Simplex Method — Complete Solution

Problem Statement
Maximize: Z = 12x1 + 16x2
Subject to:
10x1 + 20x2 ≤ 120 → Constraint (1)
8x1 + 8x2 ≤ 80 → Constraint (2)
x1, x2 ≥ 0

Abbreviations Used in Simplex Tables

Short Form Full Form Meaning

Cj Cost Coefficient of Objective Function Profit/cost per unit of each variable in the objective function Z

CBi Cost Coefficient of Basic Variable Cj value of the current basic (in-solution) variable in that row

B.V. Basic Variable The variable currently in the basis (solution) for that row

x1, x2 Decision Variables The unknown quantities we want to find (products, units, etc.)

s1, s2 Slack Variables Added to convert ≤ constraints to equalities; represent unused resources

Zj Current Objective Value Row Sum of (CBi × column element) for each column; shows current contribution

Cj − Zj Net Evaluation Row / Relative Profit Row

Indicates how much Z improves if one unit of that variable enters the basis

Pivot Element Key Element / Pivot Number The circled element at intersection of entering column and leaving row; used

Entering VariableIncoming Variable (New Basic Variable)Variable with highest positive Cj−Zj value (for maximization); enters the basi

Leaving VariableOutgoing Variable (Departing Basic Variable)

Basic variable with smallest non-negative ratio (Solution ÷ Pivot column); lea

Ratio Minimum Ratio Test Value Solution value ÷ positive pivot column element; used to find leaving variable

Solution Current Solution Value (RHS) Right-hand side value; current value of each basic variable

Z(opt) Optimal Value of Objective Function Maximum (or minimum) value of Z at the optimal solution

Standard Form (After Adding Slack Variables)

Maximize: Z = 12x1 + 16x2 + 0s1 + 0s2
Subject to:
10x1 + 20x2 + s1 + 0s2 = 120 → Equation (1)
8x1 + 8x2 + 0s1 + s2 = 80 → Equation (2)
x1, x2, s1, s2 ≥ 0

Note on Slack Variables: s1 and s2 are added to make the constraints into equalities. Their objective
function coefficients are 0 because they do not contribute to profit.

Initial Simplex Table

 Initial Basic Feasible Solution (BFS): x1 = 0, x2 = 0, s1 = 120, s2 = 80, Z = 0

CBi Cj → Ratio
12 16 0 0 Solution
(Cost of B.V. (Solution ÷
x1 x2 s1 s2 (RHS)
Basic Var.) (Basic Variable) Pivot Col.)

s1
0 10 20 ←Pivot 1 0 120 120÷20 = 6
(Slack Var. 1)

s2
0 8 8 0 1 80 80÷8 = 10
(Slack Var. 2)

Zj 0 0 0 0 0

Cj − Zj
12 16 0 0
(Net Eval.)

Optimality Condition: For Maximization → solution is optimal when all Cj − Zj ≤ 0. For Minimization →
optimal when all Cj − Zj ≥ 0.
Decision from Initial Table: Largest positive Cj − Zj = 16 (under x2) → x2 is the Entering Variable.
Minimum ratio = 6 (row of s1) → s1 is the Leaving Variable. Pivot Element = 20 (highlighted).

Iteration I (After Gauss-Jordan Pivot on Element 20)

New Pivot Row (x2 row) = Old s1 row ÷ 20. All other rows updated as: New Row = Old Row − (Row's
pivot-column element × New Pivot Row).

CBi Cj → Ratio
12 16 0 0 Solution
(Cost of B.V. (Solution ÷
x1 x2 s1 s2 (RHS)
Basic Var.) (Basic Variable) Pivot Col.)

x2
16 1/2 1 1/20 0 6 6÷(1/2) = 12
(Decision Var. 2)

s2
0 4 0 -2/5 1 32 32÷4 = 8 ←min
(Slack Var. 2)

Zj 8 16 4/5 0 96

Cj − Zj
4 0 -4/5 0
(Net Eval.)

Decision from Iteration I: Largest positive Cj − Zj = 4 (under x1) → x1 is the Entering Variable.
Minimum ratio = 8 (row of s2) → s2 is the Leaving Variable. Pivot Element = 4 (highlighted).

Iteration II (After Gauss-Jordan Pivot on Element 4)

New Pivot Row (x1 row) = Old s2 row ÷ 4. x2 row updated as: New x2 row = Old x2 row − (1/2 × New x1
row).

CBi Cj →
12 16 0 0 Solution
(Cost of B.V.
x1 x2 s1 s2 (RHS)
Basic Var.) (Basic Variable)

x2
16 0 1 1/40 -1/8 2
(Decision Var. 2)

x1
12 1 0 -2/10 2/4 8
(Decision Var. 1)
 CBi Cj →
12 16 0 0 Solution
(Cost of B.V.
x1 x2 s1 s2 (RHS)
Basic Var.) (Basic Variable)

Zj 12 16 2/5 2 128

Cj − Zj
0 0 -2/5 -2
(Net Eval.)

Optimal Solution
All Cj − Zj ≤ 0 → Optimality condition satisfied for Maximization.

Variable Value Meaning

x1 (Decision Variable 1) 8 Optimal value of first decision variable

x2 (Decision Variable 2) 2 Optimal value of second decision variable

Z(opt) (Optimal Objective Value) 128 Z = 12(8) + 16(2) = 96 + 32 = 128