Today, I’ll walk you through how we improve our solution step by step using the Simplex

Method until we reach the best possible answer.

So this time, we’ll decide which variable to add to increase profit and which to replace, then
update our tableau to get a better result.
Let’s see how this brings us closer to maximizing our profit.

IS FURTHER IMPROVEMENT POSSIBLE?

Developing the Third Solution
So far, we’ve developed the second solution, but now let’s check:
Can we still improve the result?
Well, yes! The presence of a positive number (+2) in the C column of the Cⱼ − Zⱼ row in the
second solution (see Table 9-7) tells us that further improvement is possible.
Ibig sabihin, hindi pa ito ang pinaka-optimal na solution.
We need to repeat the same process we used before to develop a third solution.

STEP 1: WHICH VARIABLE WOULD ADD THE MOST PER-

UNIT PROFIT?
Let’s look again at the Cⱼ − Zⱼ row of the second tableau (Table 9-7).
Here, we see that C (chairs) contributes $2 per unit.
So, the optimal column in Table 9-7 is the C column.
That means we’ll be adding chairs to the solution by replacing one of the current variables—
either T (tables) or S𝒻 (finishing slack).
We now know what to add.
The next question is: which variable should be replaced, and how many units of chairs should
we add?

STEP 2: WHICH VARIABLE WILL BE REPLACED, AND HOW

MANY UNITS OF THE NEW VARIABLE WILL ENTER THE
SOLUTION?
As in previous steps, we determine the replaced row by comparing the ratios of the quantity
column values to the corresponding entries in the optimal column (C column).
Let’s do the math:
 For the T row:
15 ÷ (½) = 30
 For the S𝒻 row:
18 ÷ 3 = 6
Now we pick the smaller non-negative ratio, which is 6 in the S𝒻 row.
This means S𝒻 will be replaced in the next solution, and we will bring in 6 units of C (chairs).
So, in the third tableau, C will enter the basis and replace S𝒻.
You can see this information summarized in Table 9-8, which shows the optimal column, the
replaced row, and the intersectional element from the second tableau.

STEP 3: COMPLETING THE REPLACING ROW

To construct the third tableau, we first compute the replacing row.
We do this by dividing each number in the replaced row (S𝒻 row) by the intersectional
element, which is the value in the intersection of the replaced row and the optimal column.
The calculation gives us this new row for the third tableau:
(6, 0, 1, −1/6, 16)
This becomes the new replacing row, and it assumes the same position as the S𝒻 row from
the second tableau.
You’ll find this result displayed in Table 9-9, which shows the updated row after substitution.

Following this, Table 9-10 will show us the replacing row and the new T row in the third
tableau, completing the step toward the next improved solution.

STEP 4
COMPLETING THE THIRD TABLEAU
Now that we’ve completed the replacing row, let’s finish constructing the third tableau.
The new T row is:
(12, 1, 0, 1/3, −1/6)
This updated row has been added to the third tableau, as shown in Table 9-10.

Computing the Zⱼ Values

We now compute the Zⱼ values (the total profit contributions for each variable):
 Zⱼ (Total profit):
8(12) + 6(6) = 132
This is the total profit from the third solution.
 Zⱼ for T (tables):
8(1) + 6(0) = 8
 Zⱼ for C (chairs):
8(0) + 6(1) = 6
 Zⱼ for Sₐ (slack for assembly):

 Zⱼ for S𝒻 (slack for finishing):

8(1/3) + 6(−1/6) = (8/3) − (6/6) = 8/3 − 1 = 5/3 ≈ 1.67

8(−1/6) + 6(1/3) = (−8/6) + (6/3) = −4/3 + 2 = 2/3 ≈ 0.67

Completing the Cⱼ − Zⱼ Row
We now compute Cⱼ − Zⱼ by subtracting the Zⱼ values from the original Cⱼ values in the problem
data:
Variab Cⱼ −
Cⱼ Zⱼ
le Zⱼ

T 8 8 0

C 6 6 0

5/
Sₐ 0 −5/3
3

2/
S𝒻 0 −2/3
3

This is reflected in Table 9-11, the completed third simplex tableau.

