Chapter -1

Introduction to Operations Research

Wasihun Tiku (PhD, MBA)

Department of Management
Debre Markos University
1
1.1 History of Operations Research
Operations Research/Management science today plays a

significant role in support of management decision making in

business and non business organizations.
Operations Research came is to existence as a discipline

during World War II when there was a critical need to manage

scarce resources.
The term Operations research was coined as a result of
research on military operations during this war.

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Con’t
Since the war involved strategic and tactical problems which were

greatly complicated, to expect adequate solutions from individual

or specialists in a single discipline was unrealistic.
After the war ended, scientists who had been active in the

military OR groups made efforts to apply the operations research

approach to civilian problems, related to business, industry,
research and development, and even won Nobel prizes when they
returned to their peacetime disciplines.
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Con’t
There are three important factors behind the rapid

development in the use of operations research approach.

1. The economic and industrial boom after World War II
resulted in continuous mechanization, automation,
decentralization of operations and division of management
factors.
2. Many operation researchers continued their research
after war. E.g establish d/f OR techniques.
3. Analytic power was made available by high-speed
computers.
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1.3 Operation Research: Some definitions
Some common definitions:

OR is a systematic application of quantitative methods,

techniques and tools to the analysis of problems involving the
operation of systems.
OR is essentially a collection of mathematical techniques and
tools which in conjunction with systems approach, is applied to
solve practical decision problems of an economic or engineering
nature.
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Con’t
 OR is the application of scientific methods, techniques and tools,
to problems involving operations of a system so as to provide
those in control of the operations with optimum solutions to the
problems.

 OR seeks the determination of the optimum course of action of a

decision problem under the restriction of limited resources. It is

quite often associated almost exclusively with the use of
mathematical techniques to model and analyze decision problems.
6
Con’t
OR is the application of a scientific approach to solving

management problems in order to help managers make better

decisions.
Provides rational basis for decision making
 Solves the type of complex problems that turn up in the
modern business environment
 Builds mathematical and computer models of organizational
systems composed of people, machines, and procedures
 Uses analytical and numerical techniques to make predictions
and decisions based on these models
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1.3 Nature and significance of operations research

The OR approach is particularly useful in balancing

conflicting objectives (goals or interests), where there are many

alternative courses of action available to the decision-makers.
In a theoretical sense, the optimum decision must be one that is

best for the organization as a whole. It is often called global

optimum. A decision that is best for one or more sections of the
organization is usually called suboptimum decision.

8
Con’t
The OR approach attempts to find global optimum by

analyzing inter-relationships among the system

components involved in the problem.

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1.4 Features of Operations Research Approach (7)
1. Inter-disciplinary approach
Interdisciplinary teamwork is essential because while attempting to

solve a complex management problem, one person may not have complete
knowledge of all its aspects such as economic, social, political,
psychological, engineering, etc.
2. Methodological Approach
OR is the application of scientific methods, techniques and tools to

problems involving the operations of systems so as to provide those in

control of operations with optimum solutions to the problems

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Con’t
3. Holistic Approach or Systems Orientation

 While arriving at a decision, an operation research team examines the

relative importance of all conflicting and multiple objectives and the

validity of claims of various departments of the organization from the
perspective of the whole organization.

4. Objectivistic Approach

 The OR approach seeks to obtain an optimal solution to the problem

under analysis.
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Con’t
5. Decision Making
 OR increases the effectiveness of management decisions. It is the
decision science which helps management to make better decisions.
6. Use of Computers
 OR often requires a computer to solve the complex mathematical
model or to perform a large number of computations that are
involved.
7. Human factors
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1.5 Model and Modeling in Operations Research
Model -an abstract representation of reality. Mathematical,

physical, narrative, set of rules in computer program.

OR uses mathematical models to represent and solve

organizational problems. in these mathematical models

symbols are used to represent entities and equations are used to
represent relationships among entities.

