Course Code and Title: ACED 4 - Management Science

Lesson Number: 4

Topic:Linear Programming by Simplex Maximization Method

Introduction

In the previous module, we used the graphical method to solve linear

programming problems, but this approach will not work for problems that
have more than two variables. In real life situations, linear programming
problems consist of literally thousands of variables and are solved by
computers. We can solve these problems algebraically, but that will not be
very efficient. So we need a method that has a systematic algorithm and can
be programmed for a computer. The method has to be efficient enough so
we wouldn't have to evaluate the objective function at each corner point. We
have just such a method, and it is called the simplex method.

Objectives
At the end of this lesson, you should be able to:
1. .Describe simplex maximization method and the steps in solving LP
problems using simplex maximization method.
2. Solve LP problems using simplex maximization method.
3. Show orderliness and critical thinking when solving LP problems using
simplex maximization method.

Pre-Assessment
Select the best answer:
1. A basic feasible solution is a solution to an LP problem that
corresponds to a corner point of the feasible region.
a. True
b. False
2. In preparing constraint for an initial simplex tableau, you would
a. add a slack variable.
b. add a surplus variable.
c. subtract an artificial variable.
d. subtract a surplus variable and add an artificial variable.
3. In the initial simplex tableau, the solution mix variables can be
a. only slack variables.
b. slack and surplus variables.
c. artificial and surplus variables.
d. slack and artificial variables.
4. Even if an LP problem involves many variables, an optimal solution will
always be found at a corner point of the n-dimensional polyhedron
forming the feasible region.
a. True
b. False
5. Which of the following in a simplex tableau indicates that an optimal
solution for a maximization problem has been found?
a. All the values are negative or zero.
b. All the values are positive or zero.
c. All the substitution rates in the pivot column are negative or zero.
d. There are no more slack variables in the solution mix.
Presentation of the Lesson

The simplex method was developed by George B. Dantzig of Stanford

University. It is a repetitive optimizing technique. It repeats the process of
mathematically moving from an extreme point to another extreme point until
an optimal solution is reached.

Steps in Solving a Maximization Problem Using Simplex Method:

1. Convert the inequality explicit constraints to equations by adding slack
variables.
if ≤ add the S at the left side of the equation
= add the S at the left side of the equation
≥ multiply the constraints by -1 and add the slack variable S at the left
side of the equation
2. Enter the numerical coefficients and variables in the simplex table.

Cj Objective Function’s Numerical Coefficients

Prod Qty Objective Function’s Literal Coefficients
Constraints’ numerical coefficients

Zj
Cj - Zj
where: Cj = profit per unit
Zj = gross profit
Cj - Zj = net profit
3. Calculate the Cj and Zj values.
Zj = Σ[Cj (Constraints’ numerical coefficients)]
Cj - Zj = (Objective Function’s Numerical Coefficients )Zj
4. Determine the optimum column and entering variable by choosing the
most positive value in the Cj – Zj row.
5. Divide the quantity-column values by the non-zero and non-negative
entries in the optimum column. The smallest quotient belongs to the pivotal
row.
6. Compute the values for the replacing row by dividing all entries by the
pivot. Enter the result in the next table.
Replacing row = pivotal row entries / pivot
7. Compute the new entries for the remaining rows by reducing the optimum
column entries to zero (entries in the constraint rows).
Remaining row = old row entry – entry below/above pivot x
replacing row entries
8. Calculate Cj and Zj values. Compute also for Cj – Zj row.
9. If there is a positive entry in the C j – Zj row, return to step 4. The final
solution is obtained if there is no positive value in the C j – Zj row.

Example1:

Solution: New LP Model

O.F. Maximize Z = 2x1 – x2 + 2x3 + 0s1 + 0s2 + 0s3
Subject to: 2x1 + x2 + s1 = 10
x1 + 2x2 - 2x3 + s2 = 20

x2 + 2x3 + s3 = 5

x1 , x2 , x3 , s1 , s2 , s3 ≥ 0
 Initial Table
Cj 2 -1 2 0 0 0
Prod Qty x1 x2 x3 s1 s2 s3
0 s1 10 2 1 0 1 0 0
0 s2 20 1 2 -2 0 1 0
0 s3 5 0 1 2 0 0 1
Zj 0 0 0 0 0 0
Cj - Zj 2 -1 2 0 0 0

Table II
Cj 2 -1 2 0 0 0
Prod Qty x1 x2 x3 s1 s2 s3
0 s1 10 2 1 0 1 0 0 10/2 = 5
0 s2 25 1 3 0 0 1 1 25/1 = 25
2 x3 5/2 0 1/2 1 0 0 1/2
Zj 0 1 2 0 0 1
Cj - Zj 2 -2 0 0 0 -1

Remaining row = old row entry – entry below/above pivot x

replacing row entries
S1 row = 10 - 0(5/2) = 10
2 - 0(0) = 2
1 - 0(1/2) = 1
0 - 0(1) = 0
1 - 0(0) = 1
0 - 0(0) = 0
0 - o(1/2) = 0
S2 row = 20 - (-2)(5/2) = 25
1 - (-2) (0) = 1
2 - (-2) (1/2) = 3
-2 - (-2) (1) = 0
 0 - (-2) (0) = 0
1 - (-2) (0) = 1
0 - (-2) (1/2) = 1

Table III
Cj 2 -1 2 0 0 0
Prod Qty x1 x2 x3 s1 s2 s3
2 x1 5 1 1/2 0 1/2 0 0
0 s2 20 0 5/2 0 -1/2 1 1
2 x3 5/2 0 1/2 1 0 0 1/2
Zj 15 2 2 2 1 0 1
Cj - Zj 0 -3 0 -1 0 -1

S2 row = 25 - (1)(5) = 20
1 - (1) (1) = 0
3 - (1) (1/2) = 5/2
0 - (1) (0) = 0
0 - (1) (1/2) = -1/2
1 - (1) (0) = 1
1 - (1) (0) = 1
Decision: x1 = 5
x2 = 0
x3 = 5/2
Max Z = 15
Example 2.

