8 ◦ Management Science

FLEX Course Material

Linear programming
Simplex method
(MINIMIZATION)

College of Business and Accountancy

 #8
Linear Programming
Solve linear program Simplex Method
problems in minimization
using graphical method. (Minimization)
◦ Definition of terms:

◦ Surplus variable:
is a variable subtracted from a ‘≥ ’ constraint to change it to an equality. It represents
the quantity by which the utilization of a resource exceeds the prescribed minimum.
◦ Artificial variable
◦ is used to convert ‘≥’ or ‘=’ constraints and these are the most expensive
ingredients in the mixture.
◦How can we solve linear programming problems in
simplex minimization? What are the steps?
 Steps in solving simplex minimization.
◦ 1. Formulate the new linear program by setting up the objective function and the constraints
of the problem.
◦ 2. Change the inequality of the constraints to equality by adding a surplus variable or artificial
variable.
◦ 3. Prepare a simplex table and enter the numerical coefficients of the decision variables from
the new linear program.
◦ 4. Calculate the values of Cj and Zj rows.
◦ 5. Determine the entering variable of the entering variable of the optimum column. ( The most
negative value in the Cj – Zj row will be the optimum column.)
◦ 6. Determine the outgoing variable of the pivotal row. Divide the quantity values by the pivot in
the optimum column and choose the smallest quotient. (Disregard ratios like 3/0, 0/5, 4/-2).
◦ 7. Compute the elements of the entering variable.
◦ 8. Compute the values of the remaining rows.
◦ 9. Calculate the Cj – Zj value for the solution.
◦ 10. If there is no negative value in the Cj – Zj row an optimal solution is obtained.
◦Are rules in treating the constraints for minimization problems
are the same as with rules in maximization problems?
◦ Methods for Treating Constraints for SIMPLEX MINIMIZATION

Original Resulting
Action Required
Constraints Constraints
Add a Slack variable, then change
x≤c the inequality (≤) x+S=c
to equal sign(=).
Add an Artificial variable, but
x≥c subtract a Surplus variable, then x+A–S=c
change the inequality (≥)
to equal sign (=).

x=c Add an Artificial variable then copy x+A=c

the equal sign (=)
Illustrative example:
On a poultry farm, the chickens are given a healthy diet to gain weight using Brand X and
Brand Y feeds. The chickens have to consume at least 40 units of Substance A, and at
least 30 units of Substance B. In the market there are only two types of feeds: Brand X
with a composition of 1 unit of substance A and 1 unit of substance B, and another
Brand Y with a composition of 2 units of substance A and 1 unit of substance B. The
price of Brand X is $12 and Brand Y is $16. What are the quantities of each type of
feeds that have to be purchased to cover the needs of the diet with a minimal cost?
Solve using simplex method.
Solution:

Substance Brand (X) Brand (Y) Requirement

s
A 1 2 ≥ 40

B 1 1 ≥ 30

Cost /gram $12 $16

Step1:
Formulate the Linear Program Model
To minimize: C = $12x + $16
Subject to: x + 2y ≥ 40
x+ y ≥ 30
x, y ≥ 0
◦ Step 2:
Write the new linear program by adding an artificial and surplus variables in
converting the constraints to equal.
To maximize: C = $12x + $16y +0S1 + 0S2 + 100A1 +100 A2
Subject to: x+ 2y + A1 – S1 +0S2 + 0A2= 40
x + y + A2 – S2 + 0S1 + 0A1= 30
x, y, S1,S2 , ≥ 0
◦ Step 3:
Enter the numerical coefficients of the equation in the simplex
tableau and identify the parts and function of each.
◦ Initial simplex tableau: product mix
Cj 12 16 0 0 100 100
PM Quantity x y S1 S2 A1 A2
◦ Cost /unit 100 A1 40 1 2 –1 0 1 0
100 A2 30 1 1 0 –1 0 1
4,000 100 200 –100 0 100 0
+ 3,000 100 100 0 –100 0 100
Zj 7,000 200 300 –100 –100 100 100
Cj – Zj –188 –284 100 100 0 0
For Step 3:
To maximize: C = $12x + $16y +0S1 + 0S2 + 100A1 +100 A2
Subject to: x+ 2y + A1 – S1 +0S2 + 0A2= 40
x + y + A2 – S2 + 0S1 + 0A1= 30
x, y, S1,S2 , ≥ 0
◦ Initial simplex tableau: product mix
Cj 12 16 0 0 100 100
PM Quantity x y S1 S2 A1 A2
◦ Cost /unit
100 A1 40 1 2 –1 0 1 0
◦ Outgoing
100 A2 30 1 1 0 –1 0 1
◦ Variable
4,000 100 200 –100 0 100 0
+ 3,000 100 100 0 –100 0 100
Zj 7,000 200 300 –100 –100 100 100
◦ Cj – Zj –188 –284 100 100 0 0

