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Formulation of Linear Program Model: Management Science

This document provides information on formulating a linear programming model. It defines key components of a linear program including decision variables, objective function, and constraints. It also outlines the steps to formulate a linear program which are: 1) define decision variables, 2) identify the objective function, 3) list constraints, and 4) define the constraints using variables. The document includes two examples showing how to apply these steps to formulate linear programs for maximizing profit and minimizing cost given various production constraints.

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Marjorie Nepomuceno
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357 views

Formulation of Linear Program Model: Management Science

This document provides information on formulating a linear programming model. It defines key components of a linear program including decision variables, objective function, and constraints. It also outlines the steps to formulate a linear program which are: 1) define decision variables, 2) identify the objective function, 3) list constraints, and 4) define the constraints using variables. The document includes two examples showing how to apply these steps to formulate linear programs for maximizing profit and minimizing cost given various production constraints.

Uploaded by

Marjorie Nepomuceno
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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MODULE

3 ◦ Management Science
MODULE G ALS FLEX Course Material

Formulation of Linear
Program Model

College of Business and Accountancy


LESSON
#3
LEARNING
OUTC MES
Formulation of
Understand the concept of
linear programming. Linear Program
Formulate a linear program
with accuracy and precision.
What is management science?
Management Science
is a broad interdisciplinary study of solving problems and decision making in human,
organizations, with strong links to management, economics, business, engineering,
management consulting, and other fields.

Management Science helps businesses to achieve goals using various scientific methods.
One of the scientific methods is Linear programming.
What is linear programming ?
Linear Programming
a technique that helps in attaining the optimum use of productive resources. It also
indicates how a decision - maker can employ his productive factors effectively by
selecting and distributing (allocating) these resources.
What is a linear programming model?
Linear programming model
is an algebraic description of the objective function to be maximized or
minimized and the constraints to be satisfied by the variables in order to
achieve the best outcome (such as maximum profit or lowest cost), in
a mathematical model whose requirements are represented by linear
relationships.
Properties of the linear programming model:
1. A relationship among decision variables must be linear in nature.
2. A model must have an objective function.
3. Resource constraints are essential.
4. A model must have a non-negativity constraint.
What are the components of a linear program?

Constraints

Objective Function
Decision variables
Major components of a Linear Program
1. Decision variables – are those variables whose values can vary over the feasible set of
alternatives in order to either increase or decrease the value of the objective function.
( Example x, and y represent 2 types of products).
2. Objective function - is the real-valued function whose value is to be either
minimized or maximized over the set of feasible alternatives.
Note: The objective in most cases will be either to maximize resources
or profits or, to minimize the cost or time.
3. Constraints - are sets of functional equalities or inequalities that represent resources,
time, technological, or other economic restrictions on what numerical values can be
assigned to the decision variables.
Steps in formulating a linear program
◦ 1. Define the specific decision variable.
◦ 2. Identify the objective function.
◦ 3. List down the constraints that affect the decision.
Types of constraints
a. Capacity constraints
These are limitations on the amount of equipment, space, warehouses and etc.
b. Market constraints
These are limitations on the market size or the number of potential buyers.
c. Availability constraints
These are limitations on the available raw materials, labour, funds, or
other resources.
d. Quality or Blending constraints
These are limitations on the mixes of ingredients, usually defining the
output of products.
e. Production Technology or Material Balance Constraints
These are limitations that define the output of some processes as the
function of inputs, often loss or scrap.
4. Define the specific constraints using the decision variables.
Application:
Illustrative Example:
Ideal home Furniture Company manufactures two products: tables and chairs, which
must be processed through assembly and finishing departments. Assembly department is
available for 60 hours in every production period while the finishing department is
available for 48 hours of work. Manufacturing one table requires 4 hours in the assembly
and 2 hours in the finishing. Each chair requires 2 hours in the assembly and 4 hours in the
finishing. The profit per table is P1,800 and P1,000 for each chair. Formulate a linear
program.
Solution:
Step1: Let x be the number of tables to manufacture for every production period.
Let y be the number of chairs to manufacture for every production period.

