Z06_TAYL4367_10_SE_Mod A.

QXD 1/9/09 1:07 AM Page A-1

Module A
The Simplex
Solution Method

A-1
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A-2 Module A The Simplex Solution Method

he simplex method is a general mathematical solution technique for solving linear pro-
T gramming problems. In the simplex method, the model is put into the form of a table,
and then a number of mathematical steps are performed on the table. These mathematical
steps in effect replicate the process in graphical analysis of moving from one extreme
point on the solution boundary to another. However, unlike the graphical method, in
which we could simply search through all the solution points to find the best one, the sim-
plex method moves from one better solution to another until the best one is found, and
then it stops.
The manual solution of a linear programming model using the simplex method can
be a lengthy and tedious process.Years ago, manual application of the simplex method
was the only means for solving a linear programming problem. Now computer solution
is certainly preferred. However, knowledge of the simplex method can greatly enhance
one’s understanding of linear programming. Computer software programs like QM
for Windows or Excel spreadsheets provide solutions to linear programming problems,
but they do not convey an in-depth understanding of how those solutions are derived. To
a certain extent, graphical analysis provides an understanding of the solution process,
and knowledge of the simplex method further expands on that understanding. In fact,
computer solutions are usually derived using the simplex method. As a result, much of
the terminology and notation used in computer software comes from the simplex
method. Thus, for those students of management science who desire a more in-depth
knowledge of linear programming, it is beneficial to study the simplex solution method
as provided here.

Converting the Model into Standard Form

The first step in solving a linear programming model manually with the simplex method is
to convert the model into standard form. At the Beaver Creek Pottery Company Native
American artisans produce bowls (x1) and mugs (x2) from labor and clay. The linear pro-
gramming model is formulated as

maximize Z = $40x1 + 50x2 (profit)

subject to

x1 + 2x2 … 40 (labor, hr.)

4x1 + 3x2 … 120 (clay, lb.)
x1, x2 Ú 0
We convert this model into standard form by adding slack variables to each constraint as
follows:
maximize Z = 40x1 + 50x2 + 0s1 + 0s2

subject to

x1 + 2x2 + s1 = 40
4x1 + 3x2 + s2 = 120
x1, x2, s1, s2 Ú 0
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Converting the Model into Standard Form A-3

Slack variables are added to … The slack variables, s1 and s2, represent the amount of unused labor and clay, respectively.
constraints and represent For example, if no bowls and mugs are produced, and x1 = 0 and x2 = 0, then the solution
unused resources. to the problem is

x1 + 2x2 + s1 = 40
0 + 2(0) + s1 = 40
s1 = 40 hr. of labor

and

4x1 + 3x2 + s2 = 120

4(0) + 3(0) + s2 = 120
s2 = 120 lb. of clay

In other words, when we start the problem and nothing is being produced, all the
resources are unused. Since unused resources contribute nothing to profit, the profit is
zero:

Z = $40x1 + 50x2 + 0s1 + 0s2

= 40(0) + 50(0) + 0(40) + 0(120)
Z = $0

It is at this point that we begin to apply the simplex method. The model is in the
required form, with the inequality constraints converted to equations for solution with the
simplex method.

The Solution of Simultaneous Equations

Once both model constraints have been transformed into equations, the equations should
be solved simultaneously to determine the values of the variables at every possible solu-
tion point. However, notice that our example problem has two equations and four
unknowns (i.e., two decision variables and two slack variables), a situation that makes
direct simultaneous solution impossible. The simplex method alleviates this problem by
assigning some of the variables a value of zero. The number of variables assigned values of
zero is n - m, where n equals the number of variables and m equals the number of con-
straints (excluding the nonnegativity constraints). For this model, n = 4 variables and
m = 2 constraints; therefore, two of the variables are assigned a value of zero (i.e.,
4 - 2 = 2).
For example, letting x1 = 0 and s1 = 0 results in the following set of equations:
x1 + 2x2 + s1 = 40
4x1 + 3x2 + s2 = 120
and
0 + 2x2 + 0 = 40
0 + 3x2 + s2 = 120
First, solve for x2 in the first equation:
2x2 = 40
x2 = 20
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A-4 Module A The Simplex Solution Method

Then, solve for s2 in the second equation:

