Programare Liniara

Batch Planning and Resources Allocation
14x2=28C, 14x1=14L
Conf.dr.ing. Virginia Ecaterina Oltean
Lecture 4
Part I. Generalities concerning mathematical models of economic processes
2. Special types of mathematical programming models – some interpreted examples. First LP theoretical results
 A review of the basic models and results in Lecture 2 and 3

 Linear production models
 A brief discussion concerning the second linear production model in previous homework as an introduction
into
 Price equilibrium theorem and economic interpretation through examples
Historical facts about of LP:

 “Linear programming”: the term came into being about 1947-1948
Danzig G.B.: “Programming in a Linear Structure”, Econometrica, vol.17, p.73-74, 1949
 The DIET problem – Stiegler G.J.: „The cost of subsistence“, J. Farm. Econ., vol.27, p.303-314, 1945.
 The TRANSPORTATION problem: Hitchcock, F.L.: “Distribution of a Product from several sources to
numerous localities”, J.Math.Phys., vol.20, p.214-215, 1941.
 The DUALITY THEOREM – formulated and first proof by John von Neumann (1947), proof completed by
Gale, Kuhn and Tucker, in:
Gale D., H.W.-Kuhn and A.W. Tucker: “On Symmetric Games”, in
Kuhn and Tucker: “Linear Programming and Theory of Games” in
Koopmans T.C., editor: “Activity Analysis of Production and Allocation”, John
Wiley & Sons, New-York, 1951.
 The Equilibrium THEOREM – due to Goldman and Tucker
_________________________________________________________________________________________________________________________
Conf. V.E. Oltean /BPRA. Part I- Generalities. 2. Special types of models. First LP theoretical results (continuation) – lecture 4 2/13
I. A brief reminder of Lecture 2 and 3
1. The DIET problem (example 1 in lecture 2)
PRIMAL diet problem is: minimize diet cost DUAL diet problem is: maximize the income from
selling nutrients in concentrated form
P : min c T x D : max λ T b
Ax  b, x  0 AT λ  c, λ  0
f ( x )  c T x the cost of the diet λ  (1  2   m )T - prices of nutrients

x  ( x1 x 2  x n ) T - food quantities called diet . COMPETITIVE PRICES : they “compete” with the
food costs
b  (b1 b2  bm ) T - minimal amount of nutrients.
c  (c1 c 2  c n ) T - unit food costs
_________________________________________________________________________________________________________________________
2. Theory
Consider the LP problem and its dual:
P : max c T x D : min λ T b
Ax  b, x  0 AT λ  c , λ  0
n
The feasible set of P: X  { x  R  | Ax  b} m T
The feasible set of D: Y  {λ  R  | A λ  c}
 x  X is a feasible solution of P. Denote x*  X the optimal solution of P. Similarly, λ * is optimal for D.
 P is feasible if x feasible, i.e. if X   .
Lema: x  X , λ  Y  c T x  λT Ax  λT b . 
T T
Theorem 1 (necessity for optimality): If x  X , λ  Y s.t. c x  λ b  x  x * (P) and λ  λ * (D) .
Theorem 2 of DUALITY (sufficiency):

T T
If X and Y are non-empty  x * (P) and λ * (D) optimal and c x*  ( λ*) b .
If either P or D is NOT feasible  neither P nor D has an optimal solution.

_________________________________________________________________________________________________________________________
3. The Transportation problem (Example 2 in Lecture 3)
PLANTS MARKETS
a1 P1 M1 b1
… shipping cost
cij …
ai Pi xjj Mj bj
… units …
am Pm
supplies Mn bn
demands
Shipping Cost minimization (manufacturer) transportation profit maximization (transp.comp.)

