Simplex Method: Examples of Changing Inequalities to Equalities

The purpose of the simplex method is to find the optimal solution to LP problems in a
systematic and efficient manner.

Differences between graphical and simplex methods:

 Graphical method can be used only when two variables are in model; simplex
can handle any dimensions.
 Graphical method must evaluate all corner points (if the corner point method is
used); simplex checks a lesser number of corners.
 Simplex method can be automated and computerized. Simplex method involves
use of surplus, slack, and artificial variables.

Similarities:
 Both methods find the optimal solution at a corner point.
 Both methods require a feasible region and the same problem structure, that is,
objective function and constraints.
The graphical method is preferable when the problem has two variables and only two
or three constraints (and when no computer is available).

Slack Variables: Slack variables have an important physical interpretation and

represent a valuable commodity, such as unused labour, machine time, money,
space, and so forth.

Slack variables:
Slack variables convert  constraints into equalities. They represent a quantity of
unused resource and have a zero coefficient in the objective function.

Surplus variables:
Surplus variables convert  constraints into equalities and represent a resource
usage above the minimum required. They, too, have a zero coefficient in the
objective function.
Artificial variables:
Artificial variables have no physical meaning but are used with the constraints that
are = or . They carry a high coefficient, so they are quickly removed from the initial
solution.

Examples of converting inequalities to equalities:

1. Consider the following LP problem:

Maximize earnings =0.80X1 + 0.40X2 + 1.20X3 - 0.10X4
subject to
X1 + 2X2 + X3 + 5X4 ≤ 150
X2 - 4X3 + 8X4 = 70
6X1 + 7X2 + 2X3 - X4  120
X1, X2, X3, X4 0

Convert these constraints and objective function to the proper form for use in the
simplex method.

Solution:

Maximize earnings = 0.8X1 + 0.4X2 + 1.2X3 – 0.1X4 + 0S1 + 0S2 – MA1 – MA2
subject to
X1 + 2X2 + X3 + 5X4 + S1 + 0S2 + 0A1 + 0A2 = 150
0X1 +X2 – 4X3 + 8X4 + 0S1 + 0S2 + A1 + 0A2 = 70
6X1 + 7X2 + 2X3 – X4 + 0S1 – S2 + 0A1 + A2 = 120

2. A pharmaceutical firm is about to begin production of three new drugs. An

objective function designed to minimize ingredient costs and three production
constraints are as follows:

Minimize cost = 50X1 + 10X2 + 75X3

 Subject to X1 - X2 =1,000
2X2 + 2X3 = 2,000
X1 ≤ 1,500
X1, X2, X3  0
Convert the above constraints and objective function to the proper form for use in the
simplex method.

Solution:

Minimum cost = 50X1 + 10X2 + 75X3 + 0S1 + MA1 + MA2

subject to
1X1 – 1X2 + 0X3 + 0S1 + 1A1 + 0A2 = 1,000
0X1 + 2X2 + 2X3 + 0S1 + 0A1 + 1A2 = 2,000
1X1 + 0X2 + 0X3 + 1S1 + 0A1 + 0A2 = 1,500

3. Convert the following constraints and objective function into the proper form for
use in the simplex method.
Objective Function: Minimize cost = 4X1+ 1X2
Subject to the constraints: 3X1 + 1X2 =3
4X1 + 3X2  6
1X1 + 2X2 ≤3
Solution

Minimize cost = 4X1+ 1X2+ 0S1+ 0S2+ MA1+ MA2

Subject to: 3X1 + 1X2 + 1A1 = 3
4X1 + 3X2 – 1S1 + 1A2 = 6
1X1 + 2X2 + 1S2 = 3

4. Set up the initial steps in the simplex method, given the following two constraints
and objective function:
Minimize Z = 8X1 + 6X2
 Subject to: 2X1 + 4X2  8
3X1 + 2X2  6
Solution

The constraints and objective function may be rewritten as:

Minimize Z = 8X1 + 6X2 + 0S1 + 0S2 + MA1 + MA2

Subject to: 2X1 + 4X2 - 1S1 + 0S2 + 1A1 + 0A2 = 8
3X1 + 2X2 + 0S1 – 1S2 + 0A1 + 1A2 = 6