Mathematics for Business

Part 6: Mathematical
Programming

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1 1
Mathematical Programming

• Linear Programming
• Transportation Problem
• Assignment Problem

2
Linear Programming

3
Linear Programming

Assumptions:
•Linearity
•Certainty
•Devisability

4
Examples

The xyz Company wishes to schedule the production of two items

namely chairs and tables. The management of the company has
to decide as to how many chairs and tables to be produced per
day to maximize the profit. The following information is available
to the management. The profit per item is $35 and $55,
respectively. In order to produce the two items that requires
resources wood, manpower and machine hour. The supply of wood
is restricted to 1500 kg/day. The manpower available per day is 75
carpenters. Also the maximum of 120 machine hours available per
day. The production formula is as given in the following table.

Formulate an LP model to determine the daily production rate of

various models in order to maximize the profit.

5
Examples

6
Examples

A firm manufactures three products A, B and C. The profits are

$3, $2 and $4, respectively. The firm has two machines. The
processing time in minutes for each machine on each product is
given below.

Machines D and E have 2000 and 2500 machine minutes, respectively.

The firm must manufacture at least 100 A’s; 200 B’s and 50 C’s but not
more than 150 C’s. Formulate a linear programming model to maximize
the total profit.

7
Examples

Formulate the following problem as an LP model:

A co-operative farm owns 100 acres of land and has $25,000 in funds
available for investment. The farm members can produce a total of 3500
man hours worth of labor during the months SeptemberMay and 4000
man hours during JuneAugust. If any of these man-hours are not
needed, some members of the farm will use them to work on a
neighbouring farm for $2/hour during SeptemberMay and $3/hour during
JuneAugust. Cash income can be obtained from the three main crops
and two types of livestock: dairy cows and laying hens. No investment
funds are needed for the crops. However, each cow will require an
investment outlay of $3200 and each hen will require $15.
Moreover, each cow will require 1.5 acres of land, 100 man-hours of work
during SeptemberMay and another 50 man-hours during JuneAugust.
Each cow will produce a net annual cash income of $3500 for the farm.
The corresponding figures for each hen are: no acreages, 0.6 man-hours
during SeptemberMay, 0.4 man-hours during JuneAugust, and an
annual net cash income of $200. The chicken house can accommodate a
maximum of 4000 hens and the size of the cattle-shed limits the
members to a maximum of 32 cows.

8
Examples

Estimated man-hours and income per acre planted in each of the three
crops are:

The co-operative farm wishes to determine how much acreage should be

planted in each of the crops and how many cows and hens should be
kept to maximize its net cash income.

9
Examples

Relax and Enjoy Lake Development Corporation is developing a lake side

community at a privately owned lake and in the business of selling
property for vacation and rent cottages. The primary market for these
lakeside lots are middle and upper income families within 100 miles of the
development. Relax and Enjoy has employed the advertising firm
Philippines Jackson to design the promotional campaign for the project.
After considering possible advertising media and the market to be
covered, the agency has made the preliminary recommendations to
restrict the first month’s advertising to five sources. At the end of this
month, the agency will re-evaluate the strategy based upon the month’s
results. The agency has collected data on the number of potential
purchase families reached, the cost per advertisement, the maximum
number of times each medium is available and the expected exposure for
each of the five media. The expected exposure is measured in terms of an
exposure unit, a management judgement measure of the relative value of
one advertisement in each of the media. The measures based on agency’s
experience in the advertising business take into account such factors as
audience profile (age, income and education of the audience reached),
image presented and quality of the advertisement. The information
collected is presented in Table.

10
Examples

Advertising media alternative for relax and enjoy lake development

corporation:

Relax and Enjoy has provided with an advertising budget of $300,000 for
the first month’s campaign.
In addition, the company has a wish to have at least 10 television
commercials, and atleast 50,000 potential purchasers must be reached
during the month. Formulate the problem of media selection.

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Standard Form

If an LPP satisfies the following conditions, then it is said to be in

a standard form.
(i) All the variables are non-negative.
(ii) All constraints must be equations together with non-negative
right-hand side values.
(iii) The objective function may be either minimization or
maximization.

