Simplex Method

The use of the simplex method to solve an LP problem requires that the problem be
converted into itsstandard form. The standard form of the LP problem should have
the following characteristics:
(i) All the constraints should be expressed as equations by adding slack or surplus
and/or artificialvariables.
(ii) The right-hand side of each constraint should be made non-negative (if not).
This is done bymultiplying both sides of the resulting constraint by ′ − 1′.
The objective function should be of the maximization type.

Consider the LPP

Maximise 𝑍 = 𝑐1 𝑥1 + 𝑐2 𝑥2 + ⋯ + 𝑐𝑛 𝑥𝑛

Subject to:

𝑎11 𝑥1 + 𝑎12 𝑥2 + ⋯ + 𝑎1𝑛 𝑥𝑛 ≤ 𝑏1

𝑎21 𝑥1 + 𝑎22 𝑥2 + ⋯ + 𝑎2𝑛 𝑥𝑛 ≤ 𝑏2

⋮ ⋮ ⋮ ⋮ ⋮

𝑎𝑚1 𝑥1 + 𝑎𝑚2 𝑥2 + ⋯ + 𝑎𝑚𝑛 𝑥𝑛 ≤ 𝑏𝑚

𝑥1 , 𝑥2 , 𝑥3 , … , 𝑥𝑛 ≥ 0.

Then the standard form is given by:

𝑍 = 𝑐1 𝑥1 + 𝑐2 𝑥2 + . . . + 𝑐𝑛 𝑥𝑛 + 0𝑠1 + 0𝑠2 + . . . + 0𝑠𝑚

subject to the linear constraints

𝑎11 𝑥1 + 𝑎12 𝑥2 + ⋯ + 𝑎1𝑛 𝑥𝑛 + 𝑠1 = 𝑏1

𝑎21 𝑥1 + 𝑎22 𝑥2 + ⋯ + 𝑎2𝑛 𝑥𝑛 + 𝑠2 = 𝑏2

⋮ ⋮ ⋮ ⋮ ⋮ ⋮

𝑎𝑚1 𝑥1 + 𝑎𝑚2 𝑥2 + ⋯ + 𝑎𝑚𝑛 𝑥𝑛 + 𝑠𝑚 = 𝑏𝑚

and 𝑥1 , 𝑥2 , . . . , 𝑥𝑛 , 𝑠1 , 𝑠2 , . . . , 𝑠𝑚 ≥ 0.

In matrix notations the standard form is expressed as:

Optimize (Max or Min) 𝑍 = 𝑪𝑿 + 𝟎𝑺

subject to the linear constraints

𝑨𝑿 + 𝑺 = 𝒃, and 𝑿, 𝑺 ≥ 𝟎.

where, 𝑪 = (𝑐1 , 𝑐2 , . . . , 𝑐𝑛 ) is the row vector, 𝑿 = (𝑥1 , 𝑥2 , . . . , 𝑥𝑛 )𝑇 , 𝒃 =

(𝑏1 , 𝑏2 , . . . , 𝑏𝑚 ) 𝑇 and 𝑆 = (𝑠1 , 𝑠2 , . . . , 𝑠𝑚 ) 𝑇 are column vectors, and 𝑨 is the 𝑚 × 𝑛 matrix
of coefficients, 𝑎𝑖𝑗 of variables 𝑥1 , 𝑥2 , . . . , 𝑥𝑛 in the constraints.
 Remarks

1. Any minimization LP problem can be converted into an equivalent maximization

problem by changing the sign of 𝑐𝑗 s in the objective function. That is,
𝑛 𝑛

𝑀𝑖𝑛𝑖𝑚𝑖𝑠𝑒 ∑ 𝑐𝑗 𝑥𝑗 = 𝑀𝑎𝑥𝑖𝑚𝑖𝑠𝑒 ∑(−𝑐𝑗)𝑥𝑗

𝑖=1 𝑖=1

2. Any constraint expressed by equality (=) sign may be replaced by two weak
inequalities. For example,
𝑎11 𝑥1 + 𝑎12 𝑥2 + ⋯ + 𝑎1𝑛 𝑥𝑛 = 𝑏1 is equivalent to following two simultaneous constraints,
𝑎11 𝑥1 + 𝑎12 𝑥2 + ⋯ + 𝑎1𝑛 𝑥𝑛 ≤ 𝑏1 and 𝑎11 𝑥1 + 𝑎12 𝑥2 + ⋯ + 𝑎1𝑛 𝑥𝑛 ≥ 𝑏1 .
3. Three types of additional variables, namely (i) slack variables (𝑠) (ii) surplus
variables (– 𝑠), and (iii) artificial variables (𝐴) are added in the given LP problem to
convert it into the standard form.

