1

UNIT - I
INTRODUCTION TO OR
Introduction: The term Operations Research was first coined in 1940 by
McClosky and Trefthen in a small town, Bowdsey, of the United Kingdom. This
new science came into existence in military context. During World War II, military
management called on scientists from various disciplines and organize them into
teams to assist in solving strategic and tactical problems. By their joint efforts
experience and deliberations, they suggested certain approaches that showed
remarkable progress. This new approach to systematic and scientific study of the
operations of the system was called the Operations Research.
Origin and Development of OR: The Operations Research was originated in
military management in World War II in 1940. It was started by the British military
management later it was applied to solve the problems in Industrial sector in the
Britain post world war. The application of OR got the industrial revolution in UK.
During the year 1950, OR achieved recognition as a subject worthy of
academic study in the Universities. Since then, the subject has been gaining
more and more importance for students of Economics, Management, Public
Administration, Behavioural sciences, Social work, Mathematics, Commerce and
Engineering.
Operations Research Society of America was formed in 1950 and in 1957
the International Federation of O.R. societies was established. In several
Countries, International Scientific Journals in O.R began to appear in different
Languages. The Primary journals are Operation Research, Transportation
Science, Management sciences, Operational Research Quarterly etc.,
******* ******** *********
Meaning of OR: The term OR refers to “Operations Research”. That is the
detailed study (research) of the problem under our consideration so as to get the
best solution among all possible solutions. Thus this subject has been a
successful application in almost all sectors of the real life like military, industry,
business, finance and management etc.
Definition of OR: There are several definitions are available for OR among them
the most acceptable definition is as fallows.
“Operation Research in the most general sense can be characterised as the
application of scientific methods, techniques and tools to problems involving
the operation of a system so as to provide those in control of the operations
with optimum solutions to the problem.”

KP Lec in Stats M.Sc(Stats),M.Sc.(Maths), SET(8297646836)

 2

Nature and Features of OR: In general how we implement the OR is known as

the nature. So one can explain the nature of OR under the following heads.
1. System Approach: The term ‘system approach’ implies that each problem
should be examined in its entirety to the extent possible and economically
feasible from the point of view of the overall system of which the problem
under consideration is one part. Under this approach manager makes
conscious attempt to understand the relationships among various parts of the
organisation and their role in supporting the overall performance of the
organization with a scientific basis for solving problems involving the
interaction of components of the organization as a whole. The decision which
is best for the organization as a whole is called an optimal decision.
Operations Research tries to find the best decision relative to a large
proportion of the total organization.
2. Inter-disciplinary Team Approach: It is an important characteristic of
Operation Research. According to this characteristic, no single individual can
be an expert on all aspects of a problem under consideration. Thus, Operation
Research utilizes the inter-disciplinary team approach. Under this approach, a
team comprising experts from different disciplines such as Mathematics,
Statistics, Economics, Management, Computer Science, Engineering and
Psychology, etc. Is constituted. Such a team when confronted with a problem
determines its solution by utilising the diverse background and skills of the
teammates. Every expert of the team.
3. Methodological Approach: Operation Research utilizes scientific methods
for solving a problem. Specifically, the process begins with the careful
observation and formulation of the problem. The next step is to construct a
scientific model that attempts to abstract the essence of the real problem.
From this model, conclusions or solutions are obtained which are also valid for
the real problem. In an interactive fashion, the model is then verified through
appropriate experiments to determine the best or optimal solution to the
problem under consideration.
4. Operations Economy: O.R. is a problem solving and a decision making
science. Whenever we have conflicts, uncertainty and complexity in any
situation, O.R. can help in the end to reduce costs and improve profits and
effect substantial “operations Economy”. Once the old approach of
management by intuition is buried, a scientific approach to decision-making is
bound to help. Often the conflicts are so tangled that they defy any intuitive
solution.
******* ******* *******

KP Lec in Stats M.Sc(Stats),M.Sc.(Maths), SET(8297646836)

 3

Scientific Method in OR: In the study of OR we use the scientific method.

This method includes Three Phases
i. The judgement Phase
ii. The research phase
iii. The action phase
i. The judgement phase: a. Determination of the operations
b. The establishment of the principles and objectives connected with the
operations.
C. Finding out the appropriate actions of effectiveness.
D. Finally the development the problems relative to the objectives.
ii. The research phase : A. Observations and data gathering for a
enhanced understanding of what the problem is
B. Creation of hypothesis and models
C. Observation and experimentation to confirm the hypothesis on the
basis of added data.
D. Study of the accessible information and confirmation of the hypothesis
using pre-established measure of effectiveness. E. Forecast of divers
results from the hypothesis, generalization of the result and concern of
another technique.
iii. The action phase: OR comprises of making suggestions for decision
process through those who first posed the problem for consideration or
by anybody in a position to make a decision influencing the operation in
which the problem takes place.
******** ********* ********
Modelling in OR: A model is defined as an idealized representation or an
abstraction of some real-life system, whether such system refers to a problem,
process, operation, object or event. The objective of the model is to provide a
means for analyzing the behaviour of the existence, to define the ideal
structure of this future system indicating the fnctional relationships among its
elements.
Modelling is the essence of an Operations Research (OR) approach
by building a model, the complexities and uncertainitiesof a decision-making
problem can be changed to a logical structure that is amendable to formal
analysis. Modelling is a means of providing a clear structural framework to the
problem for purposes of understanding and dealing with reality.
Classification of OR Models: On the basis of different characteristics that
are contained in the model one can divide them into the following types in the
subject of OR.
1. Classification by degree of abstraction.
2. Classification according to structure.
3. Classification by purpose.
4. Classification by nature of the environment.
5. Classification according to behaviour characteristics.
6. Classification according to procedure of the solution.
KP Lec in Stats M.Sc(Stats),M.Sc.(Maths), SET(8297646836)
 4

Advantages of O.R. Models: The application of O.R. models has many

advantages. Some of them can be explained in the following way.
1. An O.R. model provides a good grip over the problem. It indicates the
limitations and domain of the activity.
2. An O.R. model provides a logical, scientific and systematic approach to the
problem.
3. Through O.R. models, one can incorporate useful tools which help in
eliminating duplication of methods applied to solve specific problem.
4. Models help in finding avenues for new research and improvements in a
system.
5. They provide economic descriptions and explanations of the operations of
the system they represent.
6. They indicate the limitations and scope of an activity.
7. Models help us finding avenues for new research and improvements in a
system.
Drawbacks (Limitations) of O.R. Models: The O.R. models have even
though a lot of advantages they have also their own limitations and
drawbacks. Some of them can be explained in the following.
1. Models are only an attempt in understanding operation and should never
be considered as absolute in any sense.
2. Validity of ny model with regard to corresponding operation can only be
verified by carrying the experiment and relevant data characteristics.
3. Construction of models requires services of subject experts.
******** ******** *********
General Methods for Solving O.R. Models: Solving a model consists of
finding the values of the controlled variables that optimize the measure of
performance, or estimating them approximately. O.R. models are geneally
solved by the following three methods.

(a) Analytic or Deductive Method: In this method, only the mathematical

equations with symbols are manipulated deductively to arrive at the final
solution. This has an advantage of further simplification of variables by
either eliminating them some of them or combining a few of them into a
more compact set. These involve use of graphs, elementary differential
calculus and finite differences.

(b)Numerical or Iterative Method: when classical methods fail to derive the

solution due to complexity of the constraints or number of variables then we
are usually forced to adopt an iterative procedure. Such a procedure starts
with a trial solution and a set of rules for improving it. The trial solution is,

KP Lec in Stats M.Sc(Stats),M.Sc.(Maths), SET(8297646836)

 5

then replaced by the improved solution, and the process is repeated until
either no further improvement is possible or the cost of further calculation
cannot be justified. In other words, the method can take the form of either
simple trial and error or complex iteration in a successive manner to arrive
at the optimal solution.

(c) Monte Carlo Method: The solution of any problem in a system becomes
complicated if the system is not represented by the theoretical methods.
Then by the knowledge of the important characteristics and rules of
operation of a system we can visualise the typical behaviour of the system.
This is done by taking random samples from the mathematical model that
represents the real-life system. The random samples result in a probability
distribution that imitates the real life system, and form which the value of the
specified stochastic variables is to be estimated. Furthermore, by varying
the value of certain parameters and independent variables, and then
repeating the random sampling process, one cacn attempt to measures
their effect on the chosen stochastic variable.
******* ******* ********

Significance of O.R.: The following are some important advantages of O.R. in

the following way.

1.Insight and perspective in to problem solutions: It helps in organization and

study of scientific approach to the problem requires. This generally results in
clear picture of the true problem which is as valuable and necessary as is the
solution.

2.Consideration of all possible solutions: Many management problems are so

complex that the difficulty is encountered in planning and feasible solution. By
using the techniques, the manager makes sure that he is considering the best
solution.

3. Better and more successful decisions: With O.R. the executive builds in to
planning a true reflection of the limitations and restrictions under which he must
operate. When it becomes necessary to deviate from the best programme, he
can evaluate the cost or penalty involved.

4. Better tools for adjusting to meet changing conditions: Once basic plan is
arrived at through O.R. it can be re-evaluated for changing conditions plan can
be laid for several sets of conditions to find out how to best prepare for possible
future changes. If conditions change when the plan is partly carried out. They
can be determined so as to adjust the remainder of the plan for best results.

KP Lec in Stats M.Sc(Stats),M.Sc.(Maths), SET(8297646836)

 6

5. Highlighting of bottlenecks in the production process most significant

advantage of the technique.

6. It also helps the manager to have better understanding about the phenomenon
and various activities of the of the organization for the organization construction
of suitable mathematical model visualizing the relationship between variables if
any and making improvement over them.

*************************************
APPLICATION AND SCOPE (uses) OF OPERATIONS RESEARCH:
Operations Research is today recognised as an applied science concerned
with large number of diverse human activities. To be precise an operation uses
some valuable resources like men, money, machines, time, effort, etc. The
outcome of the Operations Research has also some value. So some of the areas
of management where techniques of Operations Research are applied is
explained below,

1. Finance, Budgeting and Investment: In finance the cash flow analysis and
long-range capital requirements, investment portfolios, dividend policies are
observed. Besides this credit policies, credit tasks and delinquent account
procedures are also maintained by using the O.R.

2. Purchasing, Procurement and Explanation: Determining the quantity and

timing of purchase of raw materials , machinery also rules for buying and
supplies under varying prices O.R. Techniques used. Besides this for bidding
policies, equipment replacement etc ., are also organized by O.R.

3. Production Management: In Project Planning the O.R. can be used for

deciding the Location and size of warehouses, distribution centres, retail
outlets and in Manufacturing and facility planning also O.R. is used for
production scheduling and sequencing , project scheduling and allocation of
resources.

4. Marketing Management: In this field the O.R. tools are applied for product
selection, timing, competitive actions and advertising strategy and choice of
different media of advertising also the effectiveness of market research, etc.
Used.

5. Personnel Management: The O.R. tools are also useful in recruitment

policies and assignment of jobs. Also selection of suitable personnel with due
consideration for age and skills , establishing bonus system.

KP Lec in Stats M.Sc(Stats),M.Sc.(Maths), SET(8297646836)

 7

6. Research and Development: The techniques of O.R. also applied in this field
for determination of areas of concentration of research and development,
reliability and evaluation of alternative designs. Control of development
projects, etc.
From all the above areas of applications one may conclude that O.R. can be
widely used in taking timely management decisions and also used as a
corrective measurement decisions and also used as a corrective measure.
********************

KP Lec in Stats M.Sc(Stats),M.Sc.(Maths), SET(8297646836)

 8

CHAPTER– II
LINEAR PROGRAMMING PROBLEM
Definition: Linear programming is a mathematical technique for determining
the optimum allocation of resources and obtaining a particular objective when
here are alternative uses of the resources like “money, manpower, material,
machine and other facilities”. The objective in resource allocation may be cost
minimization or inversely profit maximization. The technique of linear
programming is applicable to problems in which the total limitations on
resources give rise to linear equalities or inequalities of the individual
allocations.

Basic terminology in LPP:

Decision variables: Economic or Physical quantities whose numerical

values indicate the solution of the programming problem are called as
decision variables.

Objective function: An equation that specific is the dependent relationship

between the decision variables. In other words “a mathematical statement of
the goal of an organization, stated as an intent to maximize or to minimize
some important quantity such as profit or cost” is called as an objective
function.

Constraint: A restriction on the resources available to a firm is expressed in

terms of linear equality or inequality in terms of decision variables is known as
a constraint.

Feasible region: It is the collection of all feasible solutions. That is the area
showing all possible production combination in a linear programming problem.

Convex Set: It is a collection of points such that for any two points on the set,
the line joining the points belongs to the set.

Extreme Point: A point that lies o one of the corners of the feasible region.
This means that it falls at the intersection of two constraint lines.

Optimal Solution: Among all feasible solution the solution that gives us the
required solution that is either maximum value or minimum value among all
possible values of extreme points with respective to the objective of the
problem is called as the optimal solution.

KP Lec in Stats M.Sc(Stats),M.Sc.(Maths), SET(8297646836)

 9

Optimal value: The optimal value of the objective function that is the value
of the objective functions when evaluated at the optimal solution.

Infeasible Solution: Any point lying outside the feasible region. It violates
one or more of the stated constraints. In such situations one cannot obtain the
required (optimal) solution and this situation is generally termed as the
“infeasible solution”. Often this situation is referred as the non-existing of the
feasible solution.

Formulating a problem as an LP model:

While both recognition and formulation of LP problems tend to become
intuitive after we gain experience, in the beginning a method to follow helps us
to more effectively formulate them. A two-phase procedure can be employed
in formulating a problem.

Phase I:
(a) Provide detailed verbal description of the problem under
consideration ensuring that related information is unambiguous and
sufficiently precise. It essential that we have a clear and adequate
understanding of the problem under investigation before we seek to
apply the technique itself.
(b) Determine the overall objective that appears to be relevant. It will
unusually be clear whether the objective relates to some
maximization or minimization, to cost or profit and so on. An
adequate understanding of the overall objective can be of
considerable assistance in unravelling other aspects of the problem.
(c) Determining the factors that appear to restrict in some way the
arraignment of the objective identified in the previous stage. These
stages together will provide a detailed verbal exposition of the
complete problem under investigation.
Phase II:
Once the problem has been described verbally, the next step is
transforming the verbal descriptions into the proper mathematical structure. A
workable procedure to employ at this stage of the problem formulation
process is as follows:
(a) Define the decision variables that are relevant to the problem and as is
often important, ensue that their units of measurement are explicitly
stated.
(b) Identify the contribution coefficients associated with each variable.
(c) Formulate the objective e function quantitatively and express it as a
linear function of decision variables.
KP Lec in Stats M.Sc(Stats),M.Sc.(Maths), SET(8297646836)
 10

(d) Identify the physical rate of substitution coefficients (aij).

(e) Identify the available resources or requirements. That is the right-hand-

side coefficients (bi).

(f) Formulate suitable mathematical constraints related to each respective

resource or requirement as linear equalities/inequalities in terms of
decision variables.

(g) Mention the non-negative restriction associated with the decision

variables.
******** *********** **********
SOLUTION IN GRAPHICAL METHOD FOR A LP PROBLEM:
The graphic solution procedure is one method of solving two variable
linear programming problems and involves the following steps:

1. Formulate the problem in terms of a series of mathematical constraints

and an objective function.

2. Plot each constraint as follows: Each inequality in the constraint

equation be written as equality. Give any arbitrary value to one variable
and get the value of other variable by solving the equation. Similarly, give
another arbitrary value to the variable and find the corresponding value of
the other variable. Now plot these two sets of values. Connect these points
by a straight line. This exercise is to be carried out for each of the
constraint equations. Thus there will be as many straight lines as there are
equations; each straight line representing one constraint.

3. Identify the feasible region: the area which satisfies all the constraints
simultaneously in the given LP problem is known as feasible region. Here
we have to observe the each constraint conditions, then to decide the
feasible region.
4. Select the corner points: identify each of the corner of the feasible region
either by visual inspection or the method of simultaneous equations.
Compute the objective function value for each corner point by
substituting the co-ordinates of that point.
Identify the optimal solution at that corner point which shows highest
profit or lowest cost among all above calculated objective function values.
The corresponding co-ordinate points become the optimal solution for the
given LP problem.
******** ******** *********

KP Lec in Stats M.Sc(Stats),M.Sc.(Maths), SET(8297646836)

 11

(i). Alternative solution: If there exists more than one optimum solution in
graphical method for any given LPP then such type solutions are known as an
alternative solution for the problem. One can use any solution product mix to
get the objective of the problem.

(ii). Unbounded solution: A linear programming problem may have

unbounded solution which means it has no limit on the constraints. It simply
means the common feasible region is not bounded in any respect. The
primary variable can take any value exist. It will not be existing if the value of
objective function goes on changing in the unbounded region. But the optimal
solution will be existing if the value of objective function in the unbounded
feasible region is less than the value at the vertex.

KP Lec in Stats M.Sc(Stats),M.Sc.(Maths), SET(8297646836)

 12

UNIT – II
GENERAL LINEAR PROGRAMMING
General Linear Programming Problem (GLP):

Suppose a Linear Programming problem involve the determination of

the values of n decision variables x1, x2, - - - - , xn such that the objective
function of these variables assume an optimum value (maximum or minimum)
when these variables are subject to set ‘m’ constraints. Which are also linear
functions of the variables. The standard form of the general linear
programming problem (GLP) may be written in the following form:

Optimize (Maximize or Minimize)

Z = c1x1 + c2x2 + - - - - - - - + cnxn

Subject to the linear constraints

a11x1 + a12x2 + - - - - - - - + a1nxn (≤, =, ≥) b1

a21x1 + a22x2 + - - - - - - - + a2nxn (≤, =, ≥) b2
. . . .
. . . .
. . . .
am1x1 + am2x2 + - - - - - - - + amnxn (≤, =, ≥) bm
The Non – negative restriction is
X1, x2, - - - - - - - - - , xn > 0

By using the symbol Σ, i,e,, the ‘sum’ of notation, the above formulation may
be put in the following compact form:
𝑛
Optimize (Max. Or Min.) 𝑍 = Σ𝑗=1 𝑐𝑗 𝑥𝑗

Subject to the linear constraints

𝑛
Σ𝑗=1 𝑐𝑗 𝑥𝑗 (≤, =, ≥) bi ; i = 1, 2, - - - - -,m.

And the non-negative restriction 𝑥𝑗 ≥ 0 ; j = 1, 2, - - - - - - ,n

KP Lec in Stats M.Sc(Stats),M.Sc.(Maths), SET(8297646836)

 13

Simplex Method
Definition: The simplex algorithm (method) is a systematic and efficient
algebraic procedure for finding corner point solution and taking them
optimality. The evaluation of corner points always starts at the point of origin
which is one of the corners of the feasible solution space. Then gradually the
solution is improved by introducing the various decision variables in the
solution space and finding the optimality of new solution we reach the
optimum solution.

Basic terminology for Simplex method:

Slack variable: The variable which is added on the left side of the less than
or equal to constraint to make it as equation is generally called as slack
variable. This variable is usually denoted by S.

Surplus variable: The variable which is subtracted on the left side of the
equation to make it as equation is generally called as surplus variable. This
variable is usually denoted by S.

Artificial variable: The variable which is added on the left side of the variable
with the surplus variable which is used to satisfy the non-negative restriction is
known as artificial variable.

Standard form of LP problem: For any given LP problem the resulted form
after process of introducing slack, surplus and artificial variable according to
requirement both in the constraints and also in the objective function is known
as standard form of the given LP problem.

Simplex table: The table which is used to carry out the calculations in the
process of simplex method is usually called as the simplex table.

Basic solution: For a system of m simultaneous linear equations in n

variables a solution obtained by setting (n-m) variables equal to zero and
solving for the remaining variables is called basic solution.

Basic feasible solution: A basic feasible solution is a solution which satisfies

all the constraints of the given LP problem and it is an extreme point of the
convex set.
Optimal solution: Any basic feasible solution which gives the required value
for the objective function that is either maximum or minimum among all
possible values is called as an optimal solution.

KP Lec in Stats M.Sc(Stats),M.Sc.(Maths), SET(8297646836)

 14

Degeneracy: A condition that arises when there is a tie in the values used to
determine which variable will enter the solution next. It can lead to cycling
back and forth between two non-optimal solutions.

Degenerate Solution: The number of variable in the standard equality form

with positive optimal value is less than the number of constraints is known a
degenerate solution.

Simplex Method :
Computational procedure of simplex method can be explained in the form
of following steps.

Step 1: Formulate the linear programming model of the given real world
problem, i.e.; obtain a mathematical representation of the problem’s objective
function and constraints on various resources in the process.

Step 2: Express the mathematical model of LP problem in the standard form

by adding slack variables on the left-side of the constraints and assign a zero
coefficient to these in the objective function.

Step 3: Design the initial feasible solution. An initial basic feasible solution is
obtained by setting
X1= X2 = ....=Xn = 0 Thus we get s1 =b1, s2 = b2, ...... , sn = bn .

Step 4: Enter the above solution into the initial simplex table with the
contribution coefficients cj and it is also for basic variables denoted by CB the
solution values by xB. Now calculate the gross contribution for each column
denoted by Zj and is calculated by
Zj = ∑𝒏𝒊=𝟏 𝒄𝑩 𝒂𝒊𝒋

Step 5: Compute the net evaluation row Cj – Zj and select the maximum
positive value among all values in this row. This is called as “key column”
indicates the entering variable into the basic.

Step 6: Find out the replacement ratio (RR) by using key column elements
and the solution values XB.
RR = XB / (corresponding key column element)
Select the minimum RR among all the resulted values. This indicates “Key
Row” and it is the exit variable from the basis.

Step 7: construct new simplex table by replacing the new entering variable
into the basis. In this table we get a new row for the entering variable and
modified rows for the remaining variables.

KP Lec in Stats M.Sc(Stats),M.Sc.(Maths), SET(8297646836)

 15

Step 8: Test the optimality of current solution in the simplex table by

calculating the cj – zj row that is the index row.
If all the values in this row are zero or negative then the current solution is
optimum. At least one positive value appears then we have to repeat step 5 to
7 for the new solution. This process is continued until we reach the optimal
solution.

Note:
(i). one can use the index row as Cj – Zj instead of the above stated one
can use this as zj – cj.. If the modification is made then one has to select
the key column by selecting the most positive for minimization and in case
of maximization most negative and the remaining process is similar.

(ii). If the objective function is of Minimization then it has to be converted in

to the Maximization by the transformation of

Min Z = - Max Z*

Here the value of Z* = - Z

KP Lec in Stats M.Sc(Stats),M.Sc.(Maths), SET(8297646836)

 16

UNIT – III
THE BIG – M METHOD
Big M method: (Penalty Method) The Simplex method fails when there are
greater than or equal to or equations are present in the constraints. Because
in such cases we introduce the artificial variables to get the standard form for
the given LPP. So the alternative method to deal such LP problems is the Big
M method. The procedure of this method can be summarized in the following
way.

Steps:

1. Formulate the LP problem for the given real world problem by identifying
the objective function and the constraints are given on various resources.
The objective function may be of either minimization or maximization.

2. Convert the formulated LP problem into standard mathematical problem by

introducing the slack and surplus also the artificial variables in need. The
contribution for slack and surplus variables in objective function is ‘zero’
and for artificial variable it is a ‘Big-M’ in minimization case and ‘minus Big-
M’ in maximization case.

3. Find the IBFS by equating all basic variables to zero. The solution is now
prepared in the form of initial simplex table.

4. Find the zj and zj – cj rows then select the most negative among all values if
the objective function is of minimization and if it is the maximization then
select the most positive value. This column is known as the key column,
This indicates the entering variable into the basic.

5. Find out the replacement ratio by using the formula

Replacement Ratio (R/R) = (solution value)/(key column element).

6. Select the minimum positive ratio among all calculated values. The
negative ratios are not considered for the comparison as they are not
satisfies the non-negative constraint. The selected row is known as key row
and indicates the exit variable from the basic.

7. The intersection element for key row and key column is called as key
element (KE). Now we modify the simplex table rows such that the key
element becomes 1 and the remaining key column element becomes zero.

KP Lec in Stats M.Sc(Stats),M.Sc.(Maths), SET(8297646836)

 17

8. In the new table we find the zj – cj (index row). Then test for optimality that
is “if all the elements are positive or zero in case of minimization” and “if all
elements are negative or zero in case of maximization.” If not then repeat
the steps 4 to 7 until we get the optimal solution.

********* ************ *********

Note: one can use the index row as Cj – Zj instead of the above stated
zj – cj. If the modification is made then one has to select the key column by
selecting the most positive for minimization and in case of maximization
most negative and the remaining process is similar.

Two – phase method: The alternative and easy method to find the optimal
solution for LP problem in case of Big-M method is two-phase method. The
procedure of this method can be explained in the following way.

Phase I:

1. Formulate the LP problem for the given real world problem by identifying the
objective function and the various restrictions on required resources.

2. Construct the standard mathematical model by introducing the ‘zero’

contribution for non-basic variables xi’s and also for slack and surplus
variables. The contribution ‘1’ for artificial variables.

3. Find the IBFS for the given problem by equating all the non-basic variables
to zero. Now construct the initial simplex table.

4. Find the zj – cj row to determine the entering variable also the Replacement
ratio for the exit variable from the bias.

5. Construct the new simplex table for the new entering variable. Then test for
the optimality.

6. In optimal solution there are no artificial variable present in the basis then
we go to phase II. Otherwise there exists no optimal solution for the given
problem.
Phase II:
1. Now we introduce original contribution for xi variables and zero contribution
for slack and surplus variables. Then we prepare the simplex table.

2. We repeat the Simplex procedure to test the optimality.

KP Lec in Stats M.Sc(Stats),M.Sc.(Maths), SET(8297646836)

 18

3. If all index row(zj - cj) elements are either ‘0’ or positive in case of
minimization and the elements are either ‘0’ or negative in case of
maximization then we reach the optimal solution.

Now we prepare the optimal solution for the give LP problem. By

using the final simplex table basic variables column (B) and solution column
(XB) also the contribution of basic variables column (CB).

Method to resolve degeneracy: The following steps can be used to

overcome the problem of degeneracy in LPP.

Step1: First, find out the rows for which the minimum non-negative ratio is the
same (tie). Assume there is a tie between the first and second row,

Step2: Now rearrange the columns of the unusual simplex table so that the
columns forming the original unit matrix comes first in proper irder.

Step3: Find the minimum of the ratio

𝐸𝑙𝑒𝑚𝑒𝑛𝑡𝑠 𝑜𝑓 𝑓𝑖𝑟𝑠𝑡 𝑐𝑜𝑙𝑢𝑚𝑛 𝑜𝑓 𝑢𝑛𝑖𝑡 𝑚𝑎𝑡𝑟𝑖𝑥

= 𝐶𝑜𝑟𝑟𝑒𝑠𝑝𝑜𝑛𝑑𝑖𝑛𝑔 𝑒𝑙𝑒𝑚𝑒𝑛𝑡𝑠 𝑜𝑓 𝑘𝑒𝑦 𝑐𝑜𝑙𝑢𝑚𝑛

Only for the rows for which the minimum ratio is not unique. i.e., for first and
second rows.

(I) If the minimum is attained for second row then this first row then this
row will be the key row and key element can be determined by
intersecting the key row with the key column.
(II) If the minimum is not unique, then go to the next step.

Step 4: Now find the minimum of the ratio, only for the tied rows, if this
minimum ratio unique for the first row, then this row will be the key row for
determining the key element by intersecting with key column.
𝐸𝑙𝑒𝑚𝑒𝑛𝑡𝑠 𝑜𝑓 𝑠𝑒𝑐𝑜𝑛𝑑 𝑐𝑜𝑙𝑢𝑚𝑛 𝑜𝑓 𝑢𝑛𝑖𝑡 𝑚𝑎𝑡𝑟𝑖𝑥
The minimum of the ratio =
𝐶𝑜𝑟𝑟𝑒𝑠𝑝𝑜𝑛𝑑𝑖𝑛𝑔 𝑒𝑙𝑒𝑚𝑒𝑛𝑡𝑠 𝑜𝑓 𝑘𝑒𝑦 𝑐𝑜𝑙𝑢𝑚𝑛

If the minimum is also not unique, then go to next step.

Step5: Find the minimum of the ratio. The above step is repeated till
minimum ratio is obtained so as to resolve the degeneracy. After resolution of
the tie, simplex method is applied to obtain the optimum solution
******** *********** *********

KP Lec in Stats M.Sc(Stats),M.Sc.(Maths), SET(8297646836)

 19

Alternative Optimal Solutions : The alternative optimal solutions can be

obtained by considering the Zj – Cj row of the simplex table. We know that an
optimal solution to a maximization problem is reached if all Z j – Cj ≥ 0. Each
entry in the Zj – Cj row indicates the contribution per unit of a particular
variable in te objective function value if it is entered into the basis. Thus if a
non-basic variable corresponding to which Zj – Cj = 0 is entered into the basis
a new solution will be arrived but in this case the value of the objective
function will not changed. So this type of situation is known as alternative
optimal solutions.
Unbounded solution: Unbounded solution describes an LP problem that
does not have a finite solution. In general an unbounded solution occurs due
to wrong formulation of the problem within the constraint set, and thus beeds
reformulation.
Non existing feasible solution (Infeasible Solution): Infeasible solution
occurs when there is no solution satisfies all of the constraints in an LP
problem. The infeasible solution is discovered in the final simplex table when
all Zj – Cj values implies optimal solution but at least ne of artificial variables
appears in the basis with a positive value. When an infeasible solution exists,
the LP model should be reformulated. This may occur because of the fat that
the model is either improperly formulated or because two or more of the
constraints are incompatible.

KP Lec in Stats M.Sc(Stats),M.Sc.(Maths), SET(8297646836)