3x2 + s2 = 120
3(20) + s2 = 120
s2 = 60
This solution corresponds to point A in Figure A-1. The graph in Figure A-1 shows that
at point A, x1 = 0, x2 = 20, s1 = 0, and s2 = 60, the exact solution obtained by solving
A basic feasible solution satisfies simultaneous equations. This solution is referred to as a basic feasible solution. A feasible
the model constraints and has the solution is any solution that satisfies the constraints. A basic feasible solution satisfies the
same number of variables with constraints and contains as many variables with nonnegative values as there are model
nonnegative values as there are
constraints—that is, m variables with nonnegative values and n - m values set equal to
constraints.
zero. Typically, the m variables have positive nonzero solution values; however, when one of
the m variables equals zero, the basic feasible solution is said to be degenerate. (The topic
of degeneracy will be discussed at a later point in this module.)

Figure A-1
Solutions at points A, B, and C x2
4x1 + 3x2 + s2 = 120
40

x1 = 0
30 x2 = 20 x1 = 24
s1 = 0 x2 = 8
s2 = 60 s1 = 0
x1 s2 = 0
20 +2
A x2
+s
1 =4 x1 = 30
0
x2 = 0
10
B s1 = 10
s2 = 0

0
C
10 20 30 40 x1

Consider a second example where x2 = 0 and s2 = 0. These values result in the follow-
ing set of equations:
x1 + 2x2 + s1 = 40
4x1 + 3x2 + s2 = 120
and
x1 + 0 + s1 = 40
4x1 + 0 + 0 = 120
Solve for x1:
4x1 = 120
x1 = 30
Then solve for s1:
30 + s1 = 40
s1 = 10
This basic feasible solution corresponds to point C in Figure A-1, where x1 = 30,
x2 = 0, s1 = 10, and s2 = 0.
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The Simplex Method A-5

Finally, consider an example where s1 = 0 and s2 = 0. These values result in the follow-
ing set of equations:
x1 + 2x2 + s1 = 40
4x1 + 3x2 + s2 = 120
and
x1 + 2x2 + 0 = 40
4x1 + 3x2 + 0 = 120
Row operations are used to solve These equations can be solved using row operations. In row operations, the equations
simultaneous equations where can be multiplied by constant values and then added or subtracted from each other
equations are multiplied by without changing the values of the decision variables. First, multiply the top equation
constants and added or subtracted
by 4 to get
from each other.
4x1 + 8x2 = 160
and then subtract the second equation:
4x1 + 8x2 = 160
- 4x1 - 3x2 = -120
5x2 = 40
x2 = 8
Next, substitute this value of x2 into either one of the constraints:
x1 + 2(8) = 40
x1 = 24
This solution corresponds to point B on the graph, where x1 = 24, x2 = 8, s1 = 0, and
s2 = 0, which is the optimal solution point.
All three of these example solutions meet our definition of basic feasible solutions.
However, two specific questions are raised by the identification of these solutions.
1. In each example, how was it known which variables to set equal to zero?
2. How is the optimal solution identified?
The answers to both of these questions can be found by using the simplex method. The
simplex method is a set of mathematical steps that determines at each step which variables
should equal zero and when an optimal solution has been reached.

The Simplex Method

The simplex method is a set of The steps of the simplex method are carried out within the framework of a table, or
mathematical steps for solving a simplex tableau. The tableau organizes the model into a form that makes applying the
linear programming problem mathematical steps easier. The Beaver Creek Pottery Company example will be used again
carried out in a table called a
to demonstrate the simplex tableau and method:
simplex tableau.

maximize Z = $40x1 + 50x2 + 0s1 + 0s2

subject to
x1 + 2x2 + s1 = 40 hr.
4x1 + 3x2 + s2 = 120 lb.
x1, x2, s1, s2 Ú 0
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A-6 Module A The Simplex Solution Method

The initial simplex tableau for this model, with the various column and row headings, is
shown in Table A-1.

