MATHEMATICS: LINEAR REGRESSION Step 3. Formulate the objective function.

This is what
SIMPLEX METHOD you want to maximize or minimize.

The objective is decided how many of each tent model

Example: Tent Production should be produced each day to maximize profit.

A manufacturer of lightweight mountain tents Objective function:

makes a standard model and expedition model for Max P= 500x + 800y
national distribution. Each standard tent requires 1
labor hour from the cutting department and 3 labor
hours from the assembly department. Each expedition Step 4. Formulate the constraints inequalities. These
tent requires 2 labor hours from the cutting department are expressions that limit the amount of resources you
and 4 labor hours from the assembly department. The can use and the restrictions of your constraints
maximum labor hours available per day in the cutting variables.
and assembly department are 32 and 84 respectively. If
the company makes a profit of P500 on each standard Cutting dept. Constraints
tent and P800 on each expedition tents, how many tents Daily cutting Daily cutting Maximum
of each type should be manufactured each day to time for time ≤ labor hours
standard + for expedition per day in
maximize the total daily profit? (Assuming all tents tents tents cutting dept.
can be sold) or 1x + 2y ≤ 32

Daily cutting Daily cutting Maximum

Step 1. Read the problem carefully. If appropriate, time for time ≤ labor hours
standard + for expedition per day in
organize the data into a table.
tents tents assembly
Standard Expedition Maximum dept.
Model Model labor or 3x + 4y ≤ 84
(Labor (Labor (hrs/day)
hrs/day) hrs/day) Non negativity constraints (Since it is not possible to
Cutting 1 2 32 produce negative quantities of tents.)
department X ≥ 0 and Y≥ 0 or X,Y ≥ 0
Assembly 3 4 84
department Mathematical Model
Profit/tent P500 P800 Maximize P=500x + 800y objective function
Subject to: X + 2Y ≤ 32 problem constraints
3X + 4Y ≤ 84
Step 2. Determine and define the variables. Those
X, Y ≥ 0 non negative constraints
variables represents the unknown quantities whose
values are what you want to find.

