Department of Business Administration

FALL 2007-08
Management
Science
by by
Asst. Prof. Sami Fethi

© 2007 Pearson Education

 Ch 4: Simplex method:
tabular solution
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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 Ch 4: Simplex method:

SIMPLEX METHOD tabular solution

 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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 Ch 4: Simplex method:
Characteristics of Simplex Method tabular solution

 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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 Ch 4: Simplex method:
Characteristics of Simplex Method tabular solution

 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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 Ch 4: Simplex method:
Characteristics of Simplex Method tabular solution

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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 Ch 4: Simplex method:
tabular solution
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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 Ch 4: Simplex method:
tabular solution
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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 Ch 4: Simplex method:
Example 1 tabular solution

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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 Ch 4: Simplex method:
tabular solution
Tabular solution for Example 1/1

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 Ch 4: Simplex method:
tabular solution
Tabular solution for Example 1/2

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 Ch 4: Simplex method:
Tabular solution for Example 1/3 tabular solution

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 Ch 4: Simplex method:
Tabular solution for Example 1/4 tabular solution

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 Ch 4: Simplex method:
tabular solution
Tabular solution for Example 1/5

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 Ch 4: Simplex method:
tabular solution
Tabular solution for Example 1/6

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 Ch 4: Simplex method:
tabular solution
Tabular solution for Example 1/7

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 Ch 4: Simplex method:
tabular solution
Tabular solution for Example 1/8

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 Ch 4: Simplex method:
Example 2 tabular solution
PAR Inc. produces golf equipment and decided to move into the market for standard
and deluxe golf bags. Each golf bag requires the following operations:
Cutting and dyeing the material,
Sewing,
Finishing (inserting umbrella holder, club separators etc.),
Inspection and packaging.
Each standard golf-bag will require 7/10 hr. in the cutting and dyeing department, 1/2
hr. in the sewing department, 1 hr. in the finishing department and 1/10 hr. in the
inspection & packaging department.
Deluxe model will require 1 hr. in the cutting and dyeing department, 5/6 hr. for
sewing, 2/3 hr. for finishing and 1/4 hr. for inspection and packaging
The profit contribution for every standard bag is 10 MU and for every deluxe bag is 9
MU.
In addition the total hours available during the next 3 months are as follows:
Cutting & dyeing dept 630 hrs
Sewing dept 600 hrs
Finishing 708 hrs
Inspection & packaging 135 hrs
The company’s problem is to determine how many standard and deluxe bags should be
produced in the next 3 months?
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 Ch 4: Simplex method:
Example 2 tabular solution

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 Ch 4: Simplex method:
tabular solution
Tabular solution for Example 2/1

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 Ch 4: Simplex method:
Tabular solution for Example 2/2 tabular solution

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 Ch 4: Simplex method:
Tabular solution for Example 2/3 tabular solution

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 Ch 4: Simplex method:
Tabular solution for Example 2/4 tabular solution

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 Ch 4: Simplex method:
Tabular solution for Example 2/5 tabular solution

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 Ch 4: Simplex method:
Example 3 tabular solution

High Tech industries import components for production of two different models of
personal computers, called deskpro and portable. High Tech’s management is
currently interested in developing a weekly production schedule for both products.
The deskpro generates a profit contribution of $50/unit, and portable generates a
profit contribution of $40/unit. For next week’s production, a max of 150 hours of
assembly time is available. Each unit of deskpro requires 3 hours of assembly time.
And each unit of portable requires 5 hours of assembly time.
High Tech currently has only 20 portable display components in inventory; thus no
more than 20 units of portable may be assembled. Only 300 sq. feet of warehouse
space can be made available for new production. Assembly of each Deskpro requires
8 sq. ft. of warehouse space, and each Portable requires 5 sq. ft. of warehouse space.

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 Ch 4: Simplex method:
Tabular solution for Example 3/1 tabular solution

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 Ch 4: Simplex method:
Tabular solution for Example 3/2 tabular solution

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 Ch 4: Simplex method:
Tabular solution for Example 3/3 tabular solution

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 Ch 4: Simplex method:
Tabular solution for Example 3/3 tabular solution

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 Ch 4: Simplex method:
tabular solution
Tableau Form : The Special Case

 Obtaining tableau form is somewhat

more complex if the LP contains 
constraints, = constraints, and/or “-
ve” right-hand-side values. Here we
will explain how to develop tableau
form for each of these situations.

