Converting the Model into Standard Form Page 1 of 5
[Page A-2 (continued)]
Converting the Model into Standard Form
The first step in solving a linear programming model manually with the simplex method is to
convert the model into standard form. At the Beaver Creek Pottery Company Native American
artisans produce bowls (x1) and mugs (x2) from labor and clay. The linear programming model
is formulated as
We convert this model into standard form by adding slack variables to each constraint as
follows.
[Page A-3]
The slack variables, s1 and s2, represent the amount of unused labor and clay, respectively. For
example, if no bowls and mugs are produced, and x1 = 0 and x2 = 0, then the solution to the
problem is
x1 + 2x2 + s1 = 40
0 + 2(0) + s1 = 40
s1 = 40 hr of labor
and
4x1 + 3x2 + s2 = 120
4(0) + 3(0) + = 120
s2
s2 = 120 lb of clay
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Slack variables are added to constraints and represent unused resources.
In other words, when we start the problem and nothing is being produced, all the resources are
unused. Since unused resources contribute nothing to profit, the profit is zero.
Z = $40x1 + 50x2 + 0s1 + 0s2
= 40(0) + 50(0) + 0(40) + 0
(120)
Z = $0
It is at this point that we begin to apply the simplex method. The model is in the required form,
with the inequality constraints converted to equations for solution with the simplex method.
The Solution of Simultaneous Equations
Once both model constraints have been transformed into equations, the equations should be
solved simultaneously to determine the values of the variables at every possible solution point.
However, notice that our example problem has two equations and four unknowns (i.e., two
decision variables and two slack variables), a situation that makes direct simultaneous solution
impossible. The simplex method alleviates this problem by assigning some of the variables a
value of zero. The number of variables assigned values of zero is n m, where n equals the
number of variables and m equals the number of constraints (excluding the nonnegativity
constraints). For this model, n = 4 variables and m = 2 constraints; therefore, two of the
variables are assigned a value of zero (i.e., 4 2 = 2).
For example, letting x1 = 0 and s1 = 0 results in the following set of equations.
x1 + 2x2 + s1 = 40
4x1 + 3x2 + s2 = 120
and
0 + 2x2 + 0 = 40
0 + 3x2 + s2 = 120
First, solve for x2 in the first equation:
2x2 = 40
x2 = 20
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Then, solve for s2 in the second equation:
3x2 + s2 = 120
3(20) + s2 = 120
s2 = 60
This solution corresponds with point A in Figure A-1. The graph in Figure A-1 shows that at
point A, x1 = 0, x2 = 20, s1 = 0, and s2 = 60, the exact solution obtained by solving
simultaneous equations. This solution is referred to as a basic feasible solution. A feasible
solution is any solution that satisfies the constraints. A basic feasible solution satisfies the
constraints and contains as many variables with nonnegative values as there are model
constraintsthat is, m variables with nonnegative values and n m values set equal to zero.
Typically, the m variables have positive nonzero solution values; however, when one of the m
variables equals zero, the basic feasible solution is said to be degenerate. (The topic of
degeneracy will be discussed at a later point in this module.)
Figure A-1. Solutions at points A, B, and C
A basic feasible solution satisfies the model constraints and has the same number
of variables with non-negative values as there are constraints.
Consider a second example where x2 = 0 and s2 = 0. These values result in the following set of
equations.
x1 + 2x2 + s1 = 40
4x1 + 3x2 + s2 = 120
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and
x1 + 0 + s1 = 40
4x1 + 0 + 0 = 120
Solve for x1 :
4x1 = 120
x1 = 30
Then solve for s1:
30 + s1 = 40
s1 = 10
This basic feasible solution corresponds to point C in Figure A-1, where x1 = 30, x2 = 0, s1 =
10, and s2 = 0.
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Finally, consider an example where s1 = 0 and s2 = 0. These values result in the following set of
equations.
x1 + 2x2 + s1 = 40
4x1 + 3x2 + s2 = 120
and
x1 + 2x2 + 0 = 40
4x1 + 3x2 + 0 = 120
These equations can be solved using row operations. In row operations, the equations can be
multiplied by constant values and then added or subtracted from each other without changing
the values of the decision variables. First, multiply the top equation by 4 to get
4x1 + 8x2 = 160
and then subtract the second equation:
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Next, substitute this value of x2 into either one of the constraints.
x1 + 2(8) = 40
x1 = 24
Row operations are used to solve simultaneous equations where equations are
multiplied by constants and added or subtracted from each other.
This solution corresponds to point B on the graph, where x1 = 24, x2 = 8, s1 = 0, and s2 = 0,
which is the optimal solution point.
All three of these example solutions meet our definition of basic feasible solutions. However,
two specific questions are raised by the identification of these solutions.
1. In each example, how was it known which variables to set equal to zero?
2. How is the optimal solution identified?
The answers to both of these questions can be found by using the simplex method. The simplex
method is a set of mathematical steps that determines at each step which variables should
equal zero and when an optimal solution has been reached.
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