Quantitative Analysis for Management

Thirteenth Edition, Global Edition

Module 7
Linear Programming: The
Simplex Method

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Learning Objectives (1 of 2)
After completing this module, students will be able to:
M7.1 Convert LP constraints to equalities with slack,
surplus, and artificial variables.
M7.2 Set up and solve LP maximization problems with
simplex tableaus.
M7.3 Interpret the meaning of every number in a simplex
tableau.
M7.4 Set up and solve LP minimization problems with
simplex tableaus.

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Learning Objectives (2 of 2)
After completing this module, students will be able to:
M7.5 Recognize special cases such as infeasibility,
unboundedness, and degeneracy.
M7.6 Use the simplex tables to conduct sensitivity analysis.
M7.7 Construct the dual problem from the primal problem.
M7.8 Understand the importance of Karmarkar’s Algorithm
to the field of LP.

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Module Outline
M7.1 How to Set Up the Initial Simplex Solution
M7.2 Simplex Solution Procedures
M7.3 Surplus and Artificial Variables
M7.4 Solving Minimization Problems
M7.5 Special Cases
M7.6 Sensitivity Analysis with the Simplex Tableau
M7.7 The Dual
M7.8 Karmarkar's Algorithm

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Introduction
• Most real-life LP problems have more than two variables
and cannot be solved using the graphical procedure
• The simplex method
• Examines the corner points in a systematic fashion
– An iterative process
– Each iteration improves the value of the objective
function
– Yields optimal solution and other valuable economic
information

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How to Set Up the Initial Simplex Solution
• Flair Furniture Company problem
T = number of tables produced
C = number of chairs produced

Maximize profit = $70T + $50C (objective function)

subject to 2T + 1C ≤ 100 (painting hours constraint)

4T + 3C ≤ 240 (carpentry hours constraint)
T, C ≥ 0 (nonnegativity constraints)

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Converting the Constraints to Equations (1 of
3)

• Convert inequality constraints into an equation

• Add a slack variable to less-than-or-equal-to constraints
S1 = slack variable representing unused hours in the
painting department
S2 = slack variable representing unused hours in the
carpentry department
2T + 1C + S1 = 100
4T + 3C + S2 = 240

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Converting the Constraints to Equations (2 of
3)

• If Flair produces T = 40 and C = 10

2T + 1C + S1 = 100
2(40) + 1(10) + S1 = 100
S1 = 10

• Adding all variables into all equations,

2T + 1C + 1S1 + 0S2 = 100
4T + 3C + 0S1 + 1S2 = 240
T, C, S1, S2 ≥ 0

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Converting the Constraints to Equations (3 of
3)

• If Flair produces T = 40 and C = 10

Objective function becomes

Maximize profit = $70T + $50C + $0S1 + $0S2

• Adding all variables into all equations,

2T + 1C + 1S1 + 0S2 = 100
4T + 3C + 0S1 + 1S2 = 240
T, C, S1, S2 ≥ 0

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Finding an Initial Solution Algebraically (1 of
2)

FIGURE M7.1 Corner Points of the Flair Furniture Company

Problem

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Finding an Initial Solution Algebraically (2 of
2)

FIGURE M7.1 Corner Points of the Flair Furniture Company

Problem
Find a basic feasible
solution by setting all
real variables to 0

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The First Simplex Tableau (1 of 10)
• Constraint equations
– Place all of the coefficients into tabular form, the first
simplex tableau

QUANTITY
SOLUTION T C S1 S2 (RIGHT-HAND SIDE
MIX [RHS])
S1 2 1 1 0 100
S2 4 3 0 1 240

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The First Simplex Tableau (2 of 10)
TABLE M7.1 Flair Furniture’s Initial Simplex Tableau

ns
n
n

lu m

lum
lum

co

co

mn
co

ns bles
x

les

lu
it

mi

co
un

lum ia
ia b
on

co var

t
er

tan
ar
ti
tp

uc

ns
ac
ofi

al
od

Co
Re

Sl
Pr

Pr

Cj SOLUTION $70 $50 $0 $0

MIX T C S1 S2 QUANTITY Profit per unit row
$0 S1 2 1 1 0 100 Constraint equation
rows
$0 S2 4 3 0 1 240

blank Zj $0 $0 $0 $0 $0 Gross profit row

blank Cj − Zj $70 $50 $0 $0 $0 Net profit row

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The First Simplex Tableau (3 of 10)
• Begin the initial solution procedure at
the origin T   0 
• Slack variables are nonzero and are C   
  0 
the initial solution mix  S1  100 
• Values in the quantity column    
S2  240 
• Initial solution is the basic feasible
solution
• Variables in the solution mix, the basis, are called basic
variables

• Those not in the basis are called nonbasic variables

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The First Simplex Tableau (4 of 10)
• Optimal solution in vector form  T  30 
C   
• T and C are the final basic variables     40 
 S1   0 
• S1 and S2 are nonbasic variables    
S2   0 

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The First Simplex Tableau (5 of 10)
• Substitution rates

 2  1  1 0
Under T   Under C   Under S1   Under S2  
 4 3 0  1

– For every unit of T introduced into the current

solution, 2 units of S1 and 4 units of S2 must be
removed

For any variable ever to appear in the solution mix

column, it must have the number 1 someplace in its
column and 0s in every other place in that column

