UEMT 3113 OPERATIONS RESEARCH

AND OPTIMIZATION

Linear Programming – Simplex Algorithm

UNIVERSITI TUNKU ABDUL RAHMAN(UTAR)

DEPARTMENT OF MECHANICAL AND MATERIAL ENGINEERING
LEE KONG CHIAN FACULTY OF ENGINEERING AND SCIENCE
 INTRODUCTION

➢ When decision variables are more than 2, it is always advisable to

use Simplex Method to avoid lengthy graphical procedure.

➢ The simplex method is not used to examine all the feasible solutions.

➢ It deals only with a small and unique set of feasible solutions, the
set of vertex points (i.e., extreme points) of the convex feasible
space that contains the optimal solution.
 RELATED CONCEPTS
➢ Standard form: all constraints are equations and all variables are nonnegative.
➢ Basic feasible solution (Bfs): any basic solution where all variables are
nonnegative. (unboundedness/boundedness)

➢ Nonbasic variable: a chosen set of variables where variables equal to 0.

➢ Basic variable: the remaining variables that satisfy the system of equations at
the standard form.

➢ Slack variable: amount of the resource unused in the ith  constraint.

➢ Excess variable: amount of the resource over satisfied in the ith  constraint.
 RELATED CONCEPT
Optimality condition

- The entering variable in a maximization problem is the nonbasic

variable with the largest negative coefficient in the z-row.

- The entering variable in a minimization problem is the nonbasic

variable with the largest positive coefficient in the z-row.
 RELATED CONCEPT
Feasibility condition

- The leaving variable is the basic variable associated with the

smallest nonnegative ratio with strictly positive denominator.

Controlling constraint

- The controlling constraint is the constraint with the smallest quotient

of the numerical term on the right side of the equality divided by
the coefficient of the variable being programmed.

- Transfer the controlling constraint to the new tableau by dividing

all terms by the coefficient of the variable being programmed.
 RELATED CONCEPT
Gauss-Jordan row operations

1. Pivot row

a. Replace the leaving variable in the Basic column with the entering variable.

b. New pivot row = Current pivot row  Pivot element

2. All other rows, including z

New row = (current row) – (Its pivot column coefficient) x (New pivot row)
 STEP INVOLVED
Step 1. Determine a starting basic feasible solution.

Step 2. Select an entering variable using the optimally condition. Stop if

there is no entering variable; the last solution is optimal. Else go to
step 3.

Step 3. Select a leaving variable using the feasibility condition.

Step 4. Apply the Gauss-Jordan computations to determine the new basic

solution. Go to Step 1.
 EXAMPLE – LEATHER LIMITED
Leather limited manufactures two types of belts: the deluxe model and the regular model. Each type
requires 1 m2 of leather. A regular belt requires 1 hour of skilled labor, and a deluxe belt requires 2
hours. Each week, 40 m2 of leather and 60 hours of skilled labor are available. Each regular belt
contributes $3 to profit and each deluxe belt, $4. If we define

x1 = number of deluxe belts produced weekly

x2 = number of regular belts produced weekly

The appropriate LP is

max z = 4x1 + 3x2

x1 + x2  40 (Leather constraint) (1)

2x1 + x2  60 (Labor constraint) (2)

x1, x2  0
 EXAMPLE – LEATHER LIMITED
Convert (1) and (2) to equality constraints, defined for each  constraint