Definitions

Slack Variable: A slack variable is used to convert a “less than” inequality to equality.
It represents an unused resource, either in the form of time on a machine, labour hours,
money, warehouse space, etc. Since these variables don’t yield any profit, therefore such
variables are added to the objective function with zero coefficients.

Surplus Variable: A surplus variable is used to convert a “greater than” inequality to

equality. It represents the amount by which solution values exceed a resource. These
variables are also called negative slack variables. Surplus variables, like slack variables
carry a zero coefficient inthe objective function.

Artificial Variable: An artificial variable is used in greater than inequalities to form

the initial basis variables.

Basic Solution: Given a system of 𝑚 simultaneous linear equations with 𝑛 (> 𝑚)

variables: 𝑨𝑿 = 𝒃, where 𝑨 is an 𝑚 × 𝑛 matrix and rank (𝑨) = 𝑚.

Any 𝑚 × 𝑚 non-singular submatrix of 𝑨 obtained by reordering 𝑚 linearly independent

columns of 𝑨. Then, a solution obtained by setting (𝑛 – 𝑚) variables not associated with
the columns of 𝑩, equal to zero, and solving the resulting system is called a basic solution
to the given system ofequations.

The 𝑚 variables (may be all non zero) are called basic variables. The 𝑚 × 𝑚 non-singular
sub-matrix 𝑩 is called a basis matrix and the columns of 𝑩 as basis vectors.

If 𝑩 is the basis matrix, then the basic solution to the system of equations will be 𝒙𝑩 =
𝑩−𝟏 𝒃.

Basic Feasible Solution: A basic solution to the system of simultaneous equations,

𝑨𝑿 = 𝒃 is called basicfeasible if 𝒙𝑩 ≥ 0.

Degenerate Solution: A basic solution to the system of simultaneous equations, 𝑨𝑿 = 𝒃

is called degenerate if one or more of the basic variables assume zero value.
Cost Vector: Let 𝒙𝑩 be a basic feasible solution to the LP problem.

Maximize 𝑍 = 𝑪𝑿

subject to the constraints

𝑨𝑿 = 𝒃, and 𝑿 ≥ 0.

Then the vector 𝒄𝑩 = (𝑐𝐵1 , 𝑐𝐵2 , . . . , 𝑐𝐵𝑚 ), is called cost vector that represents the
coefficient of basic variable c, 𝒙𝑩 in the basic feasible solution.

Simplex Algorithm (Maximization case)

Step 1: Formulation of the mathematical model by expressing the given LPP in
standard form.
Step 2: Set-up the initial solution by considering the slack variables as initial basic
variables and 𝑥𝐵 = 𝑏 as the initial basic solution.

𝑐𝑗  𝑐1 𝑐2 ... 𝑐𝑛 0 0 ... 0

Basic Variables Basic Basic Variables Variables

Coefficient Variable Value 𝑥1 𝑥2 ... 𝑥𝑛 𝑠1 𝑠2 . . . 𝑠𝑚
(𝒄𝑩 ) 𝑩 b(=𝒙𝑩 )

𝑐𝐵1 𝑠1 𝑥𝐵1 = 𝑏1 𝑎11 𝑎12 . . . 𝑎1𝑛 1 0 ... 0

𝑐𝐵2 𝑠2 𝑥𝐵2 = 𝑏2 𝑎21 𝑎22 . . . 𝑎2𝑛 0 1 ... 0

. . . . . . . . .
. . . . . . . . .
. . . . . . . . .
𝑐𝐵𝑚 𝑠𝑚 𝑥𝐵𝑚 = 𝑏𝑚 𝑎𝑚1 𝑎𝑚2 ... 𝑎𝑚𝑛 0 0 ... 1

𝑍 = ∑ 𝑐𝐵𝑖 𝑥𝐵𝑖 𝑍𝑗 = ∑ 𝑐𝐵𝑖 𝑎𝑖𝑗 0 0 ... 0 0 0 ... 0

𝑖 𝑖

𝑐𝑗 – 𝑧𝑗 𝑐1 – 𝑧1 𝑐2 – 𝑧2 . . . 𝑐𝑛 – 𝑧𝑛 0 0 ... 0

𝑐𝑘

Step 3: Test for optimality Calculate the 𝑐𝑗 – 𝑧𝑗 value for all non-basic
variables. To obtain the value of 𝑧𝑗 multiply each element under ‘Variables’
column (columns, 𝑎𝑗 of the coefficient matrix) with the corresponding elements
in 𝐶𝐵 - column. Examine values of 𝑐𝑗 – 𝑧𝑗 . The following three cases may arise:

(i) If all 𝑐𝑗 – 𝑧𝑗 ≤ 0, then the basic feasible solution is optimal.

