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Simplified Module in Management Science

Module No.

3
Summer Class 2020
Angelita Mando

July 2, 2021 Module 3: Linear Programming: Simplex Method


Learning Objectives:
Distinguish the difference between simplex method and
graphical method of Linear Programming.

Introduce the simplex method of Linear Programming.

Examine in detail the steps of simplex method.

Define and discuss all the elements in the simplex tableau in


terms of their significance to the problem statement and
problem solution.

Interpret simplex solutions.

July 2, 2021 Module 3: Linear Programming: Simplex Method


Lesson No. 1 Ø Definition

Ø General Model
Basic Concepts
Ø Maximization

Ø Minimization

Standard Linear Programming


Model: Maximization Problem

Lesson No. 2 Ø Steps

Ø Problem

Ø Solution

July 2, 2021 Module 3: Linear Programming: Simplex Method


Lesson No. 3 Standard Linear Programming
Model: Minimization Problem
Ø Steps

Ø Summary

Ø Problem/Solution

July 2, 2021 Module 3: Linear Programming: Simplex Method


Simplified Module in Management Science

Module No.

3
Summer Class 2020
Angelita Mando

July 2, 2021 Module 3: Linear Programming: Simplex Method


Ø Definition Ø General Model Ø Maximization Ø Minimization

Simplex Method
- requires that all constraints shall be converted into equations or in the
standard form of linear programming problem

- can even solve with more than two unknown variables as compared
with graphical method, geometrically more than two variables is difficult to
graph

- an iterative technique that begins with a feasible solution that is not


optimal, but serves as a starting point

The idea of the simplex method is to start at the corner where all the unknowns are 0
and then walk around the region from one corner to another until the best corner is
determined.

July 2, 2021 Module 3: Linear Programming: Simplex Method


Ø Definition Ø General Model Ø Maximization Ø Minimization

Simplex Method Flow Chart for LP Maximization Method

The flow chart shows method for Maximization model and is not applicable to
minimization model. There is a slight difference in establishing the solution of an LP
minimization model.

July 2, 2021 Module 3: Linear Programming: Simplex Method


Ø Definition Ø General Model Ø Maximization Ø Minimization

General Linear Programming Model

July 2, 2021 Module 3: Linear Programming: Simplex Method


Ø Definition Ø General Model Ø Maximization Ø Minimization

Standard Linear Programming Maximization Model

“≤”

July 2, 2021 Module 3: Linear Programming: Simplex Method


Ø Definition Ø General Model Ø Maximization Ø Minimization

Standard Linear Programming Minimization Model

“≥”

July 2, 2021 Module 3: Linear Programming: Simplex Method


Simplified Module in Management Science

Module No.

3
Summer Class 2020
Angelita Mando

July 2, 2021 Module 3: Linear Programming: Simplex Method


Ø Steps Ø Problem Ø Solution

Steps in Solving Standard LP Maximization Model Using Simplex


Method

Set up the objective function and the constraints from the conditions of
Step 1 the problem.

Convert the inequality explicit constraints to equations by adding slack


variables to make it an equality equation. Step 2

July 2, 2021 Module 3: Linear Programming: Simplex Method


Ø Steps Ø Problem Ø Solution

Steps in Solving Standard LP Maximization Model Using Simplex


Method

Enter the numerical coefficients and variable in the simplex table.


Step 3

Calculate the �� and �� values. Step 4

July 2, 2021 Module 3: Linear Programming: Simplex Method


Ø Steps Ø Problem Ø Solution

Steps in Solving Standard LP Maximization Model Using Simplex


Method

Determine the optimum column or entering variable by choosing the most


Step 5 positive values in the �� - �� row.

Divide the quantity column values by the non-zero and non-negative entries
in the optimum column. The smallest quotient belongs to the pivotal row. Step 6

July 2, 2021 Module 3: Linear Programming: Simplex Method


Ø Steps Ø Problem Ø Solution

Steps in Solving Standard LP Maximization Model Using Simplex


Method

Compute the values for the replacing row by dividing all entries by the
Step 7 pivot. Enter the result on the next table.