Table A-1
Basic ____________________________
The Simplex Tableau
cj Variables Quantity x1 x2 s1 s2

____________________________________________________________________
zj ____________________________
cj - zj

The first step in filling in Table A-1 is to record the model variables along the second row
from the top. The two decision variables are listed first, in order of their subscript magni-
tude, followed by the slack variables, also listed in order of their subscript magnitude. This
step produces the row with x1, x2, s1, and s2 in Table A-1.
The basic feasible solution in the The next step is to determine a basic feasible solution. In other words, which two vari-
initial simplex tableau is the origin ables will form the basic feasible solution and which will be assigned a value of zero? Instead
where all decision variables of arbitrarily selecting a point (as we did with points A, B, and C in the previous section),
equal zero. the simplex method selects the origin as the initial basic feasible solution because the values
of the decision variables at the origin are always known in all linear programming prob-
lems. At that point x1 = 0 and x2 = 0; thus, the variables in the basic feasible solution are
s1 and s2:
x1 + 2x2 + s1 = 40
0 + 2(0) + s1 = 40
s1 = 40 hr.
and
4x1 + 3x2 + s2 = 120
4(0) + 3(0) + s2 = 120
s2 = 120 lb.
At the initial basic feasible solution In other words, at the origin, where there is no production, all resources are slack, or
at the origin, only slack variables unused. The variables s1 and s2, which form the initial basic feasible solution, are listed in
have a value greater than zero. Table A-2 under the column “Basic Variables,” and their respective values, 40 and 120, are
listed under the column “Quantity.”

Table A-2
Basic ____________________________
The Basic Feasible Solution
cj Variables Quantity x1 x2 s1 s2

s1 40 ____________________________
s2 120

z1 ____________________________
cj - zj
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The Simplex Method A-7

The quantity column values are The initial simplex tableau always begins with the solution at the origin, where x1 and x2
the solution values for the vari- equal zero. Thus, the basic variables at the origin are the slack variables, s1 and s2. Since the
ables in the basic feasible solution. quantity values in the initial solution always appear as the right-hand-side values of the
constraint equations, they can be read directly from the original constraint equations.
The number of rows in a tableau is The top two rows and bottom two rows are standard for all tableaus; however, the num-
equal to the number of constraints ber of middle rows is equivalent to the number of constraints in the model. For example,
plus four. this problem has two constraints; therefore, it has two middle rows corresponding to s1 and
s2. (Recall that n variables minus m constraints equals the number of variables in the prob-
lem with values of zero. This also means that the number of basic variables with values
other than zero will be equal to m constraints.)
The number of columns in a Similarly, the three columns on the left side of the tableau are standard, and the remain-
tableau is equal to the number of ing columns are equivalent to the number of variables. Since there are four variables in
variables (including slacks, etc.) this model, there are four columns on the right of the tableau, corresponding to x1, x2, s1,
plus three. and s2.
The cj values are the contribution The next step is to fill in the cj values, which are the objective function coefficients, rep-
to profit (or cost) for each resenting the contribution to profit (or cost) for each variable xj or sj in the objective func-
variable. tion. Across the top row the cj values 40, 50, 0, and 0 are inserted for each variable in the
model, as shown in Table A-3.

Table A-3
40 50 0 0
The Simplex Tableau with Basic
cj Values cj Variables Quantity x1 x2 s1 s2

0 s1 40 ____________________________
0 s2 120

zj ____________________________
cj - zj

The values for cj on the left side of the tableau are the contributions to profit of only
those variables in the basic feasible solution, in this case s1 and s2. These values are inserted
at this location in the tableau so that they can be used later to compute the values in the
zj row.
The columns under each variable (i.e., x1, x2, s1, and s2) are filled in with the coefficients
of the decision variables and slack variables in the model constraint equations. The s1 row
represents the first model constraint; thus, the coefficient for x1 is 1, the coefficient for x2 is
2, the coefficient for s1 is 1, and the coefficient for s2 is 0. The values in the s2 row are the
second constraint equation coefficients, 4, 3, 0, and 1, as shown in Table A-4.

Table A-4
40 50 0 0
The Simplex Tableau with Basic
Model Constraint Coefficients cj Variables Quantity x1 x2 s1 s2

0 s1 40 1 2 1 0

0 s2 120 4 3 0 1

zj ____________________________
cj - zj
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A-8 Module A The Simplex Solution Method

This completes the process of filling in the initial simplex tableau. The remaining values
in the zj and cj - zj rows, as well as subsequent tableau values, are computed mathemati-
cally using simplex formulas.
The following list summarizes the steps of the simplex method (for a maximization
model) that have been presented so far:
1. First, transform all inequalities to equations by adding slack variables.
2. Develop a simplex tableau with the number of columns equaling the number of vari-
ables plus three, and the number of rows equaling the number of constraints plus four.
3. Set up table headings that list the model decision variables and slack variables.
4. Insert the initial basic feasible solution, which are the slack variables and their quan-
tity values.
5. Assign cj values for the model variables in the top row and the basic feasible solution
variables on the left side.
6. Insert the model constraint coefficients into the body of the table.

