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Linear Programming Problems (LPP) via Graphical Method, Business Mathematics and Statistics | Business Mathematics and Statistics - B Com PDF Download

THE GRAPHICAL METHOD FOR SOLVING LPM.


This method can be used when the number of variables is at most three.

Example 1. Solve the following linear programming problem:

Linear Programming Problems (LPP) via Graphical Method, Business Mathematics and Statistics | Business Mathematics and Statistics - B Com
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Linear Programming Problems (LPP) via Graphical Method, Business Mathematics and Statistics | Business Mathematics and Statistics - B Com

Step 1 We label the variables x1,x2 and coordinate axes x1,x2 and graph the set of points satisfying the linear inequalities (or equalities) involving the two variables (it is possible to do this in three dimensional space). This set of points is called the feasible region (the shaded area on the Figure).

Step 2 We draw contours of the objective function Z = a1x+ a= 3x1 + 2x2 for a few values of Z. In this case, we take Z = 0,Z = 60 and Z = 180. These lines are called isoprofit lines. Once we have drawn the isoprofit line we can generate other lines by moving parallel to this line in the direction in which Z increases (for a max problem). The last isoprofit line intersecting (touching) the feasible region defines the largest Z-value and determines the optimal solution to the model.

The optimal(maximizing) solution is x= 20, x2 = 60, Z = 180. This problem has exactly one optimal solution

 

THE GRAPHICAL METHOD FOR SOLVING LPM.

Example 2. Solve the following linear programming problem

Linear Programming Problems (LPP) via Graphical Method, Business Mathematics and Statistics | Business Mathematics and Statistics - B Com

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Linear Programming Problems (LPP) via Graphical Method, Business Mathematics and Statistics | Business Mathematics and Statistics - B Com

This problem has multiple optimal(or alternative optimal) solutions. This means that there is an infinite number of optimal solutions. (Every point on the line segment connecting the points (0,80) and (20,60) is optimal, with Z = 160). We may express the set of optimal solution as follows:

x1 = 0t + 20(1 − t)

x2 = 80t + 60(1 − t)

t ∈ [0, 1]

Example 3. Solve the following problem

x2

Linear Programming Problems (LPP) via Graphical Method, Business Mathematics and Statistics | Business Mathematics and Statistics - B Com

Linear Programming Problems (LPP) via Graphical Method, Business Mathematics and Statistics | Business Mathematics and Statistics - B Com

Unbounded Optimal Solution. The following problem has no optimal solution, because it is possible to find points in the feasible region with an arbitrarily large Z-value.


Example4. Solve the following problem:

  Linear Programming Problems (LPP) via Graphical Method, Business Mathematics and Statistics | Business Mathematics and Statistics - B Com

40

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Linear Programming Problems (LPP) via Graphical Method, Business Mathematics and Statistics | Business Mathematics and Statistics - B Com

This problem has no optimal solution - the set of feasible solutions is empty (Empty Feasible Region). The system of inequalities(and/or equalities ) defining the feasible region is inconsistent.


Observations From the graphical solution of two-variable linear programming problems we see that:

  • The set of feasible solutions (feasible region)of a linear programming problem(LPP) is a convex set. The set D in n-dimensional space is a convex set if the line segment joining any pair of points in D is wholly contained in D.

  • There is only a finite number of extreme points(corner points) in the set of feasible solutions. For any convex set D, a point P is an extreme point if each line segment that lies completely in D and contains the point P has P as an end point of the line segment.

  • The optimal solution is attained (if it exists) in at least one extreme point.


Every LPP must fall into one of the following four cases:

1. There is only one optimal solution which is an extreme point (corner point) of the set of feasible solutions.

2. There are alternative optimal solutions (an infinite number of optimal solutions), but at least one optimal solution occurs at an extreme point (cornerpoint) of the set of feasible solutions to the LPP.

3. The LPP is unbounded: There are points in the set of feasible solutions with an arbitrarily large Z- value (max problem) or arbitrarily small Z- value (min problem).

4. The LPP is infeasible: The set of feasible solutions is the empty set(The feasible region contains no points).

All the above facts can be proved for any LPP.

The document Linear Programming Problems (LPP) via Graphical Method, Business Mathematics and Statistics | Business Mathematics and Statistics - B Com is a part of the B Com Course Business Mathematics and Statistics.
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FAQs on Linear Programming Problems (LPP) via Graphical Method, Business Mathematics and Statistics - Business Mathematics and Statistics - B Com

1. What is linear programming and how is it applied in business mathematics and statistics?
Linear programming is a mathematical technique used to optimize the allocation of limited resources to achieve the best outcome. In business mathematics and statistics, it is applied to solve complex problems involving multiple variables and constraints, such as production planning, resource allocation, transportation logistics, and investment portfolio optimization. By formulating the problem as a linear programming model, businesses can make data-driven decisions to maximize profits, minimize costs, or achieve other specific objectives.
2. What is the graphical method for solving linear programming problems?
The graphical method is a graphical representation of linear programming problems. It involves plotting the constraints and objective function on a graph to identify the feasible region, which is the area that satisfies all the constraints. The optimal solution, which maximizes or minimizes the objective function, is then found at one of the extreme points of the feasible region. By visually analyzing the graph, the graphical method provides a simple and intuitive way to solve linear programming problems with two variables.
3. Can linear programming be used to solve real-world business problems?
Yes, linear programming can be used to solve a wide range of real-world business problems. It is particularly useful in industries such as manufacturing, supply chain management, transportation, finance, and marketing. For example, linear programming can help a manufacturing company optimize production levels based on resource constraints and market demand. It can also assist a logistics company in determining the most cost-effective routes for delivering goods. In finance, linear programming can aid in portfolio optimization by allocating investments to maximize returns while considering risk constraints.
4. Are there any limitations or assumptions associated with linear programming?
Yes, there are certain limitations and assumptions associated with linear programming. Firstly, it assumes that the relationships between variables are linear, which may not always be the case in reality. Additionally, linear programming assumes that all parameters (e.g., costs, demands, and capacities) are known with certainty, which may not be true in uncertain business environments. Moreover, linear programming assumes that the objective function and constraints are continuously differentiable, which may not hold in some situations. Lastly, linear programming assumes that decision variables are non-negative, which may not be applicable in all scenarios.
5. What are the advantages of using linear programming in business decision-making?
There are several advantages of using linear programming in business decision-making. Firstly, it provides a systematic and structured approach to problem-solving, helping businesses make optimal decisions based on quantitative analysis rather than intuition or guesswork. Secondly, linear programming allows businesses to consider multiple objectives simultaneously, such as maximizing profits while minimizing costs. Thirdly, it enables businesses to evaluate different scenarios and make informed trade-offs by adjusting constraints and variables. Lastly, linear programming can save time, resources, and costs by providing efficient solutions and reducing the need for trial and error.
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