Linear Programming using

Simplex Method
Acosta, Barro, Carlos, Delgado, Dela Cruz,
Dome, Estidola
 What is Simplex Method?

• The Simplex method is an approach to solving

linear programming models by hand using slack
variables, tableaus, and pivot variables as a means
to finding the optimal solution of an optimization
problem. A linear program is a method of
achieving the best outcome given a maximum or
minimum equation with linear constraints.
 What is Simplex Method?

• Simplex method, Standard technique in linear

programming for solving an optimization
problem, typically one involving a function and
several constraints expressed as inequalities. The
inequalities define a polygonal region (see
polygon), and the solution is typically at one of
the vertices. The simplex method is a systematic
procedure for testing the vertices as possible
solutions.
 THE SIMPLEX METHOD

• Developed during the Second World War by Dr.

George Dantzig
• His linear programming models helped the Allied
forces with transportation and scheduling
problems.
• In 1979, A Soviet scientist named Leonid
Khachian developed a method called the ellipsoid
algorithm which was supposed to be
revolutionary, but as it turned out it is not any
better than the simplex method
 THE SIMPLEX METHOD

• In 1984, Narendra Karmarkar, a research

scientist at AT&T Bell Laboratories
developed Karmarkar's algorithm which has
been proven to be four times faster than the
simplex method for certain problems.
• But the simplex method still works the best
for most problems.
 THE SIMPLEX METHOD
• Uses an approach that is very efficient.
• It does not compute the value of the objective
function at every point;
• It begins with a corner point of the feasibility
region where all the main variables are zero and
then systematically moves from corner point to
corner point, while improving the value of the
objective function at each stage.
• The process continues until the optimal solution is
found.
 THE SIMPLEX METHOD
1. Set up the problem. That is, write the
objective function and the inequality
constraints.
2. Convert the inequalities into equations.
This is done by adding one slack variable
for each inequality.
3. Construct the initial simplex tableau. Write
the objective function as the bottom row.
4. The most negative entry in the bottom row
identifies the pivot column.
 THE SIMPLEX METHOD
5. Calculate the quotients. The smallest quotient
identifies a row. The element in the intersection of
the column identified in step 4 and the row
identified in this step is identified as the pivot
element. The quotients are computed by dividing
the far right column by the identified column in step
4. A quotient that is a zero, or a negative number, or
that has a zero in the denominator, is ignored.
6. Perform pivoting to make all other entries in this
column zero. This is done the same way as we did
with the Gauss-Jordan method.
 THE SIMPLEX METHOD
7. When there are no more negative entries in
the bottom row, we are finished; otherwise, we
start again from step 4.

8. Read off your answers. Get the variables

using the columns with 1 and 0s. All other
variables are zero. The maximum value you
are looking for appears in the bottom right
hand corner.
To solve a linear programming model
using the Simplex method the following
are necessary: eps
• Standard form
• Introducing slack variables
• Creating the tableau
• Pivot variables
• Creating a new tableau
• Checking for optimality
• Identify optimal values
MAXIMIZATION
1) Identify and set up a linear program in
standard maximization form.
2) Convert inequality constraints to
equations using slack variables.
3) Set up the initial simplex tableau using
the objective function and slack equations.
4) Find the optimal simplex tableau by
performing pivoting operations.
5) Identify the optimal solution from the
optimal simplex tableau.
Example Problem
• Niki holds two part-time jobs, Job I and Job II.
She never wants to work more than a total of 12
hours a week. She has determined that for every
hour she works at Job I, she needs 2 hours of
preparation time, and for every hour she works at
Job II, she needs one hour of preparation time,
and she cannot spend more than 16 hours for
preparation. If she makes $40 an hour at Job I,
and $30 an hour at Job II, how many hours
should she work per week at each job to
maximize her income?
 STEP 1. Set up the problem. Write the objective
function and the constraints.
Since the simplex method is used for problems
that consist of many variables, it is not practical
to use the variables xx , yy , zz etc. We use
symbols x1x1 , x2x2 , x3x3 , and so on.

