Chapter Two (Linear Proramming)

CHAPTER Two
LINEAR PROGRAMMING MODELS

LEARNING OBJECTIVES
 Understand basic assumptions and properties of linear
programming (LP).
 Use graphical solution procedures for LP problems
 Understand special situations such as optimal solutions
in LP problems.
 Apply the steps of simplex methods for solving linear
problems.
 Formulate linear programming models
2.1. INTRODUCTION TO LINEAR
PROGRAMMING/LP
 Management decisions in many organizations involve trying
to make most effective use of resources (machinery, labor,
money, time, warehouse space, and raw materials) in order
to:
Produce products - such as computers, automobiles, or
clothing or
Provide services - such as package delivery, health
services, or investment decisions.
 To solve problems of resource allocation one may use
mathematical programming.
LP MODEL COMPONENTS AND
FORMULATION
 Decision variables - mathematical symbols representing
levels of activity of a firm.
 Objective function - a linear mathematical relationship
describing an objective of the firm, in terms of decision
variables, that is to be maximized or minimized.
 Constraints - restrictions placed on the firm by the
operating environment stated in linear relationships of
the decision variables.
 Parameters - numerical coefficients and constants used
in the objective function and constraint equations.
LINEAR PROGRAMMING
Linear programming (LP) is the most common type of
mathematical programming.
LP seeks to maximize or minimize a linear objective
function subject to a set of linear constraints .
LP assumes all relevant input data and parameters are
known with certainty (deterministic models).
Computers play an important role in the solution of LP
problems.
DEVELOPMENT OF A LP MODEL
 LP applied extensively to problems areas like:-

 medical, transportation, operations,
 financial, marketing, accounting,
 human resources, and agriculture.
BASIC STEPS OF DEVELOPING A LP MODEL
1. Identification of the problem as solvable by LP: At this
step, the problem that needs solution to be identified
and checked whether to be solved by LP.
2. Formulation of the Model

 One of the most important phases in the solution of LP problem,
which translates words in to an objective function together with
the set of constraints.
 It refers to the transformation of word problems in to a
mathematical model that needs solutions.
 The main steps in model formulation:
i. Determine what the specific objective is. That is maximize profit
or minimize cost, keeping in mind the limited resources available
through appropriate combination.
ii. Assign variables to each of the unknown quantities to be solved
such as profit, cost, number of products to be produced, etc.
iii. Find a mathematical expression that represents the objective in
terms of the unknowns.
iv. Find mathematical expressions that represent any limited resources
(constraints) in terms of unknowns.
v. Include any additional constraints that are not explicitly stated in
the problem ( Example: the decision variables must be non-
negative).
3. Solution
 Mathematical relationships resulting from formulation process
are solved to identify optimal solution.
4. Interpretation and What-if Analysis
 Problem solver or analyst works with the manager to:
o Interpret results and implications of problem solution.
o Investigate changes in input parameters and model
variables and impact on problem solution results.
LINEAR EQUATIONS AND INEQUALITIES
• This is a linear equation:

2A + 5B = 10
• This equation is not linear:
2A2 + 5B3 + 3AB = 10
• LP uses, in many cases, inequalities like:
A+BC or A + B  C
BASIC CHARACTERSTICS OF A LP MODEL
1. Conditions of certainty exist.

2. Proportionality in objective function and constraints
(1 unit – 3 hours, 3 units- 9 hours).
3. Additivity (total of all activities equals sum of
individual activities).
4. Divisibility assumption that solutions need not
necessarily be in whole numbers (integers); ie.decision
variables can take on any fractional value.
2.2. FORMULATION OF A LP MODEL
• A common LP application is product mix problem.
o Two or more products are usually produced using
limited resources - such as personnel, machines,
raw materials, and so on.
• Profit firm seeks to maximize is based on profit
contribution per unit of each product.
• Firm would like to determine -
o How many units of each product it should produce
in order to maximize overall profit given its limited
resources.
Maximization & Minimization Model
Example:
PROBLEM DEFINITION:
MAXIMIZATION PROBLEM
• Product mix problem of Pottery Company

