Quantitative Analysis for

Management
Goa Institute of Management
PGDM-FT 2023-2024

26-09-2023 Deepti Mohan | Goa Institute of Management

General form of an LPP
𝑀𝑎𝑥𝑖𝑚𝑖𝑧𝑒 𝑜𝑟 𝑀𝑖𝑛𝑖𝑚𝑖𝑧𝑒
𝑍 = 𝑐1 𝑥1 + 𝑐2 𝑥2 + ⋯ + 𝑐𝑛 𝑥𝑛
s𝑢𝑏𝑗𝑒𝑐𝑡 𝑡𝑜:
𝑎11 𝑥1 + 𝑎12 𝑥2 + ⋯ + 𝑎1𝑛 𝑥𝑛 ≤, =, 𝑜𝑟 ≥ 𝑏1
𝑎21 𝑥1 + 𝑎22 𝑥2 + ⋯ + 𝑎2𝑛 𝑥𝑛 ≤, =, 𝑜𝑟 ≥ 𝑏2
.
.
.
𝑎𝑚1 𝑥1 + 𝑎𝑚2 𝑥2 + ⋯ + 𝑎𝑚𝑛 𝑥𝑛 ≤, =, 𝑜𝑟 ≥ 𝑏𝑚
and
𝑥1 ≥ 0, 𝑥2 ≥ 0, … , 𝑥𝑛 ≥ 0

26-09-2023 Deepti Mohan | Goa Institute of Management

• The simplex method starts with a linear program in standard form.

26-09-2023 Deepti Mohan | Goa Institute of Management

Standard form of an LPP
𝑀𝑎𝑥𝑖𝑚𝑖𝑧𝑒
𝑍 = 𝑐1 𝑥1 + 𝑐2 𝑥2 + ⋯ + 𝑐𝑛 𝑥𝑛
s𝑢𝑏𝑗𝑒𝑐𝑡 𝑡𝑜:
𝑎11 𝑥1 + 𝑎12 𝑥2 + ⋯ + 𝑎1𝑛 𝑥𝑛 = 𝑏1
𝑎21 𝑥1 + 𝑎22 𝑥2 + ⋯ + 𝑎2𝑛 𝑥𝑛 = 𝑏2
.
.
.
𝑎𝑚1 𝑥1 + 𝑎𝑚2 𝑥2 + ⋯ + 𝑎𝑚𝑛 𝑥𝑛 = 𝑏𝑚
and
𝑥1 ≥ 0, 𝑥2 ≥ 0, … , 𝑥𝑛 ≥ 0[𝑁𝑜𝑛 − 𝑛𝑒𝑔𝑎𝑡𝑖𝑣𝑒 𝑣𝑎𝑟𝑖𝑎𝑏𝑙𝑒𝑠]
𝑏1 ≥ 0, 𝑏2 ≥ 0, … , 𝑏𝑚 ≥ 0[𝑁𝑜𝑛 − 𝑛𝑒𝑔𝑎𝑡𝑖𝑣𝑒 𝑅𝐻𝑆 𝑐𝑜𝑛𝑠𝑡𝑎𝑛𝑡𝑠 𝑓𝑜𝑟 𝑎𝑙𝑙 𝑐𝑜𝑛𝑠𝑡𝑟𝑎𝑖𝑛𝑡𝑠]

26-09-2023 Deepti Mohan | Goa Institute of Management

Identify if the following LP is in standard form
1) 𝑀𝑎𝑥𝑖𝑚𝑖𝑧𝑒 𝑍 = 4𝑥1 + 5𝑥2
𝑠. 𝑡.
𝑥1 − 5𝑥2 ≤ 6
−3𝑥1 + 4𝑥2 ≤ 1
𝑥1 , 𝑥2 ≥ 0

26-09-2023 Deepti Mohan | Goa Institute of Management

Identify if the following LP is in standard form
2) 𝑀𝑎𝑥𝑖𝑚𝑖𝑧𝑒 𝑍 = 4𝑥1 + 5𝑥2
𝑠. 𝑡.
𝑥1 − 5𝑥2 = −6
−3𝑥1 + 4𝑥2 = 4
𝑥1 , 𝑥2 ≥ 0

