Modelling with Linear

Programming
Introduction
• A linear program (LP) is a model of an optimization problem with a linear objective
function and linear constraints.
• A LP objective is to determine the values of decision variables that maximize or
minimize the objective function.
• A LP involving maximization with n decision variables and m constraints is
represented as follows:
max Z  c1 x1  c2 x2   cn xn
subject to a11 x1  a12 x2   a1n xn  b1
a21 x1  a22 x2   a2 n xn  b2

am1 x1  am 2 x2   amn xn  bn
x1  0, x2  0, , xn  0

• The last set of constraints, x1 ≥ 0, …., xn ≥ 0, are called nonnegativity constraints.

Example 1
• Peg and Al Fundy have a limited food budget, so Peg is trying to feed the family as
cheaply as possible. However, she still wants to make sure her family members
meet their daily nutritional requirements. Peg can buy two foods: Beef and
Potatoes. Beef sells for $5 per pound, and each pound contains 3 units of vitamin
A and 1 unit of vitamin C. Potatoes sell for $2 per pound and contains 1 unit of
each vitamin. Each day, the family needs at least 12 units of vitamin A and 6 units
of vitamin C.
Formulate the Fundy’s problem as a mathematical model.
Example 2
• Thriftem Bank is in the process of devising a loan policy that involves a maximum of $12 million. The following table
provides the pertinent data about available types of loans.

Type of loan Interest rate Bad debt %

Personal 14% 10%
Car 13% 7%
Home 12% 3%
Farm 12.5% 5%
Commercial 10% 2%

• Assume bad debt is unrecoverable (i.e., it’s lost and returns no revenue). Competition requires the bank to allocate at
least 40% of the funds to farm and commercial loans. To assist the housing industry in the region, home loans must equal
at least 50% of the personal car and home loans. Formulate an LP to assist Thriftem Bank in devising a loan policy.
Example 3
• A post office requires different number of full-time employees on different days of the week. The
number of full-time employees required on each day is as shown below. Union rules state that
each full-time employee must work five consecutive days and then receive two days off. For
example, an employee who works Tuesday to Saturday must be off Sunday and Monday. The post
office wants to meet its daily requirements using the minimum possible number of full-time
employees.
Day Number of
employees
required
Monday 17
Tuesday 13
Wednesday 15
Thursday 19
Friday 14
Saturday 16
Sunday 11
• Formulate an LP that the post office can use to decide on the number of full-time employees.
Example 4
• A cargo plane has three compartments for storing cargo: front, center and rear. These compartments
have the following limits on both weight and space:
Compartmernt Weight Capacity (tons) Space Capacity (cubic meters)
Front 10 6800
Center 16 8700
Rear 8 5300

• Furthermore, the ratio of the weight of the cargo over the compartment's weight capacity must be
equal across all compartments to maintain the balance of the plane.
• The following four cargoes are available for shipment on the next flight:
Cargo Weight (tons) Volume (cubic meters/ton) Profit ($/ton)
C1 18 480 310
C2 15 650 380
C3 23 580 350
C4 12 390 285
• Any proportion of these cargoes can be accepted. The objective is to determine how much (if any) of
each cargo C1, C2, C3 and C4 should be accepted and how to distribute each among the compartments
so that the total profit for the flight is maximized. Formulate the above problem as a linear program
Example 5
• A canning company operates two canning plants. The growers are willing to supply fresh fruits in the following amounts:
• S1: 200 ton at $11/ton, S2: 310 ton at $10/ton, S3: 420 ton at $9/ton
• Shipping costs in $ per ton are:

Plant A Plant B
S1 3 3.5
S2 2 2.5
S3 6 4

• Plant capacities and labor costs are:

Plant A Plant B
Capacity (tons) 460 560
Labor cost( per ton) $26 $21

• The canned fruits are sold at $50/ton to the distributors. The company can sell at this price all they can produce.
Example 6
• Acme Manufacturing Company has received a contract to deliver home
windows over the next 6 months. The successive demands for the six
periods are 100, 250, 190, 140, 220, and 110, respectively. Production cost
for window varies from month to month depending on labor, material, and
utility costs. Acme estimates the production cost per window over the
next 6 months to be $50, $45, $55, $48, $52, and $50, respectively. To take
advantage of the fluctuations in manufacturing cost, Acme may elect to
produce more than is needed in a given month and hold the excess units
for delivery in later months. This, however, will incur storage costs at the
rate of $8 per window per month assessed on end-of-month inventory. An
initial inventory of 25 windows is left- over from the last month.
• Develop a LP to determine an optimum production schedule for Acme.