The Simplex Method

Linear programming models could be solved algebraically. The most widely used
algebraic procedure for solving linear programming problem is called the Simplex Method. The
simplex method is a general-purpose linear-programming algorithm widely used to solve large
scale problems. Although it lacks the intuitive appeal of the graphical approach, its ability to
handle problems with more than two decision variables makes it extremely valuable for solving
problems often encountered in production/operations management. Thus simplex method offers
an efficient means of solving more complex linear programming problems.
The Simplex Method was developed by George B. DANTZIG (1914-2005) in 1947 while
on assignment with the U.S. Department of the air force.

CHARACTERISTICS OF SIMPLEX METHOD

In the simplex method, the computational routine is an iterative process. To iterate means
to repeat; hence, in working toward the optimum solution, the computational routine is
repeated over and over, following a standard pattern.
Successive solutions are developed in a systematic pattern until the best solution is
reached.
Each new solution will yield a value of the objective function as large as or larger than
the previous solution. This important feature assures us that we are always moving closer
to the optimum answer. Finally, the method indicates when the optimum solution has
been reached.
Most real-life linear programming problems have more than two variables, so a
procedure called the simplex method is used to solve such problems. This procedure
solves the problem in an iterative manner, that is, repeating the same set of procedures
time after time until an optimal solution is reached. Each iteration brings a higher value
for the objective function so that we are always moving closer to the optimal solution.
The simplex method requires simple mathematical operations (addition, subtraction,
multiplication, and division), but the computations are lengthy and tedious, and the
slightest error can lead to a good deal of frustration. For these reasons, most users of the
technique rely on computers to handle the computations while they concentrate on the
solutions. Still, some familiarity with manual computations is helpful in understanding
the simplex process. The student will discover that it is better not to use his/her calculator
in working through these problems because rounding can easily distort the results.
Instead, it is better to work with numbers in fractional form.

Importance of Simplex Method

It is important to understand the ideas used to produce solution. The simplex approach
yields not only the optimal solution to the xi variables, and the maximum profit (or
minimum cost) but valuable economic information as well.
To be able to use computers successfully and to interpret LP computer print outs,
we need to know what the simplex method is doing and why.
We begin by solving a maximization problem using the simplex method. We then tackle
a minimization problem.

TO SOLVE A LINEAR PROGRAMMING PROBLEM IN STANDARD FORM, USE THE

FOLLOWING STEPS:
1- Convert each inequality in the set of constraints to an equation by adding slack variables.
2- Create the initial simplex tableau.
3- Select the pivot column. (The column with the most negative value element in the last row.)
4- Select the pivot row. (The row with the smallest non-negative result when the last element in
the row is divided by the corresponding in the pivot column.)
5-Use elementary row operations calculate new values for the pivot row so that the pivot is 1
(Divide every number in the row by the pivot number.)
6- Use elementary row operations to make all numbers in the pivot column equal to 0 except for
the pivot number. If all entries in the bottom row are zero or positive, this the final tableau. If not,
go back to step 3.
7- If you obtain a final tableau, then the linear programming problem has a maximum solution,
which is given by the entry in the lower-right corner of the tableau.

Definition of Terms:
Pivot Column: The column of the tableau representing the variable to be entered into the
solution mix.
Pivot Row: The row of the tableau representing the variable to be replaced in the solution mix.
Pivot Number: The element in both the pivot column and the pivot row.

Simplex Method Diagram

Initial Simplex Tableau

All variables

Basic variables

Solution

coefficients
0

SAMPLE PROBLEMS:
Example 1:
Maximize: P = 3x + 4y subject to:
x+y4
2x + y 5
x 0, y 0
Our first step is to classify the problem. Clearly, we are going to maximize our objective
function, all are variables are nonnegative, and our constraints are written with our variable
combinations less than or equal to a constant. So this is a standard max-imization problem and
we know how to use the simplex method to solve it.
We need to write our initial simplex tableau. Since we have two constraints, we need to
introduce the two slack variables u and v. This gives us the equalities
x+y+u=4
2x + y = 5
We rewrite our objective function as 3x4y +P = 0 and from here obtain the system of
equations:
x+y+u=4
2x + y = 5
3x 4y + P = 0
This gives us our initial simplex tableau:
x
1
2
-3

y
1
1
-4

u
1
0
0

v
0
1
0

P
0
0
1

4
5
0

To find the column, locate the most negative entry to the left of the vertical line (here this
is 4). To find the pivot row, divide each entry in the constant column by the entry in the
4
5
corresponding in the pivot column. In this case, well get 1 as the ratio for the first row and 1
for the ratio in the second row. The pivot row is the row corresponding to the smallest ratio, in
this case 4. So our pivot element is the in the second column, first row, hence is 1.
Now we perform the following row operations to get convert the pivot column to a unit
column:
R 2 R2 R1

R3 R3 + 4R1
Our simplex tableau has transformed into:
x

-1

16

Notice that all of the entries to the left of the vertical line in the last row are non-negative.
We must stop here!
To read o the solution from the table, first find the unit columns in the table. The
variables above the unit columns are assigned the value in the constant column in the row where
the 1 is in the unit column. Every variable above a non-unit column is set to 0. So here y = 4, v
= 1, P = 16, x = 0, and u = 0.
Thus, our maximum occurs when x = 0, y = 4 and the maximum value is 16.
Example 2:
Minimize: C = 2x + y subject to:

x + 2y 6
3x + 2y 12
x 0, y 0

Classify the problem. Clearly, this is a minimization problem...but its not the standard
problem since our constraints involve linear expressions with the variables less than or equal to
a constant. We use the trick that minimizing this function C is the same as maximizing the
function P = C. This problem is then equivalent to:
Maximize P = 2x y subject to:
x + 2y 6
3x + 2y 12
x 0, y 0
Introducing the slack variable u and v, our initial simplex tableau is:
x

12

-2

Our pivot element is the 3 in row 2 column 1. We do the following sequence of row
operations to convert this column into a unit column:
1

R R
2
3 1

R 1 R1 R2

R3 R3 + 2R2

We have the tableau:

x
0
1
0

y
4 /3
2 /3
5 /3

u
1
0
0

v
-1 /3
1 /3
1 /3

P
0
0
1

2
4
8

Since the last row has all positive entries to the left of the vertical line, we are done. Our
maximum of P occurs at x = 4, y = 0 and the maximum value of P is 8. Since P = C our
minimum for C is 8. Thus C = 8 is the minimum for C and C is minimized at (4, 0).