• How many bowls and mugs should be produced to
maximize profits given labor and materials constraints?
• Product resource requirements and unit profit:
Resource Requirements
Labor Clay Profit
Product
(hr/unit) (lb/unit) ($/unit)
Bowl 1 4 40
Mug 2 3 50
Resource 40 120
PROBLEM DEFINITION EXAMPLE CONT’D
Resource 40 hrs of labor per day

Availability: 120 lbs of clay
Decision Variables x1 = number of bowls to produce per day
x2 = number of mugs to produce per day
Objective Maximize Z = $40x1 + $50x2

Function: Where Z = Profit per day
Resource 1x1 + 2x2  40 hours of labor
Constraints: 4x1 + 3x2  120 pounds of clay
Non-Negativity x1  0; x2  0
Constraints:
MODEL FORMULATION EXAMPLE
Complete Linear Programming Model:
Maximize Z = $40x1 + $50x2

subject to: 1x1 + 2x2  40
4x1 + 3x2  120
x1, x2  0
FEASIBLE SOLUTIONS
A feasible solution does not violate any of the
constraints:
Example x1 = 5 bowls
x2 = 10 mugs
Z = $40x1 + $50x2 = $700
Labor constraint check:
1(5) + 2(10) = 25 < 40 hours, within constraint
Clay constraint check:
4(5) + 3(10) = 50 < 120 pounds, within constraint
INFEASIBLE SOLUTIONS:
BEAVER CREEK EXAMPLE
An infeasible solution violates at least one of the
constraints:
Example x1 = 10 bowls
x2 = 20 mugs
Z = $1400
Labor constraint check:
1(10) + 2(20) = 50 > 40 hours, violates the cconstraint
 The set of all points that satisfy all the constraints of
the model is called a feasible region.
2.3. GRAPHICAL SOLUTION OF LINEAR
PROGRAMMING MODELS
 Graphical solution: is limited to linear programming

models containing only two decision variables.
 Graphical methods: provide visualization of how a

solution for a linear programming problem is obtained.
 Primary advantage of two-variable in LP models is
their solution can be graphically illustrated using two-
dimensional graph.
 Allows one to provide an intuitive explanation of
how more complex solution procedures work for
larger LP models.
GRAPHICAL REPRESENTATION OF
CONSTRAINTS:

4x1 + 3x2  120
x1, x2  0
Graph of Labor Constraint

CONSTRAINTS: (LABOR CONSTRAINT AREA)

4x1 + 3x2  120
x1, x2  0
Labor Constraint Area

CONSTRAINTS: (CLAY CONSTRAINT AREA)

4x1 + 3x2  120
x1, x2  0
Clay Constraint Area

CONSTRAINTS: (BOTH CONSTRAINTS AREA)

4x1 + 3x2  120
x1, x2  0
Graph of Both Model Constraints

FEASIBLE SOLUTION AREA:

4x1 + 3x2  120
x1, x2  0
Feasible Solution Area

GRAPHICAL SOLUTION METHOD
 Optimal solution is the point in feasible region that

produces highest profit.
 There are many possible solution points in region.
 How do we go about selecting the best one, one yielding
highest profit?
 Let objective function (that is, $$40x1 + $50x2) guide one
towards optimal point in feasible region.
 Plot line representing objective function on graph as a
straight line.
OPTIMAL SOLUTION COORDINATES:

