CIT 1 – Quantitative Analysis Chapter 6 – Linear Programming

Linear Programming: Maximization Model

Linear programming is a mathematical technique which permits the determination of the best use of
available resources.

Maximization Model starts with the objective function with the purpose of maximizing a goal which
can be in the form of profits, sales, target audience, number of customers, or any variable wherein
more is desired.

The total profit is used as the objective function:

Maximize P = p1x + p2y

Where: P = total profit

p1 = profit per unit of x
p2 = profit per unit of y
x = number of units of product 1 to be made
y = number of units of product 2 to be made

The constraints are then written in the form of inequalities:

a1x + a2y  A
b1x + b2y  B
c1x + c2y  C
x, y  0 (non-negativity constraint)

where:
a1 = # of units of Resource 1 used per unit of x
a2 = # of units of Resource 1 used per unit of y
A = total available units for Resource 1
b1 = # of units of Resource 2 used per unit of x
b2 = # of units of Resource 2 used per unit of y
B = total available units of Resource 2
c1 = # of units of Resource 3 used per unit of x
c2 = # of units of Resource 3 used per unit of y
C = total available units of Resource 3

SIMPLEX METHOD

Example:
Geena is the Production Manager of Clear Shampoo and she wants to determine the
production mix that will result in maximum profit. She is able to determine the data necessary for her
to make a decision. It will take 5 minutes to mix 1 case of Men’s shampoo and 10 minutes to mix 1
case of Women’s Shampoo and she has a total of 100 minutes available for the mixing process per
day. It will take 7 minutes to bottle 1 case of Men’s Shampoo and 7 minutes to bottle 1 case of
Women’s shampoo and she has a total of 84 minutes available for the bottling process per day. It will
take 9 minutes to pack 1 case of Men’s shampoo and 5 minutes to pack 1 case of Women’s
shampoo and she has a total of 90 available for the packing process per day. She will earn $6 for
every case of Men’s shampoo produced and $8 for every case of Women’s shampoo produced.
How many cases of Men’s shampoo and Women’s shampoo should be produced per day to
maximize profits? How much is the total profit?
CIT 1 – Quantitative Analysis Chapter 6 – Linear Programming

Summary Table: Clear Shampoo

Process/Product Mins Per Case Sign Mins/day

Men Women
Mixing 
Bottling 
Packing 
Profit per case($) = Max

Step 1. Develop the initial tableau:

1. Set up the variables:

X = # of cases of Men’s shampoo to be produced per day

Y = # of cases of Women’s shampoo to be produced per day
s1 = slack 1 or unused minutes of constraint A (mixing)
s2 = slack 2 or unused minutes of constraint B (bottling)
s3 = slack 3 or unused minutes of constraint C (packing)

2. Set up the objective function where 0 is the assigned profit per unit of a slack variable:
Maximize P = ______________________________

• Copy the coefficients to the Cj row. Assign the slack variable as the initial solution and
copy the coefficient to the basic Cj column.

3. Convert the constraints into inequalities:

Constraint A (mixing):
_______________________________
_______________________________
5x + 10Y + 1s1 + 0s2 + 0s3 = 100
Copy the coefficients to the s1 row.

Constraint B (bottling):
_______________________________
_______________________________
5x + 10 7x + 7Y + 0s1 + 1s2 + 0s3 = 84
Copy the coefficients to the s2 row.

Constraint C (packing):
9X + 5Y_______________________________
_______________________________
5x + 10
x + 10Y+ 0s1 +Copy the coefficients to the s3 row.

4. Compute the Zj values:

Zj = sumproduct (basic Cj column, variable column)

CIT 1 – Quantitative Analysis Chapter 6 – Linear Programming
5. Compute the (Cj – Zj) values:

(Cj – Zj) = (Cj row) – (Zj row)

6. Determine the maximum positive (Cj – Zj) value:

= ____________________
= ______________________

Initial Tableau

Basic Cj
Quantity
Cj Solution X Y s1 s2 s3
0 s1
0 s2
0 s3
Gross Zj
Net Cj - Zj Total Profit
Max+? Yes/No

Step 2. Determine the pivot row:

1. Compute the quantity (Q) ratio (Qr):

Qr = Q/ pivot column
= __________________
= __________________
= __________________
2. Compute the minimum positive quantity ratio (Qr):
= __________________

3. Determine the pivot number (Pn):

= intersection of pivot column and pivot row
=_____________

First Pivot Row

Solution PivotCol Quantity Quantity/ Min+? Yes/

Mix Y PivolCol No

Step 3. Develop the second tableau:

1. Replace the pivot row with the pivot column in the solution mix:

2. Replace the s1 row of the initial tableau with the Y row in the second tableau:

Y row = s1 row of initial tableau/pivot number

CIT 1 – Quantitative Analysis Chapter 6 – Linear Programming

3. Replace the s2 row of the initial tableau with new values in the second tableau:

New s2 row = old s2 row – (number in old s2 row and pivot column)(Y row)

4. Replace the s3 row of the initial tableau with new values in the second tableau:

New s3 row = old s3 row – (number in old s3 row and pivot column)(Y row)

5. Compute the Zj values:

Zj = sumproduct (basic Cj column, variable column)

6. Compute the (Cj – Zj) values:

(Cj – Zj) = (Cj row) – (Zj row)

7. Determine the maximum positive (Cj – Zj) value:

Second Tableau
Basic Cj 6 8 0 0 0
Quantity
Cj Solution X Y s1 s2 s3
8 Y 0.5= 5/10 10/10= 1 1/10=0. 0/10= 0/10= 100/10=1
1 0 0 0
0 s2 7-7*0.5= 3.5 7-7(1)= 0 0-7*0.1= 1-7*0= 0 -7*0 84-7(10) =
-0.7 1 =0 14
0 s3 9-5*.5=6.5 5-5*1=0 0-5*0.1= 0- 1-5*0= 90-
-0.5 5*0)=0 1 5*10=40
Gross Zj .5*8+0*3.5+0*6.5 8*1+0*0+0* 0.8 0 0 80
= 4 0=8
Net Cj - Zj 2 0 -0.8 0 0 Total
Max+? Yes/No Yes No No No no Profit

Step 4. Determine the pivot row:

1. Compute the quantity ratio (Qr):

Qr = Q / pivot column

2. Compute the minimum positive quantity ratio (Qr):

3. Determine the pivot number (Pn):

Second Pivot Row

Solution PivotCol Quantity Quantity/ Min+? Yes/
Mix X PivolCol No
Y 0.5 10 20 No
S2 3.5 14 4 Yes
S3 6.5 40 6.2 No
CIT 1 – Quantitative Analysis Chapter 6 – Linear Programming
Step 5. Develop the third tableau:

1. Replace the pivot row with the pivot column in the solution mix:

2. Replace the ____s2 row of the second tableau with the X row in the third tableau:

X row = s2 row of second tableau/pivot #

3. Replace the Y row of the second tableau with new values in the third tableau:
New Y row = old Y row – (number in old Y row and pivot column) (Xrow)

4. Replace the s3 row of the second tableau with new values in the third tableau:

New s3 row = old s3 row – (number in old s3 row and pivot column)(X row)

5. Compute the Zj values:

Zj = sumproduct (basic Cj column, variable column)

6. Compute the (Cj – Zj) values:

(Cj – Zj) = (Cj row) – (Zj row)

7. Determine the maximum positive (Cj – Zj) value:

8. Determine the final solution:

Third Tableau
Basic Cj 6 8 0 0 0
Quantity
Cj Solution X Y s1 s2 s3
8 Y 0.5-0.5*1= 0 1-0.5*0=1 0.1-0.5*- -0.15 0 8
0.2= 0.2
6 X 1 0 -0.2 0.3 0 4
0 s3 6.5-6.5*1 =0 0-6.5*0 = 0 -0.5-6.5*-0- 1- 40-6.5*4= 14
0.2 = 0.8 6.5*0.3 6.5*
= -1.95 0=1
Gross Zj 8*0+6*1+0*0 8*1+6*0+0* 8*0.2+6*- 0.6 0 88
=6 0=8 0.2+0*0.
8 = 0.4
Net Cj - Zj 0 0 -0.4 -0.6 0 Total Profit
Max+? Yes/No NO No No No No
CIT 1 – Quantitative Analysis Chapter 6 – Linear Programming
Linear Programming: Minimization Model

Minimization Model starts with the objective function with the purpose of minimizing a goal which
can be in the form of expenses or cost, travel time, distance, energy, or any variable wherein less is
desired.

