Example 1: Maximizing Profit
A company produces two products, A and B. Each product requires a certain
amount of labor and raw materials. The company has limited resources
available. The goal is to maximize profit.
Problem:
Objective Function: Maximize profit (Z) = 5x + 4y (where x is the
number of units of product A and y is the number of units of product B)
Constraints:
o Labor: x + 2y ≤ 40 hours
o Raw Material: 2x + y ≤ 60 units
o Non-negativity: x ≥ 0, y ≥ 0
Steps:
1. Standard Form:
o Maximize Z - 5x - 4y = 0
o x + 2y + s1 = 40 (s1 is the slack variable for the labor
constraint)
o 2x + y + s2 = 60 (s2 is the slack variable for the raw material
constraint)
o x ≥ 0, y ≥ 0, s1 ≥ 0, s2 ≥ 0
2. Initial Simplex Tableau:
s
Basis x y s2 RHS
1
Z -5 -4 0 0 0
s1 1 2 1 0 40
s2 2 1 0 1 60
3. Iteration 1:
o Pivot Column: x (most negative in Z row)
o Pivot Row: s2 (smallest positive ratio of RHS/pivot column: 60/2
= 30)
o Pivot Element: 2 (row s2, column x)
o Row Operations:
o Divide row s2 by 2 to make the pivot element 1.
o Subtract the new row s2 from the Z row to eliminate x from
Z.
o Subtract row s2 from row s1 to eliminate x from s1.
4. Iteration 2:
o Pivot Column: y (most negative in Z row)
o Pivot Row: s1 (smallest positive ratio of RHS/pivot column: 20/2
= 10)
o Pivot Element: 2 (row s1, column y)
o Row Operations:
o Divide row s1 by 2 to make the pivot element 1.
o Subtract 2 times the new row s1 from the Z row to
eliminate y from Z.
o Subtract the new row s1 from row s2 to eliminate y from
s2.
5. Optimal Solution: The final tableau will show no negative
entries in the Z row. The optimal solution is:
o x = 20, y = 10
o Z = 5(20) + 4(10) = 140 (maximum profit)
Learning Module: The Simplex Method
Module Overview
Module Objectives:
By the end of this module, learners will be able to:
✅ Understand the concept and applications of Linear Programming (LP).
✅ Formulate linear programming problems in standard form.
✅ Apply the Simplex Method step-by-step to solve LP problems.
✅ Interpret the results of a Simplex tableau.
Introduction to Linear Programming
1.1 What is Linear Programming?
Linear Programming (LP) is a mathematical technique used for optimization, where we
maximize or minimize an objective function subject to constraints.
Examples:
🔹 Maximizing profit in a manufacturing company.
🔹 Minimizing transportation costs in supply chain logistics.
🔹 Optimizing resource allocation in project management.
1.2 Components of an LP Problem
Decision Variables – The unknowns to be determined (e.g., x1,x2x_1, x_2x1,x2).
Objective Function – The function to be optimized (e.g., Z=3x1+5x2Z = 3x_1 + 5x_2Z=3x1+5x2).
Constraints – Limitations on the variables (e.g., x1+2x2≤6x_1 + 2x_2 \leq 6x1+2x2≤6).
Non-Negativity Restrictions – Variables cannot be negative (x1,x2≥0x_1, x_2 \geq 0x1,x2≥0).
Standard Form of an LP Problem
An LP problem must be written in standard form for the Simplex Method:
✅ Maximize or Minimize an objective function.
✅ Constraints written as equalities by adding slack variables.
✅ All decision variables ≥ 0.
