23AE2076
Industrial Management
Module 2
Linear Programming
Problem
Dr. G. Jims John Wessley
Linear Programming Problem
• Powerful Mathematical Technique for
finding the best use of the limited
resources
• Technique used for allocation of scarce
resources in an optimum manner to
obtain company’s objective (Maximize profit /
minimize cost)
Linear Programming Problem
• Example :
– Allocation of Manpower / Machine
– Scheduling production etc
• Linear stands for indicating that all the
relationships involved are linearly depended
•
Linear Programming Problem
• LPP has 3 components
– Decision Variables - Competing activities for sharing
the resources
– Objective statement (Goal) – Clearly identifiable and
measurable – Profit/ Sales maximization or cost / Time
minimization
– Constraints (Restrictions) – resources, labour, Space,
Money etc used to obtain objectives
Linear Programming Problem
• Assumptions :
– Certainty : All coefficients in objective function as well
as constraints are completely known
– Divisibility / Continuity : Solution values of decision
variables can take non-negative values only – Decimal /
integer
– Proportionality : Each decision variable in objective &
constraints is directly proportional to the value of the
variable
– Additivity : sum of profits / sum of raw materials are true
Problem - 1
• A plastic industry manufacturing packing
boxes produces 2 types of boxes, round
and square. The management is
interested in finding the number of boxes
of each type of boxes to be
manufactured to maximize the profit.
Problem - 1
• The information available are :
Profit per round box Rs. 140
Profit per square box Rs. 160
Raw material available per day 1200 kg
Manpower (Machine operators) available per day 43 Persons
Machine hours available for two types of boxes 105 Hours
Raw material required to produce round box 6 kg/box
Raw material required to produce square box 12 kg/box
Labour hours required for round box 3 Person/box
Labour hours required for square box 4 Person/box
Machine hours required to produce round box 2 hours
Machine hours required to produce square box 3 hours
Problem - 1
• Solution :
1) Decision variables
Round boxes & Square boxes
X1 = Number of round boxes produced per day
X2 = Number of square boxes produced per day
Problem - 1
2) Objective Function
Maximize the profit
Profit a linear function
Relate profit with the decision variables
to form the objective function
Profit per round box
Profit Z = 140 X1 + 160 X2
Profit per Square box
X1 = Number of round boxes produced per day
X2 = Number of square boxes produced per day
Problem - 1
3) Constraints
• Raw material constraint
• Man power constraint
• Machine hours constraint
Problem - 1
3) Constraints
• Raw material constraint
Amount of Raw material for round box
6 X1 + 12 X2 1200 Max Raw material
available
• Man power constraint Amount of Raw material for square box
3 X1 + 4 X2 43
• Machine hours constraint Non-negative
constraints
2 X1 + 3 X2 105 X1 0
X2 0
Problem - 1
The linear programming model is
Maximize Profit Z = 140 X1 + 160 X2
Subject to
6 X1 + 12 X2 1200
3 X1 + 4 X2 43
2 X1 + 3 X2 105
X1 0 and X2 0
Linear Programming Problem
Note :
• LPP may have an objective function that
may have to be minimized – Inequalities
will be
• Maximize -
• Sometimes constraints may be =
Problem - 2
• A company wants to produce 3 new
products P. Q and R along with the
existing products. Company finds that
the machines Lathe, Drilling and Slotting
have the excess times to accommodate
the 3 new products.
Problem - 2
Machine Available Time per Month
Lathe 300 hours
Drilling Machine 200 Hours
Slotting Machine 150 Hours
• The time required for each unit of
products is
Product Machine
Lathe Drilling Slotting
P (hours) 5 3 2
Q (hours) - 2 4
R (hours) 3 - 2
Problem - 2
• Profit details per product is estimated as
Product P Q R
Profit (Per unit) 15 20 18
• Formulate a Linear Programming model
to determine the optimal product mix
Problem - 2
• Solution :
1) Decision variables
Number of Units of P, Q and R
X1 = Number of units of product P to be produced per month
X2 = Number of units of product Q to be produced per month
X3 = Number of units of product R to be produced per month
Problem - 2
2) Objective Function
Maximize the profit Profit per unit of product R
Profit Z = 15 X1 + 20 X2 + 18 X3
Profit per unit of product P Profit per unit of product Q
X1 = Number of units of product P to be produced per month
X2 = Number of units of product Q to be produced per month
X3 = Number of units of product R to be produced per month
Problem - 2
3) Constraints
• Machine hour constraint
1) Lathe : 5 X1 + 0 X2 + 3 X3 300
2) Drilling : 3 X1 + 2 X2 + 0 X3 200
3) Slotting : 2 X1 + 4 X2 + 2 X3 150
Non-negative constraints
X1 0 , X2 0 , X3 0
Problem - 2
The linear programming model is
Maximize Profit Z = 15 X1 + 20 X2 + 18 X3
Subject to
5 X1 + 0 X2 + 3 X3 300
3 X1 + 2 X2 + 0 X3 200
2 X1 + 4 X2 + 2 X3 150
X1 0 , X2 0 , and X3 0
Problem - 3
• A company has 3 operational departments, Weaving,
Processing and Packing with a capacity to produce 3
different types of clothes namely Suiting, shirting and
woolen yielding a profit of Rs. 2, Rs. 4 and Rs. 3 per meter
respectively. One meter of suiting requires 3 minutes of
weaving, 2 minutes of processing and 1 minute of packing.
One meter of shirting requires 4 minutes of weaving, 1
minute of processing and 3 minutes of packing. One meter
of wollen requires 3 minutes in each department. In a
week, the run time of each department is 60, 40 and 80
hours for weaving, processing and packing respectively.
• Formulate the LPP to find the product mix to maximize the
profit.
