OPERATION RESEARCH

CHAPTER TWO
2. LINEAR PROGRAMMING(LP): MODEL FORMULATION
AND SOLVING LP MODELS:
Chapter Objectives:
Up on completion of this unit, the learner is expected to:
 Introduction LP and Formulate an LP model
 Mathematical formulation of Linear Programming
 Graphical Approach
 Simplex Method
 Duality in LPP
 Sensitivity Analysis.
2.1. Introduction LP and Formulate an LP model:
In 1947, George Danzig developed the use of algebra for determining solutions to problems
that involved the optimal allocation of scarce resources. In spite of numerous potential
applications in business, response to this new technique was low due to substantial
computational burden, which is now removed with subsequent advances in computer
technology and related software during the last three decades.
The term linear implies that all the mathematical relations used in the problem are linear or
straight-line relations, while the term programming refers to the method of determining a
particular program or plan of action, i.e., the use of algorithms that is a well-defined sequence
of steps that will lead to an optimal solution. Taken as a whole, the term linear programming
refers to a family of mathematical techniques for determining the optimum allocation of
resources and obtaining a particular objective when there are alternative uses of the limited
or constrained resources.
The technique of linear programming is applicable to problems in which the total
effectiveness can be expressed as linear function of individual allocations and the limitations
on resources give rise to linear equation or inequalities of the individual allocations.

2.1.1. Linear Programming Models and its components

2.1.1.1. Linear Programming Models
Linear programming models are mathematical representations of LP problems. Linear
programming models have certain characteristics in common. Knowledge of these
characteristics enables us to recognize problems that are amenable to a solution using LP
models, and to be able to correctly formulate an LP model. These characteristics can be
grouped as components and assumptions. The components relate to the structure of a model,
whereas the assumptions reveal the conditions under which the model is valid.
Linear Programming model is a mathematical process that as bee developed to help
management in decision making involving the efficient allocation of scares resources to
achieve a certain objective.

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Diagrammatically,
Scares To be allocated to:
Resource

Resource

Objectives Constraints nts

Non-negativity

Optimization Constraints

Maximization Minimization

2.1.1.2. Components of LP Models

There are four major components of LP models including: Objective function, decision
variables, constraints and parameters.
i. Objective Function:
The objective in problem solving is the standard by which all decisions are evaluated. It
provides the focus for problem solving. In linear programming models, a single, quantifiable
objective must be specified by the decision maker. Because we are dealing with optimization,
the objective will be either maximization or minimization.
Hence, every LP problem will be either maximization or a minimization problem. Once the
objective is specified, it becomes the measure of effectiveness against which alternate
solutions are judged. An LP model consists of a mathematical statement of the objective
called the objective function.
ii. Decision variables:
DV: It represent unknown quantities to be solved for. The decision maker can control the
value of the objective, which is achieved through choices in the levels of decision variables.
For example, how much of each product should be produced in order to obtain the greatest
profit?
iii. Constraints:
However, the ability of a decision maker to select values of the decision variables in an LP
problem is subject to certain restrictions or limits coming from a variety of sources. The
restrictions may reflect availabilities of resources (e.g., raw materials, labor time, etc.), legal
or contractual requirements (e.g., product standards, work standards, etc.), technological
requirements (e.g., necessary compressive strength or tensile strength) or they may reflect
other limits based on forecasts, customer orders, company policies, and so on.

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In LP model, the restrictions are referred to as constraints. Only solutions that satisfy all
constraints in a model are acceptable and are referred to as feasible solutions. The optimal
solution will be the one that provides the best value for the objective function.
Generally speaking, a constraint has four elements:
A right hand side (RHS): quantity that specifies the limit for that constraint. It must
be a constant, not a variable.
An algebraic sign: that indicates whether the limit is an upper bound that cannot be
exceeded, a lower bound that is the lowest acceptable amount, or an equality that
must be met exactly.
The decision variables to which the constraint applies.
The impact that one unit of each decision variable will have on the right-hand side
quantity of the constraint.
Constraints can be arranged into three groups:
System constraints: involve more than one decision variable,
Individual constraints: involve only one variable, and
Non-negativity constraints: specify that no variable will be allowed to take on a
negative value. The non-negativity constraints typically apply in an LP model,
whether they are explicitly stated or not.
iv. Parameters:
The objective function and the constraints consist of symbols that represent the decision
variables (e.g., X1, X2, etc.) and numerical values called parameters. The parameters are fixed
values that specify the impact that one unit of each decision variable will have on the
objective and on any constraint it pertains to as well as the numerical value of each
constraint.
The following simple example illustrates the components of LP models:

2.1.2.2. Assumptions Of LP Models

i. Linearity (proportionality):
The linearity requirement is that each decision variable has a linear impact on the objective
function and in each constraint in which it appears. In terms of a mathematical model, a

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function or equation is linear when the variables included are all to the power 1 (not
squared, cubed, square root, etc.) and no products (e.g., x1x2) appear. On the other hand, the
amount of each resource used (supplied) and its contribution to the profit (or cost) in the
objective function must be proportional to the value of each decision variable. For example,
if production of one unit requires 5 hours of a particular resource, then making 3 units of that
product requires 15 hours (3x5) of that resource.
ii. Divisibility/ Continuity/non-integer values are acceptable:
The divisibility requirement pertains to potential values of decision variables. It is assumed
that non-integer values are acceptable. However, if the problem concerns, for example, the
optimal number of houses to construct, 3.5 do not appear to be acceptable. Instead, that type
of problem would seem to require strictly integer solutions. In such cases, integer-
programming methods should be used. It should be noted, however, that some obvious
integer type situations could be handled under the assumption of divisibility. For instance,
suppose 3.5 to be the optimal number of television sets to produce per hour, which is
unacceptable, but it would result in 7 sets per two hours, which would then be acceptable.
iii. Certainty/known and constant parameters values:
This requirement involves two aspects of LP models. One aspect relates to the model
parameters, i.e., the numerical values. It is assumed that these values are known and
constant. In practice, production times and other parameters may not be truly constant.
Therefore, the model builder must make an assessment as to the degree to which the certainty
requirement is met. Large departures almost surely will have a significant effect on the
model. The other aspect is the assumption that all relevant constraints have been identified
and represented in the model.
iv. Additivity:
The value of the objective function and the total amount of each resource used (or supplied),
must be equal to the sum of the respective individual contributions (profit or cost) by decision
variables. For example, the total profit earned from the sale of two products A and B must be
equal to the sum of the profits earned separately from A and B. Similarly, the amount of a
resource consumed for producing A and B must be equal to the sum of resources used for A
and B respectively.
v. Non-negativity:
It assumes that negative values of variables are unrealistic and, therefore, will not be
considered in any potential solutions. Only positive values and zero will be allowed and the
non-negativity assumption is inherent in LP models.
2.1.2.3. Formulating LP Models
Just as it is to define a problem, careful formulation of the model that will be used to solve
the problem is important. Linear programming algorithms (solution techniques) are widely
used and understood and computer packages are readily available for solving LP problems.
Consequently, obtaining solutions is not the real issue, what is very important to note is
failure to check that all constraints have been accounted for and have been correctly
formulated results in ill-structuring of the model that can easily lead to poor decisions.
Steps in formulating LP models:
Identify the decision variables.
Determine the objective function.

