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Chapter 7

Linear Programming Models:


Graphical and Computer
Methods

To accompany
Quantitative Analysis for Management, Tenth Edition,
by Render, Stair, and Hanna
Power Point slides created by Jeff Heyl

2008 Prentice-Hall, Inc.


2009 Prentice-Hall, Inc.

Introduction
Many management decisions involve trying to

make the most effective use of limited resources


Machinery, labor, money, time, warehouse space, raw

materials

Linear programming (LP)


LP is a widely used

mathematical modeling technique designed to


help managers in planning and decision making
relative to resource allocation
Belongs to the broader field of mathematical
programming
In this sense, programming refers to modeling and
solving a problem mathematically
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Requirements of a Linear
Programming Problem
LP has been applied in many areas over the past

50 years
All LP problems have 4 properties in common
1. All problems seek to maximize or minimize some

quantity (the objective function)


function
2. The presence of restrictions or constraints that limit the
degree to which we can pursue our objective
3. There must be alternative courses of action to choose
from
4. The objective and constraints in problems must be
expressed in terms of linear equations or inequalities

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LP Properties and Assumptions


PROPERTIES OF LINEAR PROGRAMS
1. One objective function
2. One or more constraints
3. Alternative courses of action
4. Objective function and constraints are linear
ASSUMPTIONS OF LP
1. Certainty
2. Proportionality
3. Additivity
4. Divisibility
5. Nonnegative variables
Table 7.1
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Basic Assumptions of LP
We assume conditions of certainty exist and

numbers in the objective and constraints are


known with certainty and do not change during
the period being studied
We assume proportionality exists in the objective
and constraints
We assume additivity in that the total of all
activities equals the sum of the individual
activities
We assume divisibility in that solutions need not
be whole numbers
All answers or variables are nonnegative
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Formulating LP Problems
Formulating a linear program involves developing

a mathematical model to represent the managerial


problem
The steps in formulating a linear program are
1. Completely understand the managerial
problem being faced
2. Identify the objective and constraints
3. Define the decision variables
4. Use the decision variables to write
mathematical expressions for the objective
function and the constraints

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Formulating LP Problems
One of the most common LP applications is the

product mix problem


Two or more products are produced using
limited resources such as personnel, machines,
and raw materials
The profit that the firm seeks to maximize is
based on the profit contribution per unit of each
product
The company would like to determine how
many units of each product it should produce
so as to maximize overall profit given its limited
resources
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Flair Furniture Company


The Flair Furniture Company produces

inexpensive tables and chairs


Processes are similar in that both require a
certain amount of hours of carpentry work and in
the painting and varnishing department
Each table takes 4 hours of carpentry and 2 hours
of painting and varnishing
Each chair requires 3 of carpentry and 1 hour of
painting and varnishing
There are 240 hours of carpentry time available
and 100 hours of painting and varnishing
Each table yields a profit of $70 and each chair a
profit of $50
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Flair Furniture Company


The company wants to determine the best

combination of tables and chairs to produce to


reach the maximum profit
HOURS REQUIRED TO
PRODUCE 1 UNIT

DEPARTMENT

(T) TABLES

(C)
CHAIRS

AVAILABLE HOURS
THIS WEEK

Carpentry

240

Painting and varnishing

100

$70

$50

Profit per unit


Table 7.2

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Flair Furniture Company


The objective is to

Maximize profit
The constraints are
1. The hours of carpentry time used cannot
exceed 240 hours per week
2. The hours of painting and varnishing time
used cannot exceed 100 hours per week
The decision variables representing the actual
decisions we will make are
T = number of tables to be produced per week
C = number of chairs to be produced per week
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Flair Furniture Company


We create the LP objective function in terms of T

and C

Maximize profit = $70T + $50C


Develop mathematical relationships for the two
constraints
For carpentry, total time used is
(4 hours per table)(Number of tables produced)
+ (3 hours per chair)(Number of chairs produced)

We know that

Carpentry time used Carpentry time available


4T + 3C 240 (hours of carpentry time)
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Flair Furniture Company


Similarly

Painting and varnishing time used


Painting and varnishing time available
2 T + 1C 100 (hours of painting and varnishing time)
This means that each table produced
requires two hours of painting and
varnishing time
Both of these constraints restrict production

capacity and affect total profit

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Flair Furniture Company


The values for T and C must be nonnegative

T 0 (number of tables produced is greater than


or equal to 0)

C 0 (number of chairs produced is greater than


or equal to 0)

The complete problem stated mathematically

Maximize profit = $70T + $50C


subject to
4T + 3C 240
2T + 1C 100
T, C
0

(carpentry constraint)

(painting and varnishing co


(nonnegativity constraint)
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1- Example: LP Formulation
Cycle Trends is introducing two new lightweight bicycle
frames, the Deluxe and the Professional, to be made from
aluminum and steel alloys. The anticipated unit profits are $10
for the Deluxe and $15 for the Professional.
The number of pounds of each alloy needed per frame is
summarized on the table. A supplier delivers 100 pounds of the
aluminum alloy and 80 pounds of the steel alloy weekly. How
many Deluxe and Professional frames should Cycle Trends
produce each week?
Pounds of each alloy needed per frame
Deluxe
Professional

Aluminum Alloy
2
4

Steel Alloy
3
2
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2- Example: LP Formulation
Montana Wood Products manufacturers twohigh quality products, tables and chairs. Its profit is
$15 per chair and $21 per table. Weekly production is
constrained by available labor and wood. Each chair
requires 4 labor hours and 8 board feet of wood while
each table requires 3 labor hours and 12 board feet of
wood. Available wood is 2400 board feet and available
labor is 920 hours. Management also requires at least
40 tables and at least 4 chairs be produced for every
table produced. To maximize profits, how many chairs
and tables should be produced?
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3- Example: LP Formulation
The Sureset Concrete Company produces
concrete. Two ingredients in concrete are sand (costs
$6 per ton) and gravel (costs $8 per ton). Sand and
gravel together must make up exactly 75% of the
weight of the concrete. Also, no more than 40% of the
concrete can be sand and at least 30% of the concrete
be gravel. Each day 2000 tons of concrete are
produced. To minimize costs, how many tons of gravel
and sand should be purchased each day?

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4- Example: LP Formulation
A company produces two products that are processed on two
assembly lines. Assembly line 1 has 100 available hours, and
assembly line 2 has 42 available hours. Each product requires
10 hours of processing time on line 1, while on line 2 product 1
requires 7 hours and product 2 requires 3 hours. The profit for
product 1 is $6 per unit, and the profit for product 2 is $4 per
unit.
Formulate a linear programming model for this problem.

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5- Example: LP Formulation
A California grower has a 50-acre farm on which to plant
strawberries and tomatoes. The grower has available 300 hours of
labor per week and 800 tons of fertilizer, and he has contracted for
shipping space for a maximum of 26 acres' worth of strawberries
and 37 acres' worth of tomatoes. An acre of strawberries requires
10 hours of labor and 8 tons of fertilizer, whereas an acre of
tomatoes requires 3 hours of labor and 20 tons of fertilizer. The
profit from an acre of strawberries is $400, and the profit from an
acre of tomatoes is $300. The farmer wants to know the number of
acres of strawberries and tomatoes to plant to maximize profit.
Formulate a linear programming model for this problem.

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