Management Science Module 4 Linear Programming The Simplex Maximization Method
Management Science Module 4 Linear Programming The Simplex Maximization Method
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Subject : Management Science
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Activity
As we start with this lesson, please answer the question below:
Why is it important to maximize profits?
Analysis
In classical economic theory, firms are expected to seek for profit maximization.
Maximizing profits will lead into the following:
- The entity is being able to pay higher salaries and wages to its workers
- It can generate cash flows which can be spent in research and development. Intensive
research and development can greatly benefit the consumers. Through it, the entity
can provide products which are responsive to the needs and demands of its
customers/clients.
- It will help in building up savings, which can eventually help the firm survive any forms
of economic downturn, just like what is happening during the pandemic.
- For firms who are listed in the stock market, publishing big profits will lead to higher
market value of shares.
There are many other positive things that are brought by maximizing profits, thus,
it is very important for managers to know how to utilize effective tools to achieve it.
Linear programming is one of these tools. Linear programming has been discussed in the
previous module, however module three concentrated in graphical method. This time,
module 4 will look into the Simplex method.
Abstraction
1. Simplex Method
a. The simplex method of linear programming was developed by George B. Dantzig
of Stanford University.
b. It is a repetitive optimizing technique.
c. It repeats the process of mathematically removing from an extreme point to
another extreme point (in the graphical method) until an optimal solution is
reached.
d. Unlike the graphical method, simplex can handle an infinite number of variables.
Step 3: Enter the numerical coefficients and variables in the simplex table.
Variable column
Constant column
Objective coefficients row
Cj 80 60 0 0
Prod Qty
x y S1 S2 Variable row
0 S1 30 2 1 1 0
0 S2 24 1 2 0 1 Constraints coefficients
Zj 0 0 0 0 0
Cj-Zj 80 60 0 0
The initial table should begin with zero contributions to profit, entered in the C j
column. Since the corresponding variables (with zero profit contribution) are S 1
and S2, then these variables should be the ones entered in the product column.
We must add two or more rows in the table, the Zj and Cj – Zj row is obtained
by multiplying the profit contribution in Cj column by each of the coefficients in
the constraints, and then add their products. Hence:
0 (30 2 1 1 0) = 00000
0 (24 1 2 0 1) = 00000
Zj = 00000
To compute for Cj – Zj row, subtract the entries in Zj row from Cj row entries.
Cj 80 60 0 0
Zj - (0 0 0 0)
Ci - Zj 80 60 0 0
INITIAL TABLE:
80 60 0 0
Cj Prod Qty
x y S1 S2
0 S1 30 2 1 1 0 Pivotal Row /Outgoing
0 S2 24 1 2 0 1
Zj 0 0 0 0 0
Cj-Zj 80 60 0 0
Computing for the pivotal row: (Qty ÷ corresponding figure under the optimum
column/entering variable)
S1 row: 30 ÷ 2 = 15
S2 row: 24 ÷ 1 = 24
Least quotient: exclude in the computation those rows with zero or negative
values
Entering The top of the most positive column (for maximization problems) in
Variable the Cj-Zj.
This will replace the Cj in the outgoing variable in the next table
Pivotal Row Smaller quotient when qty is divided by entering variable.
Note: in looking for pivotal row, the divisor must be non-zero and
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non-negative
The pivotal row contains the pivot. It is the number which is boxed
in twice
The pivot is the number which will divide all entries in the pivotal
row (the goal is to put the pivot at 1 in the next table)
The item adjacent to the pivot should be zeroed out in the next table
Outgoing Prod of the pivotal row
variable
The variable found at the top of the optimum column should be the entering variable
or incoming variable and the variable to the left of the pivotal row is the outgoing
variable. The entry encircled twice is called the pivot
SECOND TABLE
The entries in the NEXT TABLE –
Pivot should be equal to 1 by dividing all elements by the pivot
The figures below or above the pivot should be 0 by multiplying all
elements with additive inverse (eg. For positive 1, multiply with negative 1;
for negative 1, multiply positive 1)
80 60 0 0
Cj Prod Qty
x y S1 S2
80 x 15 1 ½ ½ 0 Replacing Row
0 S2 9 0 3/2 -½ 1
Zj 1,200 80 40 40 0
Cj-Zj 0 20 -40 0
Get the pivotal row, by dividing the Qty with amounts under the entering variable
(get the smallest quotient)
X row : 15 ÷ ½ = 30
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S2 row: 9 ÷ 3/2 = 6 (this is the S2 row, thus, it will be the pivotal row)
The pivot is 3/2 since it was boxed in twice.