Conclusion: Optimal Solution Reached

The total profit from the third solution is $132, which is higher than the $120 from the
second solution.
Since there are no positive values in the Cⱼ − Zⱼ row, no further improvement is possible.
Therefore, we have reached the optimal solution:
 T (tables) = 12
 C (chairs) = 6
 Sₐ = 0
 S𝒻 = 0
No further improvement is possible — the optimal solution has been reached.

Graphical and Computer Confirmation

This solution is equivalent to Point D in the graphical method shown in Figure 8-6 on page 386,
and also matches the computer-generated solution on page 402.
The variables T and C appear in the products column of the final tableau with values of 12 and
6, respectively.
The slack variables Sₐ and S𝒻 do not appear in the solution mix, indicating they are both
zero.
The Zⱼ total of $132 represents the maximum profit attainable given the constraints.
So, to wrap up, here’s a quick summary of the 11 steps in the Simplex
Method for solving maximization problems. Let me read them for you.

1 Set up the inequalities describing the problem constraints.

2 Convert the inequalities to equations by adding slack variables.

3 Enter the equations in the simplex tableau.

4 Calculate the Z sub j and C sub j – Z sub j values for this solution.

5 Determine the entering variable (optimal column) by choosing the one with
the highest C sub j – Z sub j value.

6 Determine the row to be replaced by dividing quantity-column values by

their corresponding optimal-column values and choosing the smallest
nonnegative quotient. (That is, only compute the ratios for rows whose
elements in the optimal column are greater than zero; for example, omit
ratios like 160/0 and 15/-5.)

7 Compute the values for the replacing row.

8 Compute the values for the remaining rows.

9 Calculate Z sub j and C sub j – Z sub j values for this solution.

10 If there is a positive C sub j – Z sub j value, return to step 5.

11 If there is no positive C sub j – Z sub j value, the optimal solution has been
obtained.

Justification and Significance of All Elements in the

Simplex Tableau
THE LOGIC OF THE SIMPLEX METHOD
So far, we’ve focused mainly on how to solve linear programming problems using the simplex
method. But beyond just giving us the final solution, the simplex method provides valuable
insights—like possible alternative solutions and how the outcome changes if we tweak the data.
Minsan, ‘yung ganitong klaseng information—like understanding the “what if” scenarios—is
just as important as getting the actual answer.
__
In this section, we’ll explain the logic and economic significance behind every element in the
simplex tableau. In short, we’ll give meaning to the steps and numbers we’ve learned and used
so far.
We’ll be referring to Table 9-12, which is the second simplex tableau from the previous section
(referenced from Table 9-7). Each element is numbered, and we’ll go through what each one
means.

EXPLAINING THE THREE ENTRIES IN THE QUANTITY

COLUMN OF TABLE 9-12
(Elements 1, 2, and 3)
Let’s start with the quantity column, which shows how much of each resource or product is
used in the current solution.

1. T (Tables) = 15 units
In the first simplex tableau (Table 9-2), we saw that T (tables) had the highest contribution to
profit per unit. Kaya dapat talaga isama siya sa solution.
To compute how many tables we can produce based on available time:
60 hours available in assembly ÷ 4 hours required per table = 15 tables
This means the maximum number of tables we can make—without breaking any time
constraints—is 15.
Producing 15 tables uses up all the assembly time:
4 hours per table × 15 tables = 60 hours (exactly the available time)
So in this solution, T replaces Sₐ (Assembly Slack)—meaning walang natirang extra time sa
assembly department.

2. S𝒻 (Finishing Slack) = 18 units

Each of the 15 tables requires 2 hours in finishing. So:
2 hrs × 15 tables = 30 hours needed
Since the finishing department has 48 hours available, we still have:
48 − 30 = 18 hours left
This leftover time is shown as S𝒻 = 18 in the tableau. It means there’s slack time in finishing,
which hasn’t been used up yet.

3. Z = 120 (Total Profit)

This is the total profit from the current product mix:
8T + 6C = 8(15) + 6(0) = 120
  We’re producing 15 tables (each with $8 profit)
 No chairs (0 units of C) are included in the solution yet
 So: 8 × 15 = $120
This value represents the maximum profit under the current setup and time limits.