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Example

Find the standard form of an LPP:

Minimize Z 3x1 2x2
s.t. 2x1 x2 15; 3x1 – 4x2 ≥ –6; x1 –2x2 ≥5; x2 ≥0
Sol.
Change: x1x3 –x4, where x3, x4 ≥0

Change all the constraints ≥ to ≤ by multiple with –1:

–3(x3 – x4) – 4x2 ≤ 6
Change all the constraints ≤ to = by adding new variables
–3(x3 – x4) – 4x2 + x5 = 6 và x3 – x4 – 2x2 + x6 = 5

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Methods for the LPP

14
Solutions for the LPP

15
Solutions

Basic Solution Assume that the standard form of an LPP has ‘m’ equations with
‘n’ variables (m ≤ n) together with Non-negative conditions. The unique solutions
resulting from setting (n m) variables to zero such that the remaining m
columns linearly independent are called basic solutions.
Basic Feasible Solution If a basic solution satisfies the Non-negative
conditions, it is named as basic feasible solution.
Basic Infeasible Solution If a basic solution does not satisfy the Non-negative
conditions, it is named as basic infeasible solution.
Optimum Solution If a basic feasible solution maximizes or minimizes the
objective function of the problem, it is named as an optimum solution.
Unique Optimum Solution It means that the optimum value is attained for
only one feasible solution.
Multiple Optimum Solution It means that the same optimum value is attained
for more than one feasible solution.
Basic and Non-basic Variables The variables set equal to zero are (refer to
basic solution definition) called non-basic variables, the remaining variables are
called basic variables.
Degenerate Solution If one or more basic variables become zero, that solution
is named as degenerate solution.

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Examples

Find all the basic feasible solutions to the system of

linear equations, state which among them are, (i)
Basic feasible (ii) Basic infeasible
1) x1 2x2 x3 4; 2x1 x2 5x3 5
2) 3x1 x2 x3 5; –x1 x2 –x4 1

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Convex Set

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Graphical Solutions

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Examples

1) Max Z 3x1 9x2; st. x1 x2 ≤8; x1 2x2 ≤4, x1, x2 ≥0
2) Min Z 2x1 3x2; s.t. x1 x2 ≤4; 6x1 2x2 ≥8; x1 5x2 ≥4; x1 ≤3; x2 ≤3; x1, x2 ≥0
3) Max Z 4x1 5x2 s.t. x1 x2 ≥ 1; –2x1 x2 ≤1; 4x1 –2x2 ≤1; x1, x2 ≥0
4) Max Z = 6x1 − 2x2 st. 2x1 − x2 ≤ 0; x1 ≤ 4; x1, x2 ≥ 0
5) Max Z x1 x2 st. x1 x2 ≤1; −3x1 x2 ≥3; x1, x2 ≥0
6) Max Z −0.1x1 0.5x2 s.t. x1 x2 ≤20; 2x1 5x2 ≤80; −0.1x1 0.5x2 8; x1, x2
≥0
7) Max Z = 5x+6y st. 4x+2y ≤ 10; 4x+2y ≥ 20; x, y ≥ 0
8) Min. Z = 4x+6y st. 4x+2y = 10; 4x+2y ≥ 20; x, y ≥ 0
9) Min Z = 5x + 7y st. 2x + 3y ≥ 6; 3x − y ≤ 15; −x + y ≤ 4; 2x + 5y ≤ 27; x,y ≥ 0
10) Min Z = 5x+5y, st. 2x+y ≥ 15; x+4y ≥ 25; x+2y ≥ 20; x, y ≥ 0
Given x,y ≥ 0, find Max and Min of:
11) Z = 2x + 3y st. 2x + 3y ≥ 6; 3x−y ≤ 15; −x + y ≤ 4; 2x + 5y ≤ 27
12) Z = 6x + 4y st. −x + y ≤ 12; x + y ≤ 24; 2x + 5y ≤ 80
13) Z = 6x + 5y st. x + y ≥ 6; 2x +y ≥ 9
14) Z = x – y st. x + y ≥ 6; 2x +y ≥ 9
15) Z = 5x + 3y st. 2x + 0.6y ≤ 24; 2x + 1.5y ≤ 80

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Examples

1) A sick patient has been advised by his doctor that his diet must contain at least 4000 units
of vitamins, 50 units of minerals and 1400 units of calories. Two foods, F1 and F2, are
available at a cost of $4 and $3 per unit, respectively. One unit of food F1 contains 200
units of vitamins, 1 unit of mineral and 40 units of calories. One unit of food F2 contains
100 units of vitamins, 2 units of minerals and 40 units of calories. Formulate the above
problem as an LPP and solve using graphical method.
2) Memory Chip Data for CPUs:

How many of two types of high-speed computer chips should to be manufactured weekly to
maximize their profits?

