Simplex Duality

Linear Programming: Dual Problem and Economic Interpretation
Course: COMMERCE (CBCS)

Subject: Business Mathematics
Lesson: Linear Programming: Dual Problem
and Economic Interpretation
Authors Name: Dr. Gurmeet Kaur
Associate Professor,
Daulat Ram College,
University of Delhi.
Institute of Lifelong Learning

University of Delhi 1
Lesson: Linear Programming: Dual Problem and

Economic Interpretation
Table of Contents:
Learning Outcomes
1. Introduction
2. Formulation of Dual
3. Shadow Prices of the Resources
4. Primal-Dual Solution
5. Economic Interpretation of Dual
6. Sensitivity or Post Optimality Analysis
Summary
Glossary
Exercises
Suggested Readings
Learning Outcomes:
After reading this lesson, students will be able to:
understand the concept of Duality in linear programming,
write a dual problem from a given primal problem,
read solution of the dual problem from the solution of the primal
problem,
understand the concept of shadow prices,
perform the economic interpretation of Dual, and
understand post optimality analysis in LPP.

1. Introduction:
For every Linear Programming Problem there exists a Dual that expresses the problem
with a resource orientation. The original problem is called the Primal Problem. The
solution of a Linear Programming Problem can be read from the final simplex tableau of
either Primal or its Dual for all the variables.
The importance of duality in linear programming is twofold. Firstly, it is often possible to
solve the dual linear problem in place of the original linear problem (Primal), to reap
advantage of computational efficiency. Secondly, it helps in understanding the shadow
price interpretation of the optimal simplex solution.
2. Formulation of a Dual Problem:

The objective in the Dual is the opposite of the objective in the Primal. If the
Primal is a Maximization Problem then the Dual will be a Minimization Problem and
vice versa.
The coefficients of the decision variables in the Objective function of the Primal
become the quantities on the RHS of the resource constraints of the Dual and the
vice versa.
The Technological Coefficients in the constraints of the dual problem are the
transpose of the technological coefficients of the constraints in the Primal.
constraints in the Primal correspond to constraints in the Dual and vice
versa.
Number of decision variables in the Primal is equal to the number of
constraints in the Dual and vice versa.
Dual Vs. Primal
At times it is easier to solve the dual problem instead of the Primal Problem,
because of easier computation.
For instance, in case we have all constraints in Primal requiring Surplus as
well as Artificial variables to be introduced for each of the constraint, it will
be easier to solve the Dual and read the solution of Primal from the optimal
final tableau of the Dual. The Optimal value of the Objective Function is the
same for both the Primal and its associated Dual.
Dual of a Dual is the Primal itself.
2.1. Dual of a Maximization Problem:

Let the primal problem be:
Primal Problem:
Maximize Z = + + +
Subject to the constraints:
+ + +
+ + +

+ + +
1 , 2 , , 0
where, (1 , 2 , 3 , , ) are decision variables,
(1 , 2 , 3 , , ) are the cost or profit coefficients,
(i =1 to n, j=1 to m) are the exchange coefficients, and
(1 , 2 , 3 , , ) are the resource values.

The associated dual problem can be written as:

Dual Problem:
Minimize C = + + +
+ + +
+ + +

+ + +
1 , 2 , , 0
where, (1 , 2 , , ) are the shadow prices of resources,
2.2. Dual of a Minimization Problem:

Let the primal problem be:
Primal Problem:
Minimize Z = 1 1 + 2 2 + +
11 1 + 12 2 + + 1 1
21 1 + 22 2 + + 2 2

1 1 + 2 2 + +
1 , 2 , , 0
where, (1 , 2 , 3 , , ) are decision variables,
The associated dual problem can be written as:
Dual Problem:
Maximize C = 1 1 + 2 2 + +
11 1 + 21 2 + + 1 1
12 1 + 22 2 + + 2 2

1 1 + 2 2 + +
1 , 2 , , 0
where, (1 , 2 , , ) are the shadow prices of resources,

2.3 Treatment of Constraints:

Illustration 1:
Write the Dual of the following LPP:
Maximize Z = 501 + 902
Subject to constraints:
1 + 52 15 ...
31 + 72 56 ...
91 + 42 81 ...
1 , 2 0
Solution:
Let 1 , 2 , 3 be the variables corresponding to the constraints 1, 2 and 3 respectively in
the Primal.
The Dual can be expressed as:
Minimize = 151 + 562 + 813
1 + 32 + 93 50
51 + 72 + 43 90
1 , 2 , 3 0
2.4 Treatment of Constraints:
Illustration 2:
Maximize Z = 101 + 72
41 + 52 100 ...
61 72 156 ...
1 , 2 , 0
Solution:
Step 1: Convert the constraints into constraints by multiplying both sides of the
inequality by -1.
+ ...
41 52 100
...
61 + 72 156
Let 1 , 2 be the variables corresponding to the constraints 1 and 2 respectively in the
Primal.
Minimize = 1001 1562
41 62 10
51 + 72 7
1 , 2 0

2.5 Handling Unrestricted Variables in Duality:

In a Standard Linear programming problem, there is non-negativity restriction on
the variables. It implies that the variables can assume values that are greater than or
equal to zero and cannot be negative. When a variable is unrestricted, it can assume
positive, zero or negative value. Therefore, we have to convert them into non-negative
variables by expressing the unrestricted variable as a difference of two non-negative
variables.
Mathematical Explanation:
If 1 has unrestricted sign, then we express it as:
1 = 2 3 where, 2 , 3 0.
It implies:
if 2 > 3 then 1 will be positive
if 2 < 3 then 1 will be negative and
if 2 = 3 then 1 will be zero.
Illustration 3:
Maximize Z = 151 + 292 + 113 + 374
101 + 152 + 144 250
221 202 + 203 540
151 + 132 + 123 + 134 = 600
2 , 3 , 4 0 1 :
Solution:
Step 1: Express the LPP in Standard Form.
Maximize Z = 151 + 292 + 113 + 374
101 + 152 + 144 250
221 202 + 203 540
151 + 132 + 123 + 134 = 600
2 , 3 , 4 0 1 :
(a) Convert from to :
221 + 202 203 540
(b) Convert from = into two constraints:
151 + 132 + 123 + 134 600
151 + 132 + 123 + 134 600
151 132 123 134 600
(c) Convert 1 : into a non-negativity restriction:
Substitute 1 = 5 6 where 5 , 6 0
Thus, in the standard form the Primal can be expressed as:

Maximize Z = 15(5 6 ) + 292 + 113 + 374

105 106 + 152 + 144 250
22 5 6 + 202 203 540
15 5 6 + 132 + 123 + 134 600
15 5 6 132 123 134 600
5 , 6 , 2 , 3 , 4 0
Primal in Standard Form:
Maximize Z = 155 156 + 292 + 113 + 374
105 106 + 152 + 03 + 144 250
225 + 226 + 20 2 203 + 04 540
155 156 + 132 + 123 + 134 600
155 + 156 132 123 134 600
5 , 6 , 2 , 3 , 4 0
Step 2: Write the Dual Problem.
(a) Let 1 , 2 , 3 , 4 is the worth the resources represented by the constraints , ,
and respectively.
Minimize = 2501 5402 + 6003 6004
101 222 + 153 154 15
101 + 222 153 + 154 15
151 + 202 + 133 134 29
01 202 + 123 124 11
141 + 02 + 133 134 37
1 , 2 , 3, 4 0
(b) Substitute 5 = 3 4 and combine into an equation
Minimize = 2501 5402 + 6005
101 222 + 155 = 15
151 + 202 + 135 29
202 + 125 11
141 + 135 37
1 , 2 0 and 5 : unrestricted sign

Illustration 4:
Maximize Z = 35x1+29x2+11x3
10 x1+ 25 x2+ 40 x3 100
20 x1+ 5 x2+ 30 x3 150
x1, x2, x3 0
Solution:
Dual Problem:
Let 1 , 2 , 3 be the dual variables
Minimize C = 100y1+150y2
10y1+ 20y2 35
25y1+ 5y2 29
40y1+ 30y2 11
y1, y2 0
Figure 1: Relationship between Primal-Dual Constructions

