Chapter 3: Linear Programming

3.1 Introduction to Linear Programming

Linear Programming is a special and versatile technique which can be applied to a variety of
management problems viz. Advertising, Distribution, Investment, Production, Refinery Operations, and
Transportation analysis. The linear programming is useful not only in industry and business but also in
non-profit sectors such as Education, Government, Hospital, and Libraries. The linear programming
method is applicable in problems characterized by the presence of decision variables. The objective
function and the constraints can be expressed as linear functions of the decision variables. The
decision variables represent quantities that are, in some sense, controllable inputs to the system being
modeled. An objective function represents some principal objective criterion or goal that measures the
effectiveness of the system such as maximizing profits or productivity, or minimizing cost or
consumption. There is always some practical limitation on the availability of resources viz. man,
material, machine, or time for the system. These constraints are expressed as linear equations involving
the decision variables. Solving a linear programming problem means determining actual values of the
decision variables that optimize the objective function subject to the limitation imposed by the
constraints.
The main important feature of linear programming model is the presence of linearity in the
problem. The use of linear programming model arises in a wide variety of applications. Some model
may not be strictly linear, but can be made linear by applying appropriate mathematical transformations.
Still some applications are not at all linear, but can be effectively approximated by linear models. The
ease with which linear programming models can usually be solved makes an attractive means of dealing
with otherwise intractable nonlinear models.

3.2 Linear Programming Problem Formulation

The linear programming problem formulation is illustrated through a product mix problem. The product
mix problem occurs in an industry where it is possible to manufacture a variety of products. A product
has a certain margin of profit per unit, and uses a common pool of limited resources. In this case the
linear programming technique identifies the products combination which will maximize the profit
subject to the availability of limited resource constraints.

Example 3.1:

Suppose an industry is manufacturing tow types of products P1 and P2. The profits per Kg of the two
products are Rs.30 and Rs.40 respectively. These two products require processing in three types of
machines. The following table shows the available machine hours per day and the time required on each
machine to produce one Kg of P1 and P2. Formulate the problem in the form of linear programming
model.

Profit/Kg P1 P2 Total available Machine

Rs.30 Rs.40 hours/day
Machine 1 3 2 600
Machine 2 3 5 800
Machine 3 5 6 1100

Solution:

The procedure for linear programming problem formulation is as follows:

Introduce the decision variable as follows:

Let x1 = amount of P1
x2 = amount of P2

In order to maximize profits, we establish the objective function as

30x1 + 40x2

Since one Kg of P1 requires 3 hours of processing time in machine 1 while the corresponding
requirement of P2 is 2 hours. So, the first constraint can be expressed as

3x1 + 2x2 ≤ 600

Similarly, corresponding to machine 2 and 3 the constraints are

3x1 + 5x2 ≤ 800

5x1 + 6x2 ≤ 1100
In addition to the above there is no negative production, which may be represented algebraically as

x1 ≥ 0 ; x2 ≥ 0

Thus, the product mix problem in the linear programming model is as follows:

Maximize
30x1 + 40x2

Subject to:
3x1 + 2x2 ≤ 600
3x1 + 5x2 ≤ 800
5x1 + 6x2 ≤ 1100
x1≥ 0, x2 ≥ 0

3.3 Formulation with Different Types of Constraints

The constraints in the previous example 3.1 are of “less than or equal to” type. In this section we are
going to discuss the linear programming problem with different constraints, which is illustrated in
the following Example 3.2.
Example 3.2:

A company owns two flour mills viz. A and B, which have different production capacities for high,
medium and low quality flour. The company has entered a contract to supply flour to a firm every month
with at least 8, 12 and 24 quintals of high, medium and low quality respectively. It costs the company
Rs.2000 and Rs.1500 per day to run mill A and B respectively. On a day, Mill A produces 6, 2 and 4
quintals of high, medium and low quality flour, Mill B produces 2, 4 and 12 quintals of high, medium
and low quality flour respectively. How many days per month should each mill be operated in order to
meet the contract order most economically.
Solution:

Let us define x1 and x2 are the mills A and B. Here the objective is to minimize the cost of the machine
runs and to satisfy the contract order. The linear programming problem is given by
Minimize
2000x1 + 1500x2

Subject to:
6x1 + 2x2 ≥ 8
2x1 + 4x2 ≥ 12
4x1 + 12x2 ≥ 24

x1 ≥ 0, x2 ≥ 0

3.4 Graphical Analysis of Linear Programming

This section shows how a two-variable linear programming problem is solved graphically, which is
illustrated as follows:

Example 3.3:
Consider the product mix problem discussed in section 3.2

Maximize
30x1 + 40x2

Subject to:
3x1 + 2x2 ≤ 600
3x1 + 5x2 ≤ 800
5x1 + 6x2 ≤ 1100
x1≥ 0, x2 ≥ 0
 From the first constraints 3x1 + 2x2 ≤ 600, draw the line 3x1 + 2x2 = 600 which passes through the point
(200, 0) and (0, 300). This is shown in the following graph as line 1.

300
3x1 + 2x2 = 600(line 1)

200

B
X2

C
100

3x1 + 5x2 = 800(line 2)

5x1 + 6x2 = 1100(line 3)

A
D
0 50 100 150 X1
200 275

Graph 1: Three closed half planes and Feasible Region

Half Plane - A linear inequality in two variables is called as a half plane.

Boundary - The corresponding equality (line) is called as the boundary of the half plane.

Close Half Plane – Half plane with its boundary is called as a closed half plane.
In this case we must decide in which side of the line 3x1 + 2x2 = 600 the half plane is located. The

easiest way to solve the inequality for x2 is

3x1 ≤ 600 – 2x2

And for the fixed x1, the coordinates satisfy this inequality are smaller than the corresponding ordinate

on the line and thus the inequality is satisfied for all the points below the line 1.

Similarly, we have to determine the closed half planes for the inequalities 3x1 + 5x2 ≤ 800 and
5x1 + 6x2 ≤ 1100 (line 2 and line 3 in the graph). Since all the three constraints must be satisfied
simultaneously we have consider the intersection of these three closed half planes. The complete
intersection of these three closed half planes is shown in the above graph as ABCD. The region ABCD
is called the feasible region, which is shaded in the graph.
Feasible Solution:
Any non-negative value of x1, x2 that is x1 ≥ 0 and x2 ≥ 0 is known as feasible solution of the linear
programming problem if it satisfies all the existing constraints.
Feasible Region:
The collection of all the feasible solution is called as the feasible region.

Example 3.4:
In the previous example we discussed about the less than or equal to type of linear programming
problem, i.e. maximization problem. Now consider a minimization (i.e. greater than or equal to type)
linear programming problem formulated in Example 3.2.