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Identify the constraints.

Determine appropriate values for parameters and determine whether an upper limit,
lower limit or equality is called for.
Use this information to build a model.
Validate the model.
In many cases, the decision variables are obvious; in others it might require brief discussion
with the appropriate manager. However, identifying the constraints and determining
appropriate values for the parameters can require considerable time and effort. Potential
sources of information include historical records, interviews with managers and staff, and
data collection. Validating the model will involve a critical review of the output, perhaps
under a variety of inputs, in order to decide if the results are reasonable.
2.2. Solving LP Models:
Following the formulation of a mathematical model, the next stage in the application of LP to
decision making problem is to find the solution of the model. An optimal, as well as feasible
solution to an LP problem is obtained by choosing from several values of decision variables
x1,x2…xn , the one set of values that satisfy the given set of constraints simultaneously and
also provide the optimal ( maximum or minimum) values of the given objective function.
The most common solution approaches are to solve graphically and algebraically the set of
mathematical relationships that form the model, thus determining the values of decision
variables.
2.2.1. Graphical Methods for Solving LPP:
Graphical linear programming is a relatively straightforward for determining the optimal
solution to certain linear programming problems involving only two decision variables.
Although graphic method is limited as a solution approach, it is very useful in the
presentation of LP, in that it gives a “picture” of how a solution is derived thus a better
understanding of the solution. Moreover, graphical methods provide a visual portrayal of
many important concepts.
In this method, the two decision variables are considered as ordered pairs (X1, X2), which
represent a point in a plane, i.e, X1 is represented on X-axis and X2 on Y-axis.
Graphical method has the following advantages:
- It is simple
- It is easy to understand, and
- It saves time.
2.2.1.1.Important Definitions Graphical method:
 Solution The set of values of decision variables xj (j = 1,2,…, n) which satisfy the
constraints of an LP problem is said to constitute solution to that LP problem.
 Feasible solution The set of values of decision variables xj (j = 1,2,…, n) which satisfy
all the constraints and non- negativity conditions of an LP problems simultaneously is
said to constitute the Feasible solution to that LP problem.
 Infeasible solution The set of values of decision variables xj (j = 1,2,…, n) which do not
satisfy all the constraints and non-negativity conditions of an LP problems simultaneously
is said to constitute the infeasible solution to that LP problem.

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 Basic solution For a set of m simultaneous equations in n variables ( n>m), a solution

obtained by setting ( n-m) variables equal to zero and solving for remaining m equations
in m variables is called a basic solution.
The (n-m) variables whose value did not appear in this solution are called non-basic
variables and the remaining m variables are called basic variables.
 Basic feasible solution a feasible solution to LP problem which is also the basic solution
is called the basic feasible solution. That is, all basic variables assume non-negative
values. Basic feasible solutions are of two types:
- Degenerate A basic feasible solution is called degenerate if value of at least one
basic variable is zero.
- Non-degenerate a basic feasible solution is called non-degenerate if value of all m
basic variables are non- zero and positive.
 Optimal Basic feasible solution a basic feasible solution which optimizes the objective
function value of the given LP problem is called an optimal basic feasible solution.
 Unbounded solution a solution which can increase or decrease the value of the LP
problem indefinitely is called an unbounded solution.
2.2.2.2. Basic steps of graphic method:
To use the graphic method, the following steps are needed:
1st. Identify the problem: i.e: The decision variables, the objective function and the
constraints
2nd. Draw a graph including all the constraints and identify the feasible region
3rd. Obtain a point on the feasible region that optimizes the objective function-Optimal
solution and
4th. interpreted the results
I. Maximization Problem:
Maximize Z: with inequalities of constraints in < form.
Example 1: Consider two models of color TV sets; Model A and B, are produced by a
company to maximize profit. The profit realized is $300 from A and $250 from set B. The
limitations are:
- Availability of only 40hrs of labor each day in the production department.
- A daily availability of only 45 hrs. on machine time and
- Ability to sale 12 set of model A.
How many sets of each model will be produced each day so that the total profit will be as
large as possible?
Resources used per unit
Constraints Model A Model B Maximum Available hrs.
(X1) (X2)
Labor hr. 2 1 40
Machine hr. 1 3 45
Marketing hr. 1 0 12
Profit $300 $250

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Required:
 Formulate the mathematical model of the problem
 Using the graphic method, determine how many of each TV the company should
manufacture each tent the company should manufacture each week so as to maximize
its profit?
 What is this maximum profit assuming that all the TV manufactured in each week are
sold in that week?
Solution 1:
1st: Formulation of mathematical modeling of LPP
Max Z=300X1 +250X2
St:
2X1 +X2< 40
X1 +3X2< 45 LPP Model
X1 < 12
X1, X2 > 0
nd
2 . Convert constraints inequalities into equalities:
2X1 +X2 = 40
X1 +3X2 = 45
X1 = 12
rd
3 . Draw the graph by intercepts:
2X1 +X2 = 40 ==> (0, 40) and (20, 0)
X1 +3X2= 45==> (0, 15) and (45, 0)
X1 = 12==> (12, 0)
X1, X2 = 0

X2
2X1 +X2 = 40

X1=0
40 X1=12

15 B
X1 +X2 = 45

Feasible C(12, 11)

Region X2=0
X1
D
A 12 20 45

4th. Identify the feasible area of the solution which satisfies all constrains.
5th. Identify the corner points in the feasible region:
- A (0, 0), B (0, 15), C (12, 11) and D (12, 0)
th
6 . Identify the optimal point

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Corners Coordinates Max Z=300 X1 +250X2

A (0, 0) $0
B (0, 15) $3750
C (12, 11) $6350
D (12, 0) $3600
7th. Interpret the result
12 units of product A and 11 units of product B should be produced so that the total profit will be
$6350.
Exercise 1:
A manufacturer of light weight mountain tents makes two types of tents, REGULAR tent and
SUPER tent. Each REGULAR tent requires 1 labor-hour from the cutting department and
3labor-hours from the assembly department. Each SUPER tent requires 2 labor-hours from
the cutting department and 4 labor-hours from the assembly department .The maximum labor
hours available per week in the cutting department and the assembly department are 32 and
84 respectively. Moreover, the distributor, because of demand, will not take more than 12
SUPER tents per week. The manufacturer sales each REGULAR tents for $160 and
costs$110 per tent to make. Whereas SUPER tent ales for $210 per tent and costs $130 per
tent to make.
____________________________________________________________________
Labor hours per tent Maximum labor-hours
Department REGULAR (X1) SUPER(X2) available per week
___________________________________________________________
Cutting department 1 2 32
Assembly department 3 4 84
Selling price per tent $160 $210
Cost per tent $110 $130
Profit per tent $50 $80

Required:
a. Formulate the mathematical model of the problem
b. Using the graphic method, determine how many of each tent the company should
manufacture each tent the company should manufacture each week so as to maximize
its profit?
c. What is this maximum profit assuming that all the tents manufactured in each week are
sold in that week?
II. Minimization Problem
Minimize Z with inequalities of constraints in > form
Example 1:
Suppose that a machine shop has two different types of machines; machine 1 and machine 2,
which can be used to make a single product .These machines vary in the amount of product
produced per hr., in the amount of labor used and in the cost of operation.

