Introduction To Management Science

Introduction to
Management Science
with Spreadsheets
Stevenson and Ozgur
First Edition
Part 2 Deterministic Decision Models
Chapter 4 Supplement
Linear Programming:
The Simplex Method
McGraw-Hill/Irwin Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved.
Learning Objectives
After completing this chapter, you should be able to:
1. Explain the ways in which the simplex method is

superior to the graphical method for solving linear
programming problems.
2. Solve small maximization problems manually using
the simplex method.
3. Interpret simplex solutions.
4. Convert = and > constraints into standard form.
5. Solve maximization problems that have mixed
constraints and interpret those solutions.
Copyright © 2007 The McGraw-Hill Companies. All rights reserved. McGraw-Hill/Irwin 4S–2
Learning Objectives (cont’d)
After completing this chapter, you should be able to:
6. Solve minimization problems and interpret those

solutions.
7. Discuss unbound solutions, degeneracy, and
multiple optimal solutions in terms of the simplex
method and recognize infeasibility in a simplex
solution.
Overview
Overview of
of the
the Simplex
Simplex Method
Method
• Advantages and Characteristics
– More realistic approach as it is not limited to problems
with two decision variables
– Systematically examines basic feasible solutions for an
optimal solution.
– Based on the solutions of linear equations (equalities)
using slack variables to achieve equality.
• Rule
– Linear programming models have fewer equations than
variables; unless the number of equations equals the
number of variables, a unique solution cannot be found.
Developing
Developing the
the Initial
Initial Simplex
Simplex Tableau
Tableau
• Notation used in the simplex tableau:
Figure
Figure4S–1
4S–1 Comparison
Comparisonof
ofServer
ServerModel
Modeland
andGeneral
GeneralSimplex
SimplexNotation
Notation
Table
Table4S–1
4S–1 Comparison
ComparisonofofServer
ServerModel
Modeland
andGeneral
GeneralSimplex
SimplexNotation
Notation(cont’d)
(cont’d)
Table
Table4S–2
4S–2 Completed
CompletedInitial
InitialTableau
Tableaufor
forthe
theServer
ServerProblem
Problem
Unit Vector
Each tableau represents a basic feasible solution to the problem.

A simplex solution in a maximization problem is optimal if the C–Z row
consists entirely of zeros and negative numbers (i.e., there are no positive
values in the bottom row). When this has been achieved, there is no
opportunity for improving the solution.
Table
Table4S–3
4S–3 Determining
Determiningthe
theEntering
Enteringand
andExiting
ExitingVariables
Variables
Select the leaving variable as the one that has the smallest
nonnegative ratio of quantity divided by substitution rate.
Figure
Figure4S–2
4S–2 The
TheNext
NextCorner
CornerPoint
PointIsIsDetermined
Determinedby
bythe
theMost
MostLimiting
Limiting
Constraint
Constraint
Table
Table4S–4
4S–4 Starting
Startingthe
theSecond
SecondTableau
Tableau
Table
Table4S–5
4S–5 Initial
InitialTableau
Tableau
Table
Table4S–6
4S–6 The
ThePivot
PivotRow
Rowofofthe
theSecond
SecondTableau
Tableau
Table
Table4S–7
4S–7 Revised
RevisedFirst
FirstRow
Rowand
andPivot
PivotRow
Rowof
ofthe
theSecond
SecondTableau
Tableau
Table
Table4S–8
4S–8 Partially
PartiallyCompleted
CompletedSecond
SecondTableau
Tableau
Table
Table4S–9
4S–9 Completed
CompletedSecond
SecondTableau
Tableau
Interpreting the Second Tableau