Minimize
2000x1 + 1500x2

Subject to:
6x1 + 2x2 ≥ 8
2x1 + 4x2 ≥ 12
4x1 + 12x2 ≥ 24

x1 ≥ 0, x2 ≥ 0

The three lines 6x1 + 2x2 = 8, 2x1 + 4x2 = 12, and 4x1 + 12x2 = 24 passes through the point
(1.3,0) (0,4), (6,0) (0,3) and (6,0) (0,2). The feasible region for this problem is shown in the following
Graph 2. In this problem the constraints are of greater than or equal to type of feasible region, which is
bounded on one side only.
 8

X2 A
4
6x1 + 2x2 ≥ 8

2 2x1 + 4x2 ≥ 12

C 4x1 + 12x2 ≥ 24
0
X1
2 4 6 8

Graph 2: Feasible Region

3.5 Graphical Liner Programming Solution

A two variable linear programming problem can be easily solved graphically. The method is simple but
the principle of solution is depends on certain analytical concepts, they are:
Convex Region:
A region R is convex if and only if for any two points on the region R the line connecting those points
lies entirely in the region R.
Extreme Point:
The extreme point E of a convex region R is a point such that it is not possible to locate two distinct
points in R, so that the line joining them will include E. The extreme points are also called as corner
points or vertices.
Thus, the following result provides the solution to the linear programming model:
• “If the minimum or maximum value of a linear function defined over a convex region exists,
then it must be on one of the extreme points”.
 In this section we are going to describe linear programming graphical solution for both the
maximization and minimization problems, discussed in Example 3.3 and Example 3.4.

Example 3. 5:

Consider the maximization problem described in Example 3.3.

Maximize
30x1 + 40x2
Subject to:
3x1 + 2x2 ≤ 600
3x1 + 5x2 ≤ 800
5x1 + 6x2 ≤ 1100
M = 30x1 +40x2
x1 ≥ 0, x2 ≥ 0

The feasible region identified in the Example 3.3 is a convex polygon, which is illustrated in the
following Graph 3. The extreme point of this convex region are A, B, C, D and E.

300

200

X2 C

100

A D
E

0 50 100 150 X1
200 275
 Graph 3: Graphical Linear Programming Solution

In this problem the objective function is 30x1 + 40x2. Let be M is a parameter, the graph 30x1 +
40x2 = M is a group of parallel lines with slope – 30/40. Some of these lines intersects the feasible region
and contains many feasible solutions, whereas the other lines miss and contain no feasible solution. In
order to maximize the objective function, we find the line of this family that intersects the feasible
region and is farthest out from the origin. Note that the farthest is the line from the origin the greater will
be the value of M.
Observe that the line 30x1 + 40x2 = M passes through the point D, which is the intersection of the
lines 3x1 + 5x2 = 800 and 5x1 + 6x2 = 1100 and has the coordinates x1 = 170 and x2 = 40. Since D is the
only feasible solution on this line the solution is unique.
The value of M is 6700, which is the objective function maximum value. The optimum value
variables are x1 = 170 and X2 = 40.
The following Table 1 shows the calculation of maximum value of the objective function.

Extreme Point Coordinates Objective Function

X1 X2 30x1 + 40x2
A X1 = 0 X2 = 0 0
B X1 = 0 X2 = 160 6400
C X1 = 110 X2 = 70 6100
D X1 = 170 X2 = 40 6700
E X1 = 200 X2 = 0 6000

Table 1: Shows the objective function Maximum value calculation

Example 3.6:
Consider the minimization problem described in Example 3.4.

Minimize

2000x1 + 1500x2

Subject6x
to:1 + 2x2 ≥ 8
2x1 + 4x2 ≥ 12
4x1 + 12x2 ≥ 24
x1≥ 0, x2 ≥ 0

The feasible region for this problem is illustrated in the following Graph 4. Here each of the half
planes lies above its boundary. In this case the feasible region is infinite. In this case, we are concerned
with the minimization; also it is not possible to determine the maximum value. As in the previous
 example let us introduce a parameter M in the objective function i.e. 2000x1 + 1500x2 = M and draw the
lines for different values of M, which is shown in the following Table 2.

X2 A
4

C
0
2000x1+ 1500x2=M X1
2 4 6 8

Graph 4: Graphical Linear Programming Solution

Extreme Point Coordinates Objective Function

X1 X2 2000x1 + 1500x2
A X1 = 0 X2 = 4 6000
B X1 = 0.5 X2 = 2.75 5125
C X1 = 6 X2 = 0 12000

Table 2: Shows the objective function Minimum value computation

The minimum value is 5125 at the extreme point B, which is the value of the M (objective
function). The optimum values variables are X1 = 0.5 and X2 = 2.75.

3.6 Multiple Optimal Solutions

When the objective function passed through only the extreme point located at the intersection of two
half planes, then the linear programming problem possess unique solutions. The previous examples i.e.
Example 3.5 and Example 3.6 are of this types (which possessed unique solutions).
When the objective function coincides with one of the half planes generated by the constraints in
the problem, will possess multiple optimal solutions. In this section we are going to discuss about the
multiple optimal solutions of linear programming problem with the help of the following Example
3.7.

Example 3.7:

A company purchasing scrap material has two types of scarp materials available. The first type has 30%
of material X, 20% of material Y and 50% of material Z by weight. The second type has 40% of
material X, 10% of material Y and 30% of material Z. The costs of the two scraps are Rs.120 and
Rs.160 per kg respectively. The company requires at least 240 kg of material X, 100 kg of material Y
and 290 kg of material Z. Find the optimum quantities of the two scraps to be purchased so that the
company requirements of the three materials are satisfied at a minimum cost.
Solution

First we have to formulate the linear programming model. Let us introduce the decision variables x1 and
x2 denoting the amount of scrap material to be purchased. Here the objective is to minimize
the purchasing cost. So, the objective function here is Minimize
120x1 + 160x2

Subject to:
0.3x1 + 0.4x2 ≥ 240
0.2x1 + 0.1x2 ≥ 100
0.5x1 + 0.3x2 ≥ 290

x1 ≥ 0; x2 ≥ 0

Multiply by 10 both sides of the inequalities, then the problem becomes

Minimize
120x1 + 160x2
Subject to:
3x1 + 4x2 ≥ 2400
2x1 + x2 ≥ 1000
5x1 + 3x2 ≥ 2900

x1 ≥ 0; x2 ≥ 0

27
 Let us introduce parameter M in the objective function i.e. 120x1 + 160x2 = M. Then we have to

determine the different values for M, which is shown in the following Table 3.

Extreme Point Coordinates Objective Function

X1 X2 120x1 + 160x2
A X1 = 0 X2 = 1000 160000
B X1 = 150 X2 = 740 136400
C X1 = 400 X2 = 300 96000
D X1=800 X2=0 96000

Table 3: Shows the calculation of Minimum objective function value

Note that there are two minimum value for the objective function (M=96000). The feasible
region and the multiple solutions are indicated in the following Graph 5.

