In: Statistics and Probability
What is Linear Programming? Give an example of an application of Linear
DEFINITION:
Linear Programming (LP) is a method to achieve the best outcome, such as maximum profit or lowest cost in a Mathematical Model whose requirements are represented by linear relationships.
EXAMPLE OF APPLICATION:
Consider a farmer with:
a piece of farm land = L km2
to be planted with
(i) Wheat or
(ii) Barley.
A limited amount of fertilizer =F kilograms
A limited amount of pesticides = P kilograms
Every square kilometer of Wheat requires: F1 kilograms of Fertilizer and P1 kilogram of pesticides.
Every square kilometer of Barley requires: F2 kilograms of Fertilizers and P2 kilograms ofpesticides.
Let
S1 = Selling price of Wheat per square kilomter
S2 = Selling price ofBarley per square kilometer.
Let
x1 = area of land planted by Wheat
x2 = area of land planted by Barley
Then, Profit is maximized by choosing optimal values of x1 and x2.
This is written as a Linear Programming as follows:
Maximize:
R = S1 x1 + S2 x2 (MaximizeObjective Function: Revenue)
Subject to Linear Constraints:
x1+x2 L (Limit on Total Area)
F1 x1 + F2 x2 F (Limit on Fertilizer)
P1 x1 + P2 x2 P (Limit on Pesticide)
x1 0, x2 0 (Non - negativity contraints)