CHAPTER TWO

LINEAR PROGRAMMING PROBLEM AND MODELS (LPPM)

2.1. CHAPTER OBJECTIVES

After completing this chapter, you should be able to:

 Explain what Linear Programming is;

 Explain what is meant by the term constrained optimization;
 List and briefly explain the components and assumptions of Linear Programming
models;
 Recognize problems that can be solved using Linear Programming Models and
formulate linear programming models;
 Explain the approaches to solving Linear Programming Models;
 Solve problems using Graphical Method for solving Linear Programming problems;
 Solve problems using Simplex Method for solving Linear Programming Problems;
 Use sensitivity analysis to evaluate a change in the RHS of a constraint and changes in
the value of an objective function coefficient.

2.2. Chapter introduction

Linear Programming is one of the most versatile, powerful and useful techniques for making
managerial decisions. Linear programming technique may be used for solving broad range of
problems arising in business, government, industry, hospitals, libraries, etc.

Linear programming (LP) model enables users to find optimal solutions to certain problems in which
the solution must satisfy a given set of requirements or constraints. It is a model used for optimum
allocation of scarce or limited resources to competing products or activities under such assumptions
as certainty, linearity, fixed technology, and constant profit per unit.
As a decision making tool, it has demonstrated its value in various fields such as production, finance,
marketing, research and development and personnel management.
Determination of optimal product mix (a combination of products, which gives maximum profit),
transportation schedules, Assignment problem and many more are the techniques managers use to
make optimal decisions.
In this chapter, you will learn about linear programming models where emphasis will be given to such
issues as familiarization of the model, problem recognition and formulation using the model, solving
linear programming problem for feasibility and optimality, and post optimality analysis.

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 2.3. Linear programming problem and models
2.3.1. Meaning and Definition
Managers encounter decision making situations in which the set of acceptable solutions is some how
restricted. The restrictions may be imposed internally or externally. An internal restriction might be
the amount of raw materials, availability of labour time, machine time, technical requirements and
budgets that a department has to produce its products. An external restriction might be labour
regulations (e.g. safety equipment, training requirements overtime) that limit the options open to
decision maker. The restrictions are referred to as constraints.
The goal in linear programming is to find the best solution given the constraints imposed by the
problem; hence it is constrained optimization.
Linear Programming is one of the most versatile, powerful and useful techniques for making
managerial decisions. Linear programming technique may be used for solving broad range of
problems arising in business, government, industry, hospitals, libraries, etc whenever we want to
allocate the available limited resources for various competing activities for achieving our desired
objective. As a decision making tool, it has demonstrated its value in various fields such as production,
finance, marketing, research and development and personnel management.
A model, which is used for optimum allocation of scarce or limited resources to competing products
or activities under such assumptions as certainty, linearity, fixed technology, and constant profit per
unit, is linear programming.
It is the mathematical representation of LP problems that has been developed to help management in
decision making, involving the efficient allocation of scarce resources to achieve an optimization
objective.
Scares Resource
To be allocated to: Objectives Optimization

Subject to Maximization Minimization

Constraints

Non-negativity Resource
Constraints constraints
Figure 2.1. The linear programming problem/model

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2.3.2. Components of LP models
A. Objective Function
 is the goal or objective of a management, stated as intent to maximize or to minimize some
important quantity such as profits or costs.
B. Decision Variables
 represent the unknown values to be solved by the decision makers.
 are the variables whose values are unknown and are searched.
C. Parameters:
 are fixed values that specify the impact of one unit on the objective function and the constraint.
D. Constraints
 are limitations or restrictions imposed by the problems. It includes:
 Resource constraints: are restrictions that should be clearly identifiable and measurable
in quantitative terms, which arise from limitation of available resources.
Examples of limited resources are:
 Plant capacity
 Raw materials availability
 Labor power
 Market demand, etc
 Individual constraints: are constraints which are subject to individual decision variables.
 Non-negativity constraints: are constraints that require the decision variables not to take
on negative values.
Generally speaking, a constraint consists of four elements. These are:
I. A right hand side value (RHS): represents quantity that specifies the limit for that
constraint. It must be a constant, not a variable.
II. An algebraic sign: represents whether the limit is:
 An upper bound (< ) that cannot be exceeded
 A lower bound (> ) that is the lowest acceptable limit
 An equality (=) that must be met exactly.
III. The decision variable: to which the constraint applies.
IV. Parameters: The impact that one unit of each decision variable will have on the right
hand side quantity of the constraint.

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2.3.3. Assumptions of LPP models
The following are some important assumptions made in formulating a linear programming model:
A. Linearity
 The Objective Function and the constraints must be linear in nature in order to deal with a
Linear Programming Problems (LPP). Here the term linearity implies proportionality and
additively.
B. Certainty
 It is assumed that the decision maker here is completely certain (i.e., deterministic conditions)
regarding all aspects of the situation, i.e., availability of resources, profit contribution of the
Products, technology, courses of action and their consequences etc.
C. Divisibility
 It is assumed that the decision variables are continuous. It means that companies manufacture
products in fractional units. For example, a company manufactures 2.5 vehicles, 3.2 barrels
of oil etc.
D. Non- Negativity
 indicate all variables are restricted to non-negative values (i.e., their numerical value will be
≥ 0).i.e. negative values of variables are unrealistic or meaningless.

2.4. Formulation of LPP

Formulating linear programming problem models involves the following steps
1. Identify the objective function:
 First decide whether the problem is maximization or minimization problem.
 Second identify the coefficients of each decision variable.
 If the problem is a maximization problem, the profit per unit for each variable must
be determined.
 If the problem is a minimization problem the cost per unit must be determined.
 Make sure the units of measurements of all coefficients in the objective functions
must be the same.
2. Identify the constraints
 First, express each constraint in words.
 Second identify the coefficients of the decision variables in the constraints; and the
RHS values of the constraints.

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  Determine the limits for the constraints i.e. see whether the constraint is of the form
(<), (>) or (=).
 Write the equation
3. Non- negativity assumption (Realistic assumption)
4. Using the above information (step 1 to 3), build the model.

Note
 The coefficients of the variables in the Objective Function are called the profit or cost
coefficients. They express the rate at which the value of the Objective Function
increases or decreases by including in the solution one unit of each of the decision
variables.
 The coefficients of the constraints’ variables are called the input- output coefficients
that indicate the rate at which the given resources are depleted or utilized.

Example 1
 A firm that assembles computers and computer equipment is about to start production two
new microcomputers. Each type of microcomputers will require assembly time, inspection
time and storage space. The amount of each of these resources that can be devoted to the
production of these microcomputers is limited. The manager of the firm would like to
determine the quantity of each microcomputer to produce in order to maximize the profit
generated by sales of these microcomputers.
Additional information
 In order to develop a suitable model of the problem, the manager has met with design and
manufacturing personnel. As a result of these meetings the manager has obtained the
following information.