1100

A
1000

900

800

700

5x1 + 3x2 ≥ 2900

600

X2
500

400 2x1 + x2 ≥ 1000

300 C

200

3x1 + 4x2 ≥ 2400

100
28
0 D
 X1
Graph 5: Feasible Region, Multiple Optimal Solutions

The extreme points are A, B, C, and D. One of the objective functions 120x1 + 160x2 = M family
coincides with the line CD at the point C with value M=96000, and the optimum value variables are x1 =
400, and x2 = 300. And at the point D with value M=96000, and the optimum value variables are x1 =
800, and x2 = 0.
Thus, every point on the line CD minimizes objective function value and the problem contains
multiple optimal solutions.
3.7 Unbounded Solution
When the feasible region is unbounded, a maximization problem may don’t have optimal solution, since
the values of the decision variables may be increased arbitrarily. This is illustrated with the help of the
following problem.
Maximize
3x1 + x2

Subject to:
x1 + x2 ≥ 6
-x1 + x2 ≤ 6
-x1 + 2x2 ≥ -6
and
x1, x2 ≥ 0

Graph 6 shows the unbounded feasible region and demonstrates that the objective function can
be made arbitrarily large by increasing the values of x1 and x2 within the unbounded feasible region. In
this case, there is no point (x1, x2) is optimal because there are always other feasible points for which
objective function is larger. Note that it is not the unbounded feasible region alone that precludes an
optimal solution. The minimization of the function subject to the constraints shown in the Graph 6
would be solved at one the extreme point (A or B).
The unbounded solutions typically arise because some real constraints, which represent a
practical resource limitation, have been missed from the linear programming formulation. In such
situation the problem needs to be reformulated and re-solved.
 -x1 + x2 = 6

A
6
x1 + x2 = 6
5

4 -x1 + 2x2 = 6
X2
3

Graph 6: Unbounded Feasible Region

1

1 2 3 4 5 6 B X1
3.8 Infeasible Solution

A linear programming problem is said to be infeasible if no feasible solution of the problem exists. This
section describes infeasible solution of the linear programming problem with the help of the following
Example 3.8.
Example 3.8:
Minimize
200x1 + 300x2

Subject to:
0.4x1 + 0.6x2 ≥ 240
0.2x1 + 0.2x2 ≤ 80
0.4x1 + 0.3x2 ≥ 180
x1, x2 ≥ 0

On multiplying both sides of the inequalities by 10, we get

4x1 + 6x2 ≥ 2400

2x1 + 2x2 ≤ 800
4x1 + 3x2 ≥ 1800
700

A
600
4x1 + 3x2 = 1800

500

B
400
X2

300

200 F
2x1 + 2x2 = 800

100
4x1 + 6x2 = 2400

0
D
C E
100 200 300 400 500 600 X1

Graph 7: Infeasible Solution

The region right of the boundary AFE includes all the solutions which satisfy the first (4x1 + 6x2
≥ 2400) and the third (4x1 + 3x2 ≥ 1800) constraints. The region left of the BC contains all solutions
which satisfy the second constraint (2x1 + 2x2 ≤ 800).
 Hence, there is no solution satisfying all the three constraints (first, second, and third). Thus, the
linear problem is infeasible. This is illustrated in the above Graph 7.
3.9 Summary

In Operations Research linear programming is a versatile technique with wide applications in various
management problems. Linear Programming problem has a number of characteristics. That is first we
have to identify the decision variable. The problem must have a well defined objective function, which
are expressed in terms of the decision variables.
The objective function may have to be maximized when it indicates the profit or production or
contribution. If the objective function represents cost, in this case the objective function has to be
minimized.
The management problem is expressed in terms of the decision variables with the objective
function and constraints. A linear programming problem is solved graphically if it contains only two
variables.

3.10 Key Terms

Objective Function: is a linear function of the decision variables representing the objective of the
manager/decision maker.

Constraints: are the linear equations or inequalities arising out of practical limitations.

Decision Variables: are some physical quantities whose values indicate the solution.

Feasible Solution: is a solution which satisfies all the constraints (including the non-negative) presents
in the problem.

Feasible Region: is the collection of feasible solutions.

Multiple Solutions: are solutions each of which maximize or minimize the objective function.

Unbounded Solution: is a solution whose objective function is infinite.

Infeasible Solution: means no feasible solution.

3.11 Self Assessment Questions

Q1. A juice company has its products viz. canned apple and bottled juice with profit margin Rs.4 and
Rs.2 respectively pre unit. The following table shows the labour, equipment, and ingredients to produce
each product per unit.

Canned Apple Bottled Juice Total

Labour 2.0 3.0 12.0
Equipment 3.2 1.0 8.0
Ingredients 2.4 2.0 9.0

Formulate the linear programming problem (model) specifying the product mix which will maximize the
profit without exceeding the levels of resources.

Q2. An organization is interested in the analysis of two products which can be produces from the idle
time of labour, machine and investment. It was notified on investigation that the labour requirement of
the first and the second products was 4 and 5 units respectively and the total available man hours was
48. Only first product required machine hour utilization of one hour per unit and at present only 10 spare
machine hours are available. Second product needs one unit of byproduct per unit and the daily
availability of the byproduct is 12 units. According to the marketing department the sales potential of
first product cannot exceed 7 units. In a competitive market, first product can be sold at a profit of Rs.6
and the second product at a profit of Rs.10 per unit.

Formulate the problem as a linear programming model. Also determine graphically the feasible
region. Identify the redundant constraints if any.

Q3. Find graphically the feasible region of the linear programming problem given in Q1.

Q4. A bed mart company is in the business of manufacturing beds and pillows. The company has 40
hours for assembly and 32 hours for finishing work per day. Manufacturing of a bed requires 4 hours for
assembly and 2 hours in finishing. Similarly a pillow requires 2 hours for assembly and 4 hours for
finishing. Profitability analysis indicates that every bed would contribute Rs.80, while a pillow
contribution is Rs.55 respectively. Find out the daily production of the company to maximize the
contribution (profit).

Q5. Maximize
1170x1 + 1110x2
Subject to:
9x1 + 5x2 ≥ 500
7x1 + 9x2 ≥ 300
5x1 + 3x2 ≤ 1500
7x1 + 9x2 ≤ 1900
2x1 + 4x2 ≤ 1000
x1, x2 ≥ 0
Find graphically the feasible region and the optimal solution.