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The First Simplex Tableau (6 of 10)

For three less-than-or-equal-to constraints

SOLUTION MIX S1 S2 S3
S1 1 0 0
S2 0 1 0
S3 0 0 1

For any variable ever to appear in the solution mix

column, it must have the number 1 someplace in its
column and 0s in every other place

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The First Simplex Tableau (7 of 10)
• Adding the Objective Function

Cj $70 $50 $0 $0 blank

SOLUTION
MIX T C S1 S2 QUANTITY
$0 S1 2 1 1 0 100
$0 S2 4 3 0 1 240

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The First Simplex Tableau (8 of 10)
• The Zj and Cj − Zj Cj SOLUTION
MIX
$70
T
$50
C
$0
S1
$0
S2 QUANTITY
Rows $0 S1 2 1 1 0 100
$0 S2 4 3 0 1 240
blank
Zj $0 $0 $0 $0 $0
blank
Cj − Zj $70 $50 $0 $0 $0

– Compute the Zj value for each column of the initial solution by

multiplying the 0 contribution value of each number in the Cj
column by each number in that row and the jth column and
summing
Zj (for gross profit) = (Profit per unit of S1) × (Number of units of S1)
+ (Profit per unit of S2) × (Number of units of S2)
= $0 × 100 units + $0 × 240 units
= $0 profit
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The First Simplex Tableau (9 of 10)
• The Zj and Cj − Zj Cj SOLUTION
MIX
$70
T
$50
C
$0
S1
$0
S2 QUANTITY
Rows $0 S1 2 1 1 0 100
$0 S2 4 3 0 1 240
blank
Zj $0 $0 $0 $0 $0
blank
Cj − Zj $70 $50 $0 $0 $0

Zj (for column T) = ($0)(2) + ($0)(4) = $0

Zj (for column C) = ($0)(1) + ($0)(3) = $0
Zj (for column S1) = ($0)(1) + ($0)(0) = $0
Zj (for column S2) = ($0)(0) + ($0)(1) = $0

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The First Simplex Tableau (10 of 10)
• The Zj and Cj − Zj Cj SOLUTION
MIX
$70
T
$50
C
$0
S1
$0
S2 QUANTITY
Rows $0 S1 2 1 1 0 100
$0 S2 4 3 0 1 240
blank
Zj $0 $0 $0 $0 $0
blank
Cj − Zj $70 $50 $0 $0 $0

Blank Blank COLUMN Blank Blank

Blank T C S1 S2
Cj for column $70 $50 $0 $0
Zj for column 0 0 0 0
Cj − Zj for column $70 $50 $0 $0

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Simplex Solution Procedures (1 of 2)
1. Determine which variable to enter into the solution mix next. One
way of doing this is by identifying the column, and hence the
variable, with the largest positive number in the Cj − Zj row of the
preceding tableau. The column identified in this step is called the
pivot column.

2. Determine which variable to replace. Decide which basic variable

currently in the solution will have to leave to make room for the new
variable. Divide each amount in the quantity column by the
corresponding number in the column selected in step 1. The row with
the smallest nonnegative number calculated in this fashion will be
replaced in the next tableau. This row is often referred to as the
pivot row. The number at the intersection of the pivot row and pivot
column is referred to as the pivot number.

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Simplex Solution Procedures (2 of 2)
3. Compute new values for the pivot row by dividing every number in
the row by the pivot number.
4. Compute the new values for each remaining row. All remaining
row(s) are calculated as follows:

Ne w row numbe rs   Numbe rs in old row 

 Number above   Corresponding number in  
  or below    the new row, that is, the  
 pivot number   row replaced in step 3 


5. Compute the Zj and Cj − Zj rows, as demonstrated in the initial

tableau. If all numbers in the Cj − Zj row are 0 or negative, an optimal
solution has been reached. If this is not the case, return to step 1.

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The Second Simplex Tableau (1 of 10)
• Step 1 – Select variable to enter, T
TABLE M7.2 Pivot Column Identified in the Initial Simplex
Tableau

Cj SOLUTION $70 $50 $0 $0 QUANTITY

MIX T C S1 S2 (RHS)
$0 S1 2 1 1 0 100
$0 S2 4 3 0 1 240
blank Zj $0 $0 $0 $0 $0
blank Cj − Zj $70 $50 $0 $0 Total profit
Pivot column
blank

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The Second Simplex Tableau (2 of 10)
• Step 2 – Select the variable to be replaced, S1

For S1,

100 hours of painting time available 

 50 tables
2 hours required per table 

For S2,

240 hours of painting time available 

 60 tables
4 hours required per table 

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The Second Simplex Tableau (3 of 10)
• Step 2 – Select the variable to be replaced, S1
TABLE M7.3 Pivot Row and Pivot Number Identified in the
Initial Simplex Tableau
Cj SOLUTION $70 $50 $0 $0 QUANTITY
MIX T C S1 S2 (RHS)
$0 S1 2 1 1 0 100 Pivot row
$0 S2 4 3 0 1 240
Pivot number
blank Zj $0 $0 $0 $0 $0
blank Cj − Zj $70 $50 $0 $0 blank
Pivot column

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The Second Simplex Tableau (4 of 10)
FIGURE M7.2 Graph of
the Flair Furniture
Company Problem

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The Second Simplex Tableau (5 of 10)
• Step 3 – Compute the replacement for the pivot row

