LP: Simplex Maximization Method

• A LP method which can handle two or more variables

Steps for Solving:

1. Set up the constraints from the conditions of the problem.
2. Convert the inequality constraints to equations by adding slack variables.
3. Enter the numerical coefficients and variables in the simplex table.
4. Calculate Cj and Zj values.
5. Determine the optimum column or entering variable by choosing the most positive
value in the Cj - Zj row.
6. Divide the quantity-column values by the non-zero and non-negative entries in the
optimum column. The smallest quotient belongs to pivotal row.
7. Compute the values for the replacing row by dividing all entries by the pivot, then
enter the result in the next table.
8. Compute the new entries for the remaining rows by reducing the optimum column
entries to zero.
9. Calculate Zj and Cj - Zj rows.
10. If there is a positive entry in the Cj - Zj row, return to step5. The final solution has been
obtained if there is no positive value in the C j - Zj row.
LP: Simplex Maximization Method
Problem.
The PNC refinery sells premium, regular and diesel fuel at a profit of P25,
P23 and P18 per liter, respectively. Each liter of premium fuel contains 60
units of high-octane and 40 units of medium-octane particles. Each liter
of regular fuel contains 60 units of high-octane particles, 20 units of
medium-octane particles and 60 units of low-octane particles. Each liter
of diesel fuel contains 20 units of medium-octane particle and 60 units of
low octane particles. Each shipment includes 42,000 units of high octane
particles, 24,000 units of medium octane particles, and 36,000 units of
low-octane particles. By the simplex method, determine the maximum
profit that the company can obtain from the shipment.

Requirements Premium (x1) Regular (x2) Diesel (x3) Availability

High-Octane 60 60 - 42000
Medium -Octane 40 20 20 24000
Low-Octane - 60 60 36000
Profit P25 P23 P18
Solution:
Maximize : P = 25X1 + 23X2 + 18X3
Subject to : 60X1 + 60X2 ≤ 42000 (high-octane)
40X1 + 20X2 + 20X3 ≤ 24000 (medium-octane)
60X2 + 60X3 ≤ 36000 (low-octane)
X1 , X2 , X 3 ≥ 0

Converting inequalities to equations:

Maximize : P = 25X1 + 23X2 + 18X3 + 0 S1 + 0 S2 + 0 S3
Subject to : 60X1 + 60X2 + S1 = 42000
40X1 + 20X2 + 20X3 + S2 = 24000
60X2 + 60X3 + S3 = 36000
X1, X2, X3, S1, S2, S3 ≥0
Solution:
Maximize : P = 25X1 + 23X2 + 18X3 + 0 S1 + 0 S2 + 0 S3
Subject to : 60X1 + 60X2 + S1 = 42000
40X1 + 20X2 + 20X3 + S2 = 24000
60X2 + 60X3 + S3 = 36000
X1, X2, X3, S1, S2, S3 ≥0

Table 1
Cj 25 23 18 0 0 0
Prod Qty X1 X2 X3 S1 S2 S3

0 S1 42000 60 60 0 1 0 0

0 S2 24000 40 20 20 0 1 0

0 S3 36000 0 60 60 0 0 1
Zj

Cj - Zj
Solution:
Computing Zj row values:
0 x (42000 60 60 0 1 0 0) = 0 0 0 0 0 0 0
0 x (24000 40 20 20 0 1 0) = 0 0 0 0 0 0 0
0 x (36000 0 60 60 0 0 1) = 0 0 0 0 0 0 0

Zj = 0 0 0 0 0 0 0
Solution:
Maximize : P = 25X1 + 23X2 + 18X3 + 0 S1 + 0 S2 + 0 S3
Subject to : 60X1 + 60X2 + S1 = 42000
40X1 + 20X2 + 20X3 + S2 = 24000
60X2 + 60X3 + S3 = 36000
X1, X2, X3, S1, S2, S3 ≥0
Outgoing variable Entering variable
Table 1
Cj 25 23 18 0 0 0
Prod Qty X1 X2 X3 S1 S2 S3

0 S1 42000 60 60 0 1 0 0 42000 / 60 = 700

0 S2 24000 40 20 20 0 1 0 24000 / 40 = 600

0 S3 36000 0 60 60 0 0 1
Zj 0 0 0 0 0 0 0

Cj - Zj 25 23 18 0 0 0
Solution:

Table 2
Cj 25 23 18 0 0 0
Prod Qty X1 X2 X3 S1 S2 S3

0 S1

25 X1

0 S3
Zj

Cj - Zj
Solution:
NR2 = OR2 / 40 = 24000 40 20 20 0 1 0
40
NR2 = 600 1 ½ ½ 0 1/40 0

