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Simplex Method New Edited

The document discusses linear programming models and the simplex method. It begins by introducing linear programming and various solution methods, noting that the simplex method is the most powerful for problems with more than two decision variables. It then explains that the simplex method is an iterative process that begins with a basic feasible solution and proceeds towards the optimal solution by testing feasibility and optimality at each step. The document also compares graphical and simplex methods, noting some key differences - graphical is limited to two variables while simplex can handle any number, graphical assumes equations while simplex uses slack/surplus variables, and simplex directly determines exchange rates between variables. Finally, it provides an example problem and begins setting up the initial simplex table.

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0% found this document useful (0 votes)
64 views24 pages

Simplex Method New Edited

The document discusses linear programming models and the simplex method. It begins by introducing linear programming and various solution methods, noting that the simplex method is the most powerful for problems with more than two decision variables. It then explains that the simplex method is an iterative process that begins with a basic feasible solution and proceeds towards the optimal solution by testing feasibility and optimality at each step. The document also compares graphical and simplex methods, noting some key differences - graphical is limited to two variables while simplex can handle any number, graphical assumes equations while simplex uses slack/surplus variables, and simplex directly determines exchange rates between variables. Finally, it provides an example problem and begins setting up the initial simplex table.

Uploaded by

ISRAEL
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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ADDIS ABABA MEDICAL & BUSINESS COLLEGE MBA PROGRAMME QUANTITATIVE ANALYSIS FOR DECISIONS-MAKING

LINEAR PROGRAMMING MODELS: SIMPLEX METHOD

3.1. INTRODUCTION
As discussed earlier, there are many methods to solve the Linear Programming Problem, such
as Graphical Method, Trial and Error method, Vector method and Simplex Method. Though
we use graphical method for solution when we have two problem variables, the other method
can be used when there are more than two decision variables in the problem. Among all the
methods, SIMPLEX METHOD is most powerful method. It deals with iterative process,
which consists of first designing a Basic Feasible Solution or a Programme and proceed
towards the OPTIMAL SOLUTION and testing each feasible solution for Optimality to
know whether the solution on hand is optimal or not.
If not an optimal solution, redesign the programme, and test for optimality until the test
confirms OPTIMALITY. Hence, we can say that the Simplex Method depends on two
concepts known as Feasibility and Optimality.
The simplex method is based on the property that the optimal solution to a linear
programming problem, if it exists, can always be found in one of the basic feasible solution.
The simplex method is quite simple and mechanical in nature. The iterative steps of the
simplex method are repeated until a finite optimal solution, if exists, is found. If no optimal
solution, the method indicates that no finite solution exists.
3.2. COMPARISION BETWEEN GRAPHICAL AND SIMPLEX METHODS
1. The graphical method is used when we have two decision variables in the problem.
Whereas in Simplex method, the problem may have any number of decision variables.
2. In graphical method, the inequalities are assumed to be equations, so as to enable to
draw straight lines. But in Simplex method, the inequalities are converted into
equations by:
 Adding a SLACK VARIABLE in maximization problem and subtracting a
SURPLUS VARIABLE in case of minimization problem.

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ADDIS ABABA MEDICAL & BUSINESS COLLEGE MBA PROGRAMME QUANTITATIVE ANALYSIS FOR DECISIONS-MAKING

3. In graphical solution, the Isoprofit line moves away from the origin to towards the far
off point in maximization problem and in minimization problem, the Isocost line moves
from far off distance towards origin to reach the nearest point to origin.
4. In graphical method, the areas outside the feasible area (area covered by all the lines of
constraints in the problem) indicates idle capacity of resource where as in Simplex
method, the presence of slack variable indicates the idle capacity of the resources.
5. In graphical solution, if the Isoprofit line coincides with more than one point of the
feasible polygon, then the problem has second alternate solution. In case of Simplex
method the net evaluation row has zero for non-basis variable the problem has alternate
solution. (If two alternative optimum solutions can be obtained, the infinite number of
optimum, solutions can be obtained).
However, as discussed in the fourth coming discussion, the beauty of the simplex method lies
in the fact that the relative exchange profitability’s of all the non-basis variables (vectors) can
be determined simultaneously and easily; the replacement process is such that the new basis
does not violate the feasibility of the solution.
3.3. MAXIMISATION CASE
Problem 3.1: A factory manufactures two products A and B on three machines X, Y, and Z.
Product A requires 10 hours of machine X and 5 hours of machine Y a one hour of machine Z.
The requirement of product B is 6 hours, 10 hours and 2 hours of machine X, Y and Z
respectively. The profit contribution of products A and B are Birr. 23 per unit and Birr. 32 per
unit respectively. In the coming planning period the available capacity of machines X, Y and Z
are 2500 hours, 2000 hours and 500 hours respectively. Find the optimal product mix for
maximizing the profit.

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ADDIS ABABA MEDICAL & BUSINESS COLLEGE MBA PROGRAMME QUANTITATIVE ANALYSIS FOR DECISIONS-MAKING

Solution:
The given data is:

Products Capacity/Availability
A hrs. B hrs.
Machines in hours
X 10 6 2500
Y 5 10 2000
Z 1 2 500
Profit in Birr. Per unit 23 32

Let the company manufactures a units of A and b units of B. Then the inequalities of the
constraints (machine capacities) are:
Maximize Z = 23 x1 + 32 x2 OBJECTIVE FUNCTION
S.T. 10 x1 + 6 x2 ≤ 2500
5 x1 + 10 x2 ≤ 2000 STRUCTURAL CONSTRAINTS.
1 x1 + 2 x2 ≤ 500
and both x1 and x2 are ≥ 0. NON-NEGATIVITY CONSTRAINT
Now the above inequalities are to be converted into equations.
Take machine X: One unit of product A requires 10 hours of machine X and one unit of
product B require 6 units. However, company is manufacturing x1 units of A and x2 units of B,
hence both put together must be less than or equal to 2,500 hours. Suppose x1 =10 & x2 = 10
then the total consumption is 10 × 10 + 6 × 10 = 160 hours. That is out of 2,500 hours, 160
hours are consumed, and 2,340 hours are still remaining idle. So if we want to convert it into
an equation then 100 + 60 + 2,340 = 2,500. As we do not know the exact values of decision
variables x1and x2 how much to add to convert the inequality into an equation. For this we
represent the idle capacity by means of a SLACK VARIABLE represented by S. Slack variable
for first inequality is S1, that of second one is S2 and that of nth inequality is Sn
Regarding the objective function, if we sell one unit of A it will fetch the company Birr. 23 per
unit and that of B is Birr. 32 per unit. If company does not manufacture A or B, all resources
remain idle. Hence, the profit will be Zero Birr. This clearly shows that the profit contribution
of each hour of idle resource is zero. In Linear Programming language, we can say that the