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 Ch 4: Simplex method:
tabular solution

Tabular solution for Example 4/1

 Suppose that in the high-tech industries problem, management

wanted to ensure that the combined total production for both models
would be at least 25 units.
 Thus,
 Objective Function Max Z = 50X1 + 40X2

Subjective to : 3 X1 + 5 X2  150 Assembly time

 1X1  20 Portable
display
 8X1 + 5 X2  300 Warehouse
space
 1X1 + 1X2  25 Min. total
production
 X1 , X2  0

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 Ch 4: Simplex method:
tabular solution

Tabular solution for Example 4/2

 First, we use three slack variables and one surplus
variable to write the problem in std. Form.
 Max Z = 50X1 + 40X2 + 0S1 + 0S2 + 0S3 + 0S4
 Subject to 3X1 + 5X2 + 1S1 = 150
 1X2 + 1S2 = 20
 8X1 + 5X2 + 1S3 = 300
 1X1 + 1X2 - 1S4 = 25
 All variables  0
 For the initial tableau X1 = 0 X2 = 0
 S1= 150 S2 = 20
 S3 = 300 S4 = -25

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 Ch 4: Simplex method:
tabular solution

Tabular solution for Example 4/3

 Clearly this is not a basic feasible solution since

S4 = -25 violates the nonnegativity
requirement.
 We introduce new variable called ARTIFICIAL
VARIABLE.
 Artificial variables will be eliminated before the

optimal solution is reached. We assign a very

large cost to the variable in the objective
function.
 Objective function

50X1 + 40X2 + 0S1 + 0S2 + 0S3 + 0S4 - MA4

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 Ch 4: Simplex method:
tabular solution

Tabular solution for Example 4/4

Initial Tableau
Cj 50 40 0 0 0 0 -M

Product Quantit X1 X2 S1 S2 S3 S4 A4 bi / aij

mix bi

0 S1 150 3 5 1 0 0 0 0 150/3=50

0 S2 20 0 1 0 1 0 0 0 --

0 S3 300 8 5 0 0 1 0 0 300/8=37.5

-M A4 25 1 1 0 0 0 -1 1 25
Min. leaving

Zj -25M -M -M 0 0 0 M -M

Cj – Zj 50+M 40+M 0 0 0 -M 0

Max. (Entering)
New X1 values = 25, 1, 1, 0, 0, 0, -1, 1

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 Ch 4: Simplex method:
tabular solution

Tabular solution for Example 4/5

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 Ch 4: Simplex method:
tabular solution

Tabular solution for Example 4/6

2nd Tableau

Cj $50 40 0 0 0 0 -M
Prodt Quant X1 X2 S1 S2 S3 S4 A4 bi / aij
mix bi
$0 S1 75 0 2 1 0 0 3 -3 75/3=25
0 S2 20 0 1 0 1 0 0 0 --
0 S3 100 0 -3 0 0 1 8 -8 100/8=12.5
Min,leaving
50 X1 25 1 1 0 0 0 -1 1 --
Zj $1250 50 50 0 0 0 -50 50
Cj – Zj 0 -10 0 0 0 50 -M-50

ew S4 values : 100/8 = 25/2, 0, -3/8, 0, 0, 1/8, 1

Max. (Entering)

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 Ch 4: Simplex method:
tabular solution

Tabular solution for Example 4/7

 IMPORTANT!!
 Since A4 is an artificial variable that was
added simply to obtain an initial basic
feasible solution, we can drop its
associated column from the simplex
tableau.
 Indeed whenever artificial variables are
used, they can be dropped from the
simplex tableau as soon as they have
been eliminated from the basic feasible
solution.