Computing the zj and cj - zj Rows

The zj row values are computed by So far the simplex tableau has been set up using values taken directly from the model. From
multiplying the cj column values this point on the values are determined by computation. First, the values in the zj row are
by the variable column values computed by multiplying each cj column value (on the left side) by each column value
and summing.
under “Quantity,” x1, x2, s1, and s2 and then summing each of these sets of values. The zj
values are shown in Table A-5.

Table A-5
40 50 0 0
The Simplex Tableau with zj Basic
Row Values cj Variables Quantity x1 x2 s1 s2

0 s1 40 1 2 1 0

0 s2 120 4 3 0 1

zj 0 0 0 0 0
cj - zj

For example, the value in the zj row under the quantity column is found as follows:

cj Quantity
0 * 40 = 0
0 * 120 = 0
zq = 0
The value in the zj row under the x1 column is found similarly:
cj x1
0 * 1 = 0
The simplex method works by 0 * 4 = 0
moving from one solution zj = 0
(extreme) point to an adjacent
point until it locates the best All the other zj row values for this tableau will be zero when they are computed using this
solution. formula.
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The Simplex Method A-9

Now the cj - zj row is computed by subtracting the zj row values from the cj (top) row
values. For example, in the x1 column the cj - zj row value is computed as 40 - 0 = 40.
This value as well as other cj - zj values are shown in Table A-6, which is the complete ini-
tial simplex tableau with all values filled in. This tableau represents the solution at the ori-
gin, where x1 = 0, x2 = 0, s1 = 40, and s2 = 120. The profit represented by this solution
(i.e., the Z value) is given in the zj row under the “Quantity” column—0 in Table A-6. This
solution is obviously not optimal because no profit is being made. Thus, we want to move
to a solution point that will give a better solution. In other words, we want to produce either
some bowls (x1) or some mugs (x2). One of the nonbasic variables (i.e., variables not in the
present basic feasible solution) will enter the solution and become basic.

Table A-6
40 50 0 0
The Complete Initial Basic
Simplex Tableau cj Variables Quantity x1 x2 s1 s2

0 s1 40 1 2 1 0

0 s2 120 4 3 0 1

zj 0 0 0 0 0

cj - zj 40 50 0 0

The Entering Nonbasic Variable

As an example, suppose the pottery company decides to produce some bowls. With this deci-
sion x1 will become a basic variable. For every unit of x1 (i.e., each bowl) produced, profit will
be increased by $40 because that is the profit contribution of a bowl. However, when a bowl
(x1) is produced, some previously unused resources will be used. For example, if
x1 = 1
then
x1 + 2x2 + s1 = 40 hr. of labor
1 + 2(0) + s1 = 40
s1 = 39 hr. of labor
and
4x1 + 3x2 + s2 = 120 lb. of clay
4(1) + 3(0) + s2 = 120
s2 = 116 lb. of clay
In the labor constraint we see that with the production of one bowl, the amount of
slack, or unused, labor is decreased by 1 hour. In the clay constraint the amount of slack is
decreased by 4 pounds. Substituting these increases (for x1) and decreases (for slack) into
the objective function gives
cj zj
Z = 40(1) + 50(0) + 0(-1) + 0(-4)
Z = $40
The variable with the largest The first part of this objective function relationship represents the values in the cj row;
positive cj - zj value is the the second part represents the values in the zj row. The function expresses the fact that to
entering variable. produce some bowls, we must give up some of the profit already earned from the items
they replace. In this case the production of bowls replaced only slack, so no profit was lost.
In general, the cj - zj row values represent the net increase per unit of entering a nonbasic
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A-10 Module A The Simplex Solution Method

variable into the basic solution. Naturally, we want to make as much money as possible,
because the objective is to maximize profit. Therefore, we enter the variable that will give
the greatest net increase in profit per unit. From Table A-7, we select variable x2 as the
entering basic variable because it has the greatest net increase in profit per unit, $50—the
highest positive value in the cj - zj row.