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ADDIS ABABA MEDICAL & BUSINESS COLLEGE MBA PROGRAMME QUANTITATIVE ANALYSIS FOR DECISIONS-MAKING

company has capacity of manufacturing 2,500 units of S1, i.e., S1 is an imaginary product,
which require one hour of machine X alone. Similarly, S2 is an imaginary product requires one
hour of machine Y alone and S3 is an imaginary product, which requires one hour of machine
Z alone. In simplex language S1, S2 and S3 are idle resources. The profit earned by keeping all
the machines idle is Birr.0. Hence, the profit contributions of S1, S2 and S3 are Birr.0 per
unit.
By using this concept, the inequalities are converted into equations as shown below:
Maximize Z = 23 x1 + 32 x2 + 0S1 + 0S2 + 0S3
S.T. 10 x1 + 6 x2 + 1S1 = 2500
5 x1 + 10 x2 + 1S2 = 2000
1 x1 + 2 x2 + 1S3 = 500
and x1, x2, S1, S2 and S3 all ≥ 0.
In Simplex version, all variables must be available in all equations. Hence the Simplex format
of the model is:
Maximize Z = 23 x1 + 32 x2 + 0 S1 + 0 S2 + 0 S3
S.T. 10 x1 + 6 x2 + 1S1 + 0S2 + 0S3 = 2500
5 x1 + 10 x2 + 0 S1 + 1S2 + 0S3 = 2000
1 x1 + 2 x2 + 0 S1 + 0S2 + 1S3 = 500
and x1, x2, S1, S2 and S3 all ≥ 0.
The above data is entered in a table known as simplex table (or tableau). There are many
versions of table but in this note only one type is used.
In Graphical method, while finding the profit by Isoprofit line, we use to draw Isoprofit line at
origin and use to move that line to reach the far off point from the origin. This is because
starting from zero Birr profit; we want to move towards the maximum profit. Here also, first
we start with zero Birr profit, i.e., considering the slack variables as the basis variables
(problem variables) in the initial programme and then improve the programme step-by-step
until we get the optimal profit. Let us start the first programme or initial programme by
rewriting the entries as shown in the above simplex table.
Simplex table 1

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ADDIS ABABA MEDICAL & BUSINESS COLLEGE MBA PROGRAMME QUANTITATIVE ANALYSIS FOR DECISIONS-MAKING

Profit or 23 32 0 0 0 Quantity or Replaceme


Contribution Body matrix Identity matrix Capacity or nt Ratio
per unit Cj Constraints
CB BV/SV X1 X2 S1 S2 S3 bi (R.H.S) RR
0 S1 10 6 1 0 0 2500/6 416.7
0 S2 5 10 0 1 0 2000/10 200
0 S3 1 2 0 0 1 500/2 250
Zj 0 0 0 0 0 0 0
Cj-Zj 23 32 0 0 0

Interpretation:

1. The first row indicates the coefficients Cj of the variables in the objective function and
they are unchanged in the subsequent tables.
2. The first column CB represents the coefficients of the Current Basic variables in the
obj. fun. This column shows the values of the basic variables, the value of such non
basic variable is = 0
3. The second column is the basis column and it represents the Basic variables or Solution
variables (BV/SV) of the current solution. (S1, S2 and S3)
4. The body matrix (coefficient matrix) represents the coefficients of the constraints.
These coefficients represent the amount of resource required to make a unit of decision
variable.
5. The identity matrix represents the coefficients of slack variables in the constraints.
6. The bi-column/solution values Quantity or Capacity or Constraints (Q) column
indicates the quantities of the variable resources or R.H.S values of the constraints or
values of the basic variables, S1 and S2 in the initial basic solution.
7. The number in Zj row under each column variable gives the total gross amount of
outgoing profit when we consider the exchange between one unit of the column
variable and the basic Variable.
The numbers in the net-evaluation row, under each column represent the opportunity
cost of not having one unit of the respective column variables in the solution. In other

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ADDIS ABABA MEDICAL & BUSINESS COLLEGE MBA PROGRAMME QUANTITATIVE ANALYSIS FOR DECISIONS-MAKING

words, the numbers represent the potential improvement in the objective function that
will result by introducing into the programme one unit of the respective column
variable.

The interpretation of the elements in the first table


1. In the first column, labelled as Profit per unit in Birr shows the profit co-efficient of the
basic variables i.e., CB. In this column, we enter the profit co-efficient of the variables
in the program. In table 1, we have S1, S2 and S3 as the basic variables having Birr.0.00
as the profit and the same is entered in the programme.
2. The second column, BV/SV is the problem variables or basis variables that are included
in the solution or the company is producing at the initial stage. These are S1, S2 and S3,
which are known as basic variables.
3. In the quantity column, that is Q (R.H.S) column, the values of the basic variables in
the programme or solution i.e., quantities of the units currently being produced are
entered. In this table, S1, S2 and S3 are being produced and the units being produced
(available idle time) is entered i.e., 2500, 2000 and 500 respectively for S1, S2 and S3.
The variables that are not present in this column are known as non-basic variables. The
values of non-basis variables (x1 and x2) are ZERO; this is shown at the top of the table
(solution row).
4. In any programme, the profit contribution, resulting from manufacturing the quantities
of basic variables in the quantity column is the sum of product of quantity column
element and the profit column element.
In the present table the total profit is Z = 2500 × 0 + 2000 × 0 + 500 × 0 = Birr. 0.00.
5. The elements under column of non-basic variables, i.e., x1 and x2 (or the main body of
the matrix) are interpreted to mean physical ratio of distribution if the programme
consists of only slack variables as the basic variables. Physical ratio of distribution
means, at this stage, if company manufactures one unit of ‘x1’ then 10 units of S1, 5
units of S2 and 1 unit of S3 will be reduced or will go out or to be scarified. By
sacrificing the basic variables, the company will lose the profit to an extent the sum of

