OPERATIONS RESEARCH

CHAPTER III
LINEAR PROGRAMMING
SIMPLEX METHOD
 INTRODUCTION
The graphical method to solving LPPs provides fundamental
concepts for fully understanding the LP process. However,
the graphical method can handle problems involving only
two decision variables (say X1 and X2).
 The simplex method is an ITERATIVE or “step by step”
method or repetitive algebraic approach that moves
automatically from one basic feasible solution to another
basic feasible solution improving the situation each time
until the optimal solution is reached at.
Note: The simplex method starts with a corner that is in
the solution space or feasible region and moves to
another corner the solution space improving the value of
the objective function each time until optimal solution is
reached at the optimal corner.
 INTRODUCTION
Scope of solution of LPP by simplex method
Following types of problems are solved by
simplex method:
 Maximize Z with inequalities of constraints in “<
“form.
 Minimize Z with inequalities of constraints in

“>“form.
 Maximize Z with inequalities of constraints in
“>“form.
 Maximize Z or Minimize Z with
inequalities of constraints in “< “, “>“or
“=” form
 MAXIMIZATION PROBLEMS
Maximize Z with inequalities of constraints in
“< “form
Example: Solve the problem using the simplex approach
Max.Z=300x1 +250x2
Subject to:
2x1 + x2 < 40 (Labor )
x1+3x2 < 45 (Machine)
x1 < 12 (Marketing)
x 1, x 2 > 0
Solution
Step 1
Formulate LPP Model
Step 2
Standardize the problem, i.e convert constraint inequality into
equality form by introducing a variable called Slack variable.
 MAXIMIZATION PROBLEMS
Slack Variables:
 A slack variable(s) is added to the left hand side of a <
constraint to covert the constraint inequality in to
equality. The value of the slack variable shows unused
resource.


 A slake variable emerges when the LPP is a

maximization problem.


 Slack variables represent unused resource or idle

capacity. Thus, they don’t produce any product and
their contribution to profit is zero.


 Slack variables are added to the objective function

with zero coefficients.
 Let that, s1 s2 and s3 be unused labor, machine and
marketing hours, respectively.
 MAXIMIZATION PROBLEMS
Max.Z=300x1 +250x2 + 0 s1 +0 s2+ 0 s3
St:
Standard form
2 x1+x2 + s1 +0 s2+ 0 s3= 40
x1+3x2 +0s1 + s2+ 0 s3= 45
x1 + 0s1 + 0s2+ s3= 12
x1 , x2 , s1 , s2, s3 > 0

Step 3
 Obtain the initial simplex tableau
 To represent the data, the simplex method uses a table called the
simplex table or the simplex matrix.
 ==> In constructing the initial simplex tableau, the search for of
the optimal solution begins at the origin. Indicating that nothing
can be produced;
 Thus, first assumption, No production implies that x =0 and x =0
1 2
 MAXIMIZATION PROBLEMS

IDENTIFY BASIC AND NON BASIC VARIABLES:

 Basic variables are variables with non-zero
solution values. Or: basic variables are variables
that are in the basic solution. Basic variables
have 0 values in the Cj-Zj row.
 Non-basic variables are variables with zero
solution values. Or: non-basic variables are
variables that are out of the solution.
MAXIMIZATION PROBLEMS
Construct the initial simplex tableau

Cj Profit per unit row

SV Q
X1 X2 S1 S2 S3

Profit S1 Decision variables Slack variables Columns Solutio

per columns n
unit S2 quantit
y
colum
S3 column
n
Zj Gross
profit
Cj - Zj row
MAXIMIZATION PROBLEMS
Construct the initial simplex tableau

Cj 300 250 0 0 0
SV Q
X1 X2 S1 S2 S3

0 S1 2 1 1 0 0 40

0 S2 1 3 0 1 0 45

0 S3 1 0 0 0 1 12

Zj 0 0 0 0 0 0

Cj - Zj 300 250 0 0 0
 MAXIMIZATION PROBLEMS
Step 4:
Choose the “incoming” or “entering” variables
Note: The entering variable is the variable that has
the most positive value in the Cj - Zj row also
called as indicator row. Or the entering variable
is the variable that has the highest contribution
to profit per unit.
 X1 in our case is the entering variable
 The column associated with the entering
variable is called key or pivot column ( X1
column in our case )
MAXIMIZATION PROBLEMS
Construct the initial simplex tableau

