A prototype LP problem:
Consider a company which produces two types of products
and
. Production of these products is supported by two workstations
and
, with each station visited by both product types. If workstation
is dedicated completely to the production of product type
, it can process 40 units per day, while if it is dedicated to the production of
product
, it can process 60 units per day. Similarly, workstation
can produce daily 50 units of product
and 50 units of product
, assuming that it is dedicated completely to the production of the
corresponding product. If the company's profit by disposing one unit of product
is $200 and that of disposing one unit of
is $400, and assumning that the company can dispose its entire production, how
many units of each product should the company produce on a daily basis to
maximize its profit?
Solution: First notice that this problem is an optimization
problem. Our objective is to maximize the company's profit,
which under the problem assumptions, is equivalent to maximizing the company's
daily profit. Furthermore, we are going to maximize the company profit
by adjusting the levels of the daily production for the two items
and
. Therefore, these daily production levels are the control/decision factors, the
values of which we are called to determine. In the analytical formulation of the
problem, the role of these factors is captured by modeling them as the problem
decision variables:
-
:= number of units of product
to be produced daily
-
:= number of units of product
to be produced daily
In the light of the above discussion, the problem objective can be expressed
analytically as:
Equation1
will be called the objective function of the problem, and the
coefficients 200 and 400 which multiply the decision variables in it, will be
called the objective function coefficients.
Furthermore, any decision regarding the daily production levels for items
and
in order to be realizable in the company's operation context must observe the
production capacity of the two worksations
and
. Hence, our next step in the problem formulation seeks to introduce these
technological constraints in it. Let's focus first on the constraint which
expresses the finite production capacity of workstation
. Regarding this constraint, we know that one day's work dedicated to the
production of item
can result in 40 units of that item, while the same period dedicated to the
production of item
will provide 60 units of it. Assuming that production of one unit of product
type
, requires a constant amount of processing time
at workstation
, it follows that:
and
. Under the further assumption that the combined production of both items
has no side-effects, i.e., does not impose any additional requirements for
production capacity of workstation
(e.g., zero set-up times), the total capacity (in terms of time length)
required for producing
units of product
and
units of product
is equal to
. Hence, the technological constraint imposing the condition that our total
daily processing requirements for workstation
should not exceed its production capacity, is analytically expressed by:
Notice that in Equation2
time is measured in days.
Following the same line of reasoning (and under similar assumptions), the
constraint expressing the finite processing capacity of workstation
is given by:
Constraints2
and3 are
known as the technological constraints of the problem. In particular,
the coefficients of the variables
in them,
, are known as the technological coefficients of the problem
formulation, while the values on the right-hand-side of the two inequalities
define the right-hand side (rhs) vector of the constraints.
Finally, to the above constraints we must add the requirement that any
permissible value for variables
must be nonnegative, i.e.,
since these values express production levels. These constraints are known as
the variable sign restrictions.
Combining Equations1
to4, the
analytical formulation of our problem is as follows:
s.t.
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