Let
x1x1 = The number of hours per week Niki will
work at Job I and
x2x2 = The number of hours per week Niki will
work at Job II. It is customary to choose the
variable that is to be maximized as ZZ . The
problem is formulated the same way as we did in
the last chapter.
eps

STEP 2. Convert the inequalities into equations. This is

done by adding one slack variable for each inequality.
• For example to convert the inequality
x1+x2≤12x1+x2≤12 into an equation,
we add a non-negative variable y1y1
, and we get x1+x2+y1=12
x1+x2+y1=12

• x1+x2+y1=12
• x1+x2+y1=12
Here the variable y1y1 picks up the slack, and it represents
the amount by which x1+x2x1+x2 falls short of 12. In this
problem, if Niki works fewer than 12 hours, say 10, then
y1y1 is 2. Later when we read off the final solution from the
identify the unused
simplex table, the values of the slack variables will identify
the unused amounts.
amounts
We rewrite the objective function
Z=40x1+30x2Z=40x1+30x2 as
−40x1−30x2+Z=0−40x1−30x2+Z=0 .
After adding the slack variables, our problem reads
 STEP 3. Construct the initial simplex tableau. Each
inequality constraint appears in its own row. (The non-
negativity constraints do not appear as rows in the simplex
tableau.) Write the objective function as the bottom row.

Now that the inequalities are converted into equations, we

can represent the problem into an augmented matrix called
the initial simplex tableau as follows.

Here the vertical line separates the left hand side of the
equations from the right side. The horizontal line separates
the constraints from the objective function. The right side of
the equation is represented by the column C.
The reader needs to observe that the last four columns of this
matrix look like the final matrix for the solution of a system of
equations. If we arbitrarily choose x1=0x1=0 and x2=0x2=0 , we
get

The solution obtained by arbitrarily assigning values to some

variables and then solving for the remaining variables is called the
basic solution associated with the tableau. So the above solution is
the basic solution associated with the initial simplex tableau. We
can label the basic solution variable in the right of the last column
as shown in the table below.
 STEP 4. The most negative entry in the bottom
row identifies the pivot column. The most negative
entry in the bottom row is -40; therefore the
column 1 is identified.
Question: Why do we choose the most negative entry in the
bottom row?
Answer:
The most negative entry in the bottom row represents the largest
coefficient in the objective function - the coefficient whose entry will
increase the value of the objective function the quickest.

The simplex method begins at a corner point where all the main
variables, the variables that have symbols such as x1x1 , x2x2 , x3x3
etc., are zero. It then moves from a corner point to the adjacent
corner point always increasing the value of the objective function. In
the case of the objective function Z=40x1+30x­2Z=40x1+30x­2 , it will
make more sense to increase the value of x1x1 rather than x2x2 .
The variable x1x1 represents the number of hours per week Niki
works at Job I. Since Job I pays $40 per hour as opposed to Job II
which pays only $30, the variable x1x1 will increase the objective
function by $40 for a unit of increase in the variable x1x1 .
 STEP 5. Calculate the quotients. The smallest quotient
identifies a row. The element in the intersection of the
column identified in step 4 and the row identified in this step
is identified as the pivot element.

Following the algorithm, in order to calculate the quotient,

we divide the entries in the far right column by the entries in
column 1, excluding the entry in the bottom row.

The smallest of the two quotients, 12 and 8, is 8.

Therefore row 2 is identified. The intersection of
column 1 and row 2 is the entry 2, which has been
highlighted. This is our pivot element.
Question Why do we find quotients, and why does the smallest
quotient identify a row?

