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An agricultural example of linear programming, explaining how to determine the variables, constraints, and objective in a basic math programming model. It also covers the graphical solution of the problem, including the feasible region and the determination of the optimal point using iso-profit lines.
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I. An Agricultural Example
A. Assume that the farmer can produce two outputs, cotton and corn, with 100 acres of land and 25 hours of labor. Further, assume that each crop has the following input use per acre:
Cotton Corn Labor .3. Land 1.0 1.
Finally, assume that the profit per acre is $50 for cotton and $10 for corn. B. Basic Construction of the Problem: The basic formulation of the problem involves answering three questions.
max50 10
.. .3 .2 25 100 , 0
x x s t x x x x x x
where x 1 is cotton and x 2 is corn. E. Graphical solution
1 2
1 2 1 2
x x x x
x x
x x x x
Do these lines intersect?
2 2
2
x x
x
x
Professor Charles B. Moss
x 1
100
125 x 2
x 1 (^) = 100 − x 2 : Land
1 2
(^250 2) : 3 3
x = − x Labor
The region satisfying all constraints is called the feasible region or region of feasibility.
dz dx dx dx dx
Thus, we know that profit increases as either x 1 or x 2 increases by the first equation. Second, we know what the effect of increasing x 1 on profit is given that we have to decrease x 2. For example, on the land constraint (where we have to trade one unit of x 1 for each unit of x 2 ) the effect on profit is –1/5. Alternatively, profit is maximized where the slope of the feasible region is equal to –1/5.
Professor Charles B. Moss
x 1
100
125 x 2
s 1 =
s 1 =
c. Why s 1 =5? For a second, what if x 1 =0 and x 2 =100. Then
2 1
1
1
1
x s
s
s
s
Or, more appropriately, suppose s 1 =5. Then
1 2
x x
x x
d. Two things to note: (i) We can transform an inequality system into an equality system by adding (subtracting) the appropriate slack (surplus) variables. (ii) The nonnegativity condition on the slack (surplus) variable limits the feasibility condition to everything below (above) the line e. The land constraint 1 2 2 1 2 2
x x s x x s
Professor Charles B. Moss
x 1
100
83.33 125 x 2
s 2 =16.
s 1 =
a. Thus, one alternative is to produce x 1 =83.33 acres and x 2 = acres. This exhausts the labor constraint (s 1 =0), but leaves land in excess (s 2 =16.67). b. Another alternative is to use all the land and let labor go slack: x 2 =100, x 1 =0, s 1 =5, and s 2 =0. B. Using Matrix Algebra
x x x x
can be expressed in matrix form as .3 .2 25 1 1 100
using row operations, we can multiply the first row by 10/ yielding 1 2 250 3 3 1 1 100
Subtracting the first row from the second, 1 2 250 3 3 0 1 50 3 3
Professor Charles B. Moss
x 1
100
125 x 2
Professor Charles B. Moss
IV. Sensitivity
A. In and of itself, the solution of an optimum may be of little value. More important questions may involve the tendency of the solution to change as certain parameters of the model change. Three types of these changes are
x 1
100
125 x 2
Policy Constraint
c. The government policy changes the solution in that in the original solution the cotton was constrained by the labor constraint. By constraining the cotton acreage, labor is freed. The question then becomes, can this freed labor be used to increase profit? The answer is yes. (i) What is the quantity of labor freed?
1 1
s s