4x1 + 3x2  120
x1, x2  0
Optimal Solution Coordinates

Locating the Solution Corners
COORDINATES:
From the graph it is clear that the shaded region
is the feasible region , which is the space bounded
by the lines. The feasible solutions from the
graph are the six (6) corners. However, from the
6 corners, 2 of them are out of the solution. Let’s
represent X-axis by (1), Y-axis by (2), the first
inequality by (3), and the 2nd inequality by (4). Optimal Solution Coordinates
Then:
Lines Corners
1 and 2 (0, 0)
2 and 3 ( 0,20)
1 and 4 (30,0)
3 and 4 (24, 8)
Locating the Solution Corners
 Evaluate the objective function, that is the

maximum profit
Corners Z= $40x1 + $50x2

(0,0) 0
(0,20) $1000
(30,0) $1200
(24,8) $1360
GRAPHICAL SOLUTION - CORNER
POINT SOLUTION METHOD :

4x1 + 3x2  120
x1, x2  0
 Therefore, the maximum profit (Z)=
$1360, when x1 = 24 and x2 = 8. So
that produce 24 bowls and 8 mugs
which will provide a profit $1360, the
maximum possible with the stated
constraints.
Solution at All Corner Points
THE GRAPHICAL SOLUTION METHODS :
Cost Minimization
1. Consider the same example C= $40x1+50x2 as a cost

function. If the inequalities were of opposite sense,
what is the solution of the LPP?
 Therefore, the LP model to minimize the Cost which
the cost function,
Minimize C = $40x1 + $50x2

subject to: 1x1 + 2x2 > 40
4x1 + 3x2 > 120
x1, x2  0
SUMMARY OF THE GRAPHICAL SOLUTION
METHODS
Lines Corner
2 and 4 (0,40)
1 and 3 (40, 0)
(3 and 4) (24, 8)
Corners C=$40x1 + $50x2

(0,40) $2000
(40, 0) $1600
(24, 8) $1360
 Therefore, the Minimum cost (C)= $1360, when x1 = 24 and x2 =

8. So that produce 24 bowls and 8 mugs which will allow to
minimize the total production cost to $1360, the minimum
possible.
SUMMARY
 A mathematical modeling technique called linear

programming (LP) is introduced.
 LP models are used to find an optimal solution to
problems that have a series of constraints binding the
objective value.
 How models with only two decision variables can be
solved graphically is shown.
 To solve LP models with numerous decision variables
and constraints, one need a solution procedure such as
simplex algorithm.
2.4 The simplex method for solving LP models
 Simplex method is a linear-programming algorithm that
can solve problems having more than two decision
variables.
 The simplex technique involves generating a series of
solutions in tabular form, called tableaus.
 By inspecting the bottom row of each tableau, one can
immediately tell if it represents the optimal solution.
 Each tableau corresponds to a corner point of the feasible
solution space.
 The first tableau corresponds to the origin.
 Subsequent tableaus are developed by shifting to an
adjacent corner point in the direction that yields the highest
(smallest) rate of profit (cost).
 This process continues as long as a positive (negative) rate of
profit (cost) exists.
2.4 The Simplex Method for Solving LP
Models
 The key solution concepts:
• Solution Concept 1: the simplex method focuses on

Current point of feasible/CPF/ solutions.
• Solution concept 2: the simplex method is an iterative
algorithm (a systematic solution procedure that keeps
repeating a fixed series of steps, called, an iteration,
until a desired result has been obtained) with the
following structure:
Models
Initialization: setup to start iterations, including
finding an initial CPF solution
Optimality test: is the CPF solution

optimal?
if no if yes stop
Iteration: Perform an iteration to find a

better CPF solution
Models
 Solution concept 3: whenever possible, the
initialization of the simplex method chooses the origin
point (all decision variables equal zero) to be the
initial CPF solution.
 Solution concept 4: given a CPF solution, it is much

quicker computationally to gather information about its
adjacent CPF solutions than about other CPF solutions.
Therefore, each time the simplex method performs an
iteration to move from the CPF solution to a better
one, it always chooses a CPF solution that is adjacent
to the current one.
Models
 Solution concept 5: After the CPF solution is

identified, the simplex method examines each of the
edges of the feasible region that emanate from this CPF
solution.
 The simplex method simply identifies the rate of
improvement in Z that would be obtained by moving
along the edge. And then chooses to move along the
one with largest positive rate of improvement.
Models
 Solution concept 6: A positive rate of improvement in