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ADDIS ABABA MEDICAL & BUSINESS COLLEGE MBA PROGRAMME QUANTITATIVE ANALYSIS FOR DECISIONS-MAKING

product of quantity column element and the profit column element. At the same time it
earns a profit to an extent of product of profit co-efficient of incoming variable and
the number in the quantity column against the just entered (in coming) variable.
6. Coming to the entries in the identity matrix, the elements under the variables, S1, S2 and
S3 are unit vectors, hence we apply the principle of physical ratio of distribution, one
unit of S1 replaces one unit of S1 and so on. Ultimately, the profit is zero only. In fact
while doing successive modifications in the programme towards getting optimal;
solution, finally the unit matrix transfers to the main body. This method is very much
similar with G.J. method (Gauss Jordan) method in matrices, where we solve
simultaneous equations by writing in the form of matrix. The only difference is that
in G.J method, the values of variables may be negative, positive or zero. However, in
Simplex method as there is non-negativity constraint, the negative values for
variables are not accepted.
7. Cj at the top of the columns of all the variables represent the coefficients of the
respective variables i the objective function.
8. The number in the Zj row under each variable gives the total gross amount of outgoing
profit when we consider the exchange between one unit of column, variable and the
basic variables.
9. The number in the net evaluation row, Cj – Zj row gives the net effect of exchange
between one unit of each variable and basic variables. This they are zeros under
columns of S1, S2 and S3. A point of interest to note here is the net evaluation element of
any basis variable (or problem variable) is ZERO only. Suppose variable ‘x1’ becomes
basis variable, the entry in net evaluation row under ‘x1’ is zero and so on. Generally,
the entry in net evaluation row is known as OPPORTUNITY COST.
Opportunity cost means for not including a particular profitable variable in the programme
the manufacturer has to lose the amount equivalent to the profit contribution of the variable.
In the present problem the net evaluation under the variable ‘x1’ is Birr. 23 per unit and that of
‘x2’ is Birr, 32 per unit. Hence the if the company does not manufacture ‘x1’ at this stage it has
to face a penalty of Birr. 23 for every unit of ‘x1’ for not manufacturing and the same of

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ADDIS ABABA MEDICAL & BUSINESS COLLEGE MBA PROGRAMME QUANTITATIVE ANALYSIS FOR DECISIONS-MAKING

product variable ‘x2’ is Birr. 32. Hence the opportunity cost of product ‘x2’ is higher than that
of ‘x1’ hence ‘x2’ will be the incoming variable.
In general, select the variable, which is having higher opportunity cost as the incoming
variable or select the variable, which is having highest positive number in the net evaluation
row.
In this problem, variable ‘x2’ is having higher opportunity cost; hence it is the incoming
variable. This should be marked by an arrow ( ↑ ) at the bottom of the column and enclose the
elements of the column in a rectangle this column is known as KEY COLUMN. The elements
of the key column show the substitution ratios, i.e., how many units of slack variable goes
out when the variable enters the programme.
Divide the capacity column elements by key column numbers to get REPLACEMENT
RATIO COLUMN ELEMENTS, which show that how much of variable ‘x2’ can be
manufactured in each department, without violating the given constraints.
Select the lowest replacement ratio and mark a tick ( ) at the end of the row, which
indicates OUT GOING VARIABLE. Enclose the elements of this column in a rectangle,
which indicates KEY ROW, indicating outgoing variable. We have to select the lowest
element because this is the limiting ratio, so that, that much of quantity of product can be
manufactured on all machines or in all departments as the case may be. In the problem 200
units is the limiting ratio, which falls against S2, i.e., S2 is the outgoing variable.
This means that the entire capacity of machine Y is utilized. By manufacturing 200 units of
‘x2’, 6 × 200 = 1200 hours of machine X is consumed and 2 × 200 = 400 hours of machine Z is
consumed. Still 2500 – 1200 = 1300 hours of machine X and 500 – 400 = 100 units of machine
Z remains idle. This is what exactly we see in graphical solution when two lines of the
machines are superimposed.
The element at the intersection of key column and key row is known as KEY NUMBER
(Pivot Point). This is known as key number because with this number we have to get the next
table.
For getting the revised programme, we have to transfer the rows of table 1 to table 2.
To do this the following procedure is used:-
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ADDIS ABABA MEDICAL & BUSINESS COLLEGE MBA PROGRAMME QUANTITATIVE ANALYSIS FOR DECISIONS-MAKING

Step 1: To Write the incoming variable ‘x2’ in place of outgoing variable S2 Enter the profit of
‘x2’ in profit column. Do not alter S1 and S3. While doing so Do not alter the position of the
rows.
Step 2: Dividing the elements of old column by key column elements obtains capacity
column elements.
Step 3: Transfer of key row: Divide all elements of key row by respective key column
number.
Step 4: Transfer of Non-Key rows: NEW ROW NUMBER = (old row number – corresponding
key row number) × fixed ratio. Fixed ratio = Key column number of the row/key number.
Step 5: Elements of Net evaluation row are obtained by:
Objective row element at the top of the row –  key column element x profit column element
Step 6: Select the highest positive element in net evaluation row or highest opportunity cost
and mark the column by an arrow to indicate key column (incoming variable).
Step 7: Find the replacement ratios by dividing the capacity column element in the row by key
column element of the same row and write the ratios in replacement ratio column. Select the
limiting (lowest) ratio and mark with a tick mark to indicate key row (outgoing variable).
The element at the intersection of key column and key row is known as key number.
Continue these steps until we get:
i. For maximization problem, all elements of net evaluation row must be either zeros or
negative elements.
ii. For Minimization problem, the elements of net evaluation row must be either zeros or
positive elements.

Table: 2.
Solution: S1 = 1,300, S2 = 0, S3 = 100, x1 = 0, x2 = 200, Z = 32 × 200 = Birr. 6400.