Q6. Solve the following LP problem graphically

Minimize
2x1 +1.7x2
Subject to:
0.15x1 + 0.10x2 ≥ 1.0
0.75x1 + 1.70x2 ≥ 7.5
1.30x1 + 1.10x2 ≥ 10.0

x1, x2 ≥ 0

Q7. Solve the following LP problem graphically

33
MBA-H2040 Quantitative Techniques for Managers
Maximize
2x1 + 3x2
Subject to:
x1 – x2 ≤ 1
x1 + x2 ≥ 3
x1, x2 ≥ 0

Q8. Graphically solve the following problem of LP

Maximize
3x1 + 2x2
Subject to:
2x1 – 3x2 ≥ 0
3x1 + 4x2 ≤ -12
x1, x2 ≥ 0

Q9. Solve the following problem graphically

Maximize
4x1 + 4x2
Subject to:
-2x1 + x2 ≤ 1
x1 ≤ 2
x1 + x2 ≤ 3
x1, x2 ≥ 0

3.12 Key Solutions

Q1.
Canned Apple x1
Bottled Juice x2

Maximize
4x1 + 2x2

Subject to:
2x1 + 3x2 ≤ 12
3.2x1 + x2 ≤ 8
2.4x1 + 2x2 ≤ 9
x1, x2 ≥ 0

Q2.
First Product x1
Second Product x2

Maximize
6x1 + 10x2
Subject to:
4x1 + 5x2 ≤ 48
x1 ≤ 10
 x2 ≤ 12
x1 ≤ 7

x1, x2 ≥ 0
The constraints x1 ≤ 10 is redundant.
Q4.
Beds = 8
Pillows = 4
Maximum Profits is: Rs.860

Q5.
Optimum variables values are: x1=271.4, x2=0
The maximum value is: 317573

Q6.
Optimum variables values are: x1=6.32, x2=1.63
The minimum values is: 15.4

Q7.
The solution is unbounded

Q8.
The problem has no feasible solution

Q9.
The problem has multiple solutions with the following optimum variable values:
x1=2, x2 =1 or x1=2/3, x2=7/3

The Maximum objective function value is: 12

37
 LINEAR PROGRAMMING – SIMPLEX METHOD
3.1 Introduction
The Linear Programming with two variables can be solved graphically. The graphical method of solving
linear programming problem is of limited application in the business problems as the number of
variables is substantially large. If the linear programming problem has larger number of variables, the
suitable method for solving is Simplex Method. The simplex method is an iterative process, through
which it reaches ultimately to the minimum or maximum value of the objective function.
The simplex method also helps the decision maker/manager to identify the following:
• Redundant Constraints
• Multiple Solutions
• Unbounded Solution
• Infeasible Problem

3.2 Basics of Simplex Method

The basic of simplex method is explained with the following linear programming problem.

Example 3.1:
Maximize
60x1 + 70x2
Subject to:
2x1 + x2 ≤ 300
3x1 + 4x2 ≤ 509
4x1 + 7x2 ≤ 812

x1, x2 ≥ 0

Solution
First we introduce the variables
s3, s4, s5 ≥ 0
So that the constraints becomes equations, thus

2x1 + x2 + s3 = 300
3x1 + 4x2 + s4 = 509
4x1 + 7x2 + s5 = 812
Corresponding to the three constraints, the variables s3, s4, s5 are called as slack variables. Now, the
system of equation has three equations and five variables.

There are two types of solutions they are basic and basic feasible, which are discussed as follows:

Basic Solution
We may equate any two variables to zero in the above system of equations, and then the system will
have three variables. Thus, if this system of three equations with three variables is solvable such a
solution is called as basic solution.
 For example suppose we take x1=0 and x2=0, the solution of the system with remaining three
variables is s3=300, s4=509 and s5=812, this is a basic solution and the variables s3, s4, and s5 are known
as basic variables where as the variables x1, x2 are known as non-basic variables.
The number of basic solution of a linear programming problem is depends on the presence of the
number of constraints and variables. For example if the number of constraints is m and the number of
variables including the slack variables is n then there are at most nCn-m = nCm basic solutions.
Basic Feasible Solution

A basic solution of a linear programming problem is called as basic feasible solutions if it is feasible it
means all the variables are non-negative. The solution s3=300, s4=509 and s5=812 is a basic feasible
solution.
The number of basic feasible solution of a linear programming problem is depends on the
presence of the number of constraints and variables. For example if the number of constraints is m and
the number of variables including the slack variables is n then there are at most nCn-m = nCm basic
feasible solutions.
Every basic feasible solution is an extreme point of the convex set of feasible solutions and every
extreme point is a basic feasible solution of the set of given constraints. It is impossible to identify the
extreme points geometrically if the problem has several variables but the extreme points can be
identified using basic feasible solutions. Since one the basic feasible solution will maximize or minimize
the objective function, the searching of extreme points can be carry out starting from one basic feasible
solution to another.
The Simplex Method provides a systematic search so that the objective function increases in the
cases of maximization progressively until the basic feasible solution has been identified where the
objective function is maximized.
3.3 Simplex Method Computation
This section describes the computational aspect of simplex method. Consider the following linear
programming problem

Maximize
60x1 + 70x2
Subject to:
2x1 + x2 + s3 = 300
3x1 + 4x2 + s4 = 509
4x1 + 7x2 + s5 = 812
x1, x2, s3, s4 ,s5 ≥ 0
 The profit Z=60x1 + 70x2 i.e. Maximize 60x1 + 70x2
The standard form can be summarized in a compact table form as

In this problem the slack variables s3, s4, and s5 provide a basic feasible solution from which the
simplex computation starts. That is s3==300, s4=509 and s5=812. This result follows because of the
special structure of the columns associated with the slacks.
If z represents profit then z=0 corresponding to this basic feasible solution. We represent by C B
the coefficient of the basic variables in the objective function and by XB the numerical values of the
basic variable.
So that the numerical values of the basic variables are: XB1=300, XB2=509, XB3=812. The profit
z=60x1+70x2 can also expressed as z-60x1-70x2=0. The simplex computation starts with the first
compact standard simplex table as given below:

CB Basic Cj 60 70 0 0 0
Variables XB x1 x2 s3 s4 s5

0 s3 300 2 1 1 0 0
0 s4 509 3 4 0 1 0
0 s5 812 4 7 0 0 1

z -60 -70 0 0 0
Table 1

In the objective function the coefficients of the variables are CB1=CB2=CB3=0. The topmost row
of the Table 1 denotes the coefficient of the variables x1, x2, s3, s4, s5 of the objective function
respectively. The column under x1 indicates the coefficient of x1 in the three equations respectively.
Similarly the remaining column also formed.
On seeing the equation z=60x1+70x2 we may observe that if either x1 or x2, which is currently
non-basic is included as a basic variable so that the profit will increase. Since the coefficient of x2 is
higher we choose x2 to be included as a basic variable in the next iteration. An equivalent criterion of
choosing a new basic variable can be obtained the last row of Table 1 i.e. corresponding to z.
Since the entry corresponding to x2 is smaller between the two negative values, x2 will be
included as a basic variable in the next iteration. However with three constraints there can be only three
basic variables.
Thus, by bringing x2 a basic variable one of the existing basic variables becomes non-basic. The
question here is How to identify this variable? The following statements give the solution to this
question.
Consider the first equation i.e. 2x1 + x2 + s3 = 300
From this equation
2x1+s3=300-x2
But x1=0. Hence, in order that s3≥0
300-x2≥0
i.e. x2≤300
Similarly consider the second equation i.e. 3x1 + 4x2 + s4 = 509
From this equation
3x1+s4=509-4x2
But, x1=0. Hence, in order that s4≥0
509-4x2≥0
i.e. x2≤509/9

Similarly consider the third equation i.e. 4x1 + 7x2 + s5 = 812

From this equation
4x1+s5=812-7x2
But x1=0. Hence, in order that s5≥0
812-7x2≥0
i.e. x2≤812/7

Therefore the three equation lead to

x2≤300, x2≤509/9, x2≤812/7

Thus x2=Min (x2≤300, x2≤509/9, x2≤812/7) it means

x2=Min (x2≤300/1, x2≤509/9, x2≤812/7)=116

Therefore x2=116

If x2=116, you may be note from the third equation

7x2+s5=812
i.e. s5=0
Thus, the variable s5 becomes non-basic in the next iteration.

