Chapter (3)

Linear Programming

Simplex Method

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 Chapter (3)

Linear Programming

Example on Corner Point Method:

Personal Mini Warehouses is planning to expand its successful Orlando

business into Tampa. In doing so, the company must determine how many
storage rooms of each size to build. Its objective and constraints are as
follows:

Maximize monthly earnings = 50X1 + 20X2

Subject to:
20X1 + 40X2 < 4,000 (advertising budget available)

100X1 + 50X2 < 8,000 (square footage required)

X1 < 60 (rental limit expected)

X1, X2 > 0
Where,

X1 = number of large spaces developed

X2 = number of small spaces developed

Solution:
We will start by plotting the problem constraints as straight lines, the
situation that necessitates converting the inequalities into equations:

Constraint (1) 2X1 + 4X2 = 400

Put X1 = 0
2(0) + 4X2 = 400

X2 = 100

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Put X2 = 0
2X1 + 4 (0) = 400

X1 = 200
Constraint (2)
100X1 + 50X2 = 8,000
Put X1 = 0
100 (0) + 50X2 = 8,000

X2 = 160

Put X2 = 0

100X1 + 50 (0) = 8,000

X1 = 80

Constraint (3)
X1 = 60

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The next step is to determine the corner points:

Corner points` Values of X1, X2

A (0,0)
B (60,0)
C (60,40)
D (40, 80)
E (0,100)

Calculating corner point (C):

We can calculate point (C) which is the intersection point between

constraints (2 and 3) by elimination method through multiplying
constraint (2) by 1 and constraint (3) -100.

100X1 + 50X2 = 8,000 * (1)

X1 = 60 * (-100)

=
100X1 + 50X2 = 8,000
-100 X1 = -6000

50 X2 = 2000
X2 = 40

Calculating corner point (D):

We can calculate point (D) which is the intersection point between

constraints (1 and 2) by elimination method through multiplying
constraint (1) by -50.

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 (2X1 + 4X2 = 400)*(-50)
100X1 + 50X2 = 8,000

-100 X1 -200X2 = -20000

100X1 + 50X2 = 8,000

-150 X2 = -12000
X2 = 80
By substituting in equation (1)

2X1 + 4X2 = 400

2X1 + 4(80) = 400
X1 = 40
The final step is to select the corner with the best value, which would be
the highest profit.

Number of Large Number of small Profit = $50 X1 + $20

spaces spaces X2
0 0 $0
60 0 $3000
60 40 $3800
40 80 $3600
0 100 $2000

Based on the previous table, corner point (C) is the optimal point that
yields the maximum profits.

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 2) Simplex Method:
Simplex method is used when there are two or more variables in the
linear programing problems.
It examines the corner points in a systematic fashion, using basic algebraic
concepts. It does so in an iterative manner that is, repeating the same set
of procedures time after time until an optimal solution is reached.
In this lecture, we will discuss the following:
1- Convert LP constraints to equalities with slack variables.
2- Set up and solve LP problems with simplex tableau.
3- Interpret the meaning of every number in the simplex tableau.
Example (1): The national company produces 2 products X1 , X 2
according to 3 constraints. The following linear programming model
Max Z (profit) = 50 𝐗 𝟏 +40 𝐗 𝟐
Subject to
3 X1 +5 X 2 ≤ 150
1 X1 ≤ 20
8 X1 +5 X 2 ≤ 300
Solution:
We will follow specific steps:
First step: The start will be with converting the inequalities into equalities through
adding a slack variable to each of the constraints. This allows us to write the problem
in standard form.

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 Note

1- Slack variables: Represent unused capacity in resources.

2- Slack variables: Will be equal 1 in constraints and equal zero in objective
function, why? Because slack doesn't make any profit to objective function and we
add it to the constraint to ensure that all the available capacity are fully utilized.
As follows:
Max Z=50 𝐗 𝟏 +40 𝐗 𝟐 + 0 𝐒𝟏 +0 𝐒𝟐 +0 𝐒𝟑
3 X1 +5 X 2 + 𝐒𝟏 = 150
1 X1 +𝐒𝟐 = 20
8 X1 +5 X 2 +𝐒𝟑 = 300