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ADDIS ABABA MEDICAL & BUSINESS COLLEGE MBA PROGRAMME QUANTITATIVE ANALYSIS FOR DECISIONS-MAKING

Profit or 23 32 0 0 0 Quantity or Replacement


Contribution Body matrix Identity matrix Capacity or Ratio
per unit Cj Constraints
CB BV/SV X1 X2 S1 S2 S3 bi (R.H.S) RR
0 S1 7 0 1 -3/5 0 1300/7 185.71
32 X2 1/2 1 0 1/10 0 200/1/2(0.5) 400
0 S3 0 0 0 -1/5 1 100 0
Zj 16 32 0 16/5 0 6400 0
Cj-Zj 7 1 0 -16/5 0 0

Solution: R2= 1/10 X R2


R1= -6R2(new)+R1(old)
R3= -2R2(new)+R3(old)
R2= 1/10 X R2 R1= -6R2(new)+R1(old) R3= -2R2(new)+R3(old)
X1=1/10 X5=5/10= 1/2 X1= (-6X1/2) +10=-3+10=7 X1= (-2X1/2) +1= -1/1= 0
X2=1/10 X10=10/10 = 1 X2= (-6X1) +6 = 0 X2=(-2X1) +2= 0
S1=1/10 X0= 0 S1=(-6X0) + 1=1 S1=(-2X0) +0=0
S2=1/10 X1= 1/10 S2=(-6X1/10) +0= -3/5 S2=(-2X1/10) +0= -1/5
S3=1/10 X0= 0 S3=(-6X0) + 0= 0 S3=(-2X0) +1=1
R.H.S =1/10 X2000/10= 200 R.H.S =(-6X200) +2500=1300 R.H.S = (-2X200) +500= 100

Solution:

1. Transfer of Key row: 2000/10, 5 /10, 10 /10, 0 /10, 1 / 10, 0 / 10


2. Transfer of Non-key rows:
Rule: (Old row Number – corresponding key row number) – key column number / key number
= new row no.
1st row. 2500 – 2000 × 6/10 = 1300 2nd row: 500 – 2000 × 2/10 = 100
10 – 10 × 6/10 = 0
6 – 10 × 6/10 = 0 1 – 5 × 2/10 = 0
1 – 0 × 6/10 = 1 2 – 10 × 2/10 = 0
0 – 1 × 6/10 = – 0.6 0 – 0 × 2/10 = 0
0 – 0 × 6/10 = 0 0 – 1 × 2/10 = – 0.2
1 – 0 × 2 / 10 = 1
Replacement ratios: 1300/7 = 185.7, 200/0.5 = 400, 100/0 = Infinity.

Net evaluation row elements =


Column under ' x1' = 23 – (7 × 0 + 0.5 × 32 + 0 × 0) = 23 – 16 = 7
' x2' = 32 – (0 × 0 + 1 × 32 + 0 × 0) = 32 – 32 = 0
S1 = 0 – (1 × 0 + 0 × 32 + 0 × 0) = 0
S2 = 0 – (– 0.6 × 0 + 0.1 × 32 + –0.2 × 0) = – 3.2

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ADDIS ABABA MEDICAL & BUSINESS COLLEGE MBA PROGRAMME QUANTITATIVE ANALYSIS FOR DECISIONS-MAKING

S3 = 0 – (0 × 0 + 0 × 32 + 1 × 0) = 0
In the above table, the net evaluation under S2 is – 3.2. This resource is completely utilized to
manufacture product B. The profit earned by manufacturing B is Birr. 6400/–. As per the law
of economics, the worth of resources used must be equal to the profit earned.
Hence the element 3.2 (ignore negative sign) is known as economic worth or artificial
accounting price (technically it can be taken as MACHINE HOUR RATE) of the resources
or shadow price of the resource. (In fact, all the elements of reevaluation row under slack
variables are shadow prices of respective resources). This concept is used to check whether
the problem is done correctly or not. To do this MULTIPLY THE ELEMENTS IN NET
EVALUATION ROW UNDER SLACK VARIABLES WITH THE ORIGINAL CAPACITY
CONSTRAINTS GIVEN IN THE PROBLEM AND FIND THE SUM OF THE SAME.
THIS SUM MUST BE EQUAL TO THE PROFIT EARNED BY MANUFACTRUING
THE PRODUCT.
Σ Shadow prices of resources used must be equal to the profit earned.
Table: 3.

Profit or 23 32 0 0 0 Quantity or
Contribution Capacity or
per unit Cj Constraints
Body matrix Identity matrix
CB BV/SV X1 X2 S1 S2 S3 bi (R.H.S)
23 x1 1 0 1/7 -3/5 0 185.714
32 x2 0 1 -1/14 2/35 0 107.143
0 S3 0 0 0 -1/5 1 100
Zj 23 32 1 5 0 7700(7699.998
Cj-Zj 0 0 -1 -5 0
Solution:
R1= 1/7 R1(old)
R2= -1/10 X R1(new)+R2(old)
R3= R3(old)as it is

R1= 1/7 R1(old) R2= -1/10 X R1(new)+R2(old) R3= R3(old)as it is


X1=1/7 X 7= 1 X1= (-1/2X1) +1/2=0 X1= (-2X1/2) +1= -1/1= 0
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ADDIS ABABA MEDICAL & BUSINESS COLLEGE MBA PROGRAMME QUANTITATIVE ANALYSIS FOR DECISIONS-MAKING

X2=1/7 X 0 = 0 X2= (-1/2X0) +1 = 1 X2=(-2X1) +2= 0


S1=1/7 X1 = 1/7 S1= (-1/2X1/7)+ 0=-1/14 S1=(-2X0) +0=0
S2=1/7 X-3/5 = -3/35 S2= (-1/2X-3/35)+1/10= 2/35 S2=(-2X1/10) +0= -1/5
S3=1/7 X0 = 0 S3= (-1/2X0)+ 0= 0 S3=(-2X0) +1=1
R.H.S =1/7 X 1300= 185.714 R.H.S =(-1/2X185.714) + R.H.S = (-2X200) +500= 100
2000=107.143

Transfer of key row: 1300/7 = 185.7, 7/7 = 1, 0/7 = 0, 1/7 = 0.143, –3 /5 = – 0.086 0/7 = 0
Row No. 2 Row No.3 As the fixed ratio will be zero for this row the row elements will not
change.
200 – 1300 × 1/14 = 107.14
0.5 – 7 × 1/14 = 0
1 – 0 × 1/14 = 1
0 – 1 × 1/14 = – 0.07
0.1 – (– 0.6) × 1/14 = 0.143
0 – 0 × 1/14 = 0
Net evaluation row elements:
For ‘x1’ = 23 – 1 × 23 + 0 × 32 + 0 × 0 = 0
For ‘x2’ = 32 – 0 × 23 + 1 × 32 +0 × 0 = 0
For S1 = 0 – 0.143 × 23 + ( – 0.07 × 32) + 0 × 0 = –1
For S2 = 0 – (–0.086 × 23) + 0.143 × 32 + (– 0.02 × 0) = – 2.6
For S3 = 0 – 0 × 23 + 0 × 32 + 1 × 0 = 0
Profit Z = 185.7 × 23 + 107.14 × 32 = Birr. 7,700
Shadow price = 1 × 2500 + 2.6 × 2000 = Birr. 2500 + 5200 = Birr. 7700/–
As all the elements of net evaluation row are either negative elements or zeros, the solution is
optimal. Also the profit earned is equal to the shadow price.
The answer is the company has to manufacture: 185.7 units of x1 and 107.14 units of x2 and
the optimal return is Z = Birr. 7,700/–
Remarks:

1. The optimal solution obtained above satisfies the non-negativity restrictions. It indicates that no
other set of values of x1 and x2 results in as high value of Z.

