CHAPTER – 2

Linear Programming Models

The most common type of application involves the general problem of allocating limited resources among
competing activities in a best possible (i.e., optimal) way. More precisely, this problem involves selecting the level
of certain activities that compete for scarce resources that are necessary to perform those activities. The choice of
activity levels then dictates how much of each resource will be consumed by each activity. The variety of situations
to which this description applies is diverse, indeed, ranging from the allocation of production facilities to products to
the allocation of national resources to domestic needs, from portfolio selection to the selection of shipping patterns,
from agricultural planning to the design of radiation therapy, and so on. A model, which is used for optimum
allocation of scarce or limited resources to competing products or activities under such assumptions as certainty,
linearity, fixed technology, and constant profit per unit, is linear programming.
Linear Programming is one of the most versatile, powerful and useful techniques for making managerial decisions.
Linear programming technique may be used for solving broad range of problems arising in business, government,
industry, hospitals, libraries, etc. Whenever we want to allocate the available limited resources for various
competing activities for achieving our desired objective, the technique that helps us is linear programming. As a
decision making tool, it has demonstrated its value in various fields such as production, finance, marketing, research
and development and personnel management, determination of optimal product mix (a combination of products,
which gives maximum profit), transportation schedules, Assignment problem and many more.
Components of linear programming model
Objective Function
All linear programming problems have a function called the “objective function.” The objective function is the one
that the solver of a linear programming problem wishes to maximize or minimize. The result of a linear
programming problem will be given in terms of the objective function. The objective function is written with the
capital letter “Z” in most linear programming problems. A Linear programming model requires a single goal or
objective. The two general types of objectives are maximization and minimization. A maximization objective might
involve profit, revenue, etc. Conversely, a minimization objective might involve cost, time, or distance. Decide if the
problem is a "maximization" problem or a "minimization" problem. A maximization problem tries to find a solution
such where the objective function is maximized. A minimization problem tries to find a solution where the objective
function is minimized. For example, the problem of finding the shortest path between two points is a minimization
problem. On the other hand, the problem to pack the maximum number different-sized pebbles in a bottle is a
maximization problem.

The Decision Variables

The variables in a linear program are a set of quantities that need to be determined in order to solve the problem; i.e.,
the problem is solved when the best values of the variables have been identified. The variables are sometimes called
decision variables because the problem is to decide what value each variable should take. Typically, the variables
represent the amount of a resource to use or the level of some activity. For example, a variable might represent the
number of acres to cut from a particular part of the forest during a given period. Frequently, defining the variables of

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the problem is one of the hardest and/or most crucial steps in formulating a problem as a linear program. Sometimes
creative variable definition can be used to dramatically reduce the size of the problem or make an otherwise non-
linear problem linear. As mentioned earlier, a variety of symbols, with subscripts and superscripts as needed, can be
used to represent the variables of an LP. As a general rule, it is better to use variable names that help you remember
what the variable represents in the real world. For this general introduction, the variables will be represented — very
abstractly — as X1, X2…. Xn . (Note that there are n variables in this list.)
The constraints: are restrictions which define or limit the attainability (achievability) feasibility of a proposed
course of action. They limit the degree to which the objective can be pursued. A typical restriction embodies scarce
resources (such as labor supply, RMs, production capacity, machine time, storage space), legal or contractual
requirements (leg. Product standards, work standards), or they may reflect other limits based on forecasts, customer
orders, company policies etc.
Parameters- are fixed values that specify the impact that one unit of each decision variable will have on the
objective and on any constraint it pertains to as well as to the numerical value of each constraint.
Assumptions of linear programming model
Linearity: Linearity has two aspects:
 Each decision variable has a linear impact on the objective function and in each constraint in which it
appears.
 All mathematical expressions should be first degree or linear
Divisibility: Every decision variable can assume fractional values; i.e., all variables are continuous. This assumption
may not be valid in the product-mix problem, since the product under consideration could be, say, cars.
Certainty: This assumption is also called the deterministic assumption. This means that all parameters (all
coefficients in the objective function and the constraints) are known with certainty. Realistically, however,
coefficients and parameters are often the result of guess-work and approximation.
Non-negativity; negative values are not acceptable.
Formulating LPM
Procedure for Formulation of LP Problems
 Step 1. Identify the type of problems (maximization or minimization)
 Step 2. Write down the decision variables of the problem.
 Step 3. Formulate the objective function to be optimized (Maximized or Minimized) as a linear function
of the decision variable.
 Step 4. Formulate the other conditions of the problem such as resource limitation, market constraints.
 Step 5. Add non negativity constraints from the considerations.
 Step 6. Develop LPM