Table A-7
40 50 0 0
Selection of the Entering Basic Basic
Variable cj Variables Quantity x1 x2 s1 s2

0 s1 40 1 2 1 0

0 s2 120 4 3 0 1

zj 0 0 0 0 0

cj - zj 40 50 0 0

The pivot column is the column The x2 column, highlighted in Table A-7, is referred to as the pivot column. (The opera-
corresponding to the entering tions used to solve simultaneous equations are often referred to in mathematical terminol-
variable.
ogy as pivot operations.)
The selection of the entering basic variable is also demonstrated by the graph in Figure A-2.
At the origin nothing is produced. In the simplex method we move from one solution point
to an adjacent point (i.e., one variable in the basic feasible solution is replaced with a variable
that was previously zero). In Figure A-2 we can move along either the x1 axis or the x2 axis in
order to seek a better solution. Because an increase in x2 will result in a greater profit, we
choose x2.

Figure A-2
Selection of which item to x2
produce—the entering basic
variable 40
Produce mugs

30

A
20

10 B

0 C
10 20 30 40 x1
Produce bowls

The Leaving Basic Variable

Since each basic feasible solution contains only two variables with nonzero values, one of
the two basic variables present, s1 or s2, will have to leave the solution and become zero.
Since we have decided to produce mugs (x2), we want to produce as many as possible or, in
other words, as many as our resources will allow. First, in the labor constraint we will use all
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The Simplex Method A-11

the labor to make mugs (because no bowls are to be produced, x1 = 0; and because we will
use all the labor possible and s1 = unused labor resources, s1 = 0 also):

1x1 + 2x2 + s1 = 40 hr.

1(0) + 2x2 + 0 = 40
40 hr.
x2 =
2 hr>mug
= 20 mugs
In other words, enough labor is available to produce 20 mugs. Next, perform the same
analysis on the constraint for clay:

4x1 + 3x2 + s2 = 120 lb.

4(0) + 3x2 + 0 = 120
120 lb.
x2 =
3 lb>mug
= 40 mugs
This indicates that there is enough clay to produce 40 mugs. But there is enough labor to pro-
duce only 20 mugs. We are limited to the production of only 20 mugs because we do not have
enough labor to produce any more than that. This analysis is shown graphically in Figure A-3.

Figure A-3
Determination of the basic x2
feasible solution point R
40

30
$50 profit

A
20

10
B

0
C
10 20 30 40 x1
$40 profit

Because we are moving out the x2 axis, we can move from the origin to either point A or
point R. We select point A because it is the most constrained and thus feasible, whereas point
R is infeasible.
The leaving variable is determined This analysis is performed in the simplex method by dividing the quantity values of the
by dividing the quantity values by basic solution variables by the pivot column values. For this tableau,
the pivot column values and
selecting the minimum possible Basic
value or zero. Variables Quantity x2
s1 40 , 2 = 20, the leaving basic variable
s2 120 , 3 = 40
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A-12 Module A The Simplex Solution Method

The leaving basic variable is the variable that corresponds to the minimum nonnegative
quotient, which in this case is 20. (Note that a value of zero would qualify as the minimum
The pivot row is the row quotient and would be the choice for the leaving variable.) Therefore, s1 is the leaving
corresponding to the leaving variable. (At point A in Figure A-3, s1 equals zero because all the labor is used to make the
variable. 20 mugs.) The s1 row, highlighted in Table A-8, is also referred to as the pivot row.

Table A-8
40 50 0 0
Pivot Column, Pivot Row, and Basic
Pivot Number cj Variables Quantity x1 x2 s1 s2

0 s1 40 1 2 1 0

0 s2 120 4 3 0 1

zj 0 0 0 0 0

cj - zj 40 50 0 0

The value of 2 at the intersection of the pivot row and the pivot column is called the
The pivot number is the number pivot number. The pivot number, row, and column are all instrumental in developing the
at the intersection of the pivot next tableau. We are now ready to proceed to the second simplex tableau and a better
column and row. solution.

Developing a New Tableau

Table A-9 shows the second simplex tableau with the new basic feasible solution variables
of x2 and s2 and their corresponding cj values.

Table A-9
40 50 0 0
The Basic Variables and Basic
cj Values for the Second cj Variables Quantity x1 x2 s1 s2
Simplex Tableau
50 x2

0 s2

zj

cj - zj

Computing the new tableau pivot The various row values in the second tableau are computed using several simplex for-
row values. mulas. First, the x2 row, called the new tableau pivot row, is computed by dividing every
value in the pivot row of the first (old) tableau by the pivot number. The formula for these
computations is
old tableau pivot row values
new tableau pivot row values =
pivot number
The new row values are shown in Table A-10.
Computing all remaining row To compute all remaining row values (in this case there is only one other row), another
values. formula is used.
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The Simplex Method A-13

Table A-10
40 50 0 0
Computation of the New Pivot Basic
Row Values cj Variables Quantity x1 x2 s1 s2

50 x2 20 1/2 1 1/2 0

0 s2

zj

cj - zj

corresponding corresponding
new tableau = old tableau - £ coefficients in * new tableau ≥
row values row values pivot column pivot row value

Thus, this formula requires the use of both the old tableau and the new one. The s2 row val-
ues are computed in Table A-11.