Compute the new entries for the remaining rows by reducing the optimum
column entries to 0. Step 8

July 2, 2021 Module 3: Linear Programming: Simplex Method


Ø Steps Ø Problem Ø Solution

Steps in Solving Standard LP Maximization Model Using Simplex


Method

Step 9 Calculate �� and �� values. Compute also for �� - �� row.

If there are positive entries in the �� - �� row, return to step 5. The final
solution has been obtained if there is no positive value in the �� - �� row. Step 10

July 2, 2021 Module 3: Linear Programming: Simplex Method


Ø Steps Ø Problem Ø Solution

Problem

A small-scale industry manufactures two kinds of thermos bottles; standard air pot and
electric air pot. Components of the two thermos are processed by 2 different machines, A and B.
During the scheduling period, the production head found out that there are 20 hours of machine A
time available and 35 hours of machine B. To complete one unit of standard needs 1 on machine A
and 1 hour in machine B; while it takes 2 hours on machine A and 5 hours in machine B to complete
1 unit of electric model. The company can sell all the units it can produce per production period at
a profit of ₱30.00 per standard model and ₱70.00 per electric model. If the company’s objective is
to maximize the profit, how many units of each model should be produced and sold by the
company.

July 2, 2021 Module 3: Linear Programming: Simplex Method


Ø Steps Ø Problem Ø Solution

Tabulated Data:

July 2, 2021 Module 3: Linear Programming: Simplex Method


Ø Steps Ø Problem Ø Solution

Solution
Set up the objective function and the constraints from the conditions of the
Step 1 problem.

July 2, 2021 Module 3: Linear Programming: Simplex Method


Ø Steps Ø Problem Ø Solution

Solution
Convert the inequality explicit constraints to equations by adding slack variables
Step 2 to both objective function and constraints to make it an equality equation.
The number of slack depends on the number of equations.

July 2, 2021 Module 3: Linear Programming: Simplex Method


Ø Steps Ø Problem Ø Solution

Solution
Step 3 Enter the numerical coefficients and variable in the simplex table.

July 2, 2021 Module 3: Linear Programming: Simplex Method


Ø Steps Ø Problem Ø Solution

Solution
Step 3 Enter the numerical coefficients and variable in the simplex table.

- Optimum column refers to the column with the highest positive value in the �� - ��
row, which contains entering variable.
- Entering variable refers to the variable at the top of the optimum column and be
entered to the next table.
- Outgoing variable refers to the variable to be replaced by entering variable.
- Pivot is an element boxed twice within the replacing or pivotal row.
- Intersectional element refers to the element found above or below the pivot.

July 2, 2021 Module 3: Linear Programming: Simplex Method


Ø Steps Ø Problem Ø Solution

Solution
Step 4 Calculate the �� and �� values.

July 2, 2021 Module 3: Linear Programming: Simplex Method


Ø Steps Ø Problem Ø Solution

Solution
Enter the numerical coefficients and variable in the simplex table.

July 2, 2021 Module 3: Linear Programming: Simplex Method


Ø Steps Ø Problem Ø Solution

Solution
Determine the optimum column or entering variable by choosing the most
Step 5 positive values in the �� - �� row.

July 2, 2021 Module 3: Linear Programming: Simplex Method


Ø Steps Ø Problem Ø Solution

Solution
Enter the numerical coefficients and variable in the simplex table.

July 2, 2021 Module 3: Linear Programming: Simplex Method


Ø Steps Ø Problem Ø Solution

Solution
Divide the quantity column values by the non-zero and non-negative entries in the
Step 6 optimum column.

July 2, 2021 Module 3: Linear Programming: Simplex Method


Ø Steps Ø Problem Ø Solution

Solution
Enter the numerical coefficients and variable in the simplex table.

July 2, 2021 Module 3: Linear Programming: Simplex Method


Ø Steps Ø Problem Ø Solution

Solution
Compute the values for the replacing row by dividing all entries by the pivot.
Step 7 Enter the result on the next table.