EXPLAINING THE EIGHT SUBSTITUTION RATES IN

THE BODY OF TABLE 9-12
(Elements ④, ⑤, ⑧, ⑨, ⑫, ⑬, ⑯, and ⑰)
Let’s now look at the substitution rates found in the body of the simplex tableau. These values
show us the trade-offs involved when we change the values of certain variables in our current
solution. They basically answer:
“If I add 1 unit of this variable, how will it affect the others?”

④ – Sₐ vs. T (Tables)
Each unit of T (table) requires 4 hours in the assembly department. In our current solution, all
60 assembly hours are already used. So if we want to use 1 hour for something else—like Sₐ
(Assembly Slack)—we must give up part of a table.
1 hour ÷ 4 hours per table = ¼ table
So, adding 1 unit of Sₐ reduces the number of tables produced by ¼. Ibig sabihin, may trade-off
talaga sa assembly time.

⑤ – Effect on S𝒻 (Finishing Slack)

If we reduce table production by ¼ unit, may epekto rin ito sa finishing. Tables require 2 hours
each in finishing, so:
¼ × 2 = ½ hour freed
This means adding 1 unit of Sₐ also frees up ½ hour in the finishing department (S𝒻). This is
important because changes in one department can affect the capacity in another.

⑧ – S𝒻 (Finishing Slack) vs. T

Adding 1 unit of S𝒻 has no effect on T (table) production. Bakit?
Because assembly is the limiting factor (fully used at 60 hours). So kahit dagdagan mo ang
finishing time, it won't help you produce more tables.
Since there are still 18 hours of finishing time left, we can add or remove S𝒻 without affecting
table production.
⑨ – Removing 1 unit of S𝒻
If we remove 1 unit of S𝒻, it simply means we’re using up 1 of the 18 free hours left in
finishing. There’s no effect on the current production mix, but it reduces your finishing
flexibility.

⑫ – Adding 1 unit of T (Table)

Here, we have a one-for-one substitution:
If you want to add 1 table, you must remove 1 existing table, because we’re already at the
maximum assembly limit of 60 hours.
So:
Add 1 table → Give up 1 table → No net change
This reinforces that we’re already producing as many tables as possible under the current
constraints.

⑬ – Effect on S𝒻 when adding T

Adding 1 more T has no effect on S𝒻.
Why? Because adding a table requires you to remove another table (as seen in ⑫). And since
the new table takes the place of an old one, the finishing requirement remains unchanged.
So:
2 hrs required by the new table − 2 hrs freed from the old table = 0 net change in finishing.

⑯ – Adding 1 unit of C (Chair) vs. T

Here’s a very interesting trade-off:
 1 C requires 2 hours in assembly
 1 T requires 4 hours in assembly
So if we want to process 1 chair, we need to give up ½ table to free up the needed 2 hours:
2 hrs ÷ 4 hrs per table = ½ table
This means every chair added replaces ½ a table due to assembly time limits.

⑰ – Adding 1 unit of C (Chair) vs. S𝒻 (Finishing)

Each chair also requires 4 hours in finishing.
But when we add a chair, remember we’re giving up ½ table (from ⑯), and each table uses 2
hours in finishing. So:
½ × 2 hrs = 1 hour freed
That means:
 Chair requires 4 finishing hours
  Minus 1 hour freed from giving up ½ table
 Net increase in finishing needed = 3 hours
So adding 1 chair uses up 3 units of S𝒻, which is shown in the tableau.

✅ Summary of Substitution Logic:

Eleme
Action Result / Effect
nt

④ Add 1 Sₐ Lose ¼ T

⑤ Add 1 Sₐ Free ½ S𝒻

⑧ Add 1 S𝒻 No change in T

Remove 1
⑨ Use 1 finishing hour
S𝒻

⑫ Add 1 T Must give up 1 T

⑬ Add 1 T No change in S𝒻

⑯ Add 1 C Must give up ½ T

Uses up 3 units of S𝒻 (net

⑰ Add 1 C
finishing time)

These values represent marginal rates of substitution—in short, how much of one thing you
need to give up to get one unit of something else, while staying within your resource limits.