26-09-2023 Deepti Mohan | Goa Institute of Management

Identify if the following LP is in standard form
3) 𝑀𝑖𝑛𝑖𝑚𝑖𝑧𝑒 𝑍 = 4𝑥1 − 5𝑥2
𝑠. 𝑡.
𝑥1 − 5𝑥2 = 6
−3𝑥1 + 4𝑥2 = 4
𝑥1 , 𝑥2 ≥ 0

26-09-2023 Deepti Mohan | Goa Institute of Management

Identify if the following LP is in standard form
4) 𝑀𝑎𝑥𝑖𝑚𝑖𝑧𝑒 𝑍 = 3𝑥1 − 5𝑥2 + 0𝑢
𝑠. 𝑡.
𝑥1 − 5𝑥2 + 𝑢 = 6
−3𝑥1 + 4𝑥2 = 4
𝑥1 , 𝑥2 ≥ 0

26-09-2023 Deepti Mohan | Goa Institute of Management

Identify if the following LP is in standard form
5) 𝑀𝑎𝑥𝑖𝑚𝑖𝑧𝑒 𝑍 = −4𝑥1 + 7𝑥2 + 4𝑢1 − 𝑢2
𝑠. 𝑡.
−2𝑥1 + 3𝑥2 − 𝑢1 = 3
4𝑥1 − 𝑥2 – 𝑢2 = 5
𝑥1 + 2𝑥2 = 2
& 𝑥1, 𝑥2 , 𝑢1 , 𝑢2 ≥ 0

26-09-2023 Deepti Mohan | Goa Institute of Management

Identify if the following LP is in standard form
6) 𝑀𝑖𝑛𝑖𝑚𝑖𝑧𝑒 𝑍 = 4𝑥1 − 5𝑥2 + 𝑥3
𝑠. 𝑡.
−3𝑥1 + 4𝑥2 + 𝑥3 ≤ 4
−3𝑥1 + 4𝑥2 ≥ 0
𝑥1 − 5𝑥2 = −3
𝑥1 , 𝑥2 ≥ 0

26-09-2023 Deepti Mohan | Goa Institute of Management

Converting a <= type inequality to equation
[Slack variable]
𝑀𝑎𝑥𝑖𝑚𝑖𝑧𝑒 𝑍 = 4𝑥1 + 5𝑥2
𝑠. 𝑡.
𝑥1 − 5𝑥2 ≤ 6
−3𝑥1 + 4𝑥2 ≤ 1
𝑥1 , 𝑥2 ≥ 0

26-09-2023 Deepti Mohan | Goa Institute of Management

Converting a <= type inequality to equation
[Slack variable]
𝑀𝑎𝑥𝑖𝑚𝑖𝑧𝑒 𝑍 = 4𝑥1 + 5𝑥2
𝑠. 𝑡.
𝑥1 − 5𝑥2 ≤ 6
−3𝑥1 + 4𝑥2 ≤ 1
𝑥1 , 𝑥2 ≥ 0

26-09-2023 Deepti Mohan | Goa Institute of Management

Converting a <= type inequality to equation
[Slack variable]
𝑀𝑎𝑥𝑖𝑚𝑖𝑧𝑒 𝑍 = 4𝑥1 + 5𝑥2
𝑠. 𝑡.
𝑥1 − 5𝑥2 ≤ 6
−3𝑥1 + 4𝑥2 ≤ 1
𝑥1 , 𝑥2 ≥ 0

To convert a “≤” constraint to an equality, use a slack variable.

26-09-2023 Deepti Mohan | Goa Institute of Management

Converting a <= type inequality to equation
[Slack variable]
𝑀𝑎𝑥𝑖𝑚𝑖𝑧𝑒 𝑍 = 4𝑥1 + 5𝑥2
𝑠. 𝑡.
𝑥1 − 5𝑥2 ≤ 6
−3𝑥1 + 4𝑥2 ≤ 1
𝑥1 , 𝑥2 ≥ 0

In Standard form:
𝑀𝑎𝑥𝑖𝑚𝑖𝑧𝑒 𝑍 = 4𝑥1 + 5𝑥2 + 0𝑠1 + 0𝑠2
𝑠. 𝑡.
𝑥1 − 5𝑥2 + 𝑠1 = 6
−3𝑥1 + 4𝑥2 + 𝑠2 = 1
𝑥1 , 𝑥2 , 𝑠1 , 𝑠2 ≥ 0