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Assume that at least a certain amount of product must be produced and that we would like to
utilize at least the regular labor force. How much should we utilize each machine in order to
utilize total costs and still meets the requirement?
__________________________________________________________________________
Resource used
Machine I (X1) Machine II (X2) Minimum required hours
__________________________________________________________________________
Product produced/hr 20 15 100
Labor/hr 2 3 15_____________
Operation Cost $25 $30_______________________________
Required:
 Formulate the mathematical model of the problem
 Using the graphic method, determine how many of each tent the company should
manufacture each tent the company should manufacture each week so as to maximize
its profit?
 What is this maximum profit assuming that all the tents manufactured in each week are
sold in that week?
Solution
1st: Formulation of mathematical modeling of LPP
Min.Z  25 X 130 X 2
St :
20 X 115 X 2 100 LPP Model
2 X 13 X 2 15
X1, X 2  0
2nd. Convert constraints inequalities into equalities:
20X1 +15X2=100 ==> (0, 20/3) and (5, 0)
2X1+3X2=15 ==> (0, 5) and (7.5, 0)
X1 X2> 0
3rd. Draw the graph by intercepts:
20X1 +15X2=100 ==> (0, 20/3) and (5, 0)
2X1+3X2=15 ==> (0, 5) and (7.5, 0)
X1 X2> 0

X2
X1
A (0, 20/3) =0

Feasible
Region
B (2.5,
3.33) X2
=0
X1
5 C (7.5, 0)

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4th. Identify the feasible area of the solution which satisfies all constrains.
5th. Identify the corner points in the feasible region:
______________________________________________________________________________________________
Corners Coordinates Min Z=25 X1 + 30X2
A (0, 20/3) 200

B (2.5, 3.33) 162.5

C (7.5, 0) 187.5
_____________________________________________________________________
X1 =2.5
X2=3.33 and
Min Z = 162.5
7th. Interpret the result 2.5 units of Machine I and 3.33 units of Machine II should be
produced so that the total profit will be $162.5.
Exercise 1:
A company owns two flour mills (A and B) which have different production capacities for HIGH,
MEDIUM and LOW grade flour. This company has entered contract supply flour to a firm every
week with 12, 8, and 24 quintals of HIGH, MEDIUM and LOW grade respectively. It costs the Co.
$1000 and $800 per day to run mill A and mill B respectively. On a day, mill A produces 6, 2, and 4
quintals of HIGH, MEDIUM and LOW grade flour respectively.
Mill B produces 2, 2 and 12 quintals of HIGH, MEDIUM and LOW grade flour respectively. How
many days per week should each mill be operated in order to meet the contract order most
economically standardize? Solve graphically.
Solution:
No of days per week of Minimum flour in
Mil A (X1) Mill B(X2) quintals

HIGH Capacity (in quintal) 6 2 12

MEDIUM Capacity (in quintal) 2 2 8
LOW Capacity (in quintal) 4 12 24
$1000 $800

Required:
 Formulate the mathematical model of the problem
 Using the graphic method, determine how many of each tent the company should
manufacture each tent the company should manufacture each week so as to maximize
its profit?
 What is this maximum profit assuming that all the tents manufactured in each week are
sold in that week?
2.2.3. Special Cases in Graphics Methods
i. Redundant Constraint
If a constraint when plotted on a graph doesn’t form part of the boundary making the feasible
region of the problem that constraint is said to be redundant.

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Example:
A firm is engaged in producing two products A and B .Each unit of product A requires 2Kg
of raw material and 4 labor-hrs for processing, whereas each unit of product B requires 3Kg
of raw materials and 3hrs of labor. Every unit of product a needs 4hrs to packaging and every
unit of product B needs 3.5hrs for packaging. Every week the firm has availability of 60Kg of
raw material, 96 labor-hours and 105 hrs I the packaging department. 1 unit of product A sold
yields $40 profit and 1 unit of B sod yields $35 profit.
Required:
a. Formulate this problem as a LPP
b. Find the optimal solution
Solution
_____________________________________________________________________
Products Resource available
Resources: A B per week
_____________________________________________________________________________
Raw materials (Kg) 2 3 60
Labor (hr) 4 3 96
Packaging (hr) 4 3.5 105
Profit per unit $40 $35
Let X1 =The No of units of product A produced per week
X2 =The No of units of product B produced per week
a. LPP Model
Max.Z  40 X 135 X 2
St :
2 X 13 X 2 60
4 X 13 X 2 96
4 X 1  3.5 X 2  105
X1, X 2  0
X2
(0, 32)

Labor: 4X1 +3X2 = 96

(0, 30) Packaging: 4X1 +3.5X2 = 105

(0, 20) Raw material: 2X1 +3X2 = 60

FR C (18,8)
X1
D (24, 0) (30, 0)
A (0, 0) (26, 0)

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 The packaging hr is redundant.

Corners Coordinates Min Z=40 X1 + 35X2

A (0, 0) 0
B (0, 20) 700
C (18, 8) 1000
D (24, 0) 960
X1 =18
X2=8 and
Min Z= 1000
Interpretation:
The company should produce and sale 18 units of product A and 8 units of product B per
week so as to get a maximum profit of 1000.
 By this production plan the entire raw material will be consumed.
2X1 +3X2 <60
2(18) +3(8) =60
60=60==> No idle or unused raw material
 4X1 +3X2 <96
4(18) +3(8) <96
96=96 ==>the entire labor hour will be consumed
 4X1 +3.5X2 <105
100<105==>There is to be idle or unused capacity of 5hrs in the packaging department.
Note: The packaging hour’s constraint does not form part of the boundary making the
feasible region. Thus, this constraint is of no consequence and is therefore, redundant. The
inclusion or exclusion of a redundant constraint does not affect the optimal solution of the
problem.
ii. Multiple optimal Solutions /Alternative optimal solutions/
This is a situation where by a LPP has more than one optimal solution.
Multiple optimal Solutions will be found if two corners give optimal solution, then the line
segment joining these points will be the solution.
- We have unlimited number of optimal solution without increasing or decreasing the
objective function.
Example:
The information given below is for the products A and B
_____________________________________________________________________
Machine hours per week Maximum available
Department Product A, Product B per week
___________________________________________________________________________
Cutting 3 6 900
Assembly 1 1 200
Profit per unit $8 $16
Assume that the company has a marketing constraint on selling products B and therefore it
can sale a maximum of 125units of this product.