2 1 0 100
1  0.5 0  50
2 2 2 2

• The entire pivot row

Cj SOLUTION MIX T C S1 S2 QUANTITY

$70 T 1 0.5 0.5 0 50

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The Second Simplex Tableau (6 of 10)
• Step 4 – Compute new values for the S2 row

Number in Number in Number Below Corresponding Number

New S2 Row = Old S2 Row − ×
Pivot Number in the New T Row

0 = 4 − (4) × (1)

1 = 3 − (4) × (0.5)

−2 = 0 − (4) × (0.5)

1 = 1 − (4) × (0)

40 = 240 − (4) × (50)

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The Second Simplex Tableau (7 of 10)

• The second tableau

Cj SOLUTION MIX T C S1 S2 QUANTITY

$70 T 1 0.5 0.5 0 50

$0 S2 0 1 −2 1 40

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The Second Simplex Tableau (8 of 10)
• Step 5 – Introduce the effect of the objective function

Zj (for T column) = ($70)(1) + ($0)(0)= $70

Zj (for C column) = ($70)(0.5) + ($0)(1) = $35
Zj (for S1 column) = ($70)(0.5) + ($0)(−2) = $35
Zj (for S2 column) = ($70)(0) + ($0)(1) = $0
Zj (for total profit) = ($70)(50) + ($0)(40) = $3,500

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The Second Simplex Tableau (9 of 10)
• Step 5 – Introduce the effect of the objective function

TABLE M7.4 Completed Second Simplex Tableau for Flair

Furniture
Cj $70 $50 $0 $0 blank
SOLUTION
MIX T C S1 S2 QUANTITY
$70 T 1 0.5 0.5 0 50
$0 S2 0 1 −2 1 40
blank Zj $70 $35 $35 $0 $3,500
blank Cj − Zj $0 $15 −$35 $0 blank

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The Second Simplex Tableau (10 of 10)

• Cj − Zj numbers represent net profit at present production mix

blank blank COLUMN blank blank

blank T C S1 S2
Cj for column $70 $50 $0 $0
Zj for column $70 $35 $35 $0
Cj − Zj for column $0 $15 −$35 $0

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Interpreting the Second Tableau
• Current solution and resources
– Production of 50 tables (T) and 0 chairs (C)
– Profit = $3,500
– T is a basic variable, C nonbasic
– Slack variable S2 = 40, S1 nonbasic
• Substitution rates
– Marginal rates of substitution
– Negative substitution rate
 If 1 unit of a column variable is added to the solution, the value
of the corresponding solution (or row) variable will increase
– Positive substitution rate
 If 1 unit of the column variable is added to the solution, the row
variable will decrease
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Developing the Third Tableau (1 of 8)
• Not all numbers in the Cj − Zj row are 0 or negative
– Previous solution is not optimal
– Repeat the five simplex steps

• Step 1 – Variable C will enter the solution

– Largest Cj − Zj value of 15

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Developing the Third Tableau (2 of 8)
• Step 2 – Identifying the pivot row
50 40
For the T row:  100 chairs For the S2 row:  40 chairs
0.5 1
TABLE M7.5 Pivot Row, Pivot Column, and Pivot Number Identified in the
Second Simplex Tableau
Cj $70 $50 $0 $0 blank
SOLUTION
MIX T C S1 S2 QUANTITY
$70 T 1 0.5 0.5 0 50
$0 S2 0 1 −2 1 40 Pivot row
blank blank blank blank Pivot number blank
blank Zj $70 $35 $35 $0 $3,500
blank Cj − Zj $0 $15 −$35 $0 blank
blank Pivot column blank blank blank
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Developing the Third Tableau (3 of 8)
• Step 3 – The pivot row is replaced

0 1 –2 1 40
0 1  –2 1  40
1 1 1 1 1

• The new C row

Cj SOLUTION MIX T C S1 S2 QUANTITY

$50 C 0 1 −2 1 40

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Developing the Third Tableau (4 of 8)
• Step 4 – New values for the T row
Number in Number in Number above Corresponding number
= − ×
new T row old T row pivot number in new C row

1 = 1 − (0.5) × (0)
0 = 0.5 − (0.5) × (1)
1.5 = 0.5 − (0.5) × (−2)
−0.5 = 0 − (0.5) × (1)
30 = 50 − (0.5) × (40)

Cj SOLUTION MIX T C S1 S2 QUANTITY

$70 T 1 0 1.5 −0.5 30

$50 C 0 1 −2 1 40

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Developing the Third Tableau (5 of 8)
• Step 5 – Calculate the Zj and Cj − Zj rows

Zj (for T column) = ($70)(1) + ($50)(0) = $70

Zj (for C column) = ($70)(0) + ($50)(1) = $50
Zj (for S1 column) = ($70)(1.5) + ($50)(−2) = $5
Zj (for S2 column) = ($70)(−0.5) + ($50)(1) = $15
Zj (for total profit) = ($70)(30) + ($50)(40) = $4,100
blank blank COLUMN blank blank
blank T C S1 S2
Cj for column $70 $50 $0 $0
Zj for column $70 $50 $5 $15
Cj − Zj for column $0 $0 −$5 −$15
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Developing the Third Tableau (6 of 8)
• Step 5 – Calculate the Zj and Cj − Zj rows
TABLE M7.6 Final Simplex Tableau for the Flair Furniture
Problem