At this point, variables s1, x1, and s3 are in solution. Not only are
they listed in the basis, they also have a 0 in row C – Z. The
solution at this point is s1 = 56, x1 = 11, and s3 = 6.
Note, too, that x2 and s2 are not in solution. Hence, they are each
equal to zero. The profit at this point is $660, which is read in the
Quantity column in row Z. Also, note that each variable in
solution has a unit vector in its column.
Table
Table4S–10
4S–10 Determining
Determiningthe
theExiting
ExitingVariable
Variable
Figure
Figure4S–3
4S–3 Moving
Movingto
tothe
theNext
NextCorner
CornerPoint
Point
Table
Table4S–11
4S–11 Pivot
PivotRow
RowValues
Valuesfor
forthe
theThird
ThirdTableau
Tableau
Table
Table4S–12
4S–12 Partially
PartiallyCompleted
CompletedThird
ThirdTableau
Tableau
Table
Table4S–13
4S–13 Completed
CompletedThird
ThirdTableau
Tableau
Interpreting the Third Tableau

In this tableau, all of the values in the bottom row are either negative
or zero, indicating that no additional potential for improvement exists.
Hence, this tableau contains the optimal simplex solution, which is
s1 = 24
x1 = 9
x2 = 4
Summary
Summary of
of the
the Simplex
Simplex Procedure
Procedure for
for aa
Maximization
Maximization Problem
Problem
• Initial Tableau
1. Write each constraint so that all variables are on the left side
and a nonnegative constant is on the right. Then add a slack
variable to the left side, thereby making it an equality.
2. Develop the initial tableau.
1. List the variables across the top of the table and write the
objective function coefficient of each variable just above it.
2. There should be one row in the body of the table for each
constraint. List slack variables in the basis column, one per row.
3. In the C column, enter the objective function coefficient of 0 for
each slack variable.
4. Compute values for row Z.
5. Compute values for row C – Z.
Summary
Summary of
of the
the Simplex
Simplex Procedure
Procedure for
for aa
Maximization
Problem (cont’d)
(cont’d)
• Subsequent Tableaus
1. Identify the variable with the largest positive value in row C – Z. This
variable will come into solution next.
2. Using the constraint coefficients in the entering variable’s column,
divide each one into the corresponding Quantity column value. The
smallest nonnegative ratio that results indicates which variable will
leave the solution mix.
3. Compute replacement values for the leaving variable: Divide each
element in the row by the row element that is in the entering variable
column. These are the pivot row values for the next tableau. Enter
them in the same row as the leaving variable and label the row with the
name of the entering variable. Write the entering variable’s objective
function coefficient next to it in column C.
Summary
Summary of
of the
the Simplex
Simplex Procedure
Procedure for
for aa
Maximization
Problem (cont’d)
(cont’d)
• Subsequent Tableaus (cont’d)
4. Compute values for each of the other constraint equations:
1. Multiply each of the pivot row values by the number in the entering variable
column of the row being transformed (e.g., for the first row, use the first
number in the entering variable’s column; for the third row, use the third
number in the entering variable’s column).
2. Then subtract the resulting equation from the current equation for that row
and enter the results in the same row of the next tableau.
5. Compute values for row Z: For each column, multiply each row
coefficient by the row value in column C and then add the results. Enter
these in the tableau.
6. 6. Compute values for row C – Z: For each column, subtract the value
in row Z from the objective function coefficient listed in row C at the top
of the tableau.
Summary
Summary of
of the
the Simplex
Simplex Procedure
Procedure for
for aa
Maximization
Problem (cont’d)
(cont’d)
• Subsequent Tableaus (cont’d)
6. Examine the values in the bottom row. If all values are zero or
negative, the optimal solution has been reached. The variables that
comprise the solution are listed in the basis column and their optimal