Let: x= n of standard tents produced per day

y= n of expedition tents produced per day
p= total daily profit.
Exercise 1: obtain 1. Also obtain zeros for all rest entries in
A woodworker produces tables and chairs. The pivot column.
manufacturer of these products involves three-basic 8. Perform row operation using Pivoting Method.
operations, namely (a) cutting, (b) assembly and (c)
finishing. The woodworker profits P75 for each table Examples: TENT PRODUCTION PROBLEM
and P50 for each chair. Each table requires 1.25 hours Maximize: P= 500x1 + 800x2
in cutting department, 1 hour in assembly department Subject to: x1 + 2x2 ≤ 32
and 1.5 hours in finishing department while each chair 3x1 + 4x2 ≤ 84
requires 1 hour in cutting department, 0.5 hours in X1- X2 ≥ 0
assembly department and 2 hours in finishing The new LP problem:
department. Since the woodworker’s products are in Maximize: P= 500x1 + 800x2 + 0S1 + 0S2
demand, there are no limits in the number of products P-500x1 - 800x2 - 0S1 - 0S2 = 0
her can sell. Suppose a maximum 72 work hours per day Subject to: x1 + 2x2 + S1 = 32
is available for cutting, 50 work hours per day for 3x1 + 4x2 + S2 = 84
assembly and 120 work hours per day for finishing. X1, X2, S1, S2 ≥ 0
How many of each product should he manufacture in
order to maximize profit? Initial Tableau:
Maximize: P= 500x1 + 800x2 + 0S1 + 0S2
SIMPLEX METHOD P-500x1 - 800x2 - 0S1 - 0S2 = 0
- A mathematical procedure for solving linear Subject to: x1 + 2x2 + S1 = 32
programming problems. 3x1 + 4x2 + S2 = 84
- Simplex method can handle two or more X1, X2, S1, S2 ≥ 0
decision variables. Basic P X1 X2 S1 S2 RHS
- It was developed by George B. Dantzig of S1 0 1 2 1 0 32
Stanford U. S2 0 3 4 0 1 84
P 1 -500 -800 0 0 0
Steps:
1. Determine the objective function. Basic P X1 X2 S1 S2 RHS
2. Write down all necessary constraints. S1 0 1 2 1 0 32
3. Convert each constraint into an equation by S2 0 3 4 0 1 84
adding a slack variable. P 1 -500 -800 0 0 0
4. Set up the initial simplex tableau.
5. Select pivot column by finding the most negative Pivot Column Pivot Row
Basic Variable
indicator. (Indicators are those elements in
bottom row.)
6. Select pivot row. (Divide the last column by Smallest Positive Ratio Entering Variable: X2
pivot column for each corresponding entries. Leaving Variable: S1
42 ÷2 =16
Choose the smallest positive result. The 84 ÷4 = 21
corresponding row is the pivot row. In case there
is no positive entry in pivot there is no optimal
solution.) Initial Solution:
7. Find pivot: Circle the pivot entry at the S1 =32 X1 = 0
intersection of the pivot column and the pivot S2 = 84 X2 = 0
row, and identify entering variable and exit P = 0
variable. Divide pivot by itself in that row to
First Iteration New LP Problem:
Basic P X1 X2 S1 S2 RHS P- 100x1 – 300x2 – 200x3 – 0S1 – 0S2 – 0S3=0
S1 0 1 2 1 0 32 X1 + X2 + X3 + S1 = 100
S2 0 3 4 0 1 84 40x1 + 20x2 + 30x3 + S2 = 3200
P 1 -500 -800 0 0 0 X1 + 2x2 + X3 + S3 = 160
3-[(4) (1) ÷ 2] 1-[(0) (4) ÷ 2]
X1, X2, X3, S1, S2, S3 ≥ 0
Basic P X1 X2 X3 S1 S2 S3 RHS
84-[(4) (32) ÷ 2]
0-[(0) (4) ÷ 2] 0-[(4) (1) ÷ 2] S1 0 1 1 1 1 0 0 100
S2 0 40 20 30 0 1 0 3200
Basic P X1 X2 S1 S2 RHS S3 0 1 2 1 0 0 1 160
X2 0 1/2 1 1/2 0 16 P 1 - -300 -200 0 0 0 0
S2 0 1 4 -2 1 20 100
P 1 -100 0 400 0 12,800
Initial Tableau:
1-[(0) (-800) ÷ 2] 0-[(-800)(1) ÷ 2] Basic P X1 X2 X3 S S S3 RHS
1 2
-500-[(-800) (1) ÷ 2] 0-[(-800)(0) ÷ 2] S1 0 1 1 1 1 0 0 100
S2 0 40 20 30 0 1 0 3200
0-[(-800)(0) ÷ 2]
S3 0 1 2 1 0 0 1 160
Second Iteration:
P 1 -100 -300 -200 0 0 0 0
Basic P X1 X2 S1 S2 RHS Smallest positive ratio:
X2 0 0 1 3/2 -1/2 6 100 ÷ 1 = 100
X1 0 1 0 -2 1 20 3200 ÷ 20 = 160
P 1 0 0 200 100 14,800
160 ÷ 2 = 60
Smallest positive ratio:
16 ÷ ½ = 32
Entering variable: X2
20 ÷ 1 = 20
Leaving variable: S3
Entering variable: X1
First Iteration:
Leaving variable: S2
Basic P X1 X2 X3 S1 S2 S3 RHS
S1 0 1/2 0 1/2 1 0 -1/2 20
Optimal Solution S2 0 30 0 20 0 1 -10 1600
X2 = 6 S1 = 0 X2 0 1/2 1 1/2 0 0 1/2 80
X1 = 20 S2 = 0 P 1 50 0 -50 0 0 150 24000
MaxP= 14,800 Smallest positive ratio:
20 ÷ 1/2 = 40
Solve the following linear programming problem 1600 ÷ 20 =80
using simplex method. 80 ÷ 1/2 = 160
Entering variable: X3
Maximize P=100x1 + 320x2 + 200x3 Leaving variable: S1
Subject to: x1 + x2 + x3 ≤ 100
40x1 + 20x2 + 30x3 ≤ 3200
x1 +2x2 + x3 ≤ 160
x1, x2, x3 ≥ 0
Second Iteration:
Basic P X1 X2 X3 S1 S2 S3 RHS
X3 0 1 0 1 2 0 -1 40
S2 0 10 0 0 -40 1 10 800
X2 0 0 1 0 -1 0 1 60
P 1 100 0 0 100 0 0 100

Optimal Solution:
X3 = 40 X1 = 0
S2 = 800 S1 = 0
X2 = 60 S3 = 0

MaxP= 26,000