NR1 = OR1 – 60NR2 = 42000 60 60 0 1 0 0

36000 60 30 30 0 1 ½ 0
NR1 = 6000 0 30 -30 1 - 1 ½ 0

NR3 = OR3

NR3 = 36000 0 60 60 0 0 1

ZJ = 25 x (600 1 ½ ½ 0 1/40 0)
= 15000 25 12 ½ 12 ½ 0 5/8 0
Solution:

Outgoing variable Entering variable

Table 2
Cj 25 23 18 0 0 0
Prod Qty X1 X2 X3 S1 S2 S3

0 S1 6000 0 30 -30 1 -1 ½ 0 6000 / 30 = 200

25 X1 600 1 ½ ½ 0 1/40 0 600 / ½ = 1200

0 S3 36000 0 60 60 0 0 1 36000 / 60 = 600

Zj 15000 25 12 ½ 12 ½ 0 5/8 0

Cj - Zj 0 10 ½ 5½ 0 -5/8 0
Solution:

Table 3
Cj 25 23 18 0 0 0
Prod Qty X1 X2 X3 S1 S2 S3

23 X2

25 X1

0 S3
Zj

Cj - Zj
Solution:
NR1 = OR1 / 30 = 6000 0 30 -30 1 -1 ½ 0
30
NR1 = 200 0 1 -1 1/30 -1/20 0

NR2 = OR2 – ½ NR1 = 600 1 ½ ½ 0 1/40 0

100 0 ½ - ½ 1/60 -1/40 0
NR2 = 500 1 0 1 -1/60 1/20 0

NR3 = OR3 – 60NR1 = 36000 0 60 60 0 0 1

12000 0 60 -60 2 -3 0
NR3 = 24000 0 0 120 -2 3 1

ZJ = 23 x (200 0 1 -1 1/30 -1/20 0) = 4600 0 23 -23 23/30 -23/20 0

25 x (500 1 0 1 -1/60 1/20 0) = 12500 25 0 25 -5/12 5/4
0
ZJ= 17100 25 23 2 7/60 1/10 0
Solution:

Outgoing variable Entering variable

Table 3
Cj 25 23 18 0 0 0
Prod Qty X1 X2 X3 S1 S2 S3

23 X2 200 0 1 -1 1/30 -1/20 0

25 X1 500 1 0 1 -1/60 1/20 0 500 / 1 = 500

0 S3 24000 0 0 120 -2 3 1 24000 / 120 = 200

Zj 17100 25 23 2 7/60 1/10 0

Cj - Zj 0 0 16 -7/60 - 1/10 0
Solution:

Table 4
Cj 25 23 18 0 0 0
Prod Qty X1 X2 X3 S1 S2 S3

23 X2

25 X1

18 X3
Zj

Cj - Zj
 Solution:
NR3 = OR3 / 120 = 24000 0 0 120 -2 3 1
120
NR3 = 200 0 0 1 -1/60 1/40 1/120

NR1 = OR1 + NR3 = 200 0 1 -1 1/30 -1/20 0

200 0 0 1 -1/60 1/40 1/120
NR1 = 400 0 1 0 1/60 -1/40 1/120

NR2 = OR2 - NR3 = 500 1 0 1 -1/60 1/20 0

200 0 0 1 -1/60 1/40 1/120
NR2 = 300 1 0 0 0 1/40 -1/120

ZJ = 23 x (400 0 1 0 1/60 -1/40 1/120) = 9200 0 23 0 23/60 -23/40 23/120

25 x (300 1 0 0 0 1/40 -1/120) = 7500 25 0 0 0 25/40 -25/120
18 x (200 0 0 1 -1/60 1/40 1/120) = 3600 0 0 18 -18/60 18/40 18/120
ZJ= 20300 25 23 18 7/30 1/2 2/15
Solution:

Table 4
Cj 25 23 18 0 0 0
Prod Qty X1 X2 X3 S1 S2 S3

23 X2 400 0 1 0 1/60 -1/40 1/120

25 X1 300 1 0 0 0 1/40 -1/120

18 X3 200 0 0 1 -1/60 1/40 1/120

Zj 20300 25 23 18 7/30 1/2 2/15

Cj - Zj 0 0 0 - 7/30 -1/2 -2/15

Conclusion:
The maximum profit PNC refinery can obtain from shipment is P 20,300 which is
obtained by producing 400 liters of regular gas, 300 liters of premium, and 200
liters of diesel.