Table A-11
Computation of New s2 Corresponding New Tableau New Tableau
Old Tableau - £ Coefficients in * Pivot ≥ = Row Value
Row Values Row Value
Column Pivot Column Row Value

Quantity 120 - (3 * 20) = 60

x1 4 - (3 * 1/2) = 5/2
x2 3 - (3 * 1) = 0
s1 0 - (3 * 1/2) = -3>2
s2 1 - (3 * 0) = 1

These values have been inserted in the simplex tableau in Table A-12.
This solution corresponds to point A in the graph of this model in Figure A-3. The solu-
tion at this point is x1 = 0, x2 = 20, s1 = 0, s2 = 60. In other words, 20 mugs are produced
and 60 pounds of clay are left unused. No bowls are produced and no labor hours remain
unused.

Table A-12
40 50 0 0
The Second Simplex Tableau Basic
with Row Values cj Variables Quantity x1 x2 s1 s2

50 x2 20 1/2 1 1/2 0

0 s2 60 5/2 0 -3/2 1

zj

cj - zj

The second simplex tableau is completed by computing the zj and cj - zj row values the
same way they were computed in the first tableau. The zj row is computed by summing the
products of the cj column and all other column values.
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A-14 Module A The Simplex Solution Method

TIME OUT for George B. Dantzig

After developing the simplex method for solving linear pro- model, the diet problem consisted of 77 unknowns and 9 equa-
gramming problems, George Dantzig needed a good problem tions. It took 9 clerks using hand-operated (mechanical) desk
to test it on. The problem he selected was the “diet problem” calculators 120 man-days to obtain the optimal simplex solu-
formulated in 1945 by Nobel economist George Stigler. This tion: a diet consisting primarily of wheat flour, cabbage, and
problem was to determine an adequate nutritional diet at min- dried navy beans that cost $39.69 per year (in 1939 prices). The
imum cost (which was an important military and civilian issue solution developed by Stigler using his own numerical method
during World War II). Formulated as a linear programming was only 24 cents more than the optimal solution.

Column
Quantity zj = (50)(20) + (0)(60) = 1000
x1 z1 = (50)(1>2) + (0)(5>2) = 25
x2 z2 = (50)(1) + (0)(0) = 50
s1 z3 = (50)(1>2) + (0)(-3>2) = 25
s2 z4 = (50)(0) + (0)(1) = 0

The zj row values and the cj - zj row values are added to the tableau to give the com-
pleted second simplex tableau shown in Table A-13. The value of 1,000 in the zj row is the
value of the objective function (profit) for this basic feasible solution.

Table A-13
40 50 0 0
The Completed Second Basic
Simplex Tableau cj Variables Quantity x1 x2 s1 s2

50 x2 20 1/2 1 1/2 0

0 s2 60 5/2 0 -3/2 1

zj 1,000 25 50 25 0

cj - zj 15 0 -25 0

Each tableau is the same as The computational steps that we followed to derive the second tableau in effect accom-
performing row operations for a plish the same thing as row operations in the solution of simultaneous equations. These
set of simultaneous equations. same steps are used to derive each subsequent tableau, called iterations.

The Optimal Simplex Tableau

The steps that we followed to derive the second simplex tableau are repeated to develop the
third tableau. First, the pivot column or entering basic variable is determined. Because 15
in the cj - zj row represents the greatest positive net increase in profit, x1 becomes the
entering nonbasic variable. Dividing the pivot column values into the values in the quantity
column indicates that s2 is the leaving basic variable and corresponds to the pivot row. The
pivot row, pivot column, and pivot number are indicated in Table A-14.
At this point you might be wondering why the net increase in profit per bowl (x1) is $15
rather than the original profit of $40. It is because the production of bowls (x1) will require
some of the resources previously used to produce mugs (x2) only. Producing some bowls means
not producing as many mugs; thus, we are giving up some of the profit gained from producing
mugs to gain even more by producing bowls. This difference is the net increase of $15.
Z06_TAYL4367_10_SE_Mod A.QXD 1/9/09 1:07 AM Page A-15