n m
 n m 
P: min   cij xij D: max  ' j b j    i a i 
i 1 j 1  j 1 
 i 1 
m '
 xij  b j , j  1: n  j   i  cij , i  1 : m , j  1 : n
i 1
 i , ' j  R  , i  1 : m , j  1 : n
n
  xij  a i , i  1 : m
j 1
xij  R  , i  1 : m , j  1 : n
_________________________________________________________________________________________________________________________
A very simple example of a transportation problem and its economic significance
Consider the transportation problem with one plant and 1) The problem can be put in the LP form:
two markets. P : min( c11 x11  c12 x12 ) subject to: x11  b1 ,
c11  1, x11  ? M1 b1=1 x12  b2 and ( x11  x12 )  a1 , x11 , x12  0 .
'
1  3 It is easy to put the problem into the form
P : min c T x
P1
c12  2 , x12  ? Ax  b, x  0
a1=4, 1  2 and, using the geometric approach, to solve it. Show
that the optimal solution is
M2 b2=3 *
x*  [ x11 * T
x12 ]  [1 3] . Hence, the optimal
'2  4 shipping cost is P( x*)  7 (money units).
2) It is easy to check that the specified dual prices
are feasible
3) Interpretation of duality:
Step.1.The Transp.Comp. buys from the Producer the product quantity a1  4 at a unit price 1  2 , hence
the Producer receives from the Transp.Comp. the amount 2  4  8 (money units).
Step 2. The Transp.Comp. delivers the product to the two markets, supporting the shipping costs.
Step 3. The Transp.Comp. has to retrieve the expenses, by selling to the Producer the product back, at the
' '
market prices, so the Producer pays to the Transp.Comp. the amount 1b1   2 b2  3  12  15 (money
units), with a profit for the Transp.Comp.
'1b1  '2 b2  1a1  7 (money units), exactly the shipping cost. So, at optimality, the costs equal the
profit.
4) What happens if '2  3 ?
_________________________________________________________________________________________________________________________
Example 3. Linear production models as input-output models. Introducing static Leontief models
Basic definitions. (Pay attention to dimensions in the algebraic relations !)
 A linear production model. Consider a production system (a factory, for example) in which
n goods, G1 , …, G n are involved (as inputs or as outputs) by means of
m linear processes or activities P1 , …, Pm .
 An activity Pi involving n goods, G j , j  1 : n , is described by a set of n numbers a ij , j  1 : n , such
that:
G j is INPUT to Pi if aij  0 and
G j is OUTPUT to Pi if aij  0 .
 The number a ij is the amount of G j produced (or consumed) when the activity Pi is operated at unit
level.
Remark. The assumption of linearity is a rather severe restriction, meaning that multiplying all ingredients (i.e.
unit amounts at unit level a ij ) by any constant, multiplies the total amount of corresponding goods by the same
constant.

 A linear production model P involving n goods consists of a set of activities and is described by the
production matrix
G1 G 2  G n
P1 a11 a12 a1n
P2 a 21 a 22 a 2 n or A  (aij )1i m, (1)
1 j  n
 
Pm a m1 a m2 a mn
_________________________________________________________________________________________________________________________
 An activity Pi is operated at level or intensity x i if its inputs and outputs are given by
ai1 xi , ai 2 xi , …, ain xi
 A production schedule for P is defined by m nonnegative intensities x  ( x1 x 2  x m ) T .

 The total amount of G j produced is a1 j x1  a 2 j x 2    a mj x m . If this quantity is negative, then G j
is consumed (i.e. it is a resource).
____________________________________________________________________________
_________________________________________________________________________________________________________________________
3.1Production to meet given demand at minimum cost
A linear production model (1) is required to produce at least b j units of G j , j  1 : n .
The process Pi is operated at unit level with the cost c i , i  1 : m . In view of linearity, the cost of
operating Pi at level x i is ci xi .
Denote b  R n the vector of demands and c  R m the vector of unitary costs of activities.
Problem. Choose o production schedule x  R m , which will satisfy the demands and minimize the TOTAL
cost,
P : min c T x
(2)
T
A x  b, x  0
Economic interpretation.
Recall that aij  0 if G j is a resource for (or consumed by ) Pi or
aij  0 if G j is produced by Pi .
m
Similarly, a negative demand b j  0 is economically supply and  aij xi  b j means now that we must
i 1
NOT consume more than  b j .
Hence, both supply and demands are taken into account in the model.