Cj 300 250 0 0 0
SV Q
X1 X2 S1 S2 S3

0 S1 2 1 1 0 0 40

0 S2 1 3 0 1 0 45

0 S3 1 0 0 0 1 12

Zj 0 0 0 0 0 0

Cj - Zj 300 250 0 0 0
 MAXIMIZATION PROBLEMS
Step 5:
Choose the “leaving “or “outgoing” variable
==> In this step, we determine the variable that will leave the
solution for X1 (or entering variable)
Note: The row with the minimum or lowest positive (non-negative)
replacement ratio shows the variable to leave the solution.
Replacement Ratio (RR) = Solution Quantity (Q)
Corresponding values in pivot column
Note: RR>0

 The variable leaving the solution is called leaving variable or

outgoing variable.
 The row associated with the leaving variable is called key or pivot
row (s3 column in our case)
 The element that lies at the intersection of the pivot column and
pivot row is called pivot element(No 1 in our case)
MAXIMIZATION PROBLEMS
Construct the initial simplex tableau

Cj 300 250 0 0 0
SV Q
X1 X2 S1 S2 S3

0 S1 2 1 1 0 0 40

0 S2 1 3 0 1 0 45

0 S3 1 0 0 0 1 12

Zj 0 0 0 0 0 0

Cj - Zj 300 250 0 0 0
 MAXIMIZATION PROBLEMS
Step 6:
 Repeat step 3-5 till optimum basic feasible solution
is obtained.
 Or: repeat step 3-5 till no positive value occurs in
the Cj - Zj row.

Note: Divide each element of the pivot row by the

pivot element to find new values in the key or
pivot row.
 Perform row operations to make all other entries
for the pivot column equal to zero.
MAXIMIZATION PROBLEMS
Second simplex tableau

Cj 300 250 0 0 0
SV Q
X1 X2 S1 S2 S3

0 S1 0 1 1 0 -2 16 R’3 = R3 /1

0 S2 0 3 0 1 -1 33 R’2 = -1*R’3 + R2

300 X1 1 0 0 0 1 12 R’1 = -2*R’3 + R1

Zj 300 0 0 0 300 3600

Cj - Zj 0 250 0 0 -300
 MAXIMIZATION PROBLEMS
Third and Final simplex tableau

Cj 300 250 0 0 0 R’2 = R2 /3

SV Q
X1 X2 S1 S2 S3 R’1 = -1*R’2 + R1
R’3 = R3
0 S1 0 0 1 -1/3 -5/3 5
Therefore,
250 X2 0 1 0 1/3 -1/3 11 X1 =12, X2 =11,
and S1 =5 and
300 X1 1 0 0 0 1 12 Max Z = 6350

Zj 300 250 0 250/3 650/3 6350

Cj - Zj 0 0 0 -250/3 -650/3
 MAXIMIZATION PROBLEMS
Exercise: A Juice Company has available two kinds of food
Juices: Orange Juice and Grape Juice. The company
produces two types of punches: Punch A and Punch B. One
bottle of punch A requires 20 liters of Orange Juice and 5
liters of Grape Juice.1 Bottle of punch B requires 10 liters
of Orange Juice and 15 liters of Grape Juice.
From each of bottle of Punch A a profit of $4 is made and
from each bottle of Punch B a profit of $3 is
made .Suppose that the company has 230 liters of Orange
Juice and 120 liters of Grape Juice available
Required:
a) Formulate this problem as a LPP
b) How many bottles of Punch A and Punch B the company
should produce in order to maximize profit? (Using the
simplex method)
c) What is this maximum profit?
 MAXIMIZATION PROBLEMS
Final Simplex tableau

Cj 4 3 0 0
SV Q Therefore,
X1 X2 S1 S2 X1 =9, X2 =5,
and Max Z = 51
4 X1 1 0 3/50 -1/25 9

3 X2 0 1 -1/50 2/25 5

Zj 4 3 0.12 0.08 51

Cj - Zj 0 0 -0.12 -0.08
 MAXIMIZATION PROBLEMS
Exercise: Solve the following LPPs using simplex method

