MODULE 3

LINEAR
PROGRAMMING:
THE SIMPLEX
METHOD
LEARNING OUTCOMES:
• Introduce the simplex method of Linear Programming.
• Examine in detail all the steps of the simplex method.
• Define and discuss all the elements in the simplex table
in terms of their significance to the problem statement
and interpret solutions.
• Interpret simplex solutions.
• Discuss unbounded solutions

Department of Accountancy - Management Science

Source: Quantitative Techniques for Business Management
by Asuncion C. Mercado del Rosario
LEARNING CONTENTS:
• Definition of Terms
• Summary of Simplex Procedure
• Reasons why Slack and Artificial Variables are added to
the Explicit Constraints
• LP Maximization Problems: Simplex Method
• LP Minimization Problem: Simplex Tableau
• Special situations in LP Simplex Method
• Limitations of Linear Programming
Department of Accountancy - Management Science
Source: Quantitative Techniques for Business Management
by Asuncion C. Mercado del Rosario
SIMPLEX METHOD
• Simplex method, devised by George B. Dantzig in 1947, is a highly
efficient method of solving more complex linear programming problems.
• Is a procedure that starts with an initial basic feasible solution. It then
proceeds step by step to subsequent solutions each of which is a basic
feasible solution and has greater profit (or lesser cost) than the previous
solution
• Iterative Process which means that in working toward optimum solution,
the computational process is repeated over and over following a standard
pattern until the best solution is obtained.

Department of Accountancy - Management Science

Source: Quantitative Techniques for Business Management
by Asuncion C. Mercado del Rosario
3.1 DEFINITION OF TERMS
• ARTIFICIAL VARIABLE
a computational device in linear programming to achieve an initial
solution to the problem.
• CJ COLUMN
a column in the simplex tableau which contains the profit or cost per
unit for the variable in the solution.
• CJ-ZJ ROW
the row containing the net profit or loss occasioned by bringing one unit
of a variable into the solution of linear programming problem.
• DEGENERACY
a condition resulting from a tie in the ratios determining the replaced
row, which produces a basic variable with a zero value.
Department of Accountancy - Management Science
Source: Quantitative Techniques for Business Management
by Asuncion C. Mercado del Rosario
3.1 DEFINITION OF TERMS
• ITERATIVE PROCESS
a step-by-step process following a standard pattern.
• OPTIMAL COLUMN(Entering Row)
that column in any solution to a maximizing problem which has the
largest value in the Cj-Zj row, or which has the largest negative value in
the minimizing problem.
• INTERSECTIONAL ELEMENTS(IE)
elements which are common to both the optimal column and the rows
representing variables in the solution.
• PIVOT ELEMENT
the element in the entering column and the leaving row.
Department of Accountancy - Management Science
Source: Quantitative Techniques for Business Management
by Asuncion C. Mercado del Rosario
3.1 DEFINITION OF TERMS
• PIVOTING
the process of going from one simplex tableau to the next.
• SOLUTION VALUES COLUMN(Quantity column)
the column in a simplex tableau indicating the quantities of the values
of the variables that are in a solution.
• REPLACED ROW
a row in the simplex tableau which is replaced by the variable entering
the new solution.
• SIMPLEX TABLEAU
a tabular format organizing the data of a linear programming problem
and performing the computations of the simplex algorithm.
Department of Accountancy - Management Science
Source: Quantitative Techniques for Business Management
by Asuncion C. Mercado del Rosario
3.1 DEFINITION OF TERMS
• SLACK VARIABLES
variables added to “less than or equal to” constraints to convert them
into equations.
• VARIABLE COLUMN(Product mix column)
the column of entries under the heading solution variable in the simplex
tableau.
• ZJ ROW
the row containing the opportunity cost of bringing one unit of a
variable into the solution of a linear programming problem.

Department of Accountancy - Management Science

Source: Quantitative Techniques for Business Management
by Asuncion C. Mercado del Rosario
3.1 DEFINITION OF TERMS
• SLACK VARIABLES
variables added to “less than or equal to” constraints to convert them
into equations.
• VARIABLE COLUMN
the column of entries under the heading solution variable in the simplex
tableau.
• ZJ ROW
the row containing the opportunity cost of bringing one unit of a
variable into the solution of a linear programming problem.

Department of Accountancy - Management Science

Source: Quantitative Techniques for Business Management
by Asuncion C. Mercado del Rosario
3.1 DEFINITION OF TERMS
Real variables Slack variables
Cj Column column column
Cj P 30 P 70 0 0 Profit per
Ci unit row
Solution Solution X1 X2 S1 S2 Variable row
variable values
0 S1 20 1 2 1 0
Constraint
equation row
Pivot
0 S2 35 1 5 0 1
element
0 0 0 0 0 Gross
Zj profit(loss)
row
P 30 P70 P0 P0 Net
Cj-Zj
profit(loss)

Cj-Zj row
Optimum column
Department of Accountancy - Management Science
Source: Quantitative Techniques for Business Management
by Asuncion C. Mercado del Rosario
 3.2 SUMMARY OF SIMPLEX PROCEDURE
1. Set up the linear programming model.
Electric model Available time
Standard model
capacity
Machine A 1 2 20
Machine B 1 5 35
profit P30 P70
Identify the decision variables.
Let: X1 = no. of standard models to be produced
X2 = no. of electric models to be produced
Formulate the objective function Subject to:
Max./Min. P= 30X1+70X2 X1 + 2X2 <= 20 Explicit constraint
X1 + 5X2 <= 35
Department of Accountancy - Management Science
Source: Quantitative Techniques for Business Management
X1;X2 >= 0 Implicit constraint
by Asuncion C. Mercado del Rosario
3.2 SUMMARY OF SIMPLEX PROCEDURE
2. Convert the explicit constraints into equalities by adding slack and/or
artificial variable.
A. for a less than or equal to (<=) constraint, add a slack variables that
will represent the constraint in the initial feasible solution.
B. for a strict equality (=) constraint, add an artificial (A) variable that
will represent the constraint in the initial feasible solution.
C. for a greater than or equal to (>=) constraint, subtract a slack (S)
variable to convert it to equality and add an artificial (A) variable to
represent the constraint in the initial feasible solution.
Convert:
𝑥1 +2𝑥2 + 𝑆 1 = 20
𝑥1 + 5𝑥2 + 𝑆2 = 35
Department of Accountancy - Management Science
Source: Quantitative Techniques for Business Management
by Asuncion C. Mercado del Rosario
3.2 SUMMARY OF SIMPLEX PROCEDURE
3. Modify the objective function and the constraint so as to contain all
the variables including the slack and artificial variables added in
converting them to equality.
Objective function:
Max./Min P= 30X1 + 70X2 + 0S1 + 0S2

