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Simplex Maximization (Quantitative Techniques in Business)

By Miss Libeeth Guevarra(Quantitative techniques in business)

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VastoLorde2285
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46 views18 pages

Simplex Maximization (Quantitative Techniques in Business)

By Miss Libeeth Guevarra(Quantitative techniques in business)

Uploaded by

VastoLorde2285
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Linear Programming:

Simplex Maximization Method

Libeeth B. Guevarra
Department of Mathematics and Natural Sciences

Math035 - Quantitative Techniques for Business 1


Introduction

Simplex Method
Developed by George B. Dantzig
iterative process of computation routine.
each solution will yield a value of the objective function as large
as or larger profit than the previous solution for the
maximization problem and lower cost for minimization problem.

Math035 - Quantitative Techniques for Business 2


Maximization: STEPS

1: Set up the objective function and the problem constraints.


2: Convert inequality explicit constraints to equations by adding
slack or artificial variables.
I if f ≤ c, add slack variable s, f + s = c
I if f ≥ c, multipliy both sides by −1 and add slack variable s,
−f + s = −c
I if f = c, add slack variable s, f + s = c
3: Enter the numerical coefficient and variables in the simplex
table.
4: Calculate the Pj and Zj values for this solution.

Math035 - Quantitative Techniques for Business 3


Maximization: STEPS
Initial Simplex table

Math035 - Quantitative Techniques for Business 4


Maximization: STEPS
5: Determine the optimum column or entering variable by
choosing the most positive value in the Pj–Zj row.
6: Determine the outgoing variable of the pivot row. Divide the
quantity column values by their corresponding optimum column
values and choose the smallest positive quotient.
7: Compute the values for the replacing row by dividing all the
entries by the pivot. Enter the result in the next table.
8: Compute the new entries for the remaining rows by reducing
the optimum column entries to zero (entries in the constraint
rows).
9: Calculate the Pj − Zj values for the solution.
10: If there is a positive entry in the Pj–Zj row, return to step
5. The final solution has been obtained if there is no positive
value in the Pj–Zj row.

Math035 - Quantitative Techniques for Business 5


Example
An appliance manufacturer produces two models of electric fans: stand
fans and desk fans. Both models require fabrications and assembly work.
Each stand fan uses 4 hours of fabrication and two hours of assembly and
each desk fan uses two hours of fabrication and six hours of assembly.
There are 600 fabrication hours available per week and 480 hours of
assembly. Each stand fan contributes P400 to profits and each desk fan
contributes P300 to profits. How many stand fans and desk fans must the
manufacturer produce in order to maximize the profit?

The linear program:


Let x = # stand stand fans; y = # desk fans ; P = Profit
Maximize P = 400x + 300y
Constraints:
4x + 2y ≤ 600
2x + 6y ≤ 480
x ≥ 0; y ≥ 0

Math035 - Quantitative Techniques for Business 6


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The linear program:
Let x1 = # item A; x2 = # item B ; x3 = # item C P = Profit

Maximize P = 10x1 + 10x2 + 5x3


Constraints:
2x1 + x2 + 4x3 ≥ 15
2x1 ≤ 50
3x2 ≤ 40
x2 + 2x3 ≤ 30
x1 ≥ 0; x2 ≥ 0; x3 ≥ 0

Math035 - Quantitative Techniques for Business 11


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Exercise
Solve the following by simplex method
1 Maximize P = 4x1 + 5x2
Constraints:
3x1 + 6x2 ≤ 36
4x1 + 2x2 ≤ 36
x1 + x2 ≤ 8
x1 ≥ 0; x2 ≥ 0
2 Maximize P = 8x1 + 6x2 + 2x3
Constraints:
3x1 + 2x2 + 6x3 ≤ 24
x1 + 2x2 + 4x3 ≤ 12
4x1 + 3x2 + 6x3 = 48
x1 ≥ 0; x2 ≥ 0; x3 ≥ 0

Math035 - Quantitative Techniques for Business 18

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