Operations Research Simplified

Simplex Method for Linear Programming Problem

Problem: Find solution using Simplex method
Maximize Z = 3X + 5Y
subject to
X + 2Y <= 2000
X + Y <= 1500
Y <= 600
and X,Y >= 0

Solution:
in given problem objective function is

Max Z = 3 X + 5 Y

subject to constraints

X + 2 Y ≤ 2000

X + Y ≤ 1500

Y ≤ 600

and X,Y ≥ 0;

Step 1: Convert the given objective function and constraints in to standard

form:
The problem is converted to standard form by adding slack, surplus and artificial variables as
appropriate
1. As the constraint-1 is of type '≤' we should add slack variable S1
2. As the constraint-2 is of type '≤' we should add slack variable S2
3. As the constraint-3 is of type '≤' we should add slack variable S3

After introducing slack variables problem will become

Maximize

Z= 3X + 5Y + 0.S1 + 0.S2 + 0.S3

Subject to

X + 2Y + 1.S1 + 0.S2 + 0.S3 = 2000;

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X + Y + 0.S1 + 1.S2 + 0.S3 = 1500;

0.X + Y + 0.S1 + 0.S2 + 1.S3 = 600;

where X,Y,S1,S2,S3≥0

Note that for objective functions coefficient of slack variable will be zero as slack variable do not
contribute in profit Z.

Step 2: Setting up the initial simplex tableau

Table 1 represents the blank Simplex tableau

The essential features of simplex tableau are

The first row of the table called as objective row (Cj row) contains the coefficient of variables in
the objective function. The elements in this row indicate the contribution per unit to the objective
function of each of the variables.

The first column headed by Cj is called as objective column. It lists the coefficient of variables
included in the solution at any stage of the problem. Only slack variables are considered in the
solution in the initial solution, their profit coefficient is zero which is listed in this column.

The second column called as product mix column contains basic variables in the current
solution. In the initial simplex table these basic variables are slack variables (S1, S2 and S3).

Then there are number of columns equal to variables in the constraints (in this example there are
five variables X, Y, S1, S2 and S3). It contains the coefficient of variables from corresponding
constraints.

Second last column is called as solution column which contains the right hand side (RSH) value
of corresponding constraints in corresponding row.

Last column is replacement ratio column which we need to calculate for deciding the leaving
variable.

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Table 1: Blank Simple Table

Step 3: Establishing an initial feasible solution

The simplex method starts with zero solution (point of zero production) and progresses through
series of iterations to determine the optimal quantity of each item.

To obtain the initial feasible solution, decision variables (X and Y) are set to zero, which reduces
the constraint value to

X = 0 and Y = 0 so

S1 = 2000; S2 = 1500 and S3 = 600.

This implies that at initial stage available capacity is idle or unused.

Each row in table represents one constraint.

So simplex table for initial feasible solution is shown in table 2.

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Table 2 : Initial feasible solution

Step 4: Locating scope for improvement

Two more rows Zj and Cj-Zj are added at the bottom in the table

Positive value of Cj-Zj indicates an opportunity for improving the current solution.

Zj values for each column are calculated by summing the products of elements in the column and
corresponding element in objective column (Cj)

Cj-Zj values are calculated by subtracting Cj value from corresponding Zj value for a column

For example for the column having variable X (third column in Table-3)

Zj = (0 x 1) + (0 x 1) + (0 x 0)

Zj = 0;

Cj = 3;

So Cj – Zj = (3 – 0) = 3

In similar way Cj-Zj values are calculated for all the columns as shown in table-3

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Table 3: Initial Simplex table with Cj – Zj values

For maximization problem if there are any positive values (>0) in the Cj-Zj row, then we have to
perform step-5. If there are all zero or negative values in the Cj-Zj row then solution is optimum
and we can stop at that point?

As maximum positive value of Cj-Zj is 5 in table 3 there is a scope for improvement so we will
move to step-5

Step 5: Selection of the entering variable

Now in this problem there are positive values (>0) in the Cj-Zj row, so select highest value in Cj-
Zj row.

Maximum positive value of Cj-Zj is 5 and its column index is 2, which is associated to variable
Y. So, the entering variable is Y.

And key column is column containing variable Y

Step 6: Selection of the leaving/departing variable

Now calculate the replacement ratio

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Now select minimum positive value of replacement ratio, corresponding row will become key
row and corresponding variable will be leaving variable.

Minimum ratio is 600 and its row index is 3. So, the leaving basis variable is S3.

Table 4 : Simplex table with key element

∴ the key element is 1.

Entering variable =Y,

Departing variable =S3,

Key Element =1

Now we need to prepare revised simplex table

Iteration-I

Step 7: Transformation of key row to reduced row in revised simplex table

Elements in third row (Reduced row) for revised simplex table are given by
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Reduced row is sown in Table - 5

Table 5: Reduced row in revised simplex table ( Iteration –I )

Step 8: Transformation of non-key row to replaced row in revised simplex

table
Elements in first and second row (Replaced row) for revised simplex table are given by

So complete revised Simplex table for iteration-I is shown in Table-6

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Table 6: Replaced row in the revised Simplex table ( Iteration –II )

Now calculate the Zj and Cj-Zj values as mentioned step-4

Table 7 : Cj - Zj values for revised Simplex table ( iteration I )

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Maximum positive value of Cj-Zj is 3 and its column index is 1. So, the entering variable is X.

Table 8: Revised Simplex table with key element ( iteration I )

Minimum positive ratio is 800 and its row index is 1. So, the leaving basis variable is S1.
∴ the key element is 1.
Entering variable =X, Departing variable =S1, Key Element =1

As Cj-Zj value is positive, there is a still scope for improvement we will perform next iteration

Iteration II
Repeat the steps 7, reduced row for second iteration is shown in table-9

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Table 9: Reduced row in revised simplex table (Iteration -II)

Repeat the steps 8, Replaced rows for second iteration is shown in table-10

Table 10: Replaced row in revised simplex table ( iteration II )

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Now calculate the Zj and Cj-Zj values as mentioned step-4

Table 11: Cj - Zj values for revised Simplex table ( Iteration II )

Maximum positive value of Cj-Zj is 1 and its column index is 3. So, the entering variable is S3.

Table 12 : Revised Simplex table with key element ( Iteration II )

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Minimum positive replacement ratio is 100 and its row index is 2. So, the leaving basis variable
is S2.
∴ the key element is 1.
Entering variable =S3, Departing variable =S2, Key Element =1

As there is a still scope for improvement we will perform next iteration

Iteration III
Repeat the steps 7, reduced row for second iteration is shown in table-13

Table 13: Reduced row in revised simplex table ( Iteration –III )

Repeat the steps 8, Replaced rows for second iteration is shown in table-14

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Table 14: Replaced row in revised simplex table ( Iteration –III )

Now calculate the Zj and Cj-Zj values as mentioned step-4

Table 15: Cj - Zj values for revised Simplex table ( Iteration III )

As all the values of Cj-Zj are either negative or zero it represents an optimal solution at

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X = 1000,

Y = 500,

Maximum possible profit Z = 5500

Value of slack variable S3 = 100 indicates the remaining unused capacity.

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