Cj $70 $50 $0 $0 blank

SOLUTION
MIX T C S1 S2 QUANTITY
$70 T 1 0 1.5 −0.5 30
$0 C 0 1 −2 1 40
blank Zj $70 $50 $5 $15 $4,100
blank Cj − Zj $0 $0 −$5 −$15 blank

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Developing the Third Tableau (7 of 8)

Since every number in the tableau’s Cj − Zj row is 0 or

negative, an optimal solution has been reached

TABLE M7.6 Final Simplex Tableau for the Flair Furniture

Problem
Cj $70 $50 $0 $0 blank
SOLUTION
MIX T C S1 S2 QUANTITY
$70 T 1 0 1.5 −0.5 30
$0 C 0 1 −2 1 40
blank Zj $70 $50 $5 $15 $4,100
blank Cj − Zj $0 $0 −$5 −$15 blank

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Developing the Third Tableau (8 of 8)
• Verifying the solution,

First constraint: 2T + 1C ≤ 100 painting dept hours

2(30) + 1(40) ≤ 100
100 ≤ 100 ✓
Second constraint: 4T + 3C ≤ 240 carpentry dept hours
4(30) + 3(40) ≤ 240
240 ≤ 240 ✓
Objective function profit = $70T + $50C
= $70(30) + $50(40)
= $4,100
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Review of Procedures (1 of 3)
I. Formulate the LP problem’s objective function and
constraints.
II. Add slack variables to each less-than-or-equal-to
constraint and to the problem’s objective function.
III. Develop an initial simplex tableau with slack variables in
the basis and the decision variables set equal to 0.
Compute the Zj and Cj − Zj values for this tableau.

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Review of Procedures (2 of 3)
IV. Follow these five steps until an optimal solution has been
reached:
1. Choose the variable with the greatest positive Cj − Zj
to enter the solution. This is the pivot column.
2. Determine the solution mix variable to be replaced
and the pivot row by selecting the row with the
smallest (nonnegative) ratio of the quantity-to-pivot
column substitution rate. This row is the pivot row.
3. Calculate the new values for the pivot row.

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Review of Procedures (3 of 3)
4. Calculate the new values for the other row(s).
5. Calculate the Zj and Cj − Zj values for this tableau. If
there are any Cj − Zj numbers greater than 0, return to
step 1. If there are no Cj − Zj numbers that are greater
than 0, an optimal solution has been reached.

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Surplus and Artificial Variables (1 of 3)
• Conversions are made for ≥ and = constraints
• For Surplus Variables,

Constraint 1: 5X1 + 10X2 + 8X3 ≥ 210

Rewritten: 5X1 + 10X2 + 8X3 − S1 = 210
For X1 = 20, X2 = 8, and X3 = 5,
5(20) + 10(8) + 8(5) − S1 = 210
− S1 = 210 − 220
S1 = 10 surplus units

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Surplus and Artificial Variables (2 of 3)

• If X1 and X2 = 0, then the S1 variable is negative,

which violates the nonnegative condition
• An artificial variable A1 is added to resolve this
problem

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Surplus and Artificial Variables (3 of 3)
• Conversions are made for ≥ and = constraints
• For equalities, add only an artificial variable

Constraint 2: 25X1 + 30X2 = 900

Constraint 2 completed: 25X1+ 30X2 + A2 = 900

Artificial variables have no physical meaning

and drop out of the solution mix before the
final tableau if a feasible solution exists

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Surplus and Artificial Variables in the
Objective Function
• Assign a very high-cost $M to artificial variables in the
objective function to force them out before the final solution
is reached

Minimize cost = $5X1 + $9X2 + $7X3

Minimize cost = $5X1 + $9X2 + $7X3 + $0S1 + $MA1 + $MA2

subject to 5X1 + 10X2 + 8X3 − 1S1 + 1A1 +0A2 = 210
25X1 + 30X2 + 0X3 + 0S1 + 0A1 + 1A2 = 900

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Solving Minimization Problems
• The Muddy River Chemical Company

Minimize cost = $5X1 + $6X2

subject to X1 + X2 = 1,000 lb
X1 ≤ 300 lb
X2 ≥ 150 lb
X1, X2 ≥ 0

where
X1 = number of pounds of phosphate
X2 = number of pounds of potassium

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Graphical Analysis
FIGURE M7.3 Muddy River Chemical Corporation’s Feasible
Region Graph

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Converting the Constraints and Objective
Function

Minimize cost = $5X1 + $6X2 + $0S1 + $0S2 + $MA1 + $MA2 blank

subject to 1X1 + 1X2 + 0S1 + 0S2 + 1A1 + 0A2 = 1,000
blank 1X1 + 0X2 + 1S1 + 0S2 + 0A1 + 0A2 = 300
blank

blank 0X1 + 1X2 + 0S1 − 1S2 + 0A1 + 1A2 = 150

blank

X1, X2, S1, S2, A1, A2 ≥ 0

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Rules of the Simplex Method for
Minimization Problems
1. Choose the variable with a negative Cj − Zj that indicates
the largest decrease in cost to enter the solution. The
corresponding column is the pivot column.
2. Determine the row to be replaced by selecting the one
with the smallest (nonnegative) quantity-to-pivot column
substitution rate ratio. This is the pivot row.
3. Calculate new values for the pivot row.
4. Calculate new values for the other rows.
5. Calculate the Zj and Cj − Zj values for this tableau. If there
are any Cj − Zj numbers less than 0, return to step 1.