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1.5.2 Modeling process
In general, there are five steps :

Real Observation and

Formulating the
world defining a problem
model
problems

Modify the
model

Implementing Validating Solving the

ye (Testing) the
the solution Mathematical Model
s solution

14
Step 1. Observation and defining a problem
The first step in OR process is the identification of a

problem that exists is a system (organization). The system

must be continuously and closely observed so that problems
can be identified as soon as they occur or anticipated. Problems
are not always the results of crisis; but instead frequently
involve an anticipatory or planning situation. Once it has been
determined that a problem exists, the problem must be
clearly and concisely defined.
15
Step 2. Formulating a model
Model formulation involves an analysis of the system under

study, determining objective of the decision-maker, and

alternative course of action, etc, so as to understand and
describe, in precise terms, the problem that an organization
faces.

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Step 3.Solving the Mathematical Model
This involves obtaining the numerical values of decision

variables. Obtaining these values depends on the specific form

or type, of mathematical models. Solving the model requires the
use of various mathematical tools and numerical procedures.
In general, there are two categories of methods used for solving
an OR model.
1. Graphic method
2. Simplex method

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Step 4. Validating (Testing) the solution
After solving the mathematical model, it is important to review
the solution carefully to see that values make sense and that
the resulting decisions can be implemented. Some of the
reasons for validating the solution are:
(i) The mathematical model may not have enumerated all the
limitations of the problem under consideration.
(ii) Certain aspect of the problem may have been overlooked,
omitted or simplified,
(iii) The data may have been incorrect estimated or recorded,
perhaps when entered in to the computer.
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Step 5. Implementing the solution
The decision-maker has not only to identify good
decision alternatives but also to select alternatives that
are capable of being implemented. It is important to
ensure that any solution implemented is continually
reviewed and updated in the light of a changing
environment.

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Operations Research Techniques

1. Linear Mathematical Programming

- Linear programming models -Graphic Analysis
-Simplex Method - Post optimality
-Transportation and assignment - Integer linear programming
-Goal Linear
2. Probabilistic Techniques
-Probability - Decision Analysis
-Game Theory -Markov Analysis
-Queuing -Simulation
-Forecasting
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Con’t
3. Inventory Techniques
-Certain Demand
-Uncertain Demand
4. Net work Techniques
-Net work flow CPM/PERT
5. Other linear and nonlinear Techniques
Dynamic Programming
Break-even Analysis
Non-linear programming

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22
 Chapter 2
Linear Programming

23
2.1 Introduction
 Linear programming(LP) is a mathematical model in which
the objective function and constraint functions are linear in the
decision variables.
 LP is a problem solving approach that has been developed to
make decisions.

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2.2. Components of LP models
There are three major components of LP models
including:
1.Objective function- maximization or
minimization
2. Decision variables- unknown quantities to be
solved for.
3.Constraints –availability of resource (restriction)

25
Con’t

26
2.3 Assumptions of LP Models
The assumptions reveal the condition under which the model will
valid
1. Linearity
2. Continuity/ Divisibility

3. Additives
4. Certainty
5. Choices
6. Non- negativity assumptions
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2.4 Formulating Linear Programming Models (LPM)
The formulation of LPM involves the following steps :

1. Define the problem: - this involves the determination of our

specific objectives. The word expression of our objective.

Example: to determine the number of units of P1 and P2 to be

produced per month so as to maximize profit given the
restrictions (constraints).
2. Determine the decision variables: - this involves the
representation of the unknown quantities by letters.

28
Con’t
Example: let x1 and x2 represent the number of units of P1 and P2
to be produced per month respectively.
3. Formulate the objective function:- in developing the
objective function make sure that:
All the decision variables are represented in the objective
function
The unit of measurement of all the coefficients in the objective
function must be the same. Example, if we use kg for x1, we
should use kg for x2 too.
All the terms in the objective must include a variable.

29
Con’t
4. Formulate the constraints:-decide on the constraints and
formulate the mathematical relationship that is used to express
the limitations.

5. Determine the non-negativity assumptions

 

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Con’t
The general linear programming problem can be represented in

the following mathematical forms.

