Practice Problem 3-2 - Minimization of Cost (Simplex Method)

Problem: A manufacturer of commercial chemicals has an order for a certain mixture consisting of three ingredients: X1,
X2, and X3 which cost P40, P50 and P30 per kilo, respectively. The following are specifications:
a) It cannot contain more than 30 kilos of X1.
b) It must contain at least 20 kilos of X2.
c) It cannot contain more than 40 kilos of X3.
d) The weight of the mixture must be 100 kilos.
Find a mixture of the three ingredients which satisfies his customer’s requirement and yields the minimum total
cost of raw materials.
Summary of Steps
1. Set up the linear program, that is restate the information in mathematical form.
2. Convert any inequalities to equalities by adding or subtracting slack variables as necessary.
3. Add artificial variables to any inequalities involving negative slack variables and to any inequalities which were not
altered by adding slack variables initially.
4. Enter the resulting equalities in the simplex table.
5. Calculate the Cj – Zj values for this solution.
6. Determine the entering variable by choosing the one with the largest negative Cj – Zj values.
7. Determine the row to be replaced by dividing quantity column values by their corresponding intersectional elements
and choosing the smallest positive quotient.
8. Compute the values for the replacing row.
9. Compute the values for the remaining rows.
10.Compute the Cj – Zj values for this solution.
11.If there is a negative Cj – Zj values remaining, proceed as indicated in step 6 above.
12.If there is no negative Cj – Zj value remaining the optimum solution has been obtained.

Linear program
Minimize C = P40x1 + P50x2 + P30x3
Subject to: x1 ≤ 30
x2 ≥ 20
x3 ≤ 40
x1 + x2 +x3 = 100
x1, x2, x3, ≥ 0
Convert
X1 + S1 = 30
X2 -S2 + A1 = 20
X3 + S3 = 40
x1 + x2 +x3 + A2 = 100

Modify

C = P40X1 +P50X2 + P30X3 +P0S1 + P0S2 +P0S3 + PmA1 + PmA2

30 = X1 + 0X2 + 0X3 + S1 + 0S2 +0S3 + 0A1 + 0A2
20 = 0X1 + X2 + 0X3 + 0S1 - S2 + 0S3 + A1 + 0A2
40 = 0X1 + 0X2 + X3 +0S1 + 0S2 + S3+ 0A1 + 0A2
100 = X1 + X2 + X3 + 0S1 + 0S2 + 0S3 + 0A1 + A2

Note: The first solution contains slack or artificial variable which have a coefficient of 1 in one row and zero in the other
rows.
First Solution
Cj 40 50 30 0 0 0 m m
PM Qty X1 X2 X3 S1 S2 S3 A1 A2
0 S1 30 1 0 0 1 0 0 0 0
m A1 20 0 1 0 0 -1 0 1 0 → lowest positive quotient
0 S3 40 0 0 1 0 0 1 0 0
m A2 100 1 1 1 0 0 0 0 1
Zj 120m m 2m m 0 -m 0 m m
Cj - Zj 40-m 50-2m 30-m 0 m 0 0 0
↑

Replacing row(X2) = Same values IE = 1

Remaining rows (S1 and S3) = Same values IE = 0 A2 Row
100 - 1(20) = 80
Second Solution 1 -1(0) =1
Cj 40 50 30 0 0 0 m m 1- 1(1) = 0
PM Qty X1 X2 X3 S1 S2 S3 A1 A2 1 - 1(0) =1
0 S1 30 1 0 0 1 0 0 0 0 0 - 1(0) = 0
50 X2 20 0 1 0 0 -1 0 1 0 0 - 1(-1) = 1
0 S3 40 0 0 1 0 0 1 0 0 → 0 - 1(0) = 0
m A2 80 1 0 1 0 1 0 -1 1 0 -1(1) = -1
Zj 1000+80m m 50 m 0 m-50 0 50-m m 1 -1(0) = 1
2m-
Cj - Zj 40-m 0 30-m 0 50-m 0 50 0
↑

Replacing row(X3) = Same values IE = 1

Remaining rows (S1 and X2) = Same values IE = 0 A2 Row
80 - 1(40) = 40
Third Solution 1 -1(0) =1
Cj 40 50 30 0 0 0 m m 0- 1(0) = 0
PM Qty X1 X2 X3 S1 S2 S3 A1 A2 1 - 1(1) =0
0 S1 30 1 0 0 1 0 0 0 0 → 0 - 1(0) = 0
50 X2 20 0 1 0 0 -1 0 1 0 1 - 1(0) = 1
30 X3 40 0 0 1 0 0 1 0 0 0 - 1(0) = -1
m A2 40 1 0 0 0 1 -1 -1 1 -1-(1)(0)=-1
Zj 2200+40m m 50 30 0 m-50 30-m 50-m m 1 -1(0) = 1
2m-
Cj - Zj 40-m 0 0 0 50-m m-30 50 0
↑
Replacing row(X1) = Same values IE = 1
Remaining rows (X2 and X3) = Same values IE = 0 A2 Row
40 - 1(30) = 10
Fourth Solution 1 -1(1) =0
Cj 40 50 30 0 0 0 m m 0- 1(0) = 0
PM Qty X1 X2 X3 S1 S2 S3 A1 A2 0 - 1(0) =0
40 X1 30 1 0 0 1 0 0 0 0 0 - 1(1) = -1
50 X2 20 0 1 0 0 -1 0 1 0 1 - 1(0) = 1
30 X3 40 0 0 1 0 0 1 0 0 -1-1(0)=-1
m A2 10 0 0 0 -1 1 -1 -1 1 → -1-1(0)=-1
Zj 3400+10m 40 50 30 40-m m-50 30-m 50-m m 1 -1(0) = 1
2m-
Cj - Zj 0 0 0 m-40 50-m m-30 50 0
↑

Replacing row(S2) = Same values IE = 1 X2 Row

Remaining rows (X1 and X3) = Same values IE = 0 20 - (-1)10=30
0 - (-1)0 =0
Fifth Solution 1 - (-1)0 =1
Cj 40 50 30 0 0 0 m m 0 - (-1)0 = 0
PM Qty X1 X2 X3 S1 S2 S3 A1 A2 0 - (-1)(-1) = -1
40 X1 30 1 0 0 1 0 0 0 0 -1-(-1)(1)=-0
50 X2 30 0 1 0 -1 0 -1 0 1 0 -(-1)(-1) =-1
30 X3 40 0 0 1 0 0 1 0 0 1 -(-1)(-1) = 0
0 S2 10 0 0 0 -1 1 -1 -1 1 0 -(-1)1 = 1
Zj 3900 40 50 30 -10 0 -20 0 50
Cj - Zj 0 0 0 10 0 20 m m-50

Optimum Solution
The mixture must contain:
X1 = 30 Kilos
X2 = 30 kilos
X3 = 40 kilos
Cost = P3,900