c) Bidding policies.
3. Production Management:
a) Product planning:
i) Location and size of warehouses, distribution centres, retail
outlets, etc.
4. Marketing Management:
5. Personnel Management:
2. Introduce surplus variables (Si’s) and artificial variables (Ai) for “³”
type of constraint.
4. Cost (Cj) of slack and surplus variables will be zero and that of
artificial variable will be “M”
6. Slack and artificial variables will form basic variable for the first
simplex table. Surplus variable will never become basic variable for
the first simplex table.
8. Select the most negative value of Zj – Cj. That column is called key
column. The variable corresponding to the column will become
basic variable for the next table.
10. The element that lies both on key column and key row is
called Pivotal element.
11. Ratios with negative and “a” value are not considered for
determining key row.
Two-phase method for solving a given LPP can be divided in the two
phses as mentioned below:
Phase II: Start phase II using the optimum solution of phase I as the base.
Then take the objective function without the artificial variables and solve
the problem using the Simplex method.
Why is it used?