21
Examples

3) Consider a toy maker that carves wooden soldiers. The company specializes in two
types: Confederate soldiers and Union soldiers. The estimated profit for each is $28 and
$30, respectively. A Confederate soldier requires 2 units of lumber, 4 hours of carpentry,
and 2 hours of finishing in order to complete the soldier. A Union soldier requires 3 units of
lumber, 3.5 hours of carpentry, and 3 hours of finishing to complete. Each week the
company has 100 units of lumber delivered. The workers can provide at most 120 hours of
carpentry and 90 hours of finishing. Determine the number of each type of wooden soldiers
to produce maximize weekly profits.

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Simplex Methods

(i) Simplex method-I or ordinary simplex method

(ii) Big-M method or penalty method or Charnes
penalty method
(iii) Two-phase simplex method
(iv) Dual simplex method (DSM)

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Ordinary Simplex Method

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Notations Used

• B — Basis elements
• CB — Cost coefficient of the basic element in Cj row
• Cj — Coefficient of the corresponding variable in the objective function.
(j 1, 2, …, n)
• xj — Variable (for j 1, 2, ...n)
• XB — Solution to the basic elements.
• Zj — CB xj ( j 1, 2, n) (Multiply the corresponding entries and add it)
• Zj –Cj — CB xj Cj ( j 1, 2, n) (called net evaluation)
• PC — Pivotal column
• PR — Pivotal row
• PE — Pivotal element
• q — XB/PC

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The Structure of a Simplex Table

Examples: Solve the following LPPs by simplex method

1) Max Z 2x1 4x2; s.t. 2x1 3x2 ≤48; x1 3x2 ≤ 42; x1 x2 ≤21; x1, x2 ≥ 0
2) Max Z 4x110x2; s.t. 2x1 x2 ≤50; 2x1 5x2 ≤100; 2x1 3x2 ≤90; x1, x2 ≥0
3) Max Z 4x1 x2 3x3 5x4 s.t. 4x1 – 6x2 –5x3 4x4 ≥20;
3x1 – 2x2 4x3 x4 ≤10; 8x1 – 3x2 3x3 2x4 ≤20; x1, x2, x3, x4 ≥0
4) Max Z = 30x1 + 25x2, st. 25x1 + 20x2 ≤ 80; 20x1 + 25x2 ≤ 90; x1, x2 ≥ 0
5) Max Z = 10x1 + 5x2, st. 5x + 2x2 ≤ 34; 4x1 + 4x2 ≤ 40; x1, x2 ≥ 0
6) Max Z = 30x1 +25x2 + 20x3, st. 25x1 + 10x2 +15x3 ≤ 80; 20x1 + 25x2 + 10x3 ≤ 90;
x1, x2, x3 ≥ 0
7) Max Z = 3x1 + 2x2 + x3, st. 2x1 + x2 ≤ 60; 2x2 + x3 ≤ 80; 10x1 + 15x2 + 20x3 ≤ 100;
x1 + x2 + 2x3 ≤ 90; x1, x2, x3 ≥ 0.

