1 Beginning the Simplex

1.1 Objective function

X X X
maximize: Z = a i xi = Z ai xi + M xj = 0

1.2 Less than Inequality

X X
bi xi ci = bi xi + sj = ci

1.3 Equality
X X
bi xi = ci = bi xi + xj = ci

1.4 Greater than Inequality

X X
bi xi ci = bi xi sj + xk = ci

Initial Simplex Tableau

Big M Method
P P
Z P ai xi +M xj =0 (obj)
P bi x i +sk = ci ()
P bi x i +xk = ci (=)
bi x i sk +xm = ci ()
| {z } | {z } | {z } | {z }
constraints slack vars surplus vars artificial vars

Two Phase Method

Phase I:
Z
P
P xj =0 (obj)
P bi x i +sk = ci ()
P bi x i +xk = ci (=)
bi x i sk +xm = ci ()
| {z } | {z } | {z } | {z }
constraints slack vars surplus vars artificial vars

Phase II: P
Z P ai xi =0 (obj)

P bi xi +sk = ci ()
P i xi
b = ci (=)
bi xi sk = ci ()

2 Project
Web Mercantile, LLC., sells household products through an on-line catalog. The company needs substantial warehouse space for
storing its goods. Plans now are being made for leasing warehouse storage space for the next 6 months. Just how much space
will be required in each of these months is known. However, since the space requirements are quite different, it may be the most
economical to lease only the amount needed each month on a month-by-month basis. On the other hand, the additional cost for
leasing space for additional months is much less than the first month, so it may be less expensive to lease the maximum amount
needed for the entire 6 months. Another option is the intermediate approach of changing the total amount of space leased (by adding
a new lease and/or having an old lease expire at least once, but not every month.
The space requirements and the leasing costs for the various leasing periods are as follows:

Required Leasing Period Cost per Sq. Ft.

Month
Space (Sq. Ft.) (Months) Leased
1 30,000 1 $ 65
2 20,000 2 $100
3 40,000 3 $135
4 10,000 4 $160
5 50,000 5 $190
6 30,000 6 $215
The objective is to minimize the total leasing cost for meeting the space requirements.
(H INT: Let xij be the number of 1,000s of sq ft leased beginning in month i with duration j months.)
Answer
6 5 4 3 2
Cost d 65$ >x
i=1
i, 1
C 100$ >x
i=1
i, 2
C 135$ >x
i=1
i, 3
C 160$ >x
i=1
i, 4
C 190$
i=1
>x i, 5
C 215$x1, 6 :

Constraints d
6

>x
i=1
1, i
R 30,
6 5

>x
i=2
1, i
C >x
i=1
2, i
R 20,
6 5 4

>x
i=3
1, i
C >x
i=2
2, i
C >x
i=1
3, i
R 40,
6 5 4 3

>x
i=4
1, i
C >x
i=3
2, i
C >x
i=2
3, i
C >x
i=1
4, i
R 10,
6 5 4 3 2

>x
i=5
1, i
C >x
i=4
2, i
C >x
i=3
3, i
C >x
i=2
4, i
C >x
i=1
5, i
R 50,

x1, 6 C x2, 5 C x3, 4 C x4, 3 C x5, 2 C x6, 1 R 30 :

soln d Optimization LPSolve Cost, Constraints, assume = nonnegative :

soln 2 d fnormal soln 2 , 2
x1, 1 = 0., x1, 2 = 0., x1, 3 = 0., x1, 4 = 0., x1, 5 = 0., x1, 6 = 30., x2, 1 = 0., x2, 2 = 0., x2, 3 = 0., x2, 4 (1)
= 0., x2, 5 = 0., x3, 1 = 10., x3, 2 = 0., x3, 3 = 0., x3, 4 = 0., x4, 1 = 0., x4, 2 = 0., x4, 3 = 0., x5, 1
= 20., x5, 2 = 0., x6, 1 = 0.
cost d evalf soln 1 , 6
8400.00 (2)
leases d select y/ rhs y O 0 , soln 2
x1, 6 = 30., x3, 1 = 10., x5, 1 = 20. (3)
eval Constraints, soln 2
30 % 30., 20 % 30., 40 % 40., 10 % 30., 50 % 50., 30 % 30. (4)