Z implies that the adjacent CPF solution is better than
the current one, whereas a negative rate of improvement
in Z implies that the adjacent CPF solution is worse.
 Therefore, the optimality test consists simply of
checking whether any of the edges give a positive rate
of improvement in Z. If none of them became negative,
then the CPF solution is optimal.
Models
 Steps in Simplex method for solving LP models:
1. Initialization:
a. Transform all the constraints to equality by introducing
slack, surplus, and artificial variables as follows:
Constraint type Variable to be added
< + slack (s)
> - Surplus (S) + artificial (A)
= + Artificial (A)
Models
1. Initialization:
b. Construct the initial simplex tableau:
Basic X1 … Xn S1 …... Sn A1 …. An RHS
variable
S b1
Coefficient of the constraints
A bm
Z Objective function coefficient Z
In different signs value
Models
2. Test for optimality:
Case 1: Maximization problem:

 The current basic feasible (BF) solution is optimal if every
coefficient in the objective function row is non-negative.
Case 2: Minimization problem:

 The current BF solution is optimal if every coefficient in the
objective function row is non-positive.
Models
3. Iteration:
Step 1: determine the entering basic variable by selecting
the variable (automatically a non-basic variable) with
the most negative value (in case of maximization) or
with the most positive (in case of minimization) in the
last row (Z-row).
 Put a box around the column below this variable, and

call it the “pivot column”.
2.4.The Simplex Method for Solving LP Models
Step 2: Determine the leaving basic variable by applying

the minimum ratio test as following:
1. Pick out each coefficient in the pivot column that is
strictly positive (>0).
2. Divide each of these coefficients into the right hand side
entry for the same row.
3. Identify the row that has the smallest of these ratios.
4. The basic variable for that row is the leaving variable,
so replace that variable by the entering variable in the
basic variable column of the next simplex tableau.
 Put a box around this row and call it the “pivot row”
Models
Step 3: Solve for the new BF solution by using elementary row
operations (multiply or divide a row by a non-zero constant;
subtract a multiple of corresponding coefficients of pivot
column and corresponding values of pivot row from the old
row values) to construct a new simplex tableau, and then return
to the optimality test.
 The specific elementary row operations are as follows:
1. Divide each coefficient in the pivot row by the “pivot
number” (the number in the intersection of the pivot row and
pivot column);
2. Compute each other row new entry by using New tableau
row values = Old value of the row – (the coefficient of this
row in the pivot column) x (coefficient of new pivot row).
3. Enter the calculated values to the new tableau row.
Models
 Example (All constraints are )
 Solve the following problem using the simplex method
Maximize
Z = 3X1+ 5X2
Subject to
X1  4
2 X2  12
3X1 +2X2  18
X1 , X2  0
Models
 Solution
 Initialization
1. Standard form Sometimes it is called
Maximize Z, the augmented form of
the problem because the
Subject to
original form has been
Z - 3X1- 5X2 =0 augmented by some
supplementary variables
X1 + S1 = 4 needed to apply the
2 X2 + S2 = 12 simplex method.
3X1 +2X2 + S3 = 18
X1 , X2, S1, S2, S3  0
Models
 A basic solution is an augmented corner point solution.
 A basic solution has the following properties:
1. Each variable is designated as either a non-basic variable or
a basic variable.
2. The number of basic variables equals the number of
functional constraints. Therefore, the number of non-basic
variables equals the total number of variables minus the
number of functional constraints.
3. The non-basic variables are set equal to zero.
4. The values of the basic variables are obtained as
simultaneous solution of the system of equations (functional
constraints in augmented form). The set of basic variables
are called “basis”.
5. If the basic variables satisfy the non-negativity constraints,
the basic solution is a Basic Feasible (BF) solution.
Models
Entering
2. Initial tableau variable
Basic X1 X2 S1 S2 S3 RHS
variable
S1 1 0 1 0 0 4
S2 0 2 0 1 0 12
S3 3 2 0 0 1 18
Z -3 -5 0 0 0 0
Leaving Pivot column Pivot Pivot row