Testing the feasibility is not simple: technologically, it may NOT be possible to satisfy given demands
with given resources: mathematically, the constraints in (2) may be any system of linear inequalities,
which may or not have solution. Details are given later !
_________________________________________________________________________________________________________________________
SUMMING UP:
PRODUCTION MATRIX
Modelling CONVENTION:
goods for the amounts a ij of G j for Pi
G1  Gj  Gn
P1 a11  a1n aij  0
Gj Pi
 
activities resource aij  0
Pi ai1  aij  ain Pi Gj
  product
Pm a m1  a mn
i.e. A  (aij )1i m,
1 j  n
 A production schedule : x  ( x1 x 2  x m ) T intensities (activity levels) at which Pi are operated

and
T
 The activities Pi are operated with unit costs c  (c1 c2  cm ) (incomes)
End of C4
_________________________________________________________________________________________________________________________
3.2Production to maximize income from given resources
In a linear production model (1)
G1 G2  Gn
P1 a11 a12 a1n
P2 a 21 a 22 a 2 n or A  (aij )1i m, (1)
1 j  n
 
Pm a m1 a m2 a mn
the activity Pi has associated an income c i , i  1 : m , (obtained from selling the outputs of Pi , for example).
There is a given fixed supply b j of G j , j  1 : n .
Denote b  R n the vector of supplies and c  R m the vector of incomes from activities.
Problem. Choose o production schedule x  R m  , which will maximize the total income without exceeding
GIVEN supplies
P : max c T x
(3)
T
 A x  b, x  0
Economic interpretation.
The reason for the negative sign in (3) is that supplies are taken here as positive and the amount of G j
consumed in production is NOT to exceed b j .
_________________________________________________________________________________________________________________________
Problem: Production to maximize income from given resources and its dual (continuation)
PRIMAL problem (ACTOR: the PRODUCER) DUAL problem (ACTOR: the COMPETITOR)
T T
P: max c x D: min λ b (1)
T
 A x  b, x  0  Aλ  c, λ  0 (2)
n
c  R m - incomes from activities  λ  R - prices paid for G j , j  1 : n ,
b  R n - given fixed supplies of goods G j , j  1 : n
 Convention: the minus sign is taken because according to the scenario below:
supplies are taken as positive, and wanted not to
exceed the maximal supplies b
Scenario (D):
 A COMPETITOR wants to buy out the PRODUCER
 He offers to pay  j for G j , j  1 : n , such that:
 (a11 1    a1n  n )  c1
 “the amount of money offered is at least as much as the

 Aλ  c    PRODUCER could obtain from ANY production schedule
  ( a i1  1    a in  n )  c i x”

_________________________________________________________________________________________________________________________
The Arguments of the COMPETITOR to convince the PRODUCER to sell out his business
A. “If you (i.e. the PRODUCER) operate each activity Pi at the level xi  0 , respectively, i  1 : m ,
the return will be
cT x (3)
where, because of limited supplies (i.e. x is feasible ),
 AT x  b . (4)
B. If you (i.e. the PRODUCER) sell to me (i.e. to the COMPETITOR), your return will be
λT b (5)
and
( 4) ( 2)
 
λ b  λ ( A x )  x ( Aλ)  x T c  c

T T T T T
x
( 5) ( 3)
so you will be at least as well off.”
_________________________________________________________________________________________________________________________

Programare Liniara

Încărcat de

Informații document

Titlu original

Drepturi de autor

Formate disponibile

Partajați acest document

Partajați sau inserați document

Opțiuni de partajare

Vi se pare util acest document?

Este necorespunzător acest conținut?

Drepturi de autor:

Formate disponibile

Programare Liniara

Încărcat de

Drepturi de autor:

Formate disponibile

Batch Planning and Resources Allocation

Conf.dr.ing. Virginia Ecaterina Oltean

 A review of the basic models and results in Lecture 2 and 3

Historical facts about of LP:

f ( x )  c T x the cost of the diet λ  (1  2   m )T - prices of nutrients

Theorem 2 of DUALITY (sufficiency):

Shipping Cost minimization (manufacturer) transportation profit maximization (transp.comp.)

 A production schedule for P is defined by m nonnegative intensities x  ( x1 x 2  x m ) T .

 A production schedule : x  ( x1 x 2  x m ) T intensities (activity levels) at which Pi are operated

where, because of limited supplies (i.e. x is feasible ),

S-ar putea să vă placă și