The eight substitution elements we just discussed represent what's called the marginal rates of
substitution between the variables in the product mix (like tables and chairs) and the variables
heading each column (like slack variables).
To put it simply, these rates tell us how much of one variable we need to give up or how much of
another we can gain if we add 1 unit of a specific variable into the solution.
For example:
 Element ⑯ shows that adding 1 unit of C (chair) requires giving up ½ unit of T (table).
That’s a positive substitution rate, meaning we’re sacrificing something from the
product mix.
 On the other hand, Element ⑤ shows that adding 1 unit of Sₐ (assembly slack) results in
½ unit of S𝒻 (finishing slack) being freed. That’s a negative substitution rate,
because it adds availability rather than reducing it.
So in summary:
 Positive substitution → Something is given up (e.g., T must decrease if C is added).
  Negative substitution → Something is gained or freed (e.g., more finishing time
becomes available).

EXPLAINING THE FOUR ENTRIES IN THE Z ROW OF

TABLE 9-12
(Elements ⑥, ⑩, ⑭, and ⑱)
Now let’s look at the Z row. This row shows us how much profit is lost when 1 unit of a
variable (like slack or product variables) is added to the solution.
This is important because it tells us:
“If I add this variable, how will it affect the total profit?”

⑥ – Adding 1 unit of Sₐ (Assembly Slack)

Two changes happen when we add 1 unit of Sₐ:
1. T (tables) decreases by ¼ unit (see Element ④)
2. S𝒻 (finishing slack) increases by ½ unit (see Element ⑤)
Now, let’s compute the profit impact:
 T lost = ¼ × $8 = $2 loss
 S𝒻 gained = ½ × $0 = $0 gain
Total profit lost = $2 + $0 = $2
So, adding Sₐ actually reduces our total profit by $2, since we’re producing fewer tables,
which are our main profit generators.

This same logic applies to all other elements in the Z row:

When interpreting the values in this row, always ask:
1. What changes when 1 unit of the variable is added?
2. How does each change affect profit?
3. What is the total profit lost or gained based on those changes?

⑩ – Adding 1 unit of S𝒻 (Finishing Slack)

Now let’s look at what happens when we add 1 unit of S𝒻 to the solution. We're still focusing
on how this affects profit, based on changes in the variables.
We’re basically checking the effect of adding 1 unit of a specific product or resource, and how
that affects the other variables in the tableau.
Here, we’re adding 1 unit of S𝒻 (Sp), and there are two changes:
Change 1:
There’s no change in T (tables).
So, profit lost = $8 × 0 = $0.
Simple, di ba?
Change 2:
We lose 1 unit of S𝒻 itself. But S𝒻 has no profit value.
So, profit lost = $0 × 1 = $0
Total Loss: $0
Walang problema dito—this change does not affect the total profit at all.

⑭ – Adding 1 unit of T (Tables)

Now let’s try adding 1 more table to the program.
Change 1:
To do that, we have to give up 1 existing table (as shown in Element ⑫).
So, profit lost = $8 × 1 = $8
Change 2:
There’s no change in S𝒻 (see Element ⑬).
So, profit lost = $0 × 0 = $0
Total Loss: $8
We lose money in this case because we’re not actually adding more tables—we’re just replacing
one with another. No net benefit, but we’re still counting the opportunity cost of losing that 1
profitable unit.

⑱ – Adding 1 unit of C (Chairs)

This one’s a bit more complex, so let’s break it down step by step.
Change 1:
We lose ½ unit of T (see Element ⑯), because chairs take 2 hours of assembly, and that’s half
the time needed for a table.
Profit lost = $8 × ½ = $4
Change 2:
We also lose 3 units of S𝒻 (Sp) (see Element ⑰), because each chair needs 4 finishing hours,
and giving up ½ table only frees 1 hour—so we need 3 more.
But again, S𝒻 has no profit, so:
Profit lost = $0 × 3 = $0
Total Loss: $4
So, adding a chair results in a $4 opportunity cost, mainly from reducing the number of tables
we can make.
What This Tells Us: Opportunity Cost and Shadow Price
These values in the Z row reflect the shadow prices or opportunity costs of each decision.
They tell us how much profit we lose when we:
 Reduce the production of one item
 Use resources on something else
This is crucial for production planning. It helps us decide which products are worth adding
and which ones should be left out, based on how they impact overall profit.
In short, if adding a unit of something causes a loss, maybe it’s not a good idea—unless it helps
with other constraints. But if adding it leads to no loss or more profit, then it might be worth
considering.

