Formulation of LPP
OR by Soumitra Chakraborty
Steps in Developing a Linear
Programming (LP) Model
1) Formulation
2) Solution
3) Interpretation and Sensitivity Analysis
Properties of LP Models
1) Seek to minimize or maximize
2) Include “constraints” or limitations
3) There must be alternatives available
4) All equations are linear
Diet problem
      • Vitamin-A and Vitamin B are found in food-1 and food-2.
      • One unit of food-1 contains 5 unit of Vitamin A and 2 units
        of Vitamin B.
      • One unit of food-2 contains 6 unit of Vitamin A and 3 units
        of Vitamin B.
      • The minimum daily requirement of a person is 60 units of
        Vitamin A and 80 units of Vitamin B.
      • The cost per unit of food-1 is Rs. 5/- and one unit of food-2
        is Rs. 6/-.
      • Find the minimum cost of the mixture(food-1 & food-2)
        which meets the daily minimum requirements of vitamns.
                            OR by Soumitra Chakraborty
Decision Variables:
   X1 = Units of food-1
   X2 = Units of food-2
Objective Function: Maximize Profit
   Minimize Z=5X1 + 6X2
Constraints:
• Vitamin A constraint
    5X1 + 6 X2 < 60 (units)
• Vitamin B Constraint
    2X1 + 3X2 < 80 (units)
Nonnegativity:
Cannot make a negative number of chairs or tables
        X1 > 0
        X1 > 0
Model Summary
    Min Z=5 X1 + 6 X2          (cost)
Subject to the constraints:
        5 X1 + 6 X2 < 60 (Vitamin A constraint)
        3 X1 + 2 X2 < 12 (Vitamin B constraint)
        X1 , X2 > 0 (non negativity constraint)
PROBLEM DEFINITION:
BEAVER CREEK MAXIMIZATION PROBLEM
 • Product mix problem - Beaver Creek Pottery Company
 • How many bowls and mugs should be produced to
   maximize profits given labor and materials constraints?
 • Product resource requirements and unit profit:
PROBLEM DEFINITION:
BEAVER CREEK MAXIMIZATION
PROBLEM
 • Product mix problem - Beaver Creek Pottery Company
 • How many bowls and mugs should be produced to
   maximize profits given labor and materials constraints?
 • Product resource requirements and unit profit:
  PROBLEM DEFINITION:
  BEAVER CREEK MAXIMIZATION PROBLEM
Resource           40 hrs of labor per day
Availability:      120 lbs of clay
Decision Variables x1 = number of bowls to produce per day
          x2 = number of mugs to produce per day
Objective         Maximize Z = $40x1 + $50x2
Function:       Where Z = profit per day
Resource           1x1 + 2x2  40 hours of labor
Constraints:       4x1 + 3x2  120 pounds of clay
Non-Negativity x1  0; x2  0
Constraints:
PROBLEM DEFINITION:
BEAVER CREEK MAXIMIZATION PROBLEM
Complete Linear Programming Model:
Maximize Z = $40x1 + $50x2
subject to:   1x1 + 2x2  40
                4x1 + 3x2  120
               x1, x2  0
PROBLEM DEFINITION:
BEAVER CREEK MAXIMIZATION PROBLEM
 A feasible solution does not violate any of the
 constraints:
   Example x1 = 5 bowls
             x2 = 10 mugs
             Z = $40x1 + $50x2 = $700
   Labor constraint check:
     1(5) + 2(10) = 25 < 40 hours, within constraint
   Clay constraint check:
     4(5) + 3(10) = 50 < 120 pounds, within constraint
INFEASIBLE SOLUTIONS:
BEAVER CREEK EXAMPLE
An infeasible solution violates at least one of the
constraints:
Example x1 = 10 bowls
         x2 = 20 mugs
         Z = $1400
Labor constraint check:
    1(10) + 2(20) = 50 > 40 hours, violates the constraint
    The set of all points that satisfy all the constraints
    of the model is called
a
                 FEASIBLE REGION
       Production Problem
• A manufacturing company is engaged in producing three
  types of products: A,B,C. The production department
  produces, each day, component sufficient to make 50
  units of A,25 units of B and 30 units of C. The
  management confronted with the problem of optimizing
  the daily production of the products in the assembly
  department, where only 100 man-hours are available.
  The following information is available:
   Type of Product   Profit per unit   Assembly time per product per unit
   A                 12                0.8 hrs
   B                 20                1.7 hrs
   C                 45                2.5 hrs
• The daily order commitments are 20 units for A and total
  of 15 units of product BOR&   C. Formulate the problem.
                            by Soumitra Chakraborty
      Production Problem
• A firm produces three products A,B & C .It uses two types
  of raw materials I & II of which 5000 & 7000 units
  respectively is available. The raw material requirement are
  given below.       A          B        C
         I         3          4          5
         II        5          3          5
• The labour time of each unit of A is twice that of B and
  three times that of C. The entire labour force of the firm
  can produce the equivalent of 3000 units . The minimum
  demand of the product is 600,650 & 500 respectively.
• Profit per unit of A,B & C are 50,50 & 80 respectively.
• Formulate the LPP problem
                          OR by Soumitra Chakraborty
      Production Problem
• A pharmaceutical company has 100 kgs of A,180 Kgs of B
  and120 kgs of C available per month. They can use these
  materials to make three products namely 5-10-5,5-5-10
  and 20-5-10 where the no. in each case represents the
  percentage by weight of A,B and C respectively in each of
  the products.
• Cost of raw materials are
                Ingredients           Cost per kg(Rs.)
                A                     80
                B                     20
                C                     50
                Inert ingredients     20
• Selling price of the products are Rs. 40.50,Rs.43 and Rs.45
  per Kg. Capacity restriction for product 5-10-5 is 30 kgs.
• Formulate the problem,
                              OR by Soumitra Chakraborty
Decision Variables:
   X1 = Units of food-1
   X2 = Units of food-2
Objective Function: Maximize Profit
   Minimize Z=5X1 + 6X2
Constraints:
• Vitamin A constraint
    5X1 + 6 X2 < 60 (units)
• Vitamin B Constraint
    2X1 + 3X2 < 80 (units)
Nonnegativity:
Cannot make a negative number of chairs or tables
        X1 > 0
        X1 > 0
Model Summary
    Min Z=5 X1 + 6 X2          (cost)
Subject to the constraints:
        5 X1 + 6 X2 < 60 (Vitamin A constraint)
        3 X1 + 2 X2 < 12 (Vitamin B constraint)
        X1 , X2 > 0 (non negativity constraint)