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First Simplex Tableau (1 of 4)
Cj SOLUTION MIX X1 X2 S1 S2 A1 A2 QUANTITY

$M A1 1 1 0 0 1 0 1,000

$0 S1 1 0 1 0 0 0 300

$M A2 0 1 0 −1 0 1 150

Zj (for X1 column) = $M(1) + $0(1) + $M(0) = $M

Zj (for X2 column) = $M(1) + $0(0) + $M(1) = $2M
Zj (for S1 column) = $M(0) + $0(1) + $M(0) = $0
Zj (for S2 column) = $M(0) + $0(0) + $M(−1) = −$M
Zj (for A1 column) = $M(1) + $0(0) + $M(0) = $M
Zj (for A2 column) = $M(0) + $0(0) + $M(1) = $M
Zj (for total cost) = $M(1,000) + $0(300) + $M(150) = $1,150M

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First Simplex Tableau (2 of 4)

COLUMN
blank X1 X2 S1 S2 A1 A2

Cj for column $5 $6 $0 $0 $M $M

Xj for column $M $2M $0 −$M $M $M

Cj − Zj for column −$M + $5 −$2M + $6 $0 $M $0 $0

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First Simplex Tableau (3 of 4)
TABLE M7.7 Initial Simplex Tableau for the Muddy River
Chemical Corporation Problem
Cj $5 $6 $0 $0 $M $M blank

SOLUTION
MIX X1 X2 S1 S2 A1 A2 QUANTITY
$M A1 1 1 0 0 1 0 1,000

$0 S1 1 0 1 0 0 0 300

$M A2 0 1 0 −1 0 1 150 Pivot row

Pivot number
blank blank blank blank blank

Zj $M $2M 0 − $M $M $1,150M
blank

$M
Cj − Zj −$M + $5 −$2M + $6 $0 $M $0 $0
blank blank

blank blank blank Pivot column blank blank blank

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First Simplex Tableau (4 of 4)

In vector format
 X1   0
X   
 2  0 
 S1   300 
  
 S2   0
 A1  1,000 
   
 A2   150 

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Developing a Second Tableau (1 of 3)
1,000
For the A1 row   1,000
1
300
For the S1 row  (undefined)
0
150
For the A2 row  (undefined)
0
A1 Row S1 Row
1 = 1 − (1)(0) 1 = 1 − (0)(0)
0 = 1 − (1)(1) 0 = 0 − (0)(1)
0 = 0 − (1)(0) 1 = 1 − (0)(0)
1 = 0 − (1)(−1) 0 = 0 − (0)(−1)
1 = 1 − (1)(0) 0 = 0 − (0)(0)
−1 = 0 − (1)(1) 0 = 0 − (0)(1)
850 = 1,000 − (1)(150) 300 = 300 − (0)(150)
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Developing a Second Tableau (2 of 3)
Zj (for X1) = $M(1) + $0(1) + $6(0) = $M
Zj (for X2) = $M(0) + $0(0) + $6(1) = $6
Zj (for S1) = $M(0) + $0(1) + $6(0) = $0
Zj (for S2) = $M(1) + $0(0) + $6(−1) = $M − 6
Zj (for A1) = $M(1) + $0(0) + $6(0) = $M
Zj (for A2) = $M(−1) + $0(0) + $6(1) = −$M + 6
Zj (for total cost) = $M(850) + $0(300) + $6(150) = $850M + 900

blank blank blank COLUMN blank blank blank

blank X1 X2 S1 S2 A1 A2

Cj for column $5 $6 $0 $0 $M $M

Xj for column $M $6 $0 $M − 6 $M −$M + 6

Cj − Zj for column −$M + $5 $0 $0 −$M + 6 $0 $2M − 6

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Developing a Second Tableau (3 of 3)
TABLE M7.8 Second Simplex Tableau for the Muddy River
Chemical Corporation Problem
Cj $5 $6 $0 $0 $M $M blank

SOLUTION
MIX X1 X2 S1 S2 A1 A2 QUANTITY
$M A1 1 0 0 1 1 −1 850

$0 S1 1 0 1 0 0 0 300 Pivot row

blank blank blank Pivot number blank blank blank

$6 X2 0 1 0 −1 0 1 150
blank
Zj $M $6 $0 $M − 6 $M −$M + 6 $850M + $900
blank
Cj − Zj −$M + $5 $0 $0 −$M + 6 $0 $2M − 6 blank

blank
blank Pivot column blank blank blank blank

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Developing a Third Tableau (1 of 3)

A1 Row S1 Row
0 = 1 − (1)(1) 0 = 0 − (0)(1)
0 = 0 − (1)(0) 1 = 1 − (0)(0)
−1 = 0 − (1)(1) 0 = 0 − (0)(1)
1 = 1 − (1)(0) −1 = −1 − (0)(0)
1 = 1 − (1)(0) 0 = 0 − (0)(0)
−1 = −1 − (1)(0) 1 = 1 − (0)(0)
550 = 850 − (1)(150) 150 = 150 − (0)(300)