Second step: Setting up the initial simplex tableau:

basic Coefficients 50 40 0 0 0 value
of variables
X1 X2 S1 S2 S3

S1 0 3 5 1 0 0 150

S2 0 1 0 0 1 0 20

S3 0 8 5 0 0 1 300

𝒛 0 0 0 0 0 0

𝒄−𝒛 50 40 0 0 0

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 Note

(1): row Z = Coefficient column * the desired column:

Such as: Z row to X1 = 0*3+0*1+0*8= 0
X 2 = 0*5+0*0+0*5= 0
(2): Row C-Z = C row – Z row:
Such as: X1 = 50 – 0 =50
X 2 = 40 – 0 = 40

o Criterion for entering a new variable into the basic:

We will select the variable that has largest value in row (C-Z). Thus, X1
will enter into the basic column.

oCriterion for removing a variable (resource that will be exploited

first) from the current basic:

We will select the variable that has the lowest value through dividing the
(Value column / entering variable column)
S1 = 150 / 3 = 50
S2 = 20 / 1 = 20
S3 = 300 / 8 = 37.5

So S2 will leave the current basic and X1 will enter into the basic column,
because S2 will be the bottle neck resource.

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 Note

We select the variable that has the lowest value because that resource
presents a bottle neck; because this is the maximum units can be produced
from the three resources.

Determine the new values (pivot row) to the variable that will enter into the basic
column. Note that: The pivot element is the intersection point between the entering variable and
leaving variable.

X1 =old value (pivot row equivalent to S2) / pivot element

20 / 1 = 20
0 / 1 =0
1 / 1 =1
0 / 1 =0
0 / 1 =0
1 / 1 =1
Determine the new rows (𝐒𝟏 , 𝐒𝟑 ) = old row – (new pivot row * above (below) the pivot
element respectively.

𝑆1 𝑆3

150 - (20 *3) = 90 300 - (20 *8) = 140

0 - (0 *3) = 0 1 - (0 * 8) = 1

0 - (1* 3) = -3 0 - (1*8) = -8

1 - (0*3) = 1 0 - (0 *8) = 0

5 - (0* 3) = 5 5 - (0*8) = 5

3 - (1 *3) = 0 8 - (1*8) =0

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Third step: Setting up the new simplex tableau:

Basic Coefficient 50 40 0 0 0 Quantity

of variable
X1 X2 S1 S2 S3 (Value)
S1 0 0 5 1 -3 0 90
X1 50 1 0 0 1 0 20
S3 0 0 5 0 -8 1 140
z 50 0 0 50 0 1,000
c-z 0 40 0 -50 0

o Criterion for entering a new variable into the basic column:

We will select the variable that has largest value in row C-Z
So X 2 will enter into the basic column.

oCriterion for removing a variable from the current basic column:

We will select the variable that has the lowest value through dividing
Value column / entering variable column
S1 = 90 / 5 = 18
X1 = 20/0 = 0
S3 = 140/ 5 = 28

So S1 will leave the current basic column and X 2 will enter into the basic
column, because S1 is the bottle neck resource.

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 Determine the new values (pivot row) to the variable that will enter into
the basic column.
X 2 =old value (pivot row equivalent to S1) / pivot element
90 / 5 = 18
0 / 5 =0
-3 / 5 = -0.6
1 / 5 = 0.2
5 / 5 =1
0 / 5 =0

Determine the new rows (𝐗 𝟏 , 𝐒𝟑 ) = old row – (new pivot row * above (below) the
pivot element respectively.

𝑋1 𝑆3

20 - (18*0) = 20 140- (18 *5) = 50

0 - (0 *0) = 0 1 - (0* 5) = 1

1 - (-0.6* 0) = 1 -8 - (-0.6*5) = -5

0 - (0.2*0) = 0 0 - (0.2*5) = -1

0- (1* 0) = 0 5 - (1*5) = 0

1 - (0 *0) = 1 0 - (0*5) = 0

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Fourth step: Setting up the new simplex tableau:

Basic Coefficient of 50 40 0 0 0 Quantity

variables
X1 X2 S1 S2 S3 (Value)
X2 40 0 1 0.2 -0.6 0 18
X1 50 1 0 0 1 0 20
S3 0 0 0 -1 -5 1 50
z 50 40 8 26 0 1,720
c-z 0 0 -8 -26 0

Stop the rule (optimality criterion)

The optimal solution to a linear programming has been reached when all
of the entries in the (C-Z) row are zero or negative.
End of Lecture (7)

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