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PROGRAMMING:
SIMPLEX METHOD
BA31 Quantitative Techniques in Business
Simplex Method
• Simplex method is an approach to solving linear
programming models by hand using slack variables,
tableaus, and pivot variables as a means to finding
the optimal solution of an optimization problem.
Simplex tableau is used to perform row operations
on the linear programming model as well as for
checking optimality.
Sample Problem
My Furniture makes two products: book shelves worth
PhP5,000.00 and cabinets worth PhP8,000.00. The direct cost
per unit is PhP3,000.00 and PhP4,000.00, respectively. The
company has no difficulty in selling all the product it can
manufacture. The assembly department has 60 hours available
per week. The finishing department can handle up to 48 hours
of work per week. Manufacturing one book shelf requires 4
hours in assembling and 2 hours in finishing. Each cabinet
requires 2 hours in assembly and 4 hours in finishing. How can
management allocate the limited man-hour of the two
departments in a way which will secure the largest possible net
return?
Step 1. Write the given
P= 5000x + 8000y
x y s t P C
4 2 1 0 0 60
2 4 0 1 0 48
-5000 -8000 0 0 1 0
Step 6. Find the pivot column
x y s t P C
4 2 1 0 0 60
2 4 0 1 0 48
-5000 -8000 0 0 1 0
x y s t P C
4 2 1 0 0 60 60/4 = 15
2 4 0 1 0 48 48/2= 24
-5000 -8000 0 0 1 0
x y s t P C
2 1 0.5 0 0 30
Step 9. Make all under the pivot element
equivalent to 0
x y s t P C Formulas
4 2 1 0 0 60 1/2R1
2 4 0 1 0 48 R2-4R1
-5000 -8000 0 0 1 0 R3+8000R1
x y s t P C
2 1 0.5 0 0 30
-6 0 -2 1 0 -72
11000 0 4000 0 1 240000
Step 10. Find the column with most number at
the bottom row and repeat steps 6, 7, 8, and 9.
x y s t P C
2 1 0.5 0 0 30 30/2 = 15
-6 0 -2 1 0 -72 -72/-6= 12
11000 0 4000 0 1 240000
Step 10. Find the column with most number at
the bottom row and repeat steps 6, 7, 8, and 9.
x y s t P C Formulas
2 1 0.5 0 0 30 R1-2R2
-6 0 -2 1 0 -72 -1/6R2
11000 0 4000 0 1 240000 R3+(-11000R2)
x y s t P C
0 1 -1/6 1/3 0 6
1 0 1/3 -1/6 0 12
0 0 333 1/3 1833 1/3 1 108000
Additional resources:
• https://youtu.be/fk0eIRbd4e0
• https://youtu.be/V-8U7Oqa1YI
• https://www.math.wsu.edu/students/odykhovychnyi/M201-
04/Ch06_1-2_Simplex_Method.pdf