Polytechnique University of the Philippines

Sto. Tomas Branch

LINEAR
PROGRAMMING
:
Simplex
Method
CHAPTER 3

Jhun Jhun M. Quiatchon, MBA

 LEARNING
• OBJECTIVES
At the end of this chapter, the student should
be able to:
1. State the basic steps involved in the
simplex method
2. Demonstrate how to prepare simplex
tableau
3. Determine the optimal solution using the
simplex method
 • Simplex Method is appropriate when
numerous variables and constraints
are present.
Definition • It involves a repetitive process of
finding the optimal solution to a
problem
Basic Steps involved in the
simplex method
1. Construct the objective function and constraints of the problem
2. Convert the explicit constraints from an equality to an equality
3. Prepare simplex tableau and compute for the value of and
-.
4. Check the simplex tableau needs to be improved.
5. Determined the incoming column and the outgoing row.
6. Improve the table and repeat step 3
refers to the contribution margin or
profit contribution per unit of
product,

values are the amount of profit that

will be reduced if one unit of any
variable is added to the mix

- is the difference between the

contribution margin and the
expected reduction of one unit of
variable
BASIC
PROCEDURES
IN
CONVERTING
CONSTRAINTS
TO EQUATIONS
 To convert the constraints to equations in the
maximization problem, consider the following
Maximizat procedures
ion 1. Add a slack variable if the symbol used is ≤
2. Add a slack variable if the symbol used is =
Problem
3. Multiply the equation by negative 1 and add a
slack variable if the symbol sign is ≥
Slack Represents the unused resources needed to
fill the gap between the left and the right
Variable elements of the inequalities
 Max Profit: P= 40x +20y
Subject to: 4x + y ≤ 20
x + y = 20
x + 4y ≥ 20

Example
The linear programming problem will appear
as follows:
Max Profit: P= 40x +20y + + +
Subject to: 4x + y + = 20
x + y + = 20
-x - 4y + -20
Maximization of Profit (Simplex
Method)
Jenny Furniture Shop produces two types of tables: an elegant
table and an ordinary table. The table, whether elegant or
ordinary, passes through two departments, namely, the assembly
department and finishing department . Each elegant table
requires 8 hours of assembly work and 4 hours of finishing task.
Each ordinary table requires 6 hours in the assembly department
and 2 hours in the finishing department. Every production period
, the shop has 480 hours of assembly time and 200 hours of
finishing time. The elegant table contributes Php700 to the
company’s profit, while the ordinary table has a profit of Php500

Required: Using the simplex method of linear programming,

determine the number of units needed to produced to
maximized profits
Step 1
Let x = number of elegant tables
y = number of ordinary tables

Max Profit: P = Php700x +Php500y

Subject to: 8x + 6y ≤ 480
4x + 2y ≤ 200
x, y ≥ 0
Step 2

Max Profit: P = Php700x +Php500y +

Subject to: 8x + 6y + = 480
4x + 2y + = 200
 Max Profit: P = Php700x +Php500y +
Step 3 Subject to: 8x + 6y + = 480
4x + 2y + = 200
Table 1. Initial Table
700 500 0 0
Product Solution x y
Quantity
0 480 8 6 1 0
0 200 4 2 0 1
0 0 0 0 0
- 700 500 0 0

The value of is computed as follows:

0 (480 8 6 1 0) = 0 0 0 0 0
0 (200 4 2 0 1) = 0 0 0 0 0
The value of - is computed as follows:
700 500 0 0
- 0 0 0 0
- 700 500 0 0
Step 4

If there is a positive value in - row, the table needs to be improved.

However, once the - values are already equal to zero or negative, an optimal
solution has been reached already.