Subject to:
X1 + 2X2 + S1 + 0S2= 20
X1 + 5X2 + 0S1 + S2= 35

Department of Accountancy - Management Science

Source: Quantitative Techniques for Business Management
by Asuncion C. Mercado del Rosario
3.2 SUMMARY OF SIMPLEX PROCEDURE
4. Construct the first simplex tableau (initial solution) as composed of
slack an artificial variables if there is any.
Ci Cj P 30 P 70 0 0

Solution Solution X1 X2 S1 S2
variable values
0 S1 20 1 2 1 0

0 S2 35 1 5 0 1

Zj 0 0 0 0 0

Cj-Zj P 30 P70 P0 P0

Department of Accountancy - Management Science

Source: Quantitative Techniques for Business Management
by Asuncion C. Mercado del Rosario
Optimum column
3.2 SUMMARY OF SIMPLEX PROCEDURE
5. Check for optimality. The current solution is optimal if:
• for maximization, all values in the Cj-Zj row are zero or negative.
• for minimization, all values in the Cj-Zj row are zero or negative.
• If optimal solution has been reached, stop the simplex procedure, if not
continue with procedure.
6. Determine the entering variable into the next simplex tableau (next
solution)

Department of Accountancy - Management Science

Source: Quantitative Techniques for Business Management
by Asuncion C. Mercado del Rosario
3.2 SUMMARY OF SIMPLEX PROCEDURE
7. Determine the outgoing variable.
𝑆1 row: 20 ÷ 2 = 10
𝑆2 row: 35 ÷ 5= 7 smallest positive ratio
8. Construct the next simplex tableau:
Ci Cj P 20 P 70 0 0
Solution Solution X1 X2 S1 S2
variable values
0 S1 6 3/5 0 1 -2/5
70 X2 7 1/5 1 0 1/5
Zj 490 14 70 0 14
Cj-Zj 16 0 P0 -14
9. Check for optimality again. Department of Accountancy - Management Science
Source: Quantitative Techniques for Business Management
by Asuncion C. Mercado del Rosario
3.3 REASONS WHY SLACK AND ARTIFICIAL VARIABLES ARE ADDED
TO THE EXPLICIT CONSTRAINTS
Slack Variables are added:
1. To convert the less than or equal to explicit constraints into equalities.
2. To provide an initial feasible solution, since the decision variables can
not be used in the initial feasible solution.

Artificial Variables are added:

1. To convert the greater than or equal to explicit constraints into
equalities.
2. To represent a strict equality (=) constraint in the initial feasible
solution.

Department of Accountancy - Management Science

Source: Quantitative Techniques for Business Management
by Asuncion C. Mercado del Rosario
3.3 REASONS WHY SLACK AND ARTIFICIAL VARIABLES ARE ADDED
TO THE EXPLICIT CONSTRAINTS
• In the simplex method, in order for a variable to represent a constraint in
the initial solution, its coefficient must be equal to positive one (+1). This
is the reason why artificial variables are added to constraints containing
slack variables with negative coefficients. The artificial variable represents
the constraint in the initial feasible solution.
• In the objective function, slack variables take on zero (0) coefficients so as
not to affect the profit (or cost).
• The final solution may contain slack variables since their contribution to
profit (or cost) is null since their coefficient is zero, but, the final solution
must not contain artificial variables.

Department of Accountancy - Management Science

Source: Quantitative Techniques for Business Management
by Asuncion C. Mercado del Rosario
3.4 LP MAXIMIZATION PROBLEMS: SIMPLEX METHOD
Example 3.4.1
• A small scale industry manufactures two kinds of thermos bottles;
standard airpot and electric airpot. Components of these two thermos
are processed by two different machines, A and B. During the scheduling
period, the production head found out that there are 20 hours of
machine A time available and 35 hours of machine B. To complete one
unit of the standard model needs 1 hour on machine A and 1 hour on
machine B, while it takes 2 hours on machine A and 5 hours on machine B
to complete one unit of the electric model. The company can sell all the
units it can produce per production period at a profit of P30 per standard
model and P70 per electric model. If the company`s objective is to
maximize profit, how many units each model should be produced and
sold by the company?
Department of Accountancy - Management Science
Source: Quantitative Techniques for Business Management
by Asuncion C. Mercado del Rosario
3.4 LP MAXIMIZATION PROBLEMS: SIMPLEX METHOD
Example 3.4.1
Solution: Tabulate the data:

Standard Electric Model Available Time

Model Capacity
Machine A 1 2 20
Machine B 1 5 35
Profit P 30 P 70

Department of Accountancy - Management Science

Source: Quantitative Techniques for Business Management
by Asuncion C. Mercado del Rosario
3.4 LP MAXIMIZATION PROBLEMS: SIMPLEX METHOD
Example 3.4.1
1. Formulate the linear programming model.
Decision Variables:
Let: 𝑥1 = no. of standard models to be produced
𝑥2 = no. of electric models to be produced
Objective Function:
max. P = 30 𝑥1 + 70𝑥2
Subject to: Convert:
𝑥1 + 2𝑥2 ≤ 20 Explicit constraints 𝑥1 +2𝑥2 + 𝑆 1 = 20
𝑥1 + 5𝑥2 ≤ 35 𝑥1 + 5𝑥2 + 𝑆2 = 35
𝑥1 ; 𝑥2 ≥ 0 Implicit constraintsSource:
Department of Accountancy - Management Science
Quantitative Techniques for Business Management
by Asuncion C. Mercado del Rosario
3.4 LP MAXIMIZATION PROBLEMS: SIMPLEX METHOD
Example 3.4.1
2. Modify the objective function and constraints by adding slack variables
(S) since all the order relations are less than or equal to (≤).
Objective Function:
max. P= 30𝑥1 + 70𝑥2 + 𝑂𝑆1 + 𝑂𝑆2
Subject to:
𝑥1 + 2𝑥2 + 𝑆1 + 𝑂𝑆2 = 20
𝑥1 + 5𝑥2 + 𝑂𝑆1 + 𝑆2 = 35