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Required:
a. Formulate the LPP of this problem
b. Find the optimal solution
Solution:
Let X1 =The No of units f product A produced per week
X2 =The No of units f product B produced per week
a. The LPP Model of the problem is:
Max.Z  8 X 116 X 2
St :
3 X 16 X 2 900
X 1 X 2 200
X 2  125
X1, X 2  0

X2 X1=0
(0, 200)

(0,150) C (50, 125) X2=125 Marketing equation

B (0, 125)
D (100,100)
Cutting: 3X1+6X2=900

FR X2=0

X1
A (0, 0) E (200, 0) (300,0)

Corners Coordinates MaxZ=8 X1 + 16X2

A (0, 0) 0
B (0, 125) 2000
C (50, 125) 2400
D (100, 100) 2400
E (200, 100) 1600
Interpretation:
Both C and D are optimal solutions. Any point on the line segment CD will also lead to the
same optimal solution.
Multiple optimal solutions provide more choices for management to reach their objectives.
iii. Infeasible Solution
A solution is called feasible if it satisfies all the constraints and the constraints and non-
negativity condition. However, it is sometimes possible that the constraints may be
inconsistent so that there is no feasible solution to the problem. Such a situation is called
infeasibility.

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Example:
Max Z=20X1+30X2
St:
2X1+X2< 40
4X1+X2< 60
X1 > 30
X1, X2 > 0
Solution:

X2 X1=0
(0, 60) X1=30
4X1+X2= 60
(0, 40)

2X1+X2= 40
X2=0
X1
(15, 0) (20, 0) (30, 0)

Note:
- In the above graph, there is no common point in the shaded area.
-All constraints cannot be satisfied simultaneously and there is no feasible solution to
the problem.
iv. Mix of constraints
Example:
ABC Gasoline Company has two refineries with different production capacities. Refinery A
can produce 4,000gallons per day of SUPER UNLEADD GASOLINE, 2000 gallons per day
of REGULAR UNLEADED GASOLINE and 1000 gallons per day of LEADED GASOLINE.
On the other hand, refinery B can produce 1000 gallons per day of SUPER UNLEADED,
3000 gallons per day of REGULAR UNLEADED and 4,000 gallons per day of LEADED.
The company has made a contract with an automobile manufacturer to provide 24000
Gasoline of SUPER UNLEADED, 42000 gallons of REGULAR UNLEADED and 36000
gallons of LEADED .The automobile manufacturer wants delivery in not more than 14 days.
The cost of running refinery A is $1500 per day and refinery B is $2400 per day.
Required:
a. Formulate this problem as a LPP
b. Determine the number of days the gasoline company should operate each refinery in
order to meet the terms of the above contract most economical.(i.e. At a minimum
running cost)
c. Which grade of gasoline would be over produced?

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Solution:
_____________________________________________________________________________
Production per day (in gallons) Contract with an automobile manufacturer
Grade of gasoline A B
_____________________________________________________________________
SUPER UNLEADED 4000 1000 24,000
REGULAR UNLEADED 2000 3000 42,000
LEADED 1000 4000 36,000
Running cost per day $1,500 $2,400
_____________________________________________________________________
The automobile manufacturer wants delivery in not more than 14 days.
Let X1 =The No of day’s refinery A should work.
X2 =The No of days refinery B should work.
a. LPP of the problem
Min Z=1500X1+2400X2
St:
4000X1+1000X2>24000
2000X1+3000X2>42000
1000X1+2000X2> 36000
X1 < 14
X2< 14
X1, X2 > 0
b. To simplify the problem divide by 1000 the constraints
Min Z=1500X1+2400X2
St:
4X1+1X2>24
2X1+3X2>42
X1+4X2 > 36
X1 < 14
X2< 14
X1, X2 > 0

24 Delivery time: X1=14

SUG: 4X1+X2 =24

A (2.5, 14) B (14, 14) Delivery time: X2=14

FR

D (12, 6) C (14, 5.5)

LG: X1+4X2=36

RUG: 2X1+3X2 =42

(6, 0) (14, 0) (21, 0) (36, 0)

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Note: Point A, B, C, and D are solved by elimination-substitution method

__________________________________________________________________
Corners Coordinates Max Z=1500X1 + 2400X2
A (2.5, 4) $37350
B (14, 14) 54600
C (14, 5.5) 34200
D (12, 6) 32400
E (3, 12) 33300
_________________________________________________________________
Interpretation:
The oil company should operate refinery A for 12 days and refinery B for 6 days at a
minimum operating cost of $32,400.
c. s there any over production
SUG: 4000X1+1000X2>24000
4000(12) +1000(6)>24000
54000 > 24000
Therefore, 30,000 gallons over production
RUG: 2000X1+3000X2>42000
2000(12) +3000(6)>42000
42000 > 42000
Therefore, there is no over production of RUG
LG: 1000X1+4000X2>36000
1000(12) +1000(6)>36000
36000 > 36000
Therefore, No over production of LG
v. Unbounded Solution
When the value of decision variables in LP is permitted to increase infinitely without
violating the feasibility condition, then the solution is said to be unbounded .Here, the
objective function value can also be increased infinitely. However, an unbounded feasible
region may yield some definite value of the objective function.
Example:
Use the graphical method to solve the following LPP.
Max. Z=3X1+4X2
St:
X1-X2<-1==> -X1+X2>1 since the quantity solution is positive
-X1+X2<0
X1, X2 >
X2 X1-X2 =-1