2.6 Steps for Direct Conversion of a Primal into its corresponding

Dual:
Step 1:
The number of variables in the dual should be assumed to be equal to the number of
constraints in the Primal. In the above illustration, we take three dual variables
corresponding to each of the three constraints in the primal problem.
Step 2:
Convert the objective function from maximization into minimization and vice versa. In
the above case, the objective function of the dual will be minimization corresponding to
the objective function of maximization given in the primal problem.
Step 3:
For writing the constraints of the Dual, take the transpose of for writing the LHS of
the constraints and take the coefficients of decision variables in the objective function of
the Primal for writing the RHS values of corresponding constraints.
In the case of a non-standard form of Primal, where the LPP has constraints in a
maximization problem and constraints in a minimization, we take negative of the
technological coefficients for that particular non-standard constraint for writing the
constraints in the dual and we also take negative of the RHS value for writing the
corresponding coefficient in the objective function of the Dual.
For instance, in the constraint of the given Maximization Primal LPP the sign is ,
therefore all the coefficients of 2 will have negative of the primal coefficients.
Step 4:
For an equality constraint, the corresponding variable will assume sign in
the dual and vice versa.
For instance, in the given illustration, the constraint in the primal is an equation
therefore the corresponding 3 variable in the dual has sign.
Also, in the Primal 1 variable has unrestricted sign, therefore the corresponding
constraint, viz., in the dual is written as an equation.
Primal Dual
Maximize Z = 151 + 292 + 113 + 374 Minimize = 2501 5402 + 6005

Subject to constraints: Subject to constraints:
101 + 152 + 144 250 101 222 + 155 = 15
221 202 + 203 540 151 + 202 + 135 29
151 + 132 + 123 + 134 = 600 202 + 125 11
2 , 3 , 4 0 and 1 : 141 + 135 37
1 , 2 0 and 5 :

2.7 Comparison of Primal and its corresponding Dual:
Basis Primal Dual

Maximize Z = Minimize C =
=1 =1
Subject to Constraints: Subject to Constraints:

( = 1,2, , ) ( = 1,2, , )
=1 =1
General Form of LPP 0 ( = 1,2, , ) 0 ( = 1,2, , )

Minimize Z = Maximize C =
=1 =1
Subject to Constraints: Subject to Constraints:

( = 1,2, , ) ( = 1,2, , )
=1 =1
0 ( = 1,2, , ) 0 ( = 1,2, , )
Maximization Minimization
Objective function
Minimization Maximization
Decision Variables (j = 1,2, . . . , n) (i = 1,2, . . . , m)
Number of
n m
decision variables
Coefficients of

objective function

Constraints

Number of constraints m n
RHS Coefficients s s
Technological
A matrix At matrix
coefficients
Optimal Value of Zj Value in Zj Value in
Objective Function Quantity Column Quantity Column
Optimal Solution of

Decision Variables of Quantity or column
(under slack variables)
Primal
Optimal Solution of

Decision Variables of Quantity or column
(under slack variables)
Dual
Exceptional Case Infeasible case Unbounded case

Illustration 5:
Write Dual of the following LPP:
Minimize Z = 121 + 152 + 173
51 92 + 3 18
111 23 = 15
22 + 193 10
1 , 3 0 2 :
Solution:
Dual Problem:
Let 1 , 2 , 3 be the dual variables
Maximize = 181 + 152 103
51 + 112 12
91 23 = 15
1 22 193 17
1 , 3 0 2 :
Illustration 6:
Find the dual to the following LPP:
Maximize Z = 4 x1 2 x2 3x3

x1 2 x2 3
x2 3x3 6
x1 3x2 2 x3 3
x1 , x2 , x3 0
University of Delhi, B.Com. Hons.2008
Solution:
Dual Problem:
Let 1 , 2 , 3 be the dual variables.
Minimize = 31 62 + 33
1 02 3 4
21 2 + 33 9
01 + 32 23 3
1 , 2 , 3 0

Illustration 7:
Write a dual for the following linear programming problem:
Maximize Z = 4 x1 5x2 7 x3
Subject to the constraints
x1 x2 x3 10
4 x1 x2 2 x3 15
x1 4 x2 7 x3 35
x1 , x2 0 , x3 is unrestricted.
University of Delhi, B.Com. Hons.2011
Solution:
Dual Problem:
Let 1 , 2 , 3 be the dual variables.
Minimize = 101 152 353
Subject to constraints
1 42 + 3 4
1 + 2 43 5
1 22 73 = 7
1 , 2 , 3 0
Illustration 8:
Write a dual to the following LPP:
Maximize Z = 20 x1 15x2 18x3 10 x4
4 x1 3x2 10 x3 4 x4 60
x1 x2 x3 27
x2 4 x3 7 x4 35
x1 , x2 , x3 0 and 4 :
University of Delhi, B.Com Hons.2006 (CC)
Solution:
Dual Problem: Let 1 , 2 , 3 be the dual variables.
Minimize = 601 + 272 353
41 + 2 20
31 + 2 + 3 15
101 + 2 43 18
41 73 = 10
1 , 3 0 and 2 :

3. Shadow Prices of the Resources:

The shadow price associated with a particular constraint is the change in the optimal
value of the objective function per unit increase in the right hand-side value for that
constraint, all other problem data remaining unchanged. In the optimal solution, the
objective function coefficients (Zj values) for slack and surplus variables are called the
shadow prices or the dual prices.
A shadow price represents the maximum price at which we should be willing to buy
additional units of a resource. It also represents the minimal price at which we should
be willing to sell units of the resource. A shadow price might therefore be thought of as
the value per unit of a resource.
Existence of a slack/surplus variable in the final simplex tableau indicates that the
corresponding resource has not been fully utilized and its shadow price is zero.
Value Addition 1: Video

Duality in LPP
Visit the link https://www.youtube.com/watch?v=rO-ufnCNqXM to understand

the concept of Duality in Linear Programming.
Source: https://www.youtube.com/watch?v=rO-ufnCNqXM
4. Primal-Dual Solution:
The optimum solution for a dual can be read from the Final Simplex tableau of the Primal
problem and vice versa. At times it is easier to solve the dual and read solution for the
Primal. For instance, if we have a two variable minimization LPP, with four constraints,
then for solving the problem we will have to add eight constraints as surplus and
artificial variables. However, for the maximization with all constraints we will have to
add slack variables equal in number to the constraints. Therefore, it will be
computationally efficient to write the Dual of the problem and solve it to read solution of
the Primal.
Optimal Solution of the Dual
The optimal value of objective function is same for both the Primal and the Dual
solutions.
Solution of the decision variables of the Dual
The solution for the decision variables in the Dual can be read from the Final Simplex
Tableau of the Primal Problem as given below:
(i) Variable in the Dual corresponding to the constraint in the Primal:
absolute value of the entry in Cj-Zj row under the corresponding surplus variable.
(ii) Variable in the Dual corresponding to the = constraint in the Primal:
corresponding Zj value for Artificial variable.
(iii) Variable in the Dual corresponding to the <= constraint in the Primal:
absolute value of entry in Cj-Zj row under the corresponding variable.
The dual variables represent various constraints in the primal problem, therefore their
values in the final simplex solution reflects the shadow prices of the corresponding
resources.