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Developing a Third Tableau (2 of 3)
Zj (for X1) = $M(0) + $5(1) + $6(0) = $5
Zj (for X2) = $M(0) + $5(0) + $6(1) = $6
Zj (for S1) = $M(−1) + $5(1) + $6(0) = −$M + 5
Zj (for S2) = $M(1) + $5(0) + $6(−1) = $M − 6
Zj (for A1) = $M(1) + $5(0) + $6(0) = $M
Zj (for A2) = $M(−1) + $5(0) + $6(1) = −$M + 6
Zj (for total cost) = $M(550) + $5(300) + $6(150) = $550M + 2,400

blank blank blank COLUMN blank blank blank

blank X1 X2 S1 S2 A1 A2

Cj for column $5 $6 $0 $0 $M $M

Xj for column $5 $6 −$M + 5 $M − 6 $M −$M + 6

Cj − Zj for column $0 $0 $M − 5 −$M + 6 $0 $2M − 6

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Developing a Third Tableau (3 of 3)
TABLE M7.9 Third Simplex Tableau for the Muddy River
Chemical Corporation Problem
Cj $5 $6 $0 $0 $M $M blank

SOLUTION
MIX X1 X2 S1 S2 A1 A2 QUANTITY
$M A1 0 0 −1 1 1 −1 550 Pivot row
$5 X1 1 0 1 0 0 0 300 Pivot number
$6 X2 0 1 0 −1 0 1 150
blank
Zj $5 $6 −$M + 5 $M − 6 $M −$M + 6 $550M + 2,400
blank
Cj − Zj $0 $0 $M − 5 −$M + 6 $0 $2M − 6 blank
blank blank blank blank blank Pivot column blank

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Developing a Fourth Tableau (1 of 3)
550
For the A1 row   550
1
300
For the X1 row  (undefined)
0
150
For the X 2 row  (negative)
–1
X1 Row X2 Row
1 = 1 − (0)(0) 0= 0 − (−1)(0)
0 = 0 − (0)(0) 1= 1 − (−1)(0)
1 = 1 − (0)(−1) −1 = 0 − (−1)(−1)
0 = 0 − (0)(1) 0= −1 − (−1)(1)
0 = 0 − (0)(1) 1= 0 − (−1)(1)
0 = 0 − (0)(−1) 0= 1 − (−1)(−1)
300 = 300 − (0)(550) 700 = 150 − (−1)(550)

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Developing a Fourth Tableau (2 of 3)
Zj (for X1) = $0(0) + $5(1) + $6(0) = $5
Zj (for X2) = $0(0) + $5(0) + $6(1) = $6
Zj (for S1) = $0(−1) + $5(1) + $6(−1) = −$1
Zj (for S2) = $0(1) + $5(0) + $6(0) = $0
Zj (for A1) = $0(1) + $5(0) + $6(1) = $6
Zj (for A2) = $0(−1) + $5(0) + $6(0) = $0
Zj (for total cost) = $0(550) + $5(300) + $6(700) = $5,700

Blank blank blank COLUMN blank blank blank

Blank X1 X2 S1 S2 A1 A2

Cj for column $5 $6 $0 $0 $M $M

Xj for column $5 $6 −$1 $0 $6 $0

Cj − Zj for column $0 $0 $1 $0 $M − 6 $M

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Developing a Fourth Tableau (3 of 3)
TABLE M7.10 Fourth and Optimal Solution to the Muddy
River Chemical Corporation Problem

Cj $5 $6 $0 $0 $M $M blank

SOLUTION
MIX X1 X2 S1 S2 A1 A2 QUANTITY
$0 S2 0 0 −1 1 1 −1 550

$5 X1 1 0 1 0 0 0 300

$6 X2 0 1 −1 0 1 0 700
blank
Zj $5 $6 −$1 $0 $6 $0 $5,700
blank
Cj − Zj $0 $0 $1 $0 $M − 6 $M blank

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Review of Procedures (1 of 3)
I. Formulate the LP problem’s objective function and
constraints.
II. Include slack variables in each less-than-or-equal-to
constraint, artificial variables in each equality constraint,
and both surplus and artificial variables in each greater-
than-or-equal-to constraint. Then add all of these
variables to the problem’s objective function.
III. Develop an initial simplex tableau with artificial and slack
variables in the basis and the other variables set equal to
0. Compute the Zj and Cj − Zj values for this tableau.

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Review of Procedures (2 of 3)
IV. Follow these five steps until an optimal solution has been
reached:
1. Choose the variable with the negative Cj − Zj
indicating the greatest improvement to enter the
solution. This is the pivot column.
2. Determine the row to be replaced by selecting the one
with the smallest (nonnegative) quantity-to-pivot
column substitution rate ratio. This is the pivot row.
3. Calculate the new values for the pivot row.
4. Calculate the new values for the other row(s).

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Review of Procedures (3 of 3)
5. Calculate the Zj and Cj − Zj values for this tableau. If
there are any Cj − Zj numbers less than 0, return to
step 1. If there are no Cj − Zj numbers that are less
than 0, an optimal solution has been reached.