s1 unused leather

s1 = 40 – x1 – x2 or x1 + x2 + s1 = 40

s2 unused labor hour

s2 = 60 – 2x1 – x2 or 2x1 + x2 + s2 = 60

observe that a point (x1,x2) satisfy the ith constraint if and only if si  0

max z = 4x1 + 3x2

Subject to x1 + x2 + s1 = 40

2x1 + x2 + s2 = 60

x1, x2, s1, s2  0

 EXAMPLE – DIET PROBLEM
My diet requires that all the food I eat come from one of the four “basic food groups”
(chocolate cake, ice cream, soda and cheesecake). At present, the following four
foods are available for consumption: brownies, chocolate ice cream, cola and
pineapple cheese-cake. Each brownie costs 50¢, each scoop of chocolate ice cream
costs 20¢, each bottle of cola costs 30¢, and each piece of pineapple cheesecake
costs 80¢. Each day, I must ingest at 500 calories, 6 oz of chocolate, 10 oz of sugar,
and 8 oz of fat. The nutritional content per unit of each food is shown in Table below.
Formulate a linear programming model that can be used to satisfy my daily
nutritional requirements at minimum cost.
Type of food Calories Chocolate (Ounces) Sugar (Ounces) Fat (Ounces)
Brownie 400 3 2 2
Chocolate ice cream
200 2 2 4
(1 scoop)
Cola (1 bottle) 150 0 4 1
Pineapple cheesecake
500 0 4 5
(1 piece)
 EXAMPLE – DIET PROBLEM
Let

x1 = number of brownies eaten daily

x2 = number of scoops of chocolate ice cream eaten daily

x3 = bottles of cola drunk daily

x4 = pieces of pineapple cheesecake eaten daily

 EXAMPLE – DIET PROBLEM
Min z = 50x1 + 20x2 + 30x3 + 80 x4

Subject to 400x1 + 200x2 + 150x3 + 500x4  500(Calorie constraint)

3x1 + 2x2 6 (Chocolate constraint)

2x1 + 2x2 + 4x3 + 4x4  10 (Sugar constraint)

2x1 + 4x2 + x3 + 5x4 8 (Fat constraint)

x1, x2,x3, x4 0
 EXAMPLE – DIET PROBLEM
Convert the ith  constraint to an equality constraint

e1 oversatisfied calories

e1 = 400x1 + 200x2 + 150x3 + 500x4 – 500, or 400x1 + 200x2 + 150x3 + 500x4 – e1 = 500

e2 oversatisfied chocolate

e2 = 3x1 + 2x2 – 6 or 3x1 + 2x2 – e2 = 6

e3 oversatisfied sugar

e3 = 2x1 + 2x2 + 4x3 + 4x4 – 10 or 2x1 + 2x2 + 4x3 + 4x4 – e3 = 10

e4 oversatisfied fat

e4 = 2x1 + 4x2 + x3 + 5x4 – 8 or 2x1 + 4x2 + x3 + 5x4 – e4 = 8

(x1, x2, x3, x4) satisfies the ith  constraint if and only if ei is nonnegative.
 EXAMPLE – DIET PROBLEM
min z = 50x1 + 20x2 + 30x3 + 80x4

Subject to 400x1 + 200x2 + 150x3 + 500x4 – e1 = 500

3x1 + 2x2 – e2 =6

2x1 + 2x2 + 4x3 + 4x4 – e3 = 10

2x1 + 4x2 + x3 + 5x4 – e4 = 8

(xi , ei)  0 (I = 1, 2, 3, 4)
 EXAMPLE – THE REDDY MIKKS COMPANY
Reddy Mikks produces both interior and exterior paints from two raw
materials, M1 and M2. The following table provides the basic data of the
problem.
Tons of raw material per ton of Maximum daily
Exterior paint Interior paint availability (tons)
Raw material, M1 6 4 24
Raw material, M2 1 2 6
Profit per ton ($ 1000) 5 4
A market survey indicates that the daily demand for interior paint cannot
exceed that for exterior paint by more than 1 ton. Also, the maximum daily
demand for interior paint is 2 tons. Reddy Mikks wants to determine the
optimum (best) product mix of interior and exterior paints that maximizes the
total daily profit.
 EXAMPLE – THE REDDY MIKKS COMPANY
LP model
Maximize z = 5x1 + 4 x2