Illustration 9:
A manufacturer produces two products A and B and earns a profit of Rs 8 on each unit of
A and Rs 7 on each unit of B. The required machines M1, M2 and M3 are available for 30
hours, 60 hours and 50 hours respectively. Product A needs 1 hour on M1, 2 hours on
M2 and 1 hour on M3. Product B needs 2 hours on M1, 3 hours on M2 and 1 hour on M3.
You are required to:
Formulate the above as Linear Programming Problem and write its associated
dual.
Solve both the primal and dual problems.
Solution:
Formulation of Primal Problem:
Let the number of units of product A and product B manufactured are 1 2
respectively.
Maximize = 81 + 72 (Total profit)
1 + 22 30 (Availability of Machine M1)
1 , 2 0
Simplex Solution:
Introducing the slack variables 1 , 2 , 3 :
Maximize = 81 + 72 + 01 + 02 + 03
1 + 22 + 1 = 30
21 + 32 + 2 = 60
1 + 2 + 3 = 50
1 , 2 , 1 , 2 , 3 0
Augmented LPP:
Maximize = 21 + 52 + 01 + 02 + 03
1 + 22 + 1 + 02 + 03 = 30
21 + 32 + 01 + 2 + 03 = 60
1 + 2 + 01 + 02 + 3 = 50
1 , 2 , 1 , 2 , 3 0
Initial Basic Feasible Solution:
An initial basic feasible solution is obtained by putting the decision variables equal to
zero and calculating values of the slack variables.
Putting 1 = 0 2 = 0
1 = 30, 2 = 60, 3 = 50 and Z=0

Accordingly, the initial tableau appears as under:

Simplex Tableau-I
8 7 0 0 0
Basic Solution Ratio=

Variable
0 1 30 1 2 1 0 0 30
0 2 60 2 3 0 1 0 30
0 3 50 1 1 0 0 1 50
0 0 0 0 0 0
8 7 0 0 0
Incoming Variable: x1 is the incoming variable because it has the highest C j - Z j value
in the Net Evaluation Row, i.e. 8. The column containing it is the key column which is
used to calculate the replacement ratios in the ratio column.
Outgoing Variable: s1 is the outgoing basic variable corresponding to the minimum
positive ratio in the ratio column, i.e. 30. The row containing it is the key row.
Pivot Value: The highlighted number at the intersection of the Key Column and the Key
Row is the Pivot Value, i.e. 1 that will be used to perform the elementary row
operation to obtain the improved solution. The simplex table-II containing the improved
solution is obtained as under:
Simplex Tableau-II
8 7 0 0 0

Variable
8 1 30 1 2 1 0 0
0 2 0 0 -1 -2 1 0
0 3 20 0 -1 -1 0 1
240 8 16 8 0 0
0 -9 -8 0 0
The Net Evaluation Row indicates that the C j - Z j values are non-positive for all the
variables, thus the solution is optimal.
Optimal solution:
x1 =30 and x2 = 0
Maximum value of the objective function, Z=240.
Thus, 30 units of Product A and 0 units of Product B will be manufactured yielding
the maximum total profit of Rs 240.

Dual Problem:
Let 1 , 2 and 3 is the worth (Rs per hour) of the machines M1, M2, M3 used for
producing product A and product.
Minimize = 301 + 602 + 503
1 + 22 + 3 8
21 + 32 + 3 7
1 , 2 , 3 0
Simplex Solution:
Introducing the surplus variables, viz., 1 , 2 and artificial variables viz., 1 , 2 :
Minimize = 301 + 602 + 503 + 1 + 2
1 + 22 + 3 1 + 1 = 8
21 + 32 + 3 2 + 2 = 7
1 , 2 , 3 , 1 , 1 , 2 , 2 0
Augmented LPP:
Minimize = 301 + 602 + 503 + 01 + 02 + 1 + 2
1 + 22 + 3 1 + 02 + 1 + 02 = 8
21 + 32 + 3 + 01 2 + 01 + 2 = 7
1 , 2 , 3 , 1 , 1 , 2 , 2 0
An initial basic feasible solution is obtained by putting the decision variables and the
surplus variables equal to zero and calculating values of the slack and artificial variables.
Putting y1 = 0, 2 = 0, 3 = 0, 1 = 0 and 2 = 0
1 = 8, 2 = 7 and Z=15M
Simplex Tableau-I
30 60 50 0 0 M M

Variable
M 1 8 1 2 1 -1 0 1 0 8/2=4
M 2 7 2 3 1 0 -1 0 1 7/3
15M 3M 5M 2M M M M M
-3M+30 -5M+60 -2M+60 M M 0 0
Incoming Variable: is the incoming variable because it has the least C j - Z j value in
the Net Evaluation Row, i.e.5M+60. The column containing it is the key column which
is used to calculate the replacement ratios in the ratio column.

Outgoing Variable: is the outgoing basic variable corresponding to the minimum

positive ratio in the ratio column, i.e. 7/3. The row containing it is the key row.
Simplex Tableau-II
30 60 50 0 0 M M

Variable

M 10/3 -1/3 0 1/3 -1 2/3 1 -2/3 =5

7 3
60 7/3 2/3 1 1/3 0 -1/3 0 1/3 =-7
3 1
2 2M
+ 3 +40 60 3
+ 20 M 3
20 M + 20
3
5
10 0
3
+ 30 M

+ 0 3
20
3
Incoming Variable: is the incoming variable because it has the least C j - Z j value in

the Net Evaluation Row, i.e. + . The column containing it is the Key Column

which is used to calculate the replacement ratios in the ratio column.
Outgoing Variable: A1 is the outgoing basic variable corresponding to the minimum
positive ratio in the ratio column, i.e. 5. The row containing it is the Key Row.
Row is the Pivot Value, i.e. 2/3 that will be used to perform the Elementary Row
Operation to obtain the improved solution. The simplex table-III containing the
improved solution is obtained as under:
Simplex Tableau-III
30 60 50 0 0 M M

Variable
1 1 3 3
0 5 0 1 1 ve
2 2 2 2
1 1 1
60 4 1 0 0 8
2 2 2
240 30 60 30 30 0 30 0
0 0 20 30 0 M-30

The Net Evaluation Row indicates that the C j - Z j values are non-negative for all the
variables, thus the solution cannot be minimized further and therefore it is optimal.
Optimal solution:
= , = 4 and = 0
Minimum value of the objective function, Z*=240.
The non-basic variable y1 has zero value in the row which indicates that the
solution is multiple optimal.
Obtaining the Alternate Solution:

Incoming Variable: The alternate solution can be obtained by choosing as the
incoming variable. It is the incoming variable because it has the zero value in the Net
Evaluation Row of the final optimal solution.
The column containing 1 is the Key Column which is used to calculate the replacement
ratios in the ratio column.
Outgoing Variable: 2 is the outgoing basic variable corresponding to the minimum
positive ratio in the ratio column, i.e. 8. The row containing it is the Key Row.
Row is the Pivot Value, i.e. 1/2 that will be used to perform the elementary row
operation to obtain the improved solution.
The simplex table-IV containing the alternate solution is obtained as under:
Simplex Tableau-IV
30 60 50 0 0 M M
Basic Solution

Variable
0 9 0 1 1 2 1 2 1
30 8 1 2 1 1 0 1 0
30 60 30 30 0 30 0
0 0 20 30 0 M-30
The Net Evaluation Row indicates that the C j - Z j values are non-negative for all the
Alternate Optimal Solution:
= , = 0 and = 0
Minimum value of the objective function, Z*=240.

Comparative Solution of Primal and Dual
Primal Dual
Basic Basic

Variable Variable
1 30 0 8 0
2 0 -9 0 0
0 -8 0 20
0 0 1 0 30
20 0 2 9 0
Z 240 Z* 240
Illustration 10:
A diet is to contain at least 20 ounces of protein and 15 ounces of carbohydrates. There
are three foods: A, B and C available in the market, costing Rs 2, Rs 1 and Rs 3 per unit
respectively. Each unit of A contains 2 ounces of protein and 4 ounces of carbohydrates.
Each unit of B contains 3 ounces of protein and 2 ounces of carbohydrates. Each unit of
C contains 4 ounces of protein and 2 ounces of carbohydrates.
(i) Formulate LPP so as to minimize the cost of diet.
(ii) Find its dual.
(iii) Solve the dual by simplex method and from the dual solution read the solution to
the primal problem. University of Delhi, B. Com. Hons.2007
Solution:
(i) Formulation of LPP:
Let the units of food A, B and C be 1 , 2 and 3 respectively.
The LPP can be expressed as:
Minimize = 21 + 2 + 33 (Total cost of diet)
21 + 32 + 43 20 (Protein constraint)
41 + 22 + 23 15 (Carbohydrates constraint)
1 , 2 , 3 0
(ii) Dual Problem:
Let 1 2 be the shadow price of Protein (per ounce) and Carbohydrates (per ounce)
respectively.
The Dual can be written as:
Maximize = 201 + 152
21 + 42 2 (Food A constraint)
31 + 22 1 (Food B constraint)
41 + 22 3 (Food C constraint)
1 , 2 0

(ii) Simplex Solution:

Introducing the slack variables 1 , 2 , 3 the Dual can be expressed as:
Maximize = 201 + 152 + 01 + 02 + 03
21 + 42 + 1 = 2
31 + 22 + 2 = 1
41 + 22 + 3 = 3
1 , 2 , 1 , 2 , 3 0
Augmented LPP:
Maximize = 201 + 152 + 01 + 02 + 03
21 + 42 + 1 + 02 + 03 = 2
31 + 22 + 01 + 2 + 03 = 1
41 + 22 + 01 + 02 + 3 = 3
1 , 2 , 1 , 2 , 3 0
zero, and calculating values of the slack variables.
Putting 1 = 0, 2 = 0
1 = 2, 2 = 1, 3 = 3 and =
Simplex Tableau-I
20 15 0 0 0

Variable
2
0 1 2 2 4 1 0 0 =1
2

0 2 1 3 2 0 1 0

3
0 3 3 4 2 0 0 1
4
0 0 0 0 0 0
20 15 0 0 0
Incoming Variable: 1 is the incoming variable because it has the highest C j - Z j value


Simplex Tableau-II
20 15 0 0 0

Variable
/
0 1 4/3 0 8/3 1 2/3 0 =
/
1/3 1
20 1 1/3 1 2/3 0 1/3 0 =
2/3 2
5/3
0 3 5/3 0 2/3 0 4/3 1 =
2/3
20/3 20 40/3 0 20/3 0
0 5/3 0 20/3 0
Incoming Variable: is the incoming variable because it has the highest positive C j -
Z j value in the Net Evaluation Row, i.e. 5/3. The column containing it is the key
column which is used to calculate the replacement ratios in the ratio column.
operation to obtain the improved solution. The simplex table-III containing the
Simplex Tableau-III
20 15 0 0 0

Variable
15 2 1/2 0 1 3/8 1/4 0
20 1 0 1 0 -1/4 1/2 0
0 3 2 0 0 0 1 1
15/2 20 15 5/8 25/4 0
0 0 -5/8 25/4 0
Optimal solution: 1 =0 and 2 = 1/2
Maximum value of the objective function, Z=15/2.
Reading the Solution of the Primal under the slack variables in the C j - Z j row:
Optimal solution of the Primal: x1 =5/8 and x2 = 25/4

Maximum value of the objective function, Z=15/2.
Thus, 5/8 units of Food A and 25/4 units of Food B is the optimal solution yielding the
minimum cost of diet as Rs 15/2.

5. Economic Interpretation of Dual:

The values of dual variables in the optimal solution represent the corresponding the
shadow prices or the worth of the constraints in the Primal. In a production problem, the
shadow prices indicate which of the resource should be given priority. It is the one with
the highest shadow price. The resources with zero shadow prices are the under-utilized
ones and they have spare capacity.
Illustration 11:
A manufacturing company makes three products, each of which requires three
operations as part of the manufacturing process. The company can sell all of the
products it can manufacture but its production capability is limited by the capacity of its
operation centres. Additional data concerning the company are as follows:
Manufacturing Requirements Selling
(Hours/Unit) Cost
Product Price
(Rs)
Centre-I Centre-II Centre-III (Rs)
A 1 3 2 11 15
B 3 4 1 12 20
C 2 2 2 10 16
Hours Available 160 120 180
What should the product mix be? Write the dual of the given problem.
Give its economic interpretation and use it for checking the optimal solution of the given
problem. University of Delhi, B.Com. Hons. 2011
Solution:
Formulation of Primal Problem:
Let the units of products A, B and C manufactured are 1 , 2 and 3 be respectively.
Revenue can be calculated as:
Revenue
Product Selling Price (Rs) Cost (Rs)
(SP-Cost) (Rs)
A 15 11 4
B 20 12 8
C 16 10 6
The LPP can be expressed as under:

Maximize = 41 + 82 + 63 (Total Revenue)
1 + 32 + 23 160 (Centre I constraint)
31 + 42 + 23 120 (Centre II constraint)
21 + 2 + 23 180 (Centre III constraint)
1 , 2 , 3 0
Dual Problem:
Let the dual variables corresponding to the shadow price of Centre I (per Hour), Centre
II (per Hour) and Centre III (per Hour), are 1 , 2 and 3 respectively.

The Dual can be written as:

Minimize = 1601 + 1202 + 1803
1 + 32 + 23 4 (Product A constraint)
31 + 42 + 3 8 (Product B constraint)
21 + 22 + 23 6 (Product C constraint)
1 , 2 , 3 0
Simplex Solution of the Primal:
Introducing the slack variables 1 , 2 , 3 the LPP can be expressed as:
Maximize = 41 + 82 + 63 + 01 + 02 + 03
1 + 32 + 23 + 1 = 160
31 + 42 + 23 + 2 = 120
21 + 2 + 23 + 3 = 180
1 , 2 , 3 , 1 , 2 , 3 0
Augmented LPP:
Maximize = 41 + 82 + 63 + 01 + 02 + 03
1 + 32 + 23 + 1 + 02 + 03 = 160
31 + 42 + 23 + 01 + 2 + 03 = 120
21 + 2 + 23 + 01 + 02 + 3 = 180
1 , 2 , 3 , 1 , 2 , 3 0
zero, and calculating values of the slack variables.
Putting 1 = 0, 2 = 0 and 3 = 0
1 = 160, 2 = 120, 3 = 180 and =
Simplex Tableau-I
4 8 6 0 0 0

Variable
160
0 1 160 1 3 2 1 0 0 = 53.3
3

0 2 120 3 4 2 0 1 0 =

180
0 3 180 2 1 2 0 0 1 = 180
1
0 0 0 0 0 0 0
4 8 6 0 0 0

Incoming Variable: 2 is the incoming variable because it has the highest C j - Z j value
Simplex Tableau-II
4 8 6 0 0 0

Variable
5 1 3 70
0 1 70 0 1 0 = 140
4 2 4 1/2
3 1
8 2 30 1 0 0 =
4 4 /
5 3 1 150
0 3 150 0 0 1 = 100
4 2 4 3/2
240 6 8 4 0 2 0
-2 0 2 0 -2 0
Incoming Variable: is the incoming variable as it has the highest positive C j - Z j

value in the Net Evaluation Row, i.e. 2. The column containing it is the key column
which is used to calculate the replacement ratios in the ratio column.
operation to obtain the improved solution.
The simplex table-III containing the improved solution is obtained as under:
Simplex Tableau-III
4 8 6 0 0 0
Basic Solution

Variable
0 1 40 2 -1 0 1 1 0
3 1
6 3 60 2 1 0 0
2 2
0 3 60 -1 -3 0 0 1 1
360 9 12 6 0 3 0
-5 -4 0 0 -3 0

The Net Evaluation Row indicates that the values are non-positive for all the
Optimal solution:
=0, = and =60
Economic interpretation of dual:
The dual variables 1 , 2 and 3 represent the shadow prices or the worth of the
constraints corresponding to Centre I (per Hour), Centre II (per Hour) and Centre III
(per Hour), used to manufacture the three products respectively. Z will be the minimum
cost involved in the production.
The shadow prices are Rs 0 per hr., Rs3 per hr. and Rs 0 per hr. for Centre I, II and III
respectively. If the production capacity is to be expanded then the resource having
highest shadow price is given priority. Here Centre II will be given priority.
Centre I and Centre II have unutilized capacity of 40 hours and 60 hours respectively.
Optimal Solution of the Dual:
1 = 0, 2 = 3 and 3 = 0 and Z=360.
6. Sensitivity or Post Optimality Analysis:

Sensitivity Analysis studies how the optimal solution a linear programming is affected by
the change in its parameters. It helps us to understand the impact of the changes in the
parameters (objective function coefficients, right hand sides and technological
coefficients) of the LPP on the optimal solution.
Illustration 12:
A boat manufacturing company makes three different kinds of boats. All can be made
profitably in this company, but the company's production is constrained by the limited
amount of labour, wood and screws available each month. The director will choose the
combination of boats that maximizes his revenue in view of the information given in the
following table:
Input Row Boat Canoe Kayak Monthly Availability
Labour 12 7 9 1260 hours
Wood (Board feet) 22 18 16 19008
Screws(kg) 2 4 3 396kg
Selling Price in Rs 4,000 2,000 5,000
(i) Formulate the above as a LPP and write its dual.

