The simplex method is based on the property that the optimal solution to a linea

r programming
problem, if it exists, can always be found in one of the basic feasible solution
. The simplex method
is quite simple and mechanical in nature. The iterative steps of the simplex met
hod are repeated until a
finite optimal solution, if exists, is found. If no optimal solution, the method
indicates that no finite
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3.1. INTRODUCTION
As discussed earlier, there are many methods to solve the Linear Programming Pro
blem, such as
Graphical Method, Trial and Error method, Vector method and Simplex Method. Thou
gh we use
graphical method for solution when we have two problem variables, the other meth
od can be used
when there are more than two decision variables in the problem. Among all the me
thods, SIMPLEX
METHOD is most powerful method. It deals with iterative process, which consists
of first designing
a Basic Feasible Solution or a Programme and proceed towards the OPTIMAL SOLUTIO
N and
testing each feasible solution for Optimality to know whether the solution on ha
nd is optimal or not.
If not an optimal solution, redesign the programme, and test for optimality unti
l the test confirms
OPTIMALITY. Hence we can say that the Simplex Method depends on two concepts kno
wn as
Feasibility and optimality.
The simplex method is based on the property that the optimal solution to a linea
r programming
problem, if it exists, can always be found in one of the basic feasible solution
. The simplex method
is quite simple and mechanical in nature. The iterative steps of the simplex met
hod are repeated until a
finite optimal solution, if exists, is found. If no optimal solution, the method
indicates that no finite
solution exists.
3.2. COMPARISION BETWEEN GRAPHICAL AND SIMPLEX METHODS
1. The graphical method is used when we have two decision variables in the probl
em. Whereas
in Simplex method, the problem may have any number of decision variables.
2. In graphical method, the inequalities are assumed to be equations, so as to e
nable to draw
straight lines. But in Simplex method, the inequalities are converted into equat
ions by:
(i) Adding a SLACK VARIABLE in maximisation problem and subtracting a SURPLUS
VARIABLE in case of minimisation problem.
3. In graphical solution the Isoprofit line moves away from the origin to toward
s the far off
point in maximisation problem and in minimisation problem, the Isocost line move
s from far
off distance towards origin to reach the nearest point to origin.
4. In graphical method, the areas outside the feasible area (area covered by all
the lines of
constraints in the problem) indicates idle capacity of resource where as in Simp
lex method,

the presence of slack variable indicates the idle capacity of the resources.
CHAPTER
3
Linear Programming Models:
(Solution by Simplex Method)
Resource Allocation Model
Maximisation Case
Linear Programming Models : Solution by Simplex Method 45
5. In graphical solution, if the isoprofit line coincides with more than one poi
nt of the feasible
polygon, then the problem has second alternate solution. In case of Simplex meth
od the netevaluation
row has zero for non-basis variable the problem has alternate solution. (If two
alternative optimum solutions can be obtained, the infinite number of optimum, s
olutions can
be obtained).
However, as discussed in the forth coming discussion, the beauty of the simplex
method lies in
the fact that the relative exchange profitabilities of all the non -basis variab
les (vectors) can be determined
simultaneously and easily; the replacement process is such that the new basis do
es not violate the
feasibility of the solution.
3.3. MAXIMISATION CASE
Problem 3.1: A factory manufactures two products A and B on three machines X, Y,
and Z. Product
A requires 10 hours of machine X and 5 hours of machine Y a one our of machine Z
. The requirement
of product B is 6 hours, 10 hours and 2 hours of machine X, Y and Z respectively
. The profit contribution
of products A and B are Rs. 23/ per unit and Rs. 32 / per unit respectively. In th
e coming planning
period the available capacity of machines X, Y and Z are 2500 hours, 2000 hours
and 500 hours
respectively. Find the optimal product mix for maximizing the profit.
Solution:
The given data is:
Products
Machines A B Capacity in hours
Hrs. Hrs.
X 10 6 2500
Y 5 10 2000
Z 1 2 500
Profit/unit Rs. 23 32
Let the company manufactures a units of A and b units of B. Then the inequalitie
s of the
constraints (machine capacities) are:
Maximise Z = 23 a + 32 b S.T. OBJECTIVE FUNCTION
10 a + 6 b = 2500
5 a + 10 b = 2000 STRUCTURAL CONSTRAINTS.
1 a + 2 b = 500
And both a and b are = 0. NON-NEGATIVITY CONSTRAINT.
Now the above inequalities are to be converted into equations.
Take machine X: One unit of product A requires 10 hours of machine X and one uni
t of product
B require 6 units. But company is manufacturing a units of A and b units of B, h
ence both put together
must be less than or equal to 2,500 hours. Suppose a = 10 and b = 10 then the to
tal consumption is
10 10 + 6 10 = 160 hours. That is out of 2,500 hours, 160 hours are consumed, an
d 2,340 hours