Subject to
6x1 + 4 x2  24
x 1 + 2 x2  6
-x1 + x2  1
x2  2
x1, x2  0
 EXAMPLE – THE REDDY MIKKS COMPANY
Expressed in equation form
Maximize z = 5x1 + 4 x2 + 0s1 + 0s2 + 0s3 + 0s4
Subject to
6x1 + 4 x2 + s1 = 24
x 1 + 2 x2 + s2 = 6
-x1 + x2 + s3 = 1
x2 + s4 = 2
x 1 , x 2 , s 1 , s2 , s3 , s4  0
Rewrite the objective function
z – 5x1 – 4x2 = 0
 EXAMPLE – THE REDDY MIKKS COMPANY
z x1 x2 s1 s2 s3 s4 solution BV
1 -5 -4 0 0 0 0 0 z
0 6 4 1 0 0 0 24 s1 = 24
0 1 2 0 1 0 0 6 s2 = 6
0 -1 1 0 0 1 0 1 s3 = 1
0 0 1 0 0 0 1 2 s4 = 2
Initial tableau Leaving variable Pivot Equation
Entering variable
R z x1 x2 s1 s2 s3 s4 solution BV Ratio
R0 1 -5 -4 0 0 0 0 0 z
R1 0 6 4 1 0 0 0 24 s1 = 24 24/6 = 4
R2 0 1 2 0 1 0 0 6 s2 = 6 6/1 = 6
R3 0 -1 1 0 0 1 0 1 s3 = 1 1/-1 = -1
R4 0 0 1 0 0 0 1 2 s4 = 2 2/0 = N/A
 GAUSS-JORDAN COMPUTATIONS

1. Pivot row
a. Replace the leaving variable in the Basic column with the entering variable
b. New pivot row = Current pivot row  Pivot element

2. All other rows, including z

New row = (Current row) – (Pivot column coefficient) x (New pivot row)
 EXAMPLE – THE REDDY MIKKS COMPANY
1. Replace s1 in the Basic column with x1:
R1’ row = R1 row  6
1
= (0 6 4 1 0 0 0 24)
6
2 1
= (0 1 0 0 0 4)
3 6

2. R0’ row = R0 row – (-5) x R1’ row

2 1
= 1 −5 −4 0 0 0 0 0 − −5 𝑥 (0 1 0 0 0 4)
3 6
2 5
= (1 0 − 0 0 0 20)
3 6
 EXAMPLE – THE REDDY MIKKS COMPANY
3. R2’ row = R2 row – (1) x R1’ row
2 1
= 0 1 2 0 1 0 0 6 − 1 𝑥 (0 1 0 0 0 4)
3 6
4 1
= (0 0 − 1 0 0 2)
3 6

4. R3’ row = R3 row – (-1) x R1’ row

2 1
= 0 − 1 1 0 0 1 0 1 − −1 𝑥 (0 1 0 0 0 4)
3 6
5 1
= (0 0 0 1 0 5)
3 6
 EXAMPLE – THE REDDY MIKKS COMPANY
5. R4’ row = R4 row – (0) x R1’ row
2 1
= 0 0 1 0 0 0 1 2 − 0 𝑥 (0 1 0 0 0 4)
3 6

= (0 0 1 0 0 0 1 2)
New z = Old z + New x1 value x its coefficient
=0 + 4 x 5 = 20
First tableau
R z x1 x2 s1 s2 s3 s4 solution BV Ratio
R0’ 1 0 -2/3 5/6 0 0 0 20 Z = 20
R1’ 0 1 2/3 1/6 0 0 0 4 x1 = 4 4/(2/3) = 6
R2’ 0 0 4/3 -1/6 1 0 0 2 s2 = 2 2/(4/3) =1.5
R3’ 0 0 5/3 1/6 0 1 0 5 s3 = 5 5/(5/3) =3
R4’ 0 0 1 0 0 0 1 2 s4 = 2 2/1 = 2
 EXAMPLE – THE REDDY MIKKS COMPANY
4
1. R2’’ row = R2’ row 
3
3 4 1
= (0 0 − 1 0 0 2)
4 3 6
1 3 3
= (0 0 1 − 0 0 )
8 4 2
2
2. R0’’ row = R0’ row – (- ) x R2’’ row
3

2 5 2 1 3 3
= 1 0 − 0 0 0 20 − − 𝑥 (0 0 1 − 0 0 )
3 6 3 8 4 2
3 1
= (1 0 0 0 0 21)
4 2
 EXAMPLE – THE REDDY MIKKS COMPANY
2
3. R1’’ row = R1’ row – ( ) x R2’’ row
3

