Operations Research Review 2018

Eric A. Siy, MSIE

Assistant Professor, ,
Dept of Industrial Engineering, De La Salle University
2401 Taft Avenue, Manila
email: [email protected]

Operations Research 1 and 2 Coverage:

Operations Research 1
 Linear Programming Modelling
 Simplex Method
 Post-optimality Analysis
 Transportation and Assignment Models

Operations Research 2
 Network Optimization
 Decision Theory
 Integer Programming
 Non-linear Programming
 Dynamic Programming
 Probability Review
 Queuing Theory
 Markov Analysis
 Simulation
 Operations Research Review 2018

1. What is the optimal solution to the following Linear Program?

Max Profit = 3X1+4X2+6X3+14X4

Such that 3X1+15X2+X3+4X4 ≤ 100
5X1+2X2+4X3+2X4 ≤ 120
X1, X2, X3, X4 ≥ 0

Choice X1 X2 X3 X4 Profit
A) 0 60 16.67 0 340
B) 0 0 20 20 400
C) 0 0 0 60 840
D) 0 0 0 25 350
E) 33.33 0 16.67 0 1,040

Solution: (B)

Calculator tip: Use the CALC Function to enter values of Xi on each constraint.

Explanation:
(A) is infeasible on both constraints
(C ) is infeasible on first constraint eventhough it is feasible on second constr.
(D) is feasible with profit=350 but (B) is also feasible and has a higher profit of 400
(E ) is infeasible on both constraints
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2. What is the lowest total cost to the following assignment of workers on jobs?

Cost matrix Worker A Worker B Worker C Worker D

Job 1 15 15 20 13
Job 2 12 8 22 16
Job 3 20 22 15 18
Job 4 20 13 18 20

a) 55 b) 43 c) 46 d) 59 e) 53

Answer (e) 53 occurs when A-2, B-4, C-3, D-1

15 15 20 13
12 8 22 16
20 22 15 18
20 13 18 20
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15 15 20 13

12 8 22 16

20 22 15 18

20 13 18 20

15 15 20 13
12 8 22 16
20 22 15 18
20 13 18 20
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The next four questions refer to the following animation project:

Task Description Task Time Immediate

(Weeks) predecessor/s
A Do the animation 12 None
B Prepare the credits 2 None
C Score the music 8 None
D Record the music 2 C
E Mix the music and animation 1 A, B, D
F Prepare the opening cartoon 8 None
G Prepare the preview 1 E
H Edit 2 E, F
I Make the final copies 1 G, H

3. Find the shortest possible time to finish all the jobs that comprise the animation project:

a) 16 weeks c) 18 weeks e) 21 weeks

b) 17 weeks d) 19 weeks

Answer (A) 16 weeks

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4. Find the set of jobs comprising the critical path for the project posed in the previous
question.

Task Description Task Time Immediate

(Weeks) predecessor/s
A Do the animation 12 None
B Prepare the credits 2 None
C Score the music 8 None
D Record the music 2 C
E Mix the music and animation 1 A, B, D
F Prepare the opening cartoon 8 None
G Prepare the preview 1 E
H Edit 2 E, F
I Make the final copies 1 G, H

A) AEGHI C) ACDEHI E) ACDFHI

B) ADEGHI D) AEHI

Ans: AEHI is the longest total path from start to finish.

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5. Based on the previous question’s project durations, what is the slack for activity F?

a) Zero b) 1 week c) 2 weeks d) 5 weeks e) 10 weeks

Answer: d) 5 weeks Slack=LS-ES or LF-EF

6. What is the maximum slack of any activity in the animation project?

a) 1 week b) 2 weeks c) 5 weeks d) 10 weeks e) 11 weeks

Answer: d) 10 weeks, Activity B must be finished by end of 12 weeks (same deadline

as its parallel task A), but only needs 2 weeks duration, so slack is 12-2 = 10
weeks.