26-09-2023 Deepti Mohan | Goa Institute of Management

Converting a >= type inequality to equation
[Surplus variable]
𝑀𝑎𝑥𝑖𝑚𝑖𝑧𝑒 𝑍 = −4𝑥1 + 5𝑥2
𝑠. 𝑡.
𝑥1 − 5𝑥2 ≥ 6
−3𝑥1 + 4𝑥2 ≥ 1
𝑥1 , 𝑥2 ≥ 0

26-09-2023 Deepti Mohan | Goa Institute of Management

Converting a >= type inequality to equation
[Surplus variable]
𝑀𝑎𝑥𝑖𝑚𝑖𝑧𝑒 𝑍 = −4𝑥1 + 5𝑥2
𝑠. 𝑡.
𝑥1 − 5𝑥2 ≥ 6
−3𝑥1 + 4𝑥2 ≥ 1
𝑥1 , 𝑥2 ≥ 0

To convert a “≥” constraint to an equality, use a surplus variable.

26-09-2023 Deepti Mohan | Goa Institute of Management

Converting a >= type inequality to equation
[Surplus variable]
𝑀𝑎𝑥𝑖𝑚𝑖𝑧𝑒 𝑍 = −4𝑥1 + 5𝑥2
𝑠. 𝑡.
𝑥1 − 5𝑥2 ≥ 6
−3𝑥1 + 4𝑥2 ≥ 1
𝑥1 , 𝑥2 ≥ 0

In Standard form:
𝑀𝑎𝑥𝑖𝑚𝑖𝑧𝑒 𝑍 = 4𝑥1 + 5𝑥2 + 0𝑢1 + 0𝑢2
𝑠. 𝑡.
𝑥1 − 5𝑥2 − 𝑢1 = 6
−3𝑥1 + 4𝑥2 − 𝑢2 = 1
𝑥1 , 𝑥2 , 𝑢1 , 𝑢2 ≥ 0

26-09-2023 Deepti Mohan | Goa Institute of Management

Converting a negative RHS of constraint to
positive
𝑀𝑎𝑥𝑖𝑚𝑖𝑧𝑒 𝑍 = −4𝑥1 + 5𝑥2
𝑠. 𝑡.
𝑥1 − 5𝑥2 ≥ 6
−3𝑥1 + 4𝑥2 ≥ −1
𝑥1 , 𝑥2 ≥ 0

26-09-2023 Deepti Mohan | Goa Institute of Management

Converting a negative RHS of constraint to
positive
𝑀𝑎𝑥𝑖𝑚𝑖𝑧𝑒 𝑍 = −4𝑥1 + 5𝑥2
𝑠. 𝑡.
𝑥1 − 5𝑥2 ≥ 6
−3𝑥1 + 4𝑥2 ≥ −1
𝑥1 , 𝑥2 ≥ 0

26-09-2023 Deepti Mohan | Goa Institute of Management

Converting a negative RHS of constraint to
positive
𝑀𝑎𝑥𝑖𝑚𝑖𝑧𝑒 𝑍 = −4𝑥1 + 5𝑥2
𝑠. 𝑡.
𝑥1 − 5𝑥2 ≥ 6
−3𝑥1 + 4𝑥2 ≥ −1
𝑥1 , 𝑥2 ≥ 0

