Business Statistics & OR -I

Unit IV
Introduction to OR and LPP, Simplex Method

Introduction to Operations Research

Definitions:

(i) It is the application of scientific methods, techniques and tools to problems involving the
operations of a system so as to provide those in the control of the system with optimum
solutions to the problems.

(ii) Operation Research is a tool for taking decisions which searches for the optimum results
in parity with the overall objectives and constraints of the organization.

(iii) O.R. is a scientific approach to problem solving for management.

(iv) O.R. is an aid for executive in making his decisions by providing him with the needed
quantitative information’s based on the scientific method of analysis.
Scope of Operations Research

1.Optimum use of production factors:

Linear programming techniques helped to manage most effectively the
productions by selecting and distributing these elements.

2.Improved quality of decision:

The computation table gives a clear picture of the basic restrictions and the
possibilities of the elements involved in the problem. The changes of the
profit in the production will be clearly indicated in the table, e.g., simplex
table.

3.Preparation of future managers:

These methods are used in improving the knowledge and skill of young
managers.

4.Modification of mathematical solution:

Operations Research presents a possible practical solution. But it is
always our responsibility to accept or modify the solution before its
use. The modifications are done from the computational steps and
tables.

5.Alternative solutions:
Operations Research techniques will suggest all the alternative
solutions available for the same profit, so we may decide on the basis
of its strategies.
Limitations of Operations Research

Operations Research has certain limitations. The limitations are mostly

related to the time and money factors involved in its applications rather
than its practical utility.

a) Magnitude of computation.

Operations Research tries to find out the optimal solution taking all the
factors into account. Expressing the factors in quantity and establishing
relationship among them, requires huge calculations.

b) Absence of quantification.
Operations Research provides solution only when all the elements
related to a problem can be quantified. The factors such as price,
product, etc., can be expressed in terms of quantity, but factors such as
human relations etc, cannot be quantified.
c) Distance between managers and Operations Research.
Operations Research, being specialist’s job, requires a
mathematician or a statistician, who might not be aware of
the business problems.

Similarly, a manager may fail to understand the complex

working of Operations Research. Thus, there is a gap between
one who provides the solution and one who uses the solution.

The various phases in operations research:

Operation Research study is conducted in below
steps.

1. Formulate Problem
2. Develop OR model
3. Select Best method to solve OR model
4. Validate OR Model
5. Decision making and implement OR model
Linear programming problem
Formulation of LPP
Feasible solution and optimal solution
The variables that appear in the objective function are called decision
variables.

There may be several solutions to the set of variables(𝑥1 , 𝑥2 , … . . , 𝑥𝑛 )

that satisfy the constraints.

These values of the decision variables which satisfy the constraints are
called feasible solutions.

Among all these solutions, a solution which optimizes the objective

function is called optimal solution.
 M1(x) M2(y)
grinding 4 2
polishing 2 5
2) A small manufacturer employs 5 skilled men and 10 semi-skilled men and makes an article in
two qualities, a deluxe model and an ordinary model. The making of a deluxe model requires 2
hours work by a skilled man and 2 hours work by a semi-skilled man. The making of an ordinary
model requires 1 hour work by a skilled man and 3 hours work by a semi-skilled man. Also no
man can work more than 8 hours per day. The manufacturer’s profit of the deluxe model is Rs.
10 and of the ordinary model is Rs.8. Formulate Linear programming model.

Deluxe model(x) Ordinary model (y)

Skilled men 2 1
Semiskilled men 2 3
Rs.10 Rs.8

The manufacturer’s profit of the deluxe model is Rs. 10 and of the

ordinary model is Rs.8.
Max Z= 10x+8y

Subject to constraints 2x+y <= (8)(5)= 40

2x+3y <=(8)(10)=80, x, y>=0
3) A factory manufactures two products A and B. To manufacture one unit of A, 1.5 machine hours
and 2.5 labour hours are required. To manufacture product B, 2.5 machine hours and 1.5 labour
hours are required. In a month, 300 machine hours and 240 labour hours are available. Profit per
unit for A is Rs. 50 and for B is Rs. 40. Formulate as LPP.
Solution:
Machine Hours Labour Hours
A 1.5 2.5 Rs.50