7. Solve for the optimal solution to the following LP problem:

 Operations Research Review 2018

Max Z = 6X1+ 5X2

Such that 5X1+ X2 ≤ 150
2X1+ 4X2 ≤ 190
X1 and X2 ≥ 0

Choice X1 X2 Z
A 30 0 180
B 22.22 38.89 327.78
C 95 0 570
D 58.33 18.33 441.66
E 0 47.5 237.5

Answer: (B)
Solution: Graphical approach since only 2 vars.
Calculator tip: Mode EQN 2 simultaneous equations Ax+By=C

X1 X2 Z
30 0 180
22.22 38.89 327.78
0 47.5 237.5
Corner pts
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8. The Knights of Malabanan uses Linear programming to establish optimal

production plan of its two products X and Y, given it has the objective of
minimizing costs. The following graph has been established bearing in mind the
various constraints of the business. The polygon ABCDE represents the feasible
region.

C
D

Which points are most likely to give the optimal solution?

a. A and B only
b. A, B and C only
c. D and E only
d. B, D and E only

Answer (C.) D and E only

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Explanation:

Since this is a minimization problem, points closest to the origin (0,0) would
be deemed optimal.

Point A is on the same line as E, so E will always be the lower quantity than
A. The same can be said regarding C with D. D is closer to zero than C.
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The next two questions refer to the following problem:

Creative Coffees sells two types of coffees to retail stores: Regular and Decaf. For the
current month, the company has 200 tons of coffee beans in inventory and has scheduled up
to 300 hours of processing time for roasting. Each ton R of regular coffee requires one ton of
beans and one hour of roasting, yielding P150,000 of profit. Each ton D of decaf also requires
one ton of coffee but needs two hours of roasting, and yields P250,000 of profit.

9. The following are parts of the linear programming formulation for the Creative Coffees
production planning situation EXCEPT

A) Max 150,000 R + 250,000 D

B) R + D ≤ 200
C) R + 2D ≤ 300
D) 2R+D ≤ 200
E) R, D ≥ 0

Ans: (D) roasting constraints require 2 hours for Decaf D, not 2 hours on Regular R, and total
time right hand side value is not 200, but rather 300.
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10. What should be the production plan to maximize total profit for Creative Coffees for the
following month?

Choice Regular R Decaf D

(in tons) (in tons)
A 200 0
B 133.33 66.67
C 100 100
D 58.33 141.67
E 0 150

Answer: ( C ) R=100, D=100 will have max profit of P40,000,000.

Corner points
Regular R Decaf D Profit= 150R+200D (in thousands)
200 0 30,000
100 100 40,000
0 150 37,500
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11. A small company makes only two products (quantities X and Y) with the following
production constraints representing two machines and their maximum availability:

2X+3Y ≤ 18
2X+ Y ≤ 10

If the profit equation is P4.00X + P2.00Y, the maximum possible profit is:

a. P 2,000 c. P 2,100 e. P1,800

b. P 2,400 d. P 1,400

Answer: (a)

Explanation: Corner points are (X,Y) =(5,0) (0,6) and intersection (3,4). Two
optimal corner points have same profit of P2,000. X,Y= (5,0) and
intersection point X,Y = (3,4). This suggests that the slope of the
objective function is thee same as the binding constraint. (Constraint
2X+Y=10 has the same slope as objective function 4X+2Y.)
The choices (b), (c) (d) and e) are incorrect because the maximum
profit is P2,000.
 Operations Research Review 2018

For the next three questions, the ffg LP problem is to be solved:

Minimize Z=5X1+3X2, st 3X1+2X2≥60; 4X1+5X2≥90, X1 and X2 are non-negative.