TYPE ONE TYPE TWO

Profit per unit Birr 60 Birr 50

Assembly time per unit 4 hours 10 hours

Inspection time per unit 2 hours 1 hour

Storage space per unit 3 cubic feet 3 cubic feet

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  The manager has also acquired information on the availability of company resources. These
weekly resources are:

RESOURCE AMOUNTS AVAILABLE

Assembly time 100 hours

Inspection time 22 hours

Storage space 39 cubic feet

 The manager also met with the firm’s marketing manager and learned that demand for the
microcomputers was such that whatever combination of these two types of microcomputers
is produced, all of the outputs can be sold.
Required:
 Formulate the LPPM of the problem.
Solution
Step 1: identify the decision variable
 the quantity/ amount/ units of each microcomputer (microcomputer type 1 and
microcomputer type 2) to be produced

Let x1= represent quantity of microcomputer type 1 to be produced

x2= represent quantity of microcomputer type 2 to be produced
Step 2: Identify the objective function
 The problem is maximization problem, as indicated in the problem (5th line of the problem)
 To write the equation both the objective function and the constraints summarize the given
information in tabular form accordingly

RESOURCE TYPE ONE TYPE TWO AVAILABILITY

Assembly time per unit 4 hours 10 hours 100 hours

Inspection time per unit 2 hours 1 hour 22 hour

Storage space per unit 3 cubic feet 3 cubic feet 39 cubic feet

Profit per unit Birr 60 Birr 50

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 Hence, the objective function is

 Max Z = 60x1 + 50 x2

Step 3: identify each constraints and write the equation

 Assembly time 4x1 + 10x2< 100

 Inspection time 2x1 + x2< 22

 Storage space 3x1+ 3x2 < 39

 Non negativity constraint x1 & x2 > 0

Step 4: write the summarized form of the model

In summary, the mathematical model of the microcomputer

problem is:
Max Z= 60x1 + 50x2
Subject to
4x1 + 10x2< 100
2x1 + x2< 22
3x1+ 3x2 < 39
x1 & x2 > 0

Example 2
A firm is engaged in breeding pigs. The pigs are feed on various products grown on the farm.
In view of the need to ensure certain nutrient constituents (call them vitamins, minerals and
proteins) it is necessary to buy two additional products say A and B. One unit of product
A contains 36 units of vitamins, 3 units of minerals and 20 units of proteins. One units of
product B contains 6 units of vitamins, 12 units of minerals and 10 units of proteins. The
minimum requirement of vitamins, minerals and proteins is 108units, 36units and 100 units
respectively. Product A costs birr 20 per unit and product B costs birr 40 per unit
Required
Formulate the LPPM of the problem
Solution
Step 1: identify the decision variables
 Product A and B to be purchased to prepare the food for pigs
Let x1 represent product A to be purchased
X2 represent products B to be purchased

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Step 2: identify the objective function
 The problem is a minimization problem, so the equation;
Min Z = 20x1 + 40 x2

 we can put the information in a tabular form as follows

NUTRIENT
CONSTITUENTS PRODUCT A PRODUCT B REQUIREMENT

Vitamins 36 units 6 units 108 units

Minerals 3 units 12 units 36 units

Proteins 20 units 10 units 100 units

Cost per unit Birr 20 Birr 40

Step 3: identify each constraints and write the equation

 Vitamins 36x1 + 6x2> 108

 Minerals 3x1 +12 x2> 36

 Proteins 20x1+ 10x2 >100

 Non negativity constraint x1 & x2 > 0

Step 4: write the summarized form of the model

In summary, the mathematical model of the problem is:

Min Z=20x1 + 40x2
Subject to
36x1 + 6x2> 108
3x1 +12 x2> 36
20x1+ 10x2 >100
x1 & x2 > 0

2.5. Approaches to solve LPPM

There are two methods used to solve LP problems
1. Graphical methods

2. Simplex methods

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2.5.1. Graphical methods

 Is used to find solutions for LPP when the decision variables of the problem are not greater
than two.

Note: Graphical LP is a two-dimensional model

Procedure
To apply this method, we should follow the following steps.
1. Formulate LPP

2. Convert the inequalities of constraints into equality

3. Draw the constraint lines by considering mass equation

4. Locate the corner points of feasible region

5. Determine the values of the objective function at each corner points of feasible region

6. Select the point on the feasible region that optimizes the objective function-optimal
solution (The most favorable values)

7. Interpret the results

Example 1
Consider the microcomputer problem formulated above and solve it using the graphical
approach.
Step one: Graph each constraints:
 To draw the graph first change the inequality to equality i.e. replace the < and > sign
into = sign.
Max Z=60x1 + 50x2
Subject to
36x1 + 6x2> 100 36x1 + 6x2= 100
3x1 +12 x2> 22 3x1 +12 x2= 22
20x1+ 10x2 >39 20x1+ 10x2 =39
x1 & x2 > 0 x1 & x2 = 0
 Then find the x and y intercepts (in our case x1 and x2 respectively) - points where each
constraint intersects the axis. To do so, set x1 = 0 to find values for x2 and set x2= 0 to find
values for x1.

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For the first constraint:
4x1 + 10x2 = 100 4x1 + 10x2 = 100
4(0) + 10 x2 = 100 4x1 + 10(0) = 100
10x2= 100 4x1= 100
X2= 10 x1 = 25
The x1 and x2 intercepts are (0, 10) (25, 0). Similarly calculate for the second and third constraints.
For the second constraint the intercepts are (0, 22) (11, 10)
For the third constraint the intercepts are (0, 13) (13, 0)
Graph the constraints using the intercepts calculated above. The graph is:

 As indicated in the graph, the corner points of the feasible region (the corner points of the
shaded region) are A, B, C, D and E. The next task is to find the coordinates of these
corner points, some are determined by observation and some are through simultaneous
equation. Then we test each corner points to find the points that results the optimal
solution. These activities are indicated in the following table.

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 Evaluating the corner points
Point Coordinates How determined Value of the objective function
X1 X2 Max Z=60x1 + 50x2
A 0 0 Inspection 60(0) + 50(0) = 0
B 11 0 Inspection 60(11) + 50(0) =660
C 9 4 Simultaneous equation 60(9) + 50(4) =740
D 5 8 Simultaneous equation 60(5) + 50(8) =700
E 0 10 Inspection 60(0) + 50(10)=500

Since the maximum value (because the objective function of the problem is maximization) is 740, the
solution is:
X1= 9, X2= 4 and The Maximum Profit is Birr 740.
When we interpret the result, we state the company should produce 9 units of microcomputer type
one and 4 units of microcomputer type two to get a maximum profit of Birr 740.
Example 2
Max.Z  50 X 180 X 2
St :
X 12 X 2 32
X 12 X 2 82
X1, X 2  0
Note: Try to solve the problem by yourself, in separate piece of paper before you
check the answer.

Example 3
Consider two models of color TV sets; Model A and B, are produced by a company to
maximize profit. The profit realized is $300 from a TV set of model A, and $250 from that of
set B. The limitations are:
A. availability of only 40hrs of labor each day in the production department
B. a daily availability of only 45 hrs on machine time
C. ability to sale 12 set of model A
Required
How many sets of each model will be produced each day so that the total profit will be as
large as possible?

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 Resources used per unit

Constraints Model A Model B Maximum Available hrs.

(X1) (X 2)

Labor hr. 2 1 40

Machine hr. 1 3 45

Marketing hr. 1 0 12

Profit $300 $250

Note: Try to solve the problem by yourself, in separate piece of paper before you
check the answer.