Maximization case
Max Z= C1X1 + C2X2 + C3X3 + C4X14… CnXn
subject to
A11 x1 + A12x2+ A13x3+ A14x4+ A15x5+ A16x6+ A17x7+ …. + A1nxn <R1
A21 x1 + A22x2+ A23x3+ A24x4+ A25x5+ A26x6+ A27x7+ …. + A2nxn <R2
Ai1 x1 + Ai2x2+ Ai3x3+ Ai4x4+ Ai5x5+ Ai6x6+ Ai7x7+ …. + Ainxn < Rn
Xij > o for J= 1, 2,3,4… n

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Con’t
Minimization case
Min Z= C1X1 + C2X2 + C3X3 + C4X14… CnXn
subject to
A11 x1 + A12x2+ A13x3+ A14x4+ A15x5+ A16x6+ A17x7+ …. + A1nxn >R1
A21 x1 + A22x2+ A23x3+ A24x4+ A25x5+ A26x6+ A27x7+ …. + A2nxn >R2
.Ai1 x1 + Ai2x2+ Ai3x3+ Ai4x4+ Ai5x5+ Ai6x6+ Ai7x7+ …. + Ainxn > Rn
Xij > o for J= 1, 2,3,4… n

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2.4 Application Area of LP
There is a wide range of problems that lend themselves to

solution by linear programming techniques. Some of these

include:
 Production management (product mix, blending problems,
production planning, Assembly line balancing.),
 Marketing management (media selection, traveling sales man
problem, physical distribution),

33
Con’t
 Financial management (portfolio selection, profit planning)

 Agricultural application

 Military applications

 Personnel management (staffing problem, Determination of

equitable salary and etc.

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Example1:
A firm that assembles computer equipments is about to start production of two
new computers (type 1 and type2). Each type of micro computer will require
assembly time, inspection time and storage space. The amount of each of these
resources that can be devoted to the production of the micro computers is
limited. The manager of the firm would like to determine the quantity of each
micro computer to produce in order to maximize the profit generated by sale of
the micro computers. In order to develop a suitable model of the problem the
manager has met with the design and manufacturing personnel. As a result of
those meetings the manager has obtained the following information:

35
Con’t
Type1 Type 2
Unit profit $60 $50
Assembly time/unit (A) 4 10
Inspection time/unit (I) 2 1
Storage space/unit (S) 3 3
The manager has also information on the availability of company
resources:
Resources Amount available
Assembly time 100hrs
Inspection time 22hrs
Storage space 39cubic feet
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Con’t
Required
Formulate the linear programming model
Solution
Step1. Define the problem
To determine the quantity of type I and type II micro computers to be
produced per day so as to maximize profit, given the restrictions.
Step2. Identify the decision variables
Let x1 = the quantity of Type I micro computers to be produced & sold per
day.
x2 = the quantity of Type II micro computers to be produced& sold per
day.
z = daily profit
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Con’t
Step 3: Develop the Objective Function

Max Z= 60x1 + 50x2

Step 4: Formulate the Constraints

A: 4x1 + 10x2 < 100
I: 2x1 + x2 <22
S: 3x1 + 3x2 <39
Step 5: non-negativity
X1, X2 > 0

38
Con’t
The complete LPM is:
Max Z = 60x1 + 50x2
Subject to:
4x1 + 10x2 < 100
2x1 + x2 <22
3x1 + 3x2 < 39
x1, x2 > 0

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Example 2:
Two machines C1 and C2 produce two grades of tyres A and B. In
one hour of operation, machine C1 produces 30 units of grade A
and 40 units of grade B tyres while machine C2 produces 30
units of grade A and 40 units of grade B tyres. The machines
are required to meet a production schedule of at least 1400
units of grade A and 1200 units of grade B tyres. The cost of
operating machine C1 is $50 per hour and the cost of operating
machine C2 is $80 per hour.
Required
Formulate the LPM if the objective is to minimize the cost of
operating the machines.
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Solution
Step 1: Define the Problem
to determine the number of hours the two machines operate in
order to minimize cost, meeting the production requirement.
Step 2:- Determine the decision variables
Let x1= be the number of hours machine C1 should operate
x2= be the number of hours machine C2 should operates
Z= be the total cost
Step 3: Formulate the objective function
Min Z = 50x1 + 80x2

