I.

Formulation and Simplex method and Graphical method

Question 1:
You have just won a $10,000 prize. You are setting aside $4,000 for taxes and partying expenses, but you have
decided to invest the other $6,000. Upon hearing this news, two different friends have offered you an
opportunity to become a partner in two different entrepreneurial ventures, one planned by each friend. In both
cases, this investment would involve expending some of your time next summer as well as putting up cash.
Becoming a full partner in the first friend’s venture would require an investment of $5,000 and 400 hours, and
your estimated profit (ignoring the value of your time) would be $4,500. The corresponding figures for the
second friend’s venture are $4,000 and 500 hours, with an estimated profit to you of $4,500. However, both
friends are flexible and would allow you to come in at any fraction of a full partnership you would like. If you
choose a fraction of a full partnership, all the above figures given for a full partnership (money investment, time
investment, and your profit) would be multiplied by this same fraction.
Because you were looking for an interesting summer job anyway (maximum of 600 hours) you have decided to
participate in one or both friends’ ventures in whichever combination would maximize your total estimated
profit. You now need to solve the problem of finding the best combination.
Solution:
Formulate a linear programming model for this problem.
Let x 1 be the fraction purchase of the partnership in the first friend’s venture.
Let x 2 be the fraction purchase of the partnership in the second friend’s venture
Maximize profit P=4500 x 1+ 4500 x 2
subject ¿:
x1 ≤ 1
x2≤ 1
5000 x1 + 4000 x 2 ≤6,000
400 x 1 +500 x 2 ≤600
x1 , x2 ≥ 0
Use the graphical method to solve this model. What is your estimated profit?

( ) 2 2
Optimal solution: ( x 1 , x 2 )= , ∧P=6,000.
3 3

Question 2:
Web Mercantile sells many household products through an online catalog. The company needs substantial
warehouse space for storing its goods. Plans now are being made for leasing warehouse storage space over the
next 5 months. Just how much space will be required in each of these months is known. However, since these
space requirements are quite different, it may be 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 for the first month, so it may be less expensive to lease the maximum amount needed for the
entire 5 months. Another option is the intermediate approach of changing the total amount of space leased (by
adding a new lease and/or have and old lease expire) at lease once but not every month.
The space requirement and the leasing costs for the various leasing periods are as follows:
 Month Required space (Sq. Ft.) Leasing period Cost per 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
The objective is to minimize the total leasing cost for meeting the space requirements.
Solution:
Formulate a linear programming model for this problem.
Let x ij be the amount of space leased in month i for a period of j months for i=1 , … ,5∧ j=1 ,… , 6−i
5 4 3 2 1
Minimize cost C=65 ∑ x i 1+100 ∑ x i 2 +135 ∑ xi 3 +160 ∑ x i 4 +190 ∑ xi 5
i=1 i=1 i=1 i=1 i=1
subject ¿:
5

∑ x 1 j ≥ 30,000
j=1
2 6−i

∑∑ x ij ≥20,000
i=1 j=3−i
3 6−i

∑∑ x ij ≥ 40,000
i=1 j=4−i
4 6−i

∑∑ x ij ≥10,000
i=1 j=5−i
5 6−i

∑∑ x ij ≥50,000
i=1 j=6−i
¿ x ij ≥ 0 for i=1 , … , 5∧ j=1 , … ,6−i .
Another formulation way is:

Solve this model by the simplex method.

