Simplex method

The simplex method solves the linear programming problem in iterations to improve the value of
the objective function.
ADDITIONAL VARIABLES USED IN SOLVING LPP
Three types of additional variables are used in simplex method such as,
(a) Slack variables (S1, S2, S3..Sn): Slack variables refer to the amount of unused resources like
raw materials, labour and money.
(b) Surplus variables (-S1, -S2, -S3..-Sn): Surplus variable is the amount of resources by which
the left hand side of the equation exceeds the minimum limit.
(c) Artificial Variables (a1, a2, a3.. an): Artificial variables are temporary slack variables which
are used for purposes of calculation.
The above variables are used to convert the inequalities into equality equations.
Constraint Type Variable added Format
Less than or equal to
<=
Add Slack Variable +S
Greater than or equal
to >=

Subtract surplus variable
and add
artificial variable

-S + a
Equal to = Add artificial variable +a

The procedure for simplex method is explained with the following example.
Example 1
A company manufactures two types of boxes, corrugated and ordinary cartons. The boxes undergo two
major processes: cutting and pinning operations. The profits per unit are Rs. 6 and Rs. 4 respectively.
Each corrugated box requires 2 minutes for cutting and 3 minutes for pinning operation, whereas each
carton box requires 2 minutes for cutting and 1 minute for pinning. The available operating time is 120
minutes and 60 minutes for cutting and pinning machines. Determine the optimum quantities of the two
boxes to maximize the profits.

Key Decision: To determine how many (number of) corrugated and carton boxes are to be manufactured.
Decision variables:
Let xl be the number of corrugated boxes to be manufactured.
x2 be the number of carton boxes to be manufactured
Objective Function: The objective is to maximize the profits. Given profits on corrugated box and carton
box are Rs. 6 and Rs. 4 respectively.

The objective function is,
Zmax = 6x1 + 4x2
Constraints: The available machine-hours for each machine and the time consumed by each product are
given.
Therefore, the constraints are,
2x1 + 3x2 <= 120 (cutting machine) ..........................(i)
2x1+ x2 <= 60 (Pinning machine) ..........................(ii)
where x1, x2 >= 0.
Considering the constraint for cutting machine,
2x1+ 3x2 <= 120

The inequality indicates that the left-hand side of the constraints equation has some amount of unused
resources on cutting machine. To convert this inequality constraint into an equation, introduce a slack
variable, S3 which represents the unused resources. Introducing the slack variable, we have the equation

2x1+ 3x2 + S3 = 120

Similarly for pinning machine, the equation is
2x1+ x2 + S4 = 60

The variables S3 and S4 are known as slack variables corresponding to the three constraints. Now we have
in all four variables (which includes slack variable) and two equations. If any two variables are equated to
zero, we can solve the three equations of the system in two unknowns.

If variables x1 and x2 are equated to zero,
i.e., x1 = 0 and x2 = 0, then
S3 = 120
S4 = 60

This is the basic solution of the system, and variables S3 and S4 are known as Basic Variables SB, while x1
and x2 known as Non-Basic Variables.

Rewriting the constraints with slack variables gives us,
Zmax = 6x1 + 4x2 + 0S3 + 0S4

Subject to constraints,
2x1 + 3x2 + S3 = 120 ....................(i)
2x1 + x2 + S4 = 60 ....................(ii)
where x1, x2 >= 0.

The problem can be solved in the following steps:

Iteration 1:
Ci
Basic
variable
X1
Kc
X2 S3 S4
Solution
value
Minimum
Ratio(SV/Kc)
0 S3 2 3 1 0 120 60
0 S4Kr 2 1 0 1 60 30
Cj 6 4 0 0 0
Zj 0 0 0 0

j=
Cj-Zj
6
4 0 0




Iteration :2

Ci
Basic
variable
X1

X2
Kc
S3 S4
Solution
value
Minimum
Ratio(SV/Kc)
Equation
0 S3Kr 0 2 1 -1 60 30 S3- (kc x Pe)
6 X1 pe 1 0 30 60 S4/2
Cj 6 4 0 0 180
Zj 6 3 0 3
j 0 1 0 -3


Iteration 3:
Ci
Basic
variable
X1

X2

S3 S4
Solution
value
Minimum
Ratio(SV/Kc)
Equation
4 X2 Pe 0 1 1/2 -1/2 30 S3/2
6 X1 1 0 -1/4 3/4 15 X1-(Kc x Pe)
Cj 6 4 0 0 210
Zj 6 4 1/2 2.5
j 0 0 -1/2 -2.5

The solution is,
x1 = 15 corrugated boxes are to be produced and
x2 = 30 carton boxes are to be produced to yield a

Profit, Zmax = Rs. 210.00

Summary of LPP Procedure

Step 1: Formulate the LP problem.
Step 2: Introduce slack /auxiliary variables.
if constraint type is < introduce + S
if constraint type is >introduce S + a and
if constraint type is = introduce a
Step 3: Find the initial basic solution.
Step 4: Establish a simplex table and enter all variable coefficients. Calculate Zj taking into account the
current variables and their Ci. Calculate j by subtracting the Zj from Cj.
Step 5: Take the most positive coefficient in the j to identify the key column (the corresponding variable
is the entering variable of the next iteration table).
Step 6: Find the ratio between the solution value and the coefficient of the key column. Enter the values
in the minimum ratio column.
Step 7: Take the minimum positive value available in the minimum ratio column to identify the key row.
(The corresponding variable is the leaving variable of the table).
Step 8: The intersection element of the key column and key row is the pivotal element.
Step 9: Construct the next iteration table by eliminating the leaving variable and introducing the entering
variable.
Step 10: Convert the pivotal element as 1 in the next iteration table and compute the other elements in
that row accordingly. This is the pivotal equation row (not key row).
Step 11: Other elements in the key column must be made zero. For simplicity, form the
equations as follows: [Xi-(Kc x Pe)] Key column element is multiplied with pivotal equation element and
subtract it from the corresponding variable.
Step 12: Check the values of objective function j. If there are positive values, the solution is not an
optimal one; go to step 5. Else, if all the values are negative or Zero, optimality is reached.
Write down the values of x1, x2,..xi and calculate the objective function for maximization or
minimization.
Note:
(i) If there are no x1, x2 variables in the final iteration table, the values of x1 and x2 are zero.
(ii) If it is a minimization problem j is calculated using Zj-Cj instead of Cj-Zj as in the
maximization problem. Rest of the procedure remains the same.