Department of Accountancy - Management Science

Source: Quantitative Techniques for Business Management
by Asuncion C. Mercado del Rosario
3.4 LP MAXIMIZATION PROBLEMS: SIMPLEX METHOD
Example 3.4.1
Set up the first initial feasible solution (first simplex tableau)
TABLE I (Initial Feasible Solution)
𝑪𝒋 P 30 P 70 0 0 Objective
𝑪𝒊 row
Solution Solution 𝒙𝟏 𝒙𝟐 𝑺𝟏 𝑺𝟐 Variable
Variables Values row
0 𝑺𝟏 20 1 2 1 0
Constraint
rows
0 𝑺𝟐 35 1 5 0 1

𝒁𝒋 0 0 0 0 0 Shadow
prices
𝑪𝒋 − 𝒁 𝒋 P 30 P 70 0 0 Net profits

Department of Accountancy - Management Science

Outgoing row Source: Quantitative Techniques for Business Management Optimum column
by Asuncion C. Mercado del Rosario
3.4 LP MAXIMIZATION PROBLEMS: SIMPLEX METHOD
Example 3.4.1
2. Modify the objective function and constraints by adding slack variables
(S) since all the order relations are less than or equal to (≤).
To determine the values in the Zj row, row-wise, multiply the values in the
Cj column by the corresponding (the same row) values in each column.
Then add the products obtained for each column. In table I, since the two
values in the Cj column are zero (coefficients of S1 and S2), therefore, the
values of the Zj row are all zero.
zj row on x1 column zj row on s1 column
0 (1) + 0 (1) = 0 0 + (1) + 0 (0)
zj row on x2 column zj row on s2 column
0 (2) + 0 (5) = 0 0 (0) + 0 (1) = 0
Write these results on the Zj row of Table I.
Department of Accountancy - Management Science
Source: Quantitative Techniques for Business Management
by Asuncion C. Mercado del Rosario
3.4 LP MAXIMIZATION PROBLEMS: SIMPLEX METHOD
Example 3.4.1
To obtain the Cj – Zj row values, simply subtract the obtained Zj row values
from the Cj – Zj row values column-wise.
Cj − Zj row on x1 column Cj − Zj row on S1 column
P 30 – 0 = P 30 0–0=0
Cj − Zj row on x2 column Cj − Zj row on S2 column
P 70 – 0 = P 70 0–0=0
Then write these results on the Cj – Zj row of Table I to complete the
tableau.

Department of Accountancy - Management Science

Source: Quantitative Techniques for Business Management
by Asuncion C. Mercado del Rosario
3.4 LP MAXIMIZATION PROBLEMS: SIMPLEX METHOD
Example 3.4.1
Develop the second solution (Table II):
After the initial simplex tableau is completed, check for optimality. Table I is
not the optimal solution since its contribution to profit is zero. The next
step is to determine how to improve the solution. The computational
procedure is as follows:
1. Determine the variable that yields the most profit per unit. This is the
variable that comes into the next solution and is called the entering
variable. This is the variable that have the highest position value in
𝐶𝑗 − 𝑍𝑗 of Table I. The column where this variable is. Is called the
optimum column. In Table I, 𝑥2 is chosen since it has the highest value
in the 𝐶𝑗 − 𝑍𝑗 row. It means that for every unit of 𝑥2 (electric model)
brought into the solution will increase profit by P 70 as compared to P
30 for 𝑥1 (standard model). Thus, 𝑥2 is the entering variable.
Department of Accountancy - Management Science
Source: Quantitative Techniques for Business Management
by Asuncion C. Mercado del Rosario
3.4 LP MAXIMIZATION PROBLEMS: SIMPLEX METHOD
Example 3.4.1
Develop the second solution (Table II):
2. After determining the entering variable, determine the variable to be replaced
called the outgoing variable by dividing the solution values by the values in the
optimum column and choosing the smallest positive ratio.
𝑆1 row: 20 ÷ 2 = 10
𝑆2 row: 35 ÷ 5= 7 smallest positive ratio
𝑆2 row is the replaced row and 𝑆2 is the outgoing variable to be
replaced by 𝑥2 in the new table.
Next find the pivot element (5). Divide each value in the replace 𝑆2 row
(table I) by the pivot element 5 to get the value of the replacing 𝑥2 row.
35 ÷ 5 = 7 5÷5=1 1 ÷ 5= 1/5
1 ÷ 5 = 1/5 0÷5=0
Department of Accountancy - Management Science
Source: Quantitative Techniques for Business Management
by Asuncion C. Mercado del Rosario
3.4 LP MAXIMIZATION PROBLEMS: SIMPLEX METHOD
Example 3.4.1
Compute the remaining row: 𝐒𝟏 row
[values in old row] – [intersectional values of old row] *
[corresponding values in replacing row] = [values in new row]

20 – 2 (7) = 20 – 14 = 6 1 – 2 (0) = 1
1 – 2 (1/5) = 1 – 2/5 = 3/5 0 – 2 (1/5) = -2/5
2 – 2 (1) = 2 – 2 = 0

Then, develop Table II.

Department of Accountancy - Management Science
Source: Quantitative Techniques for Business Management
by Asuncion C. Mercado del Rosario
3.4 LP MAXIMIZATION PROBLEMS: SIMPLEX METHOD
Example 3.4.1 TABLE II (Second Feasible Solution)

Source: Quantitative Techniques for Business Management

𝑪𝒋 P 30 P 70 0 0

Department of Accountancy - Management Science

𝑪𝒊

by Asuncion C. Mercado del Rosario

Solution Solution 𝒙𝟏 𝒙𝟐 𝑺𝟏 𝑺𝟐
Variables Values
0 𝑺𝟏 6 3/5 0 1 - 2/5

70 𝒙𝟐 7 1/5 1 0 1/5

𝒁𝒋 490 14 70 0 14

𝑪𝒋 − 𝒁 𝒋 16 0 0 -14

Outgoing row Optimum column

3.4 LP MAXIMIZATION PROBLEMS: SIMPLEX METHOD
Example 3.4.1
Then Compute the 𝑍𝑗 row and write in Table II.

Source: Quantitative Techniques for Business Management

Department of Accountancy - Management Science
Solution Values:

by Asuncion C. Mercado del Rosario

𝑍𝑗 = 0 (6) + 70 (7) = 490
𝑋1 : 𝑍𝑗 = 0 (3/5) + 70 (1/5) = 14
𝑋2 : 𝑍𝑗 = 0 (0) + 70 (1) = 70
𝑆1 : 𝑍𝑗 = 0 1 + 70 (0) = 0
𝑆2 : 𝑍𝑗 = 0 (-2/5) + 70 (1/5) = 14

Compute the 𝐶𝑗 − 𝑍𝑗 row and write in Table II.

