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LP Model for Blue Ridge Hot Tubs

The document discusses optimization problems and linear programming (LP), including formulating LP models with multiple examples. It explains the general form of an optimization problem and a LP problem specifically. Steps are provided for formulating an LP model, including understanding the problem, identifying decision variables, stating the objective function and constraints, and identifying bounds on variables.

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riya lakhotia
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124 views14 pages

LP Model for Blue Ridge Hot Tubs

The document discusses optimization problems and linear programming (LP), including formulating LP models with multiple examples. It explains the general form of an optimization problem and a LP problem specifically. Steps are provided for formulating an LP model, including understanding the problem, identifying decision variables, stating the objective function and constraints, and identifying bounds on variables.

Uploaded by

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

Session 02

•Expressing optimization problems mathematically

•Formulating LP Models

•Blue Ridge Example


Introduction to Optimization
and Linear Programming
Introduction to Optimization

• We all face decision about how to use limited


resources such as:

• Oil in the earth

• Land for dumps

• Time

• Money

• Workers
• MP is a field of management science that
Mathematical
finds the optimal, or most efficient, way of
Programming...
using limited resources to achieve the
objectives of an individual of a business.

• a.k.a. Optimization
Determining Product Manufacturing
Mix
Applications of
Optimization

Routing and Logistics Financial Planning


Decisions

Characteristics
of
Constraints
Optimization
Problems

Objectives
MAX (or MIN): f0(X1, X2, …, Xn)
Subject to: f1(X1, X2, …, Xn)<=b1
:
General fk(X1, X2, …, Xn)>=bk
Form of an :
Optimization fm(X1, X2, …, Xn)=bm
Problem
Note: If all the functions in an optimization are
linear, the problem is a Linear Programming
(LP) problem
MAX (or MIN): c1X1 + c2X2 + … + cnXn
Subject to: a11X1 + a12X2 + … + a1nXn <= b1
Linear
:
Programming ak1X1 + ak2X2 + … + aknXn >=bk
(LP) Problems :
am1X1 + am2X2 + … + amnXn = bm
Aqua-Spa Hydro-Lux
Pumps 1 1
Labor 9 hours 6 hours
Tubing 12 feet 16 feet
Unit Profit $350 $300
An Example • Blue Ridge Hot Tubs produces two types of hot tubs:
LP Problem Aqua-Spas & Hydro-Luxes.

There are 200 pumps, 1566 hours of labor,


and 2880 feet of tubing available.
1. Understand the problem.

2. Identify the decision variables

5 Steps In X1=number of Aqua-Spas to produce


Formulating X2=number of Hydro-Luxes to produce
LP Models: 3. State the objective function as a linear
combination of the decision variables.

MAX: 350X1 + 300X2


4. State the constraints as linear combinations of
the decision variables.

1X1 + 1X2 <= 200 } pumps


5 Steps In 9X1 + 6X2 <= 1566 } labor
Formulating 12X1 + 16X2 <= 2880 } tubing
LP Models 5. Identify any upper or lower bounds on the
(continued) decision variables.

X1 >= 0

X2 >= 0
MAX: 350X1 + 300X2

S.T.: 1X1 + 1X2 <= 200

LP Model for 9X1 + 6X2 <= 1566


Blue Ridge 12X1 + 16X2 <= 2880
Hot Tubs
X1 >= 0

X2 >= 0
• Idea: Each Aqua-Spa (X1) generates the highest
unit profit ($350), so let’s make as many of them
as possible!
• How many would that be?
Solving LP • Let X2 = 0
• 1st constraint: 1X1 <= 200
Problems: • 2nd constraint: 9X1 <=1566 or X1 <=174
An Intuitive • 3rd constraint: 12X1 <= 2880 or X1 <= 240
• If X2=0, the maximum value of X1 is 174 and the
Approach total profit is $350*174 + $300*0 = $60,900
• This solution is feasible, but is it optimal?
• No!
• The constraints of an LP problem defines
its feasible region.
Solving LP
• The best point in the feasible region is the
Problems:
optimal solution to the problem.
A Graphical
Approach • For LP problems with 2 variables, it is easy
to plot the feasible region and find the
optimal solution.

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