1. Max.Z=3x1 +5x2 2. Max.Z=20x1 +10x2

Subject to: Subject to:
x2 < 6 5x1+4x2 < 250
2x1+5x2 < 150
3x1+2x2 < 18
x1, x2 >0
x1, x2 >0

Answer:
Answer:
x1=50, x2 =0, s1 =0 , s2=50
x1=2, x2 =6, s1 =0 , s2=0
and MaxZ=$36
and MaxZ=$1,000
 MINIMIZATION PROBLEMS
 Minimize Z with inequalities of
constraints in “> “form
 There are two methods to solve
minimization LP problems:
1. Direct method/Big M-method/
 Using artificial variables
2. Conversion method
 Minimization by maximizing the dual
 MINIMIZATION PROBLEMS
 Surplus Variable (-s):
 A variable inserted in a greater than or equal to
constraint to create equality. It represents the amount of
resource usage above the minimum required usage.
 Surplus variable is subtracted from a > constraint in the
process of converting the constraint to standard form.
 Neither the slack nor the surplus is negative value. They
must be positive or zero.
 Artificial variable (A):
 Artificial variable is a variable that has no meaning in a
physical sense but acts as a tool to create an initial
feasible LP solution.
Note: To put into standard form
< Add a slack variable
= Add an artificial variable
> Subtract a surplus variable and add a slack variable
 MINIMIZATION PROBLEMS
Big M-method /Charnes Penalty Method/
 The Big-M Method is a method which is used in removing
artificial variables from the basis .
 In this method; we assign coefficients to artificial
variables, undesirable from the objective function point
of view.
 If objective function Z is to be minimized, then a very
large positive price (called penalty) is assigned to each
artificial variable.
 Similarly, if Z is to be maximized, then a very large
negative price (also called penalty) is assigned to each
of these variables.
 Following are the characteristics of Big-M Method:

a) High penalty cost (or profit) is assumed as M

b) M is assigned to artificial variable A in the objective
function Z.

 MINIMIZATION PROBLEMS
Big M-method /Charnes Penalty Method/


 Following are the characteristics of Big-M Method:

c) Big-M method can be applied to minimization as well
as maximization problems with the following
distinctions:
i. Minimization problems: -Assign +M as coefficient of
artificial variable A in the objective function Z
ii. Maximization problems: -Here –M is assigned as
coefficient of artificial variable A in the objective
function Z
d) Coefficient of S (slack/surplus) takes zero values in
the objective function Z
e) For minimization problem, the incoming variable
corresponds to the highest negative value of Cj-Zj.
f) Solution is optimal when there is no negative value of
Cj-Zj.(For minimization case)
 MINIMIZATION PROBLEMS
Big M-method /Charnes Penalty Method/
Example:
Minimize Z=25x1 +30x2
Subject to:
20x1+15x2 > 100
2x1+ 3x2 > 15
x1, x2 >0
Solution
Step 1
Standardize the problem
Minimize Z=25x1 +30x2 +0s1+0s2 +MA1+MA2
Subject to:
20x1+15x2- s1+A1 = 100
2x1+ 3x2 –s2+A2 = 15
x1, x2 , s1, s2 ,A1 ,A2 > 0
 MINIMIZATION PROBLEMS
Big M-method /Charnes Penalty Method/
Solution
Step 2
Initial simplex tableau
The initial basic feasible solution is obtained by setting
x1= x2= s1= s2=0
No production, x1= x2= s1=0==>20(0) +15(0) - 0+A1 = 100
==> A1 = 100
x1= x2= s2=0==>0(0)+3(0) - 0+A2 =15==> A2 = 15
 MINIMIZATION PROBLEMS
Initial simplex tableau
Cj 25 30 0 0 M M
SV Q
X1 X2 S1 S2 A1 A2 RR

M A1 20 15 -1 0 1 0 100 5

M A2 2 3 0 -1 0 1 15 7.5

Zj 22M 18M -M -M M M 115M

25-22M 30-18M M M 0 0
Cj - Zj
 MINIMIZATION PROBLEMS
Big M-method /Charnes Penalty Method/
Note:
Once an artificial variable has left the basis, it
has served its purpose and can therefore be
removed from the simplex tableau. An artificial
variable is never considered for re-entry into the
basis.
 MINIMIZATION PROBLEMS
Second simplex tableau
Cj 25 30 0 0 M