In this problem, there are positive values in the - row (700 and 500): hence, the
table needs to be improved.
Step 5

• To improve the table, determine the incoming column and outgoing

row.
• In a maximization problem, the incoming column, or the so-called
optimum column, is the column that has the highest positive value in
the - row.
• Because 700 is the highest positive value, the incoming variable is x.
After determining the incoming column, the outgoing row shall then be
determined by dividing the values in the quantity column with the
pivot value of the incoming column.
• The pivot value is the intersectional element of the incoming column
and the corresponding row. The variable with the lowest value is the
outgoing variable.
• The determination of the outgoing variable appears as follows:

Product Solution Pivot Value Quotient

Quantity

480 ÷ 8 = 60
200 ÷ 4 = 50
• has the lowest value; thus, it is the outgoing variable that is replaced by variable x as
the incoming variable.
700 500 0 0

Product Solution Qty. x y

0 480 8 6 1 0
0 200 4 2 0 1
0 0 0 0 0
700 500 0 0

incoming variable outgoing variable

Step 6

Table 2. Table Before Improvement

700 500 0 0

Product Solution Qty. x y

700 x
0
When the tableau is improved, there will be new values for the variables. The new
values of the incoming variable x that will replace are determined first as follows:
Old Values of Pivot Value Quotient
Outgoing Variable ()

200 ÷ 4 = 50
4 ÷ 4 = 1
2 ÷ 4 = ½
0 ÷ 4 = 0
1 ÷ 4 = 1/4
Table 3. After Computing for the Values of the Incoming Variable X
700 500 0 0

Product Solution Qty. x y

700 X 50 1 ½ 0 ¼
0
When the given values in the problem are not expressed in decimals, the
computed values for the incoming variable should be expressed in fractions to
facilitate the computation. The new values of are determined as follows:
Old Values of Pivot Value New Values of New Values of
Retained of Incoming Retained
Variable () Retained Variable (x) Variable ()
Value ()
480 - 8 X 50 = 80
8 - 8 X 1 = 0
6 - 8 X ½ = 2
1 - 8 X 0 = 1
0 - 8 X 1/4 = -2
Table 4. After Computing for the New Values of
700 500 0 0
In table 4, the row still
has a non-negative
Product Solution Qty. x y value of 150. Hence, the
optimal solution has not
700 X 50 1 ½ 0 ¼ been reached yet. The
table still needs
improvement.
0 80 0 2 1 -2
35,000 700 350 0 175
0 150 0 -175
Step 7
To improve the table, repeat step 3. The incoming variable is y, as it has the
non-negative value. The outgoing variable is determined as follows:
Product Solution Pivot Value Quotient
Quantity

X 50 ÷ ½ = 100
80 ÷ 2 = 40

The outgoing variable, therefore, is because it has the lowest value.

Table 5. Before Improvement for the Second Iteration

700 500 0 0

Product Solution Qty. x y

500 Y
700 x
The new values of the incoming variable y, which will replace , are determined first as
follows
Old Values of Pivot Value of Values of Incoming
Outgoing Variable () Incoming Variable
Variable (y)

80 ÷ 2 = 40
0 ÷ 2 = 0
2 ÷ 2 = 1
1 ÷ 2 = ½
-2 ÷ 2 = -1
Table 6. After Computing for the Values of Variable y

700 500 0 0

Product Solution Qty. x y

500 Y 40 0 1 1/2 -1
700 x
Old Values of Pivot Value New Values of New Values of
Retained of Incoming Retained
Variable (x) Retained Variable (y) Variable (x)
Variable (x)
50 - ½ X 40 = 30
1 - ½ X 0 = 1
½ - ½ X 1 = 0
0 - ½ X ½ = -1/4
1/4 - ½ X -1 = ¾
Table 7. After Computing for the Values of Variable x

700 500 0 0 This time, the row does not

have positive values anymore.
This indicates that the optimal
Product Solution Qty. x y solution has been reached
already. The recommendation
is to produce 40 units of
500 Y 40 0 1 1/2 -1 product y and 30 units of
700 x 30 1 0 - ¾ product x to realize a profit of
Php41,000.00. This result is the
1/4 same with the graphical
41,000 700 500 75 25 approach as discussed in
Chapter 2.
0 0 -75 -25
Summary
Table 8. Initial Table