Example one

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ABC private limited company is engaged in the production of power and traction transformers. Both of these
categories of transformers pass through three basic processes: core preparation, core to coil assembly, and vapor
phase drying. A power transformer yields a contribution of Birr 50,000 and traction transformer contributes Birr
10,000. The time required in the production of these two products in terms of hours for each of the processes is as
follows.
Power transformer Traction Transformer
Core preparation 75 15
Core to Coil Assembly 160 30
Vapor Phase Drying 45 10

If the capacities available are 1000, 1500, and 750 machine hours in each processes respectively, formulate the
problem as LP?
Solution: let X1= power transformer and X2= traction transformer
Zmax = 50,000X1+ 10,000X2
Subject to:
75X1 + 15X2 < 1000 hrs
160X1 + 30X2 < 1500 hrs
45X1 + 10X2 < 750 hrs
X1, X2 > 0
Example two
A resourceful home decorator manufactures two types of lamps says A and B. Both lamps go through two
technician’s first a cutter, second a finisher. Lamp A requires 2 hrs of the cutter’s time and 1 hr of th finisher’s time,
while lamp B requires 1hr of the cutter’s time and 2 hr of the finisher’s time. The cutter has 104 hrs and finisher has
76 hrs of available time each month. Profit per lamp A is birr 600 and per B lamp is birr 1100. Assuming that he can
sale that entire he produces, how many of each type of lamps should be manufactured to obtain the best return.
Solution: Formulation of the Mathematical Model of the Problem.
Lamps Cutter Finisher Maximum profit
A 2hr 1hr 600
B 1hr 2hr 1100
Available time 104hr 76hr

Solution let Lamp A= X1 and lamp B= X2

The LPM will be
Z max = 600x1 + 1100x2
Stc: 2x1 + x2 ≤ 104
x1 + x2 ≤ 76
x1, x2 ≥ 0
Example three

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Alem private limited company is engaged in the production of belts and leather jackets. Both of products require
two inputs (chemical and processed leather). Each unit of belt requires 2 liters of chemical and 4 kilogram of
processed leather while, to produce one unit of jacket the company requires 4 liters of chemical and 3 kilograms of
processed leather. The company should start the production if the total liters of chemical are more than 16 and
processed leather more than 24 kilograms to fulfill the minimum requirement to license. Finally the unit production
cost for Belt is birr 60 and the unit production cost for Jacket is birr 90. Develop LPM
Solution let X1= belt and X2= jacket
Z min= 60X1+ 90X2
STC; 2X1+ 4X2>16
4X1+3X2>24
X1, X2>0

Solving LP Models
Following the formulation of a mathematical model, the next stage in the application of LPM to decision
making problem is to find the solution of the model. An optimal, as well as feasible solution to an LP
problem is obtained by choosing from several values of decision variables x 1,x2…xn , the one set of values
that satisfy the given set of constraints simultaneously and also provide the optimal ( maximum or
minimum) values of the given objective function. The most common solution approaches are to solve
graphically and applying simple-X- method.
Graphical linear programming methods
Graphical linear programming is a relatively straightforward for determining the optimal solution to
certain linear programming problems involving only two decision variables. Although graphic method is
limited as a solution approach, it is very useful in the presentation of LP, in that it gives a “picture” of
how a solution is derived thus a better understanding of the solution. Moreover, graphical methods
provide a visual portrayal of many important concepts. In this method, the two decision variables are
considered as ordered pairs (X 1, X2), which represent a point in a plane, i.e, X 1 is represented on X-axis
and X2 on Y-axis.
Graphical method has the following advantages:
 It is simple

 It is easy to understand, and

 It saves time.

Steps to solve LPM with Graphic method

Step 1: develop LPM (if it is not formulated).

