Operations Research
Lec -3 Part a
Instructor: Safina
Chapter Topics
Simplex Method
Characteristics of Simplex Method
Why we should study the Simplex Method?
Summary of the Simplex Method
Examples solved by conducting tabular method
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SIMPLEX METHOD
Linear programming models could be solved
algebraically. The most widely used algebraic procedure
for solving linear programming problem is called the
Simplex Method. The simplex method is a general-
purpose linear-programming algorithm widely used to
solve large scale problems. Although it lacks the
intuitive appeal of the graphical approach, its ability to
handle problems with more than two decision variables
makes it extremely valuable for solving problems often
encountered in production/operations management.
Thus simplex method offers an efficient means of
solving more complex linear programming problems.
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Characteristics of Simplex Method
In the simplex method, the computational routine is an iterative
process. To iterate means to repeat; hence, in working toward
the optimum solution, the computational routine is repeated
over and over, following a standard pattern.
Successive solutions are developed in a systematic pattern until
the best solution is reached.
Each new solution will yield a value of the objective function
as large as or larger than the previous solution. This important
feature assures us that we are always moving closer to the
optimum answer. Finally, the method indicates when the
optimum solution has been reached.
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Characteristics of Simplex Method
Most real-life linear programming problems
have more than two variables, so a procedure
called the simplex method is used to solve such
problems. This procedure solves the problem in
an iterative manner, that is, repeating the same
set of procedures time after time until an
optimal solution is reached. Each iteration
brings a higher value for the objective function
so that we are always moving closer to the
optimal solution.
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Characteristics of Simplex Method
The simplex method requires simple mathematical
operations (addition, subtraction, multiplication, and
division), but the computations are lengthy and tedious, and
the slightest error can lead to a good deal of frustration. For
these reasons, most users of the technique rely on computers
to handle the computations while they concentrate on the
solutions. Still, some familiarity with manual computations
is helpful in understanding the simplex process. The student
will discover that it is better not to use his/her calculator in
working through these problems because rounding can
easily distort the results. Instead, it is better to work with
numbers in fractional form.
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Why we should study the Simplex Method?
• It is important to understand the ideas used to produce
solution. The simplex approach yields not only the optimal
solution to the xi variables, and the maximum profit (or
minimum cost) but valuable economic information as well.
• To be able to use computers successfully and to interpret
LP computer print outs, we need to know what the simplex
method is doing and why.
• We begin by solving a maximization problem using the
simplex method. We then tackle a minimization problem.
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SUMMARY OF THE SIMPLEX METHOD
Step 1. Formulate a LP model of the problem.
Step 2. Add slack variables to each constraint to obtain standard form.
Step 3. Set up the initial simplex tableau.
Step 4. Choose the nonbasic variable with the largest entry in the net evaluation row
(Cj – Zj) to bring into the basis. This identifies the pivot (key) column; the
column associated with the incoming variable.
Step 5. Choose as the pivot row that row with the smallest ratio of “bi/ aij”, for aij >0
where j is the pivot column. This identifies the pivot row, the row of the
variable leaving the basis when variable j enters.
Step 6. a). Divide each element of the pivot row by the pivot element.
b). According to the entering variable, find the new values for remaining
variables.
Step 7. Test for optimality. If Cj – Zj 0 for all columns, we have the optimal
solution. If not, return to step 4.
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Example 1
A Furniture Ltd., wants to determine the most profitable combination of
products to manufacture given that its resources are limited. The
Furniture Ltd., makes two products, tables and chairs, which must be
processed through assembly and finishing departments. Assembly has
60 hours available; Finishing can handle up to 48 hours of work.
Manufacturing one table requires 4 hours in assembly and 2 hours in
finishing.
Each chair requires 2 hours in assembly and 4 hours in finishing. Profit
is $8 per table and $6 per chair.
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Tabular solution for Example 1/1
48 48
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Tabular solution for Example 1/2
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Tabular solution for Example 1/3
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Tabular solution for Example 1/4
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Tabular solution for Example 1/5
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Tabular solution for Example 1/6
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Tabular solution for Example 1/7
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Tabular solution for Example 1/8
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