The Graphical Method - Formulation Previous Next
Using money units of thousands of dollars and time units of hours, the data for Leo's problem can be summarized as follows.
Since Leo must decide how many shares of each venture to take, the decision variables are
  = number of shares of Venture 1,
  = number of shares of Venture 2.
He wants to maximize his savings, so the value of the objective function is
  = number of money units (thousands of dollars) added to savings.
The linear programming model for Leo's problem now can be formulated from the data in the table as follows.