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Step 2: change inequalities in to equation.
Step 3: find X1 and X2 coordinates. Assign X1 zero and find X2 then assign X2 zero and find X1.
Step 4: Plot each equation on the graph as each equation will geometrically represent a straight line.
Step 5: Shade the feasible region and identify the feasible solutions
Every point on the line will satisfy the equation of line. If the inequality constraints corresponding to that
line is ≤ then the region below the line lying in the first quadrant (due to non-negativity of variables) is
shaded.
For the inequality constraints with ≥ sign the region above the line in the first quadrant is shaded. The
point lying in common region will satisfy all the constraints simultaneously. Thus, the common region
obtained is called feasible region. This region is the region of feasible solution.
Step 6: identify the corner points of this region are identified.
Step 7: Finding the optimal solutions
The value of Z at various corners points of the region of feasible solution is calculated. The optimum
(maximum or minimum) Z among these values is noted. Corresponding solution is the optimal solution.
Step 8: interpret the result.
Example 1. Solve the following LPP graphically
Z Max = 3x1 + 5x2
Stc: X1 + 2X2 ≤ 2000
X1 + X2 ≤ 1500
X2 ≤ 600
X1, x2 ≥ 0
Solution:
1. To represent the constraints graphically the inequalities are written as equalities.
2. Every equation is represented by a straight line.
3. To draw the lines, two points on each of the lines are found as indicated in the following table
(intercepts);
Equation x2 intercept x1 intercept Point (x, y) on
when x1 = 0 when x2 = 0 the line
x1 + 2x2 = 2000 x2 = 1000 x1 = 2000 (0,1000)(2000,0)
x1 + x2 = 1500 x2 = 1500 x1 = 1500 (0,1500)(1500,0)
X2 = 600 and x1 = 0, x1 axis x2 = 0, x 2 axes. Plot each equation on the graph.

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B and C are the point of intersection of lines x1+2x2 = 2000, x1 +x2 = 1500 and x1 + 2x2 = 2000, x2 =
600 on solving we get B = (1000, 500), C = (800, 600)
Corner Points Value of Z = 3x1 + 5x2
A(1500, 0) 4500
B(1000, 500) 5500(Max. Value)
C(800, 600) 5400
D(0, 600) 3000
Therefore, the Maximum value of Z occurs at B(1000, 500), hence the optimal solution is x1 = 1000 and
x2 = 500.
Example two
A farmer wishes to feed pigs with minimum cost but needs to ensure that each receives at least
1.6 kg of protein, at least 0.3 kg of amino acid and no more than 0.3 kg of calcium per day.
Foods available are fish meal and meat scraps, which contain protein, calcium and amino acid
according to the following table:

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Fish meal (X1) costs $0.65 per kg, whereas meat scraps (X2) cost $0.52 per kg. Develop a linear
programming model and find the amount of food should be produced to minimize the farmers cost.
Z min= 0.65X1+0.52X2
0.6X1+0.5X2≥ 1.6kg…….. Protein
0.05X1+0.11X2≥ 0.3kg …….calcium
0.18X1+0.05X2≥ 0.3kg ……. amino acid
X1 and X2≥0…….. Non-negativity

0.6X1+0.5X2=1.6kg 0.05X1+0.11X2= 0.3kg 0.18X1+0.05X2=0.3kg

X1=0 X2=3.2 X1=0 X2=2.72 X1=0 X2=6

X1=2.67 X2=0 X1= 6 X2=0 X1=1.67 X2=0
Coordinates (2.67, 3.2) Coordinates (6, 2.72) Coordinates (1.67, 6)

X2

A6

3.2

2.72 B
C

D6 X1
1.67 2.67 C2
C1
C3

Value of obj
Coordinates How determined Function Z min=0.65X1+0.52X2
Points X1 X2
A 0 6 Observation 0.65(0) +0.52 (6) =3.12 Br.

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B 1.16 1.8 Simul. equn 0.65(1.16)+0.52( 1.8)=1.62 Br.
C 0.64 2.43 Simul. equn. 0.65 (0.64) +0.52 (2.43) = 1.68 Br
D 6 0 Observation 0.65(6) +0.52 (0) =3.9 Br

-0.3 0.6X1+0.5X2 =1.6 0. 6X1+0.5X2= 1.6 optimal

0.18X1+0.05X2 =0.3 -12 0.05X1+0.11X2= 0.3

B, -0.18X1- 0.15X2= -0.48 C, 0.6X1+0.5X2=1.6

+0.18x1+0.05X2=0.3 -0.6X1-1.32X2= -3.6

B, -0.1X2= -0.18 C, -0.82X2= -2

X2= -0.18/ -0.1 X2= -2/ -0.82
X2=1.8 X2=2.43

0.6X1+0.5X2 =1.6 0. 6X1+0.5X2= 1.6

0.6X1+0.5(1.8) =1.6 0.6X1+0.5(2.43) =1.6

0.6X1+0.9=1.6 0.6X1+1.215=1.6
0.6X1=1.6 -0.9 0.6X1=1.6- 1.215
X1=1.16 X1=0.64
Special cases in graphic approach
Unbounndedness
Unboundedness occurs when the decision variable increased indefinitely without violating any of the
constraints. The reason for it may be concluded to be wrong formulation of the problem such as
incorrectly maximizing instead of minimizing and/or errors in the given problem. Checking equalities or
rethinking the problem statement will resolve the problem.