12. The optimal solution [X1, X2] vector is which of the following?
a. [22.5, 0] c. [0, 30] e. none of these
b. [17.14, 4.28] d. [4.28, 17.14]

13. By how much can the unit cost contribution of X1 change without changing the current
optimal solution?
a. +0.33 c. +0.50 e. no feasible range.
b. -0.33 d. -0.50

14. By how much can the unit cost contribution of X2 change without changing the current
optimal solution?
a. +0.33 c. +0.50 e. no feasible range.
b. -0.33 d. -0.50

Answers: [C, D, A]

Explanation (#12, 13, 14): Create a corner points table:

 Operations Research Review 2018

X1 X2 Cost=5X1+3X2
0 30 90
120/7=17.14 30/7=4.28 98.57
22.5 0 112.5

X2 has minimum per unit cost of 3 pesos. The feasibility region may be drawn on X1-X2
(XY) axis. One can see that the slope of the objective function is (-5/3), for which the corner
(X1,X2)=(0,30) is the closest to the origin, hence minimizing total cost. It is noteworthy to see
that the binding constraint is 3X1+2X2=60 line. Multiple optimal answers would occur if the cost
function slope is also like this binding constraint (i.e. slope = -3/2).
The direction of change can be determined. Since X2 costs 3 pesos is minimal, then
the optimal solution can change if it goes up (increase). The direction for the cost of X1 would
be opposite, when the 5 pesos per unit cost can go down.
Try out the ±0.33 cost change first and make a table using the same corner points, to
simulate the change in costs for X2 first.

X1 X2 Cost=5X1+3X2 TrialCost=5X1+3.33X2 New =5X1+3.35X2

0 30 90 100 100.50
120/7=17.14 30/7=4.28 98.57 100 100.07
22.5 0 112.5 112.5 112.5

Question #14) solution explanation:

We can see that increasing the cost of X2 from 3.33 to 3.35 changes the optimal answer [0,90]
to the new corner [17.14, 4.28], so this sensitivity analysis reports that X2 can only rise up to
+0.33.

Question #13 solution confirmation:

Decreasing the X1 cost of P5 per unit by 0.33 or 0.50 can be done on a table:

X1 X2 Cost=5X1+3X2 TrialCost=4.67X1+3X2 TrialCost=4.50X1+3X2

0 30 90 90 90
120/7=17.14 30/7=4.28 98.57 92.88 90
22.5 0 112.5 105.075 101.25

When P5 cost decreases by P0.50 to P4.50 does the optimal answer remain at 90. This
satisfies the sensitivity analysis simulation. We therefore choose -0.50.
A quick calculation at Cost=4.25X1 + 3X2 could confirm that at [X1,X2] = [0,30] Cost is P90,
while at [17.14, 4.28] cost is lower at 85.7142, representing a new optimal cost that is lower than
the current P90.
 Operations Research Review 2018

The next three numbers refer to the following data:

A company finds that next year, materials and labor are likely to be in short supply.
The following unit cost accounting table was made available for your analysis.

Product A B
Materials (P2/kg) P 6.00 P 8.00
Labor (P60/hr) 30.00 18.00
Factory Overhead 5.00 3.00
(P10/hr)
Variable Cost 41.00 29.00
Selling Price 85.00 75.00
Contribution Margin 44.00 46.00

There are only 30,000 kgs of material and 36,000 labor hours available. The
company also has an agreement to supply 1,000 units of product A which must
be met.

15. The Objective function for the problem above is:

a) Max 44A + 46B
b) Max 85 A + 75B -36A – 26B
c) Min 41A + 29B
d) Min 85 A + 75B -36A – 26B

Answer: (A) Max 44A + 46B

16. The optimal production plan is:

 Operations Research Review 2018

a) A= 6,500 B= 5,000
b) A=10,000 B= 5,000
c) A=6,500 B= 0
d) A=10,000 B=0

17. The optimal production plan will contribute an objective function

value of:

a) 516,000 c) 670,000
b) 440,000 d) 299,000

Answer: (D) A=10,000 units ; B= 0 units

with profit (B) 440,000
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Explanation (#16-17): The LP model for this problem should be:

Max 44 A + 46 B
St 3 A + 4 B ≤ 30,000 kgs  (Binding constraint with intercepts
0.5A+0.3B ≤ 36,000 kgs A=10,000, B=7,500)
A ≥ 1000 units
B ≥0

Optimal point at (A=10,000, B=0) and total profit is P 440,000

 Operations Research Review 2018

The next three questions refer to the following situation.

