Simplex Method

The simplex algorithm is an iterative procedure for finding the optimal solution to a linear
programming problem, in a systematic manner.

Conditions for Application of Simplex Method

In order to apply the simplex method to the linear programming problem, the
following two conditions have to be satisfied:
i. The RHS of each of the constraints, bi, should be non-negative.
If an LPP has a constraint for which a negative resource value is
given, in the first step it should be converted into positive value by
multiplying both sides of the constraint by -1. In this process the direction
of the inequality changes.
Eg: 8x1-3x2 ≥ -6
The above constraint should be changed into -8x1 + 3x2 ≤ 6.

ii. Each of the decision variables of the problem, should be non-negative.

If the problem has a variable which is ‘unrestricted in sign’
or ‘free’, so that it can assume negative values as well as non-negative
values. In such case replace the unrestricted variable by the difference of
two non-negative variables.
Eg:
Maximize Z = 5x1 + 7x2 – 2x3
Subject to
2x1 + 5x2 + 3x3 ≤ 80
5x1 + 2x2 - 2x3 ≤ 30
x2 + 6x3 ≤ 42
x1 , x2 ≥ 0 , x3 unrestricted in sign.
Since x3 is unrestricted in sign, represent it by a difference of two non-
negative variables, say x4 and x5.

Substituting x3 = x4 – x5 in the above and simplifying, we get

Maximize Z = 5x1 + 7x2 – 2x4 + 2x5

Subject to
2x1 + 5x2 + 3x4 - 3x5 ≤ 80
5x1 + 2x2 - 2x4 + 2x5 ≤ 30
x2 + 6x4 – 6x5 ≤ 42
x1, x2, x4, x5 ≥ 0
After the solution is obtained, we should substitute the difference of the
values of x4 and x5 as the value of x3.
 Note: The working of the simplex method proceeds by preparing a series
of tables called Simplex tableaus.
Steps in Simplex Method for finding solution to Maximization
Problems

The steps involved in applying the simplex method are as follows:

Step1: Obtain the initial tableau and Solution

a. Convert the given LPP into standard LPP or the augmented form
of the LPP.
b. Set up the initial simplex tableau as follows:

i. First list all the variables contained in the problem

horizontally.
ii. Next, write the coefficients in the constraint equations
vertically under their respective variables.
iii. Next, write the constraint values on the right-hand side
against the rows.
iv. Finally, name the row cj and write the coefficients of the
various variables in objective function mentioned,
respectively, in the various columns representing the
variables.
c. Locate the identity (matrix) and the variables involved in it.
d. Determine the solution, represents the first feasible solution.
i. Set all variables other than those in the identity,
equal to zero and then assign the values of the
constants (bi’ s) to the variables in the identity.

 The variables in the identity are the basic variables

and the remaining ones are the non-basic variables.
 If a linear programming model has n variables and m
constraints, then m variables would be basic variables
and n-m variables would be non-basic.
 The basic variables form the basis and are known as
the variables in the solution.
 The initial solution is obtained by setting all the
decision variables equal to zero and obtaining the
solution with the help of the slack variables that form
an identity in the simplex tableau.

Step 2: Test if the solution is optimal. If it is optimal, then exit. If not

go to step 3.
a. Testing the optimality
 i. Calculate zj values : To obtain the value of zj under each
variable head column, first each element of that column is multiplied by the
corresponding coefficient of the solution variables appearing in the basis and
add up their products.

The values of zj represent the amount by which the profit would be

reduced if one unit of any of the variables (x1, x2, s1 or s2) were added to
the mix.

ii. Calculate ∆ j = cj - zj
 When the LPP is of maximization type, then all
∆ j ≤0 .
 When the LPP is of minimization type, then all
∆ j ≥ 0.
 ∆ j represents the net profit which would result
from introducing one unit of variable to the
product mix-that is, the solution.
 ∆ j row is also called the net- after-opportunity-
cost row, or the net evaluation row (NER).

Step 3: Obtain an improved solution and then go to step2.

The presence of positive ∆ j values suggests that the solution can be improved
upon by moving any one of the variables into the solution that are not there.

a. Select the variable that has largest ∆ j values. This is named as

the incoming variable. The column corresponding to this
variable is called the key column.
b. Next get the ratios (bi/aij) also called the replacement ratios, by
the dividing the bi values by the corresponding values in the key
column.
c. Disregarding any ratios for which the aij is zero or a negative
value, select the row with the least quotient. It is called the key
row and the variable corresponding to this represents the
outgoing variable.

d. The element which lies at the intersection of the key column and
the key row is termed as the key element.

Using the information on key column, key row and key element, another tableau
is derived wherein the various elements are obtained as given here:
i. Divide each element of the key row (including bi) by the key element to get
the corresponding values in the new tableau. The row of values so derived is
called the replacement row.

ii. For each row other than the key row, calculate the new values by using the
following formula

New row value = old value – (Corresponding key column value *

Corresponding key row value)/ key element.