Cost is used as the objective function:

Minimize E = e1x + e2y

Where: E = total cost

e1 = cost per unit of x
e2 = cost per unit of y
x = number of units of resource 1 to be used
y = number of units of resource 2 to be used

The constraints are then written in the form of inequalities:

a1x + a2y  A
b1x + b2y  B
c1x + c2y  C
x, y  0 (non-negativity constraint)

where:
a1 = # of units of product 1 made per unit of x
a2 = # of units of product 2 made per unit of y
A = minimum units of product 1 to be made
b1 = # of units of product 2 made per unit of x
b2 = # of units of product 2 made per unit of y
B = minimum units of product 2 to be made
c1 = # of units of product 3 made per unit of x
c2 = # of units of product 3 made per unit of y
C = minimum units of product 3 to be made

Example:
Jacob is the Purchasing Manager of Kraft Foods and he wants to determine the supply mix
that will result on minimum cost. He is able to determine the data necessary for him to make a
decision. He is able to determine the data necessary for him to make a decision. A gallon of Alaska
can produce 5 cases of cheese, 7 cases of butter, and 9 cases of cream. A gallon of Nestle milk can
produce 11 cases of cheese, 8 cases of butter, and 4 cases of cream. He must produce at least 110
cases of cheese, 112 cases of butter, and 72 cases of cream per day. Alaska milk costs $50 per gallon
while Nestle milk costs $55 per gallon.
How many gallons of Alaska milk and Nestle milk should he purchase per day to minimize
cost? How much is the total cost.
Summary Table: Kraft

Process/Product Gallons Per Case Sign Cases/day

Alaska Nestle
Cheese 5 11  110
Butter 7 8  112
Cream 9 4  72
Cost/gal ($) 50 55 Minimum
CIT 1 – Quantitative Analysis Chapter 6 – Linear Programming
Step 1. Develop the initial tableau:

1. Set up the variables:

• X = # of gallons of Alaska milk to be purchased per day

• Y = # of gallons of Nestle milk to be purchased per day
• s1 = slack 1 or excess cases of constraint A (cheese)
• s2 = slack 2 or excess cases of constraint B (butter)
• s3 = slack 3 or excess cases of constraint C (cream)
• Additional Variables
o A1 = artificial variable 1 or initial positive solution for Constraint A
o A2 = artificial variable 1 or initial positive solution for Constraint B
o A3 = artificial variable 1 or initial positive solution for Constraint C
* Artificial variables allow us to automatically come up with a feasible
solution to start the simplex method.

2. Set up the objective function where a relatively high cost is assigned per unit of an artificial
variable ($100 for this case):

Minimize E = 50X + 55Y + 0s1 + 0s2 + 0s3 + MA1 + MA2 + MA3;

where M is a mammoth number, meaning a very large unit cost for the A's, large
enough to be sure that none of the A's will be in the final solution

Minimize E = 50X + 55Y + 0s1 + 0s2 + 0s3 + 100A1 + 100A2 + 100A3

Copy the coefficients to the Cj row. Assign the artificial variables as the initial solution and
copy the coefficient to the basic Cj column.

3. Convert the constraints into inequalities:

Constraint A (cheese):
5X +11Y  110
5X + 11Y - 1s1 + 0s2 + 0s3 + 1A1 + 0A2 + 0A3 = 110
Copy the coefficients to theA1 row.

Constraint B (Butter):
7X + 8Y  112
7X + 8Y +0s1 - 1s2 + 0s3 + 0A1 + 1A2 + 0A3 = 112
7x + 7Y + 0s3 = 84
Copy the coefficients to the A2 row.

Constraint C (cream):
9X 9X + 4Y  72
9X + 4Y +0s1 + 0s2 - 1s3 + 0A1 + 0A2 + 1A3 = 72

Copy the coefficients to the A3 row.