2 1 2 1 3 3
= 0 1 0 0 0 4 − 𝑥 (0 0 1 − 0 0 )
3 6 3 8 4 2
1 1
= (0 1 0 − 0 0 3)
4 2

5
4. R3’’ row = R3’ row – ( ) x R2’’ row
3

5 1 5 1 3 3
= 0 0 0 1 0 5 − 𝑥 (0 0 1 − 0 0 )
3 6 3 8 4 2
3 5 5
= (0 0 0 − 1 0 )
8 4 2
 EXAMPLE – THE REDDY MIKKS COMPANY
5. R4’’ row = R4’ row – (1) x R2’’ row
1 3 3
= 0 0 1 0 0 0 1 2 − 1 𝑥 (0 0 1 − 0 0 )
8 4 2
1 3 1
= (0 0 0 − 0 1 )
8 4 2
New z = Old z + New x2 value x its coefficient
= 20 + 1.5 x (2/3) = 21
Optimize tableau
R z x1 x2 s1 s2 s3 s4 solution BV
R0’ 1 0 0 3/4 1/2 0 0 21 Z = 21
R1’ 0 1 0 1/4 -1/2 0 0 3 x1 = 3
R2’ 0 0 1 -1/8 3/4 0 0 1.5 x2 = 1.5
R3’ 0 0 0 3/8 -5/4 1 0 2.5 s3 = 2.5
R4’ 0 0 0 1/8 -3/4 0 1 0.5 s4 = 0.5
 EXAMPLE – THE REDDY MIKKS COMPANY
Base on the optimally condition, none of the z-row coefficients are negative.
Hence the last tableau is optimal.
Solution column can be interpreted as

Decision variable Optimum value Recommendation

x1 3 Produce 3 tons of exterior paint daily
x2 1.5 Produce 1.5 tons of interior paint daily
z 21 Daily profit is $ 21,000
 EXAMPLE – THE REDDY MIKKS COMPANY
The solution also gives the information of the resources.
A resource is designated as scare if its associated slack variable is zero.
(completely used up)
A resource is designated as abundant, if the slack is positive.

Resource Slack value Status

Raw material, M1 s1 = 0 Scare
Raw material, M2 s2 = 0 Scare
Market limit s3 = 2.5 Abundant
Demand limit s4 = 0.5 Abundant
 EXAMPLE – DAKOTA FURNITURE
Dakota Furniture makes desks, tables, and chairs. Each product needs the limited resources of lumber,
carpentry and finishing; as described in the table. At most 5 tables can be sold per week. Maximize
weekly revenue.
Resource Desk Table Chair Max Avail
Lumber (board ft.) 8 6 1 48
Finishing hours 4 2 1.5 20
Carpentry hours 2 1.5 .5 8
Max Demand Unlimited 5 Unlimited
Price ($) 60 30 20

max z = 60x1 + 30x2 + 20x3

Subject to 8x1 + 6x2 + x3  48
4x1 + 2x2 + 1.5x3  20
2x1 + 1.5x2 + .5x3  8
x2  5
x1, x2, x3  0
 EXAMPLE – DAKOTA FURNITURE
First introduce slack variables and convert the LP to the standard form.
Row Basic Variable
0 z – 60x1 – 30x2 – 20x3 = 0 z = 0
1 8x1 + 6x2 + x3 + s1 = 48 s1 = 48
2 4x1 + 2x2 + 1.5x3 + s2 = 20 s2 = 20
3 2x1 +1.5x2 + 0.5x3 +s3 = 8 s3 = 8
4 x2 +s4 = 5 s4 = 5
5 x1, x2, x3, s1, s2, s3, s4  0