So that the revised values of the other two basic variables are

S3=300-x2=184
S4=509-4*116=45

Refer to Table 1, we obtain the elements of the next Table i.e. Table 2 using the following rules:

1. We allocate the quantities which are negative in the z-row. Suppose if all the quantities are
positive, the inclusion of any non-basic variable will not increase the value of the objective
function. Hence the present solution maximizes the objective function. If there are more than one
negative values we choose the variable as a basic variable corresponding to which the z value is
least as this is likely to increase the more profit.
 2. Let xj be the incoming basic variable and the corresponding elements of the jth row column be
denoted by Y1j, Y2j and Y3j respectively. If the present values of the basic variables are XB1,
XB2 and XB3 respectively, then we can compute.

Min [XB1/Y1j, XB2/Y2j, XB3/Y3j] for Y1j, Y2j, Y3j>0.

Note that if any Yij≤0, this need not be included in the comparison. If the minimum occurs
corresponding to XBr/Yrj then the rth basic variable will become non-basic in the next iteration.

3. Using the following rules the Table 2 is computed from the Table 1.

i. The revised basic variables are s3, s4 and x2. Accordingly, we make CB1=0, CB2=0
and CB3=70.

ii. As x2 is the incoming basic variable we make the coefficient of x2 one by dividing
each element of row-3 by 7. Thus the numerical value of the element corresponding
to x1 is 4/7, corresponding to s5 is 1/7 in Table 2.

iii. The incoming basic variable should appear only in the third row. So we multiply the
third-row of Table 2 by 1 and subtract it from the first-row of Table 1 element by
element. Thus the element corresponding to x2 in the first-row of Table 2 is 0.

Therefore the element corresponding to x1 is

2-1*4/7=10/7 and the element corresponding to s5 is
0-1*1/7=-1/7

In this way we obtain the elements of the first and the second row in Table 2. In Table 2 the
numerical values can also be calculated in a similar way.

CB Basic Cj 60 70 0 0 0
Variables XB x1 x2 s3 s4 s5

0 s3 184 10/7 0 1 0 -1/7

0 s4 45 5/7 0 0 1 -4/7
70 x2 116 4/7 1 0 0 1/7

zj-cj -140/7 0 0 0 70/7

Table 2

Let CB1, CB2, Cb3 be the coefficients of the basic variables in the objective function. For
example in Table 2 CB1=0, CB2=0 and CB3=70. Suppose corresponding to a variable J, the quantity zj is
defined as zj=CB1, Y1+CB2, Y2j+CB3Y3j. Then the z-row can also be represented as Zj-Cj.
For example:
z1 - c1 = 10/7*0+5/7*0+70*4/7-60 = -140/7

z5 – c5 = -1/7*0-4/7*0+1/7*70-0 = 70/7

1. Now we apply rule (1) to Table 2. Here the only negative zj-cj is z1-c1 = -140/7
Hence x1 should become a basic variable at the next iteration.
2. We compute the minimum of the ratio

184 , 45, 116 644 , 63 , 203

Min 10 5 4 = Min 5 = 63
7 7 7

This minimum occurs corresponding to s4, it becomes a non basic variable in next iteration.

3. Like Table 2, the Table 3 is computed sing the rules (i), (ii), (iii) as described above.

CB Basic Cj 60 70 0 0 0
Variables XB x1 x2 s3 s4 s5

0 s3 94 0 0 1 -2 1
60 x1 63 1 0 0 7/5 -4/5
70 x2 80 0 1 0 -4/5 3/5

zj-cj 0 0 0 28 -6
Table 3

1. z5 – c5 < 0 should be made a basic variable in the next iteration.

2. Now compute the minimum ratios

94, 80
Min 1 3 = 94
5

Note: Since y25 = -4/5 < 0, the corresponding ratio is not taken for comparison.
The variable s3 becomes non basic in the next iteration.

3. From the Table 3, Table 4 is calculated following the usual steps.

CB Basic Cj 60 70 0 0 0
Variables XB x1 x2 s3 s4 s5

0 s5 94 0 0 1 -2 1
60 x1 691/5 1 0 4/5 -1/5 0
70 x2 118/5 0 1 -3/5 2/5 0

zj-cj 0 0 6 16 0
 Note that zj – cj ≥ 0 for all j, so that the objective function can’t be improved any further.

Thus, the objective function is maximized for x1 = 691/5 and x2=118/5 and

The maximum value of the objective function is 9944.

3.4 Simplex Method with More Than Two Variables

In previous section we discussed the simplex method of linear programming problem with two decision
variables. The simplex method computational procedure can be readily extended to linear programming
problems with more than two variables. This is illustrated in this section with the help of the product
mix problem given in the following Example 3.2.

Example 3.2
An organization has three machine shops viz. A, B and C and it produces three product viz. X, Y and Z
using these three machine shops. Each product involves the operation of the machine shops. The time
available at the machine shops A, B and C are 100, 72 and 80 hours respectively. The profit per unit of
product X, Y and Z is $22, $6 and $2 respectively. The
following table shows the time 10 7 2 required for each operation for
unit amount of each product. Determine an appropriate
product mix so as to maximize 2 3 4 the profit.
1 2 1 Machine
Shops
A B C
Products Profit/unit

X $22

Y $6

Z $2

Available Hours 100 72 80

Solution

First we have to develop linear programming formulation. The linear programming formulation of the
product mix problem is:

Maximize
22x1 + 6x2 + 2x3

Subject to:
10x1 + 2x2 + x3 ≤ 100
7x1 + 3x2 + 2x3 ≤ 72
2x1 + 4x2 + x3 ≤ 80

x1, x2, x3 ≥ 0
We introduce slack variables s4, s5 and s6 to make the inequalities equation.
Thus, the problem can be stated as
Maximize
22x1 + 6x2 + 2x3

Subject to:
10x1 + 2x2 + x3 + s4 = 100
7x1 + 3x2 + 2x3 + s5 = 72
2x1 + 4x2 + x3 + s6 = 80
x1, x2, x3, s4, s5, s6 ≥ 0
From the above equation the simplex Table 1 can be obtained in a straight forward manner. Here
the basic variables are s4, s5 and s6. Therefore CB1 = CB2 = CB3 = 0.

