Linear Progression

Course Pack Module #4, Linear Programming

ISM 4400, Summer 2008: Page 1/20

ISM 4400

Decision Support Systems

Course Pack Module #4 Linear Programming Models

Course Pack Module #4, Linear Programming

ISM 4400, Summer 2008: Page 2/20

SCENARIO USED TO INTRODUCE LINEAR PROGRAMMING CONCEPTS (Each row represents a slight embellishment to the situation) Situation We manufacture tables We manufacture tables Relevant Information Each table yields a profit of $2 Each table yields a profit of $2; each table uses 3 units of lumber; only 1500 units of lumber are available Each table yields a profit of $2 and each chair yields a profit of $1; each table uses 3 units of lumber and each chair uses 1 unit of lumber; only 1500 units of lumber are available Each table yields a profit of $2 and each chair yields a profit of $1; each table uses 3 units of lumber and each chair uses 1 unit of lumber; only 1500 units of lumber are available; each table uses 1 hour of labor and each chair uses 1 hour of labor; only 1000 hours of labor available Decision to be Made How many tables should be scheduled for manufacture? How many tables should be scheduled for manufacture? Objective to be Restrictions on Achieved Decision Maximize profit None

Maximize profit The amount of lumber used cannot exceed 1500 units

We manufacture tables and we manufacture chairs

How many tables and how many chairs should be scheduled for manufacture?

Maximize profit The amount of lumber used cannot exceed 1500 units

We manufacture tables and we manufacture chairs

How many tables and how many chairs should be scheduled for manufacture?

Maximize profit The amount of lumber used cannot exceed 1500 units; the amount of labor used cannot exceed 1000 hours

Course Pack Module #4, Linear Programming

ISM 4400, Summer 2008: Page 3/20

DEMONSTRATION LINEAR PROGRAMMING PROBLEM

Scenario: The Micro-Components division of the Regency Corporation manufactures two subassemblies that...