Linear Programming (LP) - Expanded:
Linear programming is a powerful optimization technique that finds the best possible
solution (maximum or minimum) to a problem where the objective function and
constraints are linear. It's used to allocate limited resources effectively.
Components:
o Objective Function: A linear equation that represents the quantity to be
optimized (e.g., profit, cost).
o Decision Variables: Variables that represent the quantities to be determined (e.g.,
production levels, allocation amounts).
o Constraints: Linear inequalities or equalities that represent limitations or
requirements (e.g., resource availability, demand).
o Feasible Region: The set of all possible solutions that satisfy the constraints.
Simplex Method: A classic algorithm that iteratively moves from one corner point of the
feasible region to another, improving the objective function value until the optimal
solution is found.
Dual Problem: Each LP problem has a corresponding dual problem, which provides
insights into the sensitivity of the optimal solution to changes in the constraints.
Applications: Production planning, transportation, resource allocation, portfolio
optimization, and scheduling.
Example: A company produces tables and chairs. Each table requires 4 hours of labor
and 2 units of wood, while each chair requires 3 hours of labor and 1 unit of wood. The
company has 240 hours of labor and 100 units of wood available. LP can determine the
optimal number of tables and chairs to produce to maximize profit.