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Examples

1) Max Z 400x1 100x2 s.t. 4x1 2x2 ≤1600; 5/2x1 x2 ≤1200; 9/2x1 3/2x2 ≤1600; x1, x2
≥0
2) Max Z 12x1 3x2 x3 s.t. 10x1 2x2 x3 ≤100; 7x1 3x2 2x3 ≤77; 2x1 4x2 x3
≤80; x1, x2, x3 ≥0
3) Max Z 20x1 6x2 8x3 s.t. 8x1 2x2 3x3 ≤250; 4x1 3x2 ≤150; 2x1 3x3 ≤90; x1, x2,
x3 ≥0
4) Max Z 50x1 20x2 30x3 s.t. 5x1 x2 7x3 ≤5; 5x1 x2 6x3 ≤6; 3x1 x2 9x3 ≤3; x1,
x2, x3 ≥0
5) Max Z 2x1 5x2 s.t. x1 4x2 ≤24; 3x1 x2 ≤21; x1 x2 ≤9; x1, x2 ≥0
6) Max Z 4x1 5x2 9x3 11x4 s.t. x1 x2 x3 x4 ≤15; 7x1 5x2 3x3 2x4 ≤120; 3x1
5x2 10x3 15x4 ≤100; x1, x2, x3, x4 ≥0
7) Max Z 3x1 4x2 x3 7x4 s.t. 8x1 3x2 4x3 x4 ≤7; 2x1 6x2 x3 5x4 ≤3; x1 4x2
5x3 2x4 ≤8; xj ≥0 (j 1, , 4)
8) Max Z 4x1 5x2 s.t. x1 3x2 ≤12; 4x13x2 ≤24; x1, x2 ≥0;
9) Max Z x1 2x2 s.t. x1 2x2 ≤8; x1 2x2 ≤12; x1 2x2 ≤3; x1, x2 ≥0;
10) Max Z 50x1 70x2 s.t. 120x1 120x2 ≤8400; x1 2x2 ≤100; 2x1 x2 ≤120; x1, x2 ≥0
11) Max Z 3x1 5x2 s.t. 3x1 2x2 ≤18; x1 ≤4; x2 ≤6; x1, x2 ≥0
12) Max Z x1 x2 3x3 s.t. x1 x2 x3 ≤10; 2x1 x3 ≤2; 2x1 2x2 3x3 ≤6; x1, x2, x3 ≥0

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Examples

1) Suppose that a small pharmaceutical firm produces three types of drugs, x1, x2, and x3,
using three types of chemicals, A, B, and C, the maximum available quantities of which are
45, 40, and 25 units, respectively. The firm needs to use 1, 0, and 2 units, respectively, of A,
B, and C to produce one unit of x1; 0, 2, and 1 units of A, B, and C, respectively, to produce
one unit of x2; and 3, 2, and 0 units of A, B, and C, respectively, to produce one unit of x3.
The revenue that the firm obtains from one unit of x1, x2, and x3 is $6, $5, and $3,
respectively. Find the quantities of the drugs that the firm must produce to maximize its
revenue.
2) Assume that a company employs three salespeople, A, B, and C, temporarily to sell its
three products, x1, x2, and x3. It was directed that 1, 0, and 2 hours of A, B, and C to be spent
for the sale of 1 unit of x1; 0, 2, and 1 hours of A, B, and C to be spent for the sale of 1 unit of
x2; and 4, 2, and 0 hours of A, B, and C to be spent for the sale of 1 unit of x3. The minimum
number of hours to be spent by A, B, and C must be 40, 45, and 30 hours, respectively. The
cost of sale of one unit of x1, x2, and x3 is $4, $3, and $2, respectively. How many units of the
three goods should be sold so that the company’s total cost will be minimum?
3) An auto company manufactures cars and trucks. Each vehicle must be processed in the
paint shop and body assembly shop. If the paint shop where only painting truck, takes place
40 per day could be painted. If the paint shop where only painting car, 60 per day could be
painted. If the body shop where only producing cars, it could process 50 per day. If the body
shop where only producing trucks, it could process 50 per day. Each truck contributes
$10,000 to profit, and each car contributes $8000 to profit. Use linear programming to
determine a daily production schedule that will maximize the company’s profits.