For: 𝑋1 : 30 − 14 = 16 For: 𝑆1 : 0 − 0 = 0
𝑋2 : 70 − 70 = 0 𝑆2 : 0 − 14 = −14
3.4 LP MAXIMIZATION PROBLEMS: SIMPLEX METHOD
Example 3.4.1
• Since there is still a positive value in the 𝐶𝑗 − 𝑍𝑗 row of Table II, it means
that the solution can still be improved.
• The same procedure used to develop the second table is repeated to
develop the third solution.
1. Determine the entering variable. The entering variable in Table III is
𝑋1 , since the optimum column is the 𝑋1 column.
2. The outgoing variable is found as before by dividing the “solution
values” by the corresponding 𝑋1 column values and choosing the
smallest positive ratio.
𝑆1 row: 6 ÷ 3/5 = 6 x 5/3 = 10 (smallest)
𝑋2 row: 7 ÷ 1/5 = 7 x 5/1 = 35
Department of Accountancy - Management Science
Source: Quantitative Techniques for Business Management
by Asuncion C. Mercado del Rosario
3.4 LP MAXIMIZATION PROBLEMS: SIMPLEX METHOD
Example 3.4.1
• The outgoing variable is 𝑆1 to be replaced by the entering variable 𝑥1 .
• Compute the 𝑥1 row. Divide the values in the old 𝑆1 row (Table II) by the pivot
element (3/5).
For:
Solution values: 6 ÷ 3/5 = 10
𝑋1 : 3/5 ÷ 3/5 = 1 𝑆1 : 1 ÷ 3/5 = 5/3
𝑋2 : 0 ÷ 3/5 = 0 𝑆2 : -2/5 ÷ 3/5 = -2/3
Compute the remaining row: 𝑋2 row:
Solution values: 7 – 1/5 (10) = 5
𝑋1 : 1/5 – 1/5 (1) = 0 𝑆1 : 0 – 1/5 (5/3) = -1/3
𝑋2 : 1 – 1/5 (0) = 1 𝑆2 : 1/5 – 1/5 (-2/3) = 1/3
Construct Table III Source:
Department of Accountancy - Management Science
Quantitative Techniques for Business Management
by Asuncion C. Mercado del Rosario
3.4 LP MAXIMIZATION PROBLEMS: SIMPLEX METHOD
Example 3.4.1 TABLE III ( Final Solution)
𝑪𝒋 P 30 P 70 0 0
𝑪𝒊
Solution Solution 𝑿𝟏 𝑿𝟐 𝑺𝟏 𝑺𝟐
Variables Values
30 𝑿𝟏 10 1 0 5/3 -2/3

70 𝑿𝟐 5 0 1 -1/3 1/3

𝒁𝒋 650 30 70 80/3 10/3

𝑪𝒋 − 𝒁𝒋 0 0 -80/3 -10/3
Department of Accountancy - Management Science
Source: Quantitative Techniques for Business Management
3.4 LP MAXIMIZATION PROBLEMS: SIMPLEX METHOD
Example 3.4.1
Compute the 𝑍𝑗 row and write in Table II.
Soln. values: 30 (10) + 70 (5) = 650
𝑋1 : 30 (1) + 70 (0) = 30 𝑆1 : 30 (5/3) + 70 (-1/3) = 80/3
𝑋2 : 30 (0) + 70 (1) = 70 𝑆2 : 30 (-2/3) + 70 (1/3) = 10/3
Then compute the 𝐶𝑗 − 𝑍𝑗 row.
𝑋1 : 30 – 30 = 0 𝑆1 : 0 – 80/3 = -80/3
𝑋2 : 70 – 70 = 0 𝑆2 : 0 – 45/3 = -45/3

Department of Accountancy - Management Science

Source: Quantitative Techniques for Business Management
by Asuncion C. Mercado del Rosario
3.4 LP MAXIMIZATION PROBLEMS: SIMPLEX METHOD
Example 3.4.1
• The complete Table III is shown to have no more positive values in the 𝐶𝑗 −
𝑍𝑗 row which means that the solution can not be improved further. Thus, Table
III is the final solution with 𝑋1 = 10 and 𝑋2 = 5 at a profit of P650.
However, these values are still to be checked with the constraints.
Check:
X1 + 2X2 ≤ 20 X1 + 5X2 ≤ 35
10 + 2 (5) ≤ 20 10 + 5 (5) ≤ 35
20 ≤ 20 35 ≤ 35
• DECISION:
The company should manufacture and sell 10 units of the standard model and
5 units of the electric model to maximize profit to P650 per production
period.
Department of Accountancy - Management Science
Source: Quantitative Techniques for Business Management
by Asuncion C. Mercado del Rosario
3.4 LP MAXIMIZATION PROBLEMS: SIMPLEX METHOD
FURTHER ANALYSIS OF THE FINAL SIMPLEX TABLEAU
• The solution variable column of our example does not contain the slack
variable S1 and S2, which means that the time capacities of both machines
A and B were fully utilized indicating that they were scarce resources.
• The negative values in the Cj – Zj row are significant in decision- making.
Take for example, the -80/3 under S1 column. This means that
introducing one unit of S1 (one hour of slack time for machine A) into the
solution will decrease profit by P80/3. Consequently, increasing the time
capacity of machine A by one hour (from 20 to 21) will increase the profit
by P80/3, assuming all other restrictions remain the same.

Department of Accountancy - Management Science

Source: Quantitative Techniques for Business Management
by Asuncion C. Mercado del Rosario
3.4 LP MAXIMIZATION PROBLEMS: SIMPLEX METHOD
Example 3.4.2
• A cannery has formulated a linear programming model to help in planning
how to can the current harvest of pineapples. There are two finished
products – canned pineapple tidbits. There are also two grades of
pineapple- grade A and grade B. Slices are canned entirely from grade A
pineapples and tidbits are of a mixture of grade A and B pineapples.