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Con’t
Step 4:- List the constraints
Grade A: 30x1 + 30x2 > 1400
Grade B: 40x1 + 40x2 > 1200
Step 5:- non-negativity
x1, x2 > 0
Therefore ,The complete LPM is
Min Z = 50x1 + 80x2
Subject to: 30x1 + 30x2 > 1400
40x1 + 40x2 > 1200
x1, x2 > 0
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2.4 Solving LP Models
There are two methods to solve LPM:
1.Graphical Method
2.Simplex Method

43
2.4.1 Graphical Method

The graphic method is applicable when we have two decision

variables and the steps include the following:

Step 1: Formulate the mathematical model of the problem

Step 2: Graph the constraints in the plane
Step 3: Identify the area that satisfies the entire set of constraints,
determine corners and their coordinate either from graphing
procedure or by the elimination procedure

44
Con’t
Step 4: Evaluate the objective function at each corner. The

largest value is the maximum and the smallest value is the

minimum. If two corners have the same optimal value, then the
optimum occurs at every point on the line segment joining the
respective corners.

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The Maximization Problem
Example1:- a furniture manufacturing company plans to make
two products hardly, chairs and tables, from its available
resources which consist of 400 cubic feet of mahogany
timber and 450 man hours of labor. It knows that to make a
chair it requires 5 cubic feet of timber and 10 man hours and
yields a profit of Birr 45/chair. To manufacture a table, it
requires 20 cubic feet of timber and 15 man hours and yields
a profit of Birr 80/table. The problem is to determine how
many chairs and tables the company can make keeping within
the resources constraints so that is maximizes the profit.
Formulate L.P.P. model and provide its graphical solution.
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Solution
LPP model
Resource Chair Table Amount Availability
Wood(sqft) 5 20 400
Labor (man hour) 10 15 450

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Con’t
To solve LPP by graphic method
Step 1: Formulate the mathematical model of the
problem
Max θ = 45x1 + 80x2
Subject to: 5X1 + 20X2 < 400
10X1 + 15X2 < 450
x1, x2 > 0

48
Con’t
Step 2: Graph the constraints in the plane
5X1 + 20X2 < 400 i.e. X1 + 4X2 < 80 - - - (a)
10X1 + 15X2 < 450 i.e. 2X1 + 3X2 < 90 - - - (b)
X1, X2 > 0
Converting
(a) and (b) to equality, we get
X1 + 4X2 = 80 . . . . (1) equation 1 (80,20)
2X1 + 3X2 = 90 . . . (2) equation 2 (45,30)

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Con’t

X1 + 4X2 =80

2X1 + 3X2 =90

50
Con’t
Two straight lines intersect at point B. Its coordinates are calculated
as follows:
X1 + 4X2 = 80 (1)
2X1+ 3X2 = 90 (2)
Multiply equation (1) by 2
2X1 + 8X2 = 160
2X1 + 3X2 = 90
Then subtract (2) from (1)
 5X2 = 70 /5, X2 = 14
X1 + 4 × 14 = 80
X1 = 24 i.e. point B in the graph
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Con’t
Step 3: Identify the area that satisfies the entire set of constraints,

determine corners and their coordinate either from graphing

procedure or by the elimination procedure.
Step 4: Evaluate the objective function at each corner. The largest

value is the maximum and the smallest value is the minimum. If

two corners have the same optimal value, then the optimum occurs
at every point on the line segment joining the respective corners.

52
Con’t
Coordinate of corner point Objective function Value
45X1 + 80X2 = Z max
(0, 0) 45 ×0 + 80×0 = 0 0
(0, 20) 0 + 1600 1600
(24, 14) 45 × 24 + 80 × 14 2220
(45, 0) 45 × 45 + 80 × 0 2025

Hence, this maximum profit is obtained at B i.e. 24 chairs and 14 tables and is
equal to 2220.