Step 2: The objective function is to Maximize profit = 1,800 x + 1,000 y

Step 3: Assembly is available 60 hours for every production period.


Finishing is available 48 hours for every production period
Step 4: Table (x) Chair (y)) Time
Availability
Assembly 4x 2y 60 hours
Finishing 2x 4y 48 hours
Profit/unit P1,800 (x) P1,000(y)

Step 5. Linear Program:


Maximize: P1,800x + P1,000y
Subject to: 4x + 2y 60 hours. What relational symbol (≤, ≥ , =) will
be used here?
2x + 4y 48 hours What relational symbol (≤, ≥ , =) will be
used here?
x, y ≥ 0
The linear program is:
Maximize: Z = P1,800x + P1,000y Objective Function
Subject to: 4x + 2y ≤ 60 hours Explicit Constraints
2x + 4y ≤ 48 hours
x, y ≥ 0 Implicit Constraints
Note:
Explicit constraints - are those that are explicitly stated in a given problem.
Implicit constraints - are those constraints that are part of the natural
description of the phenomenon under study.
These are typically bound constraints on the decision variables.
For example: The available time in every production, and the number of
units to produce are necessarily non negative
◦ Application:
Illustrative Example 2.
A veterinarian mixes two brands of animal supplements; Brand X and Brand Y; Each unit of brand X costs
P200 and contains 40 grams of fat, 20 grams of protein, and 1,600 calories. Each unit of brand Y costs P180
and contains 60 grams of fat, 60 grams of protein and 1,200 calories. Suppose that the veterinarian wants
each unit of the final product to yield at most 360 grams of fat, at least 240 grams of protein and at most
9,600 calories. Formulate the linear program?
Solution:
Step1: Let x be the number of brand X to produce for every production period.
Let y be the number of brand Y to produce for every production period.
Step 2: The objective function is to Minimize Cost = 200 x + 180 y

Step 3: Final product to yield at most 360 grams of fat


Final product to yield at least 240 grams of protein
Final product to yield at most 9,600 calories
Step 4: Brand X Brand Y Yield of final
product
Fat 40x 60y 360 grams
Protein 20x 60y 240 grams
Calories 1,600x 1,200y 9,600 cal.
Cost/gram P200x P180y

Step 5. Linear Program:


Minimize: C = P200x + P180y
Subject to:
40x + 60y 360 grams What relational symbol (≤, ≥ , =) will be used?
20x + 60y 240 grams What relational symbol (≤, ≥ , =) will be used?
1,600x + 1,200y 9,600calories What relational symbol (≤, ≥ , =) will be used?
x, y ≥ 0
The linear program is:
Minimize: C = P200x + P180y Objective Function
Subject to: 40x + 60y ≤ 360 grams Explicit Constraints
20x + 60y ≥ 240 grams
1,600x + 1,200y ≤ 9,600 calories
x, y ≥ 0 Implicit Constraints
Note:
a. At most is less than or equal to ( ≤ ).
b. At least is greater than or equal to ( ≥ ).
Exercises:
1. A chocolate manufacturing company produces 2 types of chocolate A and B; Both the
chocolates requires milk and cocoa only. To manufacture each unit of A and B the
following quantities are required; Each unit of A requires 1 unit of milk and 3 units of
cocoa. Each unit of B requires 1 unit of milk and 2 units of cocoa. The company’s
kitchen has a total of 5 units of milk and 12 units of cocoa available for use. On each
sale the company make a profit of $6 per unit of A sold and $5 per unit of B sold.
Formulate the linear program.
2. National Steel Corporation makes two types of steel; regular and special steel. A ton of
regular steel requires 2 hours in the open-hearth furnace and 3 hours in the soaking pit; a
ton of special steel requires 2 hours in the open hearth furnace and 5 hours in the soaking
pit. The open hearth furnace is available 8 hours per day and the soaking pit is available 15
hours per day. The profit on a ton of regular steel is P40,000 and P60,000 on a ton of
special steel. Formulate the linear program.
KEEP SAFE EVERYONE
END

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