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Big-M Method

29
Examples

1) Min Z 12x1 20x2; s.t. 6x1 8x2 ≥ 100; 7x1 12x2 ≥120; x1, x2 ≥0
2) Max Z 3x1 2x2; s.t. 2x1 x2 ≤2; 3x1 4x2 ≥12; x1, x2 ≥0
3) Max Z 8x2; s.t. x1 – x2 ≥0; 2x1 3x2 ≤6; x1, x2 unrestricted.
4) Max Z 6x1 4x2; s.t. 2x1 3x2 ≤30; 3x1 2x2 ≤24; x1 x2 ≥3; x1, x2 ≥0
5) Min C = 8x1 +10x2, st. x1 +3x2 ≥ 30; 4x1 +x2 ≥ 20; x1, x2 ≥ 0;
6) Min C = 5x1 +3x2, st. 6x1 + 3x2 ≥ 30; x1 + 4x2 ≥ 20; x1, x2 ≥ 0;
6) Min C = 4x1 + 3x2 + 2x3, st. x1 + 4x2 + x3 ≥ 40; 5x1 + 4x2 +x3 ≥ 50; 2x1 + x2 + x3 ≥ 60;
x1, x2, x3 ≥ 0;
7) Min C = 8x1 + 5x2 + 3x3, st. 4x2 + x3 ≥ 20; 5x1 + 4x3 ≥ 40; 4x1 + 4x2 ≥ 40; x1, x2, x3 ≥ 0
8) Max Z 2x13x2 s.t. x1 2x2 ≤4; x1 x2 3; x1, x2 ≥0
9) Min Z 5x 6y; s.t. 2x 5y ≥1500; 3x y ≥1200; x, y ≥0
10) Max Z 2x1 x2 x3 s.t. x1 x2 2x3 ≤5; 2x1 3x2 4x3 12; x1, x2, x3 ≥0
11) Max Z 2x1 x2; s.t. x1 x2 ≤10; x1 ≤20; x1, x2 ≥0
12) Max Z x1 2x2 3x3 x4 s.t. x1 2x2 x3 15; 2x1 x2 5x3 20; x1 2x2 x3
x4 10; x1, x2, x3, x4 ≥0
13) Max Z 3x1 2x2 x3 s.t. 2x1 5x2 x3 12; 3x1 4x2 11; x2, x3 ≥0 and x1 is
unrestricted.

30
Examples

1) Three grades of coal A, B and C contains phosphorus and ash as impurities.

In a particular Industrial process, fuel upto 100 ton (Maximum) is required
which should contain ash not more than 3% and phosphorus not more than
0.03%. It is desired to maximize the profit while satisfying these conditions.
There is an unlimited supply of each grade. The percentage of impurities and
the profits of grades are given below:

Find the proportion in which the three grades be used.

2) Assume that a company employs three salespeople, A, B, and C,
temporarily to sell its three products, x1, x2, and x3. It was directed that 1, 0,
and 2 hours of A, B, and C to be spent for the sale of 1 unit of x1; 0, 2, and 1
hours of A, B, and C to be spent for the sale of 1 unit of x2; and 4, 2, and 0
hours of A, B, and C to be spent for the sale of 1 unit of x3. The minimum
number of hours to be spent by A, B, and C must be 40, 45, and 30 hours,
respectively. The cost of sale of one unit of x1, x2, and x3 is $4, $3, and $2,
respectively. How many units of the three goods should be sold so that the
company’s total cost will be minimum?

31
Two Phases Method

32
Eg. Solve the following problem using two-phase
simplex method:

1) Min. Z x1x2; s.t. 2x1 4x2 ≥4; x1 7x2 ≥7; x1, x2 ≥0
2) Min Z x1 2x2 3x3 subject to 2x1 x2 3x3 2; 2x1 3x2 4x3
1; x1, x2, x3 ≥0
3) Max Z 2x1 x2 x3 s.t. 4x1 6x2 3x3 ≤8; 3x1 6x2 4x3 ≤1; 2x1
3x2 5x3 ≥4;
x1, x2, x3 ≥0
4) Max Z 5x1 4x2 3x3 s.t. 2x1 x2 6x3 20; 6x1 5x2 10x3 ≤76;
8x1 3x2 6x3 ≤50; x1, x2, x3 ≥0
5) Min Z 2x1 x2 3x3 s.t. 5x1 2x2 ≥5; 3x1 2x2 4x3 ≥7; 2x1
5x3 ≤3; x1, x2, x3 ≥0
6) Max Z 5x1 x2 s.t. 2x1 x2 6; x1 x2 ≤4; x1 2x2 ≤5; x1, x2 ≥0
7) Min Z 3x1 x2 s.t. x1 2x2 ≥2; x1 x2 ≥3; x1, x2 ≥0;

33
Example
1) M/s Funschool Toys Ltd. manufactures two models of toys T1 and T2.
Each of these products must go through two manufacturing processes A
and B. Each unit of T1 requires one hour in Process A and 1. hours in
Process B; each unit of T2 requires 2 hours in Process A and 3/4 hour in
process B. The machinery supporting Process A currently has a weekly
machine hour capacity of 100 hours, and the weekly capacity of process
B machinery is 90 machine hours. Per unit profits on T1 and T2 are $100
and $150 respectively. Determine the optimal product mix for Funschool
Ltd.
2) The emergency Ward of M/s. Apollo Hospitals Ltd., schedules Nurses to
come on duty every 3 hours for a 6 hours shift. The shift times and the
minimum number of nurses required during each 3 hours time interval
are given below. Determine the schedule that will minimize the total
number of nurses employed in said Emergency ward.