◦ Steps in developing the second tableau. Optimum column

1. Determine optimum column (most negative value in the Cj – Zj row) and the entering variable (y). It is the
variable in the optimum column.
2. Determine the out going variable by dividing the quantity by the number found in the optimum column in
each row.
◦ For; A1 = 40 ÷ 2 = 20, For A2 = 30 ÷ 1 = 30
◦ The smaller quotient belongs to outgoing variable (A1) .
3. Develop the replaced row (entries of the entering variable). Divide each entry in the
replacement row by the intersection element (2) of the replaced row.
New entries in the New entries for A2 row
Replacing row (RR) Old row – [ (1x Replacing row) ]= Entries in A2
◦ 40÷ 2 = 20 30 – (1x20) = 10
◦ 1 ÷2 = ½ 1 – (1x ½) = ½
◦ 2÷2=1 1– (1 x 1) = 0
◦ –1 ÷ 2 = –1/2 0 – (1x (–1/2) = 1/2
◦ 0÷2=0 –1 – (1x 0) = –1
◦ 1÷2=½ 0– (1 x ½) = –1/2
◦ 0÷2=0 1– (1x 0) = 1
4. Enter the entries of the replacing row and the new entries for S2 row in the second
tableau.
◦ Second simplex tableau: product mix
Cj 12 16 0 0 100 100
PM Quantity x y S1 S2 A1 A2
◦ Cost /unit 16 Y 20 ½ 1 –½ 0 ½ 0
100 A2 10 ½ 0 ½ –1 –½ 1
◦ Outgoing 320 8 16 –8 0 8 0
+ 1,000 50 0 50 –100 –50 100
◦ Variable Zj 1,320 58 16 42 –100 –42 100
Cj – Zj –46 0 –42 100 142 0
◦ Optimum column

◦ The presence of negative value (–46 ) in the x column of the Cj – Zj row of the second tableau indicates
that further improvement is possible. Therefore, the same process will be used to develop the third
tableau. Solution from the second tableau must be repeated in order to determine the new entries for
the third tableau..
Calculating for Zj
◦ Quantity Column: 16(20) + 100(10) = 320 + 1,000 = 1,320
◦ X column : 16(1/2 ) + 100(½ ) = 8 + 50 = 58
◦ Y column; 16(1) + 100(0 ) = 16
◦ S1 column: 16(–1/2) + 100(1/2) = (–8 )+(50) = 42
◦ S2 column : 16(0) + 100(–1) = –100
◦ A1 column: 16(1/2 ) + 100(–1/2) = 8 +(–50) = –42
◦ A2 column: 16(0 ) + 100(1) = 100
Calculating Cj - Zj
◦ 12 – 58 = –46 100 –(–42 ) = 142
◦ 16 – 16 = 0 100 – 100 = 0
◦ 0 – 42 = –42
◦ 0 –(–!00) = 100
◦ Steps in developing the third table: product mix
Cj 12 16 0 0 100 100
◦ Cost /unit PM Quantity x y S1 S2 A1 A2
16 Y 20 ½ 1 –½ 0 ½ 0
◦ Outgoing 100 A2 10 ½ 0 ½ –1 –½ 1
◦ Variable
320 8 16 –8 0 8 0
+ 1,000 50 0 50 –100 –50 100
◦ Zj 1,320 58 16 42 –100 –42 100
Cj – Zj –46 0 –42 100 142 0

◦ Steps in developing the second tableau. Optimum column

1. Determine optimum column (most negative value in the Cj – Zj row) and the entering variable (y). It is the variable in the
optimum column.
2. Determine the out going variable by dividing the quantity by the number found in the optimum column in each row.
◦ For; Y = 20 ÷ 1/2 = 40, For A2 = 10 ÷ 1/2 = 40
◦ The smaller quotient belongs to outgoing variable (A2) .
◦ optimum column
3. Develop the replaced row (entries of the entering variable). Divide each entry in the
replacement row by the intersection element (2) of the replaced row.
New entries in the New entries for Y row
Replacing row (RR) Old Row– (1/2 x Replacing Row)
◦ 10÷ ½ = 20 20–(1/2 x 20 ) = 10
◦ ½ ÷½ =1 ½ – (1/2 x 1) = 0
◦ 0÷½ =0 1–(1/2 x 0) = 1
◦ ½ ÷½ =1 – ½ – (1/2 x 1) = – 1
◦ –1÷ ½ = –2 0–(1/2 x (–2) = 1
◦ –½ ÷ ½ =–1 1 –(1/2 x (–1) = 1
◦ 1÷ ½ = 2 1– (–(1/2 x 2) = 0
4. Enter the entries of the replacing row and the new entries for S2 row in the second
tableau.
◦ Third tableau:
Cj 12 16 0 0 100 100
PM Quantity x y S1 S2 A1 A2
16 Y 10 0 1 –1 1 1 0
12 X 20 1 0 1 –2 –1 2
160 0 16 –16 16 16 0
+ 240 12 0 12 –24 –12 24
Zj 400 12 16 –4 –8 4 24
Cj – Zj 0 0 4 8 96 74

As there is no negative value in the Cj – Zj row , no further improvement is possible. The

optimum solution has been obtained.
Decision: X = 20 units
Y= 10 units
Minimal Cost = $400.00
Calculating for Zj
◦ Quantity Column: 16(10) + 12(20) = 160 + 240 = 400
◦ X column : 16(0) + 12(1) = 0 + 12= 12
◦ Y column; 16(1) + 12(0 ) = 16
◦ S1 column: 16(–1 + 12(1) = (–16 )+(12) = –4
◦ S2 column : 16(1) + 12(–2) = 16 + (-24) = –8
◦ A1 column: 16(1) + 12(–1) = 16 +(–12) = 4
◦ A2 column: 16(0 ) + 12(2) = 0 + 24 = 24
Calculating Cj - Zj
◦ 12 – 12 = 0 100 – 4 = 96
◦ 16 – 16 = 0 100 – 24 =76
◦ 0 –(– 4) = 4
◦ 0 –(–8) = 8
◦ Homework:
◦ Formulate the new linear program and solve using simplex method:
. To minimize: C = $6x + $8
Subject to: 2x + y ≥ 8
x + 2y ≤ 12
x, y ≥ 0
END
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