(ii) Solve the primal by Simplex method.
(iii) What are the shadow prices?
(iv) Which, if any, of the resources are not fully utilized? If so, how much is the spare
capacity left?
(v) How much wood will be used to make all the boats in the optimal solution?
(vi) If 9 units of Canoe are produced, what will be the impact on the product mix and
revenue? University of Delhi, B.Com. Hons. 2007 Modified

Solution:
(i) (a) Formulation of Primal LPP:
Let the number of Row Boat, Canoe and Kayak manufactured are 1 , 2 and
3 respectively.
The LPP can be expressed as under:
Maximize = 40001 + 20002 + 50003 (Total Revenue)
121 + 72 + 93 1260 (Labour constraint)
221 + 182 + 163 19008 (Wood constraint)
21 + 42 + 33 396 (Screws constraint)
1 , 2 , 3 0
(b) Dual Problem:
Let 1 , 2 and 3 be the shadow price of Labour (per Hour), Wood (per Board feet)
and Screws (per kg.) used to manufacture the boats respectively. The Dual can be
written as:
Minimize = 12601 + 190082 + 3963 (Total shadow price of the resources)
121 + 222 + 23 4000 (Row Boat constraint)
71 + 182 + 43 2000 (Canoe constraint)
91 + 162 + 33 4000 (Kayak constraint)
1 , 2 , 3 0
(ii) Simplex Solution of the Primal:
Introducing the slack variables 1 , 2 , 3 the LPP can be expressed as:
Maximize = 40001 + 20002 + 50003 + 01 + 02 + 03
121 + 72 + 93 + 1 = 1260
221 + 182 + 163 + 2 = 19008
21 + 42 + 33 + 3 = 396
1 , 2 , 3 , 1 , 2 , 3 0
Augmented LPP:
Maximize = 40001 + 20002 + 50003 + 01 + 02 + 03
121 + 72 + 93 + 1 + 02 + 03 = 1260
221 + 182 + 163 + 01 + 2 + 03 = 19008
21 + 42 + 33 + 01 + 02 + 3 = 396
1 , 2 , 3 , 1 , 2 , 3 0


zero and calculating values of the slack variables.
Putting 1 = 0, 2 = 0 3 = 0
1 = 1260, 2 = 19008, 3 = 396 and Z=0
Simplex Tableau-I
4000 2000 5000 0 0 0

Variable
1260
0 1 1260 12 7 9 1 0 0 = 140
9
19008
0 2 19008 22 18 16 0 1 0 = 1188
16

0 3 396 2 4 3 0 0 1 =

0 0 0 0 0 0 0
4000 2000 5000 0 0 0
Incoming Variable: 3 is the incoming variable because it has the highest value
in the Net Evaluation Row, i.e. 5000. The column containing it is the key column which
is used to calculate the replacement ratios in the ratio column.
Simplex Tableau-II
4000 2000 5000 0 0 0

Variable

0 1 72 6 -5 0 1 0 -3 =

34 10 16896 25344
0 2 16896 0 0 1 -16/3 =
3 3 34/3 17
2 4 132
5000 3 132 1 0 0 1/3 = 198
3 3 2/3
10000 20000 5000

160,000 5000 0 0
3 3 3
14000 5000
0 0 0
3 3

Incoming Variable: is the incoming variable because it has the highest positive C j -
Z j value in the Net Evaluation Row, i.e. 2000/3. The column containing it is the key
column which is used to calculate the replacement ratios in the ratio column.
operation to obtain the improved solution. The simplex table-III containing the
Simplex Tableau-III
4000 2000 5000 0 0 0

Basic Solution

Variable
5 1 1
4000 1 12 1 0 0
6 6 2
55 17
0 2 16760 0 0 1 1/3
9 9
17 1
5000 3 124 0 1 0 2/3
9 9
55000 1000 4000
668000 4000 5000 0
9 9 3
37000 1000 4000
0 0 0
9 9 3
Optimal solution:
1 =12 and 2 = 40 and 3 =124
Thus, 12 units of Row Boat and 124 units of Kayak will be manufactured yielding the
maximum revenue amounting to Rs 668000.
(iii) Shadow prices of Labour, Wood and Screws are given by the absolute values of
the slack variables in the i.e. net evaluation row as Rs 1000/9 per hour, Rs 0
per board feet and Rs 4000/3 per kg respectively.
(iv) Wood represented by the slack variable S2 is unutilized as it remains as a basic
variable. The spare capacity of wood is 16,760 Board Feet.
(v) Wood used to make all the boats in the optimal solution is calculated as:
= 22 Board feet p.u. X 12units (Row Boat) +16 Board feet p.u. X 124 units (Kayak)
= 2248 Board Feet.
Alternatively, it can be calculated as:
Utilization=Availability Spare capacity
=19008 16760 = 2248 Board feet.
(vi) For interpreting the impact of producing 9 units of Canoe represented by 2 , we take

the 2 column of the final simplex tableau:
Basic Solution

Variable
5
1 12
6
55
2 16760
9
17
3 124
9
55000
668000
9
37000

9
New Product Mix will be:

5
Units of Row Boat (1 ) = 12 [ (9)] = 19.5units
6
Units of Canoe (2 ) = 9 units

17
Units of Kayak (3 ) = 124- (9) = 107units
9
37000
New Revenue = 6,68,000 (9) = Rs 6,31,000
9
Illustration 12:
Given the simplex tableau for a maximization problem of linear programming:
Product
Quantity
Mix
4 2 1 1 1 0 6
0 2 1 0 -1 1 2
i) Test whether the above table gives optimum solution. If not, improve it and find the
optimum solution.
ii) If s1 and s2 are slack variables at Machine-I and Machine-II, what is the maximum
price you will like to pay for one hour of each machine?
University of Delhi, B.Com. Hons. 2006
Solution:
Simplex Tableau
3 4 0 0
Basic Solution
Ratio=

Variable
4 2 6 1 1 1 0
0 2 2 1 0 1 1
24 4 4 4 0
1 0 4 0

(i) The given solution is optimum solution with 1 =0 and 2 = 6 because the value
of is non-positive for all the variables. Accordingly the objective function
stands maximized at Z=24.
(ii) The maximum price the producer will like to pay for one hour of each machine
is given by the shadow prices. The shadow prices of the Machine I and
Machine II, is the absolute values of and variables in row i.e. Rs 4
per hour of Machine I and Rs 0 for Machine II (which has 2 hours unutilized).
Illustration 13:
Given below are the objective function, the constraints and the final simplex tableau for
a product mix LPP:
Maximize Z = 15x1 + 12x2 + 11x3 + 0S1 + 0S2 + 0S3
3x1 + 4x2 + 5x3 63 (hours, Department A)
4x1 + x2 + 4x3 64 (hours, Department B)
x1 + 4x2 + 2x3 40 (hours, Department C)
x1, x2, x3 0
Final Simplex Tableau
Cj 15 12 11 0 0 0
Cj Product mix x1 x2 x3 s1 s2 s3 Quantity
12 x2 0 1 8/13 4/13 3/13 0 60/13
15 x1 1 0 11/13 1/13 4/13 0 193/13
0 s3 0 0 -17/13 15/13 8/13 1 87/13
Zj 15 12 261/13 33/13 24/13 0 3615/13
CjZj 0 0 -118/13 33/13 24/13 0
(i) Write the optimal product mix and the profit contribution shown by the above
solution.
(ii) Is this solution feasible? Why? Give brief reason(s).
(iii) Does the problem have any alternative optimal solution? If so, show one such
solution.
(iv) Indicate the shadow prices of three departments.
(v) If the company wishes to expand the production capacity, which of the three
departments should be given priority.
(vi) If the company produces thirteen units of x3 how many units of x1 and x2 shall
have to be reduced, if any?
(vii) If a customer is prepared to pay higher prices for product x3 how much should the
price be increased so that the company's profit remains unchanged?
(viii) Indicate whether the solution given in the table is degenerate. If yes, which
variable is degenerated?