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The Minimization Problem
Example : Two machines C1 and C2 produce two grades of tyres
A and B. In one hour of operation, machine C1 produces 50
units of grade A and 30 units of grade B tyres while machine
C2 produces 30 units of grade A and 40 units of grade B tyres.
The machines are required to meet a production schedule of at
least 1400 units of grade A and 1200 units of grade B tyres.
The cost of operating machine C1 is $50 per hour and the cost
of operating machine C2 is $80 per hour.
Required
How many hours should each machine operate so that the cost of
production is minimized?
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Con’t
Grade of Tyre Production Production
capacity/hour Schedule

C1 C2
A 50 30 1400
B 30 40 1200
Cost of operation/hr $50 $80

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Con’t
Step 1:- to determine the number of hours the two machines operate in order to minimize
cost, meeting the production requirement.
Step 2:- represent the decision variables
Let x1 be the number of hours machine C 1 should operate
x2 be the number of hours machine C 2 should operates
θ be the total cost
Step 3:- formulate the objective function
Min θ = 50x1 + 80x2
Step 4:- list the constraints
Grade A: 50x 1 + 30x2 > 1400
Grade B: 30x 1 + 40x2 > 1200
Step 5:- non-negativity x 1, x2 > 0

56
Con’t
The complete LPM is
Min θ = 50x1 + 80x2
Subject to:
50x1 + 30x2 > 1400
30x1 + 40x2 > 1200
x1, x2 > 0
Hence : draw a graph and select optimal solution

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2.4.1.1 Graphical Solutions for the Special Cases of LP
1. Unboundedness
2. Infeasibility
3. Redundancies
4. Multiple optimal solutions

58
1. Un boundedness
Unboundedness occurs when the decision variable increased indefinitely
without violating any of the constraints. The reason for it may be
concluded to be wrong formulation of the problem such as incorrectly
maximizing instead of minimizing and/or errors in the given problem.

Example : Max Z = 10X1 + 20X2

Subject to
2X1 + 4X2 > 16
X1 + 5X2 > 15
X1, X2 > 0

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2. Infeasibility
Infeasibility is a condition that arises when there is no solution

to a LP problem that satisfies all the constraints. This problem

occurs when the problem was formulated with conflicting
constraints.
Example: Max Z = 3X1+2X2
Subject to:
2X1 + X2 < 2
3X1 + 4X2 > 12
X1, X2 > 0
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3. Redundancies
In some cases, a constraint does not form a unique boundary of the feasible

solution space. Such a constraint is called a redundant constraint. A constraint is

redundant if its removal would not alter the feasible solution space. Redundancy of
any constraint does not cause any difficulty in solving an LP problems graphically.
Constraints appear redundant when it may be more binding (restrictive) than others.
Example :Max Z=x1 + x2
Subject to
x1+x2<20
2X1+x2<3 0
X1<25
X1, x2>0

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4. Multiple optimal solutions
Recall the optimum solution is that extreme point for which the objective

function has the largest value. It is of course possible that in a given problem
there may be more than one optimal solution.

Example : Max Z = 8X1+16X2

Subject to:

X1 + X2 < 200

3X1 + 6X2 < 900

X2 < 125

X1, X2 > 0

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2.4.2 The Simplex Method
1. Maximization case
The solution steps of the simplex method can be outlined as
follows:
Step1:Formulate the linear programming model of the real world
problem, i.e., obtain a mathematical representation of the problem's
objective function and constraints.

Step2: Express the mathematical model of L.P. problem in the standard

form by adding slack variables in the left-hand side of the constraints
and assign a zero coefficient to these in the objective function.
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Con’t
Example : Maximize Z = C1X1+ C2X2 + ... +CnXn + OS1 + OS2 +... +0Sm
Subject to
a11X1+a12X2+... + a1nxn+s1=b1
a21X1+a22X2+... + a2nXn+S2 = b2
am1Xl + am2 X2 +... + amNxn + Sm = bm
where X1, X2... Xn and S1, S2 ... Sm are non-negative.
Step 3: Design the initial feasible solution. An initial basic feasible solution
is obtained by setting the decision variables to zero.
X1= X2 = ... = Xn = 0. Thus, we get S1 = b1, S2 = b2 ... Sm = bm.