Solution
1. Formulation of mathematical modeling of LPP
Max Z=300X1 +250X2
St:
2X1 +X2< 40
X1 +3X2< 45
LPP Model
X1 < 12
X1, X2 >0
2. Convert constraints inequalities into equalities
2X1 +X2 = 40
X1 +3X2= 45
X1 = 12
3. Draw the graph by intercepts
2X1 +X2 = 40 ==> (0, 40) and (20, 0)
X1 +3X2= 45==> (0, 15) and (45, 0)
X1 = 12==> (12, 0)
X1, X2 >0

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 2X1 +X2 = 40
X2
X1=0
40 X1=12

X1 +X2 = 45
15

Feasible C(12, 11)

Region X2=0
X1
D
A 12 20 45

4. Identify the feasible area of the solution which satisfies all constrains.
5. Identify the corner points in the feasible region
A (0, 0), B (0, 15), C (12, 11) and D (12, 0)
8. Identify the optimal solution point

Corners Coordinates Max Z=300 X1 +250X2

A (0, 0) $0
B (0, 15) $3750
C (12, 11) $6350
D (12, 0) $3600
Interpretation
12 units of product A and 11 units of product B should be produced so that the total
profit will be $6350
Example 4
A manufacturer of light weight mountain tents makes two types of tents, REGULAR tent and
SUPER tent. Each REGULAR tent requires 1 labor-hour from the cutting department and 3
labor-hours from the assembly department. Each SUPER tent requires 2 labor-hours from the
cutting department and 4 labor-hours from the assembly department .The maximum labor
hours available per week in the cutting department, and the assembly department are 32 and
84 respectively.
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 Moreover, the distributor, because of demand, will not take more than 12 SUPER tents per
week. The manufacturer sales each REGULAR tents for $160 and costs$110 per tent to make.
Where as SUPER tent ales for $210 per tent and costs $130 per tent to make.
Required
A. Formulate the mathematical model of the problem
B. Using the graphic method, determine how many of each tent the company should
manufacture each tent the company should manufacture each week so as to maximize its
profit?
C. What is this maximum profit assuming that all the tents manufactured in each week are sold
in that week?
Solution
__________________________________________________________
Labor hours per tent
Department REGULAR (X 1) SUPER(X2) Maximum labor-hours
available per week

___________________________________________________________________

Cutting department 1 2 32
Assembly department 3 4 84
Selling price per tent $160 $210
Cost per tent $110 $130
Profit per tent $50 $80

 The distributor will not take more than 12 SUPER tents per week. Thus, the manufacturer
should not produce more than 12 SUPER tents per week.
Decision variable: number of regular and super tent to be produced per week.
Let X1 =The No of REGULAR tents produced per week.
X2 =The No of SUPER tents produced per week.
X1 and X2 are called the decision variables

Max.Z  50 X 180 X 2
St :
X 12 X 2 32 ……….Cutting department constraint
LPP Model
X 14 X 2 82 ……….Assembly department constraint
X 2  12 ……….Demand constraint

X 1 , X 2  0 ……….Non-negativity constraints
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Corners Coordinates Max Z=50 X1 +800X2
A (0, 0) $0
B (0, 12) $960
C (8, 12) $1360
D (20, 6) $1480
E (28, 0) $1400
Interpretation
The manufacturer should produce and sale 20 REGULAR tents and 6 SUPERS tents to
get a maximum weekly profit of $1480.
Example 5
Suppose that a machine shop has two different types of machines; machine 1 and machine 2,
which can be used to make a single product .These machine vary in the amount of product
produced per hr., in the amount of labor used and in the cost of operation. Assume that at least
a certain amount of product must be produced and that we would like to utilize at least the
regular labor force. How much should we utilize each machine in order to utilize total costs
and still meets the requirement?
Solution: The key information inputs in the problem are provided as follows
_______________________________________________________________
Resource used
Machine 1 (X1) Machine (X2) Minimum required hours

_________________________________________________________________________
Product produced/hr 20 15 100
Labor/hr 2 3 15______
Operation Cost $25 $30____________________________________
The problem is formulated in the next model
Min.Z  25 X 130 X 2
St :
20 X 115 X 2 100 LPP Model

2 X 13 X 2 15
X1, X 2  0
Constraint equation:
20X1 +15X2=100 ==> (0, 20/3) and (5, 0)
2X1+3X2=15 ==> (0, 5) and (7.5, 0)
X1 X2> 0

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 the feasible solution space and the corner points are specified on the graph below

X2
X1 =0
A (0, 20/3)

Feasible Region

B (2.5, 3.33)
X2 =0

X1
___________________________________________________________________________________________
5 C (7.5, 0)
Corners Coordinates MinZ=25 X1 + 30X2
A (0, 20/3) 200
B (2.5, 3.33) 162.5
C (7.5, 0) 187.5
The optimal solution mix is represented by X1 =2.5, X2=3.33, and Min Z= 162.5
Example 6
A company owns two flour mills (A and B) which have different production capacities for
HIGH, MEDIUM and LOW grade flour. This company has entered contract supply flour to
a firm every week with 12, 8, and 24 quintals of HIGH, MEDIUM and LOW grade
respectively. It costs the Co. $1000 and $800 per day to run mill A and mill B respectively.
On a day, mill A produces 6, 2, and 4 quintals of HIGH, MEDIUM and LOW grade flour
respectively. Mill B produces 2, 2 and 12 quintals of HIGH, MEDIUM and LOW grade flour
respectively.
Required
How many days per week should each mill be operated in order to meet the contract order
most economically standardize? Solve graphically.
Solution
No of days per week of Minimum flour in
Mil A (X1) Mill B(X2) quintals
HIGH Capacity (in quintal) 6 2 12
MEDIUM Capacity (in quintal) 2 2 8
LOW Capacity (in quintal) 4 12 24
Running cost/day $1000 $800

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Max.Z  100 X 1800 X 2
St :
6 X 12 X 2 12
2 X 12 X 2 8
4 X 1  12 X 2  24
X1, X 2  0
Optimal Solution values: X1 =1 X2=3 and Min Z= $3400
Note
In maximization problems, our point of interest is looking the furthest point from the origin.
In minimization problems, our point of interest is looking the point nearest to the origin.

2.5.2. Solving for LPPs using the Simplex method

The graphical method to solving LPPs provides fundamental concepts for fully understanding the LP
process. However, the graphical method can handle problems involving only two decision variables
(say X1 and X2).
In the 1940s George B. Dantzig developed an algebraic approach called the Simplex Method, which
is an efficient approach to solve applied problems containing numerous constraints; and involving
many variables that cannot be solved by the graphical method.
The simplex method is an ITERATIVE or “step by step” method or repetitive algebraic approach that
moves automatically from one basic feasible solution to another basic feasible solution improving the
situation each time until the optimal solution is reached at.
Similar to the graphical solution approach, this method can be applied to solve for LPPs of different
objectives with various set of constraints.

Solving maximization problems

1. Maximization having all the constraints in “<” form
Example 1
Consider the microcomputer problem which is solved with graphical method so that you can
compare and contrast the two approaches.
Max Z= 60x1 + 50x2
Subject to
4x1 + 10x2< 100
2x1 + x2< 22
3x1+ 3x2 < 39
x1 & x2 > 0

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Solution procedure
To solve the problem using the simplex approach, follow the following steps.
Step 1: Formulate LPP Model:
In our example it is already done.
Step 2: Introduce slack variable convert the inequality of constraints into equality
(Standardize the problem)
Convert each constraint into a standard form by introducing a variable called Slack variable,
surplus variable and artificial variable

Slack Variables(S): is /are added to the left-hand side of a < constraint to convert the
constraint into its standard form. The value of the slack variable shows unused or
underutilized resource.