SV Q
X1 X2 S1 S2 A2
RR
25 X1 1 ¾ -1/20 0 0 5
20/3

M A2 0 3/2 1/10 -1 1 5
10/3
Zj 25 75/4+3/2M -5/4+1/10M -M M 125+5M

Cj - Zj 0 45/4-3/2M 5/4-1/10M M 0
 MINIMIZATION PROBLEMS
Second simplex tableau
Cj 25 30 0 0 M

SV Q
X1 X2 S1 S2 A2
RR
25 X1 1 ¾ -1/20 0 0 5
20/3

M A2 0 3/2 1/10 -1 1 5
10/3
Zj 25 75/4+3/2M -5/4+1/10M -M M 125+5M

Cj - Zj 0 45/4-3/2M 5/4-1/10M M 0
 MINIMIZATION PROBLEMS
Third simplex tableau
Cj 25 30 0 0
SV Q
X1 X2 S1 S2

25 X1 1 0 -1/10 ½ 5/2

30 X2 0 1 1/15 -2/3 10/3

Zj 25 30 -1/2 -15/2 162.5

Cj - Zj 0 0 ½ 15/2
 MINIMIZATION PROBLEMS
Big M-method /Charnes Penalty Method/
Solution
Cj - Zj > 0==>Optimal solution is reached
X1=5/2; X2=10/3 and MinZ=162.5

Note:
As long as an “A” variable is available in the solution variable
column, the solution is infeasible.
Exercise Use the penalty (Big-M) method to solve the
following LPP
Min Z=5x1 +3x2
Subject to: Answer:
2x1+4x2 < 12 2xMinZ=23
X1=4, X 2=1, S1=0, S2=12 and 1+ 2x2 =
10
5x1+ 2x2 > 10
x1, x2 >0
 SPECIAL CASES IN SIMPLEX METHOD
1. Mixed constraints
Example
Max Z=6x1 +8x2
Subject to:

x2 < 4
x1+ x2 = 9
6x1+ 2x2 >24
x1, x2 >0
 SPECIAL CASES IN SIMPLEX METHOD
1. Mixed constraints
Example
Max Z=6x1 +8x2
Subject to:

x2 < 4
x1 + x2 = 9
6x1+ 2x2 >24
x1 , x 2 >0

Standard form
Max.Z=6x1 +8x2 + 0 s1 +0 s2+ 0 s3-M A2- M A3
St:
x2 + s1 = 4
x1+ x2 + A2 = 9
6x1+2x2 - s3 + A3 =24
All Variables >0
 SPECIAL CASES IN SIMPLEX
METHOD
Initial simplex tableau
Cj 6 8 0 0 -M -M
SV Q
X1 X2 S1 S3 A2 A3
Ans: At
the 4th
0 S1 0 1 1 0 0 0 4 tableau:
X1 =5 ,X2
-M A2 1 1 0 0 1 0 9 =4 ,S3
=14 and
-M A3 6 2 0 -1 0 1 24 MaxZ=62

Zj -7M -3M 0 +M -M -M -37M

7M+6 3M+8 0 -M 0 0
Cj - Zj
 SPECIAL CASES IN SIMPLEX METHOD
2. Two incoming variables / Or Tie for entering
variables/

In order to break this tie, the selection for the key

column (entering variable) can be made arbitrary.
However; the number of solution can be
minimized by adopting the following rules:
1. If there is a tie between two decision variables,
then the selection can be made arbitrary.
2. If there is a tie between a decision variable and
a slack (or surplus) variable, then select the
decision variable to enter into basis first.
3. If there is a tie between slack or surplus
variable, then selection can be made arbitrary.
 SPECIAL CASES IN SIMPLEX
METHOD
Example (a tie between two decision variables)
Cj
SV Q
X1 X2 S1 S3

12 12 0 0
Cj - Zj
 SPECIAL CASES IN SIMPLEX
METHOD
Example (a tie between Xi and Si )
Cj
SV Q
X1 X2 S1 S3

12 0 12 0
Cj - Zj
 SPECIAL CASES IN SIMPLEX
METHOD
Example (a tie between slack or surplus variables)
Cj
SV Q
X1 X2 S1 S3

