Instructional Goals:

At the end of the lesson, the students must be able to:

• Summarize the structure of a linear programming problem and
the concept of objective functions, constraints, and non –
negativity;
• Distinguish product – mix and blending problems;
• Discuss the assumptions of linear programming model;
• Identify the advantages and limitations of linear programming;
and
• Apply the graphical method for solving linear programming
problems.
What is Linear
Programming?
Linear Programming

• It is a mathematical technique for

determining the best allocation of a
company’s resources.
• It identifies the relationship among
variables in a manufacturing or
production process.
Linear Programming
• It was first used for an Air Force Project
during World War II to help manage an
efficient way of assigning soldiers,
weapons and supplies.
• At first, it was called “programming in a
linear structure” but was later shortened
to “linear programming”.
Linear Programming

• Two most common linear

programming problems are the
product – mix problem and the
blending problem.
Product – Mix Problem

• The decision maker has to solve for

which products to include and in
what quantities should be included in
the production plan that will help
achieve profit maximization.
Blending Problem

• Deals with finding the best blend

of available raw materials or
ingredients that will contribute to
cost efficiently. Also referred as
cost minimization problems.
Structure of a Linear Programming Problem
• The standard structure of an LP
problem consists of the following
components: decision variable,
objective function, constraints, and
parameters.
Decision Variable
• Refers to the mathematical
symbols that represents levels of
activity by a business.
• These are variables whose values
are to be determined.
Objective Function
• are linear mathematical relationship that
describes the objective of the firm in terms of
the decision variables. It is always consisting
of either maximizing or minimizing some
value (e.g. maximizing profit, minimizing
cost). It is a linear relationship that reflects the
objective of an operation.
Constraint
• it is a linear relationship that
represents a restriction on
decision making.
• Restrictions can be in the form of
limited resources or restrictive
guidelines.
Parameters
•These are numerical values
that are included in the
objective functions and
constraints.
Advantages of Linear Programming

1. Resources are deployed productively

and efficiently with the use of LP.
Advantages of Linear Programming

2. The approach to decision – making

is geared towards objectively. Decision
makers improve the quality of
decisions and enhance their ability to
come to more sensible conclusions.
Advantages of Linear Programming

3. The optimal use of resources is

attained by taking into account the
constraints of a production problem or
business scenario.
Advantages of Linear Programming

4. Bottlenecks are vital considerations

when making a decision.
Limitations of Linear Programming

1. The decision variables, constraints,

and objective function are not always
linearly – related to real – life
situations.
Limitations of Linear Programming

2. Decision variables do not always

result to get an integer value. To round
– off to the nearest integer might not
give an optimal solution.
Limitations of Linear Programming

3. The effects of time and uncertainty

are ignored in the LP solution.
Limitations of Linear Programming

4. Parameters in LP are assumed to be

constant, which contradicts real –
business situations.
Limitations of Linear Programming

5. An LP problem is focused on one

main objective. On the other hand,
decisions in real life are often times
characterized by multiple
incompatible objectives.
Steps in Linear Programming Model
Formulation
1. Identify the decision variables.
2. Identify the data/ information
related to the problem.
3. Define the objective function.
4. Define the constraints.
 A pottery company employs skilled artisans to produce clay
bowls and mugs with authentic design and colors. The two
primary resources used by the company are special pottery
clay and skilled labor. Given these limited resources, the
company desires to know how many bowls and mugs to
produce each day in order to maximize profit. The two
products have the following resource requirements for
production and profit per item produced.
RESOURCE REQUIREMENT
There are 40 hours of
PRODUCT Labor (Hr/ unit) Clay (lb/ unit) Profit
labor and 120 pounds
Bowl 1 4 40
of clay available each
Mug 2 3 50
day for production.
Step 1. Identify the Decision Variable.
Problem: How many bowls and mugs to produce to maximize
the profit?
The two decision variables represent the number of bowls and
mugs to be produced on a daily basis.
Let x is the number of bowls to produce; and
y is the number of mugs to produce
Step 2. Identify the data/ information
related to the problem.
• It takes 1 hr. of labor and 4 pounds of clay to produce a bowl
to have a profit of Php 40.

• It takes 2 hrs. of labor and 3 pounds of clay to produce a mug

to have a profit of Php 50.

• There are 40 hours of labor and 120 pounds of clay available.

Step 3. Define the objective function.
Objective Function: Maximize the profit

The company’s profit is the sum of the individual profit gained from each bowl and mug.

Maximize Z = Php 40x + Php 50y;

where Z is the total profit per day

Php 40x is the profit from bowls

Php 50y is the profit from mugs

Step 4. Define the constraints.
Constraints: The resources (clay and labor) available..
There are two limited resources used in the problem, the clay and the labor.
Based on the table, it needs 1 hour to produce a bowl (x) and 2 hours to
produce a mug (y). This means that
1x + 2y ≤ 40
On the other hand, it needs 4 lbs. of clay to make a bowl (x) and 3 lbs. of clay to
make a mug (y). This means that
4x + 3y ≤ 120
Solution through
System of Linear
Equations
Constraint 1 1x + 2y ≤ 40 1x + 2y = 40

Constraint 2 4x + 3y ≤ 120 4x + 3y = 120

(-4) 1x + 2y = 40 (-4) -4x – 8y = -160 1x + 2y = 40

1x + 2(8) = 40
4x + 3y = 120 4x + 3y = 120
1x + 16 = 40
-5y = -40 1x = 40 – 16
-5 -5 x = 24
y=8
Hypothetically, to get the maximum profit we need to
produce 24 bowls and 8 mugs.

The hypothetical maximum profit is

Max Z = Php 40x + Php 50y
Max Z = Php 40(24) + Php 50(8)
Max Z = Php 960 + Php 400
Max Z = Php 1 360
To verify, we can graph the inequalities.
Graphical Solution