Question 3:
Larry Edison is the director of the Computer Center for Buckly College. He now needs to schedule the staffing
of the center. It is open from 8 AM until midnight. Larry has monitored the usage of the center at various times
of the day, and determine that the following number of computer consultants are required:
Time of day Minimum number of consultants required to be on
duty
8 AM – noon 4
Noon – 4 PM 8
4 PM – 8 PM 10
8 PM – midnight 6
Two types of computer consultants can be hired: full-time and part-time. The full-time consultants work for 8
consecutive hours in any of the following shifts: morning (8 AM – 4 PM), afternoon (noon-8 PM) and evening
(4 PM – midnight). Full-time consultants are paid $14 per hour. Part-time consultants can be hired to work any
of the four shifts listed in the above table. Part-time consultants are paid $12 per hour. An additional
requirement is that during every time period, there must be at least 2 full-time consultants on duty for every
part-time consultant on duty. Larry would like to determine how many full-time and how many part-time
workers should work each shift to meet the above requirements at the minimum possible cost.
a. Formulate a linear programming model for this problem.
b. Solve this model by the simplex method.
Solution:
Question 4:
Use the graphical method to solve the problem:
Maximize Z=2 x 1 + x 2 ,
subject ¿:
x 2 ≤ 10
2 x1 +5 x 2 ≤ 60
x 1+ x2 ≤18
3 x 1+ x 2 ≤ 44
¿
x1 , x2 ≥ 0
¿ ¿ ¿
Optimal solution: ( x 1 , x 2 )= (13,5 )∧Z =31

II. Simplex method – Big M – Two phase method

Question 1:
Consider the following problem:
Maximize Z=3 x1 +5 x 2+ 6 x3
 subject ¿:
2 x1 + x 2 + x 3 ≤ 4
x 1+ 2 x 2 + x 3 ≤ 4
x 1+ x2 +2 x 3 ≤ 4
x 1+ x2 + x 3 ≤ 3
¿ x1 , x2 , x3 ≥ 0
a. Work through the simplex method in tabular form.
b. Use a computer package based on the simplex method to solve the problem.
Solution:
¿ ¿
( ¿
) 4 4 ¿
Optimal solution: ( x 1 , x 2 , x 3 ) = 0 , , ∧Z =14
3 3
2
3

Question 2:
Consider the following problem
Minimize Z=2 x 1+3 x 2 + x 3 ,
subject ¿:
x 1+ 4 x 2 +2 x 3 ≥ 8
3 x 1+2 x 2 ≥ 6
¿ x1 , x2 , x3 ≥ 0
a. Reformulate this problem to fit our standard form for a linear programming model.
b. Using the Big M method, work through the simplex method step by step to solve the problem.
c. Using the two-phase method, work through the simplex method step by step to solve the problem.
d. Compare the sequence of BF solutions obtained in parts (b) and (c). Which of these solutions are
feasible only for the artificial problem obtained by introducing artificial variables and which are actually
feasible for the real problem?
Solution:
a. Standard form for the linear programming model
Minimize Z=2 x 1+3 x 2 + x 3+ M x 6+ M x 7
 subject ¿:
x 1+ 4 x 2 +2 x 3−x 4 + x6 =8
3 x 1+2 x 2−x 5+ x7 =6
¿ x 1 , x 2 , x 3 , x 4 , x 5 , x 6 , x 7 ≥0
Or
Maximize−Z =−2 x 1−3 x 2−x 3−M x6 −M x 7
subject ¿
x 1+ 4 x 2 +2 x 3−x 4 + x6 =8
3 x 1+2 x 2−x 5+ x7 =6
¿ x 1 , x 2 , x 3 , x 4 , x 5 , x 6 , x 7 ≥0
¿ ¿ ¿ ¿
b. Optimal solution: ( x 1 , x 2 , x 3 ) =( 0.8 ,1.8 , 0 ) ∧Z =7

¿ ¿ ¿ ¿
c. Optimal solution: ( x 1 , x 2 , x 3 ) =( 0.8 ,1.8 , 0 ) ∧Z =7
 d. The basic solutions of the two methods coincide. They are artificial BF solutions for the revised problem
until both artificial variables x 6 and x 7 are driven out of the basis, in which the two-phase method is the
end of Phase 1.