Solution:
60 193
(i) The optimal product mix is 1 = , 2 = 3 = 0 . The profit
13 12
3615
contribution is Rs. .
13
(ii) This solution feasible because there is no artificial variable in the optimal solution.
(iii) No, the problem does not have any alternative optimal solution because the non-
basic variables viz., x3, s1 and s2 do not have a zero Cj-Zj value.
(iv) The shadow prices of three departments are Rs 33/13 per unit for Department A,
Rs 24/13 per unit for Department B and Rs 0 per unit for Department C.
(v) Dept. A should be given priority to expand the production capacity because it has
the highest shadow price.
11
(vi) If the company produces thirteen units of x3 then 11 units of x1 13 and 8 units
13
8
of x2 13 shall have to be reduced.
13
(vii) If a customer is prepared to pay higher prices for product x3 the price should be
increased by Rs 118/13 so that the company's profit remains unchanged.
(viii) The solution given in the table is not degenerate because the basic variable do not
have zero in the quantity or solution column.
Summary:
For every Linear Programming Problem there exists a Dual that expresses the problem
with a resource orientation. The original problem is called the Primal Problem. The
solution of a Linear Programming Problem can be read from the final simplex tableau of
either Primal or its Dual for all the variables.
At times it is easier to solve the dual problem instead of the Primal Problem, because of
easier computation.
The objective in the Dual is the opposite of the objective in the Primal. If the Primal is
a Maximization Problem then the Dual will be a Minimization Problem and vice versa. The
coefficients of the decision variables in the Objective function of the Primal become
the quantities on the RHS of the resource constraints of the Dual and the vice versa.
The Technological Coefficients in the constraints of the dual problem are the
transpose of the technological coefficients of the constraints in the Primal.
constraints in the Primal correspond to constraints in the Dual and vice versa.
Number of decision variables in the Primal is equal to the number of constraints in
the Dual and vice versa.
In a Standard Linear programming problem, there is non-negativity restriction on
the variables. It implies that the variables can assume values that are greater than or
equal to zero and cannot be negative. When a variable is unrestricted, it can assume
positive, zero or negative value. Therefore, we have to convert them into non-negative
variables by expressing the unrestricted variable as a difference of two non-negative
variables.
The shadow price associated with a particular constraint is the change in the optimal
value of the objective function per unit increase in the right hand-side value for that
constraint, all other problem data remaining unchanged. In the optimal solution, the
objective function coefficients (Zj values) for slack and surplus variables are called the
shadow prices or the dual prices.
A shadow price represents the maximum price at which we should be willing to buy
additional units of a resource. It also represents the minimal price at which we should be
willing to sell units of the resource. A shadow price might therefore be thought of as the
value per unit of a resource.

Existence of a slack/surplus variable in the final simplex tableau indicates that the
corresponding resource has not been fully utilized and its shadow price is zero.
The optimum solution for a dual can be read from the Final Simplex tableau of the Primal
problem and vice versa. The optimal value of objective function is same for both the
Primal and the Dual solutions.
The solution for the decision variables in the Dual can be read from the Final Simplex
Tableau of the Primal Problem. The value of the variable in the Dual corresponding to the
constraint in the Primal is the same as the absolute value of the entry in Cj-Zj row
under the corresponding surplus variable. The solution of the variable in the Dual
corresponding to the = constraint in the Primal is read from the corresponding Zj value
for Artificial variable. The value of the Variable in the Dual corresponding to the <=
constraint in the Primal is read from the absolute value of entry in Cj-Zj row under the
corresponding variable.
The dual variables represent various constraints in the primal problem, therefore their
values in the final simplex solution reflects the shadow prices of the corresponding
resources. The values of dual variables in the optimal solution represent the
corresponding the shadow prices or the worth of the constraints in the Primal. In a
production problem, the shadow prices indicate which of the resource should be given
priority. It is the one with the highest shadow price. The resources with zero shadow
prices are the under-utilized ones and they have spare capacity.
Sensitivity Analysis studies how the optimal solution a linear programming is affected by
the change in its parameters. It helps us to understand the impact of the changes in the
Glossary:
Artificial variable: Artificial variable is added to the left-hand side of >= and =
constraints.
Basic Solution: It is a solution obtained by setting n-m variables equal to zero and
solving for the remaining m variables (decision, slack, surplus and artificial variables) is
called a basic solution, where n is the number of variables and m is the number of
linear simultaneous equations (constraints) and n>m.
Linear Programming: It is a mathematical technique for optimum allocation of limited
or scarce resources, such as labour, material, machine, money, energy and so on , to
several competing activities such as products, services, jobs and so on, on the basis of a
given criteria of optimality.
Non-basic Variable: The variables in a LPP that are set equal to zero are called non-
basic variables.
Objective function: It is the criterion for selecting the best values of the decision
variables such as profit maximization, sales maximization, cost minimization, etc.
Pivot column: For a non-optimal solution, the column containing the incoming variable
is the Pivot Column. It is the column with the variable having largest value for a
maximization problem and with most negative for a minimization problem as
incoming variable.
Pivot Number: The Pivot number is the number which lies at the intersection of the
Pivot Row and Pivot Column.
Pivot row: The basic variable row with the least non-negative replacement ratio that
is found by dividing each with the corresponding element in the Pivot Column is called
the pivot row.
Slack Variable: It is a non-negative variable added to the left-hand side of type

constraint to make it equal to type constraint. In economic terms the slack variable
represents the unused capacity (requirement minus production).
Surplus variable: It is a non-negative variable subtracted from the left-hand side of
>= type constraint to make it equal to type constraint. In economic terms the
surplus variable represents the excess generated over the requirement (production
minus requirement).
Exercises:
I. Fill in the Blanks:
1. The optimal value of Objective function of a Dual is _________ the optimal
value of Objective function of the associated Primal.
2. The objective in the Dual is the ________of the objective in the Primal.
3. If the Primal is a Minimization Problem then the Dual will be a ___________Problem.
4. The coefficients of the decision variables in the objective function of the Dual are the
same as the _________________ of the resource constraints of the Primal.
5. The Technological Coefficients in the constraints of the dual problem are the
________ of the technological coefficients of the constraints in the Primal.
6. Number of ____________in the Primal is equal to the number of constraints in the
Dual and vice versa.
7. In a Standard Linear programming problem, there is a ______________restriction on
the variables.
8. Dual of a Dual LPP is the __________.
9. The value of the dual variables represent the ____________of the corresponding
resources.
10. ____________ analysis helps us to understand the impact of the changes in the
Answers: 1. equal to 2. opposite 3. maximization 4. RHS values 5. transpose

6. decision variables 7. non-negativity 8. Primal LPP 9. shadow prices 10. sensitivity
II. Short Answer Questions:

1. What do you mean by a Dual? Illustrate.
2. What is a standard linear programming problem? Write its dual.
3. What is a standard minimization problem? How is the standard minimization
problem related to the dual standard maximization problem?
4. What does it mean when a constraint is not binding?
5. What is the interpretation of the dual prices?
6. Why the shadow prices are always zero when the optimal value of the
corresponding variable is positive?
7. Why is the shadow price positive only when the corresponding constraint is
binding?
8. What does it mean when the optimal value of a variable is zero and the shadow
price for that variable is also zero?

III. Numerical Questions:

1. Write Dual of the following LPP:
Minimize Z = 51 62 + 43
31 + 42 + 63 9
1 + 32 + 23 5
71 42 3 10
1 22 + 43 4
21 + 52 33 = 3
1 , 2 , 3 0
2. A company wishes to get at least 160 million 'audience exposures' the number of
times one of the advertisements is seen or heard by a person. Because of the nature
of the product the company wants at least 60 million of these exposures to involve
persons with family income of over Rs 10,000 a month and at least 80 million of the
exposures to involve persons between 18 and 40 years of age.
The relevant information pertaining to the two advertising media under consideration-
magazine and television is given below:
Magazine Television
Cost per advertisement (Rs thousand) 40 200
Audience per advertisements (million) 4 40

Audience per advertisement with monthly income over Rs
3 10
10000 (million)
Audience (per advertisement) in the age group 18-40 (million) 8 10
The company wishes to determine the number of advertisements to be released each

in magazine and television so as to keep the advertisement expenditure to the
minimum. Formulate it as a linear programming problem. Write 'dual' of this problem.
Solve the DUAL problem to find the minimum expenditure and its allocation among
the two media.
3. The XYZ company manufactures two products A and B. These are processed on same
machine. A takes 10 minutes per item and B takes 2 minutes per item on machine.
Machine can run for a maximum of 35 hours in a week. Product A requires 1 kg and
Product B 0.5. kg of raw material per item, the supply of which is 600 kg per week.
Not more than 800 items of product B are required per week.
If the product A costs 5 per item and can be sold for 10 and product B costs 5 and can
be sold for 8 per item, determine by simplex method how many items per week can
be produced for A and B in order to maximize the profit. Also write the dual of the
problem.
4. A firm produces three types of biscuits: A, B and C. It packs them in assortment of
two sizes I and II. Size I contains 20 biscuits of type A, 50 biscuits of type B and 10
biscuits of type C. The Size II contains 10 biscuits of type A, 80 biscuits of type B and
60 biscuits of type C. A buyer intends to buy 120 biscuits of type A, 740 biscuits of
type B and 240 biscuits of type C.
Determine the least number of packets he should buy. Write the associated Dual. Use
simplex method to solve dual and read solution of the Primal.