Example: Z max = 10X1 + 20X2

Subject to 2X1 + 4X2 > 16
X1 + 5X2 > 15
X1, X2 > 0
Following the above listed steps of graphical solution method, we find the following graph for the above
model:

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The shaded area represents the set of all feasible solutions and as can be seen from the graph, the solution
is unbounded.
Redundant Constraints

In some cases, a constraint does not form a unique boundary of the feasible solution space. Such a
constraint is called a redundant constraint. A constraint is redundant if its removal would not alter the
feasible solution space. Redundancy of any constraint does not cause any difficulty in solving an LP
problems graphically. Constraints appear redundant when it may be more binding (restrictive) than others.

Infeasibility

In some cases after plotting all the constraints on the graph, feasible area (common region) that represents
all the constraint of the problem cannot be obtained. In other words, infeasibility is a condition that arises
when no value of the variables satisfy all the constraints simultaneously. Such a problem arises due to
wrong model formulation with conflicting constraints.

For example,
Max Z = 3X1+2X2
Subject to: 2X1 + X2 < 2
3X1 + 4X2 > 12
X 1, X2 > 0

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Multiple optimal solutions

Recall the optimum solution is that extreme point for which the objective function has the largest value. It
is of course possible that in a given problem there may be more than one optimal solution.
There are two conditions that should be satisfied for an alternative optimal solution to exist:
 The given objective function is parallel to a constraint that forms the boundary of the feasible
region. In other words, the slope of an objective function is the same as that of the constraint
forming the boundary of the feasible region; and
 The constraint should form a boundary on the feasible region in the direction of optimal
movement of the objective function. In other words, the constraint should be an active
constraint.
Note: The constraint is said to be an active or binding or tight, if at optimality the left hand side equals
the right hand side. In other words, an equality constraint is always active. An inequality sign may or may
not be active.
For example
Max Z = 8X1+16X2
Subject to: X1 + X2 < 200 ……. C1
3X1 + 6X2 < 900 ……. C2
X2 < 125 ……. C3
X1, X2 > 0

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In the problem above, using extreme point method and solving for values of corner points simultaneously,
the objective function assumes its maximum value of 2,400 at two corner points B (50,125) and C
(100,100). Therefore, the optimal solution is found on the line segment connecting the two corner points.
One benefit of having multiple optimal solutions is that for other (perhaps qualitative) reasons, a manager
may prefer one of them to the others, even though each would achieve the same value of the objective
function. In practical terms, one of the two corner points is usually chosen because of ease in identifying
its values.
Other corner points are computed by identifying the two corner points and keeping the value of the

objective function constant, where 50 ¿ X1 ¿ 100 and 100 ¿ X1 ¿ 125. By selecting one value
for one of the decision variables from the domain, we determine the value for another decision variable
keeping the objective function’s value. Let X1 = 80.
Then, Z = 8X1+16X2  2400 = 8(80) +16X2

16X2 = 1760
X2 = 110
The simplex method
The graphical method of solving linear programming problems is a simple way to find a solution since the
optimum solution is searched among the corner points of the solution space. However, the graphical
method is restricted to problems with two decision variables. When the number of variables and the
number of constraints increase, it becomes difficult to visualize the solution space. As a result, the
graphical method cannot be employed successfully in such cases. In order to avoid this limitation, the
simplex method, or iterative or step by step method is efficient method for solving linear programming
problems.

Maximization Case with ≤ constraints

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The solution steps of the simplex method can be outlined as follows:
Step1. Formulate the linear programming model of the real world problem.
Step2. Express the mathematical model of L.P. problem in the standard form by adding slack variables in
the left-hand side of the constraints and assign a zero coefficient to these in the objective
function.
Step 3. Set up the initial simplex tableau
Step 4. We test if the current solution is optimum or not. If all the elements or entries in the Cj- Zj row
(i.e., index row) are negative or zero, then the current solution is optimum. If there exists
some positive number, the current solution can be further improved by removing one basic
variable from the basis and replacing it by some non-basic one. To improve the current
feasible solution, we replace one current basic variable (called the departing variable or
leaving variables) by a new non-basic variable (called the entering variable).
We now determine the variable to enter into the solution mix, the entering variable. One way
of doing this is by identifying the column with the largest positive value in the C j - Zj row of
the simplex table. The non-basic variable at the top of the key column is the entering variable
that will replace a basic variable.
Next, we determine the departing variable or leaving variables to be replaced in the basis
solution. This is accomplished by dividing each number in the quantity column by the
corresponding number in the entering column selected in identified the entering variable also
known as replacement ratio and the intersection point of entering and leaving variables is
known as pivotal element.