Question 3:
Consider the following problem:
Maximize Z=−2 x1 +2 x 2+ x 3−4 x 4 +3 x 5
subject ¿
x 1−x 2+ x 3 +3 x 4− x5 ≤ 4
x 1−x 2−x 4 + x 5 ≥−1
2 x1 −2 x 2 + x 3 ≤ 2
x 1−x 2+ 2 x 3 + x 4 +2 x5 =2
x1 , x2 , x3 , x4 , x5 ≥ 0

a. Reformulate this problem to fit our standard form for a linear programming model.
b. Using the Big M method, construct the complete first simplex tableau for the simplex method and
identify the corresponding initial (artificial) BF solution. Also identify the initial entering basic variable
and leaving basic variable.
c. Using the two-phase method, construct row 0 of the first simplex tableau for phase 1
Solution:
a.
Maximize Z=−2 x1 +2 x 2+ x 3−4 x 4 +3 x 5−M x9
subject ¿
x 1−x 2+ x 3 +3 x 4− x5 + x 6=4
−x 1+ x2 + x 4 −x5 + x 7=1
2 x1 −2 x 2 + x 3+ x 8 =2
x 1−x 2+ 2 x 3 + x 4 +2 x5 + x 9=2
 x 1 , x2 , x3 , x4 , x5 , x6 , x7 , x 8 , x 9 ≥ 0
b.

c.

III. Revised simplex method – Fundamental insight

Question 1:
Work through the revised simplex method step by step to solve the model given as follows:
Maximize Z=2 x 1−2 x 2+ 3 x 3
subject ¿:
−x 1+ x2 + x 3 ≤ 4(resource 1)
2 x1 −x2 + x 3 ≤ 2(resource 2)
x 1+ x2 +3 x 3 ≤ 12 ( resource3 )
¿ x1 , x2 , x3 ≥ 0
Solution:
Optimal solution: ( x 1 , x 2 , x 3 )= ( 0,1,3 )∧Z=7

Question 2:
Consider the following problem:
Maximize Z=6 x 1+ x 2 +2 x3
subject ¿
1
2 x1 +2 x 2+ x 3 ≤ 2
2
3
−4 x1 −2 x 2− x 3 ≤3
2
1
x 1+ 2 x 2 + x3 ≤1
2
¿ x1 , x2 , x3 ≥ 0
Let x 4 , x5 and x 6 denote the slack variables for the respective constraints. After you apply the simplex method, a
portion of the final simplex tableau is as follows:
Basic Eq. Coefficient of: Right
variabl Z x1 x2 x3 x4 x5 x6 side
e
Z (0) 1 2 0 2
x5 (1) 0 1 1 2
x3 (2) 0 -2 0 4
x1 (3) 0 1 0 -1
Use the fundamental insight to identify the missing numbers in the final simplex tableau. Show your
calculations.
Solution:
Final tableau:

Question 3:
Consider the following problem:
Maximize Z=2 x 1 + 4 x2 +3 x 3
subject ¿:
x 1+ 3 x 2 +2 x3 =20
x 1+ 5 x 2 ≥10
 ¿ x1 , x2 , x3 ≥ 0
Let x 4 be the artificial variable for the first constraint. Let x 5 and x 6 be the surplus variable and artificial
variable, respectively, for the second constraint.
You are now given the information that a portion of the final simplex is as follows:
Basic Eq. Coefficient of: Right
variabl Z x1 x2 x3 x4 x5 x6 side
e
Z (0) 1 M +2 0 M
x1 (1) 0 1 0 0
x5 (2) 0 1 1 -1
Identify the missing numbers in the final simplex tableau. Show your calculations.
Solution:

IV. Duality and sensitivity analysis

Question 1:
Consider the following problem
Maximize Z=2 x 1 +7 x 2+ 4 x 3
subject ¿:
x 1+ 2 x 2 + x 3 ≤ 10
3 x 1+3 x 2 +2 x 3 ≤10
¿ x1 , x2 , x3 ≥ 0
a. Construct the dual problem for this primal problem
b. Use the dual problem to demonstrate that the optimal value of Z for the primal problem cannot exceed
25.
c. Solve the dual problem graphically. Use this solution to identify the basic variables and the non-basic
variables for the optimal solution of the primal problem. Directly derive this solution, using Gaussian
elimination.
Solution:
a.
Minimize W =10 y 1+ 10 y 2
subject ¿
y 1 +3 y 2 ≥ 2
2 y 1+3 y 2 ≥7
y 1 +2 y 2 ≥ 4
y1 , y2 ≥ 0
 b. ( )
0,
5
2
is feasible for the dual problem. Using weak duality, w=10∗0+
10∗5
2
=25≥ Z . So the optimal
primal objective value is less than 25
c. From the dual solution y 2 , y 3 ∧ y 5 are basic, therefore, x 3 , x 5∧x 1 are non-basic primal variable, x 2∧x 4
are basic.
1 1
Graphical solution of dual problem: W =23 ∧( y1 , y 2 )=(0 , 2 )
3 3

Using Gauss elimination:

Question 2:
Consider the following problem:
Minimize Z=−x 1−3 x 2
subject ¿:
x 1−2 x2 ≤ 2
−x 1+ x2 ≤ 4
¿ x1 , x2 ≥ 0
a. Demonstrate graphically that this problem has an unbounded objective function
b. Construct the dual problem
c. Demonstrate graphically that the dual problem has no feasible solutions.
Solution:
 a. Dual:
Maximize 2 y 1+ 4 y 2
subject ¿
y 1− y 2 ≤−1
−2 y 1+ y 2 ≤−3
y1 , y2 ≤ 0
b. As can be seen by the figure below, the dual problem has no feasible solution

Question 3:
Maximize Z=−5 x 1+5 x 2+ 13 x 3 ,
subject ¿:
−x 1+ x2 +3 x 3 ≤ 20
12 x1 + 4 x 2+10 x 3 ≤ 90
¿ x j ≥ 0 ( j=1,2,3 ) .
If we let x 4 and x 5 be the slack variables for the respective constraints, the simplex method yields the following
final set of equations:
( 0 ) Z+2 x 3+ 5 x 4 =100
( 1 )−x 1 + x 2+3 x 3 + x 4=20
( 2 ) 16 x 1−2 x 3−4 x 4 + x 5=10
Now you are to conduct sensitivity analysis by independently investigating each of the following changes in the
original model. For each change, use the sensitivity analysis procedure to revise this set of equations (in tableau
form) and convert it to proper form from Gaussian elimination for identifying and evaluating the current basic
solution. Then test this solution for feasibility and for optimality. (Do not reoptimize.)
a. Change the right-hand side of constraint 1 to b 1=30.
b. Change the right-hand side of constraint 2 to b 2=70
c. Change the right-hand sides to
 d. Change the coefficient of x 3 in the objective function to c 3=8
Solution:
a. Δ b1=10 , Δb 2=0
¿
 Δ Z =( 5 0 ) ( )
10
0
¿
=50; Δ b1=( 1 0 ) ( )10
0
¿
=10; Δ b2=(−4 1 ) ( ) 10
0
=−40
New table:

The current basic solution is infeasible

b. Δ b1=0 , Δ b 2=−20
¿
 Δ Z =( 5 0 ) ( )0
−20
¿
( )
=0 ; Δ b1=( 1 0 )
0
−20
¿
=0 ; Δ b2=(−4 1 ) ( )
10
0
=−20
New table:

The current basic solution is infeasible.

c. Δ b1=−10 , Δb 2=10
¿
 Δ Z =( 5 0 ) ( )
10
; 1 ( )
10
; 2
10 ( )
−10 =−50 Δ b¿ =( 1 0 ) −10 =−10 Δ b¿ =(−4 1 ) −10 =50

New table:

The current basic solution is feasible and optimal

d. Δ c3 =−5
New table:
The current basic solution is feasible and optimal.