34
Dual problems

• The dual problem:

35
Dual problems

• The dual problem:

36
Relationships between primal and dual LP
problems
• If the primal LP problem is a maximization (minimization) problem, then its dual
is a minimization (maximization) problem. This means that we have to change
the ≤ (≥) sign to ≥ (≤) in the constraints when we set up the dual of a primal
maximization (minimization) problem.
• The matrix of the coefficients of the constraints of the dual problem is the
transpose of the matrix of the coefficients of the constraints of the primal
problem. Therefore, when we set up the dual of a LP problem we need to
transpose the matrix of the coefficients of the constraints.
• The column vector of the constants (the RHS) in the dual problem is the
transpose of the row vector of the coefficients of the objective function in the
primal problem. This implies that when we set up the dual of a LP problem we
need to transpose the coefficients of the objective function in the primal problem
to form the column vector of the constants in the dual problem.
• The row vector of the coefficients of the objective function in the dual problem is
the transpose of the column vector of constants (the RHS) in the primal problem.
Therefore, when we set up the dual of a LP problem we need to transpose the
column vector of constants in the primal problem to obtain the row vector of the
coefficients of the objective function in the dual problem.
• The dual of a dual LP problem is the primal LP problem.
• The variables in both the primal problem and the dual problem are nonnegative.

37
Relationships between primal and dual LP
problems

38
Examples: Find the dual problem

1) Max. z 80x1 90x2 s.t. 3x1 5x2 ≤30; 3x1 2x2 ≤21; x1, x2 ≥0
2) Min. z 10x1 8x2 s.t. x1 2x2 ≥5; 2x1 x2 ≥12; x1 3x2 ≥4; x1 ≥0; x2
unrestricted.
3) Max. z 10x1 20x2; s.t. x1 x2 4; 2x1 3x2 ≤7; x1, x2 ≥0
4) Max Z x1 x2 3x3; s.t. x1 x2 x3 ≤ 10; 2x1 x3 ≤2; 2x1 2x2 3x3 ≤6;
x1, x2, x3 ≥0
5) Min Z 4x1 6x2 18x3; s.t. x1 x2 ≥3; x2 2x3 ≥5; x1, x2, x3 ≥0
6) Max Z x1 2x2 3x3; s.t. 2x1 x2 3x3 2; 2x1 3x2 4x3 1; x1, x2, x3
≥0
7) Min Z x1 x2; s.t. 2x1 x2 ≥4; x1 7x2 ≥7; x1, x2 ≥0
8) Max Z 2x1 5x2 3x3; s.t. 2x1 4x2 x3 ≤8; 2x1 2x2 3x3 ≥7; x1
3x2 5x3 ≥2; 4x1 x2 3x3 ≤4; x1, x2, x3 ≥ 09
9) Max Z 3x1 2x2 4x3 6x4; s.t. x1 x2 x3 x4 25; 2x1 3x2 x3 x4
≤40;
7x1 3x2 4x3 x4 ≤35; 6x1 6x2 x3 3x4 ≥28; x1, x3 ≥0; x2, x4 ≤0;
10) Min Z 4x1 3x2 6x3; s.t. x1 x3 ≥2; x2 x3 ≥5; x1, x2, x3 ≥0

39
Duality Theorems

Theorem 1. If an optimal feasible solution exists, the optimal values of

the primal problem and the optimal values of the dual problem are
identical.
Theorem 2. Suppose that the slack or surplus variable (also called
dummy variable) in the ith constraint of the primal problem is denoted
by si and the jth dummy variable in the dual problem is denoted by tj . If,
in the optimum, x∗j > 0, then t∗j = 0; if y∗i > 0, then s∗i = 0. This means
that if a choice variable in the primal problem is nonzero in the optimum,
its corresponding dummy variable in the dual problem must be zero in
the optimum; and if a choice variable in the dual problem is nonzero in
the optimum, its corresponding dummy variable in the primal problem
must be zero in the optimum. This theorem is called complementary
slackness property or complementary slackness condition or
complementary slackness principle.