4. Compute the Zj values:

Zj = sumproduct (basic Ci column, variable column)

100(5) + 100(7) + 100(9) = 2100
CIT 1 – Quantitative Analysis Chapter 6 – Linear Programming
5. Compute the (Cj – Zj) values:

(Cj – Zj) = (Cj row) – (Zj row)

6. Determine the minimum negative (Cj – Zj) value:

Initial Tableau

Basic Cj 50 55 0 0 0 100 100 100

Quantity
Cj Solution X Y S1 S2 S3 A1 A2 A3
100 A1 5 11 -1 0 0 1 0 0 110
100 A2 7 8 0 -1 0 0 1 0 112
100 A3 9 4 0 0 -1 0 0 1 72
Gross Zj 2100 2300 -100 -100 -100 100 100 100 29400
Net Cj - Zj -2050 -2245 100 100 100 0 0 0 Total
Min-? Yes/No NO YES NO NO NO NO NO NO Cost
$29,400 is cost for the solution

Step 2. Determine the pivot row:

1. Compute the quantity (Q) ratio (Qr):

Qr = Q/ pivot column

2. Compute the minimum positive quantity ratio (Qr):

Min + ( 10, 14, 18 ) = 10

3. Determine the pivot number (Pn):

= intersection of pivot column and pivot row

First Pivot Row

Solution PivotCol Quantity Quantity/ Min+? Yes/

Mix PivolCol No

A1 11 110 10 Yes
A2 8 112 14 NO
A3 4 72 18 NO

Step 3. Develop the second tableau:

3. Replace the pivot row with the pivot column in the solution mix:

Exit = 100A1
Enter =55Y

4. Replace the ___A1__ row of the initial tableau with the __Y__ row in the second tableau:

_Y___row = __A1___ row of initial tableau/pivot number

CIT 1 – Quantitative Analysis Chapter 6 – Linear Programming
= 5/11 = 0.45
= 11/11 = 1
= -1/11 = -0.09
5. Replace the _____ row of the initial tableau with new values in the second tableau:

New _____ row = old _____ row – (number in old ____ row and pivot column)(_____ row)

6. Replace the ____ row of the initial tableau with new values in the second tableau:

New _____ row = old _____ row – (number in old ______ row and pivot column)(_____ row)

7. Compute the Zj values:

Zj = sumproduct (basic Cj column, variable column)

8. Compute the (Cj – Zj) values:

(Cj – Zj) = (Cj row) – (Zj row)

9. Determine the Minimum negative (Cj – Zj) value:

Second Tableau

Basic Cj 50 55 0 0 0 100 100 100

Quantity
Cj Solution X Y S1 S2 S3 A1 A2 A3
55 Y 0.45

Gross Zj
Net Cj - Zj Total
Min-? Yes/No Cost

Step 4. Determine the pivot row:

2. Compute the quantity ratio (Qr):

Qr = Q / pivot column

2. Compute the minimum positive quantity ratio (Q r):

3. Determine the pivot number (Pn):

CIT 1 – Quantitative Analysis Chapter 6 – Linear Programming
Second Pivot Row

Solution PivotCol Quantity Quantity/ Min+? Yes/

Mix X PivolCol No

Step 5. Develop the third tableau:

1. Replace the pivot row with the pivot column in the solution mix:

Exit =
Enter =

2. Replace the _____ row of the second tableau with the _____ row in the third tableau:

______ row = ______ row of second tableau/pivot #

3. Replace the _____ row of the second tableau with new values in the third tableau:
New _____ row = old _____ row – (number in old ____ row and pivot column) (____row)

4. Replace the ____ row of the second tableau with new values in the third tableau:

New ____ row = old _____ row – (number in old _____ row and pivot column)(X row)

5. Compute the Zj values:

Zj = sumproduct (basic Cj column, variable column)

6. Compute the (Cj – Zj) values:

CIT 1 – Quantitative Analysis Chapter 6 – Linear Programming
(Cj – Zj) = (Cj row) – (Zj row)

7. Determine the maximum positive (Cj – Zj) value:

8. Determine the final solution:

Third Tableau

Basic Cj
Quantity
Cj Solution X Y S1 S2 S3 A1 A2 A3

Gross Zj
Net Cj - Zj Total
Min-? Yes/No Cost