SIMPLEX METHOD

Simplex Method

 Most real-world linear programming problems

have more than two variables and are thus too
large for a graphical solution procedure. A
procedure called the simplex method may be
used to find the optimal solution instead. The
simplex method is actually an algorithm (or a et
of instructions) which examines corner points in a
methodical fashion until the best solution—higher
profit or lowest cost—is found. Computer
programs have been. written to solve LP
problems with as many as several thousand
variables, but it is still useful to understand the
mechanics of the algorithm.
CONVERTING THE CONSTRAINTS TO
EQUATIONS

 The first step of the simplex method requires that

we convert each inequality constraint in an LP
formulation into an equation. Less-than or equal-
to constraints (≤) can be converted to equations
by adding slack variables, as illustrated in
Example 10.1
EXAMPLE 10.1
 The Flair Furniture Company’s product mix problem was
formulated using linear programming, in Unit 9, as follows:
 Maximize profit = 7X1 + 5X2
subject to: 2X1 + 1X2 ≤ 10
4X1 + 3X2 ≤ 24

 To convert these inequality constraints to equalities, we

add slack variables S1 and S2 to the left side of the
inequality.
 The first constraint becomes
2X1 +1X2 + S1 = 10
and the second becomes
4X1 +3X2 + S2 = 24
 To include all variables in each equation (a requirement of
the next simplex step), slack variables not appearing in
each equation are added with a coefficient of zero. The
equations then appear as:
2X1 + 1X2 + 1S1 + 0S2 = 10
4X1 + 3X2 + 0S1 + 1S2 = 24

Since slack variables represent unused resources (such as

time on a machine or man-hours available), they yield no
profit but must be added to the objective function with zero
profit coefficients. Thus, the objective function becomes:

maximize profit = 7X1 + 5X2 + 0S1 + 0S2

SETTING UP THE FIRST SIMPLEX
TABLEAU
 To simplify handling the equations and objective
function in an LP problem, we place all the
coefficients into a tabular form. The two
constraint equations of Example 10.1 could be
expressed as:
Solution Quantity
X1 X2 S1 S2
Mix (RHS)

S1 10 2 1 1 0

S2 24 4 3 0 1
o The constants on the right-hand side (RHS) of the equality
have been moved to the left of the table for convenience.
The numbers (2,1,1,0) and (4,3,0,1) represent the
coefficients of the first equation and second equation,
respectively.

o As in the graphical approach of Unit 9, we begin the initial

solution procedure at the origin, where X1 = 0, X2 = 0, and
profit = $0. The values of the two other variables must
then be nonzero. Since 2X1 + 1X2 + 1S1 = 10, we see that
S1 = 10. Likewise,S2 = 24. These two slack variables
comprise the initial solution mix—as a matter of fact, their
values are found in the quantity column next to each
variable. Since X1 and X2 are not in the solution mix, their
initial values are automatically equal to zero.
 In many management science and operations research
books, this initial solution is termed a basic feasible
solution and is described in vector, or column, form as

X1 0

X2 0
=
S1 10

S2 24
 o Variables in the solution mix, often called the basis in LP
terminology, are referred to as basic variables. In this
example, the basic variables are S1 and S2 . Variables not in
the solution mix or basis (X1 and X2 in this case) are called
nonbasic variables. Of course, if the optimal solution to this
LP problem turned out to be X1= 3, X2= 4, S1= 0, and S2=
0, or
X1 3

X2 4
=
S1 0

S2 0

Then X1 and X2 would be the final basic variables, while S1

and S2 would be the nonbasic variables.
EXAMPLE 10.2

 Let us complete the initial simplex tableau for the example

above.

Cj $7 $5 $0 $0
Solution Quantity
Mix (RHS) X1 X2 S1 S2

$0 S1 10 2 1 1 0

$0 S2 24 4 3 0 1

Zj $0 $0 $0 $0 $0

Cj - Z j (total profit) $7 $5 $0 $0
The terms and rows which you have not seen before are
described below.

Cj: profit contribution per unit of each variable. C j applies to

both the top row and first column. In the row it indicates the
unit profit for all variables given in the LP objective function.
In the column, Cj indicates the unit profit for each variable
currently in the solution mix.