variable number
Models
Notes:
 The basic feasible solution at the initial tableau
is (0, 0, 4, 12, 18) where:
X1 = 0, X2 = 0, S1 = 4, S2 = 12, S3 = 18, and Z = 0
Where S1, S2, and S3 are basic variables.
X1 and X2 are non-basic variables.
 The solution at the initial tableau is associated
to the origin point at which all the decision
variables are zero.
Models
Optimality test:
By investigating the last row of the initial

tableau, we find that there are some negative
numbers. Therefore, the current solution is not
optimal.
Models
 Iteration:
Step 1: Determine the entering variable by selecting the
variable with the most negative in the last row.
 From the initial tableau, in the last row (Z row), the
coefficient of X1 is -3 and the coefficient of X2 is -5;
therefore, the most negative is -5.
 Consequently, X2 is the entering variable.
 X2 is surrounded by a box and it is called the pivot
column.
2.4. The Simplex Method for Solving LP
Models
Step 2: Determining the leaving variable by using

the minimum ratio test as following:
Basic Entering RHS Ratio
variable variable X2
(1) (2) (2)(1)
S1 0 4 None
S2 2 12 6
Leaving Smallest ratio
S3 2 18 9
2.4. The Simplex Method for Solving LP
Models
Step 3: Solving for the new BF solution by using

the eliminatory row operations as following:
1. New pivot row = old pivot row  pivot number
variable
S1
X2 0 1 0 1/2 0 6
S3
Z
Note that X2 becomes in the basic
variables list instead of S2
2.4. The Simplex Method for Solving LP Models
Iteration:
2. For the other row apply this rule:
New row = old row – (the coefficient of this row in the pivot column) x
(coefficient of new pivot row).
For S1
1 0 1 0 0 4
-
0 (0 1 0 1/2 0 6)
1 0 1 0 0 4
For S3
3 2 0 0 1 18
-
2 (0 1 0 1/2 0 6)
3 0 0 -1 1 6
for Z
-3 -5 0 0 0 0
Substitute this values in
- the table
-5(0 1 0 1/2 0 6)
-3 0 0 5/2 0 30
 Iteration:
This solution is not optimal, since there is a negative numbers in
the last row
variable
S1 1 0 1 0 0 4
X2 0 1 0 1/2 0 6
S3 3 0 0 -1 1 6
Z -3 0 0 5/2 0 30
The most negative value; The smallest ratio is
therefore, X1 is the 6/3 =2; therefore, S3 is
entering variable the leaving variable
Iteration:
 Apply the same rules we will obtain this solution:
variable
S1 0 0 1 1/3 -1/3 2
X2 0 1 0 1/2 0 6
X1 1 0 0 -1/3 1/3 2
Z 0 0 0 3/2 1 36
This solution is optimal; since there is no negative solution in the last row: basic variables are X 1 =
2, X2 = 6 and S1 = 2; the non-basic variables are S2 = S3 = 0, Z = 36.
 Exercise:
The Plastic manufacturing company produces two products:
Bowls/Product I and mugs/Product II. The raw material
requirements, space needed for storage, production rates, and
selling prices for these products are given below:
Constraints Bowls / Product I Mugs/ Product II
Storage space (m2/unit 4 5
Raw material (Ib/ unit) 5 3
Production rate 1 2
(Units/hr=60 minutes)
Selling price ($/unit 13 11
The total amount of raw material available per day for both products is 1575Ib.
The total storage space for all products is 1500 m2, and a maximum of 420 minutes
per day can be used for production.
How many units of bowls/product I and mugs/product II product should the
company to produce per day to maximize its total income/profit? ( Use simplex
method).
2.5. Minimization by using Simplex LP Model
 To solve a minimization problem with > constraints, we must

change in to a maximization problem with < constraints.
 The optimality test consists simply of checking whether any of the

edges (last row) give non-positive values in Z.
 The current BF solution is optimal if every coefficient in the
objective function row is non-positive.
 The minimization model can be solved using duality of simplex

method ( will be discussed under duality section)
© 2002 Prentice-Hall, Inc Ch 2-60