A manufacturer makes two products, each requiring time on two different machines.
Each unit of product 1 requires 3/4 hour of machine 1, and 1/4 hour on machine 2;
each unit of product 2 requires 1/4 hour on machine 1, and 1/3 hour on machine 2.
Machine 1 is available for 12 hours each day, and Machine 2, 10 hours. The unit profit
on Products 1 and 2 are 50 pesos and 60 pesos, respectively.

18. Determine the optimal combination of the products that will

maximize profit.
a) Product 1= 0 units, Product 2= 30 units
b) Product 1= 8 units, Product 2= 30 units
c) Product 1= 8 units, Product 2= 24 units
d) Product 1= 16 units, Product 2= 24 units
e) Product 1= 16 units, Product 2= 0 units

19. What is the maximal profit in pesos?

a) 1,840 b) 1,800 c) 2,200 d) 2,240 e) 800

20. Consider the same situation in the last question: Now suppose an
additional 45 minutes were to become available to Machine 1, what
would be the difference in the optimal profit levels (in pesos)?
a) 2.16 b) 4.33 c) 6.50 d) 8.67

Answers: [C, A, C]
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Explanation (#18, 19):

Explanation (Q#20) If 45 mins would be added to Machine 1 time, then the constraint
 Operations Research Review 2018

(3/4) X1+(1/4) X2 ≤ 12
Turns into: (3/4) X1+(1/4) X2 ≤ 12.75 or
multiplying both sides by 12: 3X1+X2 ≤ 51

New corner points graph:

Optimal profit at intersection point becomes 1,846.50 or an increase from old value 1,840 by + 6.50
 Operations Research Review 2018

The next three questions refer to the following situation:

Two supply depots (S1 and S2) can serve the demand for three demand centers (D1,
D2 and D3). The cost to transport one unit of supply from supply depot to demand
center is shown on the table below:

Unit transfer costs Demand Center

Php per unit
D1 D2 D3
Supply S1 Php 25 20 18
depot S2 30 22 25

Supply depot 1 has 1,200 available units, while depot 2 has 2,000. The demand centers
have 1,200 units, 1,300 units and 700 units for D1, D2 and D3, respectively.

21. In the optimal allocation, how many units should supply depot 1 allocate to demand center
1?

a) 500 b) 700 c) 1,200 d) 1,300 e) 0

22. What is the minimum total transportation cost possible?

a) 76,100 c) 68,550 e) 53,400
b) 75,300 d) 74,700

Answer: (a) 500 ; (d) 74,700

 Operations Research Review 2018

Optimal solution: Total cost = 74,700: one could compute that (S1, D2) cell has a unit
contribution cost of +3, and (S2, D3) has a contribution cost of +2, both
positive, signifying that any allocation to these cells results in the total cost
becoming higher than present solution.

23. An initial solution to the problem above is represented by the following table:

What is wrong with this solution? How does one remedy this fault?
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Ans: For a transportation problem table with n rows and m columns, the required basic
variables should be num(rows)+(cols)-1= 2+3-1 = 4 cells. The initial solution
shown only has 3 cells occupied.

Remedy: add a zero to any one of the three unoccupied cells, and make this occupied
cell become the required 4 basic variables, with two unoccupied cells which can
be used to iterate out of this basic solution.

Principle: In any LP problem with n variables and m constraints, the number of basic
variables for the iterative simplex procedure is (n+m-1).
 Operations Research Review 2018

Solve the following Transportation Problem to answer the next 3 questions:

A Baking firm can produce a specialty bread in either of its two plants. Plant A can
produce up to 2,500 loaves a day with a unit cost of P23. Plant B can produce 2,100 loaves a
day but at a higher price of P25 per loaf. Four restaurants are willing to purchase their bread,
with demands and prices they are willing to pay as follows:

Chain 1 Chain 2 Chain 3 Chain 4

Maximum daily demand (loaves) 1,800 2,300 550 1,750
Offer price (Peso/loaf) 39 37 40 36

The cost (in pesos) to deliver a loaf from a plant to a restaurant chain is given in the following table:

Chain 1 Chain 2 Chain 3 Chain 4

Plant A 6 8 11 9
Plant B 12 6 8 5

Determine a delivery set-up for the baking firm that will maximize its total profit from this product.

