B.

SIMPLEX METHOD

 Simplex Method is an efficient approach that is developed by George B.Dantzig in 19940’s

to solve applied problems containing numerous constraints and involving many variables
that cannot be solved by the graphical method.
 It is an ITERATIVE or “step by step” method or repetitive algebraic approach that moves
automatically from one basic feasible solution to another basic feasible solution improving the
situation each time until the optimal solution is reached at.
 It starts with a corner that is in the solution space or feasible region and moves to another
corner i the solution space improving the value of the objective function each time until
optimal solution is reached at the optimal corner.
 It is used to solve maximization and minimization linear programming problems.

1. MAXIMIZATION PROBLEMS
 Maximize Z with inequalities of constraints in “< “form
Step 1
Formulate LPP Model

Step 2
Standardize the problem
i.e Convert constraint inequality into equality form by introducing a variable called Slack
variable.
Slack Variables:
 is added to the left hand side of a < constraint to covert the constraint inequality in to
equality.
 Its value shows unused resource.
 It emerges when the LPP is a maximization problem.
 Represent unused resource or idle capacity. Thus, they don’t produce any product and
their contribution to profit is zero.
 are added to the objective function with zero coefficients.
Step 3
Obtain the initial simplex tableau
To represent the data, the simplex method uses a table called the simplex table or the simplex
matrix.
==> In constructing the initial simplex tableau, the search for of the optimal solution begins at
the origin. Indicating that nothing can be produced; No production implies that x1 =0 and x2=0

Step 4

1
Construct the initial simplex tableau

Initial simplex tableau

variables column

Solution quantity
Real or decision

Slack variables
Basic or Solution
Profit per unit

variable column

columns

column
column

Cj 300 250 0 0 0

SV X1 X2 S1 S2 S3 Q
Profit per unit row
0 S1 2 R1 1 1 0 0 40

0 S2 1 R2 3 0 1 0 45
0 S3 1 R30 0 0 1 12
Zj 0 0 0 0 0 0 Constraint
Cj - Zj 300 250 0 0 0 equation rows

Step 5:
Gross Profit row
Choose the “incoming” or “entering” variables
Net Profit row
 The entering variable is the variable that has the most positive value in the Cj - Zj row
/Indicator row/
also called as indicator row.
 Or the entering variable is the variable that has the highest contribution to profit per
unit.
a. X1 in our case is the entering variable
b. The column associated with the entering variable is called key or pivot column ( X1 column
in our case )
Step 6
Choose the “leaving “or “outgoing” variable
==> In this step, we determine the variable that will leave the solution for X1 (or entering
variable)
 The row with the minimum or lowest positive (non-negative) replacement ratio shows the
variable to leave the solution.

Replacement Ratio (RR) = Solution Quantity (Q)

 The variable leaving the solution
Corresponding values is
incalled leaving variable or
pivot column outgoing variable.
RR>0
 The row associated with the leaving variable is called key or pivot row (s 3 column in our
case)

2
 The element that lies at the intersection of the pivot column and pivot row is called pivot
element

Step 7
 Repeat step 3-5 till optimum basic feasible solution is obtained. Or: repeat step 3-5 till
no positive value occurs in the Cj - Zj row.

Since all the Cj - Zj < 0 optimal solution is reached at.

Therefore, X1=12, X2=11, S1=5 and Max Z=6350

Example
A Juice Company has available two kinds of food Juices: Orange Juice and Grape Juice. The
company produces two types of punches: Punch A and Punch B. One bottle of punch A
requires 20 liters of Orange Juice and 5 liters of Grape Juice.1 Bottle of punch B requires 10
liters of Orange Juice and 15 liters of Grape Juice. From each of bottle of Punch A profit of $4 is
made and from each bottle of Punch B a profit of $3 is made. Suppose that the company has
230 liters of Orange Juice and 120 liters of Grape Juice available.
Required:
a. Formulate this problem as a LPP
b. How many bottles of Punch A and Punch B the company should produce in order to
maximize profit? (Using the simplex method)
c. What is this maximum profit?

Solution:
Juice needed for one bottle of
Juice Punch A Punch B Juice Available
_____________________________________________________________________
Orange Juice (lt) 20 10 230
Grape Juice (lt) 5 15 120
Profit per tent $4 $3
___________________________________________________________________________________

Let X1= the No of bottles of punch A produced.

X2= the No of bottles of punch B produced.

 LPP Model

Max Z=4X1 +3X2

St:
20X1 +10X2 < 230 Orange Constraint
5X1 +15X2 < 120 Grape Constraint

3
 X1, X2 >0 Non-negativity constraint

 Standard form
Max.Z=4x1 +3x2 + 0 s1 +0 s2+ 0 s3
St:
20 x1+3x2 + s1 +0 s2 = 230 Standard form
5x1+15x2 +0s1 + s2+ = 120
x1 , x2 , s1 , s2, >0
Where, s1 =Unused orange juice
s2 =Unused grape juice

Initial simplex tableau

Cj 4 3 0 0

SV X1 X2 S1 S2 Q

0 S1 20 10 1 0 230

0 S2 5 15 0 1 120
Zj 0 0 0 0 0
Cj - Zj 4 3 0 0

2nd simplex tableau

Cj 4 3 0 0

SV X1 X2 S1 S2 Q

4 X1 1 1/2 1/20 0 11.5

0 S2 0 25/2 -1/4 1 62.5

Zj 4 2 1/5 0 46
Cj - Zj 0 1 -1/5 0

Optimal simplex tableau

Cj 4 3 0 0

SV X1 X2 S1 S2 Q

4 X1 1 0 3/50 -1/25 9

0 X2 0 1 -1/50 2/25 5
Zj 4 3 0.12 0.08 51
Cj - Zj 0 0 - 0.12 -0.08

4
Since all the Cj - Zj < 0 optimal solution is reached at.
X1= 9 bottles of punch A
X2= 5 bottles of punch B
s1 =0
s2 =0
MaxZ=$51