July 2, 2021 Module 3: Linear Programming: Simplex Method


Ø Steps Ø Problem Ø Solution

Solution
Compute the new entries for the remaining row/s by reducing the optimum
Step 8 column entries to 0.

July 2, 2021 Module 3: Linear Programming: Simplex Method


Ø Steps Ø Problem Ø Solution

Solution
Enter the numerical coefficients and variable in the simplex table.

July 2, 2021 Module 3: Linear Programming: Simplex Method


Ø Steps Ø Problem Ø Solution

Solution
Step 9 Calculate �� and �� values. Compute also for �� - �� row.

July 2, 2021 Module 3: Linear Programming: Simplex Method


Ø Steps Ø Problem Ø Solution

Solution
Step 9 Calculate �� and �� values. Compute also for �� - �� row.

July 2, 2021 Module 3: Linear Programming: Simplex Method


Ø Steps Ø Problem Ø Solution

Solution
If there are positive entries in the �� - �� row, return to step 5. The final
Step 10 solution has been obtained if there is no positive value in the �� - �� row.

Note that in the �� - �� row , there


is still positive entry (that is 16)
other than 0. So the final solution
has not yet been obtained.
Therefore, we have to repeat the
procedure from step 5.

July 2, 2021 Module 3: Linear Programming: Simplex Method


Ø Steps Ø Problem Ø Solution

Solution
If there are positive entries in the �� - �� row, return to step 5. The final
Step 10 solution has been obtained if there is no positive value in the �� - �� row.

July 2, 2021 Module 3: Linear Programming: Simplex Method


Ø Steps Ø Problem Ø Solution

Solution
Step 9 Calculate �� and �� values. Compute also for �� - �� row.

July 2, 2021 Module 3: Linear Programming: Simplex Method


Ø Steps Ø Problem Ø Solution

Solution
If there are positive entries in the �� - �� row, return to step 5. The final
Step 10 solution has been obtained if there is no positive value in the �� - �� row.

July 2, 2021 Module 3: Linear Programming: Simplex Method


Ø Steps Ø Problem Ø Solution

Solution
If there are positive entries in the �� - �� row, return to step 5. The final
Step 10 solution has been obtained if there is no positive value in the �� - �� row.

Table 3 is the optimum or final table since there are no positive entries in the �� - ��
row. Once optimum table is reached, decision has to be made. Decision is your final
answer to the problem.

July 2, 2021 Module 3: Linear Programming: Simplex Method


Simplified Module in Management Science

Module No.

3
Summer Class 2020
Angelita Mando

July 2, 2021 Module 3: Linear Programming: Simplex Method


Ø Steps Ø Summary Ø Problem/Solution

Steps in Solving Standard LP Maximization Model Using Simplex


Method
Steps in solving minimization problem are similar to maximization except for these 3
processes:

1. The �� column of the initial table begins with the coefficients of artificial variables and of slack
variables in the objective with positive coefficients in the constraints.
2. Instead of looking for most positive quantity in the �� - �� row for the optimum column, look for the
most negative entry.
3. The optimum table or the final table has entries in �� - �� which are either 0 or positive.

July 2, 2021 Module 3: Linear Programming: Simplex Method


Ø Steps Ø Summary Ø Problem/Solution

Summary of Converting Constraints to Equations in Minimization


Problem

1. Add an artificial variable (+A) if the symbol of the equation is =.


2. Add slack variable (+S) if the symbol of the equation is ≤ .
3. Subtract slack variable (-S) and add an artificial variable (+A) if the symbol is ≥ .

July 2, 2021 Module 3: Linear Programming: Simplex Method


Ø Steps Ø Summary Ø Problem/Solution

Summary of Converting Constraints to Equations in Minimization


Problem

- Artificial Variable will save slack variable from becoming negative. It prevents an equality
constraint from equating to 0.
- In minimization problem Slack Variables do not contribute any amount to cost.
- Artificial Variables contribute the biggest amount or coefficient to cost. Coefficients of an
artificial variable should be multiples of 10 or in the power of 10 ( example: 10, 100, 1000,
etc.) greater than any of the coefficients involve in the objective function and constraints.
- If slack (S) is (-) do not enter it on solution variables, prioritize the artificial variable.