Replacement Ratio (RR) = Solution Quantity (Q) (RHSV)

Corresponding values in entering column

Step 5. Find a formula that changes the pivotal element in to one and other elements located on entering
column in to zero. Compute the values of the Cj - Zj row. If all the numbers in Cj - Zj row are
either negative or zero, an optimum solution has been obtained.
Step 6. If any of the numbers in Cj - Zj row are positive, repeat the steps (4-5) again until an optimum
solution has been obtained.

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 Example
Z max = 60X1+50X2 Step one: Develop standardization
Subject to 4X1+10X2≤ 100 Max Z = 60X1+50X2+0S1+0S2+0S3
2X1+ X2 ≤ 22 Subject to 4X1+10X2+S1 = 100
3X1+ 3X2 ≤ 39 2X1+ X2+S2 = 22
X1 X2 ≥ 0 3X1+ 3X2+S3 = 39
Solve it using simple-X- method X1, X2, S1, S2, S3≥ 0
Step two: Develop Initial Simplex tableau

Cj 60 50 0 0 0 RHSV
Basic V. X1 X2 S1 S2 S3

S1 0 4 10 1 0 0 100 100/4 = 25
S2 0 2 1 0 1 0 22 22/2 = 11
S3 0 3 3 0 0 1 39 39/3 = 13
Zj 0 0 0 0 0 0
Cj-Zj 60 50 0 0 0

Entering variables
Leaving variables Pivot Element

All Cj-Zj row consists positive and zero elements, Due to this, we have to identify leaving, entering, and
pivotal element and find the formula which changes pivotal element in to one and other entering columns
in to zero
NR2= ½OR2
OR2…………..2 1 0 1 0 22
NR2…………..1 ½ 0 ½ 0 11

NR1=- 4NR2+OR1
- 4NR2 -4 -2 0 -2 0 -44
+OR1 4 10 1 0 0 100
NR1= 0 8 1 -2 0 56

NR3= - 3NR2+OR3

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Step 3: Developing the Second Simplex Tableau

Cj 60 50 0 0 0 RHSV
Basic V. X1 X2 S1 S2 S3
56/8 = 7
S1 0 0 8 1 -2 0 56
11/(1/2) = 22
X2 60 1 1/2 0 1/2 0 11
6/(3/2) = 4
S2 0 0 3/2 0 -3/2 1 6
Zj 60 30 0 30 0 660
Cj-Zj 0 20 0 -30 0

Leaving variables
Entering variables Pivot Element

All Cj-Zj row consists positive and zero elements, Due to this, we have to identify leaving, entering, and
pivotal element and find the formula which changes pivotal element in to one and other entering columns
in to zero
NR3= 2/3OR3
NR2= _1/2NR3+OR2
NR1=-8NR3+OR1
Step 4: Develop the Third Simplex Tableau

Cj 60 50 0 0 0 RHSV
Basic V. X1 X2 S1 S2 S3
S1 0 0 0 1 6 -16/3 24
X1 60 1 0 0 1 -1/3 9
X2 50 0 1 0 -1 2/3 4
Zj 0 0 10 40/3 0 740
Cj-Zj 0 0 -10 -40/3 0

All the values in the C j-Zj row are zero and negative indicating that there can no be additional
improvement. This makes the third tableau to contain the optimal solution with the following basic
variables:
S1 = 24, X1 = 9, and X2 = 4 producing a maximum profit of birr 740.
This means that in order to achieve the maximum profit, the company should produce 9 units of X 1 and 4
units of X2 leaving 24 hours of unused resource of the second constraint.