24. What is the per unit profit contribution to delivering a loaf of the product from Plant B to
Restaurant Chain 3?
a. 2 c. 6 e. 10
b. 4 d. 7

Ans: (d) 7
Explanation: Profit= Selling price offer less Plant B cost less transportation B3 =
40 - 25 - 8 = 7
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25. In the optimal allocation of plant capacities, how many loaves will be serviced by Plant A
for Chain 1 ?
a. 1,550 c. 1,050 e. 1,750
b. 1,800 d. 550

Answer: b) 1,800 loaves from Plant A to Chain 1

Explanation: Since cell A1 has the single highest unit profit of 10, we allocate as much as
possible for this cell, which is the demand for Chain 1 of 1,800.
 Operations Research Review 2018

26. What is the maximum profit possible for the product?

a. P 35,350 c. 36,650 e. 35,300
b. P 34,750 d. 37,500

Answer: (a) 35,350

Solution: Confirm optimal solution (alternative optimal solutions exist)

Procedure: Initial MaxProfit + one iteration Stepping stone

Optimal solution 1 of 2:
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Optimal solution 2 of 2

The next 3 questions refer to the following project:

Task Duration (days) Immediate

predecessor
A 20 None
B 8 A
C 15 A
D 5 B, C
E 25 D
F 18 C
G 17 F
H 15 E, G
I 12 E, G
J 10 E, G
K 4 H, I, J

27. What is the shortest expected time to finish the project?

a) 72 days b) 75 days c) 84 days d) 89 days e) 149 days
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Ans: 89 days, Critical path ACFGHI

28. What is the slack of activity G?

a. 0 b. 3 c. 5 d. 8 e. 12

Ans: a) Zero slack since Activity G is on the critical path.

29. What is the total float time for activity path ABDEIK?
a) 5 days b) 8 days c) 12 days d) 15 days e) 81 days

Ans: (b) 8 days

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Explanation: Total Float time can only exist on a non-critical path. Total float time is the
time that a set of jobs can be delayed without causing a delay in the project total completion
time.

Path ABDEIK has a total float time of 8 days (5 days for [BDE vs CFG] + 3 days for [I vs
H]) or simply the difference between the critical path and the path in question i.e 89- 81 = 8
days)

Differentiate free float for an activity and total float for a path.

Source: Wikipedia “Float: Project management”

 Operations Research Review 2018

The next three questions refer to the following case:

A dietitian is planning the menu for the evening meal at a university dining hall.
Three main items are served, all having different nutritional content. The dietitian is
interested in providing at least the minimum daily requirement of each of three vitamins
in this one meal. The following table summarizes the vitamin content per ounce of each
type of food, as well as the cost per ounce of each food and the minimum daily
requirements for the three vitamins. Any combination of these foods may be selected as
long as the total serving size is at least 9 ounces.

Vitamin 1 Vitamin 2 Vitamin 3 Cost per ounce ($)

Food
1 50 mg 20 10 $0.10
2 30 10 50 0.15
3 20 30 20 0.12
Minimum requirement 290 mg 200 210

To determine the number of ounces of each food item to include in the meal so as to
minimize the total cost of said meal, a linear programming formulation was required.
We let Xi refer to the number of ounces from food item i (i=1,2,3).