B 2.5 1.5
Rs.40
300 240

2) Vitamins B1 and B2 are found in two foods F1 and F2. 1 unit of F1 contains 3 units of B1 and 4
units of B2. 1 unit of F2 contains 5 units of B1 and 3 units of B2 respectively. Minimum daily
prescribed consumption of B1 & B2 is 50 and 60 units respectively. Cost per unit of F1 & F2 is Rs. 6 &
Rs. 3 respectively. Formulate as LPP.
Solution
Graphical Method

2)
3)
4)
Exercise:

Unit IV
SIMPLEX METHOD
 R2(new)=R2(old) - R1(new) 12 0 1.4 -0.2 1

Iteration-2 Cj 10 6 0 0

B CB XB x1 x2 S1 S2 MinRatio

x1 10 6 1 0.6 0.2 0

S2 0 12 0 1.4 -0.2 1

Z=60 Zj 10 6 2 0

Zj-Cj 0 0 2 0

Since all Zj-Cj≥0

Hence, optimal solution is arrived with value of variables as :

x1=6,x2=0

Max Z=60
2. MAX Z = 10500x1 + 9000x2
subject to
x1 + x2 <= 50
20x1 + 10x2 <= 800
2x1 + x2 <= 80
and x1,x2 >= 0
The problem is converted to canonical form by adding slack, surplus and artificial variables as appropiate

1. As the constraint-1 is of type '≤' we should add slack variable S1

2. As the constraint-2 is of type '≤' we should add slack variable S2

3. As the constraint-3 is of type '≤' we should add slack variable S3

After introducing slack variables

Max Z = 10500 x1 + 9000 x2 + 0 S1 + 0 S2 + 0 S3

subject to

x1 + x2 + S1 = 50

20 x1 + 10 x2 + S2 = 800

2 x1 + x2 + S3 = 80

and x1,x2,S1,S2,S3≥0

Iteration-1 Cj 10500 9000 0 0 0

MinRatio
B CB XB x1 x2 S1 S2 S3
XB/x1

S1 0 50 1 1 1 0 0 50/1=50

S2 0 800 20 10 0 1 0 800/20=40

S3 0 80 (2) 1 0 0 1 80/2=40→

Z=0 Zj 0 0 0 0 0

Zj-Cj -10500↑ -9000 0 0 0

Negative minimum Zj-Cj is -10500 and its column index is 1. So, the entering variable is x1.

Minimum ratio is 40 and its row index is 3. So, the leaving basis variable is S3.

∴ The pivot element is 2.

Entering =x1, Departing =S3, Key Element =2

R3(new)=R3(old)÷2

R3(old) = 80 2 1 0 0 1

R3(new)=R3(old)÷2 40 1 0.5 0 0 0.5

R1(new)=R1(old) - R3(new)

R1(old) = 50 1 1 1 0 0
 R3(new) = 40 1 0.5 0 0 0.5

R1(new)=R1(old) - R3(new) 10 0 0.5 1 0 -0.5

R2(new)=R2(old) - 20R3(new)

R2(old) = 800 20 10 0 1 0

R3(new) = 40 1 0.5 0 0 0.5

20×R3(new) = 800 20 10 0 0 10

R2(new)=R2(old) - 20R3(new) 0 0 0 0 1 -10

Iteration-2 Cj 10500 9000 0 0 0

MinRatio
B CB XB x1 x2 S1 S2 S3
XB/x2

S1 0 10 0 (0.5) 1 0 -0.5 100/5=20→

S2 0 0 0 0 0 1 -10 ---

x1 10500 40 1 0.5 0 0 0.5 400/5=80

Z=420000 Zj 10500 5250 0 0 5250

Zj-Cj 0 -3750↑ 0 0 5250

Negative minimum Zj-Cj is -3750 and its column index is 2. So, the entering variable is x2.

Minimum ratio is 20 and its row index is 1. So, the leaving basis variable is S1.

∴ The pivot element is 0.5.