Department of Accountancy - Management Science

Source: Quantitative Techniques for Business Management
by Asuncion C. Mercado del Rosario
3.4 LP MAXIMIZATION PROBLEMS: SIMPLEX METHOD
Example 3.4.2
The LP model set up by the cannery is as follows:
• Decision Variables:
Let x1 = no. of kilos of grade A pineapples used in slices
x2 = no. of kilos of grade A pineapples used in tidbits
x3 = no. of kilos of grade B pineapples used in tidbits
• Objective Function:
max. P = P150X1 + P120X2 + P120X3
• Subject to: Explicit Constraints
X1 < 180 slices demand
X2 + X3 < 125 tidbits demand
X1 + X2 < 225 grade A pineapple available
X3 < 75 grade B pineapple available
-4 X2 + X3 < 0 tidbits quality mix
X1 ; X 2 ; X 3 > 0 implicit constraints
Department of Accountancy - Management Science
Source: Quantitative Techniques for Business Management
by Asuncion C. Mercado del Rosario
3.4 LP MAXIMIZATION PROBLEMS: SIMPLEX METHOD
Example 3.4.2
Solution:
Modify the objective function and explicit constraints.
Objective Function:
max. P= 150 X1 + 120 X2 + 120 X3 + OS1 + OS2 + OS3 + OS4 + OS5
Subject to:
X1 + S1 + OS2 + OS3 + OS4 + OS5 = 180
X2 + X3 + S2 + OS1 + OS3 + OS4 + OS5 = 125
X1 + X2 + S3 + OS1 + OS2 + OS4 + OS5 = 225
X3 + S4 + OS1 + OS2 + OS3 + OS5 = 75
-4X2 + X3 + S5 + OS1 + OS2 + OS3 + OS4 + OS5 = 0
Department of Accountancy - Management Science
X1 ; X2 ; X3 > = 0 Source: Quantitative Techniques for Business Management
by Asuncion C. Mercado del Rosario
3.4 LP MAXIMIZATION PROBLEMS: SIMPLEX METHOD
Example 3.4.2 Table I
Cj P150 P120 P120 0 0 0 0 0

Source: Quantitative Techniques for Business Management

Cj

Department of Accountancy - Management Science

Solution Solution X1 X2 X3 S1 S2 S3 S4 S5

by Asuncion C. Mercado del Rosario

Variable Values
0 S1 180 1 0 0 1 0 0 0 0

0 S2 125 0 1 1 0 1 0 0 0

0 S3 225 1 1 0 0 0 1 0 0

0 S4 75 0 0 1 0 0 0 1 0

0 S5 0 0 -4 1 0 0 0 0 1

Zj 0 0 0 0 0 0 0 0 0

Cj-Zj 150 120 120 0 0 0 0 0

Outgoing row Optimum Column

3.4 LP MAXIMIZATION PROBLEMS: SIMPLEX METHOD
Example 3.4.2
• All values in the Zj row are zero since all the coefficients in the objective
function are zero. The Cj - Zj is computed directly in Table I.
The optimum column is the X1 column, the entering variable is X1 .
Determine the outgoing variable:
For: S1 : 180/1 = 180 (smallest)
S2 : 125/0 = undefined
S3 : 225/1 = 225
S4 : 75/0 = undefined
S5 : 0/0 = 0
• The outgoing or replaced row is the S1 row. Then compute the values of the
replacing X1 row in the new solution. The pivot element is 1.

Department of Accountancy - Management Science

Source: Quantitative Techniques for Business Management
by Asuncion C. Mercado del Rosario
3.4 LP MAXIMIZATION PROBLEMS: SIMPLEX METHOD
Example 3.4.2
• The outgoing or replaced row is the S1 row. Then compute the values of
the replacing X1 row in the new solution. The pivot element is 1.
For solution values: 180/1= 180 S2: 0/1=0
X1 : 1 / 1 = 1
X2 : 0 / 1 = 0
X3 : 0 / 1 = 0
S1 : 1 / 1 = 1
S2 : 0 / 1 = 0
S3 : 0 / 1 = 0
S4 : 0 / 1 = 0
S5 : 0 / 1 = 0 Department of Accountancy - Management Science
Source: Quantitative Techniques for Business Management
by Asuncion C. Mercado del Rosario
3.4 LP MAXIMIZATION PROBLEMS: SIMPLEX METHOD
Example 3.4.2
• Based on the values of the replacing row compute the values of the remaining rows

Source: Quantitative Techniques for Business Management

for Table II.

Department of Accountancy - Management Science

S2 : S3 : S4 S5

by Asuncion C. Mercado del Rosario

125-0 (180) = 125 225-1 (180) = 45 75 0
0-0 (1) = 0 1-1 (1) = 0 0 0
1-0 (0) = 1 1-1 (0) = 1 0 -4
1-0 (0) = 1 0-1 (0) = 0 1 1
0-0 (1) = 0 0-1 (1) = -1 0 0
1-0 (0) = 1 0-1 (0) = 0 0 0
0-0 (0) = 0 1-1 (0) = 1 0 0
0-0 (0) = 0 0-1 (0) = 0 1 0
0-0 (0) = 0 0-1 (0) = 0 0 1

• All the values in the Z1 row are zero since all the coefficients in the objective function
column are zero.
The Cj- Zj row values are computed directly in Table II.
3.4 LP MAXIMIZATION PROBLEMS: SIMPLEX METHOD
Example 3.4.2 Table II
Cj P150 P120 P120 0 0 0 0 0

Source: Quantitative Techniques for Business Management

Ci

Department of Accountancy - Management Science

Solution Solution X1 X2 X3 S1 S2 S3 S4 S5

by Asuncion C. Mercado del Rosario

Variable Values
150 X1 180 1 0 0 1 0 0 0 0

0 S2 125 0 1 1 0 1 0 0 0

0 S3 45 0 1 0 0 0 1 0 0

0 S4 75 0 0 1 0 0 0 1 0

0 S5 0 0 -4 1 0 0 0 0 1

Zj 27000 150 0 0 150 0 0 0 0

Cj-Zj 0 120 120 -150 0 0 0 0

Outgoing row Optimum Column

Incoming row
3.4 LP MAXIMIZATION PROBLEMS: SIMPLEX METHOD
Example 3.4.2
• This is a degenerate * situation. In cases where a tie occurs in the

Source: Quantitative Techniques for Business Management

Department of Accountancy - Management Science
outgoing variable, pick one arbitrarily. If cycling occurs and a similar

by Asuncion C. Mercado del Rosario

solution reappears as in the table, then go back to where the tie occurred
an select one of the other tied examples.
In this example, let us choose X3 the entering variable.
Then determine the outgoing variable:
X1 : 180/0 = undefined
S2 : 125/1 = 125
S3 : 45/ 0 = Undefined
S4 : 75/1 = (smallest)
S5 : 0/1 = 0

The outgoing variable is S4 ., to be replaced by x3 . The pivot is 1.