2. Slack variable s1 and s2 does not exist in the basis column. This means that the first and the second
resources are fully utilized. However, s3 exists in the basis column and its value is 100. This
means 100 units of the 3rd resources remains unutilized.

Maximize Z = 23 x1 + 32 x2 + 0S1 + 0S2 + 0S3


S.T. 10 x1 + 6 x2 = 2500

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ADDIS ABABA MEDICAL & BUSINESS COLLEGE MBA PROGRAMME QUANTITATIVE ANALYSIS FOR DECISIONS-MAKING

5 x1 + 10 x2 = 2000
1 x1 + 2 x2 = 500
Maximize Z = 23 (185.714) + 32 (107.147) + 0S1 + 0S2 + 0S3 =7,700
10 (185.714) + 6 (107.147) = 2500
5 (185.714) + 10 (107.147) = 2000
1 (185.714) + 2 (107.147) = 400
S3=100 resources remains unutilized.
3.4. MINIMIZATION CASE
Above we have discussed how to solve maximization problem and the mechanism or simplex
method and interpretation of various elements of rows and columns. Now let us see how to
solve a minimization problem and see the mechanism of the simplex method in solving and
then let us deal with some typical examples so as to make the reader confident to be confident
enough to solve problem individually.
 Minimize Z with inequalities of constraints in “> “form
There are two methods to solve minimization LP problems:
1. Direct method/Big M-method/
 Using artificial variables
2. Conversion method
 Minimization by maximizing the dual
 Surplus Variable (-s):
 A variable inserted in a greater than or equal to constraint to create
equality. It represents the amount of resource usage above the minimum required
usage.
 Surplus variable is subtracted from a > constraint in the process of
converting the constraint to standard form.
 Neither the slack nor the surplus is negative value. They must be positive
or zero.
 Artificial variable (A):
Artificial variable is a variable that has no meaning in a physical sense but acts as a tool to create an
initial feasible LP solution.

Note:

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ADDIS ABABA MEDICAL & BUSINESS COLLEGE MBA PROGRAMME QUANTITATIVE ANALYSIS FOR DECISIONS-MAKING

Type of constraint To put into standard form

< --------------------------------------------- Add a slack variable

= ---------------------------------------------Add an artificial variable

> ---------------------- Subtract a surplus variable and add artificial variable

1. Big M-method /Charnes Penalty Method/


The Big-M Method is a method which is used in removing artificial variables from the
basis .In this method; we assign coefficients to artificial variables, undesirable from the
objective function point of view. If objective function Z is to be minimized, then a very large
positive price (called penalty) is assigned to each artificial variable. Similarly, if Z is to be
maximized, then a very large negative price (also called penalty) is assigned to each of these
variables.
Following are the characteristics of Big-M Method:
a. High penalty cost (or profit) is assumed as M
b. M is assigned to artificial variable A in the objective function Z.
c. Big-M method can be applied to minimization as well as maximization problems with the
following distinctions:
i. Minimization problems
Assign +M as coefficient of artificial variable A in the objective function Z
ii. Maximization problems:
Here –M is assigned as coefficient of artificial variable A in the objective function Z
d. Coefficient of S (slack/surplus) takes zero values in the objective function Z
e. For minimization problem, the incoming variable corresponds to the highest negative
value of Cj-Zj.
f. Solution is optimal when there is no negative value of Cj-Zj.(For minimization case)

Comparison between maximization case and minimization case

No Maximization case Minimization case


.
Similarities: Similarities:
1 It has an objective function. This too has an objective function
2 It has structural constraints This too has structural constraints
3 The relationship between variables and The relationship between variables and
4 It has non-negativity constraint. It has non-negativity constraint.

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ADDIS ABABA MEDICAL & BUSINESS COLLEGE MBA PROGRAMME QUANTITATIVE ANALYSIS FOR DECISIONS-MAKING

5 The coefficients of variables may be The coefficients of variables may be positive


positive
6 For selecting outgoing variable (key row) For selecting outgoing variable (key row)
Differences: Differences:
1 The objective function is of maximization type. The objective function is of minimization type.
2 The inequalities are of ≤ type. The inequalities are of ≥ type.
3 To convert inequalities into equations, slack To convert inequalities into equations, surplus
variables are added Variables are subtracted and artificial
surplus variables are added
4 While selecting incoming variable, highest While selecting incoming variable, lowest
positive Opportunity cost is selected from net element in the net evaluation row is selected
evaluation Row (highest number with negative sign).
5 When the elements of net evaluation row are When the element of net evaluation row are
either Negative or zeros, the solution is optimal either positive or zeros the solution is optimal

It is most advantageous to introduce minimization problem by dealing with a well-known


problem, known as diet problem.
Problem 3.2: In this problem, a patient visits the doctor to get treatment for ill health. The
doctor examines the patient and advises him to consume at least 40 units of vitamin A and 50
units of vitamin B daily for a specified time period. He also advises the patient that to get
vitamin A and vitamin B he has to drink tonic X and tonic Y that have both vitamin A and
vitamin B in a proportion. One unit of tonic X consists 2 units of vitamin A and 3 units of
vitamin B and one unit of tonic Y consists of 4 units of vitamin A and 2 units of vitamin B.
These tonics are available in medical shops at a cost of Birr.3.00 and Birr.2.50 per unit of X
and Y respectively. Now the problem of patient is how much of X and how much of Y is to be
purchased from the shop to minimize the total cost and at the same time he can get required
amounts of vitamins A and B.
First we shall enter all the data in the form of a table.