CB Basic Cj 22 6 2 0 0 0
Variable XB x1 x2 x3 s4 s5 s6

0 s4 100 10 2 1 1 0 0
0 s5 72 7 3 2 0 1 0
0 s6 80 2 4 1 0 0 1

zj-cj -22 -6 -2 0 0 0
Table 1

1. z1-c1 = -22 is the smallest negative value. Hence x1 should be taken as a basic variable in the next
iteration.
2. Calculate the minimum of the ratios

Min 100 , 72 , 80 = 10
10 7 2

The variable s4 corresponding to which minimum occurs is made a non basic variable.
3. From the Table 1, the Table 2 is calculated using the following rules:

i. The revised basic variables are x1, s5, s6. Accordingly we make CB1=22, CB2=0 and
CB3=0.
ii. Since x1 is the incoming variable we make x1 coefficient one by dividing each
element of row 1 by 10. Thus the numerical value of the element corresponding to x2
is 2/10, corresponding to x3 is 1/10, corresponding to s4 is 1/10, corresponding to s5 is
0/10 and corresponding to s6 is 0/10 in Table 2.
iii. The incoming basic variable should only appear in the first row. So we multiply first
row of Table 2 by 7 and subtract if from the second row of Table 1 element by
element.
Thus,
The element corresponding to x1 in the second row of Table 2 is zero

The element corresponding to x2 is 3 – 7 * 2 = 16

10 10

By using this way we get the elements of the second and the third row in Table 2.
 Similarly, the calculation of numerical values of basic variables in Table 2 is done.

CB Basic Cj 22 6 2 0 0 0
Variable XB x1 x2 x3 s4 s5 s6

22 x1 10 1 2/10 1/10 1/10 0 0

0 s5 2 0 16/10 13/10 -7/10 1 0
0 s6 60 0 18/5 4/5 -1/5 0 1

zj-cj 0 -8/5 1/5 12/5 0 0

Table 2

1. z2-c2 = -8/5. So x2 becomes a basic variable in the next iteration.

2. Calculate the minimum of the ratios

10, 7 , 60
Min 2 16 18 = Min 50, 70, 300 = 70
10 10 5 16 18 16

Hence the variable s5 will be a non basic variable in the next iteration.

3. From Table 2, the Table 3 is calculated using the rules (i), (ii) and (iii) mentioned above.

CB Basic Cj 22 6 2 0 0 0
Variable XB x1 x2 x3 s4 s5 s6

22 x1 73/8 1 0 -1/16 3/16 -1/8 0

6 x2 30/8 0 1 13/16 -7/16 5/8 0
0 s6 177/4 0 0 -17/8 11/8 -9/4 1

zj-cj 0 0 24/16 24/16 1 0

Table 3

Note that all zj – cj ≥0, so that the solution is x1 = 73/8, x2 = 30/8 and s6 = 177/4 maximizes the
objective function.

The Maximum Profit is: 22*73/8 + 6*30/8 = 1606/8 + 180/8

= 1786/8 = $223.25

3.5 Tow Phase and M-Method

In the last two section we discussed the simplex method was applied to linear programming problems
with less than or equal to (≤) type constraints. Thus, there we could introduce slack variables which
provide an initial basic feasible solution of the problem.
 Generally, the linear programming problem can also be characterized by the presence of both
‘less than or equal to’ type or ‘greater than or equal to (≥)’ type constraints. In such case it is not always
possible to obtain an initial basic feasible solution using slack variables.
The greater than or equal to type of linear programming problem can be solved by using the
following methods:

1. Two Phase Method

2. M Method
In this section we will discuss these two methods.

3.5.1 Two Phase Method

We discuss the Two Phase Method with the help of the following Example 3.3.

Example 3.3
Minimize
12.5x1 + 14.5x2

Subject to:
x1 + x2 ≥ 2000
0.4x1 + 0.75x2 ≥ 1000
0.075x1 + 0.1x2 ≤ 200

x1, x2 ≥ 0
Solution
Here the objective function is to be minimized; the values of x1 and x2 which minimized this objective
function are also the values which maximize the revised objective function i.e.

Maximize
-12.5x1 – 14.5x2

We can multiply the second and the third constraints by 100 and 1000 respectively for the
convenience of calculation.

Thus, the revised linear programming problem is:

Maximize
-12.5x1 – 14.5x2
Subject to:
x1 + x2 ≥ 2000
40x1 + 75x2 ≥ 100000
75x1 + 100x2 ≤ 200000
x1, x2 ≥ 0

Now we convert the two inequalities by introducing surplus variables s3 and s4 respectively.
The third constraint is changed into an equation by introducing a slack variable s5.

Thus, the linear programming problem becomes as

 Maximize
-12.5x1 – 14.5x2 = -25/2x1 – 29/2x2

Subject to:
x1 + x2 -s3 = 2000
40x1 + 75x2 -s4 = 100000
75x1 + 100x2 +s5 = 200000

x1, x2,s3,s4,s5 ≥ 0
Even though the surplus variables can convert greater than or equal to type constraints into
equations they are unable to provide initial basic variables to start the simplex method calculation. So
we may have to introduce two more additional variables a6 and a7 called as artificial variable to
facilitate the calculation of an initial basic feasible solution.

In this method the calculation is carried out in tow phases hence tow phase method.

Phase I
In this phase we will consider the following linear programming problem

Maximize
-a6 –a7

Subject to:
x1 + x2 -s3 +a6 = 2000
40x1 + 75x2 -s4 + a7 = 100000
75x1 + 100x2 +s5 = 200000

x1, x2.s3,s4,s5,a6,a7 ≥ 0

The initial basic feasible solution of the problem is

a6 = 2000, a7=100000 and s5 = 200000.

As the minimum value of the objective function of the Phase I is zero at the end of the Phase I
calculation both a6 and a7 become zero.
CB Basic Cj 0 0 0 0 0 -1 -1
variables XB x1 x2 s3 s4 s5 a6 a7

-1 a6 2000 1 1 -1 0 0 1 0
-1 a7 100000 40 75 0 -1 0 0 1
0 s5 200000 75 100 0 0 1 0 0
zj-cj -41 -76 1 1 0 0 0
Table 1
Here x2 becomes a basic variable and a7 becomes non basic variable in the next iteration. It is no
longer considered for re-entry in the table.
 CB Basic Cj 0 0 0 0 0 -1
variables XB x1 x2 s3 s4 s5 a6

-1 a6 2000/3 7/15 0 -1 1/75 0 1

0 x2 4000/3 8/15 1 0 -1/75 0 0

0 s5 200000/3 65/3 0 0 4/3 1 0

zj-cj -1/15 0 1 -1/75 0 0
Table 2

Then x1 becomes a basic variable and a6 becomes a non basic variable in the next iteration.

CB Basic Cj 0 0 0 0 0
variables XB x1 x2 s3 s4 s5

0 x1 10000/7 1 0 -15/7 1/35 0

0 x2 4000/7 0 1 8/7 -1/35 0

0 s5 250000/7 0 0 325/7 16/21 1

zj-cj 0 0 0 0 0
Table 3
The calculation of Phase I end at this stage. Note that, both the artificial variable have been
removed and also found a basic feasible solution of the problem.

The basic feasible solution is:

x1 = 10000/7, x2 = 4000/2, s5 = 250000/7.