X1+X2 =0

1 Unbounded
Feasible Region
X1
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Fig: Unbounded Solution

2. Max. Z=3X1+2X2
St:
X1-X2<1
X1+X2<3
X1, X2 > 0
X2

A (0, 3) Unbounded
Feasible Region
X1-X2=1

B (2, 1)
X1+X2=3

X1
Note here that the two corners of the region are A(0,3) and .B(2,1).The value of Max Z(A)=6
and Max Z(B)=8. But there exist number of points in the shaded region for which the value
of the objective function is more than 8.For example, the point (10, 12) lies in the region and
the function value at this point is 70 which is more than 8.
2.2.2. The Simplex Algorithm Methods for Solving LPP:
In our previous section we tried to thoroughly discuss about graphic approach of LP
problems, where the LP consists of only two decision variables. But, the real world problems
may consist of even very large number of decision variables which cannot be solved using
graphic approach. Therefore, in this section we will try to see about simplex method, which is
more comprehensive as compared to graphic approach.
The graphical method of solving linear programming problems is a simple way to find a
solution since the optimum solution is searched among the corner points of the solution
space. However, the graphical method is restricted to problems with two decision variables.
When the number of variables and the number of constraints increase, it becomes difficult to
visualize the solution space. As a result, the graphical method cannot be employed
successfully in such cases. In order to avoid this limitation, the simplex method, or iterative
or step by step method is efficient method for solving linear programming problems, which
was developed by George B. Datzing in 1947.
The simplex method is an algebraic procedure that starts with a feasible solution that is not
optimal and systematically moves from one feasible solution to another until an optimal
solution is found. In case of the graphical approach, optimal solution occurs at the extreme
points where the constraints intersect. Solutions where constraints intersect are called basic
solutions, and those satisfying all of the constraints together with non-negativity constraints
are called basic feasible solutions.
Constraints are generally expressed using inequalities either in ‘less than’ or ‘greater than’ or
in mixed form. Thus, constraints are not in standard form, meaning they should be converted
into equalities. To convert the inequality constraint into equality, we introduce slack or

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surplus variables. In economic terminology, slack variables represent unused capacity and
surplus variables represent excess amount. The contribution (cost or profit) associated with
the slack and surplus variables is zero. An inequality of the ‘less than or equal to’ type is
transformed into equality by introducing a non-negative slack variable, as follows: -
I. Maximization case:
The solution steps of the simplex method can be outlined as follows:
Step1. Formulate the linear programming model of the real world problem, i.e., obtain a
mathematical representation of the problem's objective function and constraints.
Step2. Express the mathematical model of L.P. problem in the standard form by adding slack
variables in the left-hand side of the constraints and assign a zero coefficient to these in the
objective function.
Thus we can restate the problem in terms of equations:
Maximize Z = C1X1+ C2X2 + ... +CnXn + OS1 + OS2 +... +0Sm
Subject to a11X1+a12X2+... + a1nxn+s1i =b1
a2lX1+al22X2+... + a2nXn+S2 = b2
amlXl + am2 X2 +... + amNxn + Sm = bm
Where X1, X2... Xn and S1, S2 ... Sm are non-negative.
Note: that the slack variables have been assigned zero coefficients in the objective function.
The reason is that these variables typically contribute nothing to the value of the objective
function.
Step 3. Design the initial feasible solution. An initial basic feasible solution is obtained by
setting the decision variables to zero.
X1= X2 = ... = Xn = 0. Thus, we get S1 = b1, S2 = b2 ... Sm = bm.
Step 4. Set up the initial simplex tableau. For computational efficiency and simplicity, the
initial basic feasible solution, the constraints of the standard LPP as well as the objective
function can be displayed in a tabular form, called the simplex tableau as shown below.
Initial Simplex Tableau
Cj C1 C2 ... Cn,, 0 0 ... 0 Quantity Column Ratio
(Contribution Per XB/amn
Unit)
Basic CB X1, X2, ... Xn S1 S2 ... Sm b(=Xj)
variables
S1 CB1 a11 a12 ... a1n 1 0 ... 0 b1=Xb1
S2 CB2 a21 a22 ... a2n 0 1 ... 0 b2=Xb2
Sm CBm am1 am2…amn 0 0 ... 1 bm=Xbm
Zj=∑CBiXj 0 0 ... 0 0 0 ... 0 ∑CBiXj
Cj-Zj C1-Z1 C2-Z2 ... Cn-Zn
(Net contribution
per unit)
The interpretation of the data in the above tableau is given as under. Other simplex tableau
will have similar interpretations.
In the first row labeled "Cj", we write the coefficients of the variables in the objective
function. These values will remain the same in subsequent tableaus.

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The second row shows the major column headings.

In the first column of the second row, under the label "Basic variables" (also called
Product mix column), the basic variables are listed.
In the second column of the second row, under the label "CB", the coefficients of the
current basic variables in the objective function are listed. Thus the coefficients of S1,
S2... Sm, which are included in the initial feasible solution, are written in the CB
column.
The values listed under the non-basic variables (X1, X2… Xn) in the initial simplex
tableau consists of the coefficients of the decision variables in the constraint set. They
can be interpreted as physical rates of substitution.
The values listed under the basic variables (S1, S2... Sm) in the initial simplex tableau
represents the coefficients of the slack variables in the constraints set.
In the next column (also called Quantity column), we write the solution values of the
basic variables.
To find an entry in the Zj row under a column, we multiply the entries of that column by
the corresponding entries of ‘CB’ column and add the results, i.e., Zj= ∑CBiXj. The Zj
row entries will all be equal to zero in the initial simplex tableau. The other Zj entries
represent the decrease in the value of objective function that would result if one of the
variables not included in the solution were brought into the solution. The Zj entry under
the “Quantity Column" gives the current value of the objective function.
The last row labeled "Cj-Zj", called the index row or net evaluation row, is used to
determine whether or not the current solution is optimal or not. The calculation of Cj-Zj
row simply involves subtracting each Zj value from the corresponding Cj value for that
column, which is written at the top of that column. We observe that Cj -Zj, values are
meaningful for the non-basic variables only. This is because for a basic variable, Zj= 1 x
Cj = Cj so that Cj-Zj=Cj-Cj= 0.
Note: The entries in the Cj - Zj, row represent the net contribution to the objective function
that results by introducing one unit of each of the respective column variables. A plus value
indicates that a greater contribution can be made by bringing the variable for that column into
the solution. A negative value indicates the amount by which contribution would decrease if
one unit of the variable for that column were brought into the solution. Index row elements
are also known as the shadow prices (or accounting prices)
Step 5. We test if the current solution is optimum or not. If all the elements or entries in the
Cj- Zj row (i.e., index row) are negative or zero, then the current solution is optimum. If there
exists some positive number, the current solution can be further improved by removing one
basic variable from the basis and replacing it by some non-basic one. So start trying to
improve the current solution in line with the following steps.
Step 6. Further, iterate towards an optimum solution. To improve the current feasible
solution, we replace one current basic variable (called the departing variable) by a new non-
basic variable (called the entering variable).
We now determine the variable to enter into the solution mix, the entering variable.
One way of doing this is by identifying the column with the largest positive value in the
Cj - Zj row of the simplex table. The column with the largest positive entry in the Cj - Zj

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row is called the key or pivot column. The non-basic variable at the top of the key
column is the entering variable that will replace a basic variable.
Next, we determine the departing variable to be replaced in the basis solution. This is
accomplished by dividing each number in the quantity column by the corresponding
number in the key column selected in identifying the entering variable. We compute the
ratio b1/a1j, b2/a2j... bm/amn. This is called replacement ratio.