0 3 12 12
Cj - Zj
 SPECIAL CASES IN SIMPLEX METHOD
3. Infeasibility
A situation with no feasible solution may exist
if the problem was formulated improperly.
Infeasibility comes about when there is no
solution that satisfies all of the problem’s
constraints.
In the simplex method, an infeasible solution is
indicated by looking at the final tableau .In
it, all Cj - Zj row entries will be the proper
sign to imply optimality, but an artificial
variable (A) will still be in the solution mix.
SPECIAL CASES IN SIMPLEX METHOD
Infeasibility

Example: Minimization Case

Cj 5 8 0 0 M

SV X1 X2 S1 S2 A2 Q

5 X1 1 1 -2 3 0 200

8 X2 0 1 1 2 0 100
M A2 0 0 0 -1 1 20
Zj 5 8 -2 31-M M 1,800+200M
Cj - Zj 0 0 2 M-31 0
 SPECIAL CASES IN SIMPLEX METHOD
4. Unbounded Solutions
 No finite solution may exist in problems that are
not bounded .This means that a variable can be
infinitely large without violating a constraint.
 In the simplex method, the condition of
unboundedness will be discovered prior to reaching
the final tableau. We will note the problem when
trying to decide which variable to remove from the
solution mix.
 The procedure in unbounded solution is to divide
each quantity column number by the corresponding
pivot column number. The row with the smallest
positive ratio is replaced. But if the entire ratios
turn out to be negative or undefined, it indicates
that the problem is unbounded.
SPECIAL CASES IN SIMPLEX METHOD

Unbounded Solutions
Example: Maximization Case

Cj 6 9 0 0

SV X1 X2 S1 S2 Q
RR
9 X2 -1 1 2 0 30 30/-1 =-30

0 S2 -2 0 -1 1 10 10/-2 = -5

Zj -9 9 18 0 270

Cj - Zj 15 0 -18 0
 SPECIAL CASES IN SIMPLEX METHOD
5. Degeneracy
 If there is a tie for the smallest ratio, this is a signal that
degeneracy exists. Degeneracy can occur right in the first (initial
tableau).This normally happens when the number of constraints
is less than the number of variables in the objective function.
Problem can be overcome by trial and error method.
 Degeneracy could lead to a situation known as cycling, in
which the simplex algorithm alternatives back and forth
between the same non-optimal solutions, i.e, it puts a new
variable in, then takes it out in the next tableau, puts it back
in ,and so on.
 One simple way of dealing with the issue is to select either
row (S2 or S3 in this case) arbitrary. If we are unlucky and
cycling does occur, we simply go back and select the other
row.
Remark
 When there is a tie between a slack and artificial variable to
leave the basis, the preference shall be given to artificial
variable to leave the basis and there is no need to apply the
procedure for resolving such cases.
SPECIAL CASES IN SIMPLEX METHOD

Degeneracy
Example

5 8 2 0 0 0
Cj

Q
SV X1 X2 X3 S1 S2 S3 RR

8 X2 1/4 1 1 -2 0 0 10 10/1/4=40

20/4=5 Tie for the smallest ratio

0 S2 4 0 1/3 -1 1 0 20 indicates degeneracy.
0 S3 2 0 2 2/5 0 1 10 10/2=5

Zj 2 8 8 16 0 0 80

C j - Zj 3 0 -6 -16 0 0
 SPECIAL CASES IN SIMPLEX METHOD
6. Multiple Optimal Solutions
Multiple optimal solutions exist when non-basic variable
contains zero on its Cj - Zj row.
Example:
Maximization problem

Cj 3 2 0 0

SV X1 X2 S1 S2 Q

2 X2 3/2 1 1 0 6

0 S2 1 0 1/2 1 3

Zj 3 2 2 0 12

Cj - Zj 0 0 -2 0
 SPECIAL CASES IN SIMPLEX METHOD
6. Multiple Optimal Solutions
Multiple optimal solutions exist when non-basic variable
contains zero on its Cj - Zj row.
Example:
Maximization problem

Cj 3 2 0 0
MaxZ=3X1+2X2
SV X1 X2 S1 S2 Q
X1=0, X2=6, S2=3
and MaxZ=12
2 X2 3/2 1 1 0 6
or

0 S2 1 0 1/2 1 3 X1=3, X2=3/2

and MaxZ=12
Zj 3 2 2 0 12

Cj - Zj 0 0 -2 0
END OF THE CHAPTER
THANK YOU!