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Special Cases (1 of 6)
• Infeasibility
– Infeasibility occurs when there is no solution that
satisfies all of the problem’s constraints
TABLE M7.11 Illustration of Infeasibility
Cj $5 $8 $0 $0 $M $M blank
SOLUTION
MIX X1 X2 S1 S2 A1 A2 QUANTITY
$5 X1 1 0 −2 3 −1 −0 200
$8 X2 0 1 1 2 −2 0 100
$M A2 0 0 0 −1 −1 1 20
blank
Zj $5 $8 −$2 $31 − M −$21 − M $M $1,800 + 20M
blank
Cj − Zj $0 $0 $2 $M − 31 $2M + 21 $0 blank

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Special Cases (2 of 6)
• Unbounded Solutions
– Unboundedness describes linear programs that do
not have finite solutions
TABLE M7.12 Problem with an Unbounded Solution
Cj $6 $9 $0 $0 blank
SOLUTION
MIX X1 X2 S1 S2 QUANTITY
$9 X1 −1 1 2 0 30
$0 S2 −2 0 −1 1 10
blank Zj −$9 $9 $18 $0 $270
blank Cj − Zj $15 $0 −$18 $0 blank
blank blank Pivot column blank blank

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Special Cases (3 of 6)

Negative ratios
unacceptable

TABLE M7.12 Problem with an Unbounded Solution

Cj $6 $9 $0 $0 blank
SOLUTION
MIX X1 X2 S1 S2 QUANTITY
$9 X1 −1 1 2 0 30
$0 S2 −2 0 −1 1 10
blank Zj −$9 $9 $18 $0 $270
blank Cj − Zj $15 $0 −$18 $0 blank
blank blank Pivot column blank blank
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Special Cases (4 of 6)
• Degeneracy
– Degeneracy develops when three constraints pass
through a single point
TABLE M7.13 Problem Illustrating Degeneracy
Cj $5 $8 $2 $0 $0 $0 blank
SOLUTION
MIX X1 X2 X3 S1 S2 S3 QUANTITY
$8 X2 0.25 1 1 −2 0 0 10
$0 S2 4 0 0.33 −1 1 0 20
$0 S1 2 0 2 0.4 0 1 10
blank Zj $2 $8 $8 $16 $0 $0 $80
blank Cj − Zj $3 $0 −$6 −$16 $0 $0 blank
blank blank Pivot column blank blank blank blank

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Special Cases (5 of 6)

Tie for the smallest

ratio indicates
degeneracy

Cj $5 $8 $2 $0 $0 $0 blank
SOLUTION
MIX X1 X2 X3 S1 S2 S3 QUANTITY
$8 X2 0.25 1 1 −2 0 0 10
$0 S2 4 0 0.33 −1 1 0 20
$0 S1 2 0 2 0.4 0 1 10
blank Zj $2 $8 $8 $16 $0 $0 $80
blank Cj − Zj $3 $0 −$6 −$16 $0 $0 blank
blank blank blank Pivot column blank blank blank
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Special Cases (6 of 6)
• More Than One Optimal Solution
– If the Cj − Zj value is equal to 0 for a variable that is not
in the solution mix, more than one optimal solution
exists
TABLE M7.14 Problem with Alternate Optimal Solutions
Cj $3 $2 $0 $0 blank
SOLUTION
MIX X1 X2 S1 S2 QUANTITY
$2 X2 1.5 1 1 0 6
$0 S2 1 0 0.5 1 3
blank Zj $3 $2 $2 $0 $12
blank Cj − Zj $0 $0 −$2 $0 blank

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Sensitivity Analysis (1 of 8)
• Optimal solution and the value of its objective function may
change, given changes in various inputs
– Establish ranges for the objective function coefficients
and RHS values
– Shadow prices
• High Note Sound Company Revisited
Maximize profit = $50X1 + $120X2 blank blank
subject to 2X1 + 4X2 ≤ 80 (hours of electricians’ time
available)
blank 3X1 + 1X2 ≤ 60 (hours of audio technicians’
time available)
blank blank X1, X2 ≥ 0 blank

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Sensitivity Analysis (2 of 8)
FIGURE M7.4 High Note Sound Company Graphical
Solution

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Sensitivity Analysis (3 of 8)
• Changes in the Objective Function Coefficients

X2 = 20 stereo receivers
Basic variables
S2 = 40 hours of slack time of audio technicians
X1 = 0 Speakers
Nonbasic variables
S1 = 0 hours of slack time of electricians

TABLE M7.15 Optimal Solution by the Simplex Method

Cj $50 $120 $0 $0 blank
SOLUTION
MIX X1 X2 S1 S2 QUANTITY
$120 X2 0.5 1 0.25 0 20
$0 S2 2.5 0 −0.25 1 40
blank Zj $60 $120 $30 $0 $2,400
blank Cj − Zj −$10 $0 −$30 $0 blank

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Sensitivity Analysis (4 of 8)
• Nonbasic Objective Function Coefficient
– The solution is optimal as long as all Cj − Zj ≤ 0,
or Cj ≤ Zj

• The range over which Cj rates for nonbasic variables can

vary without causing a change in the optimal solution mix
is called the range of insignificance

  C j  for X1   $60
  C j  for S1   $30

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Sensitivity Analysis (5 of 8)
• Basic Objective Function Coefficient
– Change can affect the Cj − Zj values of all nonbasic
variables
– Change defined by ∆
TABLE M7.16 Change in the Profit Contribution of Stereo
Receivers
Cj $50 $120 + ∆ $0 $0 blank
SOLUTION
MIX X1 X2 S1 S2 QUANTITY
$120 + ∆ X2 0.5 1 0.25 0 20
$0 S2 2.5 0 −0.25 1 40
blank Zj $60 + 0.5∆ $120 + ∆ $30 + 0.25∆ $0 $2,400 + 20∆
blank Cj − Zj −$10 − 0.5∆ $0 −$30 − 0.25∆ $0 blank