Surplus variables(S): is/are added to the left-hand side of a > constraints to convert the
constraint into its standard form. The value of the surplus variable shows the excess resources
used.
Artificial variables (A): somewhat analogous to slack variables in that they are added to
equality and a > constraints in the same way that slack variables are added to a < constraints.
However artificial variables have no physical interpretation; they merely serve as a device to
enable us to use the simplex process.
Since the above problem constraints have all a < algebraic sign, we use slack variables for
standardizing the problem.

Note
 A slack variable is always added for a < constraint to convert the constraint to a standard
form.

Slack variables represent unused resource or idle capacity. Thus, they don’t produce any product and
their contribution to profit is zero.

Slack variables are added to the objective function with zero coefficients.

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 Max Z= 60x1 + 50x2+0s1+0s2+0s3
Subject to
4x1 + 10x2+s1=100
2x1 + x2+s2= 22
3x1+ 3x2 +s3=39
x1 , x2 ,s1,s2,&s3= 0
Note
 To standardize an LPP, start from the constraint and finally move to the objective function.
 When you add the slack variables, it should be according to the existence of the constraints
(how it is written in the model).
 Add S1 to the first constraint, s2 to the second constraints etc

Step 3: Develop the initial simplex tableau

To make the data ready for analysis, the simplex method uses a table called the simplex tableau or the
simplex matrix.
In constructing the initial simplex tableau, the search for the optimal solution begins at the origin.
Indicating that nothing can be produced;
Thus, based on this assumption, no microcomputer type one and microcomputer type two is
produced, which implies that x1 =0 and x2=0
==>4x1+10x2 + s1 +0 s2+ 0 s3= 100 ==> 2x1+x2 +0s1 + s2+ 0s3= 22
4(0) +10(0) + s1 +0 s2+ 0 s3= 100 2(0) +0 + 0s1 + s2+ 0 s3= 22
s1= 100 – Unused assembly time. s2= 22 – Unused inspection time.
==> 3x1+ 3x2+0s1 +0s2+ s3= 39
3(0) +3(0) +0s1 +0 s2+ s3= 39
s3= 39 – Unused storage space.
Therefore, Max Z=60x1 +50x2 + 0 s1 +0 s2+ 0 s3
=60(0) +50(0) + 0(100) +0(22) + 0(39)
=0
Note
 In general, whenever there are n variables and m constraints (excluding the non-
negativity), where m is less than n (m<n), n-m variables must be set equal to zero before
the solution can be solved algebraically.

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 a. Basic variables
 are variables with non-zero solution values
 are variables that are in the basic solution
 have 0 values in the C-Z row
b. Non-basic variables
 are variables with zero solution values
 are variables that are out of the solution

From the above example n=5 variables (x1, x2, s1, s2, and s3) and m=3 constraints (assembly, inspection
and storage space constraints), excluding non-negativity.

Therefore, n-m=5-3=2 variables (x1 and x2) are set equal to zero in the 1st simplex tableau. These are
non-basic variables. 3 Variables (s1, s2, and s3) are basic variables (in the 1st simplex tableau) because
they have non-zero solution values.
Step 3: Construct the initial simplex tableau(continued)
Initial simplex tableau
Slack variables
variables column
Real or decision

Solution quantity
Profit per unit

columns
Basic or DV
column

column

column

Profit per unit row

C 60 50 0 0 0
BV X1 X2 S1 S2 S3 Q
S1 0 4 10 1 0 0 100 R1
S2 0 2 1 0 1 0 22 R2 Constraint
equation rows
S3 0 3 3 0 0 1 39 R3
Z 0 0 0 0 0 0
Gross Profit row
C–Z 60 50 0 0 0
Net Profit row
/Indicator row/

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 Step 4: Determine the “incoming” or “entering” variables

Note:
 The entering variable is the variable that has the most (the largest) positive value in the
C - Z row (indicator row).
 It is the variable that has the highest contribution to profit per unit.
 X1 in our case is the entering variable. (Because the maximum number in the c-z row
is 60)
 The column associated with the entering variable is called key or pivot column X1
column in our case.

Step 5: Determine the “leaving “or “outgoing” variable

In this step, we determine the variable that will leave the solution for X1.
To identify the leaving variable, we should calculate the ratio first and then we should select the
minimum non-negative ratio. (Minimum ratio criteria)

Note
 The leaving variable is the variable that has the smallest replacement ratio(minimum ratio).
 S2 in our case is the leaving variable. (Because the smallest replacement ratio is 11
 The row associated with the entering variable is called key or pivot row S 2 row in our case.

The pivot element is the intersection point between the pivot row and pivot column; No 2 in
the above example

Replacement Ratio (RR) = Solution Quantity (Q)

Corresponding values in pivot column OR

Minimum Ratio (MR) = RHSV

Corresponding pivot column elements

In our case
100 =25
4
22 = 11 is the minimum
2
39 =13
3

It is interesting to note that the three ratios (25, 11, 13) corresponding to the intersections of the
constraints with the x1(look the graphical solution).
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Note that the smallest of the ratios represents the extreme point of the feasible solution space; the other
points lie beyond the feasible solution space. Hence by selecting the smallest ratio, the simplex
procedure stays within the feasible solution space. It sometimes happens that some of the substation
rates for the variable we want to bring into solution are zero or negative. We don’t nee to divide the
quantity values by a negative or a zero substitution rates.
Step 6: Calculate the values of pivot row (Row to be replaced) or Perform row operations.
Perform algebraic operations on the PIVOT COLUMN to convert the pivot element into 1 and the
remaining pivot column numbers into 0. Obtain the new row values through the following two
operations:
Pivot row element = Old pivot row element OR 1/ Key element X corresponding
Key element elements of old pivot row

 Multiply (divide) all of the elements in a row by a constant

 Add or subtract the multiple of the row to or from another row
After identifying the entering, leaving and pivot element construct the second tableau by replacing
the S2 by X1 in the basic solution.
2nd tableau

C 60 50 0 0 0

SV X1 X2 S1 S2 S3 Q RR

S1 0 0 8 1 -2 0 56 56/8=7 R’1=R1+ (-4R’2)

X1 60 1 1/2 0 1/2 0 11 11/1/2=22 R’2=R2/2
S3 0 0 3/2 0 -3/2 1 6 6/3/2=4 R’3=R3+ (-3R’2)
Z 60 30 0 30 0 660
C–Z 0 20 0 -30 0

Note the following to see how it is calculated

Since the minimum replacement ratio (RR) is associated with the 2nd row we should start the operation
on the second row i.e. we should change the pivot element into 1. To do so we should divide the whole
elements of the 2nd row by the pivot element of the first tableau.
See the analysis below.
New R2 =2 1 0 1 0 22 when we divide it by 2 we get 1 ½ 0 ½ 0 11 so
this will be the new set row values of the second tableau.
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 Step 7: Calculate values for the remaining rows
Method:
New row element = (Old row element) + (No. above or below key element) X
corresponding elements of revised row
Then calculate the new values of the first row and the third row of the second tableau. You can begin
in ether row one or row three.
Let’s start with the first row
Bring the first row values of the initial tableau
4 10 1 0 0 100
Then take the second row values of the 2nd tableau
1 ½ 0 ½ 0 11
Then, in order to change 4 into 0, ask yourself what algebraic operation should be done. Very
simple, multiply the whole elements of the second tableau’s value by -4.
You get
-4 -20 -2 0 -44, then add this value to the first row value of initial tableau.
Look at the summary below.
4 10 1 0 0 100 4 10 1 0 0 100 4 10 1 0 0 100
1 ½ 0 ½ 0 11 -4( 1 ½ 0 ½ 0 11) + -4 -2 0 -2 0 -44
0 8 1 -2 0 56 will be the new
values of the first row of the second tableau. To put it in a simple formula
NR1=OldR1 + (-4NR2)
Similarly calculate for row three of the second tableau
3 3 0 0 1 39 3 3 0 0 1 39 3 3 0 0 1 39
1 ½ 0 ½ 0 11 -3 ( 1 ½ 0 ½ 0 11) + -3 -3/2 0 -3/2 0 -33
0 3/2 0 -3/2 1 6 will be the
new values of the 3rd row value of the second tableau. To put it in a simple formula again it will be:
NR3=OldR3 + (-3NR2)

Note
 Divide each element of the pivot row by the pivot element to find new values in the key or pivot row.
 Perform row operations to make all other entries for the pivot column equal to zero.

