SIMPLEX METHOD SOLUTION (STEP-BY-STEP)
Step 1: Define Decision Variables
Let x1 = Units of Product A
Let x2 = Units of Product B
Step 2: Formulate the Objective Function
A sells for ₦4
B sells for ₦6
Maximize: Z = 4x1 + 6x2
Step 3: Formulate the Constraints
Wood: x1 + 3x2 ≤ 240
Plastic: 3x1 + 4x2 ≤ 370
Steel: 2x1 + x2 ≤ 180
Non-negativity: x1, x2 ≥ 0
Step 4: Convert to Standard Form (Add Slack Variables)
x1 + 3x2 + s1 = 240
3x1 + 4x2 + s2 = 370
2x1 + x2 + s3 = 180
Objective Function: Z - 4x1 - 6x2 = 0
Step 5: Initial Simplex Table
Basis | x1 | x2 | s1 | s2 | s3 | RHS
s1 | 1 | 3 | 1 | 0 | 0 | 240
s2 | 3 | 4 | 0 | 1 | 0 | 370
s3 | 2 | 1 | 0 | 0 | 1 | 180
Z | -4 | -6 | 0 | 0 | 0 | 0
Step 6: First Iteration
Most negative in Z-row = -6 → Pivot column = x2
Ratio Test:
240 / 3 = 80
370 / 4 = 92.5
180 / 1 = 180
Smallest = 80 → Pivot row = Row 1
Pivot element = 3
Divide Row 1 by 3 to make pivot = 1
New Row 1: (1/3)x1 + x2 + (1/3)s1 = 80
Eliminate x2 from other rows:
Row2 = Row2 − 4(Row1)
Row3 = Row3 − 1(Row1)
Z = Z + 6(Row1)
New Table:
Basis | x1 | x2 | s1 | s2 | s3 | RHS
x2 | 1/3 | 1 | 1/3 | 0 | 0 | 80
s2 | 5/3 | 0 | -4/3 | 1 | 0 | 50
s3 | 5/3 | 0 | -1/3 | 0 | 1 | 100
Z | -2 | 0 | 2 | 0 | 0 | 480
Step 7: Second Iteration
Most negative in Z-row = -2 → Pivot column = x1
Ratio Test:
80 ÷ (1/3) = 240
50 ÷ (5/3) = 30
100 ÷ (5/3) = 60
Smallest = 30 → Pivot row = Row 2
Pivot element = 5/3
Multiply Row 2 by 3/5 to make pivot = 1
New Row 2: x1 − (4/5)s1 + (3/5)s2 = 30
Eliminate x1 from other rows:
Row1 = Row1 − (1/3)(Row2)
Row3 = Row3 − (5/3)(Row2)
Z = Z + 2(Row2)
Final Table:
Basis | x1 | x2 | s1 | s2 | s3 | RHS
x2 | 0 | 1 | 3/5 | -1/5| 0 | 70
x1 | 1 | 0 | -4/5| 3/5 | 0 | 30
s3 | 0 | 0 | 1 | -1 | 1 | 50
Z | 0 | 0 | 2/5 | 6/5 | 0 | 540
Step 8: Optimal Solution
No negative value in Z-row → Solution is optimal.
x1 = 30 units
x2 = 70 units
Maximum Gross Income:
Z = 4(30) + 6(70)
Z = 120 + 420 = ₦540