2.5.1. Dual in LP Model
 For every linear programming problem, there is a corresponding
linear programming problem called the dual.
 If the original problem is a maximization problem then the

dual problem is minimization problem and if the original
problem is a minimization problem then the dual problem is
maximization problem.
 In either case, the final table of the dual problem will contain both
the solution to the dual problem and the solution to the original
problem.

 The solution of the dual problem is readily obtained from the
original problem solution if the simplex method is used.
 The formulation of the dual problem also sometimes referred
as the concept of duality - helpful for the understanding of the
linear programming.
 The variable of the dual problem is known as the dual
variables or shadow price of the various resources.
 The dual problem is easier to solve than the original problem.
 The dual problem solution leads to the solution of the original
problem and thus efficient computational techniques can be
developed through the concept of duality.

 If the original problem is in the standard form, then the dual problem can be
formulated using the following rules:
 The number of constraints in the original problem is equal to the number of
dual variables.
 The number of constraints in the dual problem is equal to the number of
variables in the original problem.
 The original problem profit coefficients appear on the right hand side of the
dual problem constraints.
 If the original problem is a maximization problem then the dual problem is a
minimization problem.
 Similarly, if the original problem is a minimization problem then the dual
problem is a maximization problem.
 The original problem has less than or equal to (≤) type of constraints while
the dual problem has greater than or equal to (≥) type constraints.
 The coefficients of the constraints of the original problem which appear
from left to right are placed from top to bottom in the constraints of the dual
problem
© 2002 Prentice-Hall, Inc and vice versa. Ch 2-63
 If the Primal problem has an optimal solution, then also

the dual problem has an optimal solution and the
objective values of these solutions are the same.

 To solve a minimization problem with > constraints, we must change in to a
maximization problem with < constraints.
1.The original greater than or equal to min” will be called the primal problem.
2. The less than or equal to max” to which we change will be called the dual
problem.
3. Convert the primal in to the dual and solve using the method developed , then
read the solution of the primal from the solution of the dual.
 If the original problem is a maximization problem, then the dual problem is a

minimization problem.
Example:
Minimize  = 2x1 + 3x2

subject to: 3x1 + 2x2 > 12
7x1 + 2x2 > 20
 Convert the inequalities in to equalities, positive variables

would be subtracted , and these are called surplus variables
rather than slack variables .
 The surplus variables may be denoted by P1 and P2 and

indicate them next to their respective constraints. Thus, the
primal may be written as follows:
P1: 3x1+2x2 > 12

P2: 7x1+2x2 > 20
Minimize: 2x1 + 3x2 = 

 Form the dual problem;

 For this purpose, make the coefficients of X1 and x2
columns the coefficient of the new variables P1 and P2 and
obtain.
3P1+ 7P2
2P1+2P2
 Next change > to <, use the coefficients of X1 and X2 in 
-row as the right- hand constant and write:
3P1+7P2 < 2
2P1+ 2P2 < 3

 Therefore, the dual problem can be constructed as follows:
Maximize  = 12P1+20P2
Subject to:
3P1+7P2 < 2
2P1+ 2P2 < 3
P1,P2 > 0
Note:
1). The dual is a “less than or equal to max” problem
2). X1 and X2 are as slack variables
3). This method is known as minimization by
maximizing the dual.
 Thus, we will solve the LP dual problem of the following by
using simplex method.
Maximize  = 12P1+20P2
Subject to:
3P1+7P2 < 2
2P1+ 2P2 < 3
P1,P2 > 0
 Solve the model by forming equations with slack variables using simplex
method.
 The equation with slack variables will be constructed as follows:
Maximize  -12P1 -20P2 = 0 subject to:

3P1+7P2 +X1 = 2
2P1 + 2P2 + X2 = 3
© 2002 Prentice-Hall, Inc
P1, P2, X1, X2 > 0 Ch 2-69
 Thus, the initial table can be set as follows to find optimal
solution using simplex method.
Basic Coefficient of Non-basic variables Current

Value
Variables P1 P2 X1 X2 (RHS)
X1 3 7 1 0 2
X2 2 2 0 1 3
 -12 -20 0 0 0

2.5.2. Special cases of Simplex LP Model
 If there is a zero under one or more non-basic variables in the last

tableau (optimal solution tableau), then there is a multiple optimal
solution.
 When determining the leaving variable of any tableau, if there is

no positive ratio (all the entries in the pivot column are negative
and zeroes), then the solution is unbounded.
 A Solution that has a basic variable with zero value is called a

“degenerate solution”.

Chapter Two (Linear Proramming)

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Chapter Two (Linear Proramming)

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CHAPTER Two

LINEAR PROGRAMMING MODELS

 LP applied extensively to problems areas like:-

2. Formulation of the Model

• This is a linear equation:

1. Conditions of certainty exist.

• Product mix problem of Pottery Company

Resource 40 hrs of labor per day

Objective Maximize Z = $40x1 + $50x2

Complete Linear Programming Model:

Maximize Z = $40x1 + $50x2

 Graphical solution: is limited to linear programming

 Graphical methods: provide visualization of how a

Maximize Z = $40x1 + $50x2

Graph of Labor Constraint

Maximize Z = $40x1 + $50x2

Labor Constraint Area

Maximize Z = $40x1 + $50x2

Clay Constraint Area

Maximize Z = $40x1 + $50x2

Graph of Both Model Constraints

Maximize Z = $40x1 + $50x2

Feasible Solution Area

 Optimal solution is the point in feasible region that

Maximize Z = $40x1 + $50x2

Optimal Solution Coordinates

 Evaluate the objective function, that is the

Corners Z= $40x1 + $50x2

Maximize Z = $40x1 + $50x2

1. Consider the same example C= $40x1+50x2 as a cost

Minimize C = $40x1 + $50x2

Corners C=$40x1 + $50x2

 Therefore, the Minimum cost (C)= $1360, when x1 = 24 and x2 =

 A mathematical modeling technique called linear

• Solution Concept 1: the simplex method focuses on

Optimality test: is the CPF solution

Iteration: Perform an iteration to find a

 Solution concept 4: given a CPF solution, it is much

 Solution concept 5: After the CPF solution is

 Solution concept 6: A positive rate of improvement in

Constraint type Variable to be added

< + slack (s)

> - Surplus (S) + artificial (A)

Case 1: Maximization problem:

Case 2: Minimization problem:

 Put a box around the column below this variable, and

Step 2: Determine the leaving basic variable by applying

Leaving Pivot column Pivot Pivot row

By investigating the last row of the initial

Step 2: Determining the leaving variable by using

Step 3: Solving for the new BF solution by using

 To solve a minimization problem with > constraints, we must

 The optimality test consists simply of checking whether any of the

 The minimization model can be solved using duality of simplex

© 2002 Prentice-Hall, Inc Ch 2-60

 If the original problem is a maximization problem then the

© 2002 Prentice-Hall, Inc Ch 2-61

© 2002 Prentice-Hall, Inc Ch 2-62

 If the Primal problem has an optimal solution, then also

© 2002 Prentice-Hall, Inc Ch 2-64

 If the original problem is a maximization problem, then the dual problem is a

Minimize  = 2x1 + 3x2

 Convert the inequalities in to equalities, positive variables

 The surplus variables may be denoted by P1 and P2 and