Phase II
The initial basic feasible solution obtained at the end of the Phase I calculation is used as the initial basic
feasible solution of the problem. In this Phase II calculation the original objective function is introduced
and the usual simplex procedure is applied to solve the linear programming problem.
 CB Basic Cj -25/2 -29/2 0 0 0
variables XB x1 x2 s3 s4 s5

-25/2 x1 10000/7 1 0 -15/7 1/35 0

-29/2 x2 4000/7 0 1 8/7 -1/35 0

0 s5 250000/7 0 0 325/7 5/7 1

zj-cj 0 0 143/14 2/35 0
Table 1

In this Table 1 all zj-cj ≥ 0 the current solution maximizes the revised objective function.

Thus, the solution of the problem is:

x1 = 10000/7 = 1428 and x2 = 4000/7 = 571.4 and

The Minimum Value of the objective function is: 26135.3

3.5.2 M Method
In this method also we need artificial variables for determining the initial basic feasible solution. The M
method is explained in the next Example 3.4 with the help of the previous Example 3.3.

Example 3.4
Maximize
-12.5x1 – 14.5x2

Subject to:
x1 + x2 –s3 = 2000
40x1 + 75x2 -s4 = 100000
75x1 + 100x2 +s5 = 200000

x1, x2, s3, s4, s5 ≥ 0.

Introduce the artificial variables a6 and a7 in order to provide basic feasible solution in the second and
third constraints. The objective function is revised using a large positive number say M.
Thus, instead of the original problem, consider the following problem i.e.

Maximize
-12.5x1 – 14.5x2 – M (a6 + a7)
Subject to:
x1 + x2 –s3 + a6 = 2000
40x1 + 75x2 -s4 +a7 = 100000
75x1 + 100x2 +s5 = 200000
x1, x2, s3, s4, s5, a6, a7 ≥ 0.
The coefficient of a6 and a7 are large negative number in the objective function. Since the objective
function is to be maximized in the optimum solution, the artificial variables will be zero. Therefore, the
basic variable of the optimum solution are variable other than the artificial variables and hence is a basic
feasible solution of the original problem.
The successive calculation of simplex tables is as follows:

CB Basic Cj -12.5 -14.5 0 0 0 -M -M

variables XB x1 x2 s3 s4 s5 a6 a7

-M a6 2000 1 1 -1 0 0 1 0

-M a7 100000 40 75 0 -1 0 0 1

0 s5 200000 75 100 0 0 1 0 0
zj-cj -41M -76M M M 0 0 0
+12.5 +14.5
Table 1
Since M is a large positive number, the coefficient of M in the zj – cj row would decide the
entering basic variable. As -76M < -41M, x2 becomes a basic variable in the next iteration replacing a7.
The artificial variable a7 can’t be re-entering as basic variable.

CB Basic Cj -12.5 -14.5 0 0 0 -M

variables XB x1 x2 s3 s4 s5 a6

-M a6 2000/3 7/15 0 -1 1/75 0 1

-14.5 x2 4000/3 8/15 1 0 -1/75 0 0

0 s5 200000/3 65/3 0 0 4/3 1 0

zj-cj -7/15M 0 M -M/75 0 0
+143/30 +29/150
Table 2

Now x1 becomes a basic variable replacing a6. Like a7 the variable a6 also artificial variable so it
can’t be re-entering in the table.
 CB Basic Cj -12.5 -14.5 0 0 0
variables XB x1 x2 s3 s4 s5

-12.5 x1 10000/7 1 0 -15/7 1/35 0

-14.5 x2 4000/7 0 1 8/7 -1/35 0

0 s5 250000/7 0 0 325/7 16/21 1

zj-cj 0 0 143/14 2/35 0

Table 3

Hence
The optimum solution of the problem is x1 = 10000/7, x2 = 4000/7 and

The Minimum Value of the Objective Function is: 26135.3

3.6 Multiple Solutions

The simplex method also helps in identifying multiple solutions of a linear programming problem. This
is explained with the help of the following Example 3.5.

Example 3.5
Consider the following linear programming problem.

Maximize
2000x1 + 3000x2

Subject to:
6x1 + 9x2 ≤ 100
2x1 + x2 ≤ 20

x1, x2 ≥ 0.

Solution
Introduce the slack variables s3 and s4, so that the inequalities can be converted in to equation as
follows:
6x1 + 9x2 + s3 = 100
2x1 + x2 + s4 = 20

x1, x2, s3, s4 ≥ 0.

The computation of simple procedure and tables are as follows:
 CB Basic Cj 2000 3000 0 0
variables XB x1 x2 s3 s4

0 s3 100 6 9 1 0

0 s4 20 2 1 0 1

zj-cj -2000 -3000 0 0

Table 1

CB Basic Cj 2000 3000 0 0

variables XB x1 x2 s3 s4

0 x2 100/9 2/3 1 1/9 0

0 s4 80/9 4/3 0 -1/9 1

zj-cj 0 0 3000/9 0
Table 2

Here zj-cj ≥ 0 for all the variables so that we can’t improve the simplex table any more. Hence it
is optimum.

The optimum solution is x1 = 0, x2 = 100/9 and

The maximum value of the objective function is: 100000/3 = 33333.33.

However, the zj-cj value corresponding to the non basic variable x1 is also zero. This indicates
that there is more than one optimum solution for the problem exists.
In order to calculate the value of the alternate optimum solution we have to introduce x1 as a
basic variable replacing s4. The next Table 3 shows the computation of this.
 CB Basic Cj 2000 3000 0 0
variables XB x1 x2 s3 s4

3000 x2 20/3 0 1 1/6 1/2

2000 x1 20/3 1 0 -1/12 3/4

zj-cj 0 0 1000/3 3000

Table 3

Thus,
x1 = 20/3, x2 = 20/3 also maximize the objective function and

The Maximum value of the objective function is: 100000/3 = 33333.33

Thus, the problem has multiple solutions.

3.7 Unbounded Solution

In this section we will discuss how the simplex method is used to identify the unbounded solution. This
is explained with the help of the following Example 3.6.

Example 3.6
Consider the following linear programming problem.
Maximize
5x1 + 4x2
Subject to:
x1 – x2 ≤ 8
x1 ≤ 7

x1, x2 ≥ 0.

Solution :

Introduce the slack variables s3 and s4, so that the inequalities becomes as equation as follows:

x1 + s3 = 7
x1 – x2 + s4 = 8

x1, x2, s3, s4 ≥ 0.

The calculation of simplex procedures and tables are as follows:

 CB Basic Cj 5 4 0 0
variables XB x1 x2 s3 s4

0 s3 7 1 0 1 0

0 s4 8 1 -1 0 1

zj-cj -5 -4 0 0
Table 1

CB Basic Cj 5 4 0 0
variables XB x1 x2 s3 s4

5 x1 7 1 0 1 0

0 s4 1 0 -1 -1 1

zj-cj 0 -4 5 0
Table 2

Note that z2-c2 < 0 which indicates x2 should be introduced as a basic variable in the next
iteration. However, both y12≤0, y22≤0.
Thus, it is not possible to proceed with the simplex method of calculation any further as we
cannot decide which variable will be non basic at the next iteration. This is the criterion for unbounded
solution.

