POM 104 M.

Tan
Linear Programming Formula Sheet
Step 1: Define your variables.
Step 2: Set you objective function.
Maximization ( revenues, profit )
or
Minimization (cost)?
Step 3: Determine your constraints. Include the nonnegativity constraint and do not forget to label the other
constraints.
Note: The number of constraints (excluding the
non-negativity constraint) should be equal to or greater
than the number of decision variables.
Step 4: Convert the constraints from a system of
inequalities to a system of equations by the introduction
of additional variables.
When constraints bears the < sign, add +S.
When constraints bears the > sign, add -S +A.
When constraints bears the = sign, add +A.
Step 5: Expand the objective function based on the
variables added to the constraints. All slack variables
(either +S or S) should be given 0 coefficients because
they do not contribute to increasing revenues/profits or in
decreasing costs. On the other hand, all artificial
variables should be given M coefficients. M represents a
very large cost. By assigning M coefficients to the
artificial variables, we can be sure that the artificial
variable will not be part of the optimal solution. M has a
negative coefficient for maximization problems while M
has a positive coefficient for minimization problem.
Step 6: Set up the initial tableau.
a. List all the variables in the transformed
objective function horizontally.
b. List the coefficients of each variable above by
copying the numbers from the transformed
objective function. This will constitute your C
row.
c. List all positive slack variables and artificial
variables vertically on the left side of the
matrix.
d. List their coefficients on their left side.
e. Fill up the matrix by copying the numbers from
the transformed constraints.
f. Label the last column as solution quantities or
right-hand-side (RHS) values.
g. The Z row comes after the matrix. To compute
the Z values, multiply the coefficients of the
variables in solution by the matrix values and
sum within columns.
h. The C-Z row comes after the Z row.
Values in this row are computed by subtracting
the Z value in each column from the C value in
the same column.
Note:
For maximization problems, we will
know that we have reach optimality once all the
values in the C-Z row are 0 or negative.

i. Determine which variable will enter into the solution

mix next.
For maximization problems, we need to
identify the largest positive number in the CZ row. After doing so, we box the column
containing this largest positive number. The
variable in that column is our entering
variable.
j. Determine which variable to replace, e.g. the leaving
variable by using the following formula:
Right-Hand-Side (RHS) value
---------------------------------------------------------Corresponding value in the EV column
The row with the smallest nonnegative
number calculated using this equation will be
the row of the leaving variable. Box this row.
Step 7: Develop the succeeding tableau.
a. List all the variables horizontally.
b. List the coefficients of each variable above it.
c. List the entering variable in place of the leaving
variable. Copy the remaining variables vertically.
d. List their coefficients on their left.
e. Take note of the pivot element in the preceding
tableau. The pivot element is the intersection of the
EV column and the LV row, which can also be
referred to as the pivot column and the pivot row.
f. Divide all the elements in the pivot row by the pivot.
This will be your new main row. List these
elements in the matrix.
g. For the remaining rows, focus on the pivot column.
Get the intersectional element, the element that is
at the intersection of the row and the pivot
column.
Multiply each value in the new main row by the
intersectional element.
Subtract the resulting values, column by column,
form the current row values.
List the answers in the new matrix.
h. Compute Z values and lest answers in the C-Z row.
i. Choose the EV.
j. Choose the LV.
Step 8: Repeat Step 7 until you reach optimality.

Production & Operations Management

M. Tan

SENSITIVITY ANALYSIS FOR LINEAR PROGRAMMING

For Decision Variables Variables that either enter the solution set or not
1. Range of Optimality indicates the changes with the coefficient of the variable that do not affect the optimal
solution quantities.
Divide the elements of the C-Z row with the corresponding elements in the variables row.
Element in C-Z row (Last Row)

Ratio = ------------------------------------------------------------Corresponding Element in Decision Variable Row

Positive ratio closest to 0 = amount that the coefficient of the variable can increase w/o affecting the
optimal solution quantities.
Negative ratio closest to 0 = amount that the coefficient of the variable can decrease w/o affecting the
optimal solution quantities.
Range : Variable Negative Ratio to Variable + Positive Ratio
Range of numbers such that decision variables will always be within solution set
2. Range of Insignificance: ( Always in Reference with C )
For Maximization Problems: (-) Negative Infinity to Related Z Value
For Minimization Problems: Related Z Value to (+) Positive Infinity
For Slack Variables Variables that are based on the constraints
Range of numbers such that decision variables will never be within solution set
3. Shadow Prices: Indicates how much a one-unit decrease in the original value of a constraint would decrease the
final value of the objective function. It corresponds to the VALUE OF SLACK VARIABLE
IN ITS C-Z COLUMN.
Price of one unit slack variable
4.

Range of Feasibility: Refers to the range of right hand side values of a constraint where the shadow prices
remain valid.
Identify the related slack variable column values, and divide the elements of the RHS with the
corresponding values in the slack variable column.
Number of units increase/decrease in slack variable w/o affecting the solution set

Element in RHS

Ratio = -----------------------------------------------Element in Slack Variable Column

Positive ratio closest to 0 = amount that the original constraint (in units) can decrease
Negative ratio closest to 0 = amount that the original constraint (in units) can increase both w/out affecting
the effects of the shadow price.