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Con’t
Step 4: Set up the initial simplex tableau. For
computational efficiency and simplicity, the initial
basic feasible solution, the constraints of the standard
LPP as well as the objective function can be displayed
in a tabular form, called the simplex tableau

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Con’t
Cj C1 C2 Cn,…. 00..0 Quantity Ratio
XB/amn
Basic va. CB X1, X2, ... Xn S1 S2 ... Sm
S1 CB1 a11 a12 ... a1n 1 0 ... 0 b1
S2 CB2 a21 a22 ... a2n 0 1 ... 0 b2
S3 CB3 am1 am2.amn 0 0 ... 1 b3
Zj=ΣCBiXj 0 0 ... 0 0 0 ... 0 ΣCBiXj
Cj-Zj C1-Z1 C2-Z2 ... Cn-Zn

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Con’t
 Cj--coefficients of the variables in the objective function.
 X1, X2. Xn----Non-basic variables
 S1, S2... Sm-------basic variables
 Zj entries represent the decrease in the value of objective
function that would result if one of the variables not
included in the solution were brought into the solution.
 Cj-Zj--index row or net evaluation row, is used to
determine whether or not the current solution is optimal or
not

67
Con’t
Step 5. We test if the current solution is optimum or not. If all the
elements or entries in the Cj- Zj row (i.e., index row) are
negative or zero, then the current solution is optimum. If there
exists some positive number, the current solution can be further
improved by removing one basic variable from the basis and
replacing it by some non-basic one. So start trying to improve
the current solution in line with the following steps.
Step 6. Further, iterate towards an optimum solution. To improve
the current feasible solution, we replace one current basic
variable (called the departing variable) by a new non-basic
variable (called the entering variable).

68
Con’t
Step 7. Evaluate the new solution by constructing a second
simplex tableau. After identifying the entering and departing
variable, all that remains is to find the new basic feasible
solution by constructing a new simplex tableau from the
current one.
Step 8. If any of the numbers in Cj - Zj row are positive, repeat
the steps (6-7) again until an optimum solution has been
obtained.
Therefore : A simplex solution in a maximization problem is
optimal if the Cj-Zj row consists of entirely zeros and
negative numbers, i.e. there are no positive values in the row
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Example (Maximization Case)
Max Z = 60X1+50X2
Subject to
4X1+10X2 < 100
2X1+ X2 < 22
3X1+ 3X2 <39
X1, X2 > = 0

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Solution
Step 1: Formulate the linear programming model of the
real world problem i.e mathematical representation .
Step 2: standard form
Max Z = 60X1+50X2+0S1+0S2+0S3
Subject to
4X1+10X2+S1 = 100
2X1+ X2+S2 = 22
3X1+ 3X2+S3 = 39
X1, X2 > = 0

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Con’t
Step 3: Design the initial feasible solution.
X1= X2=0 so S1= 100 S2= 22 S3=39
Step 4: Set up the initial simplex tableau

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Con’t
Cj 60 50 0 0 0 Quantity
Basic V X1 X2 S1 S2 S3
S1 0 4 10 1 0 0 100
S2 0 2 1 0 1 0 22
S3 0 3 3 0 0 1 39

Zj 0 0 0 0 0 0

Cj-Zj 60 50 0 0 0

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Developing the Second Simplex Tableau
Cj 60 50 0 0 0 Quantity
X1 X2 S1 S2 S3
S1 0 4 10 1 0 0 100 100/4= 25
S2 0 2 1 0 1 0 22 22/2= 11
S3 0 32 3 0 0 1 39 39/3=13
Zj 0 0 0 0 0 0
Cj-Zj 60 50 0 0 0

Pivot Row Pivot Column Pivot Element

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Second table
Cj 60 50 0 0 0 Quantity
X1 X2 S1 S2 S3
S1 0 0 8 1 -2 0 56
X1 60 1 1/2 0 1/2 0 11
S3 0 0 3/2 0 -3/2 1 6
Zj 60 30 0 30 0 660
Cj-Zj 0 20 0 -30 0

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Third table
Cj 60 50 0 0 0 Quantity
X1 X2 S1 S2 S3
S1 0 0 0 1 6 -16/3 24
X1 60 1 0 0 1 -1/3 9
X2 50 0 1 0 -1 2/3 4
Zj 60 50 0 10 40/3 740
Cj-Zj 0 0 0 -10 -40/3

Therefore :S1 = 24, X1 = 9, and X2 = 4 producing a

maximum profit of $740.