Replacement Ratio (RR) = Solution Quantity (Q)

Corresponding values in pivot column
The row with the minimum ratio is the key row or pivot row. The corresponding
variable in the key row (the departing variable) will leave the basis.
We identify the key or pivot element. This is the number that lies at the intersection of
the key column and key row of a given simplex tableau.
Step 7. Evaluate the new solution by constructing a second simplex tableau. After identifying
the entering and departing variable, all that remains is to find the new basic feasible solution
by constructing a new simplex tableau from the current one.
Now we evaluate or update the new solution in the following way:
New values for the key row are computed by simply dividing every element of the
key row by the key element to obtain a unit vector (1) in the key element.
The new values of the elements in the remaining rows for the new simplex table can
be obtained by performing elementary row operations on all rows so that all elements
except the key element (1) in the key column are zero, i.e. unit vector.
New entries in the CB column and XB column are entered in the new table of the
current solution.
Compute the values of the Cj - Zj row. If all the numbers in Cj - Zj row are either
negative or zero, an optimum solution has been obtained.
Step 8. If any of the numbers in Cj - Zj row are positive, repeat the steps (6-7) again until an
optimum solution has been obtained.
Note: Rules for Ties. In choosing a key column and a key row, whenever there is a tie
between two numbers, the following rules may be followed:
The column farthest to the left may be selected if there is a tie between two numbers
in the index row.
The nearest ratio to the top may be selected whenever there is a tie between two
replacement ratios in the ratio column.
Example: For Maximization Problems:
Maximize Z with inequalities of constraints in “< “form
Solve the problem using the simplex approach
Max. Z=300x1 +250x2
Subject to:
2x1 + x2 < 40 (Labor)
x1+3x2 < 45 (Machine)
x1 < 12 (Marketing)
x1 , x2 > 0

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Required:
a. Formulate this problem as a LPP
b. How many bottles of Punch A and Punch B the company should produce in order to
maximize profit? (Using the simplex method)
c. What is this maximum profit?
Solution:
Step 1: Formulate LPP Model
Step 2: Standardize the problem: i.e Convert constraint inequality into equality form by
introducing a variable called Slack variable.
Slack Variables: A slack variable(s) is added to the left hand side of a < constraint to covert
the constraint inequality in to equality. The value of the slack variable shows unused
resource.
- A slake variable emerges when the LPP is a maximization problem.
- Slack variables represent unused resource or idle capacity. Thus, they don’t produce
any product and their contribution to profit is zero.
- Slack variables are added to the objective function with zero coefficients.
Let that s1, s2, and s3 are unused labor, machine and marketing hrs respectively.
Max. Z=300x1 +250x2 + 0 s1 +0 s2+ 0 s3
St:
02 x1+x2 + s1 +0 s2+ 0 s3= 40
Standard form
x1+3x2 +0s1 + s2+ 0 s3= 45
x1 + 0s1 + 0s2+ s3= 12
x1 , x2 , s1 , s2, s3 > 0
Step 3: Obtain the initial simplex tableau: To represent the data, the simplex method uses a
table called the simplex table or the simplex matrix.
In constructing the initial simplex tableau, the search for of the optimal solution begins at the
origin. Indicating that nothing can be produced;
Thus, first assumption, No production implies that x1 =0 and x2=0
2 x1+x2 + s1 +0 s2+ 0 s3= 40 x1+3x2 +0 s1 + s2+ 0 s3= 45
2(0) +0 + s1 +0 s2+ 0 s3= 40 0 +3(0) + 0s1 + s2+ 0 s3= 45
s1= 40 – Unused labor hrs. s2= 45 – Unused machine hrs.
x1+0s1 +0s2+ s3= 12
0 +0s1 +0 s2+ s3= 12
s3= 12 – Unused Marketing hrs.
Therefore, Max .Z=300x1 +250x2 + 0 s1 +0 s2+ 0 s3
=300(0) +250(0) + 0(40) +0(45) + 0(12)
=0
Note: In general, whenever there are n variables and m constraints (excluding the non-
negativity), where m is less than n (m<n), n-m variables must be set equal to zero before the
solution can be solved algebraically.
a. Basic variables are variables with non-zero solution values.
Or: basic variables are variables that are in the basic solution. Basic variables have
0 values in the Cj-Zj row.
b. Non-basic variables are variables with zero solution values.

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Or: non-basic variables are variables that are out of the solution.
n=5 variables (x1 , x2, s1, s2, and s3) and m=3 constraints (Labor, machine and marketing
constraints), excluding non-negativity.
Therefore, n-m=5-3=2 variables(x1 and x2) are set equal to zero in the 1st simplex tableau.
These are non-basic variables. 3 Variables (s1, s2, and s3) are basic variables (in the 1st
simplex tableau) because they have non-zero solution values.
Step 4: Construct the initial simplex tableau
Initial simplex tableau

Slack variables
variables column

Solution quantity
Basic or Solution

Real or decision

columns
variable column
Profit per unit
column

column
Cj 300 250 0 0 0
Profit per unit
X1 X2 S1 S2 S3 row
SV Q

0 S1 2 1 1 0 0 40 R1

0 S2 1 3 0 1 0 45 Constraint R2
equation rows
0 S3 1 0 0 0 1 12 R3
Zj 0 0 0 0 0 0
Gross Profit row
Cj - Zj 300 250 0 0 0
Net Profit row
/Indicator row/
Step 5: Choose the “incoming” or “entering” variables
Note: The entering variable: is the variable that has the most positive value in the Cj - Zj row
also called as indicator row. Or the entering variable is the variable that has the highest
contribution to profit per unit.
a. X1 in our case is the entering variable
b. The column associated with the entering variable is called key or pivot column ( X1
column in our case )
Step 6: Choose the “leaving “or “outgoing” variable
In this step, we determine the variable that will leave the solution for X1 (or entering variable)
Note: The row with the minimum or lowest positive (non-negative) replacement ratio shows
the variable to leave the solution.
Replacement Ratio (RR) = Solution Quantity (Q)
Corresponding values in pivot column

Note: RR>0
- The variable leaving the solution is called leaving variable or outgoing variable.

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- The row associated with the leaving variable is called key or pivot row (s3 column in
our case)
- The element that lies at the intersection of the pivot column and pivot row is called
pivot element(No 1 in our case)
Step 7: Repeat step 3-5 till optimum basic feasible solution is obtained.
Or: repeat step 3-5 till no positive value occurs in the Cj - Zj row.
Note:
- Divide each element of the pivot row by the pivot element to find new values in the
key or pivot row.
- Perform row operations to make all other entries for the pivot column equal to zero.