Answer:

When we choose the most negative entry in the bottom row, we are
trying to increase the value of the objective function by bringing in the
variable x1x1 . But we cannot choose any value for x1x1 . Can we let
x1=100x1=100 ? Definitely not! That is because Niki never wants to
work for more than 12 hours at both jobs combined:
x1+x2≤12x1+x2≤12 . Can we let x1=12x1=12 ? Again, the answer is
no because the preparation time for Job I is two times the time spent
on the job. Since Niki never wants to spend more than 16 hours for
preparation, the maximum time she can work is 16 ÷ 2 = 8.
Question: Why do we identify the pivot element?

Answer:

As we have mentioned earlier, the simplex method begins with a corner point
and then moves to the next corner point always improving the value of the
objective function. The value of the objective function is improved by
changing the number of units of the variables. We may add the number of
units of one variable, while throwing away the units of another. Pivoting
allows us to do just that.

The variable whose units are being added is called the entering variable, and
the variable whose units are being replaced is called the departing variable.
The entering variable in the above table is x1x1 , and it was identified by the
most negative entry in the bottom row. The departing variable y2y2 was
identified by the lowest of all quotients.
STEP 6. Perform pivoting to make all other entries
in this column zero.

In chapter 2, we used pivoting to obtain the row echelon form of

an augmented matrix. Pivoting is a process of obtaining a 1 in the
location of the pivot element, and then making all other entries
zeros in that column. So now our job is to make our pivot element
a 1 by dividing the entire second row by 2. The result follows.

To obtain a zero in the entry first above the pivot element, we

multiply the second row by -1 and add it to row 1. We get
To obtain a zero in the element below the pivot, we multiply the
second row by 40 and add it to the last row.

We now determine the basic solution associated with this tableau. By

arbitrarily choosing x2=0x2=0 and y2=0y2=0 , we obtain x1=8x1=8 ,
y1=4y1=4 , and z=320z=320 . If we write the augmented matrix, whose left
side is a matrix with columns that have one 1 and all other entries zeros,
we get the following matrix stating the same thing.

We can restate the solution associated with this matrix as x1=8x1=8 ,

x2=0x2=0 , y1=4y1=4 , y2=0y2=0 and z=320z=320 . At this stage of
the game, it reads that if Niki works 8 hours at Job I, and no hours at
Job II, her profit Z will be $320. Recall from Example 3.1.1 in section
3.1 that (8, 0) was one of our corner points. Here y1=4y1=4 and
y2=0y2=0 mean that she will be left with 4 hours of working time and
no preparation time.
STEP 7. When there are no more negative entries in the bottom
row, we are finished; otherwise, we start again from step 4.

Since there is still a negative entry, -10, in the bottom row, we need to
begin, again, from step 4. This time we will not repeat the details of every
step, instead, we will identify the column and row that give us the pivot
element, and highlight the pivot element. The result is as follows .

We make the pivot element 1 by multiplying row 1 by 2, and we get

Now to make all other entries as zeros in this column, we first multiply row
1 by -1/2 and add it to row 2, and then multiply row 1 by 10 and add it to
the bottom row.

We no longer have negative entries in the bottom row, therefore

we are finished.
Question: Why are we finished when there are no negative entries in
the bottom row?

Answer: The answer lies in the bottom row. The bottom row
corresponds to the equation:

0x1+0x2+20y1+10y2+Z=400 or z=400−20y1−10y2
0x1+0x2+20y1+10y2+Z=400 or z=400−20y1−10y2

Since all variables are non-negative, the highest value ZZ can ever
achieve is 400, and that will happen only when y1y1 and y2y2 are zero.
 STEP 8. Read off your answers.

