Simplex Method
Simplex Method
1) Simplex Method: An algorithm for solving LP problems which starts with zero solution
(i.e. zero value of decision variables), evaluates solution, effects changes to improve value of
the objective function and continues doing so until an optimal solution is obtained. (Applicable
when Decision Variables are more than 2.)
2) Simple Tableau: A table used to keep track of the calculations made at each iteration of the
simplex procedure and to provide basis for tableau revision.
3) Basis: The set of basic variables which are not restricted to equal zero in the current basic
solution and are listed in the solution column. The variables with non-zero positive values
which make-up the basis are called basic variables and the remaining variables are called non-
basic variables.
5) Iteration: A sequence of steps performed in moving from one basic feasible solution to
another basic feasible solution.
6) Cj Row: A row in the simplex tableau which contains the co-efficient of the variables in the
objective function. The coefficients in this row indicates the contribution/profit per unit for
each product which are denoted by the variables.
7. Zj Row: A row in the simplex tableau whose elements represent the decrease in the value of
the objective function (i.e. contribution loss per unit) if one unit of the variable is brought into
the solution.
8. ∆j= Cj- Zj Row or Index Row or Net Evaluation Row (NER): A row in the simplex
tableau whose elements represents net per unit contribution of the jth variable in the objective
function, if the variable is brought into the new basic solution. Positive ∆j indicates gain and
negative value indicates loss in the total value Z obtained.
9. Key Column: The column with the largest positive index number (i.e. number in the Cj - Zj
row) and it indicates which variable will enter the solution next.
10. Key Row: The row with the smallest positive value in the replacement ratios. The
replacement ratios are obtained by dividing element in the solution column (quantity column)
by the corresponding elements in the key column. The key row indicates the variable that will
leave the basis in order to make room for entering variable (as indicated by the key column).
11) Key Element: The element at the intersection of key row and key column.
12) Slack Variable: A variable used to convert a less than or equal to restriction (≤) into
equality is known as surplus variables. It is subtracted from the left-hand side of the constraint.
1) Convert the LPP in the Standard form as follows Convert inequalities into equations by
adding slack variables on LHS of inequations, these slack will be there in objective function
with zero coefficient and these variables will be non-negative.
b) Post Cj values which corresponds to coefficients of variables from objective function also
post coefficients of variables from each equations
1 0 0
1 0
d) Xi denotes variables which corresponds to identity matrix [ ] or 0 1 0
0 1
0 0 1
3) Calculate Zj as follows :
5) If ∆j ≤ 0 and go to step 13
7) Select most positive ∆j value, this column is called as key column (KC) and the variable in
the key column is called as entering variable (EV)
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8) Calculate replacement ratio (or minimum ratio) = bi / element from key column (consider
9) Select least positive ratio which corresponds to key row (KR) and the variable in the key
row is called as departing variable (DV)
10) The element which is common to key row and key column is called as key element (KE)
or pivot element.
1) Divide the Key Row by Key element (this row is Revised row)
New Row = Corresponding Old Row - (Intersection of Old Row and key column * Revised
row element)
12) Go to step 3