Zj: In the quantity column, Zj provides the total contribution

(gross profit in this case) of the given solution. In the other
columns (under the variables) it represents the gross profit
given up by adding one unit of this variable into the current
solution. The Zj value for each column is found by multiplying
the Cj of the row by the number in that row and j th column,
and summing.
o The calculations for the Z in the table are as follows:
 Zj (for total profit) = ($0)(l0) + ($0)(24) = $0
 Zj (for column X1) = ($0)(2) + ($0)(4) = $0
 Zj (for column X2) = ($0)(l) + ($0)(3) = $0
 Zj (for column S1( = ($0)(l) + ($0)(0) = $0
 Zj (for column S2) = ($0)(0) +($0)(l) = $0

o Cj - Zj: This number represents the net profit (that is, the
profit gained minus the profit given up), which will result
from introducing one unit of each product (variable) into
the solution. It is not calculated for the quantity column. To
compute these numbers, simply subtract the total from the
Cj value at the very top of each variable’s column.
 The calculations for the net profit per unit (Cj - Zj) row in
this example are:
Column

X1 X2 S1 S2
Cj for column: $7 $5 $0 $0

Zj for column: $0 $0 $0 $0

Cj – Zj for column $7 $5 $0 $0
 It was obvious to us when we computed a profit of $0 that
this initial solution was not optimal. By examining numbers
in the Cj - Zj row of the table in Example 10.2, we see that
total profit can be increased by $7 for each unit of X1
(tables) and by $5 for each unit of X2 (chairs) added to the
solution mix. A negative number in the Cj - Zj row would tell
us that profits would decrease if the corresponding variable
were added to the solution mix. An optimal solution is
reached in the simplex method when the Cj - Zj row
contains no positive numbers. Such is not the case in our
initial tableau.
SIMPLEX SOLUTION PROCEDURES

Once an initial tableau has been completed, we proceed

through a series of five steps to compute all the numbers
needed in the next tableau. The calculations are not
difficult, but they are complex enough that the smallest
arithmetic error can produce a very wrong answer.

 We shall first list the five steps and then apply them in
determining the second and third tableaus for the data in
Example 10.2
 Step 1: Determine which variable to enter into the solution
mix next. This is done by identifying the column (and hence,
variable) with the largest positive number in the C j - Zj row of
the previous tableau. This means that we will now be
producing some of the product contributing the greatest
additional profit/unit.

 Step 2: Determine which variable to replace. Since we have

just chosen anew variable to enter the solution mix, we must
decide which variable currently in the solution will have to
leave to make room for it. Step 2 is accomplished by dividing
each amount in the quantity column by the corresponding
number in the column selected in step1. The row with the
smallest nonnegative number calculated in this fashion will
be replaced in the next tableau. (This smallest number, by
the way, gives the maximum number of units of the variable
which may be placed in the solution.) This row is often
referred to as the pivot row, and the column identified in step
1 called the pivot column. The number at the intersection of
the pivot row and column is referred to as the pivot number.
  Step 3: Compute new values for the pivot row. To do this,
we simply divide every number in the row by the pivot
number.
 Step 4: Compute new values for each remaining row. (In
our sample problems there have been only two rows in the
LP tableau, but most larger problems have many more
rows.) All remaining row(s) are calculated as follows:

number above or
(new row numbers) = (numbers in old row) below pivot
X
number

corresponding number in
the new row, i.e., the
row replaced in step 3

Step5: Compute the and Cj - Zj rows, as previously
demonstrated in the initial tableau. If all numbers in the
Cj - Zj row are zero or negative, an optimal solution has
been reached, If this is not the case, return to step 1.

All these computations are best illustrated by way of an

example, and best understood by way of several practice
problems.
EXAMPLE 10.3

 The initial simplex tableau completed in the table in

Example 10.2 is repeated below. We shall follow the five
steps just given until an optimal solution to the LP problem
is reached.
Cj $7 $5 $0 $0
Solution Quantity
Mix (RHS) X1 X2 S1 S2

Pivot
$0 S1 10 2 1 1 0 row
$0 S2 24 4 3 0 1
Pivot number

Zj $0 $0 $0 $0 $0

Cj - Z j $7 $5 $0 $0
Pivot column
 Step 1: Variable X will enter the solution next because it has
the highest contribution to profit value, Cj - Zj: Its column
becomes the pivot column (identified with an arrow).