𝑀𝑎𝑥𝑖𝑚𝑖𝑧𝑒 𝑍 = −4𝑥1 + 5𝑥2

𝑠. 𝑡.
𝑥1 − 5𝑥2 ≥ 6
3𝑥1 − 4𝑥2 ≤ 1
𝑥1 , 𝑥2 ≥ 0

26-09-2023 Deepti Mohan | Goa Institute of Management

Converting a negative RHS of constraint to
positive
𝑀𝑎𝑥𝑖𝑚𝑖𝑧𝑒 𝑍 = −4𝑥1 + 5𝑥2
𝑠. 𝑡.
𝑥1 − 5𝑥2 ≥ 6
−3𝑥1 + 4𝑥2 ≥ −1
𝑥1 , 𝑥2 ≥ 0
In Standard form:
𝑀𝑎𝑥𝑖𝑚𝑖𝑧𝑒 𝑍 = −4𝑥1 + 5𝑥2 + 0𝑢 + 0𝑠
𝑠. 𝑡.
𝑥1 − 5𝑥2 − 𝑢 = 6
3𝑥1 − 4𝑥2 + 𝑠 = 1
𝑥1 , 𝑥2 , 𝑢, 𝑠 ≥ 0
26-09-2023 Deepti Mohan | Goa Institute of Management
Converting minimization problem to
maximization problem
𝑀𝑖𝑛𝑖𝑚𝑖𝑧𝑒 𝑍 = −4𝑥1 + 5𝑥2
𝑠. 𝑡.
𝑥1 − 5𝑥2 ≥ 6
−3𝑥1 + 4𝑥2 ≤ 1
𝑥1 , 𝑥2 ≥ 0

26-09-2023 Deepti Mohan | Goa Institute of Management

Converting minimization problem to
maximization problem
𝑀𝑖𝑛𝑖𝑚𝑖𝑧𝑒 𝑍 = −4𝑥1 + 5𝑥2
𝑠. 𝑡.
𝑥1 − 5𝑥2 ≥ 6
−3𝑥1 + 4𝑥2 ≤ 1
𝑥1 , 𝑥2 ≥ 0

26-09-2023 Deepti Mohan | Goa Institute of Management

Converting minimization problem to
maximization problem
𝑀𝑖𝑛𝑖𝑚𝑖𝑧𝑒 𝑍 = −4𝑥1 + 5𝑥2
𝑠. 𝑡.
𝑥1 − 5𝑥2 ≥ 6
−3𝑥1 + 4𝑥2 ≤ 1
𝑥1 , 𝑥2 ≥ 0
In Standard form:
𝑀𝑎𝑥𝑖𝑚𝑖𝑧𝑒 𝑍 = 4𝑥1 − 5𝑥2 + 0𝑢 + 0𝑠
𝑠. 𝑡.
𝑥1 − 5𝑥2 − 𝑢 = 6
−3𝑥1 + 4𝑥2 + 𝑠 = 1
𝑥1 , 𝑥2 , 𝑢, 𝑠 ≥ 0
26-09-2023 Deepti Mohan | Goa Institute of Management
Reduce to Standard form:
1)
Maximize Z = x1 - 4x2
s.t.
-x1 + 5x2 ≤ 5
3x1 + 4x2 ≥ 12
& x1, x2 ≥0

26-09-2023 Deepti Mohan | Goa Institute of Management

Reduce to Standard form:
Maximize Z = x1 - 4x2 Standard form:
𝑀𝑎𝑥𝑖𝑚𝑖𝑧𝑒 𝑍 = 𝑥1 − 4𝑥2 + 0𝑠 + 0𝑢
s.t.
𝑠. 𝑡.
-x1 + 5x2 ≤ 5 −𝑥1 + 5𝑥2 + 𝑠 = 5
3x1 + 4x2 ≥ 12 3𝑥1 + 4𝑥2 − 𝑢 = 12
& 𝑥1, 𝑥2, 𝑠, 𝑢 ≥ 0
& x1, x2 ≥0

26-09-2023 Deepti Mohan | Goa Institute of Management

Reduce to Standard form:
2)
Minimize Z = 4x1 - 7x2
s.t.
2x1 - 3x2 ≤ -3
4x1 - x2 ≥ 5
x1 + 2x2 =2

& x1, x2 ≥0

26-09-2023 Deepti Mohan | Goa Institute of Management

Reduce to Standard form:
2)
Minimize Z = 4x1 - 7x2 Standard form:
s.t. 𝑀𝑎𝑥𝑖𝑚𝑖𝑧𝑒 𝑍 = −4𝑥1 + 7𝑥2 + 0𝑢1 + 0𝑢2
𝑠. 𝑡.
2x1 - 3x2 ≤ -3
−2𝑥1 + 3𝑥2 − 𝑢1 = 3
4x1 - x2 ≥ 5 4𝑥1 − 𝑥2 – 𝑢2 = 5
x1 + 2x2 =2 𝑥1 + 2𝑥2 = 2
& 𝑥1, 𝑥2 , 𝑢1 , 𝑢2 ≥ 0
& x1, x2 ≥0

26-09-2023 Deepti Mohan | Goa Institute of Management