3.4 LP MAXIMIZATION PROBLEMS: SIMPLEX METHOD
Example 3.4.2
• This is a degenerate * situation. In cases where a tie occurs in the
outgoing variable, pick one arbitrarily. If cycling occurs and a similar
solution reappears as in the table, then go back to where the tie occurred
an select one of the other tied examples.
• In this example, let us choose X3 the entering variable.
• Then determine the outgoing variable:
X1 : 180/0 = undefined
S2 : 125/1 = 125
S3 : 45/ 0 = Undefined
S4 : 75/1 = (smallest)
S5 : 0/1 = 0
• The outgoing variable is S4 ., to be replaced by x3 . The pivot is 1.
Department of Accountancy - Management Science
Source: Quantitative Techniques for Business Management
by Asuncion C. Mercado del Rosario
3.4 LP MAXIMIZATION PROBLEMS: SIMPLEX METHOD
Example 3.4.2
• Compute the X 3 (entering row).
75/1 = 75 1/1 = 1 0/1 = 0
0/1 = 0 0/1 = 0 1/1 = 1
0/1 = 0 0/1 = 0 0/1 = 0

• Compute for the remaining rows:

X1 : S2 : S3 : S5 :
180 50 45 0 - 1(75) = -75
1 0 0 0 - 1(0) = 0
0 1 1 -4 - 1(0) = -4
0 0 0 1 - 1(1) = 0
1 0 -1 0-1(0) = 0
0 1 0 0-1(0) = 0
0 0 1 0-1(0) = 0
0 -1 0 0-1(1) = -1
0 0 0 0-1(0) = 1
• Construct Table III Department of Accountancy - Management Science
Source: Quantitative Techniques for Business Management
by Asuncion C. Mercado del Rosario
3.4 LP MAXIMIZATION PROBLEMS: SIMPLEX METHOD
Table III
Example 3.4.2
Cj
P150 P120 P120 0 0 0 0 0

Source: Quantitative Techniques for Business Management

Cj

Department of Accountancy - Management Science

Solution Solution X1 X2 X3 S1 S2 S3 S4 S5

by Asuncion C. Mercado del Rosario

Variable Values
150 X1 180 1 0 0 1 0 0 0 0
0 S2 50 0 1 0 0 1 0 -1 0
0 S3 45 0 1 0 0 0 1 0 0
120 X3 75 0 0 1 0 0 0 1 0
0 S5 -75 0 -4 0 0 0 0 -1 1
Zj 36,000 150 0 120 150 0 0 120 0
Cj-Zj 0 120 0 -150 0 0 -120 0

Incoming row Outgoing row Optimum Column

3.4 LP MAXIMIZATION PROBLEMS: SIMPLEX METHOD
Example 3.4.2
• Compute Zj row values and enter in Table III.

Source: Quantitative Techniques for Business Management

Department of Accountancy - Management Science
• Soln. values: 150(180) + 0(50) + 0(45) + 120(75) + 0(-75) = 36000

by Asuncion C. Mercado del Rosario

X1: 150(1) + 0 (0) + 0 (0) + 120(0) + 0(0) = 150
X2: 150(0) + 0 (1) + 0 (1) + 120(0) + 0(-4) = 0
X3: 150(0) + 0 (0) + 0 (0) + 120(1) + 0(0) = 120
S1: 150(1) + 0 (0) + 0 (-1) + 120(0) + 0(0) = 150
S2: 150(0) + 0 (1) + 0 (0) + 120(0) + 0(0) = 0
S3: 150(0) + 0 (0) + 0 (1) + 120(0) + 0(0) = 0
S4: 150(0) + 0 (-1) + 0 (0) + 120(1) + 0(-1) = 120
S5: 150(0) + 0 (0) + 0 (0) + 120(0) + 0(1) = 0
• The values for Cj – Zj row are computed directly in Table II.
3.4 LP MAXIMIZATION PROBLEMS: SIMPLEX METHOD
Example 3.4.2
• Table III is not yet the optimal solution, so continue solving. The optimum
column of Table III is X2 column. The entering variable is X2.
Determine the outgoing variable.
X1: 180/0 = 180 undefined
S2: 50/1= 50
S3: 45/1 = 45
X3: 75/0 = undefined
S5: -5/0-4 =18.75 (smallest)
The outgoing variable is S5 to be replaced by X2.
• Compute for the values of the entering x2 row in Table IV. The pivot element
is -4.
-75/-4= 18.75 0/-4 = 0 0/-4 = 0
0/-4 = 0 0/-4 = 0 -1/-4 = 1/4
-4/-4 = 1 0/-4 = 0 1/-4 = -1/4
Department of Accountancy - Management Science
Source: Quantitative Techniques for Business Management
by Asuncion C. Mercado del Rosario
3.4 LP MAXIMIZATION PROBLEMS: SIMPLEX METHOD
Example 3.4.2
• Compute the remaining rows values and write on Table IV.

Source: Quantitative Techniques for Business Management

Department of Accountancy - Management Science
X1 S2 S3 X3:

by Asuncion C. Mercado del Rosario

180 50-1(75/4)=125/4 50-1(75/4)=105/4 75
1 0-1(0) = 0 0-1(0) = 0 0
0 1-1(1) = 0 1-1(1) = 0 0
0 0-1(1) = 0 0 -1(1) = 0 1
1 0-1(0) = 0 0-1(0) = 0 0
0 0-1(0) = 0 0-1(0) = 0 0
0 0-1(0) = 1 0-1(0) = 1 0
0 0-1(1/4) = 5/4 0-1(1/4) = -1/4 1
0 0-1(-1/4) = 1/4 0-1(-1/4) = 1/4 0
3.4 LP MAXIMIZATION PROBLEMS: SIMPLEX METHOD
TABLE IV
Example 3.4.2
Cj 150 120 120 0 0 0 0 0
Ci

Solution Solution
X₁ X₂ X₃ S₁ S₂ S₃ S₄ S₅
Variable Values

150 X₁ 180 1 0 0 1 0 0 0 0
0 S₂ 125/4 0 0 0 0 1 0 -5/4 1/4
0 S₁ 105/4 0 0 0 -1 0 1 - 1/4 1/4
120 X₃ 75 0 0 1 0 0 0 1 0
120 X₂ 75/4 0 1 0 0 0 0 1/4 - 1/4
Zj 38250 150 120 120 150 0 0 150 -30
Cj - Zj 0 0 0 -150 0 0 -150 30
Department of Accountancy - Management Science
Source: Quantitative Techniques for Business Management
by Asuncion C. Mercado del Rosario
3.4 LP MAXIMIZATION PROBLEMS: SIMPLEX METHOD
Example 3.4.2
• Table IV is not yet the optimal solution.
• The entering variable for table V is S5., and the outgoing variable is S3.
The pivot element is 1/4.
• Compute S5 row (row values).
(105/4) / (1/4) = 75 0 / (1/4) = 1 1 / (1/4) = 4
0 / (1/4) = 0 -1 / (1/4) = - 4 (-1/4) / (1/4) = 1
0 / (1/4) = 0 0 / (1/4) = 0 (1/4) / (1/4) = 1

Department of Accountancy - Management Science

Source: Quantitative Techniques for Business Management
by Asuncion C. Mercado del Rosario
3.4 LP MAXIMIZATION PROBLEMS: SIMPLEX METHOD
Example 3.4.2
• Compute the remaining rows values and write on Table V.

