Lp formulation

LP Formulation

LP formulation is the process of translating a real-world decision problem into a linear programming model.

The model must clearly say:

  1. what we choose
  2. what we optimize
  3. what limits us

The Three Questions

Question LP Object
What do we choose? decision variables
What do we want? objective function
What limits us? constraints

Step 1: Define Decision Variables

Decision variables must be precise.

Bad:

\[x_1=\text{lettuce}\]

Good:

\[x_1=\text{hectares allocated to lettuce}\]

Bad:

\[x_2=\text{fund B}\]

Good:

\[x_2=\text{number of units purchased of fund B}\]

The units matter.

A variable can represent:

  • units produced
  • hours operated
  • kilograms purchased
  • euros invested
  • hectares cultivated
  • goods shipped
  • workers hired

Step 2: Write the Objective Function

The objective function measures the goal.

Use maximization for benefits:

\[\max c^Tx\]

Examples:

  • maximize profit
  • maximize revenue
  • maximize expected return
  • maximize number of hired workers
  • maximize production output

Use minimization for costs:

\[\min c^Tx\]

Examples:

  • minimize cost
  • minimize transportation expense
  • minimize diet cost
  • minimize operating time
  • minimize resource usage

Step 3: Write the Constraints

Constraints translate the limitations and requirements.

Common phrases:

Phrase Mathematical Sign
at most $\le$
no more than $\le$
maximum $\le$
cannot exceed $\le$
at least $\ge$
no less than $\ge$
minimum $\ge$
must satisfy usually $\ge$ or $=$
exactly $=$

Step 4: Add Sign Restrictions

Most LP variables represent quantities, so they are nonnegative:

\[x_j\ge 0\]

For all variables:

\[x\ge 0\]

This means:

\[x_1\ge 0,\quad x_2\ge 0,\quad \ldots,\quad x_n\ge 0\]

Do not forget these constraints.

Example: Simple Production Model

A factory produces two products.

Let:

\[x_1=\text{units of product A}\] \[x_2=\text{units of product B}\]

Suppose:

  • product A gives profit $5$
  • product B gives profit $12$
  • product A uses $20$ resistors, $10$ transistors, $10$ capacitors
  • product B uses $10$ resistors, $20$ transistors, $30$ capacitors
  • available resources are $200$, $120$, and $150$

The LP is:

\[\max 5x_1+12x_2\]

subject to:

\[20x_1+10x_2\le 200\] \[10x_1+20x_2\le 120\] \[10x_1+30x_2\le 150\] \[x_1,x_2\ge 0\]

Example: Minimum Requirement Model

Suppose two machines produce standard and special yarn.

Let:

\[x_1=\text{hours of machine A}\] \[x_2=\text{hours of machine B}\] \[x_3=\text{hours of machine C}\]

The daily cost is:

\[90x_1+80x_2+60x_3\]

If the market requires at least $60$ standard and $40$ special hanks, and the machine outputs are:

Machine Standard Special
A 3 1
B 2 2
C 2 1

then the LP is:

\[\min 90x_1+80x_2+60x_3\]

subject to:

\[3x_1+2x_2+2x_3\ge 60\] \[x_1+2x_2+x_3\ge 40\] \[x_1,x_2,x_3\ge 0\]

Unit Check

Every term in a constraint must have the same unit.

Example:

\[2x_1+3x_2\le 120\]

If $x_1,x_2$ are product quantities and the coefficients are hours per product, then the left side is total hours.

The right side must also be hours.

Ratio Constraints

Ratio statements must be converted into linear inequalities.

Example:

second-level salary expenditure cannot exceed $80\%$ of first-level salary expenditure

If:

\[x_1=\text{first-level researchers}\] \[x_2=\text{second-level researchers}\]

and salaries are $40000$ and $30000$, then:

\[30000x_2 \le 0.8(40000x_1)\]

This is linear.

Final Model Checklist

A complete LP formulation should include:

  • variable definitions
  • objective function with max or min
  • all constraints
  • sign restrictions
  • units if needed
  • any integer or binary restrictions if the problem asks for them

Common Mistakes

Avoid these mistakes:

  • defining variables vaguely
  • mixing units
  • forgetting nonnegativity
  • using $\le$ when the phrase says “at least”
  • writing nonlinear expressions such as $x_1x_2$
  • optimizing revenue when the problem asks for profit
  • using euros invested when the variable is number of units, or the reverse

Key Takeaway

Formulation is not calculation.

The hard part is translating the story into variables, objective, and constraints without changing the meaning of the problem.

Exam checkpoint

For formulation questions, show variables, objective, constraints, sign restrictions, and units. Do not solve unless the question asks for a solution.

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