Ch.2 - Click to edit Master subtitle style 8/15/11 BIT 2406...

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Unformatted text preview: Click to edit Master subtitle style 8/15/11 BIT 2406 Chapter 2 Linear Programming: Mode BIT 2406 11 8/15/11 BIT 2406 Chapter Topics Model Formulation A Maximization Model Example Graphical Solutions of Linear Programming Models A Minimization Model Example Irregular Types of Linear Programming Models Characteristics of Linear Programming Problems BIT 2406 22 8/15/11 BIT 2406 Linear Programming Objectives of business decisions frequently involve maximizing profit or minimizing costs. Linear Programming is a model that consists of linear relationships representing a firms decision(s), given an objective and resource constraints. BIT 2406 33 8/15/11 BIT 2406 Model Components Decision Variables are mathematical symbols that represent levels of activity. Objective Function a linear relationship that reflects the objective of an operation, in terms of the decision variables this function is to be maximized or minimized. Constraint a linear relationship that BIT 2406 44 8/15/11 BIT 2406 Model Formulation Steps Step 1 : Clearly define the decision variables Step 2 : Construct the objective function Step 3 : Formulate the constraints BIT 2406 55 8/15/11 BIT 2406 A Maximization Model Example: Product Mix Problem Problem Statement: Beaver Creek Pottery Company is a small crafts operation run by a Native American tribal council. The company employs skilled artisans to produce clay bowls and mugs with authentic Native American 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. Each bowl requires 1 hour of labor and 4 lbs of clay, and sells for $40....
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Ch.2 - Click to edit Master subtitle style 8/15/11 BIT 2406...

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