Source: Quantitative Techniques for Business Management

Department of Accountancy - Management Science
X1 S2 X2 X3:

by Asuncion C. Mercado del Rosario

180 125/4 – ¼(105) = 5 75/4 – (-1/4) (105) = 45 75
1 0 – ¼(0) =0 0-(-1/4)(0) = 0 0
0 0 – ¼(0) =0 1-(-1/4)(0) = 1 0
0 0 – ¼(0) =0 0-(-1/4)(0) = 0 1
1 0 – ¼(0) =0 0-(-1/4)(-4) = -1 0
0 1 – ¼(0) =1 0-(-1/4)(0) = 0 0
0 0 – ¼(4) = -1 0-(-1/4)(4) = 1 0
0 5/4- ¼ (-1) = -1 ¼- (-1/4) (-1) = 0 0
0 ¼ -1/4)(1) =0 -1/4 -(-1/4) (1) = 0 0
3.4 LP MAXIMIZATION PROBLEMS: SIMPLEX METHOD
Example 3.4.2
Cj
Ci 150 120 120 0 0 0 0
0
Solution Solution
X₁ X₂ X₃ S₁ S₂ S₃ S₄
Variable Values S₅
150 X₁ 180 1 0 0 1 0 0 0 0
0 S₂ 5 0 0 0 0 1 -1 -1 0
0 S₅ 105 0 0 0 -4 0 4 -1 1
120 X₃ 75 0 0 1 0 0 0 1 0
120 X₂ 45 0 1 0 -1 0 0 0 0
Zj 41,400 150 120 120 30 0 120 120 0
Cj - Zj 0 0 0 -150 0 -120 -120 0
Department of Accountancy - Management Science
Source: Quantitative Techniques for Business Management
by Asuncion C. Mercado del Rosario
3.4 LP MAXIMIZATION PROBLEMS: SIMPLEX METHOD
Example 3.4.2
• Table V is the final solution since the solution can not be improved anymore.
Check the solution with the constraints.
Check:
X1 < 180 X1 + X2 < 225
180 < 180 180 + 45 < 225
X2 + X3 < 125 225 < 225
45 + 75 + < 125 X3 < 75
120 < 125 75 < 75
-4X2 + X3 < 0
-4(45) + 75 < 0
-180 +75 < 0
-105 < 0
• All the explicit constraints are satisfied.
Department of Accountancy - Management Science
Source: Quantitative Techniques for Business Management
by Asuncion C. Mercado del Rosario
3.4 LP MAXIMIZATION PROBLEMS: SIMPLEX METHOD
Example 3.4.2
• Decision:
The cannery should consume 180 kilos of grade A pineapple for slices 45
kilos of grade A and 75 kilos of grade B pineapple for tidbits to maximize
the profit to P 41,400 during the current pineapple harvest period.

Department of Accountancy - Management Science

Source: Quantitative Techniques for Business Management
by Asuncion C. Mercado del Rosario
3.5 LP MINIMIZATION PROBLEM: SIMPLEX METHOD
Example 3.5.1
The final product has a requirement that it must weigh exactly 150
kilos. The two raw materials used are A costing P2 per unit and B
costing P8 per unit. At least 14 units of B and no more than 20 units A
must be used. Each units of A weighs 5 kilos and each units of B
weighs 10 kilos. How much of each type of raw materials should be
used for each unit of a final product if the objective is to minimize
cost?

Department of Accountancy - Management Science

Source: Quantitative Techniques for Business Management
by Asuncion C. Mercado del Rosario
3.5 LP MINIMIZATION PROBLEM: SIMPLEX METHOD
Example 3.5.1
Solution
Decision Variables:
Let X1 = no. of units of ingredients A
X2 = no. of units of ingredients B
Objective Function:
min. C = 2X1 + 8X2
Subject to: Convert
5X1 + 10X2 = 150 5X1 + 10X2+ A1 = 150
X1 ≤ 20 X1 + S1 = 20
X2 ≥ 14 X2 – S2 + A2 = 14
x1 ; x2 ≥ 0
Department of Accountancy - Management Science
Source: Quantitative Techniques for Business Management
by Asuncion C. Mercado del Rosario
3.5 LP MINIMIZATION PROBLEM: SIMPLEX METHOD
Example 3.5.1
Solution
Modify the objective function and constraints:
Objective Function:
Min. C = 2X1 + 8X2 + 0S1 + 0S2 + MA1 + MA2
Subject to:
5X1 + 10X2 + A1 + 0S1 + 0S2 + 0A2 = 150
X1 + 0X2 + S1 + 0A1 + 0S2 + 0A2 = 20
0X1 + X2 - S2 + A2 + 0A1 + 0S1 = 14
X1 ≥ 0 ; X2 ≥ 0
Develop the initial feasible solution.
Department of Accountancy - Management Science
Source: Quantitative Techniques for Business Management
by Asuncion C. Mercado del Rosario
3.5 LP MINIMIZATION PROBLEM: SIMPLEX METHOD
Example 3.5.1 Table I
Ci Cj 2 8 M 0 M 0

