ADVANCED MATHEMATIC ENGINEERING MKA 1003 ASSIGNMENT 1

2.0

Model a linear programming problem of either maximization or minimization

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problem. Solve the maximization problem by simplex method, whereas minimization method by duality or 2-phase method. - Our group choose to solve the maximization problem by simplex method. 1.0 1.1 INTRODUCTION Linear Programming (LP) (LP) is a mathematical method for determining a way to achieve the best outcome (such as maximum profit or lowest cost) in a given mathematical model for some list of requirements represented as linear equations. More formally, linear programming is a technique for the optimization of a linear objective function, subject to linear equality and linear inequality constraints. Given a polytope and a real-valued affine function defined on this polytope, a linear programming method will find a point on the polytope where this function has the smallest (or largest) value if such point exists, by searching through the polytope vertices. Linear programs are problems that can be expressed in canonical form: Maximize: cTx Subject to: Ax b. where x represents the vector of variables (to be determined), c and b are vectors of (known) coefficients and A is a (known) matrix of coefficients. The expression to be maximized or minimized is called the objective function (cTx in this case). The equation Ax b is the constraints which specify a convex polytope over which the objective function is to be optimized. (In this context, two vectors are comparable when every entry in one is less-than or equal-to the corresponding entry in the other. Otherwise, they are incomparable.)

ADVANCED MATHEMATIC ENGINEERING MKA 1003 ASSIGNMENT 1

Linear programming can be applied to various fields of study. It is used most extensively in business and economics, but can also be utilized for some engineering problems. Industries that use linear programming models include transportation, energy, telecommunications, and manufacturing. It has proved useful in modelling diverse types of problems in planning, routing, scheduling, assignment, and design. 1.2 Optimization In mathematics and computer science, optimization, or mathematical programming, refers to choosing the best element from some set of available alternatives. In the simplest case, this means solving problems in which one seeks to minimize or maximize a real function by systematically choosing the values of real or integer variables from within an allowed set. This formulation, using a scalar, realvalued objective function, is probably the simplest example; the generalization of optimization theory and techniques to other formulations comprises a large area of applied mathematics. More generally, it means finding "best available" values of some objective function given a defined domain, including a variety of different types of objective functions and different types of domains. 1.3 Simplex Method Technique most commonly used to solve a Linear Programming (LP) problem. It is an algorithm, a step-by-step procedure for moving from corner point to corner point of the feasible region in such a manner that successfully larger (smaller) values of the objective function in a maximization (minimization) problem are obtained at each step. The procedure is guaranteed to yield the optimal solution in a finite number of steps.
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ADVANCED MATHEMATIC ENGINEERING MKA 1003 ASSIGNMENT 1

2.0

PROBLEM STATEMENT A contractor has identified a set of eight major construction projects that are to be
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awarded on the basis of sealed bids. The contractor is reasonably confident of being able to submit the low bid on each of the projects, but does not have the resources to undertake all of them. The projects are large in scale, and each will require different level of labour, materials, and equipment to complete. The contractors labour and equipment resources are limited. Each bid also requires time and special expertise to prepare, and these are limited as well. The question facing the contractor is which projects should be selected for bidding. The relevant data for each of the eight projects are presented in Table 1.0, including the time necessary to prepare a bid and the expected profit that would result from being awarded and completing each project. Estimates for the major resources needed for a particular project are also included. For example, project 3-the re decking of an urban bridge crossing a major river-would require a skilled labour input of about 4000 hours and the use of a very large crane during almost the entire project. The bid for this project would be the first of its kind undertaken by this contractor, and would thus take approximately 13 person weeks to prepare.. The resources available to the contractor for preparing bids and completing projects that might be awarded are limited. The company owns 3 cranes, each of which is suitable for any of the projects. Only 30,000 hours of skilled labour are expected to be available to the contractor during the period of the projects. A team of four project estimators will prepare all bids so that over the next three months, a total of only 50 person-weeks are available. The company confidently assumes that it will win any bid that it prepares. Which projects should be pursued?

ADVANCED MATHEMATIC ENGINEERING MKA 1003 ASSIGNMENT 1

Table 1.0: Estimated resources needed and profit for the bidding problem
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Project

Time to prepare bid (person-weeks) 8 12 13 11 9 7 8 8

Thousands of hours of skilled labour needed 6 5 4 7 8 3 4 5

1 2 3 4 5 6 7 8

Crane required for the project? (1=yes) (0=no) 1 0 1 0 0 1 1 1

Profit IF Project Won (RM) 80 110 100 90 70 80 90 60

3.0

MODEL FORMULATION

ADVANCED MATHEMATIC ENGINEERING MKA 1003 ASSIGNMENT 1

The objective function for a model that will help analyze this problem is the maximization of expected profit.:
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These decision variables allow formulation of the maximum profit objective. They also allow formulation of the constraint on bid preparation time and the constraints on equipment and labor resources:

Maximize Z = 80x1 + 110x2 + 100x3 + 90x4 + 70x5 + 80x6 + 90x7 + 60x8 Subject to: 8x1 + 12x2 + 13x3 + 11x4 +9x5 + 7x6 +8x7 +8x8 50 6x1 + 5x2 + 4x3 + 7x4 + 8x5 + 3x6 + 4x7 + 5x8 30 x1 + x3 + x6 + x7 + x8 3

The optimal solution is x1 = x3 = x4= x5 = x6 = x7 = x8 = 0, x2 = 2, x7 = 3 Resulting in a total expected profit of RM580.