2nd simplex tableau

Cj 300 250 0 0 0

SV X1 X2 S1 S2 S3 Q

0 S1 0 1 1 0 -2 16 R’1=R1-2R’3

0 S2 0 3 0 1 -1 33 R’2=R2-R3
300 X1 1 0 0 0 1 12 R’3=R3
Zj 300 0 0 0 300 3600 1
Cj - Zj 0 250 0 0 -300

3rd simplex tableau

Cj 300 250 0 0 0

SV X1 X2 S1 S2 S3 Q
R’’1=R1-R’2
0 S1 0 0 1 -1/3 -5/3 5
R’’2=R2/3
250 X2 0 1 0 1/3 -1/3 11
R’’3=R’3
300 X1 1 0 0 0 1 12
Zj 300 250 0 250/3 650/3 6350
Cj - Zj 0 0 0 -250/3 - 650/3

Since all the Cj - Zj < 0 optimal solution is reached at.

Therefore, X1=12, X2=11, S1=5 and Max Z=6350
Exercise 1:
A Juice Company has available two kinds of food Juices: Orange Juice and Grape Juice.
The company produces two types of punches: Punch A and Punch B. One bottle of punch A
requires 20 liters of Orange Juice and 5 liters of Grape Juice.1 Bottle of punch B requires 10
liters of Orange Juice and 15 liters of Grape Juice.

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From each of bottle of Punch A a profit of $4 is made and from each bottle of Punch B a
profit of $3 is made .Suppose that the company has 230 liters of Orange Juice and 120 liters
of Grape Juice available

Juice needed for one bottle of

Juice Punch A Punch B Juice Available
__________________________________________________________________________________
Orange Juice (lt) 20 10 230
Grape Juice (lt) 5 15 120
Profit per tent $4 $3
__________________________________________________________________________________
Let X1= the No of bottles of punch A produced.
X2= the No of bottles of punch B produced.
Required:
a. Formulate this problem as a LPP
b. How many bottles of Punch A and Punch B the company should produce in order to
maximize profit? (Using the simplex method)
c. What is this maximum profit?
II. Minimization Problems
Minimize Z with inequalities of constraints in “> “form
There are two methods to solve minimization LP problems:
a. Direct method/Big M-method/: Using artificial variables
b. Conversion method: Minimization by maximizing the dua
 Surplus Variable (-s):
- A variable inserted in a greater than or equal to constraint to create equality. It
represents the amount of resource usage above the minimum required usage.
- Surplus variable is subtracted from a > constraint in the process of converting the
constraint to standard form.
- Neither the slack nor the surplus is negative value. They must be positive or zero.
Thus, in order to avoid the mathematical contradiction, we have to add artificial variable (A)
 Artificial variable (A):
Artificial variable is a variable that has no meaning in a physical sense but acts as a tool to
create an initial feasible LP solution.
Note:
Type of constraint To put into standard form
< ---------------------------------------------Add a slack variable
= --------------------------------------------- Add an artificial variable
> ---------------------- Subtract a surplus variable and add artificial variable
a. Big M-method /Charnes Penalty Method/
The Big-M Method is a method which is used in removing artificial variables from the
basis .In this method; we assign coefficients to artificial variables, undesirable from the
objective function point of view. If objective function Z is to be minimized, then a very large
positive price (called penalty) is assigned to each artificial variable. Similarly, if Z is to be
maximized, then a very large negative price (also called penalty) is assigned to each of these
variables.

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Following are the characteristics of Big-M Method:

a. High penalty cost (or profit) is assumed as M
b. M is assigned to artificial variable A in the objective function Z.
c. Big-M method can be applied to minimization as well as maximization problems with
the following distinctions:
 Minimization problems: Assign +M as coefficient of artificial variable A in the
objective function Z
 Maximization problems: Here –M is assigned as coefficient of artificial variable
A in the objective function Z
d. Coefficient of S (slack/surplus) takes zero values in the objective function Z
e. For minimization problem, the incoming variable corresponds to the highest negative
value of Cj-Zj.
f. Solution is optimal when there is no negative value of Cj-Zj.(For minimization case)
Example: For Minimization Problems:
Use the penalty (Big-M) method to solve the following LPP
Minimize Z=25x1 +30x2
Subject to:
20x1+15x2 > 100
2x1+ 3x2 > 15
x1 , x2 > 0
Solution
Step 1: Standardize the problem
Minimize Z=25x1 +30x2 +0s1+0s2 +MA1+MA2
Subject to:
20x1+15x2- s1+A1 = 100
2x1+ 3x2 –s2+A2 = 15
x1, x2 , s1, s2 ,A1 ,A2 > 0
Step 2: Initial simplex tableau: The initial basic feasible solution is obtained by setting x1=
x2= s1= s2=0
No production, x1= x2= s1=0==>20(0) +15(0) - 0+A1 = 100 ==> A1 = 100
x1= x2= s2=0==>0(0)+3(0) - 0+A2 =15==> A2 = 15

Initial simplex tableau

Cj
25 30 0 0 M M

SV X1 X2 S1 S2 A1 A2 Q RR

M A1 20 15 -1 0 1 0 100 100/20=5

M A2 2 3 0 -1 0 1 15 15/2=7.5

Zj 22M 18M -M -M M M 115 M

Cj - Zj 25 -22M 30- 18M M M 0 0

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Note: Once an artificial variable has left the basis, it has served its purpose and can therefore
be removed from the simplex tableau. An artificial variable is never considered for re-entry
into the basis.
2nd Simplex Tableau

Cj
25 30 0 0 M

SV X1 X2 S1 S2 A2 Q

R’1=R1/20
25 X1 1 3/4 -1/20 0 0 5

R’2=R2-2 R’
M A2 0 3/2 1/10 -1 1 5

Zj 25 75/4+3/2M -5/4+1/10M -M M 125+5 M

Cj - Zj 0 45/4-3/2M 5/4-1/10 M M 0

Cj - Zj > 0==>Optimal solution is reached

X1=5/2
X2=10/3 and MinZ=162.5
Note: As long as an “A” variable is available in the solution variable column, the solution is
infeasible.
Exercise 1:
Use the penalty (Big-M) method to solve the following LPP
Min Z=5x1 +3x2
Subject to:
2x1+4x2 < 12
2x1+ 2x2 = 10
5x1+ 2x2 > 10
x1 , x2 > 0

2.2.3. Special Cases In Simplex Method

i. Mixed constraints
Example
Max Z=6x1 +8x2
Subject to:
x2 < 4
x1 + x2 = 9
6x1+ 2x2 >24
x1 , x2 > 0

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Standard form
Max. Z=6x1 +8x2 + 0 s1 +0 s2+ 0 s3-M A2- M A3
St:
x2 + s1 =4
x1+ x2 + A2 =9
6x1+2x2 - s3 + A3 =24 Standard form
All Variables >0