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Sensitivity Analysis (6 of 8)
• Solve for ∆ in each column
For X1,
−10 − 0.5∆ ≤ 0
−10 ≤ 0.5∆
−20 ≤ ∆ or ∆ ≥ −20
For S1,
−30 − 0.25∆ ≤ 0
−30 ≤ 0.25∆
−120 ≤ ∆ or ∆ ≥ −120

Range of optimality for X2’s profit coefficient

$100 ≤ Cj (for X2) ≤ ∞

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Sensitivity Analysis (7 of 8)
• Changes in Resources or RHS Values
• Shadow Prices
– The change in value of the objective function from an increase of
one unit of a scarce resource
– The negatives of the numbers in the Cj − Zj row’s slack variable
columns are the shadow prices
Cj $50 $120 $0 $0 blank
TABLE M7.17
SOLUTION
Final Tableau MIX X1 X2 S1 S2 QUANTITY
for the High $120 X2 0.5 1 0.25 0 20
Note Sound $0 S2 2.5 0 −0.25 1 40
Company blank Zj $60 $120 $30 $0 $2,400
blank Cj − Zj −$10 $0 −$30 $0 blank
blank Objective function increases by $30 if 1 additional
hour of electricians’ time is made available
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Sensitivity Analysis (8 of 8)
• Changes in Resources or RHS Values
• Right-Hand-Side Ranging
– The range over which shadow prices remain valid
QUANTITY S1 RATIO
20 0.25 20÷0.25 = 80
40 −0.25 40÷−0.25 = −160
– Solution mix variables if the RHS is changed

New quantity = Original quantity + (Substitution rate)(Change in RHS)

ORIGINAL QUANTITY S1 NEW QUANTITY

20 0.25 20 + (0.25)(12) = 23
40 −0.25 40 + (−0.25)(12) = 37
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The Dual (1 of 3)
• Every primal LP problem has a dual
– Second way of stating the same problem
– Contains economic information useful to management
– May be easier to solve

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The Dual (2 of 3)
• Primal-dual relationship

Maximize profit = $50X1 + $120X2 blank

subject to 2X1 + 4X2 ≤ 80 (hours of electricians’ time
available)
blank 3X1 + 1X2 ≤ 60 (hours of audio technicians’
time available)
blank blank X1, X2 ≥ 0 blank

– Objective of the dual is to minimize the opportunity cost

of not using the resources in an optimal manner

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The Dual (3 of 3)
• Define new variables
U1 = potential hourly contribution or worth of electrician time
U2 = potential hourly contribution or worth of audio technician time

– RHS quantities of the primal constraints become the

dual’s objective function coefficients

Minimize opportunity cost = 80U1 + 60U2

2 U1 + 3 U2 ≥ 50 Primal profit coefficients

4 U1 + 1 U2 ≥ 120 Coefficients from the second primal
constraint
Coefficients from the first primal constraint
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Dual Formulation Procedures
• Steps to Form a Dual
1. If the primal is a maximization, the dual is a
minimization, and vice versa.
2. The RHS values of the primal constraints become the
dual’s objective function coefficients.
3. The primal objective function coefficients become the
RHS values of the dual constraints.
4. The transpose of the primal constraint coefficients
become the dual constraint coefficients.
5. Constraint inequality signs are reversed.

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Solving the Dual of High Note Sound (1 of 3)
• Formulation of the dual

Minimize
opportunity = 80U1 + 60U2 + 0S1 + 0S2 + MA1 + MA2 blank
cost
subject to 2U1 + 3U2 − 1S1 blank + 1A1 blank = 50
blank

blank 4U1 + 1U2 blank − 1S2 blank + 1A2 = 120

blank

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Solving the Dual of High Note Sound (2 of 3)
TABLE M7.18 First and Second Tableaus of the High Note
Dual Problem
Cj 80 60 0 0 M M blank
blank

SOLUTION
blank MIX U1 U2 S1 S2 A1 A2 QUANTITY
First $M A1 2 3 −1 0 1 0 50
tableau
$M A2 4 1 0 −1 0 1 120
Zj $6M $4M −$M −$M $M $M $170M
blank blank

Cj − Zj 80 − 6M 60 − 4M M M 0 0
blank blank
blank

Second $80 U1 1 1.5 −0.5 0 0.5 0 25

tableau
$M A2 0 −5 2 −1 −2 1 20
Zj $80 $120 − 5M −$40 + 2M −$M $40 − 2M $M $2,000 + 20M
blank blank

Cj − Zj 0 5M − 60 −2M + 40 M 3M − 40 0 blank
blank blank

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Solving the Dual of High Note Sound (3 of 3)
FIGURE M7.5
Comparison of the
Primal and Dual
Optimal Tableaus

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Karmarkar’s Algorithm
• Often takes significantly less computer time to solve very
large-scale LP problems
• Follows a path of points on the inside of the feasible region
• Can handle an extremely large number of constraints and
variables
• Can solve previously unsolvable problems

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