Solution:
New LP Model:O.F. Maximize Z = 11x1 + 16x2 + 15x3 + 0s1 + 0s2 + 0s3
Subject to: x1 + 2x2 + 3/2x3 + s1 = 12,000
2/3x1 + 2/3x2 + x3 + s2 = 4,600
1/2x1 + 1/3x2 + 1/2x3 + s3 = 2,400
x1 , x2 , x3 , s1 , s2 , s3 ≥ 0

Initial table:
Cj 11 16 15 0 0 0
Prod Qty x1 x2 x3 s1 s2 s3
0 s1 12,000 1 2 3/2 1 0 0 12,000/2 = 6,000
0 s2 4,600 2/3 2/3 1 0 1 0 4,600/(2/3) = 6,900
0 s3 2,400 1/2 1/3 1/2 0 0 1 2,400/(1/3) = 7,200
Zj 0 0 0 0 0 0 0
 Cj - Zj 11 16 15 0 0 0

Optimum column = x2 column entering variable = x2 pivot = 2

Pivotal row = s1 row outgoing variable = s1
Replacing row = ( 12000 1 2 3/2 1 0 0)/2
= 6000 1/2 1 3/4 1/2 0 0

Remaining row (s2) = 4,600 - 2/3(6000) = 600

2/3 - 2/3(1/2) = 1/3
2/3 - 2/3(1) = 0
1 - 2/3(3/4) = 1/2
0 - 2/3(1/2) = -1/3
1 - 2/3(0) = 1
0 - 2/3(0) = 0

Remaining row (s3) = 2400 - 1/3(6000) = 400

1/2 - 1/3(1/2) = 2/3
1/3 - 1/3(1) = 0
1/2 - 1/3(3/4) = 1/4
0 - 1/3(1/2) = -1/6
0 - 1/3(0) = 0
1 - 1/3(0) = 1

Table II
Cj 11 16 15 0 0 0
Prod Qty x1 x2 x3 s1 s2 s3
16 X2 6,000 1/2 1 3/4 1/2 0 0 6,000/(3/4) = 8,000
0 s2 600 1/3 0 1/2 -1/3 1 0 600/(1/2) = 1,200
0 s3 400 2/3 0 1/4 -1/6 0 1 400/(1/4) = 1,600
Zj 96,000 8 16 12 8 0 0
Cj - Zj 3 0 3 -8 0 0

Optimum column = x3 column entering variable = x3 pivot = 1/2

Pivotal row = s2 row outgoing variable = s2
Replacing row = ( 600 1/3 0 1/2 -1/3 1 0)/(1/2)
= 1200 2/3 0 1 -2/3 2 0
 Remaining row (x2) = 6000 - 3/4(1200) = 5,100
1/2 - 3/4 (2/3) = 0
1 - 3/4 (0) = 1
3/4 - 3/4 (1) = 0
1/2 - 3/4 (-2/3) = 1
0 - 3/4 (2) = -3/2
0 - 3/4 (0) = 0

Remaining row (s3) = 400 - 1/4(1200) = 100

2/3 - 1/4(2/3) = 1/6
0 - 1/4(0) = 0
1/4 - 1/4(1) = 0
-1/6 - 1/4(-3/2) = 0
0 - 1/4(2) = -1/2
1 - 1/4(0) = 1
Table III
Cj 11 16 15 0 0 0
Prod Qty x1 x2 x3 s1 s2 s3
16 X2 5,100 0 1 0 1 -3/2 0
15 x3 1,200 2/3 0 1 -2/3 2 0 1200/(2/3) = 800
0 s3 100 1/6 0 0 0 -1/2 1 100/(1/6) = 50/3
Zj 99,60 10 16 15 6 6 0
0
Cj - Zj 1 0 0 -6 -6 0

Optimum column = x1 column entering variable = x1 pivot = 1/6

Pivotal row = s3 row outgoing variable = s3
Replacing row = ( 100 1/6 0 0 0 -1/2 1)/(1/6)
= 600 1 0 0 0 -3 6
Remaining row (x3) = 1200 - 2/3(600) = 800
2/3 - 2/3(1) = 0
0 - 2/3 (0) = 0
1 - 2/3 (0) = 1
-2/3 - 2/3 (0) = -2/3
2 - 2/3 (-3) = 4
0 - 2/3 (6) = -4
Table IV
Cj 11 16 15 0 0 0
Prod Qty x1 x2 x3 s1 s2 s3
16 X2 5,100 0 1 0 1 -3/2 0
15 x3 800 0 0 1 -2/3 4 -4
 11 x1 600 1 0 0 0 -3 6
Zj 100,200 11 16 15 6 36 6
Cj - Zj 0 0 0 -6 -36 -6

Since there are no more positive entries in the last row, the table is now
optimum. Hence, Decision: x1 = 600, x2 = 5,100, x3 = 800; Max Z = 100,200

Generalization
Let us now summarize our lesson today by answering the following guide questions:
1. What is linear programming by simplex maximization?
2. What are the steps in simplex maximization method?

References

Render, Barry, Stair, Ralph Jr. and Hanna, Michael, Quantitative Analysis for
Management: Global Edition,11th Edition Pearson Education Inc, 2012

Hillier, Frederick and Lieberman, Gerald. Introduction to Operations Research. 7 th

edition, McGraw-Hill Co. Inc.2001

Wayne, Winston. Operations Research: Applications and Algorithms. 4 th edition, 2003