Entering =x2, Departing =S1, Key Element =0.5

R1(new)=R1(old)÷0.5

R1(old) = 10 0 0.5 1 0 -0.5

R1(new)=R1(old)÷0.5 20 0 1 2 0 -1

R2(new)=R2(old)

R2(old) = 0 0 0 0 1 -10

R2(new)=R2(old) 0 0 0 0 1 -10

R3(new)=R3(old) - 0.5R1(new)

R3(old) = 40 1 0.5 0 0 0.5

R1(new) = 20 0 1 2 0 -1

0.5×R1(new) = 10 0 0.5 1 0 -0.5

R3(new)=R3(old) - 0.5R1(new) 30 1 0 -1 0 1

Iteration-3 Cj 10500 9000 0 0 0

B CB XB x1 x2 S1 S2 S3 MinRatio

x2 9000 20 0 1 2 0 -1

S2 0 0 0 0 0 1 -10

x1 10500 30 1 0 -1 0 1

Z=495000 Zj 10500 9000 7500 0 1500

Zj-Cj 0 0 7500 0 1500

Since all Zj-Cj≥0

Hence, optimal solution is arrived with value of variables as :

x1=30,x2=20

Max Z=495000
3. MAX Z = 8000x1 + 12000x2
subject to
9x1 + 12x2 <= 180
3x1 + 4x2 <= 60
x1 + 3x2 <= 30
and x1,x2 >= 0
The problem is converted to canonical form by adding slack, surplus and artificial variables as appropiate

1. As the constraint-1 is of type '≤' we should add slack variable S1

2. As the constraint-2 is of type '≤' we should add slack variable S2

3. As the constraint-3 is of type '≤' we should add slack variable S3

After introducing slack variables

Max Z = 8000 x1 + 12000 x2 + 0 S1 + 0 S2 + 0 S3

subject to

9 x1 + 12 x2 + S1 = 180

3 x1 + 4 x2 + S2 = 60

x1 + 3 x2 + S3 = 30

and x1,x2,S1,S2,S3≥0

Iteration-1 Cj 8000 12000 0 0 0

MinRatio
B CB XB x1 x2 S1 S2 S3
XB/x2

S1 0 180 9 12 1 0 0 180/12=15

S2 0 60 3 4 0 1 0 60/4=15

S3 0 30 1 (3) 0 0 1 30/3=10→

Z=0 Zj 0 0 0 0 0

Zj-Cj -8000 -12000↑ 0 0 0

Negative minimum Zj-Cj is -12000 and its column index is 2. So, the entering variable is x2.

Minimum ratio is 10 and its row index is 3. So, the leaving basis variable is S3.

∴ The pivot element is 3.

Entering =x2, Departing =S3, Key Element =3

R3(new)=R3(old)÷3

R3(old) = 30 1 3 0 0 1

R3(new)=R3(old)÷3 10 0.3333 1 0 0 0.3333

R1(new)=R1(old) - 12R3(new)

R1(old) = 180 9 12 1 0 0

R3(new) = 10 0.3333 1 0 0 0.3333

12×R3(new) = 120 4 12 0 0 4

R1(new)=R1(old) - 12R3(new) 60 5 0 1 0 -4

R2(new)=R2(old) - 4R3(new)

R2(old) = 60 3 4 0 1 0

R3(new) = 10 0.3333 1 0 0 0.3333

 4×R3(new) = 40 1.3333 4 0 0 1.3333

R2(new)=R2(old) - 4R3(new) 20 1.6667 0 0 1 -1.3333

Iteration-2 Cj 8000 12000 0 0 0

MinRatio
B CB XB x1 x2 S1 S2 S3
XB/x1

S1 0 60 5 0 1 0 -4 60/5=12

S2 0 20 (1.6667) 0 0 1 -1.3333 20/1.6667=12→

x2 12000 10 0.3333 1 0 0 0.3333 100/.3333=30

Z=120000 Zj 4000 12000 0 0 4000

Zj-Cj -4000↑ 0 0 0 4000

Negative minimum Zj-Cj is -4000 and its column index is 1. So, the entering variable is x1.

Minimum ratio is 12 and its row index is 2. So, the leaving basis variable is S2.

∴ The pivot element is 1.6667.

