Dual in Linear Programming

Every primal model can be associated with another known model known as the dual
model.

LP Model

Let x1 = number of units of product 1 to be produced every period.

x2 = number of units of product 2 to be produced every period.

Primal Model:
Maximize: P = 60x1 + 80x2 (Objective function)
Subject to: x1 70 (material R constraint)
2x1 + x2 160 (material S constraint)
2x1 + 3x2 240 (material T constraint)
2x2 120 (material U constraint)
x1 , x2 0

Formulation of Dual LP model for a given primal problem.

1. The objective is reversed. If the primal is a maximization, the dual is minimization, and
vice versa.
2. The right-hand side constants in constraints of the primal become the objective
coefficients in the dual.
3. The primals objective coefficients become the right-hand side constants of the dual
constraints.
4. The transpose of the primal constraint coefficients become the dual constraint
coefficients.
5. The inequality signs in the explicit constraints are reversed.

Dual Model:
Minimize: C = 70y1 + 160y2 + 240y3 + 120y4 (Objective function)
Subject to: y1 + 2y2 + 2y3 60 (product 1 constraint)
y2 + 3y3 + 2y4 80 (product 2 constraint)
y1, y2, y3,y4 0
where: y1 = opportunity cost of 1 unit of material R.
y2 = opportunity cost of 1 unit of material S.
y3 = opportunity cost of 1 unit of material T.
y4 = opportunity cost of 1 unit of material U.
 Examination of the simplex solution of both the primal and dual problems will reveal the
following:
1. All the terms in the first dual constraint pertain to product 1 and all the terms in the
second dual constraint pertain to product 2.
2. The optimum value is the same for both the primal and the dual.
3. The optimum solution of the primal is reflected in the final simplex tableau of the
dual. The optimum value of x1 is the negative of the opportunity cost of of s1 , and
optimum value of x2 is the negative of the opportunity cost of s2. The values of the
slack variables are the net contributions of y1, y2, y3 and y4, respectively.
4. Similarly, the optimum values of the dual variables appear in the final simplex
tableau of the primal. The values of y1, y2, y3 and y4 are found in the row for the
opportunity costs, while the values of the surplus variables are the negative of the
net contributions of x1 and x2, respectively.

Sensitivity/Post Optimality Analysis

Analysis of the effect of change in one or more parameters defining a linear
programming model. Considered as the most important aspect of linear programming.

A. Economic Evaluation of Resources

Dual
y1 = 0 (opportunity cost of 1 unit of material R)
y2 = 5 (opportunity cost of 1 unit of material S)
y3 = 25 (opportunity cost of 1 unit of material T)
y4 = 0 (opportunity cost of 1 unit of material U)
Minimum cost = 70(0) + 160(5) + 240(25) + 120(0) = 6,800

Primal
x1 = 60 (number of units of product 1 to be produced every period)
x2 = 40 (number of units of product 2 to be produced every period)
Maximum profit = 60(60) + 80(40) = 6,800

Interpretation:
a) Opportunity cost of material S is 5. Total profit is increased/decreased by 5 if
material S is increased/decreased by 1 unit.
b) Opportunity cost of material T is 25. Total profit is increased/decreased by 25 if
material T is increased/decreased by 1 unit.
c) Increasing material R and material U will not affect profit.
d) Shadow prices: The manufacturer should not pay more than 5 for an additional unit
of material S or more than 25 for an additional material T.

B. Right-Hand-Side Ranging
 The process of finding the range of applicability of the shadow price (opportunity
cost or marginal contribution) of a resource is referred as right-hand-side ranging.

Steps in right-hand-ranging.
1) Divide the numbers in the quantity column by the corresponding numbers in the
column of the slack variable associated with the resource being evaluated.
2) Obtain the lower limit of the range by subtracting the smallest positive ratio from
the current availability of the resource.
3) Obtain the upper limit of the range by adding the absolute value of the largest
negative ratio to the given availability of the resource.

Shadow price of material S is 5. (s2).

10 -3/4 = -40/3
40 1 = 40
60 3/4 = 80
40 -1/2 = -80

Lower limit: 160 40 = 120

Upper limit: 160 + 13.33 = 173.33

Shadow price of material S remains equal to 5 for as long as it ranges from 120 to
173.33.

C. Changes in the Objective Function Coefficients

The range over which the objective function coefficient of a basic variable may vary
without affecting the optimum solution is called the range of optimality ( or range of
profitability) for that coefficient.

Steps
1. Divide the net contributions of the nonbasic variables by the corresponding
numbers in the row of the variable being evaluated.
2. The lowest positive ratio is the largest amount that can be added to the objective
function value.
3. The absolute value of the largest negative ratio represents the largest amount that
can be removed from the objective function value.

-5 3/4 = -6.67
-25 -1/4 = 100

Lower limit: 60 6.67 = 53.33

Upper limit: 60 + 100 = 160
 Optimum solution remains unchanged for as long as the per unit profit of product 1 is
within the range of 53.33 to 160.

Range for the Nonbasic Variables.

When the variable associated with a particular product is not in the optimal solution, we
know that the variable is nonbasic and therefore, the product is not profitable.

Evaluating New Production Processes

The dual problem is very useful in evaluating new production processes.

Example: Introduce another product. Producing 1 unit of product 3 requires 1 unit of

material R, 1 unit of material S, 2 units of material T, and 1 unit of material U. Profit
contribution of product 3 is 75.

y1 + y2 + 2y3 + y4 75

This product will not be a valuable addition unless the associated dual constraint is violated. It
will not be profitable unless the opportunity cost consumed is less than the per-unit profit.

Let us substitute the values obtained in the dual simplex method.

0 + 5 + 2(25) + 0 = 55 < 75

Product 3 constraint is violated, we say that it is profitable.

Exercise
The primal model for a product-mix problem and the corresponding optimal tableau are given.

Maximize: P = 240x1 + 150x2+ 60x3

Subject to: 4x1 + 4x2 + 6x3 560 (labor time)
2x1 + x2 + 2x3 360 (material)
2x1 + x2 + 5x3 240 (machine time)
x1 , x2, x3 0
where x1 = number of product 1 to be produced every period.
x2 = number of product 2 to be produced every period.
x3 = number of product 3 to be produced every period.
240 150 60 0 0 0
x1 x2 x3 s1 s2 s3
150 x2 0 1 -2 1/2 0 -1 40
0 s2 0 0 -3 0 1 -1 120
240 x1 1 0 7/2 -1/4 0 1 100
240 150 540 15 0 90 30000
0 0 -480 -15 0 -90
1. What is the optimum solution of the primal problem?
2. Interpret the values of the slack variables in the context of the problem.
3. Write the dual model.
4. What are the shadow prices?
5. Show that the total profit contribution is equal to the total contribution of the
resources.
6. Find the range of applicability for the shadow price of labor time.
7. Find the range of applicability for the shadow price of material.
8. Find the range of applicability for the shadow price of machine time.
9. Find the range over which the profit contribution of product 1 may vary without
affecting the maximum solution.
10. Suppose the profit contribution of product 2 is raised to 180. Will this increase affect the
maximum solution?
11. By how much must the profit contribution of product 3 increase to make it profitable?
12. The manufacturer is considering producing a product 4. Suppose a unit of this product
requires 2 units of labor time, 3 units of material, and 4 units of machine time. To make
it profitable, what should its profit contribution be?