Tonics
X Y
Vitamins Daily requirement in units
A 2 4 40
D 3 2 50
Cost in Birr. Per unit 3 2.50

Let the patient purchase ‘x1’ units of X and ‘x2’ units of Y then the inequalities are (Note: the

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ADDIS ABABA MEDICAL & BUSINESS COLLEGE MBA PROGRAMME QUANTITATIVE ANALYSIS FOR DECISIONS-MAKING

condition given in the problem is AT LEAST hence the inequalities are of ≥ type)
Inequalities:
For vitamin A: Minimize Z = 3 x1 + 2.5 x2
S.T 2 x1 + 4 x2 ≥40
3 x1 + 2 x2 ≥50 And both x1 and x2 are ≥0.
In the above inequalities, say 2 x1 + 4 x2 ≥ 40, if we give values to x and y such that the sum is
greater than or equal to 40, for example, x1 = 10 and x2 = 10 then 2 x1 + 4 x2 = 60 which is >
40. To make it equal to 40 we have to subtract 20, so that 20 + 40 – 20 = 40. When we know
the values, we can do this. But as we do not know the values of x1 and x2 we have to subtract a
SURPLUS VARIABLE, generally represented by ‘-S’.
If we do this then the inequality 2 x1 + 4 x2 ≥ 40 will be
2 x1 + 4 x2 – 1S = 40.
Now if we allocate value zero to x1 and x2 then 0 + 0 – 1S = 40 or S = – 40.
This is against to the rules of LPP as every LPP the values of variables must be ≥ 0. Hence, in
minimization problem, we introduce one more Surplus variable, known as ARTIFICIAL
SURPLUS VARIABLE generally represented by A1, A2, A3 … etc. Now by introducing
artificial surplus variable, we can write 2 x1 + 4 x2 = 40 as 2 x1 + 4 x2 –1S + 1A1 = 40.
If values of x1, x2, and -S are equal to zero, then 1A1 = 40. The artificial surplus variable has the
value 40, a positive integer. Hence we start our initial programme with the artificial variables,
A1, A2, A3 etc. and go on replacing them by x1, x2, z etc. that is decision variables.
Coming to the cost coefficients of surplus and artificial surplus variables, for example, -S is
very similar to vitamin A and one unit of -S consists of only one unit of vitamin A. It will
come as give away product when we purchase vitamin A. That is the cost coefficient of ‘S’ is
zero (it is very much similar to slack variable in maximization problem). But the artificial
surplus variable has to be purchased by paying a very high price for it. In character, it is very
much similar to surplus variable ‘-S’ because one unit of A1 consists of one unit of vitamin A.
The cost coefficient of A1 is represented by a very high value represented by M (which means
one unit of A1 cost Millions or Birr).
As we are introducing CAPITAL “M”, this method is known as BIG “M” METHOD.
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ADDIS ABABA MEDICAL & BUSINESS COLLEGE MBA PROGRAMME QUANTITATIVE ANALYSIS FOR DECISIONS-MAKING

By using the above concept, let us write the equations of the inequalities of the problem.
Minimize Z = 3 x1 + 2.5 x2 + 0S1 + 0S2 + M A1 + M A2
S.T. Objective Function. 2 x1 + 4 x2 – 1 S1 + 1A1 = 40
3 x1 + 2 x2 – 1 S2 + 1 A2 = 50 Structural Constraints.
and x1, x2, S1, S2, A1, A2 all ≥ 0 Non negativity Constraint.
Simplex format of the above is:
Minimize Z = 3 x1 + 2.5 x2 + 0S1 + 0S2 + M A1 + M A2
S.T. 2 x1 + 4 x2 – 1 S1 + 0 S2 + 1A1 + 0A2 = 40
3 x1 + 2 x2 + 0 S1 – 1 S2 + 0A1 + 1A2 = 50
and x1, x2, S1S2, A1, A2 all = 0.
Let us enter the data in the Initial table of Simplex method.

Table: 1.
x1 = 0, x2 = 0, S1 = 0, S2 = 0 A1 = 40, Z = Birr. 40M + 50M = 90M

Cj 3 2.5 0 0 M M requirement Replacement


ratio
CB BV/SV X1 X2 -S1 -S2 A1 A2 bi R.H.S
M A1 2 4 -1 0 1 0 40 40/4=10
M A2 3 2 0 -1 0 1 50 50/2.5=25
Zj 5M 6M -1M -1M 1M 1M M90
Cj-Zj 3-5M 2.5-6M 0 M M 0 0

Note: As the variables A1 and A2 are basis variables, their Net evaluation is zero.

Now take 6M and 5M, 6 M is greater and if we subtract 2.5 from that it is negligible.
Hence –6M will be the lowest element. The physical interpretation is if patient purchases Y
now, his cost will be reduced by an amount 6M. In other words, if the patient does not
purchase the Y at this point, his penalty is 6M, i.e., the opportunity cost is 6M. As the non-
basis variable Y has highest opportunity cost (highest element with negative sign), Y is the
incoming variable. Hence, the column under Y is key column.
To find the outgoing variable, divide requirement column element by key column element and
find the replacement ratio. Select the lowest ratio, i.e., here it is 10, falls in first row, hence A1
is the outgoing variable.

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ADDIS ABABA MEDICAL & BUSINESS COLLEGE MBA PROGRAMME QUANTITATIVE ANALYSIS FOR DECISIONS-MAKING

To transfer key row, divide all the elements of key row by key number (= 4).
40/4 = 10, 2/4 = 0.5, –1/4 = – 0.25, 0/25 = 0, 1/25 = 0.25, 0/4 = 0.
To transfer non-key row elements:
New row element = old row element – corresponding Key row element × (Key column
number/key number).
50 – 40 × 2/4 = 30
3 – 2 × 0.5 = 2
2 – 4 × 0.5 = 0
0 – (–1) × 0.5 = 0.5
–1 – 0 × 0.5 = – 1
0 – 1 × 0.5 = – 0.5
1 – 0 × 0.5 = 1
Note:
i. The elements under A1 and A2 i.e., artificial variable column are negative versions
of elements under artificial variable column.
ii. The net evaluation row elements of basis variables are always zero. While writing
the second table do not change the positions of the rows)
Let us now enter the new elements of changed rows in the second simplex table.
Table: 2.
X1 = 0, X2 = 10, S1 = 0, S2 = 0, A1 = 0, A2 = 30 and Z = Birr. 10 × 2.5 = Birr. 25.00