5. Solve the following LPP by simplex method. The company makes three different kinds
of products which are processed in two departments X and Y.
Products
A B C Capacity
Department
X 1 4 5 2000
(hrs.)
Time
Y 2 5 7 2100
Profit per unit (Rs) 10 15 12
(i) Formulate the above as a LPP.

(ii) Obtain optimal solution to the problem by using the simplex method. Which of the
three products shall not be produced by the firm? Why?
(iii) How much should be the increase in profit if the product, not produced, if any, is
to be produced?
(iv) Write dual of the problem and determine the optimal values of the dual variables.
(v) What are shadow prices of the resources?
6. Given below is information from a simplex tableau obtained after few iterations to
solve a LPP to maximize profit per unit of the four products A(x1), B(x1), C(x3), D(x4)
which are produced on three machines X(s1), Y(s3), Z(s3); where corresponding
variables are indicated in brackets.
Cj 4 8 5 1 0 0 0
Product mix x1 x2 x3 x4 s1 s2 s3 Quantity
x3 1/20 0 1 1/2 3/10 0 -1/5 125
s2 13/4 0 0 -1/2 -1/2 1 0 425
x2 13/20 1 0 1/2 1/10 0 6/15 25
(i) Write the optimal product mix and the profit contribution as per the solution given
in the above tableau.
(iii) Does the above problem have an alternative optimal solution? If so, show one such
alternate solution.
(iv) Indicate the shadow prices of three machines.
(v) Which of the constraints are binding?
(vi) If the company produces 20 units of x1 how many units of other products shall
have to be reduced, if any?
(vii) If a customer is prepared to pay higher prices for product x4 how much should the
(viii) Indicate whether the solution given in the table is degenerate. If yes, which

7. Given below is the final simplex tableau for a linear programming

Final Simplex Tableau
Cj Product mix x1 x2 s1 s2 Quantity
50 x2 1 1 1 0 10
0 s2 1 0 1 1 3
Cj 40 50 0 0
Zj 50 50 50 0 500
CjZj -10 0 -50 0
(i) Write the optimal product mix and the profit contribution shown by the above
solution.
(iii) Does the problem have any alternative optimal solution? If so, show one such
solution.
(iv) If S1 is slack in Machine A and S2 is slack in Machine B, indicate the shadow prices
of the machines.
(v) If the company wishes to expand the production capacity, which of the machines
should be given priority.
(vi) If a customer is prepared to pay higher prices for product x1 how much should the
(vii) Indicate whether the solution given in the table is degenerate. If yes, which
8. Given below is a simplex tableau for a maximization linear programming problem:
4 5 8 0 0 0
Basic Solution

Variable
5 2 10 0 1 3/5 0 1 0
4 1 5 1 0 20/4 0 -1 0
0 1 20 0 0 -1/5 1 0 1
(i) Is the solution optimal?

(iii) Does the problem have multiple optimal solution? If so, show one such solution.
(iv) Which of the resource(s) is being used to the full capacity?
(v) Which of the resource(s) has excess or spare capacity?
(vi) If a customer is prepared to pay higher prices for product x3 how much should the
price be increased so that it is produced?
(vii) Indicate whether the solution given in the table is degenerate. If yes, which
(viii) Find the alternate solution, if any.

9. Given below is the final simplex tableau for a maximization linear programming
problem where the variables , , are the units of Product A, B and C
respectively and , , are the slack variables representing Material (in kg.),
Machine (in hrs.) and Labour (in hours).
5 15 8 0 0 0
Basic Solution

Variable
15 2 10 1/3 1 0 1/3 -1/6 0
8 3 5 2/3 0 1 -1/3 5/12 0
0 3 20 -8/3 0 0 1/3 -17/12 1
(i) What is the optimal Production mix?

(ii) Investigate the effect of the following on the optimal product mix:
a. An increase of 36 machine hours
b. A decrease of 12 kg of material
c. 6 units of product A are to be produced
Answers to Numerical Questions:

1. Let 1 , 2 , 3 , 4 , 5 be the dual variables
Maximize = 91 + 52 103 + 44 + 35
31 + 2 73 + 4 + 25 5
41 + 32 + 23 24 + 55 6
61 + 22 103 + 44 35 4
1 , 2 , 3 , 4 0 5 :
2. Let the number of Television and Magazine advertisements be 1 2 respectively.
Minimize = 401 + 2002 (Expenditure on media)
41 + 402 160 (Total Audience exposure)
31 + 102 60 (Audience based on Monthly income)
81 + 102 80 (Audience based on Age group)
1 , 2 0
Dual Problem: Let 1 , 2 3 be the dual variables corresponding to the three
constraints of the primal.
Maximize = 1601 + 602 + 803
41 + 32 + 83 40
401 + 102 + 103 200
1 , 2 , 3 0

Solution of Primal:
Minimum costt Z=Rs1000 and 1 = 10 2 = 3.
Thus, 10 advertisements on TV and 3 in magazine will minimize the expenditure.
3. (i) Formulation:
Let x1 and x2 be the number of units of Product A and B respectively. The
required LPP is:
Maximize = 101 + 22 (Total profit)
101 + 22 35 (Machine Hour constraint)
1 + 0.52 600 (Raw material constraint)
2 800 (Product B constraint)
1 , 2 , 3 0
(ii) The optimum solution is 35 with x1 =3.5 and x2 = 0. Thus 3.5 units of Product A
will be produced by the firm giving a profit of Rs35.
(iii) Dual Problem:
Let 1 , 2 and 3 be dual variables corresponding to the Machine, Raw material
and Product constraints respectively. The Dual can be written as:
Minimize = 351 + 6002 + 8003
10 1 + 2 10 (Product A constraint)
21 + 0.52 + 3 2 (Product B constraint)
1 , 2 , 3 0
4. Let 1 and 2 represent the number of packets of size I and size II respectively. LPP:
Minimize = 1 + 2
Subject to the constraint
201 + 102 120 (Biscuit A)
501 + 802 740 (Biscuit B)
101 + 602 240 (Biscuit C)
1 , 2 0
Dual Problem:
Let 1 , 2 and 3 be dual variables corresponding to the Machine, Raw material and
Product constraints respectively. The Dual can be written as:
Minimize = 1201 + 7402 + 2403
20 1 + 502 + 103 1 (Size I constraint)
101 + 802 + 603 1 (Size II constraint)
1 , 2 , 3 0
Solution: Minimum number of packets Z=10 is the optimal solution with 2 Size I
packets and 8 Size II packets, given by 1 = 2 2 = 8.

5. (i) Formulation: Let 1 , 2 and 3 be the units of product A, B and C respectively. The
LPP can be expressed as under:
Maximize = 101 + 152 + 123 (Total profit)
1 + 42 + 53 2000 (Dept. X constraint)
21 + 32 + 73 2100 (Dept. Y constraint)
1 , 2 , 3 0
(ii) The optimum solution is 10500 with x1 =380, x2 = 480 and x3 = 0. Product C is
not produced by the firm because it incurs a loss of Rs 23 per unit as shown by the
value in Cj Zj row for 3 to produce.
(iii) There should be Rs 23 per unit increase in profit of Product C for it to be produced.
(iv) Dual Problem:
Let 1 and 2 be dual variables corresponding to constraints of Dept. X and Y
respectively. The Dual can be written as:
Minimize = 20001 + 21002
1 + 22 10 (Product A constraint)
41 + 32 15 (Product B constraint)
51 + 72 12 (Product C constraint)
1 , 2 0
The optimum solution of Dual problem is 10500 with 1 =0 and 2 = 5.
(v) Shadow prices of the Dept. X and Dept. Y are Rs 0 and Rs5 per hour respectively.
6.
4 8 5 1 0 0 0
Product mix Quantity
5 3 125 1/20 0 1 1/2 3/10 0 -1/5
0 2 425 13/4 0 0 -1/2 -1/2 1 0
8 2 25 13/20 1 0 1/2 1/10 0 6/15
7 11
825 5.45 8 5 6.5 0
10 5
7 11
1.45 0 0 5.5 0
10 5
(i) The optimal product mix is 1 = 0, 2 = 25 3 = 125 and the profit contribution is Rs
825 by the above solution.
basic variables viz., x1, s1 and s3 do not have a zero Cj-Zj value.