(ii) If at least one column of the coefficients matrix (i.e. 𝑎𝑘 ) for which
𝑐𝑘 – 𝑧𝑘 > 0 and all other elements are negative (i.e. 𝑎𝑖𝑘 < 0), then there
exists an unbounded solution to the given problem.
(iii) If at least one 𝑐𝑗 – 𝑧𝑗 > 0, and each of these columns have at least one positive
element (i.e. 𝑎𝑖𝑗 ) for some row, then this indicates that an improvement in the
value of objective function 𝑍 is possible.
 Step 4: Select the variable to enter the basis If case (iii) of Step 3 holds, then select a
variable that has the largest 𝑐𝑗 – 𝑧𝑗 value to enter into the new solution. That is,

𝑐𝑘 – 𝑧𝑘 = 𝑀𝑎𝑥 {(𝑐𝑗 – 𝑧𝑗 ); 𝑐𝑗 – 𝑧𝑗 > 0}

The column to be entered is called the key or pivot column. Obviously, such a variable
indicates the largest per unit improvement in the current solution.

Step 5: Test for feasibility (variable to leave the basis) Each number in 𝑥𝐵 -
column (i.e. 𝑏𝑖 values) is divided by the corresponding (but positive) number
in the key column and the row is selected for which this ratio is non-negative
and minimum. This ratio is called the replacement (exchange) ratio.

𝑥𝐵𝑟 𝑥𝐵𝑟
= 𝑀𝑖𝑛 { : 𝑎𝑟𝑗 > 0 }
𝑎𝑟𝑗 𝑎𝑟𝑗
It may be noted that the division by a negative or by a zero element in key
column is not permitted.

The row selected in this manner is called the key or pivot row and it represents the
variable whichwill leave the solution. The element that lies at the intersection of the
key row and key column of the simplex table is called key or pivot element.
Step 6: Finding the new solution by setting the pivot element ‘1’ and the remaining
elements in the pivot column ‘0’.

Step 7: Repeat the procedure Go to Step 3 and repeat the procedure until all
entries in the 𝑐𝑗 – 𝑧𝑗 row are either negative or zero.

Problems

1. Use the simplex method to solve the following LP problem.

Maximize 𝑍 = 3𝑥1 + 5𝑥2 + 4𝑥3 subject to the constraints
(i) 2𝑥1 + 3𝑥2 ≤ 8, (ii) 2𝑥2 + 5𝑥3 ≤ 10, (iii) 3𝑥1 + 2𝑥2 + 4𝑥3 ≤ 15 and
𝑥1, 𝑥2, 𝑥3 ≥ 0.

2. A company makes two kinds of leather belts, belt 𝐴 and belt 𝐵. Belt 𝐴 is a high quality
belt and belt 𝐵 is of lower quality. The respective profits are 𝑅𝑠 4 and 𝑅𝑠 3 per belt.
The production of each of type 𝐴 requires twice as much time as a belt of type 𝐵, and if all
belts were of type 𝐵, the company could make 1,000 belts per day. The supply of leather
is sufficient for only 800 belts per day (both 𝐴 and𝐵 combined). Belt 𝐴 requires a fancy
buckle and only 400 of these are available per day. There are only 700 buckles a day
available for belt 𝐵.
What should be the daily production of each type of belt? Formulate this problem as
an LP model and solve it using the simplex method.
3. A pharmaceutical company has 100 𝑘𝑔 of 𝐴 , 180 𝑘𝑔 of 𝐵 and 120 𝑘𝑔 of 𝐶 ingredients
available per month. The company can use these materials to make three basic
pharmaceutical products namely 5 − 10 − 5, 5 − 5 − 10 and 20 − 5 − 10 , where the
numbers in each case represent the percentage of weight of 𝐴, 𝐵 and 𝐶, respectively, in
each of the products. The cost of these raw materials is as follows:
 Ingredients Cost per 𝑘𝑔
(𝑅𝑠)
𝐴 80
𝐵 20
𝐶 50
Inert ingredients 20

The selling prices of these products are 𝑅𝑠 40.5, 𝑅𝑠 43 and 𝑅𝑠 45 per , respectively.
There is a capacity restriction of the company for the product 5 − 10 − 5, because of which
the company cannot produce more than 30 𝑘𝑔 per month. Determine how much of each of
the products the company should produce in order to maximize itsmonthly profit.