30. Which of the following is the correct objective function?

a. Max 290X1+200X2+210X3
b. Min 0.10X1+0.15X2+0.12X3
c. Max 0.10X1+0.15X2+0.12X3
d. Min X1+X2+X3-9
e. Min total cost
31. The following are the constraints of the LP model EXCEPT:
a. 50X1+20X2+30X3≥290
b. 10X1+50X2+20X3≥210
c. 50X1+30X2+20X3≥290
d. 20X1+10X2+30X3≥200
e. X1, X2, X3 ≥0
32. Which of the following constraints are missing from the set of correct constraints in the
previous question?
a. 50X1+30X2+20X3≥200
b. X1+X2+X3≥9
c. 9X1+9X2+9X3≥90
d. 20X1+30X2+20X3≥210
e. 50X1+30X2+20X3≥290

Answer: [B, A, B]
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The complete formulation of the LP is :

Minimize 0.10X1+0.15X2+0.12X3 (minimum total cost)

St 50X1+30X2+20X3≥290 (vitamin 1 requirement)
20X1+10X2+30X3≥200 (vitamin 2 requirement)
10X1+50X2+20X3≥210 (vitamin 3 requirement)
X1 + X2 + X3 ≥9 (total weight minimum)
X1, X2, X3 ≥ 0 (non-negativity constraint)
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The following optimal tableau was made available for your analysis regarding a
maximization problem.

Z X1 X2 X3 S1 S2 S3 S4 S5 Value
0 0 0 1 0 0 0 0.429 -0.286 1,200
0 0 0 0 0 0 1 -0.429 0.286 3,800
0 0 1 0 -0.5 0 0 -0.143 0.429 1,850
0 0 0 0 0.5 1 0 0.143 -0.429 1,150
0 1 0 0 1 0 0 0 0 2,500
1 0 0 0 1.5 0 0 2.429 0.714 35,050

In the table above: Z is the total profit, X1 is the budgeted output of product 1, X2
is budgeted output of product 2, X3 is for product 3. S1 is the unsatisfied demand for
product 1, S2 the unsatisfied demand for product 2 and S3 unsatisfied demand product
3. S4 is the unutilized type A machining time, S5 is the unutilized type B machine time.
Interpret the final tableau by indicating the answers to the following queries.
33. How many units of product 1, 2 and 3 should be budgeted for production?
a. 3,800, 1,200, 1,850 units respectively
b. 2,500, 3,800, 1,850 units respectively
c. 2,500, 1,850, 1,200 units respectively
d. 1,850, 3,800, 2,500 units respectively

Ans: C

34. What is the expected profit from the optimal production plan?
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a. 35,050 c. 3,750
b. 38,000 d. 2,500

Ans: (a) 35,050

35. How much is the unsatisfied demand for each product 1, 2 and 3?
a. 2,500, 0 , 3,800 units respectively
b. 0 , 1,150, 3,800 units respectively
c. 2,500, 1,850, 1,200 units respectively
d. 3,800, 7,140, 1,850 units respectively

Z X1 X2 X3 S1 S2 S3 S4 S5 Value
0 0 0 1 0 0 0 0.429 -0.286 1,200
0 0 0 0 0 0 1 -0.429 0.286 3,800
0 0 1 0 -0.5 0 0 -0.143 0.429 1,850
0 0 0 0 0.5 1 0 0.143 -0.429 1,150
0 1 0 0 1(Not) 0 0 0 0 2,500
1 0 0 0 1.5 0 0 2.429 0.714 35,050

Ans: (b) Explanation: S1 is not a basic variable, so its value should be zero.
S2 and S3 are basic variables due to having zero entries in its column
except for the a single row with a “1”. We read off the row with “1” as
the value of such variables.
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36. How much would profit increase if one unit of type A machining time becomes
available ?
a. 0.429 b. 0 c. 2.429 d. 0.714

37. How much would profit decrease if one unit of type B machining time is
reduced?
a. 0.286 b. 0.714 c. 0.429 d. 2.429

Answers: C. 2.429 and B. 0.714

Explanation: The question refers to “shadow prices” which appear as the entries in the
row for Z Profit for the constraints with slack values S4 and S5.

