EXAMPLE OF LPP

⎧L K ⎫
Leontief Production Function q = min⎨ , ⎬
⎩a b ⎭
K
K = (b/a) L

bq
Z
X

L
aq
 ⎧L K ⎫ ⎧L K ⎫
q1 = min⎨ , ⎬ q2 = min⎨ , ⎬
⎩a b ⎭ ⎩c d ⎭
K
K = (b/a) L

K = (d/c) L

L
K
K = (b/a) L

K = (d/c) L

L
K K = 2L
q1 = min {L, 0.5K}

K=L
q3 = min {0.8L, 0.8K}

K = .5L
q2 = min {0.5L, K}

L
 Suppose a firm can choose between the following linear
processes:
q1 = min {L, 0.5K}
q2 = min {0.5L, K}
q3 = min {0.8L, 0.8K}

The total input requirements are:

L = q1 + 2q2 + 1.25q3
K = 2q1 + q2 + 1.25q3
Problem:
max R = pq1 + pq2 + pq3
subject to q1 + 2q2 + 1.25q3 ≤ L0
2q1 + q2 + 1.25q3 ≤ K0
q 1, q 2, q 3 ≥ 0
 Example 1
James produces two commodi0es, x1 and x2. These two
products are processed through 2 machines. Maximum
hours available are 120 and 180 for machines 1 and 2,
respec0vely. Profit is P45 for x1 and P55 for x2. Determine
the op0mal x1 and x2 that should be manufactured in order
to maximize profit.

x1 x2
Machine 1 6 4 120
Machine 2 3 10 180
Profit 45 55
x2
VOF
(0, 18) 990
6x1 + 4x2 = 120 (10, 15) 1275
(20, 0) 900
(0, 0) 0
A

Binding vs. Slack

B

45x1 + 55x2 = π 3x1 + 10x2 = 180

x1
D C
 Example 2
Bond sells two commodi0es, x1 and x2. Based on an
analysis of current inventory levels and poten0al demand
for the coming month, Bond reckons that the combined
produc0on of x1 and x2 must be at least 350 units. In
addi0on, a major customer has ordered 125 units of x1 that
must be sa0sfied. Product x1 requires 2 hours of processing
0me per unit, while product x2 requires 1 hour of
processing 0me per unit. For the coming month, 600 hours
of processing 0me are available. Bond’s objec0ve is to
sa0sfy these requirements at a minimum total produc0on
cost. Produc0on costs are P2 per unit for product x1 and P3
per unit for product x2.
x2
x1 = 125 VOF
A = (125, 350) 1300
B = (125, 225) 875
C = (250, 100) 800
A

Binding vs. Surplus

B
2x1 + x2 = 600

C
x1 + x2 = 350
x1
 EXERCISE
Solve the following problems graphically. Iden0fy the values of
slack and surplus variables at the op0mal solu0on.

A.  Max 3x + 2y
subject to x + y ≥ 4
3x + 4y ≤ 24
x ≥ 2
x – y ≤ 0
x, y ≥ 0

B. Min x + 2y
subject to x + 4y ≤ 21
2x + y ≥ 7
3x + 1.5y ≤ 21
2x + 6y ≥ 0
x, y ≥ 0
 EXERCISE
C. Max x + y
subject to 8x + 6y ≥ 24
2y ≥ 4
x, y ≥ 0

D. Max x + y
subject to 5x + 3y ≤ 15
3x + 5y ≤ 15
x, y ≥ 0

E. Max x - y
subject to -4x + 3y ≤ 3
x - y ≤ 3
x, y ≥ 0