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2. Minimization case ( Big M-method)
The various steps involved in using simplex method for minimization
problems are:
Step1: Formulate the linear programming model, and express the
mathematical model of L.P. problem in the standard form by introducing
surplus and artificial variables in the left hand side of the constraints.
Assign a 0 (zero) and +M as coefficient for surplus and artificial variables
respectively in the objective function. M is considered a very large number
so as to finally drive out the artificial variables out of basic solution.
Step 2: Next, an initial solution is set up. Just to initiate the solution
procedure, the initial basic feasible solution is obtained by assigning zero
value to decision variables. This solution is now summarized in the initial
simplex table. Complete the initial simplex table by adding two final rows
Z, and Cj- Zj. These two rows help us to know whether the current solution
is optimum or not.
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Con’t
Step 3: Now; we test for optimality of the solution. If all the entries of Cj - Zj,
row are positive, then the solution is optimum. However, this situation may
come after a number of iterations. But if at least one of the Cj - Zj values is
less than zero, the current solution can be further improved by removing
one basic variable from the basis and replacing it by some non-basic one.
Step 4: (i) Determine the variable to enter the basic solution. To do this, we
identify the column with the largest negative value in the Cj - Zj row of the
table.
(ii) Next we determine the departing variable from the basic solution. If an
artificial variable goes out of solution, then we discard it totally and even
this variable may not form part of further iterations. Same procedure, as in
maximization case, is employed to determine the departing variable.

78
Con’t
Step 5: We update the new solution now. We evaluate the entries for
next simplex table in exactly the same manner as was discussed
earlier in the maximization case.
Step 6: Step (3-5) are repeated until an optimum solution is obtained.
So the following are the essential things to observe in solving for
minimization problems:
The entering variable is the one with the largest negative value in
the Cj-Zj row while the leaving variable is the one with the
smallest non-negative ratio.
The optimal solution is obtained when the Cj-Zj row contains
entirely zeros and positive values.

79
Example 1:
Min Z = 7X1+9X2
Subject to
3X1+6X2 > 36
8X1+4X2 > 64
X1, X2 > 0

80
Solution
Step 1: standard form
Min Z = 7X1+9X2+0S1+0S2+MA1+MA2
Subject to
3X1+6X2-S1+A1 = 36
8X1+4X2-S2+A2 = 64
X1, X2 > 0

81
Con’t
Step 2: Initial Simplex Tableau
Cj 7 9 0 0 M M Quantity
X1 X2 S1 S2 A1 A2
A1 M 3 6 -1 0 1 0 36
A2 M 8 4 0 -1 0 1 64
Zj 11M 10M -M -M M M 100M
Cj-Zj 7-11M 9-10M M M 0 0

82
Con’t
Second Simplex Tableau
Cj 7 9 0 0 M Quantity
X1 X2 S1 S2 A1
A1 M 0 9/2 -1 3/8 1 12
X1 7 1 ½ 0 -1/8 0 8
Zj 7 7/2+9/2M -M 3/8M-7/8 M 56+12M
Cj-Zj 0 11/2-9/2M M 7/8-3/8M 0

83
Con’t
Third Simplex Tableau
Cj 7 9 0 0 Quantity
X1 X2 S1 S2
X2 9 0 1 -2/9 1/12 8/3
X1 7 1 0 1/9 -1/6 20/3
Zj 7 9 -11/9 -5/12 212/3
Cj-Zj 0 0 11/9 5/12

Therefore, the optimal solution is: X1 = 20/3 and X2 = 8/3 and value of
objective function is 212/3.

84
 Assignment
1. Duality in LPP
2. Sensitivity Analysis

85
 Integer programming (Reading assignment)
While considering the solution of LPP, we take no care

whether the value of the decision variable is a whole number

or fractional value, though these may still non-negative value.
In certain practical situation , it is imperative that the values of

the decision variable remain integer & non- negative.

For example:

 the number of people employed for various job/ situation

86
Con’t
 number of assembly line for manufacturing situation

 piece of equipment employed in a certain project .

There are two algorithms for finding out the optimal solution for
integer programming problem.
1. Cutting plane algorithm

2. Branch and bound techniques

87
1. Cutting Plane Algorithm
Cutting plane algorithm involves addition of more

constraints under the simple LPP. The optimal

solution of an LPP may not be having integer values,
hence additional constraint help in arriving at a
modified solution.
The steps in Gomory’s cutting plane algorithm can be

summarized as follows:
88
Con’t
Step 1: determine the optimal non-integer solution by using

simplex method of liner programming.