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Then calculate the Z row values i.e. these are found by multiplying the values in each column by the
corresponding coefficients in the C column and adding them.

BV C X1 x2 s1 s2 s3 Q

S1 0 0(0 ) =0 0 (8 )=0 0 (1)=0 0(-2 ) =0 0(0)=0 0(56)=0

X1 60 60(1 )=60 60 (1/2) =30 60( 0 )=0 60(1/2)=30 60 (0)=0 60(11)=660

S3 0 0(0 )= 0 0(3/2) =0 0( 0 )=0 0(-3/2)=0 0( 1)=0 0(6)= 0

Z 60 30 0 30 0 660

Then finally calculate C – Z row. It is simply about following the formula.

Step 8 Test for optimum solution
If all Cj-Zj < 0 (Inclusive zeros and negative) it is optimum solution.
If not repeat step 4-8 till optimum basic feasible solution is obtained. i.e. repeat these steps till no
positive value occurs in the C – Z row. Or all Cj- Zj values are zeros and negative
Note
 A simplex solution in a maximization problem is optimal when the C-Z row consists entirely
zeros and negative No (when there are no positive values in the C-Z row.

3rd simplex tableau

BV C 60 50 0 0 0 Q

X1 X2 S1 S2 S3
S1 0 0 0 1 6 -16/3 24
X1 60 1 0 0 1 -1/3 9
X2 50 0 1 0 -1 2/3 4
Z 60 50 0 10 40/3 740
C-Z 0 0 0 -10 - 40/3

 The entire C – Z < 0 indicating that no additional potential for improvement

exists.
 Optimal solution is reached.
 the optimal solution is where X1=9, X2=4, S1=24and Max Z=740

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Interpretation of the Results
The last step is interpreting the result: in order to achieve the maximum weekly profit of birr
740, the company should produce 9 units of microcomputer type one and 4 units of
microcomputer type two. This will leave no slack in either inspection (s2=0) or storage space
(s3 =0). How ever, there will be 24 hours of assembly time that is unused.
Example 2
A Juice producing Company has available two kinds of fruit Juices: Orange Juice and Grape
Juice. The company produces two types of punches: Punch A and Punch B. One bottle of
punch A requires 20 liters of Orange Juice and 5 liters of Grape Juice. Where as 1 Bottle of
punch B requires 10 liters of Orange Juice and 15 liters of Grape Juice. From each bottle of
Punch A; a profit of $4 is made and from each bottle of Punch B; a profit of $3 is made.
Suppose that the company has 230 liters of Orange Juice and 120 liters of Grape Juice
available
Required
a. Formulate this problem as a LPP
b. How many bottles of Punch A and Punch B the company should produce in order to
maximize profit? (Using the simplex method)
c. What is this maximum profit?
Solution
Juice needed for one bottle of
Juice Punch A Punch B Juice Available
__________________________________________________________________________
Orange Juice (lt) 20 10 230
Grape Juice (lt) 5 15 120
Profit per tent $4 $3
Let X1= the No of bottles of punch A produced.
X2= the No of bottles of punch B produced.
The LPP Model of the problem is:
Max Z=4X1 +3X2
St:
20X1 +10X2 < 230 Orange Constraint

5X1 +15X2 < 120 Grape Constraint

X1, X2 >0 Non-negativity constraint

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The Standard form of this model will be
Max Z=4x1 +3x2 + 0 s1 +0 s2+ 0 s3
St:
20 x1+10x2 + s1 +0 s2 = 230
Standard form
5x1+15x2 +0s1 + s2+ = 120
x1 , x2 , s1 , s2 = 0
Where, s1 =Unused orange juice
s2 =Unused grape juice
Initial feasible solution
1st tableau

B C 4 3 0 0

X1 X2 S1 S2 Q RR

S1 0 20 10 1 0 230 11.5

S2 0 5 15 0 1 120 24

Z 0 0 0 0 0
C–Z 4 3 0 0

2nd simplex tableau

B C 4 3 0 0

X1 X2 S1 S2 Q RR

X1 4 1 ½ 1/20 0 11.5 23

S2 0 0 25/2 -1/4 1 62.5 5

Z 4 2 1/5 0 46
C–Z 0 1 -1/5 0

Optimal solution mix: the

4 3 0 0 3rd simplex tableau
B C Q
X1 X2 S1 S2

X1 4 1 0 3/50 - 1/25 9

X2 3 0 1 -1/50 2/25 5

4 3 0.18 0.08
Z
51
C- Z 0 0 - 0.18 -0.08

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Optimal Solution
X1 = 9 X2= 5 s1 =0 s2=0 and Max Z=$51
2. Maximization with Mixed Constraints
In the previous section, we have learned how to solve a maximization problem with all <constraints.
Here you will learn how to solve a maximization problem with mixed constraints (< > =). For the
most part the technique is identical to that illustrated in the previous section. What is new is the
introduction of the –M coefficients in the objective functions and the use of artificial variables.
Example1
Consider the following problem and solve it through the simplex procedure
Max Z=6x1 +8x2
Subject to:
x2 < 4
x1+ x2 = 9
6x1+ 2x2 > 24
x1, x2 > 0
Standardization of the model
 To standardize the model what we have learned in the previous example is not enough. Here
the model consists <, > & = sign constraints which demands their unique standardization
approach. For < constraint you already know that we add a slack variable. For the
remaining two constraints, consider the following two additional variables.
Surplus variables (S): refer/s to the excess utilization of resources
 A variable inserted against a minimum constraint (>) to create equality. It
represents the amount of resource usage above the minimum required level.
 Surplus variable is subtracted from a > constraint in the process of converting the
constraint to standard form.
Neither the slack nor the surplus should be of negative value in the initial tableau. They must
have a positive value. Look at the following illustration.
1. 5x1+3x2+ S1 < 45
x1= 0 and x2= 0==> s1 = 45
==> s1=45 unused resource (all resources are idle)
2. 2x1+x2 >40
x1= 0 and x2= 0(No production)==> 5x1+2x2- s1 = 20
==> s1=-6(This is mathematically unacceptable)

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  To avoid these problem another variable is inserted which is known as an Artificial
variable (A)
Artificial variable (A)
 It is a variable that has no significant meaning in a physical sense but acts as a tool to create
an initial feasible LP solution. It helps to make the model logical and meaningful. It
represents an extremely insignificant amount of resources and is included to balance the
relationship between the decision variables and RHS constraints. It is added to constraints
having = and > algebraic sign.
 Has a coefficient of [-M] in the objective function for maximization type problem? It
represents an artificial very large negative value.
Consider the above example
2x1+x2 >40
x1= 0 and x2= 0(No production)==> 5x1+2x2- s1 = 20
s1=-6(This is mathematically unacceptable, because it violates the non negativity assumptions of
LPPM)
 5x1+2x2- s1 = 20
 5x1+2x2- s1 + A1= 20
 So when we set x1,x2 and s1 = 0
 The basic solution in the initial solution will be A1= 20 which is
mathematically correct.
Let us consider another example having = sign
5x1 +9x2=30
To determine the values of the basic variables for the initial tableau, we set x1& x2=0
5x1 +9x2=30 ==> 5(0) +9(0) =30
==> 0=30 which is mathematically wrong. To avoid this problem
we add an artificial variable to standardize constraints with = sign.
5x1 +9x2=30 ==> 5x1 +9x2+ s1=30 ==> 5(0) +9(0 +s1) =30
==> S1=30 which is logical.