Z X1 X2 X3 S1 S2 S3 S4 S5 Value
0 0 0 1 0 0 0 0.429 -0.286 1,200
0 0 0 0 0 0 1 -0.429 0.286 3,800
0 0 1 0 -0.5 0 0 -0.143 0.429 1,850
0 0 0 0 0.5 1 0 0.143 -0.429 1,150
0 1 0 0 1 0 0 0 0 2,500
1 0 0 0 1.5 0 0 2.429 0.714 35,050
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38. The initial simplex tableau for the following LP problem must be constructed.

Max P = 3X1 + 4X2

St 2X1+ 4X2 ≤ 120 (constraint 1)
2X1 + 2X2 ≤ 80 (constraint 2)
X1, X2 ≥ 0 (non-negativity constraints)

How many slack variable columns must be accommodated in the

initial simplex tableau?
a) 1 b) 2 c) 3 d) 4

For the following problem, construct the initial simplex tableau using S1, S2, …. as your
slack variables. Answer the following four questions:

Max P = 3X1 + 4X2

St 2X1+ 4X2≤ 120 (constraint 1)
2X1 + 2X2 ≤ 80 (constraint 2)
X1, X2 ≥ 0 (non-negativity constraints)

39. Determine the Entering variable (EV) and Leaving variables (LV) from the initial
tableau.

EV LV
a. X1 S1
b. X2 S2
c. X1 S2
d. X2 S1
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40. After the entering and the leaving variables are identified, their so-called pivot
element is useful for which next step in the Simplex procedure?
a. The Right hand side value should be divided by the
corresponding EV column element.
b. The other elements on the EV column should be turned to zero
using matrix row operations.
c. The pivot cell value should be divided by itself, along with every
cell on the pivot element’s row.
d. The other elements on the EV row should be turned to zero
using matrix row operations.
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Demonstration of Simplex procedure

Initial Tableau:
EV
Variable X1 X2 S1 S2 RHS Ratio
(choose smallest)
P -3 -4 0 0 0
S1 2 4 1 0 120 120/4=30
S2 2 2 0 1 80 80/2=40

First iteration part 1: Turn S1 row into X2

EV
Math ops Variable X1 X2 S1 S2 RHS
P -3 -4 0 0 0
X2=S1/4 X2 S1 2/4=0.5 4/4=1 ¼=0.25 0 120/4=30
S2 2 2 0 1 80

First iteration part 2: turn all other rows in column X2 to zeroes 0

Math ops Variable X1 X2 S1 S2 RHS

P’=P+4X2 P -1 0 1 0 120
X2 0.5 1 0.25 0 30
S2’=S2-2X2 S2 1 0 -0.5 1 20

First iteration part 3: Check if optimal tableau is reached: Since there still is a
negative entry in the objective row P (under X1), another iteration
must be made. Find lowest ratio under the entering var X 1 , next
iteration’s leaving variable is S2.

EV
Variable X1 X2 S1 S2 RHS Ratio
P -1 0 1 0 120
X2 0.5 1 0.25 0 30 30/0.5=60
S2 1 0 -0.5 1 20 20/1=20
 Operations Research Review 2018

Second iteration part 1: Turn S2 row into X1

EV
Math ops Variable X1 X2 S1 S2 RHS
P -1 0 1 0 120
X2 0.5 1 0.25 0 30
X1=S2/1 X1 S2 1 0 -0.5 1 20

Second iteration part 2: turn all other rows in column X1 to zeroes 0

Math ops Variable X1 X2 S1 S2 RHS

P’=P+1X1 P 0 0 0.5 -1 140
X2’=X2-0.5X1 X2 0 1 0.5 -0.5 20
X1 1 0 -0.5 1 20 Optimal

Second iteration part 3: Check if optimal tableau is reached: Since all no negative
entries exist in objective row P, optimality is achieved.

Max P = 3X1 + 4X2

St 2X1+ 4X2 ≤ 120 (constraint 1)
2X1 + 2X2 ≤ 80 (constraint 2)
X1, X2 ≥ 0 (non-negativity constraints)

Optimal solution: X1=20, X2=20 with Profit P = 3X1 + 4X2

=3(20)+4(20) = 140