Question

Linear programming problems are generally used to maximize the utilization of recourses either to maximize the profit or to minimize the total cost of a manufacturer. Discuss the procedure of solving a linear programming problem. Consider the following situation. Sky Ltd. has two products Cloud and Wind. To produce one unit of Cloud, 2 units of material X and 4 units of material Y are required. To produce one unit of Wind, 3 units of material X and 2 units of material Y are required. As the raw material X is in short supply so not more than 16 units of material X can be used. Atleast 16 units of material Y must be used in order to meet the committed sales of Cloud and Wind. Cost per unit of material X and material Y are Rs. 2.50 and Rs. 0.25 respectively. The selling price per unit of cloud and wind are Rs. 12 and Rs. 16 respectively. You are required to formulate mathematical model, and to solve it for maximum contribution.
The simplex method The simplex method is an algebraic iterative procedure which either solves an LPP in a finite number of steps or gives an indication that there is an unbounded solution to the LPP. The simplex method admits one of the edges lying on the feasible region and tests whether an improvement in the objective function is possible by moving to an adjacent edge of the feasible region. If an improvement is possible, new edge is tested to see whether further improvement can be made. When this leads to a solution where no further improvement is possible by moving to an adjacent edge, it is concluded that an optimal solution is reached. Although this procedure is of trial and error edge, it is systematic because of the following features: a) After each step, the next step is determined by taking into consideration the result of the just completed trial. b) The procedure ensures that each trial will give the values which are closer to the answer. c) The procedures guarantees that either the optimal solution is reached in a finite number of steps or it given an unbounded solution. Step 1. Formulation of LPP. Identify the objective function and constraints of the given problem. Express the objective function, constraints and non-negative restrictions in the format of linear programming problem. Step 2. Standardise the LPP. Introduce slack variables on the left-hand side of the constraints to convert inequalities into equations. Assign zero coefficients to the slack variables in the objective function. The reformulated LPP is in its standard form. Step 3. Determine the Initial Solution. The initial feasible solution is obtained by assigning zero value to all the decision variables just to initiate the solution procedure from the origin. Step 4. Set up the Initial Tableau. Consider the objective function as one of the constraint equations and transfer all the variables on left-hand side so that the right hand side becomes zero.

To set up the tableau, we first list horizontally all the variables contained in the problem. Next, the coefficients in the constraint equations are written listing vertically the coefficients under their respective variables. It may be noted that each of the slack variables appear only in one equation. Therefore, the coefficient of each of the slack variable is taken to be zero in all the equations except the one in which it appears. After putting the coefficients, the constraint values are mentioned on the right-hand side against the rows. The last column of this tableau gives the current basic feasible solution, while the last row represents to the coefficient in the objective function known as index row numbers. First column gives the variables of product mix ( or basic variables ) whose values are given in the last column. Step 5. Test the Solution for Optimality. Examine the index row of the simplex tableau obtained in step 4. If all the index numbers are non-negative, the current solution is optimum. If at least one index number is negative, the current solution can be further improved by removing one basic variable and replacing it by some non-basic one. Step 6. Locate Scope for Improvement. To locate scope for improvement, the following steps are performed: (a) Choose the largest negative index number. The column corresponding to this number determines the key column and the non-basic variable corresponding to this enters the basic=s, i.e., becomes basic variable in the next iteration. (b) Examine the elements in the key column. If they are all negative, the problem has an unbounded solution. Otherwise, determine the non-negative ratios by dividing each element in the last column ( current solution ) by the corresponding positive element in the key column. The row corresponding to the smallest of these ratios determines the key row. The non-basic variable corresponding to key row leaves the basis, i.e., becomes a non-basic variable in the nest iteration. (c) The element at the intersection of key column and key row is termed as key number ( or pivotal element). This number is always a non-zero positive element. Step 7. Derive the Revised Tableau for Improved Solution. Use the key number to arrive at a new basic feasible solution by systematically transforming the simplex tableau with the aid of Gauss-Jordan complete elimination procedure. The procedure involves the following two types of computations: (a) Divide each element of the key row ( including current solution) by key number to get the corresponding value in the new tableau. The row of values so derived is called the replacement row. (b) For each row other than the key row, the new values for each of the remaining rows (including index row) are computed by using the formula: New row element Old row element Row element in the column Corresponding replacement row value

Step 8. Go to step 5 and repeat the computational procedure until all the index numbers ( exclusive of current solution column ) are non-negative, i.e., an optimum solution has been attained when no negative number exists in the index row. Step 9. After obtaining the optimum solution, interpret the solution for implementation.