Minimization Case with ≥ constraints

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Step 1. Formulate the linear programming model, and express the mathematical model of L.P. problem
the standard form by introducing surplus and artificial variables in the left hand side of the constraints.
Assign a 0 (zero) and +M as coefficient for surplus and artificial variables respectively in the objective
function. M is considered a very large number so as to finally drive out the artificial variables out of basic
solution.
Step 2. Next, an initial solution is set up.
Step 3. Now; we test for optimality of the solution. If all the entries of C j - Zj, row are positive, then the
solution is optimum. However, this situation may come after a number of iterations. But if at least one of
the Cj - Zj values is less than zero, the current solution can be further improved by removing one basic
variable from the basis and replacing it by some non-basic one.
Step 4. (i) Determine the variable to enter the basic solution. To do this, we identify the column with the
largest negative value in the Cj - Zj row of the table.
(ii) Next we determine the leaving variable from the basic solution. If an artificial variable goes out of
solution, then we discard it totally and even this variable may not form part of further iterations.
Step 5. Step (3—5) are repeated until an optimum solution is obtained.
Example: step one: standardization

Z min = 7X1+9X2 Z min = 7X1+9X2+0S1+0S2+MA1+MA2

Subject to 3X1+6X2 ≥36 Subject to 3X1+6X2 –S1+A1 = 36
8X1+4X2 ≥64 8X1+4X2-S2+A2 = 64
X1, X2 ≥0 X1, X2 , S1, S2≥0
Step two: develop Initial Simplex Tableau entering variables

Cj 7 9 0 0 M M RHSV
Basic V. X1 X2 S1 S2 A1 A2

A1 M 3 6 -1 0 1 0 36 36/3=12
A2 M 1 4 0 -1 0 1 64 64/1=64
Zj 11M 10M -M -M M M 50M
Cj-Zj 7-11M 9-10M M M 0 0
Pivotal element leaving variables

All Cj-Zj row consists negative and zero elements, Due to this, we have to identify leaving, entering, and
pivotal element and find the formula which changes pivotal element in to one and other entering columns
in to zero

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 NR1= 1/3OR1
NR2= -1NR2+OR2
Step three: develop Second Simplex Tableau

Cj 7 9 0 0 M RHSV
Basic V. X1 X2 S1 S2 A1

A1 M 0 9/2 -1 3/8 1 12= 12/9/2=2.7

X1 7 1 ½ 0 -1/8 0 8=8/1/2= 16
Zj 7 7/2+9/2M -M 3/8M-7/8 M 56+12M
Cj-Zj 0 11/2-9/2M M 7/8-3/8M 0
Entering variables
All Cj-Zj row consists negative and zero elements, Due to this, we have to identify leaving, entering, and
pivotal element and find the formula which changes pivotal element in to one and other entering columns
in to zero
NR1= 2/9OR1
NR2= - 1/2NR1+OR2
Step four: Develop the Third Simplex Tableau

Cj 7 9 0 0 Quantity
Basic V. X1 X2 S1 S2

X2 9 0 1 -2/9 1/12 8/3

X1 7 1 0 1/9 -1/6 20/3
Zj 7 9 -11/9 -5/12 212/3
Cj-Zj 0 0 11/9 5/12

The third tableau represents a final tableau since it is the optimal solution with entirely zeros and non-
negative values in the Cj-Zj row.
Therefore, the optimal solution is: X1 = 20/3 and X2 = 8/3 and value of objective function is 212/3.

Maximization Problems with Mixed Constraints

In some cases we faces mixed constraints both in minimization and maximization problems. During such
situations we will follow the same procedure with maximization problem with≤ if the problem is
maximization, and same procedure with minimization problem with ≥ if the problem is minimization . The
only difference is related with developing standardization. To make it more precise standardization for
mixed constraints will developed as follows.

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 Coefficient of extra variables Presence of
Types of
in the objective function variables in
Constrain Extra variables to be added
MaxZ the initial
t
solution mix
MinZ
< Add only slack variable 0 0 Yes
Subtract surplus variable and 0 0 No
>
Add artificial variable -M +M Yes
= Add artificial variable -M +M Yes

Example
Assume the following maximization problem with mixed constraints.
Z max = 6X1+8X2
Subject to X2 ≤4
X1+X2 = 9
6X1+2X2 ≥ 24
X1, X2≥0
In solving for this problem, introducing a slack variable is not acceptable since they represent unused
capacity and there is no unused capacity in = and ≥ constraints. Therefore, for ≥ constraints, we introduce
a surplus variable and for both ≥ and = constraints we introduce artificial variables resulting as follows.
Step one: develop standardization
Z max = 6X1+8X2+0S1+0S2-MA2-MA3
Subject to X2+ S1 = 4
X1+X2+A2 = 9
6X1+2X2-S3+A3 = 24
X1, X2, S1,S3,A2,A3 ≥ 0