Cj 3 2.5 0 0 M M requireme Replacement


nt ratio
CB BV/SV X1 X2 -S1 -S2 A1 A2 bi R.H.S
X2 2.5 0.5 1 -0.25 0 0.25 0 10 10/0.5=20
A2 M 2 0 0.5 -1 -0.5 1 30 30/2=15
Zj 1.25+2M 2.5 0.5M- -M 0.625-.5M M
0.625
Cj-Zj 1.75 -2M 0 0.625-.5M M 1.5M-0.625 0

Changing the key row: 30/2 = 15, 2/2 = 1, 0/2 = 0, 0.5/2 = 0.25, –1/2 = –0.5, –0.5/2 = –0.25,
1/2 = 0.5.
Changing the non key row:
10 – 30 × 0.5/2 = 2.5
0.5 – 2 × 0.25 = 0
1 – 0 × 0.25 = 1

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ADDIS ABABA MEDICAL & BUSINESS COLLEGE MBA PROGRAMME QUANTITATIVE ANALYSIS FOR DECISIONS-MAKING

–0.25 – 0.5 × 0.25 = –0.375


0 – (–1) × 0.25 = 0.25
0.25 – (–0.5) × 0.25 = 0.375
0 – 1 × 0.25 = – 0.25
Entering the above in the simplex table 3.

Table: 3.
X1 = 15, X2 = 2.5, S1 = 0, S2 = 0 , A1 = 0, A2 = 0 and Z = Birr. 15 × 3 + Birr. 2.5 × 2.5 = 45 +
6.25 = Birr. 51.25
Cj 3 2.5 0 0 M M requirement

CB BV/SV X1 X2 -S1 -S2 A1 A2 bi R.H.S


X2 2.5 0 1 -0.375 0.25 0.375 -0.25 2.5
X1 3 1 0 0.25 -0.5 -0.25 0.5 15
Zj 3 2.5 -0.188 0.875 0.188 0.875
Cj-Zj 0 0 0.188 0.875 M-0.188 M-0.875
Optimal Cost = Z* = 3 × 15 + 2.5 × 2.5 = 45 + 6.25 =Birr. 51.25
Imputed value = 0.1875 × 40 + 0.875 × 50 = 7.5 + 43.75 = Birr. 51.25.
As all the elements of net evaluation row are either zeros or positive elements the solution
is optimal. The patient has to purchase 15 units of X2 and 2.5 units of X1 to meet the
requirement and the cost is Birr. 51.25/–
While solving maximization problem, we have seen that the elements in net evaluation row,
i.e., (Cj – Zj) row associated with slack variables represent the marginal worth or shadow price
of the resources. In minimization problem, the elements associated with surplus variables in
the optimal table represent the marginal worth or imputed value of one unit of the required
item. In minimization problem, the imputed value of surplus variables in optimal solution
must be equal to the optimal cost.
CERTAIN IMPORTANT POINTS TO BE REMEMBERED WHILE SOLVING
LINEAR PROGRAMMING PROBLEMS BY SIMPLEX METHOD:
1. In the given inequalities, there should not be any negative element on right hand side
(bi ≥0). If any bi is negative, multiply the inequality by –1 and change the inequality
sign.

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2. Sometimes, the objective function may be maximization type and the inequalities may
be ≥ type. In such cases, multiply the objective function by –1 and convert it into
minimization type and vice versa.
3. While selecting, the incoming variable, i.e., key column, in maximization case, we have
to select the highest positive opportunities cost and in minimization case, select the
highest element with negative sign (smallest element). While doing so, sometimes you
may find the highest positive element in maximization case or lowest element in
minimization case falls under the slack variable in maximization case or under surplus
variable in minimization case. Do not worry. As per rule, select that element and take
the column containing that element as key column.
4. Sometimes the columns of non-basis variables (decision variables) may have their net
evaluation elements same. That is the net evaluation elements are equal. This is known
as a TIE in Linear Programming Problem. To break the time, first select any one
column of your choice as the key column. In the next table, everything will go right.
5. While selecting the outgoing variable i.e., key row, we have to select limiting ratio
(lowest ratio) in net evaluation row. In case any element of key column is negative, the
replacement ratio will be negative. In case it is negative, do not consider it for
operation. Neglect that and consider other rows to select outgoing variable.
6. Sometimes all the replacement ratios for all the rows or some of the rows may be equal
and that element may be limiting ratio. This situation in Linear Programming Problem
is known as DEGENERACY. We say that the problem is degenerating. When the
problem degenerate, the following precautions are taken to get rid of degeneracy
a) Take any one ratio of your choice to select key row or outgoing variable. If you do this,
there is a possibility that the problem may cycle. Cycling means, after doing many
iterations, you will get the first table once again. But it may not be the case all times.
b) Select the variable, whose subscript is small. Say S1 is smaller than S2 and S2 is smaller
than S3 or X1 is smaller than X2 an so on or x is smaller than y or ‘a’ is smaller than ‘b’
and so on.

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ADDIS ABABA MEDICAL & BUSINESS COLLEGE MBA PROGRAMME QUANTITATIVE ANALYSIS FOR DECISIONS-MAKING

c) If we do above two courses of action, we may encounter with one problem. That one of
the remaining variable in the next table (the one corresponding to the tied variable that
was not considered) will be reduced to a magnitude of zero. This causes trouble in
selecting key column in the next table.
d) Identify the tied variable or rows. For each of the columns in the identity (starting with
the extreme left hand column of the identity and proceeding one at a time to the right),
compute a ratio by dividing the entry in each tied row by the key column number in that
row. Compare these ratios, column by column, proceeding to the right. The first time
the ratios are unequal, the tie is broken. Of the tied rows, the one in which the smaller
algebraic ratio falls is the key row.
e) If the ratios in the identity do not break the tie, form similar ratios in the columns of the
main body and select the key row as described in (d) above. The application of the
above we shall see when we deal with degeneracy problems.
7. While solving the linear programming problems, we may come across a situation that
the opportunity cost of more than one non- basic variables are zero, then we can say
that the problem has got ALTERNATE SOLUTIONS.
8. If in a simplex table only one unfavourable Cj – Zj identifying the only incoming
variable and if all the elements of that column are either negative elements or zeros,
showing that no change in the basis can be made and no current basic variable can be
reduced to zero. Actually, as the incoming arable is introduced, we continue to increase,
without bounds, those basic variables whose ratios of substitutions are negative. This is
the indication of UNBOUND SOLUTION.
9. In a problem where, the set of constraints is inconsistent i.e., mutually exclusive, is the
case of NO FEASIBLE SOLUTION. In simplex algorithm, this case will occur if the
solution is optimal (i.e., the test of optimality is satisfied) but some artificial variable
remains in the optimal solution with a non-zero value.