Entering =x1, Departing =S2, Key Element =1.6667

R2(new)=R2(old)÷1.6667

R2(old) = 20 1.6667 0 0 1 -1.3333

R2(new)=R2(old)÷1.6667 12 1 0 0 0.6 -0.8

R1(new)=R1(old) - 5R2(new)

R1(old) = 60 5 0 1 0 -4

R2(new) = 12 1 0 0 0.6 -0.8

5×R2(new) = 60 5 0 0 3 -4

R1(new)=R1(old) - 5R2(new) 0 0 0 1 -3 0

R3(new)=R3(old) - 0.3333R2(new)

R3(old) = 10 0.3333 1 0 0 0.3333

R2(new) = 12 1 0 0 0.6 -0.8

0.3333×R2(new) = 4 0.3333 0 0 0.2 -0.2667

R3(new)=R3(old) - 0.3333R2(new) 6 0 1 0 -0.2 0.6

Iteration-3 Cj 8000 12000 0 0 0

B CB XB x1 x2 S1 S2 S3 MinRatio

S1 0 0 0 0 1 -3 0

x1 8000 12 1 0 0 0.6 -0.8

x2 12000 6 0 1 0 -0.2 0.6

Z=168000 Zj 8000 12000 0 2400 800

Zj-Cj 0 0 0 2400 800

Since all Zj-Cj≥0

Hence, optimal solution is arrived with value of variables as :

x1=12,x2=6

Max Z=168000
4. MAX Z = 8/100x1 + 10/100x2
subject to
x1 + x2 <= 70000
x1 >= 10000
x2 <= 30000
and x1,x2 >= 0
The problem is converted to canonical form by adding slack, surplus and artificial variables as appropiate

1. As the constraint-1 is of type '≤' we should add slack variable S1

2. As the constraint-2 is of type '≥' we should subtract surplus variable S2 and add artificial variable A1

3. As the constraint-3 is of type '≤' we should add slack variable S3

After introducing slack ,surplus ,artificial variables

Max Z = 0.08 x1 + 0.1 x2 + 0 S1 + 0 S2 + 0 S3 - M A1

subject to
x1 + x2 + S1 = 70000
x1 - S2 + A1 = 10000
x2 + S3 = 30000
and x1,x2,S1,S2,S3,A1≥0

Iteration-1 Cj 0.08 0.1 0 0 0 -M

MinRatio
B CB XB x1 x2 S1 S2 S3 A1
XBx1

S1 0 70000 1 1 1 0 0 0 700001=70000

A1 -M 10000 (1) 0 0 -1 0 1 100001=10000→

S3 0 30000 0 1 0 0 1 0 ---

Z=-10000M Zj -M 0 0 M 0 -M

Zj-Cj -M-0.08↑ -0.1 0 M 0 0

Negative minimum Zj-Cj is -M-0.08 and its column index is 1. So, the entering variable is x1.

Minimum ratio is 10000 and its row index is 2. So, the leaving basis variable is A1.

∴ The pivot element is 1.

Entering =x1, Departing =A1, Key Element =1

R2(new)=R2(old)

R2(old) = 10000 1 0 0 -1 0

R2(new)=R2(old) 10000 1 0 0 -1 0

R1(new)=R1(old) - R2(new)
R1(old) = 70000 1 1 1 0 0

R2(new) = 10000 1 0 0 -1 0

R1(new)=R1(old) - R2(new) 60000 0 1 1 1 0

R3(new)=R3(old)
R3(old) = 30000 0 1 0 0 1

R3(new)=R3(old) 30000 0 1 0 0 1

Iteration-2 Cj 0.08 0.1 0 0 0

MinRatio
B CB XB x1 x2 S1 S2 S3
XBx2

S1 0 60000 0 1 1 1 0 600001=60000

x1 0.08 10000 1 0 0 -1 0 ---

S3 0 30000 0 (1) 0 0 1 300001=30000→

Z=800 Zj 0.08 0 0 -0.08 0

Zj-Cj 0 -0.1↑ 0 -0.08 0

Negative minimum Zj-Cj is -0.1 and its column index is 2. So, the entering variable is x2.

Minimum ratio is 30000 and its row index is 3. So, the leaving basis variable is S3.

∴ The pivot element is 1.

Entering =x2, Departing =S3, Key Element =1

R3(new)=R3(old)
R3(old) = 30000 0 1 0 0 1
 R3(new)=R3(old) 30000 0 1 0 0 1

R1(new)=R1(old) - R3(new)
R1(old) = 60000 0 1 1 1 0

R3(new) = 30000 0 1 0 0 1

R1(new)=R1(old) - R3(new) 30000 0 0 1 1 -1

R2(new)=R2(old)
R2(old) = 10000 1 0 0 -1 0

R2(new)=R2(old) 10000 1 0 0 -1 0

Iteration-3 Cj 0.08 0.1 0 0 0

MinRatio
B CB XB x1 x2 S1 S2 S3
XBS2

S1 0 30000 0 0 1 (1) -1 300001=30000→

x1 0.08 10000 1 0 0 -1 0 ---

x2 0.1 30000 0 1 0 0 1 ---

Z=3800 Zj 0.08 0.1 0 -0.08 0.1

Zj-Cj 0 0 0 -0.08↑ 0.1

Negative minimum Zj-Cj is -0.08 and its column index is 4. So, the entering variable is S2.