Obtain a starting bfs

As (x1, x2, x3) = 0 (non basic variables equal to 0),
Four other variables (s1, s2, s3, s4) (basic variables) is equal to
s1 = 48, s2 = 20, s3 = 8, s4 = 5
 EXAMPLE – DAKOTA FURNITURE
Determine whether the current bfs is optimal
➢ Determine whether there is any way that Z can be increased by increasing some
nonbasic variable.
➢ If each nonbasic variable has a nonnegative coefficient in the objective function
row (row 0), current bfs is optimal.
➢ However, all nonbasic variables have negative coefficients: It is not optimal.
Find a new bfs
➢ Z increases most rapidly when x1 is chosen as the entering variable.
➢ Divide the RHS of each row with the coefficient of x1.
➢ Choose the smallest ratio among the rows. So Row 3 is the pivot equation. s3 is the
leaving variable.
 EXAMPLE – DAKOTA FURNITURE
Entering variable
Row Basic Variable Ratio
0 z – 60 x1 – 30x2 – 20x3 = 0 z = 0
1 8 x1 + 6x2 + x3 + s1 = 48 s1 = 48 48/8 = 6
2 4 x1 + 2x2 + 1.5x3 + s2 = 20 s2 = 20 20/4 = 5
3 2 x1 +1.5x2 + 0.5x3 +s3 = 8 s3 = 8 8/2 = 4
4 x2 +s4 = 5 s4 = 5
5 x1, x2, x3, s1, s2, s3, s4  0
Leaving variable
Pivot Equation
 EXAMPLE – DAKOTA FURNITURE
The new pivot equation (R3 /2) R3’ = (R3 / coefficient of entering variable in row)
R3’ : x1 + 0.75 x2 + 0.25 x3 + 0.5s3 =4
Then use R3’ to eliminate x1 in all the other rows.
R0’ = R0 + 60 R3’, R1’ = R1 – 8R3’, R2’ = R2 – 4R3’, R4’ = R4 ,
Row Basic Variable Ratio
R0’ z + 15x2 – 5x3 + 30s3 = 240 z = 240
R1’ – x3 + s1 – 4s3 = 16 s1 = 16
R2’ – x2 + 0.5x3 +s2 – 2s3 =4 s2 = 4
R3’ x1 + 0.75x2 + 0.25x3 + 0.5s3 =4 x1 = 4
R4’ x2 +s4 =5 s4 = 5
R5’ x1, x2, x3, s1, s2, s3, s4  0

The new bfs is x2 = x3 = s3 = 0, x1 = 4, s1 = 16, s2 = 4, s4 =5 making z = 240.

 EXAMPLE – DAKOTA FURNITURE
Check optimality of current bfs. Repeat steps until an optimal solution is reached
Rearranging row 0’ to solve for z yields
Z = 240 – 15x2 + 5x3 – 30s3
The only way to maximize Z value is increase x3. (choose the variable with the most negative
coefficient in the row 0’ as the entering variable)

Entering variable
Row Basic Variable Ratio
R0’ z + 15x2 – 5x3 + 30s3 = 240 z = 240
R1’ – x3 + s1 – 4s3 = 16 s1 = 16 16/-1 = -16 (no ratio)
R2’ – x2 + 0.5x3 +s2 – 2s3 =4 s2 = 4 4/0.5 = 8
R3’ x1 + 0.75x2 + 0.25x3 + 0.5s3 =4 x1 = 4 4/0.25 = 16
R4’ x2 +s4 =5 s4 = 5 5/0 = no ratio
R5’ x1, x2, x3, s1, s2, s3, s4  0
Leaving variable Pivot Equation
 EXAMPLE – DAKOTA FURNITURE
Row 1’ : no ratio (x3 has negative coefficient in row 1)
Row 2’: 4/0.5 = 8
Row 3’: 4/0.25 = 16
Row 4’: no ratio (x3 has nonpositive coefficient in row 4)
Rearranging the pivot equation gives
R2” - 2x2 + x3 + 2s2 - 4s3 = 8 (R2’× 2).
Row operations with R2’’ eliminate x3 to give the new system
R0’’= R0’ + 5R2’’, R1’’ = R1’ + R2’’, R3’’ = R3’ - .25R2’’,
R4’’ = R4’
 EXAMPLE – DAKOTA FURNITURE
Row Basic Variable
R0” z + 5x2 + 10s2 + 10s3 = 280 z = 280
R1” – 2x2 + s1 + 2s2 – 8s3 = 24 s1 = 24
R2” – 2x2 + x3 + 2s2 – 4s3 = 8 x3 = 8
R3” x1 + 1.25x2 – 0.5s2 + 1.5s3 = 2 x1 = 2
R4” x2 +s4 = 5 s4 = 5

➢ The bfs is now x2 = s2 = s3 = 0, x1 = 2, x3 = 8, s1 = 24, s4 = 5 making z = 280.

