Variations in objective function coefficients (cj)

(i) Changing objective function coefficient (cj) of a Non-Basic Variable

Product C is not produced in the optimal product mix because of low value of c3.
However, the optimal product mix may change if the value of c3 increases.

• Finding the range of c3 for which the current basis (solution) remains optimal:

If the value of c3 changes, only the value of z3 – c3 changes in the optimal table, then

1
Calculate z3 – c3 = cBB-1a3-c3 = 2 3 𝑐 4 𝑐
2

Thus, the current solution remains optimal as long as z3 – c3 ≥ 0, i.e. 4 – c3 ≥ 0

=> c3 ≤ 4

• Suppose if c3 is increased from 1 to 6, then find the optimal solution.

=> z3 – c3 = 4 6 = -2 < 0, so the current solution is not optimal

 Finding the new optimal solution
• Update z3 – c3 entry as -2 in the current optimal simplex table
Basis x1 x2 x3 x4 x5 RHS
x1 1 0 -1 4 -1 1
x2 0 1 2 -1 1 2
zj - cj 0 0 -2 5 1 8

• Perform a primal simplex iteration to find the new optimal solution

Basis x1 x2 x3 x4 x5 RHS Ratio
x1 1 0 -1 4 -1 1 -
x2 0 1 2 -1 1 2 2/2 =1
zj - cj 0 0 -2 5 1 8
x1 1 1/2 0 7/2 -1/2 2
x3 0 1/2 1 -1/2 1/2 1
zj - cj 0 1 0 4 2 10
• New optimal solution: x1 = 2, x2 = 0, x3 = 1, Z = 10
(ii) Changing objective function coefficient (cj) of a Basic Variable
• To study the effect of change in c1 and c2
 Effect of change in the objective function coefficient (c1) of basic variable x1
- If c1 decreases below a certain limit, it may not be profitable to include product A in the
product mix.
- Even if c1 increases, the current product mix may change.
• Finding the range of c1 for the current basis (solution) to remain optimal:
Change in c1 changes the profit vector of the basic variables (cB)
Calculate zj – cj for all j = 1, 2, …, 5

1
z1 – c1 = cBB-1a1 c1 = 𝑐 3 𝑐 0 Updated profit coefficient
0 of basic variables
0
z2 – c2 = cBB-1a2 c2 = 𝑐 3 3 0 remains at zero
1

However, the updated profit coefficient of Non-basic variables will change

1
z3 – c3 = cBB-1a3 c3 = 𝑐 3 1 𝑐 5
2
(z4 – c4 z5 – c5) = 𝐜𝐁 𝐁 𝟏 𝑐 3 4 1 4𝑐 3 𝑐 3
1 1
The current basis (solution) will remain optimal as long as
zj – cj ≥ 0 for all j = 1, 2, …, 5
Thus,
The range of c1 for
which the current basis
(solution) will remain
optimal:
3
𝑐 3
4

• If the value of c1 goes beyond these limits, one of the non-basic

variable will enter the basis, and apply a primal simplex iteration
to find the new optimal solution.

• Similar analysis for c2 can be done to find the range of c2 for

which the current basis (solution) will remain optimal, and the
range can be obtained as 2 𝑐 8
(iii) Changing objective function coefficient (cj) of both Basic and Non-
basic Variables
• Suppose the profits on all three products are changed and let
objective function becomes Z = x1 + 4x2 + 2x3
• As a result, z3 – c3, z4 – c4, z4 – c4 will be affected, and z1 – c1, z2 – c2
remain unchanged (zero) with the current basis.
1
• z3 – c3 = cBB-1a3 c3 = 1 4 2 5>0
2
4
z4 – c4 = cBB a4 c4 = 1 4
-1 0 0
1
1
z5 – c5 = cBB-1a5 c5 = 1 4 0 3>0
1

• Thus, the optimal solution does not change.