Note
 For the initial basis, use artificial variables for constraints that have > and = sign. For a <
constraint use a slack variable. Hence, surplus variables will not appear in an initial solution.

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Now, let’s standardize the problem based on the logic stated above.
Max Z=6x1 +8x2 + 0 s1 +0 s2+ 0 s3-M A2- M A3
St:
x2 + s1 =4
x1+ x2 + A2 =9 Standard form
6x1+2x2 - s3 + A3 =24
All Variables =0
Initial feasible solution
1st tableau
B C 8 0 0 -M -M

X1 X2 S1 S3 A2 A3 Q RR

S1 0 0 1 1 0 0 0 4 4/0=und.

A2 -M 1 1 0 0 1 0 9 9

A3 -M 6 2 0 -1 0 1 24 4
Z -7M -3M 0 +M -M -M -33M
C–Z 7M +6 3M+8 0 -M 0 0

Since 7m+ 6 is the largest, x1 will be the entering variable for the next tableau. Since an artificial
value (A3) leaves the solution it will removed from the next table, so A3 column will not exist in the
2nd tableau
2nd tableau

B C 6 8 0 0 -M
X1 X2 S1 S3 A2 Q RR
S1 0 0 1 1 0 0 4 4
A2 -M 0 2/3 0 1/6 1 5 27/2
X1 6 1 1/3 0 -1/6 0 4 12
Z 6 2-3/3M 0 -1-1/6M -M 24-5M
C-Z 0 6+2/3M 0 1+1/6M 0

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 3rd tableau

BV C 6 8 0 0 -M

X1 X2 S1 S3 A2 Q RR
X2 8 0 1 1 0 0 4 und
A2 -M 0 0 -2/3 1/6 1 7/3 14

X1 6 1 0 -1/3 -1/6 0 8/3 Neg.

Z 6 8 6+2/3m -1-1/6M M 48-7/3M
C–Z 0 0 -6-2/3m 1+1/6M 0

Final tableau

BV C 6 8 0 0 Q

X1 X2 S1 S3
X2 8 0 1 1 0 4
S3 0 0 0 -4 1 14

X1 6 1 0 -1 0 5
Z 6 8 2 0 62
C–Z 0 0 2 0

Since the values on C - Z < 0==>optimal solution is achieved; where,

X1=5 X2 =4 S1=0 S3= 14 and Max Z= 62

Example 2
Max Z=2x1 +x2+3x3
Subject to:
x1+ x2 + 2x3 < 5
2x1+ 3x2 +4x3 = 12
x1, x2 , x3 >0

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Solution
Initial feasible solution: 1st tableau

B C 2 1 3 0 -M Q

RR X1 X2 X3 S1 A1
S
2.5
1 0 1 1 2 1 0 5

3A1 -M 2 3 4 0 1 12
Z -2M -3M -4M 0 -M -12 M
C- Z
2M+2 3M+1 4M+3 0 0

2nd simplex tableau

B C 2 1 3 0 -M Q

RR X1 X2 X3 S1 A1

X 310 3 1/2 ½ 1 1 0 5

A14 -M 2 3 4 0 1 12

Z 3/2 3/2-M 3 2M+3/2 -M -2M+15/2

C–Z 1/22 M-1/2 0 -2M-3/2 0

3rd simplex tableau

B C 2 1 3 0 Q
RR
X1 X2 X3 S1

6 X3 3 1/2 0 1 3/2 1.5

X2 1 0 1 0 -2 2
Undefined
Z 3/2 1 3 5/2 13/2
C-Z 1/2 0 0 -5/2

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 4th simplex tableau

B C 2 1 3 0 Q

X1 X2 X3 S1

X1 2 1 0 2 3 3

X2 1 0 1 0 -2 2

Z 2 1 4 4 8
C-Z 0 0 -1 -4

The optimal solution is defined in terms of

X1 = 3 X2 = 2 X3= 0 S1 = 0 and max. Profit (z) = $8
3. Minimization Problems
Manual solution procedure of minimization problems using simplex is handled in the same fashion
as that of maximization problems with mixed constraints. The two exceptions are:
 The M coefficients in the objective function are given positive signs instead of negative
signs
 The selection of the variable to enter the solution is based on the largest negative value (the
negative number far from 0) in the C-Z row of a tableau.
 Solution is optimal when there is no negative value of C-Z.

Note
TYPE OF CONSTRAINT TO PUT INTO STANDARD FORM
< ----------------------------------------Add a slack variable
= -----------------------------------------Add an artificial variable
> ---------------------- Subtract a surplus variable and add an artificial variable

Example 1
Minimize Z=25x1 +30x2
Subject to:
20x1+15x2 > 100
2x1+ 3x2 > 15
x1 & x2 > 0

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Solution
Note: Procures
Except step 2 and 8 of maximization same procedure is followed for minimization also
Step2: Introduce surplus and artificial variables to convert in equality of constraints into
equalities(Standardization) And
Step 8: Test for optimum solution
Optimum solution is obtained if all values of Cj – Zj > 0 i.e inclusive zeros and positive
values. If not repeat step 4-8 till all Cj- Zj values have inclusive zeros and positive
Minimize Z=25x1 +30x2 +0s1+0s2 +MA1+MA2
Subject to:
20x1+15x2- s1+A1 = 100
2x1+ 3x2 –s2+A2 = 15
x1, x2 , s1, s2 ,A1 ,A2 = 0
Step 3: Construct Initial simplex table
The initial basic feasible solution is obtained by setting x1= x2= s1= s2=0
No production, x1= x2= s1=0==>20(0) +15(0) - 0+A1 = 100 ==> A1 = 100
x1= x2= s2=0==> 0(0) + 3(0) - 0+A2 = 15==> A2 = 15
1st tableau
B C 25 30 0 0 M M Q

X1 X2 S1 S2 A1 A2

A1 M 20 15 -1 0 1 0 100

A2 M 2 3 0 -1 0 1 15
Z 22M 18M -M M M M 115 M
C–Z
25 -22M 30- 18M M M 0 0

2nd Simplex Tableau

B C 25 30 0 0 M Q

X1 X2 S1 S2 A2
X1 25 1 ¾ -1/20 0 0 5

A2 M 0 3/2 1/10 -1 1 5
Z 25 75/4+3/2M -5/4+1/10M M M 125+5 M
C–Z 0 45/4-3/2M 5/4-1/10 M M 0

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3rd Simplex Tableau
As shown in the following tableau, all variables on the C - Z > 0==>hence, optimal solution is
reached where, X1=5/2 X2=10/3 and Min Z= $162.5

