Linear programming
Chapter 8
Linear Programming
Applications
To accompany
Quantitative Analysis for Management, Eleventh Edition, Global Edition by Render, Stair, and Hanna
Power Point slides created by Brian Peterson
Copyright © 2012 Pearson Education
8-1
Learning Objectives
After completing this chapter, students will be able to:
1. Model a wide variety of medium to large LP
problems.
2. Understand major application areas, including marketing, production, labor scheduling, fuel blending, transportation, and finance. 3. Gain experience in solving LP problems with
QM for Windows and Excel Solver software.
Copyright © 2012 Pearson Education
8-2
Chapter Outline
8.1
8.2
8.3
8.4
8.5
8.6
8.7
Introduction
Marketing Applications
Manufacturing Applications
Employee Scheduling Applications
Financial Applications
Ingredient Blending Applications
Transportation Applications
Copyright © 2012 Pearson Education
8-3
Introduction
The graphical method of LP is useful
for understanding how to formulate and solve small LP problems.
There are many types of problems that can be solved using LP.
The principles developed here are applicable to larger problems.
Copyright © 2012 Pearson Education
8-4
Marketing Applications
Linear programming models have been
used in the advertising field as a decision aid in selecting an effective media mix.
Media selection problems can be approached with LP from two perspectives:
Maximize audience exposure.
Minimize advertising costs.
Copyright © 2012 Pearson Education
8-5
Win Big Gambling Club
The Win Big Gambling Club promotes gambling
junkets to the Bahamas.
It has $8,000 per week to spend on advertising.
Its goal is to reach the largest possible highpotential audience.
Media types and audience figures are shown in the following table.
It needs to place at least five radio spots per week.
No more than $1,800 can be spent on radio advertising each week.
Copyright © 2012 Pearson Education
8-6
Win Big Gambling Club
Linear Programming
Applications
To accompany
Quantitative Analysis for Management, Eleventh Edition, Global Edition by Render, Stair, and Hanna
Power Point slides created by Brian Peterson
Copyright © 2012 Pearson Education
8-1
Learning Objectives
After completing this chapter, students will be able to:
1. Model a wide variety of medium to large LP
problems.
2. Understand major application areas, including marketing, production, labor scheduling, fuel blending, transportation, and finance. 3. Gain experience in solving LP problems with
QM for Windows and Excel Solver software.
Copyright © 2012 Pearson Education
8-2
Chapter Outline
8.1
8.2
8.3
8.4
8.5
8.6
8.7
Introduction
Marketing Applications
Manufacturing Applications
Employee Scheduling Applications
Financial Applications
Ingredient Blending Applications
Transportation Applications
Copyright © 2012 Pearson Education
8-3
Introduction
The graphical method of LP is useful
for understanding how to formulate and solve small LP problems.
There are many types of problems that can be solved using LP.
The principles developed here are applicable to larger problems.
Copyright © 2012 Pearson Education
8-4
Marketing Applications
Linear programming models have been
used in the advertising field as a decision aid in selecting an effective media mix.
Media selection problems can be approached with LP from two perspectives:
Maximize audience exposure.
Minimize advertising costs.
Copyright © 2012 Pearson Education
8-5
Win Big Gambling Club
The Win Big Gambling Club promotes gambling
junkets to the Bahamas.
It has $8,000 per week to spend on advertising.
Its goal is to reach the largest possible highpotential audience.
Media types and audience figures are shown in the following table.
It needs to place at least five radio spots per week.
No more than $1,800 can be spent on radio advertising each week.
Copyright © 2012 Pearson Education
8-6
Win Big Gambling Club