Minimum ratio is 30000 and its row index is 1. So, the leaving basis variable is S1.

∴ The pivot element is 1.

Entering =S2, Departing =S1, Key Element =1

R1(new)=R1(old)

R1(old) = 30000 0 0 1 1 -1

R1(new)=R1(old) 30000 0 0 1 1 -1

R2(new)=R2(old) + R1(new)

R2(old) = 10000 1 0 0 -1 0

R1(new) = 30000 0 0 1 1 -1

R2(new)=R2(old) + R1(new) 40000 1 0 1 0 -1

R3(new)=R3(old)
R3(old) = 30000 0 1 0 0 1

R3(new)=R3(old) 30000 0 1 0 0 1

Iteration-4 Cj 0.08 0.1 0 0 0

B CB XB x1 x2 S1 S2 S3 MinRatio

S2 0 30000 0 0 1 1 -1

x1 0.08 40000 1 0 1 0 -1

x2 0.1 30000 0 1 0 0 1

Z=6200 Zj 0.08 0.1 0.08 0 0.02

Zj-Cj 0 0 0.08 0 0.02

Since all Zj-Cj≥0

Hence, optimal solution is arrived with value of variables as :

x1=40000,x2=30000

Max Z=6200
5.MAX Z = 6x1 + 10x2 + 8x3
subject to
2x1 + 3x2 <= 16
2x2 + 5x3 <= 20
3x1 + 2x2 + 4x3 <= 30
and x1,x2,x3 >= 0
The problem is converted to canonical form by adding slack, surplus and artificial variables as appropriate

1. As the constraint-1 is of type '≤' we should add slack variable S1

2. As the constraint-2 is of type '≤' we should add slack variable S2

3. As the constraint-3 is of type '≤' we should add slack variable S3

After introducing slack variables
Max Z = 6 x1 + 10 x2 + 8 x3 + 0 S1 + 0 S2 + 0 S3
subject to
2 x1 + 3 x2 + S1 = 16
2 x2 + 5 x3 + S2 = 20
3 x1 + 2 x2 + 4 x3 + S3 = 30
and x1,x2,x3,S1,S2,S3≥0
Iteration-1 Cj 6 10 8 0 0 0

MinRatio
B CB XB x1 x2 x3 S1 S2 S3
XB/x2

S1 0 16 2 (3) 0 1 0 0 16/3=5.3333→

S2 0 20 0 2 5 0 1 0 20/2=10

S3 0 30 3 2 4 0 0 1 30/2=15

Z=0 Zj 0 0 0 0 0 0

Zj-Cj -6 -10↑ -8 0 0 0

Negative minimum Zj-Cj is -10 and its column index is 2. So, the entering variable is x2.

Minimum ratio is 5.3333 and its row index is 1. So, the leaving basis variable is S1.

∴ The pivot element is 3.

Entering =x2, Departing =S1, Key Element =3

R1(new)=R1(old)÷3
R1(old) = 16 2 3 0 1 0 0

R1(new)=R1(old)÷3 5.3333 0.6667 1 0 0.3333 0 0

R2(new)=R2(old) - 2R1(new)
R2(old) = 20 0 2 5 0 1 0

R1(new) = 5.3333 0.6667 1 0 0.3333 0 0

2×R1(new) = 10.6667 1.3333 2 0 0.6667 0 0

R2(new)=R2(old) - 2R1(new) 9.3333 -1.3333 0 5 -0.6667 1 0

R3(new)=R3(old) - 2R1(new)

R3(old) = 30 3 2 4 0 0 1

R1(new) = 5.3333 0.6667 1 0 0.3333 0 0

2×R1(new) = 10.6667 1.3333 2 0 0.6667 0 0

R3(new)=R3(old) - 2R1(new) 19.3333 1.6667 0 4 -0.6667 0 1

Iteration-2 Cj 6 10 8 0 0 0

MinRatio
B CB XB x1 x2 x3 S1 S2 S3
XB/x3

x2 10 5.3333 0.6667 1 0 0.3333 0 0 ---

S2 0 9.3333 -1.3333 0 (5) -0.6667 1 0 9.3333/5=1.8667→

S3 0 19.3333 1.6667 0 4 -0.6667 0 1 19.3333/4=4.8333

Z=53.3333 Zj 6.6667 10 0 3.3333 0 0

Zj-Cj 0.6667 0 -8↑ 3.3333 0 0

Negative minimum Zj-Cj is -8 and its column index is 3. So, the entering variable is x3.