 Step 2: Each number in the quantity column is divided by

the corresponding number in the X1 column: 10/2 = 5 for
the first row and 24/4 = 6 for the second row. The smaller
of these, 5, identifies the pivot row, the pivot number, and
the variable to be replaced. The pivot row is identified above
by an arrow and the pivot number is circled. Variable X1
replaces variable S1 in the solution mix column, as seen in
the second tableau.

 Step 3: The pivot row is replaced by dividing every number

in it by the pivot number (10/2 = 5, 2/2 = 1, 1/2 = 1/2, 1/2
= 1/2, 0/2 = 0). This new version of the entire pivot row
appears below.
 Cj Solution Mix Quantity X1 X2 S1 S2

.
$7 X1 5 1 1/2 1/2 0

Step 4: The new values for the S2 row are calculated.

(number in (number in (number below (corresponding number

new S2 row) = old S2 row)
- pivot number) X In the new X1 row)

4 = 24 - 4 X 5
- X 1
0 = 4 4
- X 1/2
1 = 3 4
-2 = 0 - 4 X 1/2

1 = 1 - 4 X 0
 Cj Solution Mix Quantity X1 X2 S1 S2

$7 X1 5 1 1/2 1/2 0
$0 S2 4 0 0 -2 1

 Step 5: The Zj and Cj - Zj rows are calculated.

Zj (for total profit) = ($7)(5) + ($0)(4) = $35
Zj (for X1 column) = ($7)(1) + ($0)(0) = $7
Cj – Zj = $7- $7 $0
Zj (for X2 column) = ($7)(1/2) + ($0)(1) = $7/2
Cj - Zj = $5 - $7/2 = $3/2
Zj (for S1 column) = ($7)(1/2) + ($0)(-2) = $7/2
Cj - Zj = $0 - $7/2 = -$7/2
Zj (for S2 column) = ($7)(0) + ($0)(1) = $0
Cj - Zj = $0 - $0 = $0
 2nd tableau

Cj $7 $5 $0 $0
Solution Quantity
Mix X1 X2 S1 S2

$7 X1 5 1 1/2 1/2 0 Pivot

row
$0 S2 4 0 1 -2 1
Pivot number

Zj $35 $7 $7/2 $7/2 $0

total profit
Cj - Zj $0 $3/2 -$7/2 $0

Pivot column
 Since not all numbers in the Cj – Zj row of this latest tableau
are zero or negative, the above solution (that is, X 1 = 5, S2 =
4, X2 = 0, S1 = 0, profit = $35) is not optimal arid we
proceed to a third tableau and repeat the five steps.

 Step 1: Variable X2 will enter the solution next by virtue of

the fact that its Cj - Zj = 3/2 is the largest (and only) positive
number in the row. This means that for every unit of X 2 that
we start to produce, the objective function will increase in
value by $3/2, or $1.50.

 Step 2: The pivot row becomes the S2 row because the ratio
4/1 = 4 is smaller than the ratio 5/(1/2) = 10.

 Step 3: The pivot row is replaced by dividing every number

in it by the (circled) pivot number. Since every number is
divided by 1, there is no change.
 Step 4: The new values for the X row are computed:

(number in (number in (number above (corresponding number

new X1 row) = old X1 row)
- pivot number) X In the new X2 row)

3 = 5 - 1/2 X 4
- X 0
1 = 1 1/2
- X 1
0 = 1/2 1/2
3/2 = 1/2 - 1/2 X -2

-1/2 = 0 - 1/2 X 1
 Step 5: The Z and Cj - Zj rows are calculated.

Zj (for total profit) = ($7)(3) + ($5)(4) = $41

Zj (for X1 column) = ($7)(1) + ($5)(0) = $7

Zj (for X2 column) = ($7)(0) + ($5)(1) = $5

Zj (for S1 column) = ($7)(3/2) + ($5)(-2) = $1/2

Zj (for S2 column) = ($7)(-1/2) + ($5)(1) = $3/2

 3rd tableau

Cj $7 $5 $0 $0
Solution Quantity
Mix X1 X2 S1 S2

$7 X1 3 1 0 3/2 -1/2

$5 X2 4 0 1 -2 1

Zj $41 $7 $5 $1/2 $3/2

Cj - Zj $0 $0 -$1/2 -$3/2
 Since every number in the third tableau’s Cj - Zj row is zero
or negative, an optimal solution has been reached. That
solution is: X1 = 3 (tables), and X2 = 4 (chairs),S1 = 0
(slack in 1st resource), S2 = 0 (slack in 2nd resource), and
profit = $41.