Initial simplex tableau

Cj 6 8 0 0 -M -M
SV X1 X2 S1 S3 A2 A3 Q

0 S1 0 1 1 0 0 0 4

-M A2 1 1 0 0 1 0 9
-M A3 6 2 0 -1 0 1 4
Zj -7M -3M 0 +M -M -M 24

Cj - Zj 7M +6 3M+8 0 -M 0 0

Ans: At the 4th tableau: X1 =5 ,X2 =4 ,S3 =14 and Max Z=62
Note:
For the initial basis, use artificial variables for constraints that have them. Otherwise, use a
constraint slack variable. Hence, surplus variables will not appear in an initial solution.
ii. Two incoming variables / Or Tie for entering variables/
In order to break this tie, the selection for the key column (entering variable) can be made
arbitrary. However; the number of solution can be minimized by adopting the following
rules:
1. If there is a tie between two decision variables, then the selection can be made arbitrary.
2. If there is a tie between a decision variable and a slack (or surplus) variable, then select
the decision variable to enter into basis first.
3. If there is a tie between slack or surplus variable, then selection can be made arbitrary.
Example:: If the equation is max Z:
Cj
SV X1 X2 S1 S3 Q

Zj
5 2 5
Cj - Zj
0

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In such a case,X1 is the entering variable

iii. Infeasibility
A situation with no feasible solution may exist if the problem was formulated improperly.
Infeasibility comes about when there is no solution that satisfies all of the problem’s
constraints.
In the simplex method, an infeasible solution is indicated by looking at the final tableau .In it,
all Cj - Zj row entries will be the proper sign to imply optimality, but an artificial variable (A)
will still be in the solution mix.
Example: Minimization case

Cj 5 8 0 0 M

SV X1 X2 S1 S2 A2 Q

5 X1 1 1 -2 3 0 200

8 X2 0 1 1 2 0 100
M A2 0 0 0 -1 1 20
Zj 5 8 -2 31-M M 1,800+200M
Cj - Zj 0 0 2 M-31 0
Even though all Cj - Zj are positive or 0(i.e the criterion for an optimal solution in a
minimization case), no feasible solution is possible because an artificial variable (A2)
remains in the solution mix.
iv. Unbounded Solutions
No finite solution may exist in problems that are not bounded .This means that a variable can
be infinitely large without violating a constraint.
In the simplex method, the condition of unboundedness will be discovered prior to reaching
the final tableau. We will note the problem when trying to decide which variable to remove
from the solution mix.
The procedure in unbounded solution is to divide each quantity column number by the
corresponding pivot column number. The row with the smallest positive ratio is replaced. But
if the entire ratios turn out to be negative or undefined, it indicates that the problem is
unbounded.
Example: Maximization case

Cj 6 9 0 0
SV X1 X2 S1 S2 Q
RR
9 X2 -1 1 2 0 30 30/-1=-30
Unacceptable RRs
0 S2 -2 0 -1 1 10
10/-2=-5
Zj -9 9 18 0 270

Cj - Zj 15 0 -18 0

Pivot Column

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The solution in the above case is not optimal because not all Cj - Zj entries are 0 or negative,
as required in a maximization problem. The next variable to enter the solution should be
X1.To determine which variable will leave the solution, we examine the ratios of the quantity
column numbers to their corresponding numbers in the X1 or pivot column. Since both pivot
column numbers are negative, an unbounded solution is indicated.
- No unbounded solutions, no outgoing variable will exist
v. Degeneracy
/Tie for leaving basic variable (key row)/
If there is a tie for the smallest ratio, this is a signal tat degeneracy exists. Degeneracy can
occur right in the first (initial tableau).This normally happens when the number of constraints
is less than the number of variables in the objective function. Problem can be overcome by
trial and error method.
5 8 2 0 0 0
Cj

SV X1 X2 X3 S1 S2 S3 Q
RR

8 X2 1/4 1 1 -2 0 0 10 10/1/4=40

0 S2 4 0 1/3 -1 1 0 20 20/4=5 Ti
0 S3 2 0 2 2/5 0 1 10

Zj 2 8 8 16 0 0 80
Cj - Zj 3 0 -6 -16 0 0

Degeneracy could lead to a situation known as cycling, in which the simplex algorithm
e for the smallest
alternatives back and forth between the same non-optimal solutions, i.e, it puts a new
ratio variable
in, then takes it out in the next tableau, puts it back in ,and so on. indicates
One simple way of dealing with the issue is to select either row (S2 or S3 in degeneracy.
this case)
10/2=5
arbitrary. If we are unlucky and cycling does occur, we simply go back and select the other
row.
Remark: When there is a tie between a slack and artificial variable to leave the basis, the
preference shall be given to artificial variable to leave the basis and there is no need to apply
the procedure for resolving such cases
vi. Multiple Optimal Solutions
Multiple optimal solutions exist when non-basic variable contains zero on its Cj - Zj row
Example: Maximization problem

Complied By: Fitsum B. 29

OPERATION RESEARCH

Cj 3 2 0 0

SV X1 X2 S1 S2 Q

2 X2 3/2 1 1 0 6

0 S2 1 0 1/2 1 3

Zj 3 2 2 0 12
Cj - Zj 0 0 -2 0

MaxZ=3X1+2X2
X1=0, X2=6, S2=3 and MaxZ=12 or: X1=3, X2=3/2 and MaxZ=12
The Cj - Zj value of the Non-basic variable (X1) is 0.Thus, there is alternative optimal
solution.

Summary
- The term linear programming refers to a family of mathematical techniques for
determining the optimum allocation of resources and obtaining a particular objective when
there are alternative uses of the limited or constrained resources.
- The linear programming models exhibit certain common characteristics: An objective
function to be maximized or minimized, a set of constraints, decision variables for
measuring the level of activity, and linearity among all constraint relationships and the
objective function.
- The graphic approach to the solution LP problems is not efficient means of solving
problems. For one thing, drawing accurate graphs is tedious. More over the graphic
approach is limited to models with only two decision variables.
- Special cases that one face solving a problem graphically include: Mix of constraints,
unbounded solution, infeasibility, redundancy, multiple solution
- The simplex method is an algebraic procedure that starts with a feasible solution that is
not optimal and systematically moves from one feasible solution to another until an
optimal solution is found
- The variations described in general simplex approach include; maximization and
minimization problems, mixed constraint problems, problems with multiple optimal
solution, problems with no feasible solution, unbounded problems, tied pivot columns and
rows.
- Multiple optimal solution are identified by Cj-Zj(or Zj- Cj) =0 for a non basic variable.
To determine the alternate solution(s), enter the non basic variable(s) with a Cj-Zj value
equal to zero.
- An infeasible problem is identified in the simplex procedure when an optimal solution is
achieved and one or more of the basic variables are artificial.
- The unbounded problems are identified in the simplex procedure when it is not possible to
select a pivot row- that is, when the replacement ratio is negative or undefined.
- Degeneracy occurs when there is a tie for pivot row.

Complied By: Fitsum B. 30