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 Ch 4: Simplex method:
Tabular solution for tabular solution

Example 4/8

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 Ch 4: Simplex method:
tabular solution

Tabular solution for Example 4/9

One more iteration is required. This time X2 comes into

the solution and S1 is eliminated. After performing this
iteration, the following simplex tableau shows that the
optimal solution has been reached.
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 Ch 4: Simplex method:
tabular solution

Tabular solution for Example 4/10

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 Ch 4: Simplex method:
tabular solution
EQUALITY CONTRAINTS
NEGATIVE RIGHT-HAND SIDE VALUES
 Simply add an artificial variable A1 to create a basic feasible
solution in the initial simplex tableau.
6X1 + 4X2 - 5X3 = 30 6X1 + 4X2 - 5X3 + 1A1 = 30
 One of the properties of the tableau form of a linear
program is that the values on the right-hand sides of the
constraints have to be nonnegative.
 e.g. # of units of the portable model (X2) has to be less
than or equal to the # of units of the deskpro model (X1)
after setting aside 5 units of the deskpro for internal
company use.
X2  X1 - 5
 - X1 + X2  -5
 (Min)Multiply by –1  (Max) X1 - X2  5
 We now have an acceptable nonnegative right-hand-side value.
Tableau form for this constraint can now be obtained by subtracting a
surplus variable and adding an artificial variable.

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 Ch 4: Simplex method:
tabular solution
Tabular solution for Example 5/1

 Livestock Nutrition Co. produces specially blended feed

supplements. LNC currently has an order for 200 kgs of
its mixture.
 This consists of two ingredients
X1 ( a protein source )
X2 ( a carbohydrate source )
 The first ingredient, X1 costs LNC 3MU a kg. The second
ingredient, X2 costs LNC 8MU a kg. The mixture can’t be
more than 40% X1 and it must be at least 30% X2.
 LNC’s problem is to determine how much of each
ingredient to use to minimize cost.

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 Ch 4: Simplex method:
tabular solution

Tabular solution for Example 5/2

 The cost function can be written as
Cost = 3X1 + 8X2 Min!
 LNC must produce 200 kgs of the mixture – no more, no
less.
X1 + X2 = 200 kgs
 The mixture can’t be more than 40% X1, so we may use
less than 80 kgs. (40% X 200 = 80). However, we must
not exceed 80 kgs.
X1  80 kgs
 The mixture must be at least 30% X2. Thus we may use
more than 60 kgs, not less than 60 kgs. (30% X 200 =
60)
 X2  60 kgs

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 Ch 4: Simplex method:
tabular solution

Tabular solution for Example 5/3

Minimize : Cost = 3MU X1 + 8MU X2
Subject to X1 + X2 = 200 kgs
X1  80 kgs
X2  60 kgs
X1 , X2  0
 An initial solution: X1 + X2 = 200 kgs
 X1 + X2 + A1 = 200

 Artificial variable : A very expensive substance must not
be represented in optimal solution.

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 Ch 4: Simplex method:
tabular solution

Tabular solution for Example 5/4

 An artificial Variable is only of value as a computational device; it

allows 2 types of restrictions to be treated.
 The equality type

  type

 X1  80 kgs constraint on protein

 X1 + S1 = 80 kgs
X2  60 kgs constraint on carbohydrates
 X2 - S2 + A2 = 60
 X1 , X2 , S1, S2, A1, A2  0

   
0MU 0MU M M

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 Ch 4: Simplex method:
tabular solution

Tabular solution for Example 5/5

Minimize : Cost = 3X1 + 8X2 + 0S1 + 0S2 + MA1 + MA2

Subject to : X1 + X2 + A1 =
200
X1 + S1 =
80
X2 - S2 + A2 =
60
All variables 
0

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 Ch 4: Simplex method:
tabular solution

Tabular solution for Example 5/6

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 Ch 4: Simplex method:
tabular solution

Tabular solution for Example 5/7

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 Ch 4: Simplex method:
tabular solution

Tabular solution for Example 5/8

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 Ch 4: Simplex method:
tabular solution

Tabular solution for Example 5/9

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 Ch 4: Simplex method:
tabular solution

Tabular solution for Example 5/10

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 Ch 4: Simplex method:
tabular solution

Tabular solution for Example 5/11

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 Ch 4: Simplex method:
tabular solution

Tabular solution for Example 5/12

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 Ch 4: Simplex method:
tabular solution

End of chapter

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