 It is interesting to compare the step-by-step solutions

found in each simplex tableau above with the graphical
corner-point solutions that we found in the last unit.
SUMMARY OF SIMPLEX STEPS FOR
MAXIMIZATION PROBLEMS
 The steps involved in using the simplex method to help
solve an LP problem in which the objective function is to
be maximized can be summarized as:

1. Choose the variable with the greatest positive Cj - Zj to

enter the solution.
2. Determine the row to be replaced by selecting the one
with the smallest (nonnegative) quantity to pivot column
ratio.
3. Calculate the new values for the pivot row.
4. Calculate the new values for the other row(s).
5. Calculate the Cj and Cj - Zj values for this tableau. If there
are any Cj - Zj greater than zero, return to step 1.
ARTIFICIAL AND SURPLUS VARIABLES

 Constraints in linear programming problems are

seldom all of the “less-than-or-equal-to” (≤)
variety seen in the examples thus far in this unit.
Just as common are “greater-than-or-equal-to”
(≥) constraints and equalities. To use the simplex
method, each of these must be converted to a
special form also. If they are not, the simplex
technique is unable to set an initial feasible
solution in the first tableau.
EXAMPLE 10.4
o The following constraints were formulated for an LP
problem for the Baby Doll Company. We shall
convert each for use in the simplex algorithm.

Constraint 1: 25X1 + 30X2 = 900

To convert an equality, we simply add an “artificial”
variable (A1) to the equation:
25X1 +30X2 +A1 = 900

An artificial variable is a variable that has no

physical meaning in terms of a real-world LP
problem. It simply allows us to create a basic
feasible solution to start the simplex algorithm. An
artificial variable may not appear in the final
solution to the problem.
 Constraint 2: 5X1 + 13X2 + 8X3 ≥ 2,100

 To handle ≥ constraints, a “surplus” variable (S 1) is

first subtracted and then an artificial variable (A 2) is
added to form a new equation:

5X1 + 13X2 + 8X3 - S1 + A2 = 2,100

 A surplus variable does have a physical meaning—

that being the amount over and above a required
minimum level set on the right-hand side of a
greater-than-or-equal-to constraint.
 Whenever an artificial or surplus variable is added
to one of the constraints, it must also be included
in the other equations and in the problem’s
objective function, just as was done for slack
variables. Each artificial variable is assigned an
extremely high cost to ensure that it does not
appear in he final solution. Rather than set an
actual dollar figure of $10,000 or $1,000,000,
however, we simply use the symbol SM to
represent a very large number. Surplus variables,
like slack variables, carry a zero cost.
EXAMPLE 10.5
 The Muddy River Chemical Corp. must produce 1000 lb of a
special mixture of phosphate and potassium for a
customer. Phosphate costs $5/lb and potassium costs
$6/lb. No more than 300 lb of phosphate can be used and
at least 150 lb of potassium must be used.

 We wish to formulate this as a linear programming problem

and to convert the constraints and objective function into
the form needed for the simplex algorithm.

Let
X1 number of pounds of phosphate in the mixture
X2= number of pounds of potassium in the mixture
  Objective function: minimize cost = $5X1 + $6X2
 Objective function in simplex form:
minimize costs = $5X1+ $6X2+ $0S1+ $0S2+ $MA1+$MA2

Regular form Simplex form

1st constraint: 1X1 + 1X2 = 1,000 (lb) 1X1 + 1X2 +1A1 = 1,000

2nd constraint: 1X1 ≤ 300 (lb) 1X1 +1S1 = 300

3rd constraint: 1X2 ≥ 150(lb) 1X2 -1S2 +1A2 = 150

SOLVING MINIMIZATION PROBLEMS
 Now that we have illustrated a few examples of LP
problems with the three different types of constraints, we
are ready to solve a minimization problem using the
simplex algorithm. Minimization problems are quite similar
to the maximization problems tackled earlier in this unit.
The one significant difference involves the row. Since our
objective is now to minimize costs, the new variable to
enter the solution in each tableau (the pivot column) will be
the one with the largest negative number in the Cj-Zj row.
Thus, we will be choosing the variable that decreases costs
the most. In minimization problems, an optimal solution is
reached when all numbers in the Cj-Zj row are zero or
positive—just the opposite from the maximization case.
 All other simplex steps, as seen below, remain the same.
1. Choose the variable with the largest negative Cj-Zj to
enter the solution.