Minimum ratio is 1.8667 and its row index is 2. So, the leaving basis variable is S2.

∴ The pivot element is 5.

Entering =x3, Departing =S2, Key Element =5

R2(new)=R2(old)÷5
R2(old) = 9.3333 -1.3333 0 5 -0.6667 1 0

R2(new)=R2(old)÷5 1.8667 -0.2667 0 1 -0.1333 0.2 0

R1(new)=R1(old)
R1(old) = 5.3333 0.6667 1 0 0.3333 0 0

R1(new)=R1(old) 5.3333 0.6667 1 0 0.3333 0 0

R3(new)=R3(old) - 4R2(new)
R3(old) = 19.3333 1.6667 0 4 -0.6667 0 1

R2(new) = 1.8667 -0.2667 0 1 -0.1333 0.2 0

 4×R2(new) = 7.4667 -1.0667 0 4 -0.5333 0.8 0

R3(new)=R3(old) - 4R2(new) 11.8667 2.7333 0 0 -0.1333 -0.8 1

Iteration-3 Cj 6 10 8 0 0 0

MinRatio
B CB XB x1 x2 x3 S1 S2 S3
XBx1

x2 10 5.3333 0.6667 1 0 0.3333 0 0 5.3333/0.6667=8

x3 8 1.8667 -0.2667 0 1 -0.1333 0.2 0 ---

S3 0 11.8667 (2.7333) 0 0 -0.1333 -0.8 1 11.8667/2.7333=4.3415→

Z=68.2667 Zj 4.5333 10 8 2.2667 1.6 0

Zj-Cj -1.4667↑ 0 0 2.2667 1.6 0

Negative minimum Zj-Cj is -1.4667 and its column index is 1. So, the entering variable is x1.
Minimum ratio is 4.3415 and its row index is 3. So, the leaving basis variable is S3.

∴ The pivot element is 2.7333.

Entering =x1, Departing =S3, Key Element =2.7333

R3(new)=R3(old)÷2.7333
R3(old) = 11.8667 2.7333 0 0 -0.1333 -0.8 1

R3(new)=R3(old)÷2.7333 4.3415 1 0 0 -0.0488 -0.2927 0.3659

R1(new)=R1(old) - 0.6667R3(new)
R1(old) = 5.3333 0.6667 1 0 0.3333 0 0

R3(new) = 4.3415 1 0 0 -0.0488 -0.2927 0.3659

0.6667×R3(new) = 2.8943 0.6667 0 0 -0.0325 -0.1951 0.2439

R1(new)=R1(old) - 0.6667R3(new) 2.439 0 1 0 0.3659 0.1951 -0.2439

R2(new)=R2(old) + 0.2667R3(new)
R2(old) = 1.8667 -0.2667 0 1 -0.1333 0.2 0

R3(new) = 4.3415 1 0 0 -0.0488 -0.2927 0.3659

0.2667×R3(new) = 1.1577 0.2667 0 0 -0.013 -0.078 0.0976

R2(new)=R2(old) + 0.2667R3(new) 3.0244 0 0 1 -0.1463 0.122 0.0976

Iteration-4 Cj 6 10 8 0 0 0

B CB XB x1 x2 x3 S1 S2 S3 MinRatio

x2 10 2.439 0 1 0 0.3659 0.1951 -0.2439

x3 8 3.0244 0 0 1 -0.1463 0.122 0.0976

x1 6 4.3415 1 0 0 -0.0488 -0.2927 0.3659

Z=74.6341 Zj 6 10 8 2.1951 1.1707 0.5366

Zj-Cj 0 0 0 2.1951 1.1707 0.5366

Since all Zj-Cj≥0

Hence, optimal solution is arrived with value of variables as :

x1=4.3415,x2=2.439,x3=3.0244

Max Z=74.6341

6.MAX Z = 5x1 + 4x2 + 6x3

subject to
x1 + x2 + x3 <= 100
3x1 + 2x2 + 4x3 <= 210
3x1 + 2x2 <= 150
and x1,x2,x3 >= 0
The problem is converted to canonical form by adding slack, surplus and artificial variables as appropiate