NOTE: If in the course of simplex computation zj-cj < 0 but yij ≤ 0 for all i then the problem has no
finite solution.

But in this case we may observe that the variable x2 is unconstrained and can be increased
arbitrarily. This is why the solution is unbounded.

3.8 Infeasible Solution

This section illustrates how to identify the infeasible solution using simplex method. This is explained
with the help of the following Example 3.7.

Example 3.7
Consider the following problem.
Minimize
200x1 + 300x2

Subject to:
2x1 + 3x2 ≥ 1200
x1 + x2 ≤ 400
2x1 + 3/2x2 ≥ 900

x1, x2 ≥ 0
Solution

Since it is a minimization problem we have to convert it into maximization problem and introduce the
slack, surplus and artificial variables. The problem appears in the following manner after doing all these
procedure.
Maximize
-200x1 - 300x2
Subject to:
2x1 + 3x2 -s3 +a6 = 1200
x1 + x2 +s4 = 400
2x1 + 3/2x2 - s5 + a7 = 900

x1, x2, s3, s4, s5, a6, a7 ≥ 0

Here the a6 and a7 are artificial variables. We use two phase method to solve this problem.

Phase I
Maximize
-a6 –a7
Subject to:
2x1 + 3x2 -s3 +a6 = 1200
x1 + x2 +s4 = 400
2x1 + 3/2x2 - s5 + a7 = 900

x1, x2, s3, s4, s5, a6, a7 ≥ 0

The calculation of simplex procedures and tables are as follows:

CB Basic Cj 0 0 0 0 0 -1 -1
variables XB x1 x2 s3 s4 s5 a6 a7

-1 a6 1200 2 3 -1 0 0 1 0
0 s4 400 1 1 0 1 0 0 1
-1 a7 900 2 3/2 0 0 -1 0 0
zj-cj -4 -9/2 1 0 1 0 0
Table 1
 CB Basic Cj 0 0 0 0 0 -1
variables XB x1 x2 s3 s4 s5 a7

0 x2 400 2/3 1 -1/3 0 0 0

0 s4 0 1/3 0 1/3 1 0 0
-1 a7 300 1 0 1/2 0 -1 1
zj-cj -1 0 -1/2 0 1 0
Table 2

CB Basic Cj 0 0 0 0 0 -1
variables XB x1 x2 s3 s4 s5 a7

0 x2 400 0 1 -1 -2 0 0
0 x1 0 1 0 1 3 0 0
-1 a7 300 0 0 -1/2 -3 -1 1
zj-cj 0 0 1/2 3 1 0
Table 3

Note that zj-cj ≥ 0 for all the variables but the artificial variable a7 is still a basic variable. This
situation indicates that the problem has no feasible solution.

3.9 Summary

The simplex method is very useful and appropriate method for solving linear programming problem
having more than tow variables. The slack variables are introduced for less that or equal to type, surplus
variables are introduce for greater than or equal to type of linear programming problem. The basic
feasible solution is important in order to solve the problem using the simplex method.
A basic feasible solution of a system with m-equations and n-variables has m non-negative
variables called as basic variables and n-m variables with value zero known as non-basic variables. The
objective function is maximized or minimized at one of the basic feasible solutions.
Surplus variables can’t provide the basic feasible solution instead artificial variables are used to
get the basic feasible solutions and it initiate the simplex procedure. Two phase and M-Method are
available to solve linear programming problem in these case.

The simplex method also used to identify the multiple, unbounded and infeasible solutions.

3.10 Key Terms

Basic Variable: Variable of a basic feasible solution has n non-negative value.

Non Basic Variable: Variable of a feasible solution has a value equal to zero.
MBA-H2040 Quantitative Techniques for Managers
Artificial Variable: A non-negative variable introduced to provide basic feasible solution and initiate
the simplex procedures.

Slack Variable: A variable corresponding to a ≤ type constraint is a non-negative variable introduced to

convert the inequalities into equations.

Surplus Variable: A variable corresponding to a ≥ type constraint is a non-negative variable introduced

to convert the constraint into equations.

Basic Solution: System of m-equation and n-variables i.e. m<n is a solution where at least n-m
variables are zero.

Basic Feasible Solution: System of m-equation and n-variables i.e. m<n is a solution where m variables
are non-negative and n-m variables are zero.

Optimum Solution: A solution where the objective function is minimized or maximized.

3.11 Self Assessment Questions

Q1. A soft drinks company has a two products viz. Coco-cola and Pepsi with profit of $2 an $1 per unit.
The following table illustrates the labour, equipment and materials to produce per unit of each product.
Determine suitable product mix which maximizes the profit using simplex method.

Pepsi Coco-cola Total Resources

Labour 3 2 12
1 2.3
Equipment 6.9
1 1.4
Material 4.9

Q2. A factory produces three using three types of ingredients viz. A, B and C in different proportions.
The following table shows the requirements o various ingredients as inputs per kg of the products.

Ingredients
Products A B C

1
4 8 8
2 4 6 4

3 8 4 0

The three profits coefficients are 20, 20 and 30 respectively. The factory has 800 kg of ingredients A,
1800 kg of ingredients B and 500 kg of ingredient C.

Determine the product mix which will maximize the profit and also find out maximum profit.
Q3. Solve the following linear programming problem using two phase and M method.

Maximize
12x1 + 15x2 + 9x3
Subject to:
8x1 + 16x2 + 12x3 ≤ 250
4x1 + 8x2 + 10x3 ≥ 80
7x1 + 9x2 + 8x3 =105
x1, x2, x3 ≥ 0

Q4. Solve the following linear programming problem using simplex method.

Maximize
3x1 + 2x2
Subject to:
x1 –x2 ≤ 1
x1 + x2 ≥ 3
x1, x2 ≥ 0

Q5. Solve the following linear programming problem using simplex method.
Maximize
x1 + x2
Subject to:
-2x1 + x2 ≤ 1
x1 ≤2
x1 + x2 ≤ 3
x1, x2, x3 ≥ 0

Q6. Maximize
P = 3x1 + 4x2 + x3
Subject to:
x1 + 2x2 + x3 ≤ 6
2x1 +2x3 ≤ 4
3x1 + x2 + x3 ≤ 9
x1, x2, x3 ≥ 0
3.12 Key Solutions

Q1. Coco-Cola = 20/9, Pepsi = 161/90

Maximum Profit = $6.23

Q2. x1 = 0, x2 = 125, x3 = 75/2

Maximum Profit = 5375

Q3. x1 = 6, x2 = 7, x3 = 0
Maximum Profit = 177

Q4. Unbounded Solution

Q5. x1 = 2, x2 = 1 or x1 = 2/3, x2 = 7/3

59
 Maximum Profit = 3.

Q6. x1 = 2, x2 = 2, x3 = 0
Maximum P = 14