• However, the problem has multiple optimal solutions, as z4 – c4 = 0

 Variations in constraint matrix (A)
(i) Adding a new variable or an activity
• Suppose the company introduces a new product D which requires 1 unit of labor
and 1 unit of material and can be sold at a unit profit of 3.
• Inclusion of a new product is equivalent to adding a new variable x6, and a
1
column 𝐚 in the initial simplex table.
1
1
• Calculate z6 – c6 = cBB-1a6 c6 = 5 1 3 3 0, therefore the current
1
solution is optimal and producing product D will not improve the present
maximum profit.
1
• If c6 = 8, then z6 – c6 = 5 1 8 2 0. The current solution is not
1
optimal and find the new optimal solution by applying a primal simplex iteration.
• Now, the column B-1a6 in the modified simplex table corresponding to the
4 1 1 3
variable x6 can be obtained as B-1a6 = .
1 1 1 0
Modified Simplex table
Basis x1 x2 x3 x4 x5 x6 RHS Ratio
x1 1 0 -1 4 -1 3 1 1/3
x2 0 1 2 -1 1 0 2 -
zj - cj 0 0 3 5 1 -2 8
x6 1/3 0 -1/3 4/3 -1/3 1 1/3
x2 0 1 2 -1 1 0 2
zj - cj 2/3 0 7/3 23/3 1/3 0 26/3

New optimal solution: x1 = 0, x2 = 2, x3 = 0, x6 = 1/3, Z = 26/3

(ii) Variation in the resource requirements (aij) of
existing activities
• If the variation in aij corresponds to a non-basic variable xj (e.g., x3),
then it is required to recalculate B-1aj and cBB-1aj cj. If cBB-1aj
cj > 0, the current solution remains optimal, otherwise a primal
simplex iteration is performed similar to the previous case to find
the new optimal solution.

• If the variation in aij corresponds to a basic variable xj (e.g., x1 or

x2), then basis matrix B (therefore, B-1 ) itself is affected. As a result,
all the quantities in the optimal simplex table is affected. In such
case, if the current basis is
- primal feasible but not optimal => Apply primal simplex
- primal infeasible but optimal (i.e. dual feasible) => Apply dual simplex
- neither primal feasible nor dual feasible=> Apply simplex method from
scratch.
 (iii) Adding new constraints
• Suppose a carbon emission constraint due to carbon cap is included
in the original problem as x1 + 2x2 + x3 ≤ 10
• If the new constraint is satisfied with the present optimal solution,
then the present solution remains optimal.
• As 1 + 2 × 2 + 0 = 5 ≤ 10, so the present solution does not change.
• Suppose available carbon cap is only 4, then the new constraint
becomes x1 + 2x2 + x3 ≤ 4, and the present optimal solution violates
this constraint.

• Finding the new optimal solution

To find the new optimal solution, add the augmented form of
this new constraint as the third row using x6 as the slack variable.
Modified simplex table
Basis x1 x2 x3 x4 x5 x6 RHS
x1 1 0 -1 4 -1 0 1
x2 0 1 2 -1 1 0 2
x6 1 2 1 0 0 1 4
zj - cj 0 0 3 5 1 0 8
• Performing elementary row operations for the third row to bring the system of equations
in proper form (basic variables x1 and x2 are not forming identity matrix)
R3 = R3 – R1 – 2R2
Basis x1 x2 x3 x4 x5 x6 RHS
x1 1 0 -1 4 -1 0 1 Apply Dual Simplex
x2 0 1 2 -1 1 0 2
x6 0 0 -2 -2 -1 1 -1
zj - cj 0 0 3 5 1 0 8
Ratio -3/2 -5/2 -1
New optimal
x1 1 0 1 6 0 -1 2
solution: x1 = 2,
x2 0 1 0 -3 0 1 1 x2 = 1, x3 = 0,
x5 0 0 2 2 1 -1 1 Z=7
zj - cj 0 0 1 3 0 1 7