B C 25 30 0 0 Q

X1 X2 S1 S2
X1 25 1 0 -1/10 1/2 5/2
X2 30 0 1 1/15 -2/3 10/3
Z 25 30 -1/2 -15/2 162.5
C–Z 0 0 1/2 15/2

Example 2
Solve the problem provided below (Minimization with mixed constraint)
Min Z=5x1 +3x2
Subject to:
2x1+4x2 < 12
2x1+ 2x2 = 10
5x1+ 2x2>10
X1 &X2
Solution
Min Z=5x1+3x2 +0s1+0s3 +MA2+MA3
Subject to
2x1+4x2+s1 = 12
2x1+ 2x2+A2 = 10
5x1+ 2x2-S3+ A3=10
X1, X2, S1, S3, A2 and A3 = 0
Min Z=5x1 +3x2, If no production
2x1+4x2+s1 = 12 ==>x1 =x2=0==>s1=0 (Solution Value in the initial simplex tableau)
2x1+2x2 +A1 =10 ==>x1 =x2=0==>A2 =15 (Solution Value in the initial simplex tableau)
5x1+2x2 –s2 +A1=10 ==>x1=2=s3=0==>A3=10(Solution Value in the initial simplex tableau)
x1, x2 , s1, s2 ,A1 ,A2 = 0
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 Initial feasible solution: 1st tableau

B C 5 3 0 0 M M Q

X1 X2 S1 S2 A1 A2
S1 0 2 4 1 0 0 0 12
A1 M 2 2 0 0 1 0 10
A2 M 5 2 0 -1 0 1 10
Z 7M 4M 0 M M M 20 M
C–Z 5 -7M 3- 4M 0 -M 0 0

2nd simplex tableau

B C 5 3 0 0 M Q

X1 X2 S1 S2 A1
0 S1 0 16/5 1 2/5 0 8
M A1 0 6/5 0 2/5 1 6
RR
5 X1 1 2/5 0 -1/5 0 2
Z 5M 6/5M +2 0 2/5M - 1 M 10+6 M
2.5

C-Z 0 -6/5M +1 0 -2/5M+1 0

5

3rd simplex tableau 5

B C 5 3 0 0 M Q

X1 X2 S1 S2 A1
X2 3 0 1 5/16 1/8 0 2.5

A1 M 0 0 -3/8 1/4 1 3
X1 5 0 0 -1/8 -1/4 0 1
Z 5 3 -3/8M +5/6 M/4-7/8 M 12.5+3 M
C- Z
0 0 3/8M -5/6 M/4+7/8 0

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 4th Simplex tableau

B C 5 3 0 0 Q

X1 X2 S1 S2

X2 3 0 1 1/2 0 1

S2 0 0 0 -3/2 1 12

X1 5 0 0 -1/2 0 4
Z 5 3 -1 0 23
C–Z 0 0 1 0

The values of the optimal solution: X1=4, X 2=1, S1=0, S2=12 and Min Z= $23

Exercises
Find the optimal solution for the LPPs using simplex method
1. Min Z=10x1 +5x2
Subject to:
2x1 + 5x2 > 150
3x1 + x2 > 120
x1, x2 >0
Ans: x1=450/13, x2 =210/13 and Min Z=$540
2. Min Z=4x1 +5x2
Subject to:
X1 + 2x2 > 80
3x1+ x2 > 75
x1, x2 >0
Ans: x1=14, x2 =33 and Min Z=$221
3. Min Z=7x1 +9x2
Subject to:
3x1 + 6x2 > 36
8x1+ 4x2 > 64
x1, x2 >0
Ans: x1=20/3, x2 =8/3 and Min Z=212/3
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Note
To get an initial feasible solution
Types of constraint Presence of variables in the initial solution mix
1. < (Slack) Yes
2. > *(Surplus) No
*(Artificial) Yes
3. = (Artificial) Yes

2.6. Special cases/issues in simplex method

I. Two incoming variables / or Tie for entering variables/

Where two or more variables are represented by the same values on the C-Z row, they are supposed
to have equal chance to enter the solution. This situation is called a tie. In order to break this tie,
the selection for the key column (entering variable) can be made arbitrary. However; the number of
solution can be minimized by adopting the following rules:
1. If there is a tie between two decision variables, then the selection can be made
arbitrarily.
2. If there is a tie between a decision variable and a slack (or surplus) variable,
then select the decision variable to enter into basis first.
3. If there is a tie between slack or surplus variable, then selection can be made
arbitrary.
Example
If the equation is max Z:

B C Q

X1 X2 S1 S3

Z
C- Z 5 2 5 0

Even if X1 has the same coefficient to S1 on the C-Z row (5) X1 is determined to be the
entering variable. This is because X1 represents a decision variable whereas S1 stands for
a slack/surplus variable.

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II. Infeasibility
A situation with no feasible solution may exist if the problem was formulated improperly.
Infeasibility comes about when there is no solution that satisfies all the problem’s constraints. In
the simplex method, an infeasible solution is indicated by looking at the final tableau.
In it, all C -Z row entries will be of the proper sign to imply optimality, but an artificial variable
(A) will still remain in the solution mix.
Example
Consider the following Minimization problem

B C 5 8 0 0 M Q

X1 X2 S1 S2 A2

X1 5 1 1 -2 3 0 200

X2 8 0 1 1 2 0 100

A2 M 0 0 0 -1 1 20

Z 5 8 -2 31-M M 1,800+200M
C–Z 0 0 2 M-31 0

Even though all C - Z values are positive and 0 (i.e. the criterion for an optimal solution in a
minimization case), no feasible solution is possible because an artificial variable (A2) remains in
the solution mix.
III. Unbounded Solutions
No finite solution may exist in problems that are not bounded. This means that a variable can be
infinitely large without violating a constraint.
In the simplex method, the condition of unbounded ness will be discovered prior to reaching the
final tableau. We will note the problem when trying to decide which variable to remove from the
solution mix.
The procedure in the simplex solution approach is to divide each quantity column number by the
corresponding pivot column number to identify the leaving variable. The row with the smallest
positive ratio is replaced. But if the entire ratios turn out to be negative or undefined, and zeros it
indicates that the problem is unbounded.

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Example
Note the following LPP of maximization objective.

B C 5 9 0 0 Q

X1 X2 S1 S2

X2 5 -1 1 2 0 30

S2 0 -2 0 -1 1 10

Z -9 9 18 0 270
C-Z 15 0 -18 0

The solution in the above case is not optimal because not all C- Z entries are 0 or negative, as
required in a maximization problem. The next variable to enter the solution should be X1.
To determine the variable that will leave the solution, we examine the ratios of the quantity column
values to their corresponding coefficients in the X1 or pivot column. Since both pivot column values
are negative, an unbounded solution is indicated.
IV. Degeneracy /Tie for leaving basic variable (key row)/
If there is a tie for the smallest ratio of the quantity column values to their corresponding coefficients
in the pivot column, it is a signal that degeneracy exists. Degeneracy can occur right in the first
(initial) tableau. This normally happens when the number of constraints is less than the number of
variables in the objective function.
Example
The following tableau shows the case of degeneracy

B C 5 8 2 0 0 0 Q

X1 X2 X3 S1 S2 S3
RR
X2 8 1/4 1 1 -2 0 0 10
10/1/4=40
S2 0 4 0 1/3 -1 1 0 20
20/4=5 Tie for the smallest
S3 0 2 0 2 2/5 0 1 10 ratio indicates deg.
10/2=5
Z 2 8 8 16 0 0 80
C-Z 3 0 -6 -16 0 0

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Degeneracy could lead to a situation known as cycling, in which the simplex algorithm alternatives
back and forth between the same non-optimal solutions, i.e., it puts a new variable in, then takes it
out in the next tableau, puts it back in, and so on. This situation (cycling) can be overcome by trial
and error method.
One simple way of dealing with the issue is to select either row (S2 or S3 in this case) arbitrary. If
we are unlucky and cycling does occur, we simply go back and select the other row.
Example: Max Z=3X1+2X2

B C 3 2 0 0 Q

X1 X2 S1 S2

X2 2 3/2 1 1 0 6

S2 0 1 0 1/2 1 3

Z 3 2 2 0 12
C-Z
0 0 -2 0

X1=0, X2=6, S2=3 and Max Z=12 or: X1=3, X2=3/2 and Max Z=12
The C – Z value of the Non-basic variable (X1) is 0.Thus, there is alternative optimal
solution.

Exercises1
1. Solve the following LPP using the simplex algorithm
Min Z=6x1 +8x2
Subject to:
x1+ 2x2 > 80
3x1+ x2 > 75
x1, x2 >0
Required
 What are the values of the basic variables at each iteration?
 Which are the non-basic variables at each iteration?
Ans: X1=14, X2=33, and Min Z=221

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2. At the 3rd iteration of a particular LP maximization problem, the following tableau is established:

B C Q
X1 X2 X3 S1 S2 S3
5 0 1 1 -2 0 0 5
X3
6 1 -3 0 0 0 1 12
X1
S2 0 0 2 0 1 1 -1 10
Z 6 -13 5 5 0 21 97
C-Z
0 16 0 -5 0 -21

Required
 What special condition exists if you improve the profit and move to the next iteration?
 Proceed to solve the problem for optimal solution
Ans: Degeneracy; X1=27, X2=5, X3=0, and Max Z=$177
3. Convert the following constraints and objective function into the standard form for use in the
simplex method
Min Z=4x1 +x2
Subject to:
3 x1+ x2 = 3
4x1+ 3x2 > 6
x1+ 2x2 < 3
x1, x2 > 0
Answer:
Min.Z=4x1 +x2 + 0 s1 +0 s2+ M A1+M A3
St:
3x1+ x2 + A1 = 3
4x1+ 3x2 -s1+A2 = 6
x1+ 2x2 + s2 = 3
All Variables > 0
4. Solve the following LPP using simplex method
Max Z=9x1 +7x2
Subject to:
2x1+ x2 < 40
x1+ 3x2 < 30
x1, x2 > 0
Ans: X1=18, X2=4, and MaxZ=$190
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5. Solve the following LPP to show that it has alterative optimal solutions.
a. Max Z=6x1 +3x2 Ans: i. X1=4, X2=0, and Max Z=24
Subject to: ii. X1=5/2, X2=3, and Max Z=24
2x1+ x2 < 8
3 x1+ 3x2 < 18
x2 < 3
x1, x2 >0
b. Min Z=2x1 +8x2 Ans: i. X1=32/6, X2=10/6, and Min Z=24
Subject to: ii. X1=12, X2=0, and Min Z=24
5x1+ x2 > 10
2x1+ 2x2 > 14
x1+ 4x2 > 14
x1, x2 >0
6. Solve the following LPP to show that it has unbounded solution.
a. Max Z=-2x1 +3x2 x1, x2 > 0
Subject to: b. Max Z=3x1 +6x2
Subject to:
x1 <5
3x1+ 4x2 > 12
2 x1-3x2 < 6 -2x1+ x2 < 4
x1, x2 > 0
7. Solve the following LPP to show that it has no feasible solution.
a. Max Z=-2x1 +3x2 Ans: X1=2, X2=0, A1=2 and Max Z=4-2M
Subject to:
x1 - x2 > 4
x1+ x2 < 6
x1 <2
x1, x2 > 0
b. Max Z=3x1 +3x2 Ans: X1=0, X2=2, A2=2 and MaxZ=4-4M
Subject to:
2x1+ x2 < 2
3x1 + 4x2 > 12
x1, x2 >0
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Exercises 2
1. Max Z=50x1 +120x2
Subject to:
2x1+4x2 < 80
3x1+x2< 60
x 1, x 2 > 0
Required: Determine the range of optimality for the coefficient of the basic variables for the given
problem.

B C 80 60 0 0 Q

X1 X2 S1 S2
S2 0 5/2 0 -1/4 1 20
X2 60 3/2 1 1/2 0 40

Z 90 60 30 0 $2,400
-10 0 -30 0
C–Z
Ans: S1=X1=0, X2= 40, S2=20 , MaxZ= 2,400

Note:
Linear programming models are used to find optimal solutions to constrained optimization
problems. In order for linear programming models to be used, the problems must involve a single
objective, a linear objective function and linear constraints, and have known and constant numerical
values.
We can solve linear programming problems using either graphical solution approach or simplex
approach. The graphical method for solution is used when the problem deals with 2 decision
variables. The inequalities are assumed to be equations (in equalities should be changed to
equations). As the problem deals with 2 variables, it is easy to draw straight lines as the relationship
between the variables and constraints are linear. In cases where the problem deals with at least three
variables, instead of lines we have to draw planes and it will become very difficult to visualize the
feasible area. In contrast to the graphical approach, the simplex approach is not limited to problems
with only two decisions variables. It is a general-purpose method to solve problems with any number
of decision variables.
The simplex procedure involves developing a series of tableaus, each of which describes the solution
at a corner point of the feasible solution space beginning with the origin after standardizing the
problem.
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The standard form of LP problem should have the following characteristics:
I. All the constraints should be expressed as equations by slack or surplus and/or artificial
variables
II. The right-hand side of each constraint should be made non-negative; if it is not, this should
be done by multiplying both sides of the resulting constraint by -1.
Example: 2X1+3X2-4X3+X3<-50, we multiply both sides by negative
III. Three types of additional variables, namely
a. Slack Variable(S)
b. Surplus variable (-S), and
c. Artificial variables (A) are added in the given LP problem to convert it into standard
form for two reasons:
i. to convert an inequality to have a standard form of an LP model, and
ii. to get an initial feasible solution represented by the columns of an identity matrix
The summery of the extra variables needed to add in the given LP problem to convert it into standard
form is given below:

Types of Extra variables to be added Coefficient of extra variables Presence of variables in the
constraint in the objective function initial solution mix
Max Z Min Z
< Add only slack variable 0 0 Yes

> Subtract surplus variable and 0 0 No

Add artificial variable -M +M Yes

= Add artificial variable -M +M Yes

1. Test of optimality
i. If all C – Z < 0, then the basic feasible solution is optimal (Maximization case)
ii. If all C – Z > 0, then the basic feasible solution is optimal (Minimization case)
2. Variable to enter the basis
i. A variable that has the most positive value in the C – Z row
(Maximization case)
ii. A variable that has the highest negative value in the C - Z row (Minimization case)
3. Variable to leave the basis
The row with the non-negative and minimum replacement ratio
(For both maximization and minimization cases i.e.: RR > 0

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