➢ Each nonbasic variable has a nonnegative coefficient in row 0 (5x2, 10s2, 10s3).
➢ THE CURRENT SOLUTION IS OPTIMAL
Report: Dakota furniture’s optimum weekly profit would be $280 if they produce 2 desks and 8 chairs.
Is a canonical form optimal (Max Problem)?
A canonical form is optimal (for a max problem) if each nonbasic variable has a non-negative coefficient
in the canonical form’s row 0.
 TABLEAU FORMAT
Z - 60 x1 - 30x2 - 20x3 = 0
Subject to 8x1 + 6x2 + x3  48
4x1 + 2x2 + 1.5x3  20
2x1 + 1.5x2 + .5x3  8
x2 5
x1, x2, x3  0
Initial tableau
z x1 x2 x3 s1 s2 s3 s4 Solution BV Ratio
1 -60 -30 -20 0 0 0 0 0 z=0
0 8 6 1 1 0 0 0 48 s1= 48 48/8 = 6
0 4 2 1.5 0 1 0 0 20 s2=20 20/4 = 5
0 2 1.5 0.5 0 0 1 0 8 s3=8 8/2 = 4
0 0 1 0 0 0 0 1 5 s4=5 -

x2 = x3 = 0
 TABLEAU FORMAT
First tableau
z x1 x2 x3 s1 s2 s3 s4 Solution BV Ratio
1 0 15 -5 0 0 30 0 240 z = 240
0 0 0 -1 1 0 -4 0 16 s1 = 16 -
0 0 -1 0.5 0 1 -2 0 4 s2 = 4 4/0.5 = 8
0 1 0.75 0.25 0 0 0.5 0 4 x1 = 4 4/0.25 = 16
0 0 1 0 0 0 0 1 5 s4 = 5 -
x2 = s3 = 0

Second and optimal tableau

z x1 x2 x3 s1 s2 s3 s4 Solution BV
1 0 5 0 0 10 10 0 280 z = 280
0 0 -2 0 1 2 -8 0 24 s1 = 24
0 0 -2 1 0 2 -4 0 8 x3 = 8
0 1 1.25 0 0 -0.5 1.5 0 2 x1 = 2
0 0 1 0 0 0 0 1 5 s4 = 5
MULTIPLE OPTIMAL SOLUTIONS
 EXAMPLE – MODIFIED DAKOTA FURNITURE
max z = 60 x1 + 35x2 +20x3
Subject to 8x1 + 6x2 + x3  48
4x1 + 2x2 + 1.5x3  20
2x1 + 1.5x2 + .5x3  8
x2 5
x1, x2, x3  0
Initial tableau
z x1 x2 x3 s1 s2 s3 s4 Solution BV Ratio
1 -60 -35 -20 0 0 0 0 0 z=0
0 8 6 1 1 0 0 0 48 s1= 48 48/8 = 6
0 4 2 1.5 0 1 0 0 20 s2=20 20/4 = 5
0 2 1.5 0.5 0 0 1 0 8 s3=8 8/2 = 4
0 0 1 0 0 0 0 1 5 s4=5 -

x2 = x3 = 0
 TABLEAU FORMAT
First tableau
z x1 x2 x3 s1 s2 s3 s4 Solution BV Ratio
1 0 10 -5 0 0 30 0 240 z = 240
0 0 0 -1 1 0 -4 0 16 s1 = 16 None
0 0 -1 0.5 0 1 -2 0 4 s2 = 4 4/0.5 = 8
0 1 0.75 0.25 0 0 0.5 0 4 x1 = 4 4/0.25 = 16
0 0 1 0 0 0 0 1 5 s4 = 5 None
x2 = s3 = 0

Non basic variable is zero !