40
Canonical Form

This method starts from one infeasible extreme point to another

attempting to find a feasible solution. This feasible solution is also the
optimal solution. We cannot apply this method to all LPP unless the
following conditions are satisfied.
(1) The LPP must be in the canonical form
(2) All the entries of (Zj Cj) must be ≥0.
Canonical Form of an LPP
(i) The objective function should be of maximization.
(ii) All the constraints should have “≤“ inequality.
(iii) All variables must be “≥0”.
If an LPP satisfies the conditions cited above, then it is called in canonical
form.
Eg. Rewrite the given LPP in the canonical form Max Z 3x1x2 s.t. 2x1
x2 ≤10; 3x1 4x2 ≥24; x1 ≥2; x2 ≥0

41
Dual Simplex Method

42
Examples

1) Max Z 3x1 2x2 s.t. 2x1 x2 ≤5; x1 x2 ≤3; x1, x2 ≥0
2) Max Z 2x1 9x2 24x3 8x4 5x5; s.t. x1 x2 2x3 x5 x6 1; 2x1 x3 x4
x5 x7 2; xj ≥0 (for j 1, 2, , 7)
3) Max Z 2x1 x2; s.t. x1 2x2 ≤10; x1 x2 ≤6; x1 x2 ≤2; x1 2x2 ≤1; x1, x2
≥0
4) Min Z 3x1 x2; s.t. x1 x2 ≥1; 2x1 3x2 ≥2; x1, x2 ≥0
5) Min Z x1 2x2 3x3 4x4; s.t. x1 2x2 2x3 3x4 ≥30; 2x1 x2 3x3 2x4
≥20; xj ≥0 (for j 1, 2, 3, 4)
6) Min Z 6x1 7x2 3x3 5x4; s.t. 5x1 6x2 3x3 4x4 ≥12; x2 5x3 6x4 ≥10;
2x1 5x2 x3 x4 ≥8; xj ≥0 (for j 1, 4)
7) Max Z 3x1 2x2; s.t. x1 x2 ≥1; x1 x2 ≤7; x1 2x2 ≥10; x2 ≤3; x1, x2 ≥0
8) Min Z x1 2x2 5x3; s.t. | x1 10x2 3x3| ≤15; 2x1 x2 x3 ≥10; x1, x2, x3
≥0
9) Min Z 2x1 2x2; s.t. 2x1 4x2 ≥1; x1 2x2 ≥1; 2x1 x2 ≥1; x1, x2 ≥0
10) Max Z 3x1 2x2; s.t. x1 x2 ≥1; x1 x2 ≤ 7; x1 2x2 ≥ 10; x2 ≤3; x1, x2 ≥0
11) Max Z 5x1 2x2 3x3; s.t. 2x1 2x2 x3 ≥2; 3x1 4x2 ≤3; x2 3x3 ≤5; x1,
x2, x3 ≥0

43
Transport Problem

• m origins (production centres/warehouses) and n destinations (market

places) in a transportation system.
• The origin i (i 1, 2, , m) has si (si 0) units of single product of
supply, whereas the destination j (j 1, 2, n) requires the demand
(dj 0) dj units.
• Cost of transporting the unit from the origin i to the destination j is cij.
• It is required to determine the number of units of the product to be
transported from origin i to destination j, for all i and j, so that the total
transportation cost can be minimized, subject to the supply and
demand constraints.
• Let xij (xij ≥0) denotes the number of units transported from the ith
origin to jth destination for all i 1, 2, m and j 1, 2, n.
• The relationship between the different elements of a transportation
problem can be given in a tabular form. The box (i, j) will be called cell
(i, j).

44
Linear Programming form

• If the condition is satisfied for a transportation model, then it is called a

balanced transportation problem. Otherwise, the problem is called
unbalanced transportation problem. Even an unbalanced model can be
converted to a balanced one.