Step two: Develop initial simple X tableau entering variables

Cj 6 8 0 0 -M -M RHSV
Basic V. X1 X2 S1 S3 A2 A3
S1 0 0 1 1 0 0 0 4
A2 -M 1 1 0 0 1 0 9
A3 -M 6 2 0 -1 0 1 24
Zj -7M -3M 0 +M -M -M -33M

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 Cj-Zj 6+7M 8+3M 0 -M 0 0
Pivotal element Leaving variables

Since this is a maximization problem, the entering variable is the one with the maximum C j-Zj value.
Therefore, the variable with the maximum C j-Zj is X1, the decision variable. And the leaving variable is
with the minimum non-negative ratio which is A 3, the artificial variable. Since this artificial variable is
not needed we remove it from the next tableau.
NR3=1/6OR3
NR2=-1NR3+OR2
NR1=OR1
Step 3; Developing the Second Simplex Tableau

Cj 6 8 0 0 -M RHSV
Basic V. X1 X2 S1 S3 A2

S1 0 0 1 1 0 0 4
A2 -M 0 2/3 0 1/6 1 5
X1 6 1 1/3 0 -1/6 0 4
Zj 6 2-2/3M 0 -1-M/6 -M 24-5M
Cj-Zj 0 6+2/3M 0 1+M/6 0

NR1=OR1
-2/3NR1+OR2
-1/3NR1+OR3

Step four: develop the Third Simplex Tableau

Cj 6 8 0 0 -M RHSV
Basic V. X1 X2 S1 S3 A2
X2 8 0 1 1 0 0 4

A2 -M 0 0 -2/3 1/6 1 7/3

X1 6 1 0 -1/3 -1/6 0 8/3

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 Zj 6 8 6+2/3M -1-M/6 -M 16-7/3M

Cj-Zj 0 0 -6-2/3M 1+M/6 0

NR2=6OR2
NR3= 1/6NR2+OR3
NR1=OR1
Step five: Developing the Fourth Simplex Tableau.

Cj 6 8 0 0 RHSV
Basic V. X1 X2 S1 S3

X2 8 0 1 1 0 4
S3 0 0 0 -4 1 14
X1 6 1 0 -1 0 5
Zj 6 8 2 0 62
Cj-Zj 0 0 -2 0

This tableau represents the final tableau since we have only zeros and negative values in the C j-Zj row
which indicates that it is the optimal solution. So we have the following results for each of the variables
and the profit obtained.
X1 = 5, X2 = 4, S3 = 14, and Profit = 62

Sensitivity Analysis
Sensitivity analysis is the study of sensitivity of the optimal solution of an LPP due to discrete variation
(changes) in its parameters. The degree of sensitivity of the solution due to these variations can range
from no change at all to a substantial change in the optimal solution of the given LPP. Thus, in sensitivity
analysis we determine the range over which the LP model parameters can change without affecting the
current optimal solution.
The process of studying the sensitivity of the optimal solution of an LPP is also called post-optimality
analysis because it is done after an optimal solution, assuming a given set of parameters, has been

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obtained for the model. Different categories of parameter changes in the original LP model includes the
following;
Change in the Right hand sides’ value
The right hand side of the constraint expresses the capacities, or resource available. Management may be
interested in finding out the effect of changes in these values (bi) on the optimal solution. Such a change
may not affect the optimal solution but may change the composition of the basis or may affect only the
value of the objective function (same basis variables with different values).
Change in value of the objective function per unit that results from a constraints RHS value is called a
shadow price. They are found in Zj row of the final simplex tableau. The negative numbers of CJ-ZJ row
in its slack variable columns provides us the shadow price.
Example Z max = 3X1+4X2
Stc; 3X1+5X2<15
2X2 + X2<8
X2<2
X1 , X2 >0
The optimal simple X table for this problem is
3 4 0 0 0
CJ BV X1 X2 S1 S2 S3 RHSV
3 X1 1 0 -0.143 0.714 0 3.57
0 S3 0 0 -0.286 0.428 1 1.143
4 X2 0 1 0.286 -0.428 0 0.857
Zj 3 4 0.715 0.428 0 14.14
Cj-Zj 0 0 -0.714 -0.428 0

Ratios for analysis

RHSV S1 S2 S3 RHSQ/S1 RHSQ/S2 RHSQ/S3
3.57 -0.143 0.714 0 -24.96 5 INFINITVE
1.143 -0.2.86 0.428 1 -3.99 2.6 1.14
0.857 0.286 -0.428 0 3.00 -2 INFINITIVE
NB the smallest positive ratio (Q/Si) tells us by how much the existing bi can be decreased. The largest
negative (the one nearest to zero) tells us by how much the existing bi can be increased.
Example the range for the first constraint (b1) is