THIRD TABLE:
Incoming Entries: (Pivotal Row divided by the Pivot)
12
(9 0 3/2 – ½ 1) ÷ 3/2 = (6 0 1− )
33
1(
2 ) 2
−1 1
+ =0
3 ( 2 ) 2 6 3
−1 −1 1 4 2
+ = ∨
3( 2 )
2 −1 −1
+ 0=
3
80 60 0 0
Cj Prod Qty
x y S1 S2
80 x 12 1 0 2/3 -1/3
60 y 6 0 1 -1/3 2/3
Zj 1320 80 60 100 40
30 30
Cj-Zj 0 0 −100 −40
30 30
100 40
1320 80 60
30 30
Compute for Cj – Zj row:
Cj 80 60 0 0
100 40
Zj 80 60
30 30
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100 40
Cj – Zj 0 0− −
30 30
Since the last row has no more positive entry, then the third table is optimum.
Decision:
x = 12 y=6 Maximum Z = 1320
Maximize: Z=80 x+ 60 y+ 0 S 1+ 0 S 2
Subject to: 2 x+ y+ S 1=30
x +2 y+ S 2=24
x≥0; y ≥0
S1 ≥0 ; S2 ≥ 0
TABLE 1
80 60 0 0
Cj Prod Qty
x y S1 S2
0 S1 30 2 1 1 0
0 S2 24 1 2 0 1
Zj 0 0 0 0 0
Cj-Zj 80 60 0 0
TABLE 2
80 60 0 0
Cj Prod Qty
x y S1 S2
80 x 15 1 ½ ½ 0
0 S2 9 0 3/2 -½ 1
Zj 1,200 80 40 40 0
Cj-Zj 0 20 -40 0
TABLE 3
80 60 0 0
Cj Prod Qty
x y S1 S2
80 x 12 1 0 2/3 -1/3
60 y 6 0 1 -1/3 2/3
Zj 1,320 80 60 100 40
30 30
Cj-Zj 0 0 −100 −40
30 30
x1 ≥ 0; x2 ≥ 0
Solution:
Convert the third constraint to ≤ function by multiplying both sides with negative 1
−1 ( x 1+ x 2 ≥ 48 )−1
−x 1−x 2 ≤−48
50 20 0 0 0
Cj Prod Qty
x1 x2 S1 S2 S3
0 S1 20 1 0 1 0 0
0 S2 30 0 1 0 1 0
0 S3 -48 -1 -1 0 0 1
Zj 0 0 0 0 0 0
Cj - Zj 50 20 0 0 0
Compute for Cj
0 (20 1 0 1 0 0) = 0 0 0 0 0 0
0 (30 0 1 0 1 0) = 0 0 0 0 0 0
0 (-48 -1 -1 0 0 1) = 0 0 0 0 0 0
Zj 0 0 0 0 0 0
TABLE 2
Incoming Variables (Computing the entries in the pivotal row):
- Since the pivot is already 1, no need to divide the pivotal row with the pivot
- Entries therefore: (20 1 0 1 0 0)
- New entries: (20 1 0 1 0 0) / 1(pivot)
50 20 0 0 0
Cj Prod Qty
x1 x2 S1 S2 S3
50 x1 20 1 0 1 0 0
0 S2 30 0 1 0 1 0
0 S3 -28 0 -1 1 0 1
Zj 1000 50 0 50 0 0
Cj - Zj 0 20 -50 0 0
Computing Cj - Zj
Cj 50 20 0 0 0
Zj (50 0 50 0 0)
0 20 -50 0 0
Locate the entering variable (the most positive, since it is maximization problem)
- Hence, in this case, the x2 column (most positive figure in the bottom – positive 20)
Locate the pivotal row (the least quotient, when qty is divided by the figures below the
entering variable; provided that the divisor is not negative nor zero)
- Hence, the computation is as follows
x1 - not part of the computation since the value of the divisor aligned in the
column selected above, is zero
S2 = 30 ÷1 = 30
S3 – not part of the computation since the value of the divisor aligned in the
column selected above, is negative
- Therefore , the pivotal row is S2 row and the pivot is 1
TABLE 3
Computing for S2 row (soon to be x2 row in table 3) (entering variable – pivotal
row of the previous table)
- Remember the goal is to set the value at 1, since the value of the pivot is already 1, there
is no need to divide all the entries in this row by the pivot.