Second and optimal tableau
z x1 x2 x3 s1 s2 s3 s4 Solution BV Ratio
1 0 0 0 0 10 10 0 280 z = 280
0 0 -2 0 1 2 -8 0 24 s1 = 24 None
0 0 -2 1 0 2 -4 0 8 x3 = 8 None
0 1 1.25 0 0 -0.5 1.5 0 2 x1 = 2 2/1.25 = 1.6
0 0 1 0 0 0 0 1 5 s4 = 5 5/1 =5
 TABLEAU FORMAT
Another optimal tableau for the modified problem:

z x1 x2 x3 s1 s2 s3 s4 Solution BV
1 0 0 0 0 10 10 0 280 z = 280
0 1.6 0 0 1 1.2 -5.6 0 27.2 s1 = 27.2
0 1.6 0 1 0 1.2 -1.6 0 11.2 x3 = 11.2
0 0.8 1 0 0 -0.4 1.2 0 1.6 x2 = 1.6
0 -0.8 0 0 0 0.4 -1.2 1 3.4 s4 = 3.4

Because x2 has a zero coefficient in the optimal tableau’s row 0, the pivot that
enters x2 into the basis does not change row 0.

In summary, if tables sell for $35, Dakota can obtain $280 in sales revenue by
manufacturing 2 desks and 8 chairs or manufacturing 1.6 tables and 11.2 chairs.

Thus, Dakota has multiple (or alternative) optimal extreme point.

SOLVING MINIMIZATION PROBLEM
METHOD 1
 EXAMPLE

min z = 4x1 - x2

Subject to 2x1 + x2  8

x2  5

x1 - x2  4

x1 , x 2  0
 EXAMPLE - SOLUTION
min z = 4x1 - x2

Subject to 2x1 + x2  8 (1)

x2  5 (2)

x1 - x2  4 (3)

Add a slack variable s1, s2 and s3 to (1) - (3)

2x1 + x2 + s 1 = 8 (1)

x2 + s2 =5 (2)

x1 - x2 + s3 =4 (3)
 Initial Tableau
EXAMPLE - SOLUTION
z x1 x2 s1 s2 s3 Solution BV Ratio

1 -4 1 0 0 0 0 z =0
0 2 1 1 0 0 8 s1 = 8 8/1 = 8
0 0 1 0 1 0 5 s2 = 5 5/1 = 5
0 1 -1 0 0 1 4 s3 = 4 4/-1 = -4 (None)
First Tableau and optimize
z x1 x2 s1 s2 s3 Solution BV

1 -4 0 0 -1 0 -5 z= -5
0 2 0 1 -1 0 3 s1 = 3
0 0 1 0 1 0 5 x2 = 5
0 1 0 0 1 1 9 s3 = 9

x1 = 0, x2 = 5, z = -5
If all nonbasic variables in row 0 have nonpositive coefficients, then the current bfs is optimal.
METHOD 2
 EXAMPLE

min z = 4x1 - x2

Subject to 2x1 + x2  8

x2  5

x1 - x2  4

x1 , x 2  0
 EXAMPLE - SOLUTION
Multiply objective function by (-1)
max -z = -4x1 + x2

Subject to 2x1 + x2  8 (1)

x2  5 (2)

x1 - x2  4 (3)

Add a slack variable s1, s2 and s3 to (1) - (3)

2x1 + x2 + s 1 = 8 (1)

x2 + s2 =5 (2)

x1 - x2 + s3 =4 (3)
 Initial Tableau
EXAMPLE - SOLUTION
-z x1 x2 s1 s2 s3 Solution BV Ratio

1 4 -1 0 0 0 0 z =0
0 2 1 1 0 0 8 s1 = 8 8/1 = 8
0 0 1 0 1 0 5 s2 = 5 5/1 = 5
0 1 -1 0 0 1 4 s3 = 4 4/-1 = -4 (None)
First Tableau and optimize
-z x1 x2 s1 s2 s3 Solution BV