We now read off our answers, that is, we determine the basic
solution associated with the final simplex tableau. Again, we look
at the columns that have a 1 and all other entries zeros. Since the
columns labeled y1y1 and y2y2 are not such columns, we
arbitrarily choose y1=0y1=0 , and y2=0y2=0 , and we get

The final solution says that if Niki works 4 hours at Job I and 8
hours at Job II, she will maximize her income to $400. Since both
slack variables are zero, it means that she would have used up all
the working time, as well as the preparation time, and none will be
left.
MINIMIZATION
1) Set up the problem.
2) Write a matrix whose rows represent each constraint
with the objective function as its bottom row.
3) Write the transpose of the matrix by interchanging
the rows and the columns.
4) Write the dual problem associated with the transpose.
5) Solve the dual problem by the simplex method.
6) The optimal solution is found in the bottom row of
the final matrix in the columns corresponding to the
slack variables, and the minimum value of the objective
function is the same as the maximum value of the dual.
 Convert the following minimization problem into its dual .

Solution: To achieve our goal, we first express our problem as the

following matrix.

Observe that this table looks like an initial simplex tableau without
the slack variables. Next, we write a matrix whose columns are the
rows of this matrix, and the rows are the columns. Such a matrix is
called a transpose of the original matrix. We get:
The following maximization problem associated with the
above matrix is called its dual.

Note that we have chosen the variables as y's, instead of

x's, to distinguish the two problems.
The Duality Principle

The objective function of the minimization problem reaches its

minimum if and only if the objective function of its dual reaches
its maximum. And when they do, they are equal.

Find the solution to the

minimization problem by
solving its dual using the
simplex method. We rewrite
our problem

Recall that we solved the

above problem by the simplex
method in Example.
Therefore, we only show the
initial and final simplex
tableau.
Observe an important
change. Here our main
variables are y1 and y2. and
the slack variables are x1 and
x2.

Observe an important
change. Here our main
variables are y1 and y2. and
the slack variables are x1 and
x2.

A closer look at this table reveals

that the x1 and x2 values along
with the minimum value for the
minimization problem can be
obtained from the last row of the
final tableau. We have
highlighted these values by the
arrows.
SPECIAL CASES
 DEGENERACY
• Degeneracy is revealed when a basic variable
acquires a zero value rather than a negative or
positive value. In the final solution, either the
number of basic variables is not equal to the number
of constraints, or the number of zero variables does
not equal the number of decision variables.
• It occurs, where there is a tie for the minimum
positive replacement ratio for selecting outgoing
variable. In this case, the choice for selecting
outgoing variable may be made arbitrarily.
• Starts at a corner point and moves to an adjacent
corner point by increasing the value of a non-basic
variable xs with a positive cost coefficient.
There are 2 possible outcomes when
DEGENERACY is encountered:

1. The objective function improves after 1 or more

iterations,
2. The objective function does not improve during a
number of iterations where the basic feasible
solutions circle back to the iteration where the
degeneracy is encountered for the first time
resulting in an infinite loop of iterations.

Degeneracy is important because we want the simplex

method to be finite, and the generic simplex method is
not finite if bases are permitted to be degenerate.
Method to Resolve Degeneracy:
The following systematic procedure can be utilised to avoid
cycling due to degeneracy in L.P problems:

Step 1: First pick up the rows for which the min, non-
negative ratio is same (tie). To be definite, suppose such
rows are first, third etc. for example

Step 2: Now arrange the column of the usual simplex table

so that the columns forming the original unit come first in
proper orders.
Step 3: Then find the min of the Ratio Only for the rows for
which min-ratio was not unique, that is, for the rows first,
third or as picked up in step to

Step 4: Now compute the minimum of the ratio

Step 5: Next compute the minimum of the ratio

 Since min ratio 2 in the last column of above table is not
unique, both the slack variables S1, and S2 may leave the basis.
This is an indication for the existence of degeneracy in the given
L.P. Problem. So we apply the above outlined procedure to resolve
degeneracy (Tie).
First arrange the column X1, X2, S1, and S2 in such a way that
the initial identity (basis) matrix appears first. Thus the initial simplex
table becomes.
Which occurs for the second row. Hence S2 must
leave the basic, and the key element is 2 as
shown above.
Since all Δj ≥ 0, on optimal solution has
been reached. Hence the optimum basic
feasible solution is x1 = 0
x2 = 2

and Max z = 18
 Unbounded Solution
• An unbounded solution of a linear programming
problem is a situation where objective function is
infinite.
• A linear programming problem is said to have
unbounded solution if its solution can be made
infinitely large without violating any of its constraints
in the problem.
• Under the Simplex Method, an unbounded solution
is indicated when there are no positive values of
Replacement Ratio.
• Replacement ratio values are either infinite or
negative.
 MULTIPLE OPTIMAL SOLUTIONS