- Hence, entries for this row remains to be (30 0 1 0 1 0)
Cj 50 20 0 0 0
Prod Qty
x1 x2 S1 S2 S3
50 x1 20 1 0 1 0 0
20 X2 30 0 1 0 1 0
0 S3 2 0 0 1 1 1
Zj 1600 50 20 50 20 0
Cj - Zj 0 0 -50 -20 0
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The table is the optimal table since all the entries in the C j-Zj are already
either negative or zero.
PROBLEM 3:
Maximize: 5X1 + 4X2
Subject to: 2X1 + X2 = 12
2X1 + 3X2 ≤ 24
2X1 + 9X2 ≥ 36
X1 ≥ 0; X2 ≥ 0
5 4 0 0 0
Cj Prod Qty
x1 x2 S1 S2 S3
0 S1 12 2 1 1 0 0
0 S2 24 2 3 0 1 0
0 S3 -36 -2 -9 0 0 1
Zj 0 0 0 0 0 0
Cj - Zj 5 4 0 0 0
Locate the entering variable (the most positive, since it is maximization problem)
- Hence, in this case, the X1 column (most positive figure in the bottom – positive 5)
Locate the pivotal row (the least quotient, when qty is divided by the figures below
the entering variable; provided that the divisor is not negative nor zero)
- Hence, the computation is as follows
S1 row = 12 ÷ 2 = 6
S2 row = 24 ÷ 2 =12
S3 row = not part of the computation since divisor is negative (-2)
- Therefore , the pivotal row is S1 row, since it has the least quotient and the pivot is 2
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TABLE 2:
Computing entries for S1 row, the pivotal row (soon to be X1 - the entering variable)
- Since the pivot is 2, and the goal is to make the pivot equal to 1 in the next table, thus,
all entries in this row shall be divided by 2(the pivot). The entries therefore are
(1 2 1 1 0 0) ÷2 = (6 1 1 1 0 0)
2 2 2
5 4 0 0 0
Cj Prod Qty
x1 x2 S1 S2 S3
5 X1 6 1 1 1 0 0
2 2
0 S2 12 0 2 -1 1 0
0 S3 -24 0 -8 1 0 1
Zj 30 5 5 5 0 0
2 2
Cj - Zj 0 3 −5 0 0
2 2
Locate the pivotal row (the least quotient, when qty is divided by the figures below
the entering variable; provided that the divisor is not negative nor zero)
- Hence, the computation is as follows
1
X1 row = 6 ÷ = 12
2
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S2 row = 12 ÷ 2 =6
S3 row = not part of the computation since divisor is negative (-8)
- Therefore , the pivotal row is S2 row, since it has the least quotient and the pivot is 2
TABLE 3
Computing the entries for S2 row (soon to be X2 – pivotal row)
- Since the pivot is still 2, and the goal is to make the pivot equal to one in the next
table, all old entries in the pivotal row shall be divided by 2.
- Hence, the entries should be:
(12 0 2 -1 1 0) ÷2 = (6 0 1 −1 1 0)
2 2
Cj 5 4 0 0 0
Prod Qty
x1 x2 S1 S2 S3
5 X1 3 1 0 3 −1 0
4 4
4 X2 6 0 1 −1 1 0
2 2
0 S3 24 0 0 -3 4 1
Zj 39 5 4 7 3 0
4 4
Cj - Zj 0 0 −7 −3 0
4 4
Decision:
X1 = 3; X2 = 6
Maximum: P39
Application
Write your answers in any clean piece of paper. Take a picture and submit it via Google
Classroom. Ensure that every sheet of your submission is labeled with your name.
Show your solution and box-in your final answer.
2. A poultry raiser plans to raise chicken, ducks and turkeys. He has room for only
200 birds and wishes to limit the number of turkeys to a maximum of 25, the
number of turkeys and ducks to a maximum of 100. His estimated profits are
P30, P25 and P120 on each chicken, duck and turkey respectively. How many of
each should he raise to maximize his profit?
***NOTHING FOLLOWS**