700 500 0 0

Product Solution x y
Quantity

0 480 8 6 1 0

0 200 4 2 0 1

0 0 0 0 0

- 700 500 0 0
Table 9. First Iteration
700 500 0 0

Product Solution Qty. x y

700 X 50 1 ½ 0 ¼

0 80 0 2 1 -2
35,000 700 350 0 175
0 150 0 -175
Table 10. Second Iteration

700 500 0 0

Product Solution Qty. x y

500 Y 40 0 1 1/2 -1
700 x 30 1 0 - ¾
1/4
41,000 700 500 75 25
0 0 -75 -25
Minimization of Cost(Simplex
Method)
To operate the newly imported state of the art machinery recently
purchased by ABC Company, two types of fuels are needed
namely, Fuel A and Fuel B. The machine specifications and
requirements show that for every one hour of production time
each gallon of Fuel A emits 6 units of chemical gas and generated a
mechanical energy equivalent to 8 horsepower. The cost Ph320. In
similar manner, each gallon of Fuel B emits 10 units of chemical
gas generates 8 horsepower of mechanical energy. This costs
Php300. The maximum number of units of such type of chemical
gas allowed by the government to be emitted by such type of
machinery is 30 units. The operating activities of the company
require atleast 32 horsepower of mechanical energy per hour.
Required: Using the simplex method, determine the number of
gallons of Fuel A and Fuel B that are needed to operate the
machine at the lowest possible cost
 Following procedures are done to convert the
constraints to equation
Minimizati 1. Add slack variable if the symbol used is ≤
on 2. Add an artificial variable if the symbol used
is =
Problem
3. Subtract a slack variable and add an
artificial variable if the symbol sign is ≥
 Prevents the slack variable from becoming a
zero and prevents an equality constraints from
resulting in an constant zero.
Artificial
Variable It is equal to the power of the ten greater than
the coefficient value found in the objective
and constraints
 Min total cost: C= 10x +20y
Subject to: 4x + y ≥ 10
3x + y ≤ 10
x + y = 10
Example
The linear programming problem will appear as
follows:

Min total cost: C= 10x +20y + + + +

Subject to: 4x + y - + = 20
3x + y + = 12
x + y + 10
Step 1
Let x = number of gallons of Fuel A to be used to operate the machine
y = number of gallons of Fuel B to be used to operate the machine
Min Total Cost: C = Php320x +Php300y
Subject to: 6x + 10y ≤ 30
8x + 8y ≥ 32
x, y ≥ 0

Step 2

Min Cost: C = Php320x +Php300y + +

Subject to: 6x + 10y + = 30
8x + 8y - = 32
 320 300 0 0 1,000

Product Solution Qty. X Y

0 30 6 10 1 0 0
1,000 32 8 8 0 -1 1
32,000 8,000 8,000 0 -1,000 1,000
-7,680 -7,700 0 1,000 0

• The highest negative value in the row is the incoming variable, which is variable y
with -7,700. The outgoing variable is determined as follows:
Product Solution Quantity Pivot Value Quotient
30 ÷ 10 = 3
32 ÷ 8 = 4
Old Values of Pivot Value New Values of New Values of
Retained of Incoming Retained
Variable (A1) Retained Variable (y) Variable (y)
Variable
(A1)
32 - 8 X 3 = 8
8 - 8 X 6/10 = 3 1/5
8 - 8 X 1 = 0
0 - 8 X 1/10 = -4/5
-1 - 8 X 0 = -1
1 - 8 X 0 = 1
The outgoing variable which has the smaller quotient. The improved table appears as
follows:
Table 12. First Iteration
320 300 0 0 1,000

Product Solution Qty. X Y

300 y 3 6/10 1 1/10 0 0
1,000 8 3 1/5 0 -4/5 -1 1
8,900 3,380 300 -770 -1,000 1,000
-3,060 0 770 1,000 0
The highest negative value is variable x. It is the incoming variable. The outgoing
variable is determined as follows:
Product Solution Quantity Pivot Value Quotient
y 3 ÷ 6/10 = 5
8 ÷ 3 1/5 = 2 1/2
The outgoing variable is which has the smaller quotient. The improved table appears as
follows:
Table 13. Second Iteration
320 300 0 0 1,000

Product Solution Qty. X Y

320 X 2½ 1 0 -1/4 -5/16 5/16
300 y 1½ 0 1 -1/4 3/16 -3/16
1,250 320 300 -155 -43 ¾ 43 ¾
0 0 155 43 ¾ 956 ¼

Since the column does not contain negative values, this indicates that the optimal
solution has been achieved. Table 13 shows that the company should use 2.5 gallons of
Fuel A (X) and 1.5 gallons of Fuel B (Y); this will be the minimum total cost that the
company will incur to operate the state of the art machine.