July 2, 2021 Module 3: Linear Programming: Simplex Method


Ø Steps Ø Summary Ø Problem/Solution

Problem

July 2, 2021 Module 3: Linear Programming: Simplex Method


Ø Steps Ø Summary Ø Problem/Solution

Solution
Step 1 Construct the new program.

July 2, 2021 Module 3: Linear Programming: Simplex Method


Ø Steps Ø Summary Ø Problem/Solution

Solution
Prepare the initial table, then follow the same steps as in the maximization
Step 2 process.

July 2, 2021 Module 3: Linear Programming: Simplex Method


Ø Steps Ø Summary Ø Problem/Solution

Solution
Determine the optimum column or entering variable by choosing the most
Step 3 negative values in the Cj - Zj row.

July 2, 2021 Module 3: Linear Programming: Simplex Method


Ø Steps Ø Summary Ø Problem/Solution

Solution
Divide the quantity column values by the non-zero and non-negative entries in the
Step 4 optimum column.

The smallest quotient belongs to the pivotal row (known as replacing row).
Pivot is 5 since it was boxed twice when getting the optimum column and pivotal row.
�� will be the outgoing variable or the variable to be replaced by � on table.

July 2, 2021 Module 3: Linear Programming: Simplex Method


Ø Steps Ø Summary Ø Problem/Solution

Solution
Divide the quantity column values by the non-zero and non-negative entries in the
Step 4 optimum column.

July 2, 2021 Module 3: Linear Programming: Simplex Method


Ø Steps Ø Summary Ø Problem/Solution

Solution
Divide the quantity column values by the non-zero and non-negative entries in the
Step 4 optimum column.

July 2, 2021 Module 3: Linear Programming: Simplex Method


Ø Steps Ø Summary Ø Problem/Solution

Solution
Divide the quantity column values by the non-zero and non-negative entries in the
Step 4 optimum column.

July 2, 2021 Module 3: Linear Programming: Simplex Method


Ø Steps Ø Summary Ø Problem/Solution

Solution
Divide the quantity column values by the non-zero and non-negative entries in the
Step 4 optimum column.

July 2, 2021 Module 3: Linear Programming: Simplex Method


Ø Steps Ø Summary Ø Problem/Solution

Solution
Divide the quantity column values by the non-zero and non-negative entries in the
Step 4 optimum column.

Since we still had negative entry in the �� - �� (- 130), table 2 is not yet
optimum, so we need to repeat again the process from step 5. Then prepare
another table or Table 3.

July 2, 2021 Module 3: Linear Programming: Simplex Method


Ø Steps Ø Summary Ø Problem/Solution

Solution
Divide the quantity column values by the non-zero and non-negative entries in the
Step 4 optimum column.

July 2, 2021 Module 3: Linear Programming: Simplex Method


Ø Steps Ø Summary Ø Problem/Solution

Solution
Divide the quantity column values by the non-zero and non-negative entries in the
Step 4 optimum column.

Since there is no negative entries in �� - �� , table 3 is an optimum table


wherein the solution to the problem has been reached. Therefore, a decision
has to be made.

July 2, 2021 Module 3: Linear Programming: Simplex Method


Ø Steps Ø Summary Ø Problem/Solution

Solution
Divide the quantity column values by the non-zero and non-negative entries in the
Step 4 optimum column.

July 2, 2021 Module 3: Linear Programming: Simplex Method


Ø Steps Ø Summary Ø Problem/Solution

Solution
Divide the quantity column values by the non-zero and non-negative entries in the
Step 4 optimum column.

July 2, 2021 Module 3: Linear Programming: Simplex Method


July 2, 2021 Module 3: Linear Programming: Simplex Method

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