ADVANCED MATHEMATIC ENGINEERING MKA 1003 ASSIGNMENT 1

3.1

Solving Method: Simplex method calculation using Excel Formulation

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* Since the z row indicators of the variables of x1,x2,x3,x4,x5,x6,x7,and x8 are negative, the current solution is not a minimum. Then, using simplex method as solution steps to find maximization. Step 1 : Build the table consists of the column headings of Iteration, Basic, dependent variable, independent variables, RHS and Ration. This is initial table (zero iteration).

Initial Iteration Iteratio Bas n is z 0 s1 s2 s3

z 1 0 0 0

x1 -80 8 6 1

x2 -110 12 5 0

x3 -100 13 4 1

x4 -90 11 7 0

x5 -70 9 8 0

x6 -80 7 3 1

x7 -90 8 4 1

x8 -60 8 5 1

s1 0 1 0 0

s2 0 0 1 0

s3 0 0 0 1

RHS 0 50 30 3

Ratio 0 4.1666 67 6

Step 2 : For standard maximization problem, find the pivot column as the most negative column from row 0 (objective function row). For minimization problem, pivot column as the most positive column. Therefore, the control variable that enters the basis is x 2 because z = -110 is the smallest negative value of the indicator vector. The x2 column as the pivot column.

ADVANCED MATHEMATIC ENGINEERING MKA 1003 ASSIGNMENT 1

Step 3: Find ratio as RHS / pivot column. The smallest positive ratio gives pivot row. The control variable that leaves the basis is s 1 because 4.166667 is the smallest positive ratio. The highlighted grey row indicates that s 1 is to be removed from the basis and replace by x 2. This also meaning that s1 become the pivot row. Step 4: The intersection of pivot column and pivot row gives pivot cell. Successive elimination is used to determine the next candidate solution;
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Iteration 1 Successive elimination is used to determine the next candidate solution; Iteratio n Bas is z 1 x2 s2 s3

z 1 0 0 0

x1 6.666 7 0.666 7 2.666 7 1

x2 0 1.000 0 0 0

x3 19.16 67 1.083 3 1.416 7 1

x4 10.83 33 0.916 7 2.416 7 0

x5 12.50 00 0.750 0 4.250 0 0

x6 15.83 33 0.583 3 0.083 3 1

x7 16.66 67 0.666 7 0.666 7 1

x8 13.33 33 0.666 7 1.666 7 1

s1 9.166 7 0.083 3 0.416 7 0

s2 0 0 1 0

s3 0 0 0 1

RHS 458.33 33 4.1667 9.1667 3

Ratio 27.50 00 6.250 0 13.75 00 3.000 0

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Iteration 2 Iteratio Bas n is z 2 x2 s2 x7

z 1 0 0 0

x1 10 0 2 1

x2 0 1 0 0

x3 35.83 34 0.416 6 2.083 4 1

x4 10.83 33 0.916 7 2.416 7 0

x5 12.50 00 0.750 0 4.250 0 0

x6 0.833 4 0.083 4 0.583 4 1

x7 0 0 0 1

x8 30 0 1 1

s1 9.166 7 0.083 3 0.416 7 0

s2 0 0 1 0

s3 16.66 67 0.666 7 0.666 7 1

RHS 508.33 34 2.1666 7.1666 3

Ratio

Answer: z=Optimal Solution 508

x1 0

x2 2

x3 0

x4 0

x5 0

x6 0

x7 3

x8 0

ADVANCED MATHEMATIC ENGINEERING MKA 1003 ASSIGNMENT 1

INDICATOR:
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Pivot Cell Pivot Coloumn Pivot Row

ADVANCED MATHEMATIC ENGINEERING MKA 1003 ASSIGNMENT 1

4.0

DISCUSSION

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Linear programming has become nowadays, the mathematical technique most used in solving a variety of problems related with management, from scheduling, media selection, financial planning to capital budgeting, transportation and many others, with the special characteristic that linear programming expect always to maximise or minimise some quantity. First of all it is known that one of the main advantages of linear programming is that it fits strictly with reality, as we will see, the example reflects this property. The first advantage is the calculation facility, as can be checked in the first step where we have to model or formulate the problem. This is a process where verbal statement is translated to mathematical statement; here this example is quite simple. The incomes must be maximised knowing the different prices of scarves and shirts but some limitations have been set which are called constraints; in this case limitations are related with capacity, time and sales space. It must be mentioned, another remarkable characteristic of linear programming problems such as, the adapting facility to reality, which allows solving, by computer programs, problems with thousands of variables and constraints. The next step to analyse is what happens when we change the values of the objective function or in the constraints. This is another advantage of using linear programming, when can check easily how the results vary when we change the old coefficients for others. This is called sensitivity analysis, which determines how changes affect the optimal solution to the original linear programming problem. The range of values over which the current solution will remain optimal, despite the change of the coefficients, is called range of optimality. Based on the example above, the optimization easily can be determined using simplex method. However, the user must understand first how to using this method. If not, the solving process become difficult. First, the objective is determined which is to obtain the profit optimization. Second, ensure the constraint during construct the project because the constraint can effect the optimization of project profit. 3 constraints that was determined such as time - time to prepare bid (person-weeks), labour resources - thousands of hours of skilled labour needed and equipment - crane required for the project. The availability of crane by the

ADVANCED MATHEMATIC ENGINEERING MKA 1003 ASSIGNMENT 1

company is 3. Therefore, they have to determine which project that can give the profit optimization under the 3 constraints.
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As the result, the optimization of profit obtained as RM580 which produced from project 2 and 7. Project 2 need 2 cranes and project 7 need 3 cranes.

REFERENCES

Paul J.O. (1984), System Analysis for Civil Engineers, Library of Congress Cataloging in Publication Data, U.S. Charles S.R., Earl W.J., Jeff R.W. (2004), Civil and Engineering System Analysis, Pearson Hall Inc., U.S.