= 12
XX - parameters

Two methods for graphical solutions:

 Low: 4x + 6y >= 24

Extreme point solution method

 x <= 5; y <= 5; x,y >= 0

Iso-profit function line method





 


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Linear Programming (LP): Solving LP

Decision variables:

 Medium: 3x + 1y >= 8

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Solving LP: Extreme point solution method

Solving LP: Example#01

Coordinates of all corners (or extreme) points of feasible region

are determined and values of OF at these points are computed &
compared

Find graphical solution for a LP model formulated as below:

OF: Maximize profit function (7T + 5C) [T=Table, C=Chair]

S.T. Constraints:
 3T + 4C < 2400; 2T + 1C < 1000
 C < 450; T > 100; T, C > 0

Because: optimal solution to any LP problem always lie at one of

the corner points of feasible solution space

Steps/Procedure:

Plot each constraint on a graph paper, by considering all & are
=; and then plot the line

For each line, divide the region into 3 parts. Pick a point in either
side of the line & plug its coordinates into the constraint. If it
satisfies the condition, this side is feasible; otherwise the other side
is feasible. For equality constraints, only the points on the line are
feasible.

SOLUTION:
600

Constraint line 1
(carpentry): 3T + 4C =
2400

Throw away the sides that are NOT feasible

After all the constraints are graphed, you should have a non-empty
(convex) feasible region, unless the problem is infeasible




 


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Infeasible
> 2400 hrs

Plot graphs for each

constraints
C

Feasible
< 2400 hrs

Intercepts (for T = 0, C =
600; for T = 800, C = 0)
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Solving LP: Example#01





 


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Solving LP: Example#01

SOLUTION:

SOLUTION:

Constraint line 2
(painting): 2T + 1C =
1000

C
1000

Maximum cost for chair:

C = 450.
Minimum cost for Table:
T = 100.

Intercepts:

for T = 0, C = 1000;

for T = 500, C = 0

C
1000

600

600
450



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0




 


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500
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800 T
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Solving LP: Example#01

Solving LP: Example#01



If additional
constraints were
available, such as,
need at least 75
more chairs than
tables, then: C > T
+ 75; or C T >
75.

OF line: 7T + 5C =
Profit.

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New constraint
line would have
been added as
shown in the
graph & Optimal
point would have
been shifted to a
new point

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Solving LP: Special cases of LP





 



New optimal point

T = 300, C = 375

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T = 320
C = 360
No longer
feasible

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Solving LP: Special cases of LP

Redundant Constraints do not affect the feasible region

Alternate optimal
solution: when there are
more than one optimal
solutions

Example: If two constraints are given as X 10 & X

12, the second constraint is redundant as it is less
restrictive

C
10

All points on
Red
segment are
optimal

Example:

Infeasibility when no feasible solutions exist (there is no

feasible region)

 Maximize (2T + 2C)

Example: if X 10 & X 15

 Subject to:

T + C < 10

T < 5

0
0

C < 6

10

T, C > 0




 


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Solving LP: Special cases of LP

Class Activities: Graphical methods

Unbounded solutions:
when nothing prevents
the solution from
becoming infinitely large

1. Solve the following LP problem using Graphical method:

Objective function: Max Z = 6x1 - 4x2

Subject to:
2x1 + 4x2 4;

4x1 + 8x2 16;

Example:
 Maximize (2T + 2C)
 Subject to:

x1, x2 0

2. Solve the following LP problem using Graphical method:

Objective function: Max Z = 15x1 + 10x2

2T + 3C > 6

T, C > 0

Subject to:
0

4x1 + 6x2 360;

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3x1 180;
5x2 200 & x1, x2 0





 


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Thank you!

Thank You!!
(For enquiries: vishnu.pandey@gmail.com)





 


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