As before, we will first apply the Simplex algorithm to this

problem. The algorithm will take us to a tableau that indicates
that alternative optimal solutions exist. We will then examine
the geometrical origin behind the existence of alternative
optimal solutions, with the help of the graphical representation
of this problem.
After introducing two slack variables and setting up the
objective function, we obtain the following initial Simplex
tableau.

With x2 as the entering variable, it is easily seen that R1 is

the pivot row. After executing a pivot, we obtain the tableau
below
 At this point, since every non-basic variable has a
nonnegative coefficient in R0, the current solution (x1,
x2, s1, s2) = (0, 3, 0, 15) is optimal. However, notice that
the non-basic variable x1 has a coefficient of 0 in R0.
This implies that if we attempt to let x1 enter the basis,
then the objective-function value will not change.
Indeed, after a pivot with the x1-column as the pivot
column, we obtain the following new tableau.

 With the same objective-function value, the new solution

(x1, x2, s1, s2) = (7/3, 7/3, 0, 0) is, of course, also
optimal. Note that a further attempt at a pivot in the s2-
column will take us back to the previous solution. We
will therefore not pursue things further.
 The feasible region of this problem is depicted
in Figure LP-10. There, we see that the Simplex
algorithm starts with the point (0, 0), travels
along the x2-axis to the first optimal solution at
(0, 3), and then continues on to the second
optimal solution at (7/3, 7/3). Notice that the
objective-function line 4x1 + 14x2 = c (for any c)
is parallel to the edge that begins at (0, 3) and
ends at (7/3, 7/3). Hence, every point on this
edge is optimal.
 In general, if we are given two optimal solutions
to a linear program, then an infinite number of
optimal solutions can be constructed. In this
example, both (0, 3) and (7/3, 7/3) are optimal.
Therefore, every point on the edge connecting
these two points will also be optimal. Formally,
points on this edge are traced out by solutions of
the form: (x1, x2) = δ × (0, 3) + (1 − δ) × (7/3, 7/3)

 where δ is any value in the interval [0, 1]. As

specific examples, if we let δ = 1, then we have
the point (0, 3); if we let δ = 0, then we have the
point (7/3, 7/3); and if we let δ = 1/2, then we
have the point (7/6, 8/3), which is half way
between (0, 3) and (7/3, 7/3).
Infeasible Solution
• In a typical Linear Programming
model the values of the decision
variables which satisfy all the
constraints form the feasible solution,
however, if there are no values of
decision variables which satisfy all the
constraints then that LP model is said
to have an infeasible solution.
 Simplex Method (INFEASIBLE
SOLUTION) problem

Maximize: Z = x1 + 2x2 + x3

Subject to: x1 + x2/2 + x3/2 ≤ 1

2/3x1 + 2x2 + x3 ≥ 8
x1, x2, x3 ≥ 0
Step 1: construct the Linear Programming Model.
Step 2: Standardization of the problem.
 Convert the inequalities into equality
Slack Variable – Added to an inequality constraint to transform
it into equality. 
x1 + x2/2 + x3/2 + S1 = 1
2/3x1 + 2x2 + x3 – S2 = 8
x1, x2, x3 ≥ 0

Artificial Variable- it is a kind of variable which is introduced in the

linear program model to obtain the initial basic feasible solution.
 
x1 + x2/2 + x3/2 + S1 = 1
2/3x1 + 2x2 + x3 – S2 + A1 = 8
x1, x2, x3 ≥ 0
Therefore we have:
Z = x1 + 2x2 + x3 + 0s1 + 0s2 – MA1
Step 3: Create Simplex Table
  CJ 1 2 1 0 0 -M  

