More on Simplex Terminologies

and
Computer Solutions
LP Assumptions
Proportionality
Additivity
Divisibility
Certainty (Deterministic)
More on Simplex
In standard form, is =
Add slack to make it =
Initial Tableau

Second Tableau
Current Solution:
T=50 and C=0
T is a basic variable
C is a nonbasic variable
Second Tableau
Resource Information:
S
2
= 40
40 hours of carpentry time is available
Substitution Rates (Column C)
If 1 chair is added, 0.5 units of T & 1 unit of S
2

must be given up.
If T=50, this uses up all 100 hours of painting
time (use T=50 & C=0 in painting constraint)
Substitution Rates (Column S
1
)
If 1 hour of slack painting is added to the current
solution, 0.5 LESS of a table will be produced
If 1 unit of S
1
is added into the solution, 2 hours
of carpentry time will no longer be used.
More on Substitution Rates
Negative substitution rates if 1 unit of a
column variable is added to the solution, the
value of the corresponding solution (or row)
variable will be increased.
Positive substitution rates
Net Profit Row
The value for Column C means that the net profit
can be increased by $15 for each chair added
into the current solution.
The total profit will decrease by $35 if we add S
1
.
Shadow Prices
Cj-Zj values in the slack variable columns
They can be viewed as the potential increase
in profit if one more unit of the scarce
resource could be made available.
Slack is for constraints
Surplus if for constraints
How about =
How can these be converted to standard
form?
Constraints



Surplus is also known as a negative slack
But this violates the nonnegativity constraint,
so there is a need to add an artificial variable


Take note of the equality and inequality signs


= Constraints




Equality also needs artificial variables

Start with the constraints and add slack,
surplus and artificial variables in the objective
function last

Do not forget the zeroes



Practice

Practice

Answer

Using the Computer
No need to convert to standard form when
using the computer

Install
QM Software
http://wps.prenhall.com/bp_render_qam_11/
197/50552/12941493.cw/index.html

The Users Manual is uploaded in the class
website.



1. Click Module
2. Choose Linear Programming
3. Click File then New
This will show up









No need to include non-negativity constraints
LP Formulation





How about Simplex?
Go to Windows
Choose Iterations

Group Homework
Install QM in your computers
Answer all the Simplex Problems (PDF file from
class website) and the Internet Homework
Problems (Graphical Solution) using QM
Print screen and show the solutions (graph &
iterations only)
Submit through email [cover page with group
names and section, PDF file on or before class on
June 24 (K37 & 38) or June 25 (K31,32 & 33)]
Group Term Paper
Submission on August 22, 2014 before 9 a.m.
through email (PDF file)
See syllabus (found in class website)
One company (any size)
Application of at least THREE Management
Science techniques (LP, Transportation,
Assignment, Project Management, Decision
Analysis)
Use QM to solve problems


Group Term Paper


Include a picture of the group and the company representative(s). The
picture should be taken in front of a distinctive company logo.
Practice Converting to Standard Form