values can be read in the corresponding rows of the quantity column.
The optimal value of the objective function will appear in row Z in the
Quantity column.
7. If the solution is not optimal, repeat steps 1–7 of this section until the
optimal solution has been attained.
Table
Table4S–14
4S–14 Summary
Summaryof
ofUse
Useof
ofSlack,
Slack,Surplus,
Surplus,and
andArtificial
ArtificialVariables
Variables
Example
Example4S-1
4S-1 Solve
Solvethis
thismaximization
maximizationproblem
problemusing
usingthe
thesimplex
simplex
approach:
approach:
Figure
Figure4S–4
4S–4 Graph
Graphfor
forExample
Example4S-1
4S-1
Table
Table4S–15
4S–15 Initial
InitialTableau
Tableaufor
forExample
Example4S-1
4S-1
Table
Table4S–16
4S–16 The
TheSecond
SecondTableau
Tableaufor
forExample
Example4S-1
4S-1
Table
Table4S–17
4S–17 The
TheThird
ThirdTableau
Tableaufor
forExample
Example4S-1
4S-1
Table
Table4S–18
4S–18 The
TheFinal
FinalTableau
Tableaufor
forExample
Example4S-1
4S-1
Figure
Figure4S–5
4S–5 Sequence
SequenceofofTableaus
Tableausfor
forExample
Example4S-1
4S-1
Example
Example4S-2
4S-2 Solve
Solvethis
thisminimization
minimizationproblem
problemusing
usingthe
thesimplex
simplexmethod:
method:
Figure
Figure4S–6
4S–6 Graph
Graphof
ofthe
theProblem
ProblemininExample
Example4S-2
4S-2
Table
Table4S–19
4S–19 Initial
InitialTableau
Tableaufor
forExample
Example4S-2
4S-2
Table
Table4S–20
4S–20 Second
SecondTableau
Tableaufor
forExample
Example4S-2
4S-2
Table
Table4S–21
4S–21 Third
ThirdTableau
Tableaufor
forExample
Example4S-2
4S-2
Figure
Figure4S–7
4S–7 Sequence
SequenceofofTableaus
Tableausfor
forSolution
Solutionof
ofExample
Example4S-2
4S-2
Some
Some Special
Special Issues
Issues
• Unbounded Solutions
– A solution is unbounded if the objective function can
be improved without limit.
– An unbounded solution will exist if there are no
positive values in the pivot column.
• Degeneracy
– A conditions that occurs when there is a tie for the
lowest nonnegative ratio which, theoretically, makes it
possible for subsequent solutions to cycle (i.e., to
return to previous solutions).
Example
Example4S
4S––33
Table
Table4S–22
4S–22 Second
SecondTableau
Tableau
Table
Table4S–23
4S–23 Final
FinalSimplex
SimplexTableau
Tableau
Some
Some Special
Special Issues
Issues (cont’d)
(cont’d)
• Multiple Optimal Solutions
– Occur when the same maximum value of the objective
function might be possible with a number of different
combinations of values of the decision variables
because the objective function is parallel to a binding
constraint.
Table
Table4S–24
4S–24 Final
FinalTableau
Tableaufor
forModified
ModifiedServer
ServerProblem
Problemwith
withan
an
Alternative
AlternativeOptimal
OptimalSolution
Solution
Table
Table4S–25
4S–25 The
TheAlternate
AlternateOptimal
OptimalSolution
Solutionfor
forthe
theModified
Modified
Server
ServerProblem
Problem
Some
Some Special
Special Issues
Issues (cont’d)
(cont’d)
• Infeasibility
– A problem in which no combination of decision and
slack/surplus variables will simultaneously satisfy all
constraints.
– Can be the result of an error in formulating a problem
or it can be because the existing set of constraints is
too restrictive to permit a solution.
– Recognized by the presence of an artificial variable in
a solution that appears optimal (i.e., a tableau in which
the signs of the values in row C – Z indicate
optimality), and it has a nonzero quantity.
Table
Table4S–26
4S–26 Simplex
SimplexTableaus
Tableausfor
forInfeasibility
InfeasibilityProblem
Problemfor
forExample
Example4S-4
4S-4
Example
Example4S
4S––44

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Introduction to

Part 2 Deterministic Decision Models

After completing this chapter, you should be able to:

1. Explain the ways in which the simplex method is

After completing this chapter, you should be able to:

6. Solve minimization problems and interpret those

Each tableau represents a basic feasible solution to the problem.

Interpreting the Second Tableau

Interpreting the Third Tableau

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