LINEAR PROGRAMMING

Simplex method - the Simplex algorithm for solving linear programming problems, a repetitive optimizing technique,
was developed around 50 years ago by George B. Dantzig of Standford University. It is a method that can be used to
maximize or minimize the value problems, especially when a large number of variables or constraints are present.

Simplex method: Maximization problems in standard form

Condition 1. All variables are non-negative.

Condition 2. All other constraints are written as linear expressions that is less than or equal to positive constant.

To apply the simplex method to a maximum problem, two steps are followed.

1. Introduce a slack variable.

Slack variable- a non-negative variable representing the difference between the left and right sides of the inequality. It
also signifies the unused quantity of the constraint.

2. Construct an initial simplex tableau.

In constructing an initial simplex tableau, a table containing the symbols of the variables in each column must first be
made. The objective function and the constraints must be placed together with their corresponding coefficients. The
first row in the tableau represents the objective function and its coefficient. The remaining rows represent the
constraints and their coefficients. The objective row is separated from the constraint by a horizontal line.

A variable that contains a numerical coefficient of 1 and 0 is called a basic variable and is denoted by BV. The number to
the right-hand side of the objective function and the constraint is also denoted as RHS.

Once initial simplex tableau is constructed, a pivoting operation must be performed. T pivot a matrix about a given
element, called the pivot element

Example:

The LPO Furniture makes two products- tables and

chairs which must be processed through their
assembly and finishing departments. The assembly
department is available for 60 hours in every
production period while the finishing department is
available for 48 hours of work. Manufacturing 1
table requires 4 hours in the assembly department
and 2 hours in the finishing department. A chair
takes 2 hours to assemble and 4 hours to finish. A
table is worth Php80 while a chair is Php60.
Determine the number of tables and chairs to
maximize the profit per production process.

Step 1. State the objective function.

Maximize: 𝑷=80𝒙_𝟏+60𝒙_𝟐

Subject to : (constraints)

4𝒙_𝟏+2𝒙_𝟐≤𝟔𝟎 or 〖𝟐𝒙〗_𝟏+𝒙_𝟐≤𝟑𝟎

2𝒙_𝟏+4𝒙_𝟐≤𝟒𝟖 or 𝒙_𝟏+〖𝟐𝒙〗_𝟐≤𝟐𝟒

𝒙_𝟏≥𝟎;𝒙_𝟐≥𝟎

Step 2. Introduce slack variable ( 𝑺_𝟏and 𝑺_𝟐, since there are only two constraints) and write the constraints in
equation form.

〖𝟐𝒙〗_𝟏+𝒙_𝟐+𝑺_𝟏=𝟑𝟎

𝒙_𝟏+〖𝟐𝒙〗_𝟐+𝑺_𝟐=𝟐𝟒

𝒙_𝟏≥𝟎;𝒙_𝟐≥𝟎

𝑺_𝟏≥𝟎;𝑺_𝟐≥𝟎
Step 3. Write the objective function in the equation form.

𝑷−80𝒙_𝟏−60𝒙_𝟐=𝟎

Step 4. Construct an initial simplex tableau

Step 5. Perform pivoting operations.

The first step is to find the pivot element. Find the smallest value in the objective row. The column it belongs to is the
pivot column. Divide the values in the RHS by the corresponding value in the pivot column. Whichever value gives the
smallest quotient is the pivot element. The smallest value in the objective row above is -80, so the column 𝒙_𝟏 is the
pivot column. The quotient of RHS and the positive entries in the pivot column are 30/2= 15 and 24/1=24. The smallest
between the two is 15; therefore, the pivot row is
𝑺_𝟏 and the pivot element is 2.

Next is taking the pivot row (𝑹_(𝟐)) and transforming the pivot element into 1 using 𝑹_𝟐=𝟏/𝟐 𝒓_(𝟐)).

𝑹_𝟐=𝟏/𝟐 [𝟎 𝟐 𝟏 𝟏 𝟎 𝟑𝟎 ]=[𝟎 𝟏 𝟏/𝟐 𝟏/𝟐 𝟎 𝟏𝟓 ]

Next is to pivot 𝑹_𝟏 and 𝑹_𝟑, to make the values in the pivot column 0’s. For 𝑹_𝟑=𝒓_𝟑−𝒓_𝟐

𝒓_𝟑 → 0 1 2 0 1 24

𝒓_𝟐→ 0 1 ½ ½ 0 15

𝑹_𝟑 → 0 0 3/2 -1/2 1 9

For 𝑹_𝟏, the operation is 𝑹_𝟏=𝒓_𝟏+𝟖𝟎𝒓_𝟐

𝒓_𝟏 → 1 -80 -60 0 1 0

𝟖𝟎𝒓_𝟐→ 80(0) 80(1) 80(½) 80(½) 80(0) 80(15)

𝑹_𝟏 → 1 0 -20 40 1 1200

Replacing all previous rows

with the derived ones results
in:
Pivoting in the first constraints is now done. Since there is still a negative value in the objective row, continue pivoting
until the values in the objective row are all non-negative. In the last table, the pivot column is 𝒙_𝟐, the pivot row is 𝑺_𝟐
and the pivot element is 3/2 . Applying the row operation again for 𝑹_𝟑=𝟐/𝟑 𝒓_𝟑 , gives the following data:

𝑹_𝟑=𝟐/𝟑 [𝟎 𝟎 𝟑/𝟐 −𝟏/𝟐 𝟏 𝟗 ]=[𝟎 𝟎 𝟏 −𝟏/𝟑 𝟐/𝟑 𝟔 ]

For 𝑹_𝟐=𝒓_𝟐−𝟏/𝟐 𝒓_𝟑

𝒓_𝟐 → 0 1 ½ ½ 0 15

-〖𝟏/𝟐 𝒓〗_𝟑→ ½ (0) ½ (0) ½ (1) ½ (-1/3 ) ½ (2/3) ½ (6)

𝑹_𝟐 → 0 1 0 2/3 -1/3 12

For 𝑹_𝟏, the operation is 𝑹_𝟏=𝒓_𝟏+𝟐𝟎𝒓_𝟑

𝒓_𝟏 → 1 0 -20 40 0 1200

+𝟐𝟎𝒓_𝟑→ 20(0) 20(0) 20(1) 20(-1/3) 20(2/3) 20(6)

𝑹_𝟏 → 1 0 0 100/3 40/3 1320

Since the objective row in table 3 is composed of non-negative numbers, then the tableau is final.

Decision:

The value 𝒙_𝟏 is 12 and 𝒙_𝟐is 6. Therefore, the maximum profit per production is Php1, 320.00