7 11
(iv) The shadow prices of three machines X(s1), Y(s3), Z(s3) is Rs , Rs0 and Rs
10 5
respectively.
(v) The constraints represented by X(s1) and Z(s3) are binding.
1 13
(vi) If the company produces 20 units of x1 then X20=1 unit of product C and X 20
20 20
=13 units of product B shall have to be reduced.
(vii) If a customer is prepared to pay higher prices for product x4 the price be increased
by Rs 5.5 so that the company's profit remains unchanged.
(viii) The solution given in the table is not degenerate because the basic variable do not
7.
(i) The optimal product mix is 1 = 0 , 2 = 10 . The profit contribution is Rs
500.
basic variables viz., x1 and s1 do not have a zero Cj-Zj value.
(iv) The shadow prices Machine A and B are Rs 50 per hr. and Rs 0 per hr.
respectively.
(v) Machine A should be given priority to expand the production capacity because it
has the higher shadow price.
(vi) If a customer is prepared to pay higher prices for product x1 the price should be
increased by Rs 10 so that the company's profit remains unchanged.
(vii) The solution given in the table is not degenerate because the basic variable do not
8. Simplex tableau-I
4 5 8 0 0 0
Basic Solution
Ratio=

Variable
5 2 10 0 1 3/5 0 1 0 10/0=
4 1 5 1 0 20/4 0 -1 0 5/0=
0 1 20 0 0 -1/5 1 0 1 20/1=20
70 4 5 23 0 1 0
0 0 -15 0 -1 0
(i) The solution is optimal because all the entries in

are either negative or zero. Optimal solution is 1 = 5, 2 = 10 . The optimal
value of the objective function is 70.
(iii) Yes, the problem has multiple optimal solutions because the non-basic variables s3
has a zero Cj-Zj value.
(iv) The resources represented by S2 and S3 are being used to the full capacity because
they are not present in the basis.

(v) The resource represented by S1 has excess or spare capacity of 20 units.

(vi) If a customer is prepared to pay higher prices for product x3 the price should be
increased by at least Rs 15 so that it is produced.
(vii) The solution given in the table is not degenerate because the basic variable do not
(viii) To find the alternate solution, we take S 3 as the incoming variable because it is the
non-basic variable with zero Cj Zj value and find replacement ratios.
1 is the outgoing variable with minimum positive replacement ratio. The
highlighted number is pivot value, equal to 1 that is used to perform elementary
row operation, after which the simplex table-II appears as under:
Simplex tableau-II
4 5 8 0 0 0
Basic Solution

Variable
5 2 10 0 1 3/5 0 1 0
4 1 5 1 0 20/4 0 -1 0
0 3 20 0 0 -1/5 1 0 1
70 4 5 23 0 1 0
0 0 -15 0 -1 0
The alternate optimal solution is 1 = 5, 2 = 10 . The optimal value of the objective

function is 70 with 20 spare units of 3 .
9. Final Simplex tableau
5 15 8 0 0 0
Basic Solution

Variable
15 2 10 1/3 1 0 1/3 -1/6 0
8 3 5 2/3 0 1 -1/3 5/12 0
0 3 20 -8/3 0 0 1/3 -17/12 1
190 31/3 15 8 7/3 5/6 0
-16/3 0 0 -7/3 -5/6 0
(i) The optimal Production mix is Product A nil, Product B=10 units and Product
C=20 units.

(ii) Effect of the following on the optimal product mix:

a. An increase of 36 machine hours ( ):
Basic Solution

Variable
2 10 -1/6
3 5 5/12
1
(i) New level of units of Product B to be produced=10+ X 36 =4 units.
6
5
(ii) New level of units of Product C to be produced=5+ X36 =20 units.
12
b. A decrease of 12 kg. of material ( ):
Basic Solution

Variable
2 10 1/3
3 5 -1/3
1
(i) New level of units of Product B to be produced=10 X 12 =6 units.
3
1
(ii) New level of units of Product C to be produced=5 X36 =17 units.
3
c. 6 units of product A are to be produced:
Basic Solution

Variable
2 10 1/3
3 5 2/3
1
(i) New level of units of Product B to be produced=10 X 6 =8 units.
3
2
(ii) New level of units of Product C to be produced=5 X 6 =1 unit.
3
Suggested Readings:
Anthony, M. and N. Biggs. Mathematics for Economics and Finance. Cambridge
University Press.
Ayres, Frank Jr. Theory and Problems of Mathematics of Finance. Schaums Outlines
Series. McGraw Hill Publishing Co.
Budnick, P. Applied Mathematics. McGraw Hill Publishing Co.
Dowling, E.T. Mathematics for Economics, Schaums Outlines Series. McGraw Hill
Publishing Co.
Mizrahi and John Sullivan. Mathematics for Business and Social Sciences. Wiley and
Sons.
Prasad, Bindra and P.K. Mittal. Fundamentals of Business Mathematics. Har-Anand

Publications.
S.K. Sharma and Gurmeet Kaur (2015). Business Mathematics. International Book
House P Ltd. ISBN: 978-93-83283-35-4.
S.K. Sharma and Gurmeet Kaur (2016). Business Mathematics and Statistics.
International Book House P Ltd. ISBN: 978-93-83283-36-8.
Thukral, J.K. Mathematics for Business Studies. Mayur Publications.
Vohra, N.D. Quantitative Techniques in Management. Tata McGraw Hill Publishing Co.
Wikes, F.M. Mathematics for Business, Finance and Economics. Thomson Learning.


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Linear Programming: Dual Problem and Economic Interpretation

Course: COMMERCE (CBCS)

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Lesson: Linear Programming: Dual Problem and

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2. Formulation of a Dual Problem:

Dual Vs. Primal

2.1. Dual of a Maximization Problem:

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The associated dual problem can be written as:

2.2. Dual of a Minimization Problem:

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2.3 Treatment of Constraints:

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2.5 Handling Unrestricted Variables in Duality:

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Maximize Z = 15(5 6 ) + 292 + 113 + 374

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Subject to the constraints:

10 x1+ 25 x2+ 40 x3 100

20 x1+ 5 x2+ 30 x3 150

Subject to the constraints:

Figure 1: Relationship between Primal-Dual Constructions

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2.6 Steps for Direct Conversion of a Primal into its corresponding

Maximize Z = 151 + 292 + 113 + 374 Minimize = 2501 5402 + 6005

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2.7 Comparison of Primal and its corresponding Dual:

Basis Primal Dual

Decision Variables (j = 1,2, . . . , n) (i = 1,2, . . . , m)

Exceptional Case Infeasible case Unbounded case

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Subject to the constraints:

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3. Shadow Prices of the Resources:

Value Addition 1: Video

Visit the link https://www.youtube.com/watch?v=rO-ufnCNqXM to understand

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Accordingly, the initial tableau appears as under:

Basic Solution Ratio=

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-3M+30 -5M+60 -2M+60 M M 0 0

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Outgoing Variable: is the outgoing basic variable corresponding to the minimum

Basic Solution Ratio=

Basic Solution Ratio=

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Obtaining the Alternate Solution:

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Comparative Solution of Primal and Dual

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(ii) Simplex Solution:

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solution is obtained as under:

15 2 1/2 0 1 3/8 1/4 0

15/2 20 15 5/8 25/4 0

Optimal solution of the Primal: x1 =5/8 and x2 = 25/4

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5. Economic Interpretation of Dual:

The LPP can be expressed as under:

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The Dual can be written as: