Operational Research I

(Simplex Method)

Dr B. E. Owusu

January 26, 2025

The Simplex Method

The use of the simplex method to solve an LP problem requires

that the problem be converted into its standard form. The standard
form of the LP problem should have the following characteristics:
1 All the constraints should be expressed as equations by adding
slack or surplus and/or artificial variables.
2 The right-hand side of each constraint should be made
non-negative (if not). This is done by multiplying both sides
of the resulting constraint by −1.
3 The objective function should be of the maximization type.

Dr B. E. Owusu Operational Research I

The standard form of the LP problem is expressed as:
Optimize (Max or Min)

Z = c1 x1 + c2 x2 + · · · + cn xn + 0s1 + 0s2 + · · · + 0sm

Subject to the linear constraints:

a11 x1 + a12 x2 + · · · + a1n xn + s1 = b1 ,

a21 x1 + a22 x2 + · · · + a2n xn + s2 = b2 ,
..
.
am1 x1 + am2 x2 + · · · + amn xn + sm = bm ,

and
x1 , x2 , . . . , xn , s1 , s2 , . . . , sm ≥ 0.

Dr B. E. Owusu Operational Research I

This standard form of the LP problem can also be expressed in the
compact form as follows:
Optimize (Max or Min)
n
X m
X
Z= cj xj + 0si
j=1 i=1

(Objective function)
Subject to the linear constraints:
n
X
aij xj + si = bi , i = 1, 2, . . . , m
j=1

(Constraints)
And
xj , si ≥ 0, for all i and j
(Non-negativity conditions)
Dr B. E. Owusu Operational Research I
Algorithm
Step 1: Formulation of the Mathematical Model

1 Formulate the LP model by converting inequalities into

equalities using slack or surplus variables.
2 Convert a minimization problem to maximization using:

Minimize Z = −Maximize Z ∗ where Z ∗ = −Z .

3 Ensure all bi values are positive; multiply constraints with

bi < 0 by −1 if needed.
4 Add slack, surplus, or artificial variables and assign them a
zero cost in the objective function.
5 Replace unrestricted variables with the difference of two
non-negative variables.

Dr B. E. Owusu Operational Research I

Step 2: Set Up the Initial Solution

Create the initial simplex table with all variables, constraints,

and the objective function.
Identify the identity matrix (slack variable columns) to
represent the initial basic solution.
Basic variables (xB ) are calculated using xB = B −1 b, where B
is the identity matrix.

Dr B. E. Owusu Operational Research I

 Basic Variables Variables
Coeff (cB ) B V (b = xB ) x1 x2 ··· xn s1 s
cB1 s1 xB1 = b1 a11 a12 ··· a1n 1
cB2 s2 xB2 = b2 a21 a22 ··· a2n 0
.. .. .. .. .. .. .. ..
. . . . . . . .
cBm sm xBm = bm am1 am2 ··· amn 0
Z = ΣcBi xBi z1 z2 ··· zn 0
cj − zj c1 − z1 c2 − z2 ··· cn − zn 0
Table: Initial Simplex Table

Dr B. E. Owusu Operational Research I

Step 3: Test for Optimality

Calculate cj − zj for all non-basic variables:

X
cj − zj = cj − (cB × aij ).

Optimality conditions:
If cj − zj ≤ 0 for all j: Solution is optimal.
If cj − zj > 0 but all elements in that column are ≤ 0: Solution
is unbounded.
If cj − zj > 0: Improvement is possible.

Dr B. E. Owusu Operational Research I

Step 4: Select the Pivot Column and Row

Pivot Column: Select the column with the largest cj − zj > 0.

bi
Pivot Row: Compute the ratio aij for all aij > 0 and choose
the row with the smallest ratio.
The intersection of the pivot row and column is the pivot
element.

Dr B. E. Owusu Operational Research I

Step 5: Perform Pivoting

Make the pivot element 1 by dividing the pivot row by the

pivot element.
Perform row operations to make all other elements in the
pivot column 0.

Dr B. E. Owusu Operational Research I

Step 6: Update the Table

Replace the leaving variable with the entering variable.

Recalculate cB , xB , and cj − zj .

Dr B. E. Owusu Operational Research I

Step 7: Repeat Until Optimality

Repeat steps 3–6 until all cj − zj ≤ 0.

Read the optimal solution from the final simplex table.

Dr B. E. Owusu Operational Research I

Key Terms

Basic Variables: Variables in the solution with non-zero

values.
Non-Basic Variables: Variables not in the solution (x = 0).
Degeneracy: Occurs when one or more basic variables have a
value of zero.

Dr B. E. Owusu Operational Research I

Example 1

Let x1 and x2 be the number of chairs and tables to be produced

by the manufacturer using available resources of timber and labor.
Maximize:
Z = 6x1 + 8x2
Subject to:
30x1 + 20x2 ≤ 300
5x1 + 10x2 ≤ 110
x1 ≥ 0, x2 ≥ 0

Dr B. E. Owusu Operational Research I

Introducing the slack variables s1 and s2 , the problem can be
restated as:
Maximize:
Z = 6x1 + 8x2 + 0s1 + 0s2
Subject to:
30x1 + 20x2 + s1 = 300
5x1 + 10x2 + s2 = 110
x1 ≥ 0, x2 ≥ 0, s1 ≥ 0, s2 ≥ 0
where x1 and x2 are the decision variables, and s1 and s2 are slack
variables.

Dr B. E. Owusu Operational Research I

It can be simplified in a tabular form as below:

CB Basis x1 x2 s1 s2 RHS
0 s1 30 20 1 0 300
0 s2 5 10 0 1 110
Cj 6 8 0 0
Zj
Cj - Zj

Dr B. E. Owusu Operational Research I

1 Maximization problems are used for profit, and minimization
problems are used for cost.
2 The CB column contains the contributions per unit for the
basic variables s1 and s2 . A zero indicates that the
contributions per unit are zero because no profits are made
from unused raw materials or labor.
3 The second column, the basis, contains the variables in the
solution that are used to determine the total contribution. In
the initial solution, no products are made.
4 The starting solution will have zero contribution towards profit
since no units of chairs or tables are manufactured. This is
represented in the CB-th row for the column under RHS.
5 Since no units are manufactured, the first solution is:

x1 = 0, x2 = 0, s1 = 300, s2 = 110

Dr B. E. Owusu Operational Research I

Table II

CB Basis x1 x2 s1 s2 RHS θ
0 s1 30 20 1 0 300 15
0 s2 5 10 0 1 110 11 →
Cj 6 8 0 0
Zj 0 0 0 0
Cj − Zj 6 8↑ 0 0

Dr B. E. Owusu Operational Research I

Table III

CB Basis x1x 2 s1 s2 RHS θ

0 s1 200 1 −2 80 4 →
1 1
8 x2 2 1 0 10 11 22
Cj 6 8 0 0
8
Zj 4 8 0 10 88
8
Cj − Z j 2 → 0 0 − 10

Dr B. E. Owusu Operational Research I

Table Final IV

CB Basis x1 x2 s1 s2 RHS
1 1
6 x1 1 0 20 − 10 4
1 3
8 x2 0 1 − 40 20 9
Cj 6 8 0 0
1 6
Zj 6 8 10 10 96
1 6
Cj − Z j 0 0 − 10 − 10

x1 = 4, x2 = 9

Objective function = 6x1 + 8x2 = 6(4) + 8(9) = 24 + 72 = 96

Dr B. E. Owusu Operational Research I

Example 2

Minimize:
Z = x1 − 3x2 + 3x3
Subject to:
3x1 − x2 + 2x3 ≤ 7,
2x1 + 4x2 ≥ −12,
−4x1 + 3x2 + 8x3 ≤ 10,
x1 , x2 , x3 ≥ 0.

Dr B. E. Owusu Operational Research I

Standard Form

Minimize:
Z = x1 − 3x2 + 3x3 + 0s1 + 0s2 + 0s3
Subject to:
3x1 − x2 + 2x3 + s1 = 7,
−2x1 − 4x2 + s2 = 12,
−4x1 + 3x2 + 8x3 + s3 = 10,
x1 , x2 , x3 , s1 , s2 , s3 ≥ 0.
The initial feasible solution is:

x1 = 0, x2 = 0, x3 = 0, s1 = 7, s2 = 12, s3 = 10.

Dr B. E. Owusu Operational Research I

Table I

Table: Simplex Tableau I: Initial Step

Ci Basis x1 x2 x3 s1 s2 s3 RHS θi
0 s1 3 −1 2 1 0 0 7 −7
0 s2 −2 −4 0 0 1 0 12 −3
10
0 s3 −4 3 8 0 0 1 10 3 →
Cj 1 −3 3 0 0 0
Zj 0 0 0 0 0 0
Cj − Z j 1 −3 ↑ 3 0 0 0

Dr B. E. Owusu Operational Research I

Table II

Table: Simplex Tableau II

Ci Basis x1 x2 x3 s1 s2 s3 RHS θi
5 14
0 s1 3 0 3 1 0 31 31
3
31
5→
0 s2 − 22
3 0 32
3 0 1 3 4 76
3
76
− 22
−3 x2 − 34 1 8
3 0 0 1
3
10
3 − 10
4
Cj 1 −3 3 0 0 0
Zj 4 −3 −8 0 0 0 −10
Cj − Zj −3 ↑ 0 11 0 0 0

Dr B. E. Owusu Operational Research I

Table III

Table: Simplex Tableau III: Final Step

Ci Basis x1 x2 x3 s1 s2 s3 RHS θi
14 3 1 31
1 x1 1 0 5 5 0 5 5
156 22 14 354
0 s2 0 0 5 5 1 5 5
32 4 3 56
−3 x2 0 1 5 5 0 5 5
Cj 1 −3 3 0 0 0
Zj 1 −3 −16.4 −1.8 0 −1.6 −28.6
Cj − Z j 0 0 19.4 1.8 0 1.6

Optimal solution is reached for Cj − Zj ≥ 0.

x1 = 31 56
5 , x2 = 5 , x3 = 0.  
31 56
Z = x1 − 3x2 + 3x3 = 5 −3 5 + 3(0) = −28.60.
Dr B. E. Owusu Operational Research I
Example 3
Maximize:
Z = 5x1 − 3x2
Subject to:
x1 + x2 ≤ 2,
5x1 + 2x2 ≤ 10,
3x1 + 8x2 ≤ 12,
x1 , x2 ≥ 0.
Maximize:
Z = 5x1 − 3x2 + 0s1 + 0s2 + 0s3
Subject to:
x1 + x2 + s1 = 2,
5x1 + 2x2 + s2 = 10,
3x1 + 8x2 + s3 = 12,
x1 , x2 , s1 , s2 , s3 ≥ 0.
The initial feasible solution is: Operational Research I
Dr B. E. Owusu
Table I

Ci Basis x1 x2 s1 s2 s3 RHS θi
0 s1 1 1 1 0 0 2 2→
0 s2 5 2 0 1 0 10 2
0 s3 3 8 0 0 1 12 4
Cj 5 3 0 0 0
Zj 0 0 0 0 0
Cj − Zj 5↑ 3 0 0 0
Table: Simplex Tableau I - Initial Step

Dr B. E. Owusu Operational Research I

Table II

Ci Basis x1 x2 s1 s2 s3 RHS
5 x1 1 1 1 0 0 2
0 s2 0 −3 −5 1 0 0
0 s3 0 5 −3 0 1 6
Cj 5 3 0 0 0
Zj 5 5 5 0 0 10
Cj − Zj 0 −2 −5 0 0
The optimal solution is reached for Cj − Zj ≤ 0:

x1 = 2, x2 = 0.

Z = 5x1 + 3x2 = 5(2) + 3(0) = 10.

Dr B. E. Owusu Operational Research I