1. As the constraint-1 is of type '≤' we should add slack variable S1

2. As the constraint-2 is of type '≤' we should add slack variable S2

3. As the constraint-3 is of type '≤' we should add slack variable S3

After introducing slack variables

Max Z = 5 x1 + 4 x2 + 6 x3 + 0 S1 + 0 S2 + 0 S3
subject to
x1 + x2 + x3 + S1 = 100
3 x1 + 2 x2 + 4 x3 + S2 = 210
3 x1 + 2 x2 + S3 = 150
and x1,x2,x3,S1,S2,S3≥0

Iteration-1 Cj 5 4 6 0 0 0

MinRatio
B CB XB x1 x2 x3 S1 S2 S3
XB/x3

S1 0 100 1 1 1 1 0 0 100/1=100

S2 0 210 3 2 (4) 0 1 0 210/4=52.5→

S3 0 150 3 2 0 0 0 1 ---

Z=0 Zj 0 0 0 0 0 0

Zj-Cj -5 -4 -6↑ 0 0 0

Negative minimum Zj-Cj is -6 and its column index is 3. So, the entering variable is x3.

Minimum ratio is 52.5 and its row index is 2. So, the leaving basis variable is S2.

∴ The pivot element is 4.

Entering =x3, Departing =S2, Key Element =4

R2(new)=R2(old)÷4
R2(old) = 210 3 2 4 0 1 0

R2(new)=R2(old)÷4 52.5 0.75 0.5 1 0 0.25 0

R1(new)=R1(old) - R2(new)
R1(old) = 100 1 1 1 1 0 0

R2(new) = 52.5 0.75 0.5 1 0 0.25 0

R1(new)=R1(old) - R2(new) 47.5 0.25 0.5 0 1 -0.25 0

R3(new)=R3(old)
R3(old) = 150 3 2 0 0 0 1

R3(new)=R3(old) 150 3 2 0 0 0 1

Iteration-2 Cj 5 4 6 0 0 0

MinRatio
B CB XB x1 x2 x3 S1 S2 S3
XB/x2

S1 0 47.5 0.25 0.5 0 1 -0.25 0 47.5/0.5=95

x3 6 52.5 0.75 0.5 1 0 0.25 0 52.5/0.5=105

S3 0 150 3 (2) 0 0 0 1 150/2=75→

Z=315 Zj 4.5 3 6 0 1.5 0

Zj-Cj -0.5 -1↑ 0 0 1.5 0

Negative minimum Zj-Cj is -1 and its column index is 2. So, the entering variable is x2.

Minimum ratio is 75 and its row index is 3. So, the leaving basis variable is S3.
Entering =x2, Departing =S3, Key Element =2

R3(new)=R3(old)÷2
R3(old) = 150 3 2 0 0 0 1

R3(new)=R3(old)÷2 75 1.5 1 0 0 0 0.5

R1(new)=R1(old) - 0.5R3(new)
R1(old) = 47.5 0.25 0.5 0 1 -0.25 0

R3(new) = 75 1.5 1 0 0 0 0.5

0.5×R3(new) = 37.5 0.75 0.5 0 0 0 0.25

R1(new)=R1(old) - 0.5R3(new) 10 -0.5 0 0 1 -0.25 -0.25

R2(new)=R2(old) - 0.5R3(new)
R2(old) = 52.5 0.75 0.5 1 0 0.25 0
 R3(new) = 75 1.5 1 0 0 0 0.5