Step 2: apply the Gomory cutting plane –in this process, we

observe the value of the decision variables so obtained. If integer

values have been obtained, optimal solution has been arrived at. If
not, then we construct cut(additional integer constraint) from the
row with non –integer variable with the largest fractional value &
we add it to the original set of constraint .
89
Con’t
Step 3: now we apply Dual simplex method to obtain the

feasible & optimal solution.

Step 4: if there is still non-integer value variable , repeat step

2& 3 to get final solution.

90
Con’t
Example 1 : solve the following integer LPP by using cutting plane

method.

Max Z= 300x1+200x2

Subject to:

2x1+x2< 60

X1< 25

X2< 35

X1,x2 > 0
91
Solution : Optimal simplex table

Cj 300 200 0 0 0 Quantity

Variable X1 X2 S1 S2 S3
X2 200 0 1 0 0 1 35
X1 300 1 0 1/2 0 -1/2 25/2
S2 0 0 0 -1/2 1 1/2 25/2
Zj 300 200 150 0 50
Cj-Zj 0 0 -150 0 -50

92
Con’t
Thus , the optimal solution has been obtained at
X1=25/2
X2=35
Z=10,750
So, we apply cutting plane method
X1+S1/2-S3/2=25/2 ( from X1 row , since X1 has non-integer
value)
Expressing each of the coefficients and RHS into integer and
fractional form , we can convert it into:

93
Con’t
(1+0)X1 +(0+1/2)S1 +(-1+1/2)S3 =(12+1/2)
By transferring the integer coefficients & putting them together.
S1/2+S3/2 =1/2+(12-X1+S3)
since S1,S3 are non-negative ,LHS is totally non-negative
S1/2+S3/2=1/2 +(some integer) or S1/2+S3/2 > 1/2
This is Gomor’s constraint for integer condition. By multiplying
both sides by (-1), we get
 -S1/2-S3/2 < -1/2
 Adding a slack variable -S1/2-S3/2 +S4=-1/2

94
Con’t
According to this new constraints ,the simplex table thus
becomes .
Cj 300 200 0 0 0 0 Quantity
Variables X1 X2 S1 S2 S3 S4
X2 200 0 1 0 0 1 0 35
X1 1 0 1/2 9 -1/2 0 25/2
300
S2 0 0 0 -1/2 1 1/2 0 25/2
S4 0 0 0 -1/2 0 -1/2 1 -1/2
Zj 300 200 150 0 50 0 10750
Cj-Zj 0 0 -150 0 -50 0

95
Con’t
Since all the values of cj-zj are negative or zero, the solution is

optimal . But S4=-1/2, hence the solution is non-feasible. To obtain

feasible solution optimal solution, we now use the dual simplex
method . We select the key Column and key row by following method

Key Column=min[[(cj-zj)/aij ] :aij<=0]

=min [-150/-1/2] : [-50/-1/2]

=min [300,100]

=100 i.e S3 column

96
Con’t
Key row =Min (35,25/2,25/2,-1/2)= (-1/2) i.e S4 row

Therefore, S4 becomes the outgoing variable and S3 the entering

variable. Hence the revised simplex table becomes

97
Con’t
Cj 300 200 0 0 0 0 Quantity
Variables X1 X2 S1 S2 S3 S4
X2 200 0 1 -1 0 0 2 34
X1 300 1 0 1 0 0 -1 13
S2 0 0 0 -1 1 0 1 12
S3 0 0 0 1 0 1 -2 1
Cj 300 200 100 0 0 0 10,700
Cj-Zj 0 0 -100 0 0 -100

98
Con’t
All the value of Cj-Zj being zeros and negative , we arrive at the optimal
solution . The solution is :
X1=13 X2=34
S2=12 S3=1
Hence ; X1=13 X2=34 Z=10700
Exercise
Max z =X1+2X2
Subject to:
x1+2x2 < 12
4x1+3x2 < 14
X1,x2 > 0
99
END
100