Maximize π = 20T +15C +15B

subject to 10T +3C +10B ≤100

5T + 5C + 5B ≤ 60
T, B,C ≥ 0
T* = 9 1/7 or 9.1429 ; C* = 2 6/7 or 2.8571; B* = 0
VOF (y*) = 225.7143

Min C =100y1 + 60y2

subject to 10y1 + 5y2 ≥ 20
3y1 + 5y2 ≥15
10y1 + 5y2 ≥15
y1, y2 ≥ 0
y1* = 5/7 or 0.7143 y2* = 18/7 or 2.5714
VOF (y*) = 225.7143
 Surplus (table) Surplus (chair)
y1 = 5/7 1/7 -1/7
y2 = 18/7 -3/35 2/7

shadow price of variable

Improvement ratio =
exchange coefficient in variable row

Improvement raDo for y1

Exchange Shadow Improvement

coefficient price ratio
y1 1/7 64/7 64
y2 -1/7 20/7 -20
 Improvement raDo for y2

Exchange Shadow Improvement

coefficient price ratio
y1 -3/35 64/7 -106 2/3
y2 2/7 20/7 10

VARIABLE IN THE ORIGINAL SOLUTION

Lower obj coefficient sensi/vity limit = Original level -
smallest posi/ve ra/o or -∞ (if no ra/o is posi/ve)
Upper obj coefficient sensi/vity limit = Original level +
smallest absolute value of nega/ve ra/o or ∞ (if no ra/o is nega/ve)
Objective Allowable Allowable
coefficient increase decrease
100 20 64
60 106 2/3 10
 Maximize π = 20T +15C +15B
subject to 10T +3C +10B ≤100
5T + 5C + 5B ≤ 60
T, B,C ≥ 0
T* = 9 1/7 or 9.1429 ; C* = 2 6/7 or 2.8571; B* = 0
VOF (y*) = 225.7143

Objective Allowable Allowable

coefficient increase decrease
20 30 5
15 5 9
15 5 inf
 REDUCED COST
- Difference between per-unit amount the product contributes
to profits and the per-unit value of the resources it consumes

SIMULTANEOUS CHANGES IN OBJECTIVE FUNCTION COEFFICIENTS

•  Variables with nonzero reduced costs
•  At least one variable has zero reduced cost
$ Δc j Current solu/on s/ll
& if Δc j ≥ 0 op/mal if ∑ r ≤ 1
& Ij
j

rj = % If ∑ rj > 1
& −Δc j if Δc < 0 the current solu/on may
& D j
' j remain, but it is not
guaranteed.
 Maximize P = 10x1 +15x2 + 20x3
subject to
2x1 + 3x2 + 4x3 ≤ 100
4x1 + 2x3 ≥ 50
− 5x2 + 5x3 ≥ 20
x1 + x2 + x3 = 20
x1, x2 , x3 ≥ 0

a)  If the selling price of product 2 can be increased, what is the

greatest new price at which it s/ll might be op/mal not
produce it?
a)  If the selling price of product 2 can be increased to 55,
determine the new op/mal solu/on.
Example of degenerate problem: bounding face solution
min C = wL + rK
subject to
w + 2r ≥ 1
2w + r ≥ 1
1.25 w + 1.25 r ≥ 1
w, r ≥ 0
r

w
Difficulties encountered in employing the simplex
method when the problem is degenerate:

a) Two or more quotients share the distinction of being the

smallest, so that two or more rows are eligible as pivot rows.

b) Each pivot step fails to improve the value of the objective

function.
Max 3x1 + 2x2 Min -3x1 – 2x2
Subject to Subject to
x1 ≤ 4 x1 + x3 =4
x2 ≤ 6 x2 + x4 =6
3x1 + 2x2 ≤ 18 3x1 + 2x2 +x5 = 18
x1, x2 ≥0 x1, x2 ≥0
x2

(2, 6)

(4,3)

x1
Tableau 1
x1 x2 x3 x4 x5 RHS
-3 -2 0 0 0 0
1 0 1 0 0 4
0 1 0 1 0 6
3 2 0 0 1 18

Tableau 2

x1 x2 x3 x4 x5 RHS
0 -2 3 0 0 12
1 0 1 0 0 4
0 1 0 1 0 6
0 2 -3 0 1 6
Tableau 3
x1 x2 x3 x4 x5 RHS
0 0 0 0 0 18
1 0 1 0 0 4
0 0 3/2 1 -1/2 3
0 1 -3/2 0 1/2 3

Tableau 4
x1 x2 x3 x4 x5 RHS
0 0 0 0 1 18
1 0 0 -2/3 1/3 2
0 0 1 2/3 -1/3 2
0 1 0 1 0 6
DEGENERACY

Difficulties encountered in employing the simplex

method when the problem is degenerate:

a) Two or more quotients share the distinction of being the

smallest, so that two or more rows are eligible as pivot rows.

b) Each pivot step fails to improve the value of the objective

function.
DEGENERACY I
•  Tie in minimum coefficient or minimum ra/o
•  Allowable increase or decrease of constraint constant is zero
•  May cause circling phenomenon

•  Consequences:
a)  Reduced costs for the variable cells may not be unique.
b)  Allowable increases and decreases for the objec/ve
func/on coefficients s/ll hold, and in fact, the
coefficients may have to be changed substan/ally
beyond the allowable increase and decrease limits
before the op/mal solu/on changes
c)  Shadow prices and their ranges may not be unique.
Example:
Maximize 3x1 + 9x2
subject to
x1 + 4x2 ≤ 8
x1 + 2x2 ≤ 4
x1, x2 ≥ 0


DEGENERACY II: INFINITE NUMBER OF SOLUTIONS
- Allowable increase or allowable decrease in one of the
coefficients of the objec/ve func/on is zero

-  Alterna/ve solu/on can be generated:

a)  Add a constraint that holds the objec/ve func/on at
the current op/mal solu/on
b)  Maximize or minimize the value of one of the
decision variables that had an objec/ve func/on
coefficient with an allowable increase or decrease of
zero.

Example:
Maximize x1 + 2x2
subject to 2x1 + 4x2 ≤ 12
4x1 + 3x2 ≤ 24
x1, x2 ≥ 0