2. Determine the row to be replaced by selecting the one

with the smallest (nonnegative) quantity to pivot column
ratio.

3. Calculate new values for the pivot row.

4. Calculate new values for the other rows.

5. Calculate the Cj-Zj values for this tableau. If there are

any Cj-Zj numbers less than zero, return to step1.
EXAMPLE 10.6
o Let us begin to solve Muddy River Chemical’s LP
formulation of Example 10.5 using the simplex
algorithm. The initial tableau is set up just as in
earlier examples. We note the presence of the $M
costs associated with artificial variables A1 and A2
but treat them as if they were any large number.
They have the effect of forcing the artificial
variables out of the solution quickly because of
their large costs.
Cj $5 $6 $0 $0 $M $M
Solution Quantity
Mix X1 X2 S1 S2 A1 A2

$M A1 1,000 1 1 0 0 1 0

$0 S1 300 1 0 1 0 0 0

$M A2 150 0 1 0 -1 0 1
 As you recall, the numbers in the row are computed by
multiplying the C column on the far left of the tableau
times the corresponding numbers in each other column

 Zj (for total cost) = ($M)(1,000) + ($0)(300)

+ ($M)(l50) = $1 ,150M

 Zj (for X1 column) = ($M)(1) + ($0)(1)

+ ($M)(0) = $M
Cj-Z = $5 – M = -$M + 5
j

Zj (for X2 column) = ($M)(1) + ($0)(0)

+ ($M)(1) = $2M
Cj-Z = $6 – 2M = -$2M + 6
j
Zj (for S1 column) = ($M)(0) + ($0)(1)
+ ($M)(0) = $0
Cj-Zj = $0 – 0 = $0

Zj (for S2 column) = ($M)(0) + ($0)(0)

+ ($M)(-1) = -$M
Cj-Zj = $0 – M = -$M

Zj (for A1 column) = ($M)(1) + ($0)(0)

+ ($M)(0) = $M
Cj-Zj = $M – M = $0
Zj (for A2 column) = ($M)(0)+ ($0)(0) + ($M)(1) = $M
Cj-Zj = $M – M = $0

Cj $5 $6 $0 $0 $M $M
Solution Quantity
Mix X1 X2 S1 S2 A1 A2

$M A1 1,000 1 1 0 0 1 0

$0 S1 300 1 0 1 0 0 0

$M A2 150 0 1 0 -1 0 1

Zj
$1,150 M $M $2M $0 -$M $M $M
(total cost)
Cj - Zj
-$M + 5 - $2M + 6 $0 -$M $0 $0
 Variable X2 will enter the solution next because it has the
largest negative Cj-Zj entry. Variable A2 will be removed
from the solution because the ratio 150/1 is smaller than
the ratios of the quantity column numbers to the
corresponding X2 column numbers in the other two rows.
That is, 150/1 (the third or A2 row) is less than 1,000/1
(the first row) and less than 300/0 (the second row). This
latter ratio, by the way, involving division by zero, is
considered an undefined number—or one that is infinitely
large—and hence we may ignore it.

 The numbers in the pivot row do not change, in this case,

because they are each divided by the (circled) pivot
number, that is, 1. The other rows are altered as fol1ows:
A1 Row S1 Row

850 = 1,000 - (1)(150) 300 = 300 - (0)(150)

1 = 1 - (1)(0) 1 = 1 - (0)(0)
0 = 1 - (1)(1) 0 = 0 - (0)(1)
0 = 0 - (1)(0) 1 = 1 - (0)(0)
1 = 0 - (1)(-1) 0 = 0 - (0)(-1)
1 = 1 - (1)(0) 0 = 0 - (0)(0)
-1 = 0 - (1)(1) 0 = 0 - (0)(1)
 2ND TABLEAU

Cj $5 $6 $0 $0 $M $M
Solution Quantity
Mix X1 X2 S1 S2 A1 A2

$M A1 850 1 0 0 1 1 -1

$0 S1 300 1 0 1 0 0 0

$6 X2 150 0 1 0 -1 0 1

Zj
$850M + 900$M $6 $0 $M-6 $M -$M+6

Cj - Zj
-$M + 5 $0 $0 -$M+6 $0 $2M-6