EXPLAINING THE FOUR ENTRIES IN THE Cⱼ − Zⱼ ROW

OF TABLE 9-12
(Elements 19, 15, 11, and 7)
This row is called the Cⱼ − Zⱼ row, and each number here represents the net profit or loss if 1
unit of the corresponding variable is added to the solution.
Sa madaling sabi, ito 'yung “Is it worth it to add this variable?” If it’s a profit-maximization
problem, like in our case, the values tell us how much the total profit will increase or decrease
if we add that variable. If it were a cost-minimization problem, the row would reflect the net
change in cost instead.
That’s why these values are also called reduced costs.

Example 1: Element 19 – Chair (C)

The value here is +2, meaning:
For every 1 unit of C (chair) added, profit increases by $2
Since we have 18 hours available in finishing (from Element 2) and each chair requires 3 hours
of finishing time (see Element 17), we can calculate:
18 ÷ 3 = 6 chairs can be added
So adding those 6 chairs can increase the current total profit of $120 by:
6 × $2 = $12 → New profit: $132
Basta may positive value sa Cⱼ − Zⱼ row, ibig sabihin pwede pa nating i-improve ang solution.
Go lang nang go!

Example 2: Element 15 – Table (T)

Here, the value is 0, which means:
Adding 1 more table won’t change the total profit.
Why? Kasi we’re already producing the maximum number of tables possible under the current
assembly time limit—60 hours total, used up by 15 tables (4 hrs each).
So if we add 1 table:
 We have to remove another table to stay within time limits
 +$8 for the new one, −$8 for the one we removed = No net profit change

Example 3: Element 11 – Finishing Slack (S𝒻)

The value is also 0, so:
Adding 1 unit of S𝒻 (finishing slack) has no effect on profit.
This is because assembly is the true bottleneck. Kahit dagdagan pa natin ang finishing time,
hindi rin madadagdagan ang production ng tables, kasi fully consumed na ang assembly hours.

Example 4: Element 7 – Assembly Slack (Sₐ)

This time the value is −2, which indicates a net loss:
For every unit of Sₐ added, total profit decreases by $2
Why?
 Each unit of Sₐ added forces us to give up ¼ table (see Element ④)
 Each table gives $8 profit
 ¼ × $8 = $2 loss
 Sₐ itself doesn’t generate any profit → so it’s all loss
That’s why a negative number in the Cⱼ − Zⱼ row tells us to avoid adding that variable.

✅ Summary:
Cⱼ − Zⱼ
Variable Interpretation
Value

Add more → it increases

C (Chair) +2
profit

No effect → already at
T (Table) 0
capacity

S𝒻 (Slack- No effect → not a

0
Finishing) bottleneck

Sₐ (Slack- Avoid adding → it reduces

−2
Assembly) profit
As long as there’s at least one positive value in this row, pwede pa tayong maghanap ng better
solution to increase profit. Once all values are 0 or negative, that means we’ve reached the
optimal solution.

And that wraps up our discussion on the justification and significance of all elements in the
simplex tableau.
Through this process, we’ve seen that the simplex method isn’t just about getting the final
answer. It also gives us valuable information—like how much of a resource we’re using, what
happens when we substitute one variable for another, and how each decision affects our total
profit.
Each entry in the tableau—whether it's in the quantity column, the substitution values, the Z
row, or the Cⱼ − Zⱼ row—tells us a part of the story.
Para siyang puzzle: every number has a purpose. Together, they help us make smarter, more
strategic decisions in business and operations.
Importantly, we’ve learned about marginal rates of substitution, opportunity cost, and
shadow prices—concepts that are essential not just in solving problems, but also in real-life
production planning and resource allocation.
So the next time you see a simplex tableau, don’t just look for the final solution. Read between
the numbers—because that’s where the deeper insight lies.
Thank you for listening, and I hope this gave you a clearer picture of how powerful and practical
the simplex method really is.