Source: Quantitative Techniques for Business Management

Department of Accountancy - Management Science
Solution Solution

by Asuncion C. Mercado del Rosario

X1 X2 A1 S1 A2 S2
Variables Values

M A1 150 5 10 1 0 0 0

0 S1 20 1 0 0 1 0 0

M A2 14 0 1 0 0 1 -1

Zj 164M 5M 11M M 0 M -M

Cj - Zj 2 – 5M 8-11M 0 0 0 M

OPTIMUM COLUMN
3.5 LP MINIMIZATION PROBLEM: SIMPLEX METHOD
Example 3.5.1
Unlike in maximization, the optimum column in minimization is the
largest negative value in the Cj - Zj row. 8-11M is the largest negative
value. The entering variable is X2. (Let M=100).
Determine the outgoing variable.
A1: 150 / 10 = 15
S1: 20 / 0 = undefined
A2: 14 / 1 = 14 (smallest)
The outgoing variable is A2. Pivot element is 1.
Compute the entering X2 row:
14/1=14 1/1=1 0/1=0 -1/1=-1
0/1= 0 0/1=0 1/1=1
Department of Accountancy - Management Science
Source: Quantitative Techniques for Business Management
by Asuncion C. Mercado del Rosario
3.5 LP MINIMIZATION PROBLEM: SIMPLEX METHOD
Example 3.5.1
Compute the remaining rows:
A1: S1:
150-10(14)=10 20-0(14)=20
5-10 (0)= 5 1-0 (0)= 1
10-10 (1)= 0 0-0 (1)= 0
1-10 (0)= 1 0-0 (0)= 0
0-10 (0)= 0 1-0 (0)= 1
0-10 (1)= -1 0-0 (1)= 0
0-10 (-1)= 10 0-0 (-1)= 0

Department of Accountancy - Management Science

Source: Quantitative Techniques for Business Management
by Asuncion C. Mercado del Rosario
3.5 LP MINIMIZATION PROBLEM: SIMPLEX METHOD
Example 3.5.1 Table II

Source: Quantitative Techniques for Business Management

Ci Cj 2 8 M 0 M 0

Department of Accountancy - Management Science

by Asuncion C. Mercado del Rosario

Solution Solution
variables values
X1 X2 A1 S1 A2 S2

M A1 10 5 0 1 0 -10 10

0 S1 20 1 0 0 1 0 0

8 X2 14 0 1 0 0 1 -1

112+10
Zj 5M 8 M 0 8-10M 10M-8
M

Cj-Zj 2-5M 0 0 0 -8+11M 8-10M

INCOMING ROW ↑
OPTIMUM COLUMN
OUTGOING ROW
3.5 LP MINIMIZATION PROBLEM: SIMPLEX METHOD
Example 3.5.1
Compute the Zj row values and write on Table II.

The Cj-Zj values are computed directly in Table II.

Table II is not the optimal solution yet.

Department of Accountancy - Management Science

Source: Quantitative Techniques for Business Management
by Asuncion C. Mercado del Rosario
3.5 LP MINIMIZATION PROBLEM: SIMPLEX METHOD
Example 3.5.1 Table III

Source: Quantitative Techniques for Business Management

Ci Cj 2 8 M 0 M 0

Department of Accountancy - Management Science

by Asuncion C. Mercado del Rosario

Solution
Solution
variable X1 X2 A1 S1 A2 S2
Values
s

0 S2 1 ½ 0 1/10 0 -1 1

1 S1 20 1 0 0 0 0 0

8 X2 15 ½ 1 1/10 0 0 0

Zj 120 4 8 8/10 0 0 0

Cj-Zj -2 0 M-8/10 0 M 0

ENTERING ROW OPTIMUM COLUMN

3.5 LP MINIMIZATION PROBLEM: SIMPLEX METHOD
Example 3.5.1
The Cj-Zj values are computed directly in the Table.

The Cj-Zj values Table III shows that the solution can still be improved.

The optimum column is X1 and the entering variable is X1.

Department of Accountancy - Management Science

Source: Quantitative Techniques for Business Management
by Asuncion C. Mercado del Rosario
3.5 LP MINIMIZATION PROBLEM: SIMPLEX METHOD
Example 3.5.1 Table IV (final solution)
Ci Cj 2 8 M 0 M 0

Solution Solution
X1 X2 A1 S1 A2 S2
variables Values

2 X1 2 1 0 1/5 0 -2 2

0 S1 18 0 0 -1/5 0 2 -2

8 X2 14 0 1 0 0 1 -1

Zj 116 2 8 2/5 0 4 -4

Cj-Zj 0 0 M-2/5 0 M-4 4

Department of Accountancy - Management Science
Source: Quantitative Techniques for Business Management
by Asuncion C. Mercado del Rosario
3.5 LP MINIMIZATION PROBLEM: SIMPLEX METHOD
Example 3.5.1
Compute for the Cj-Zj values directly in Table. The solution can not be improved
anymore, so Table IV is the final solution with X1 = 2 and X2 = 14.

Check: 5X1 + 10X2 = 150 X1 ≤ 20

5(2) + 10(14) = 150 2 ≤ 20
150 = 150 X2 ≥ 14
14 ≥ 14
Decision:
The optimum solution is to use 2 kilos of A and 14 kilos of B to minimize the
cost to P116.
Department of Accountancy - Management Science
Source: Quantitative Techniques for Business Management
by Asuncion C. Mercado del Rosario
3.6.4. DEGENERACY
• Degeneracy occurs when one or more of the solution variables equal
zero.
• It results when two or more variables are tied in the selection of entering
variable in the simplex procedure.
• When degeneracy occurs, it is theoretically possible for the simplex
procedure to cycle back former solutions and never reach the optimum.
• In actual practice, the cycling back to former solutions rarely occurs, and
computer programs generally have no difficulty reaching the optimum
even degeneracy occurs.
• There are now several computer packages available for linear
programming such as LINDO.
Department of Accountancy - Management Science
Source: Quantitative Techniques for Business Management
by Asuncion C. Mercado del Rosario
3.7. LIMITATIONS OF LINEAR PROGRAMMING
Although LP has proven to be a useful and powerful tool in solving large and
complex problems in business, there are limitations.
1. There are no guarantee that LP will give integer as solutions. For example, a
solution may give 7.56 units. In many instances, rounding off would give
reasonably good solutions, but, in other situations such answer may be poor.
2. Another limitations of LP is that uncertainty is not allowed. The model may
assume values for constraints requirements when in reality such values may
be unknown.
3. Another limitation is the assumption of linearity. Sometimes the objective
function or the constraints are not linearly related to the variables.
As a whole, LP model is very useful to business since it provides the manager not
just with the optimal solution, but also with a variety of information that can give
economic insight about the problem being sold.

Department of Accountancy - Management Science

Source: Quantitative Techniques for Business Management
by Asuncion C. Mercado del Rosario
REFERENCES:

Management Science/ Quantitative Techniques for

Business Management by Asuncion C. Mercado del
Rosario

Department of Accountancy - Management Science

Source: Quantitative Techniques for Business Management
by Asuncion C. Mercado del Rosario
THANK YOU
STAY SAFE