CB Basis X1 X2 X3 S1 S2 A1 B

    1 1/2 1 /2 1 0 0  

    3/2 2 1 0 -1 1  

                 

                 

x1, x2, x3, s2 = 0

S1 = 1, A1 = 8 (basic variables)
 
CJ: Objective row
CB: Coefficient of our basis
B: Solution values
Step 4: Establish a basic initial feasible solution
  CJ 1 2 1 0 0 -M  
CB Basis X1 X2 X3 S1 S2 A1 B
0 S1 1 1/2 1 /2 1 0 0 1
-M A1 3/2 2 1 0 -1 1 8
                 
                 

Step 5: Perform Optimal Test

  CJ 1 2 1 0 0 -M  
CB Basis X1 X2 X3 S1 S2 A1 B
0 S1 1 1/2 1 /2 1 0 0 1
-M A1 3/2 2 1 0 -1 1 8
  ZJ -3/2M -2M -M 0 M -M -8M
  CJ-ZJ 1+3/2M 2+2M 1+M 0 -M 0  

3 values positive (+)

ZJ: Decrease in value of objective function

Solution for ZJ: 0 x 1st row of x1 + (-M x 2nd row of x1)
Step 6: Iterate towards Optimal Solution
  CJ 1 2 1 0 0 -M    
CB Basis X1 X2 X3 S1 S2 A1 B  

0 S1 1 1/2 1 /2 1 0 0 1 2
-M A1 3/2 2 1 0 -1 1 8 4
  ZJ -3/2M -2M -M 0 M -M -8M  
  CJ-ZJ 1+3/2M 2+2M 1+M 0 -M 0    

solution values X x2
S1 is our Key Row because it is the minimum non negative value and S1
will be the departing variable.
X2 is our Key Column because it is the maximum positive value and will be
incoming variable.
1/2 is our key element
​
To get new variables:
For 1st Row (S1): key element of ½ will be divided into the existing variable
For 2nd Row (A1): below of our key element are 2 which will be our new key
element. Existing variable will be less above variable and X2.
Step 7: New Variables/Values
  CJ 1 2 1 0 0 -M    
CB Basis X1 X2 X3 S1 S2 A1 B  

0 X2 2 1 1 2 0 0 2  
-M A1 -5/2 0 -1 -4 -1 1 4  
  ZJ 4+5/2M 2 2+M 4+4M M -M 4-4M  
  CJ-ZJ 3-5/2 0 -1-M -4-4M -M 0    

To get new value of ZJ:

1st CB + 1ST X1 + (2nd CB + 2nd X1) = ZJ

OPTIMAL SOLUTION
EXERCISES
A small petroleum company owns two refineries.
Refinery 1 costs $20,000 per day to operate and it can
produce 400 barrels of high-grade oil, 300 barrels of
medium-grade oil, and 200 barrels of low-grade oil each
day. Refinery 2 is newer and more modern. It costs
$25,000 per day to operate, and it can produce 300
barrels of high-grade oil, 400 barrels of medium-grade
oil, and 500 barrels of low-grade oil each day. The
company has orders totaling 25,000 barrels of high-
grade oil, 27,000 barrels of medium-grade oil, and
30,000 barrels of low-grade oil.

How many days should it run each refinery to minimise

its costs and still refine enough oil to meet its orders?
A furniture dealer deals in only two items–
tables and chairs. He has Rs 50,000 to
invest and has storage space of at most 60
pieces. A table costs Rs 2500 and a chair
Rs 500. He estimates that from the sale of
one table, he can make a profit of Rs 250
and that from the sale of one chair a profit
of Rs 75. He wants to know how many
tables and chairs he should buy from the
available money so as to maximise his total
profit, assuming that he can sell all the
items which he buys.
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