45
Solutions

• Basic and Non-basic Cells. If xij be the allocation to the cell (i, j) and
xij 0 is called positive allocation and the cell (i, j) is called
occupied/basic cell. When xij 0 for any cell (i, j), it is named as non-
basic cell (the value need not be represented in that cell).
• Feasible Solution. In a transportation problem, a solution is called
feasible if the set of xij values (xij 0) satisfies all the supply and
demand requirements.
• Basic Feasible Solution. If a feasible solution containing exactly (m
n − 1) basic/occupied cells then it is called basic feasible solution
(non-degenerate solution).
• Degenerate Basic Feasible Solution. If a feasible solution
containing less than (m n 1) basic cells, then it is called degenerate
basic feasible solution (degenerate solution).
• Optimal Solution. A basic feasible solution that minimizes (or
maximizes the profit) the total transportation cost is called optimal
solution.

46
Solutions

• TP Transportation Problem
• S Supply corresponding to the origin
• TS Total Supply • MODI Modified Distributive
• D Demand corresponding to the column Method
• TD Total Demand • M Number of Origins (rows)
• NWCR North West Corner Rule • N Number of Destinations
• RMM Row Minima Method (columns)
• • A Actual Allocation of Units
CMM Column Minima Method
• • TC Total Transportation Cost
LCM Least Cost Method
• • RS Remaining Supply
VAM Vogel’s Approximation Method
• RD Remaining Demand
• VN Vogel Number
• εThe Least Positive Quantity
(106)
• K Number of Basic Cells

47
Solutions

48
Methods to find the initial basic feasible
solution
1. North West Corner Rule (NWCR)
2. Row/Column Minima Method (RMM)
3. Least Cost Method or Matrix Minima Method
(LCM/MMM)
4. Vogel’s Approximation Method (VAM)

49
North-West conner rule

50
Examples
1) Write down the initial basic feasible solution
to the 1st transportation problem by NWCR 1
2) Convert the unbalanced transportation )
problem (the 2nd one) into a balanced one.
3) Find an initial basic feasible solution of the 3rd
problem using NWCR
2
)

3
)

51
Row/Column minima method

52
Examples
1) Solve the 1st transportation problem using row
minima method.
2) Solve the 2nd transportation problem using
column minima method

53
Least Cost/Matrix Minima Method

54
Examples
Obtain an initial basic feasible
solution to the following 1)
transportation problem using
matrix minima method.

2)

55
Vogel’s Approximation Method
(VAM)
• N Number
• CL Close
• VN Vogel Number (penalty cost)
• Rm mth Row
• RVN Row Vogel Number
• Cn nth Column
• CVN Column Vogel Number
• UG Units Given
• R1 1st Row
• C1 1st Column
• SC Selected Cell

56
Examples
1) Find the initial basic feasible solution
of the following transportation problem 1)
(1st table) by VAM.
2) Solve the transport problem (2nd table)
3) The following table (3rd table)
shows all the information
regarding the available supply at
each warehouse, the
requirements of each market and
the unit transportation cost from
each warehouse to each market.
Find the initial solution using
VAM.

57
Stepping Stone Method/Modified Distributive
Method
• NBC Number of Basic Cells
• I Number of Iterations
• BCs Basic Cells
• VU Vertically Up

• VD Vertically Down
• HR Horizontally
Right
• HL Horizontally Left
• R Row
• C Column
• H Horizontal
• V Vertical

58
Examples
1) Solve the following transport problem:

(a) (b)

2) Consider the transportation problem. Find (i) initial solution using

NWCR. (ii) Find the optimum solution. Is the solution unique? If not
find the alternate solution.

59
Examples

1)

2)

60
Assignment Problem
Consider n jobs and n persons. Assume that each job can be done only by one
person and the expense a person required for completing the ith job (i 1, 2, n)
by the jth person (j 1, 2, n) is denoted by a real number Cij. On the whole, this
model deals with the assignment of n candidates to n jobs in such a way that to
minimize the time (cost) for over all completion of the jobs.

Obviously, the assignment problem is a special case of the standard transportation

problem with the following properties:
(i) The total number of origins is equal to the number of total destinations.
(ii) Each origin is represented by one job, that is, si 1, where i 1, 2, n.
(iii) Each destination is represented by one person, that is, dj 1, where j 1, 2,
n.

61
Hungarian Algorithm

62
Examples

1) 2) 3)

4) A manager has four salesmen and four sales districts. He estimates

that the profit per day from each salesman in each district would be as
follows. Find the assignment of salesmen to districts that will result in
maximum profit.

63
Examples
5) Solve the following problem to maximize the profit. Which job is to be
left?

6) Impossible Assignment

64
65