The Simplex Method A-15

Table A-14
40 50 0 0
The Pivot Row, Pivot Column, Basic
and Pivot Number cj Variables Quantity x1 x2 s1 s2

50 x2 20 1/2 1 1/2 0

0 s2 60 5/2 0 -3/2 1

zj 1,000 25 50 25 0

cj - zj 15 0 -25 0

The new tableau pivot row (x1) in the third simplex tableau is computed using the same
formula used previously. Thus, all old pivot row values are divided through by 5/2, the
pivot number. These values are shown in Table A-16. The values for the other row (x2) are
computed as shown in Table A-15.

Table A-15
Corresponding New Tableau

Row Value Q
Computation of the x2 Row for
P Pivot Column
Old Tableau Coefficients in * Pivot New Tableau
the Third Simplex Tableau Row Value - = Row Value
Column

Quantity 20 - (1/2 * 24) = 8

x1 1/2 - (1/2 * 1) = 0
x2 1 - (1/2 * 0) = 1
s1 1/2 - (1/2 * -3/5) = 4/5
s2 0 - (1/2 * 2/5) = -1/5

These new row values, as well as the new zj row and cj - zj row, are shown in the com-
pleted third simplex tableau in Table A-16.

Table A-16
40 50 0 0
The Completed Third Simplex Basic
Tableau cj Variables Quantity x1 x2 s1 s2

50 x2 8 0 1 4/5 -1/5
40 x1 24 1 0 -3/5 2/5

zj 1,360 40 50 16 6

cj - zj 0 0 -16 -6

The solution is optimal when all Observing the cj - zj row to determine the entering variable, we see that a nonbasic
cj - zj values … 0. variable would not result in a positive net increase in profit, as all values in the cj - zj row
are zero or negative. This means that the optimal solution has been reached. The solution is
x1 = 24 bowls
x2 = 8 mugs
Z = $1,360 profit
which corresponds to point B in Figure A-1.
Z06_TAYL4367_10_SE_Mod A.QXD 1/9/09 1:07 AM Page A-16

A-16 Module A The Simplex Solution Method

The simplex method does not An additional comment should be made regarding simplex solutions in general.
guarantee integer solutions. Although this solution resulted in integer values for the variables (i.e., 24 and 8), it is possi-
ble to get a fractional solution for decision variables even though the variables reflect items
that should be integers, such as airplanes, television sets, bowls, and mugs. To apply the
simplex method, one must accept this limitation.

Summary of the Simplex Method

The simplex method demonstrated in the previous section consists of the following
steps:
1. Transform the model constraint inequalities into equations.
2. Set up the initial tableau for the basic feasible solution at the origin and compute the
zj and cj - zj row values.
3. Determine the pivot column (entering nonbasic solution variable) by selecting the
column with the highest positive value in the cj - zj row.
4. Determine the pivot row (leaving basic solution variable) by dividing the quantity
column values by the pivot column values and selecting the row with the minimum
nonnegative quotient.
5. Compute the new pivot row values using the formula
old tableau pivot row values
new tableau pivot row values =
pivot number
6. Compute all other row values using the formula
corresponding corresponding

P pivot column pivot row values Q

new tableau old tableau
= - coefficients in * new tableau
row values row values

7. Compute the new zj and cj - zj rows.

8. Determine whether the new solution is optimal by checking the cj - zj row. If all
cj - zj row values are zero or negative, the solution is optimal. If a positive value
exists, return to step 3 and repeat the simplex steps.

Simplex Solution of a Minimization Problem

In the previous section the simplex method for solving linear programming problems was
demonstrated for a maximization problem. In general, the steps of the simplex method
outlined at the end of this section are used for any type of linear programming problem.
However, a minimization problem requires a few changes in the normal simplex process,
which we will discuss in this section.
In addition, several exceptions to the typical linear programming problem will be
presented later in this module. These include problems with mixed constraints (=, … ,
and Ú ); problems with more than one optimal solution, no feasible solution, or an
unbounded solution; problems with a tie for the pivot column; problems with a tie for the
pivot row; and problems with constraints with negative quantity values. None of these
kinds of problems require changes in the simplex method. They are basically unusual
results in individual simplex tableaus that the reader should know how to interpret and
work with.