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Lower limit 15-3=12 and the upper limit is 15+3.99=18.99
The change in the objective function coefficients
This involves placing a range on the objective function coefficients value called range of optimality. As
long as the actual value of the objective function coefficient is within the range of optimality, the current
basic feasible solution will remain optimal, but the objective function value may change.
Example Max Z= 50X1+40X2
Subject to: 3X1+5X2<150
X2<20
8X1+5X2<300
X1 , X2 >0
The final (optimal) solution of this problem is given below.
40 50 0 0 0
CJ BV X1 X2 S1 S2 S3 RHSV
40 X2 0 1 8/25 0 -3/25 12
0 S2 0 0 -8/25 1 3/25 8
50 X1 1 0 -5/25 0 5/25 30
Zj 50 40 14/5 0 26/5 1980
Cj-Zj 0 0 -14/5 0 -26/5
This tableau is optimal since all Cj-Zj < 0. However, if a change in one of the objective function
coefficients where to cause one or more of the Cj-Zj value to become positive, the current solution
would no longer be optimal.
From the final tableau given above, the upper and lower limits are computed as follows.
• The upper limit= the minimum of (Cj + Cj-Zj/aij) where aij <0
• The Lower limit = the maximum of (Cj + Cj-Zj/aij) where aij >0

Analysis of basic variables: the analysis will be conducted on products X 1 and X2, which are in the basis.
Divide each CJ-ZJ row entry for variables not in the solution (S1,S3) by the associated variable aij from X 1
and X2 rows.
Analysis for the basic variable X1
X1 X2 S1 S2 S3
Cj-Zj 0 0 -14/5 0 -26/5
X1 1 0 -5/25 0 5/25
Cj-Zj __ ___ 14 ___ -26

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 X1
The smallest positive number in the last row tells us how much the profit of X 1 can be increased before
the solution is changed. The largest negative number (negative amount closest to zero) -26 indicates by
how much the coefficient of x 1 can be decreased without changing the solution. The range within which
the price of the X1can be changed from the current level of 50 is 50-26= 24 (lower limit) and the upper
limit is 50+14 =64
Analysis for the basic variable X2
S1 S3
Cj-Zj -14/5 -26/5
X2 8/25 -3/25
Cj-Zj -35 / 4 130/3
X2
The smallest positive number is 130/3 and the largest negative number is -35/4. Hence, the range of
optimality is
Upper limit = 40+130/3=83.33
Lower limit= 40-35/4=31.25
Optimality range for non-Basic variable:
The only non-basic variables we have are S 1 and S3. For S1 and S3 to be included in the solution, their new
Cj value should be greater than 14/5 and 26/5 respectively.
This is the upper limit on the range of S 1 and S3 respectively. There is no lower limit on their range
because this is maximization problem. Therefore, coefficients lower than this will make them even less
desirable.

Duality theory
This discovery revealed that every linear programming problem has associated with it another linear
programming problem called the dual. The relationships between the dual problem and the original
problem (called the primal) prove to be extremely useful in a variety of ways. Every LP maximization
problem has an associated minimization LP problem and vice versa. Therefore, the LP problems exist in
pairs. The original problem is called the primal, while the complementary problem is termed as the dual.

Rules for Constructing the Dual from Primal

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The rules for constructing the dual from the primal or primal from the dual when using the symmetrical
form are:
 If the objective function of the primal is to be maximized, the objective function of the dual
becomes minimization and vice versa.
 For a maximization primal with all ≤ (less or equal to) type constraints, there exists a
minimization dual problem with all ≥ (greater than or equal to) type constraints and vice versa.
Thus, the inequality sign is reversed in all the constraints except the non-negativity conditions.
 Each constraint in the primal corresponds to a dual variable in the dual and vice versa. Thus,
given a primal problem with m constraints and n variables, there exists a dual problem with m
variables and n constraints.
 An optimal solution to the dual exists only when the primal has an optimal solution(and vice
versa).

Primal Dual

Z max = 300X1+250X2 W min = 40 Y1+ 45Y2+12Y3

STC: 2X1+X2<40 (labor constraint) STC: 2Y1+ 1Y2+1Y3>300

X1 + 3X2<45(machine constraint) 1Y 1+ 3Y2+0Y3 > 250

X1+ X2<12(market constraint) Y1, Y2>0

X1 , X2 >0

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