0.5×R3(new) = 37.5 0.75 0.5 0 0 0 0.25

R2(new)=R2(old) - 0.5R3(new) 15 0 0 1 0 0.25 -0.25

Iteration-3 Cj 5 4 6 0 0 0

B CB XB x1 x2 x3 S1 S2 S3 MinRatio

S1 0 10 -0.5 0 0 1 -0.25 -0.25

x3 6 15 0 0 1 0 0.25 -0.25

x2 4 75 1.5 1 0 0 0 0.5

Z=390 Zj 6 4 6 0 1.5 0.5

Zj-Cj 1 0 0 0 1.5 0.5

Since all Zj-Cj≥0

Hence, optimal solution is arrived with value of variables as :

x1=0,x2=75,x3=15

Max Z=390

7.MAX Z = 1850x1 + 2080x2 + 1875x3

subject to
x1 + x2 + x3 <= 100
5x1 + 6x2 + 5x3 <= 400
and x1,x2,x3 >= 0
The problem is converted to canonical form by adding slack, surplus and artificial variables as appropiate

1. As the constraint-1 is of type '≤' we should add slack variable S1

2. As the constraint-2 is of type '≤' we should add slack variable S2

After introducing slack variables

Max Z = 1850 x1 + 2080 x2 + 1875 x3 + 0 S1 + 0 S2
subject to
x1 + x2 + x3 + S1 = 100
5 x1 + 6 x2 + 5 x3 + S2 = 400
and x1,x2,x3,S1,S2≥0

Iteration-1 Cj 1850 2080 1875 0 0

MinRatio
B CB XB x1 x2 x3 S1 S2
XB/x2

S1 0 100 1 1 1 1 0 100/1=100

S2 0 400 5 (6) 5 0 1 400/6=66.6667→

Z=0 Zj 0 0 0 0 0

Zj-Cj -1850 -2080↑ -1875 0 0

Negative minimum Zj-Cj is -2080 and its column index is 2. So, the entering variable is x2.

Minimum ratio is 66.6667 and its row index is 2. So, the leaving basis variable is S2.

∴ The pivot element is 6.

Entering =x2, Departing =S2, Key Element =6

R2(new)=R2(old)÷6
R2(old) = 400 5 6 5 0 1

R2(new)=R2(old)÷6 66.6667 0.8333 1 0.8333 0 0.1667

R1(new)=R1(old) - R2(new)
R1(old) = 100 1 1 1 1 0

R2(new) = 66.6667 0.8333 1 0.8333 0 0.1667

R1(new)=R1(old) - R2(new) 33.3333 0.1667 0 0.1667 1 -0.1667

208
Iteration-2 Cj 1850 1875 0 0
0
 S MinRatio
B CB XB x1 x2 x3 S2
1 XB/x3

33.333
S1 0 0.1667 0 0.1667 1 -0.1667 33.3333/0.1667=200
3

208 66.666 66.6667/0.8333=80

x2 0.8333 1 (0.8333) 0 0.1667
0 7 →

Z=138666.666 1733.333 208 346.666

Zj 1733.3333 0
7 3 0 7

- 346.666
Zj-Cj -116.6667 0 0
141.6667↑ 7

Negative minimum Zj-Cj is -141.6667 and its column index is 3. So, the entering variable is x3.

Minimum ratio is 80 and its row index is 2. So, the leaving basis variable is x2.

∴ The pivot element is 0.8333.

Entering =x3, Departing =x2, Key Element =0.8333

R2(new)=R2(old)÷0.8333
R2(old) = 66.6667 0.8333 1 0.8333 0 0.1667

R2(new)=R2(old)÷0.8333 80 1 1.2 1 0 0.2

R1(new)=R1(old) - 0.1667R2(new)
R1(old) = 33.3333 0.1667 0 0.1667 1 -0.1667

R2(new) = 80 1 1.2 1 0 0.2

0.1667×R2(new) = 13.3333 0.1667 0.2 0.1667 0 0.0333

R1(new)=R1(old) - 0.1667R2(new) 20 0 -0.2 0 1 -0.2

Iteration-3 Cj 1850 2080 1875 0 0

B CB XB x1 x2 x3 S1 S2 MinRatio

S1 0 20 0 -0.2 0 1 -0.2

x3 1875 80 1 1.2 1 0 0.2

Z=150000 Zj 1875 2250 1875 0 375

Zj-Cj 25 170 0 0 375

Since all Zj-Cj≥0

Hence, optimal solution is arrived with value of variables as :

x1=0,x2=0,x3=80

Max Z=150000

LIMITATIONS OF SIMPLEX METHOD:

• Inability to deal with multiple objectives.

• Inability to handle problems with integer variables.

• Solution methods to LP problems with integer or Boolean variables are still far less efficient than
those which include continuous variables only.