1 4 0 0 1 0 -5 z= -5
0 2 0 1 -1 0 3 s1 = 3
0 0 1 0 1 0 5 x2 = 5
0 1 0 0 1 1 9 s3 = 9

x1 = 0, x2 = 5, z = -5
If all nonbasic variables in row 0 have positive coefficients, then the current bfs is optimal.
UNBOUNDED LP
 EXAMPLE – UNBOUNDED LP
Breadco Bakeries bakes two kinds of bread: French and sourdough. Each loaf of French bread can be
sold for 36¢, and each loaf of sourdough bread for 30¢. A loaf of French bread requires 1 yeast
packet and 6 oz of flour; sourdough requires 1 yeast packet and 5 oz of flour. At present, Breadco has 5
yeast packets and 10 oz of flour. Additional yeast packets can be purchased at 3¢ each, and additional
flour at 4 ¢/oz. Formulate and solve an LP that can be used to maximize Breadco’s profits ( = revenues -
costs).
Define
x1 = number of loaves of French bread baked
x2 = number of loaves of sourdough bread baked
x3 = number of yeast packets purchased
x4 = number of ounces of flour purchased
Then Breadco’s objective is to maximize z = revenues – costs, where
Revenues = 36 x1 + 30 x2 and Costs = 3 x3 + 4 x4
 EXAMPLE – UNBOUNDED LP
Thus, Breadco’s objective function is
max z = 36 x1 + 30 x2 - 3 x3 - 4 x4
Constraints 1
Number of yeast packages used to bake bread cannot exceed available yeast plus purchased yeast.

Available yeast + purchased yeast = 5 + x3

x1 + x 2  5 + x 3 or x1 + x 2 – x 3  5
Constraints 2
Ounces of flour used to bake breads cannot exceed available flour plus purchased flour.
Available flour + purchased flour = 10 + x4
6x1 + 5x2  10 + x4 or 6x1 + 5x2 – x4  10
 EXAMPLE – UNBOUNDED LP
Mathematical model
max z = 36x1 + 30x2 – 3x3 – 4x4
s.t. x 1 + x2 – x 3 5 (yeast constraint)
6x1 + 5x2 – x4  10 (flour constraint)
x1, x2, x3, x4  0

Initial Tableau
z x1 x2 x3 x4 s1 s2 Solution BV Ratio
1 -36 -30 3 4 0 0 0 z=0
0 1 1 -1 0 1 0 5 s1=5 5/1 = 5
0 6 5 0 -1 0 1 10 s2=10 10/6 = 5/3
 EXAMPLE – UNBOUNDED LP
First Tableau
z x1 x2 x3 x4 s1 s2 Solution BV Ratio
1 0 0 3 -2 0 6 60 z = 60
0 0 1/6 -1 1/6 1 -1/6 10/3 s1=10/3 (10/3)/(1/6) = 20
0 1 5/6 0 -1/6 0 1/6 5/3 x1=5/3 none

Second Tableau
z x1 x2 x3 x4 s1 s2 RHS BV Ratio
1 0 2 -9 0 12 4 100 z = 100 Ratio test fail !
0 0 1 -6 1 6 -1 20 x4= 20 none
0 1 1 -1 0 1 0 5 x 1= 5 none

An unbounded LP for a max problem occurs when a variable with a negative in a row 0 has a
non positive coefficient in each constraint.
 EXAMPLE – UNBOUNDED LP
First Tableau
z x1 x2 x3 x4 s1 s2 Solution BV Ratio
1 0 0 3 -2 0 6 60 z = 60
0 0 1/6 -1 1/6 1 -1/6 10/3 s1=10/3 (10/3)/(1/6) = 20
0 1 5/6 0 -1/6 0 1/6 5/3 x1=5/3 none

Second Tableau
z x1 x2 x3 x4 s1 s2 RHS BV Ratio
1 0 2 -9 0 12 4 100 z = 100 Ratio test fail
0 0 1 -6 1 6 -1 20 x4= 20 none
0 1 1 -1 0 1 0 5 x 1= 5 none

We obtained an unbounded LP because we allowed Breadco to pay 3 + 6(4) = 27¢ for the
ingredients in a loaf of French bread and then sell the loaf for 36 ¢. The profit is 9¢. Because
unlimited purchases of yeast and flour are allowed, it is clear Breadco can manufacture as much
French bread as it desires. This is the cause of unbounded LP.