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ADDIS ABABA MEDICAL & BUSINESS COLLEGE MBA PROGRAMME QUANTITATIVE ANALYSIS FOR DECISIONS-MAKING

ASSIGNMENT 1

WORKED OUT PROBLEMS

Problem 1:
A company manufactures two products X and Y whose profit contributions are $. 10 and $. 20
respectively. Product X requires 5 hours on machine I, 3 hours on machine II and 2 hours on
machine III. The requirement of product Y is 3 hours on machine I, 6 hours on machine II and
5 hours on machine III. The available capacities for the planning period for machine I, II and
III are 30, 36 and 20 hours respectively. Find the optimal product mix.
a) Formulate the above problem into a linear programming problem.
b) Convert the problem into the standard form
c) Solve the problem using the Simplex method
d) Which variables are in the final optimal tableau and indicate (if any) slack resources
e) Give the interpretations to the slack resource
Problem 2:
A company produces three products A, B and C by using two raw materials X and Y. 4000 units of X
and 6000 units of Z are available for production. The requirement of raw materials by each product is
given below:
The given data is:

Requirement per unit of product


A B C
Raw material
X 2 3 5
Y 4 2 7

The labor time for each unit of product A is twice that of product B and three times that of product C.
The entire labor force of the company can produce the equivalent of 2500 units of product A. A
market survey indicates the minimum demand of the three products are 500, 500 and 375 respectively
for A, B and C. Assume that the profit per units of product A, B and C are $ 60/–, $40/– and $100
respectively. Formulate the L.P.P. for maximizing the profit.
a) Formulate the above problem into a linear programming problem.
b) Convert the problem into the standard form
c) Solve the problem using the Simplex method
d) Which variables are in the final optimal tableau and indicate (if any) slack resources
e) Give the interpretations to the slack resource
Problem 3:

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ADDIS ABABA MEDICAL & BUSINESS COLLEGE MBA PROGRAMME QUANTITATIVE ANALYSIS FOR DECISIONS-MAKING

A company manufactures three products namely X, Y and Z. Each of the products require processing
on three machines, Turning, Milling and Grinding. Product X requires 10 hours of turning, 5 hours of
milling and 1 hour of grinding. Product Y requires 5 hours of turning, 10 hours of milling and 1 hour
of grinding, and Product Z requires 2 hours of turning, 4 hours of milling and 2 hours of grinding. In
the coming planning period, 2700 hours of turning, 2200 hours of milling and 500 hours of grinding
are available. The profit contribution of X, Y and Z are $. 10, $.15 and $. 20 per unit respectively. Find
the optimal product mix to maximize the profit.
a) Formulate the above problem into a linear programming problem.
b) Convert the problem into the standard form
c) Solve the problem using the Simplex method
d) Which variables are in the final optimal tableau and indicate (if any) slack resources
e) Give the interpretations to the slack resource

Problem 4:
A small city of 15,000 people requires an average of 3 of gallons of water daily. The city is supplied
with water purified at a central water works, where water is purified by filtration, chlorination and
addition of two chemicals softening chemical X and health chemical Y.
Water works plans to purchase two popular brands of products, product A and product B, which
contain these two elements. One unit of product A gives 8 Kg of X and 3 Kg of Y. One unit of product
B gives 4 Kg of X and 9 Kg of Y. To maintain the water at a minimum level of softness and meet a
minimum in health protection, it is decided that 150 Kg and 100 Kg of two chemicals that make up
each product must be added daily. At a cost of $. 8/– and $. 10/– per unit respectively for A and B,
what is the optimum quantity of each product that should be used to meet consumer standard?
a) Formulate the above problem into a linear programming problem.
b) Convert the problem into the standard form
c) Solve the problem using the Simplex method
d) Which variables are in the final optimal tableau and indicate (if any) slack resources
e) Give the interpretations to the slack resource
Problem 5:
One Grams of Alloy A contains 2 grams of copper, 1 gram of zinc and 1 gram of lead. 10 grams of
Alloy B contains 1 gram of copper, 1 gram of zinc and 1 gram of lead. It is required to produce a
mixture of these alloys, which contains at least 10 grams of copper, 8 grams of zinc, and 12 grams of
lead. Alloy B costs $1.5 times as much per Kg as alloy A costs $1. Find the amounts of alloys A and
B, which must be mixed in order to satisfy these conditions in the cheapest way.
a) Formulate the above problem into a linear programming problem.

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ADDIS ABABA MEDICAL & BUSINESS COLLEGE MBA PROGRAMME QUANTITATIVE ANALYSIS FOR DECISIONS-MAKING

b) Convert the problem into the standard form


c) Solve the problem using the Simplex method
d) Which variables are in the final optimal tableau and indicate (if any) slack resources
e) Give the interpretations to the slack resource

Problem 6.
A farmer has 1,000 hectares of land on which he can grow corn, wheat or soybeans. Each hectare of
corn costs birr 100 for preparation, requires 7 man-days of work and yield a profit of birr 30. A hectare
of wheat costs birr 120 to prepare, requires 10 man-days of work and yields a profit of birr 40. A
hectare of soybeans cost birr 70 to prepare, requires 8 man-days of work and yield a profit of birr 20.
If the farmer has birr 1,000,000 for preparation and can count on 8,000 man-days of work, how any
hectare should be allocated to each crop to maximize profit? Required:
a) Formulate the above problem into a linear programming problem.
b) Convert the problem into the standard form
c) Solve the problem using the Simplex method
d) Which variables are in the final optimal tableau and indicate (if any) slack resources
e) Give the interpretations to the slack resource

Problem 7.
A company possesses two manufacturing plants, each of which can produce three products X, Y and Z
from a common raw material. However, the proportions in which the products are produced are
different in each plant and so are the plant’s operation costs per hour. Data on production per hour and
costs are given below, together with current orders in hand for each product.
Products Operating cost
per hour in birr
X Y Z
Plant A 2 4 3 9
Plant B 4 3 2 10
Orders on hand 50 24 60

Required: Solve the problem using the Simplex method and find the number of production hours
needed to fulfill the orders in hand at a minimum cost. (Hint; Introduce the surplus and artificial
variables while solving the problem).

Instructor: Biniyam kebede Page 24

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