Representation of simplex method, Managerial Accounting

Assignment Help:

Representation of Simplex method

We shall use the example previously stated for the graphical solution. The standard form of the model is given by:

Maximize :  Z = 3XE + 2X1 + OS1 + OS2 + OS3 + OS4
Subject to:  XE + 2XI + S1 = 6

2XE + XI + S2 = 8
-XE + XI + S3 = 1
XI + S4 = 2

XE, XI, S1, S2, S3, S4 ≥ 0

The figure depicts the solution space. Every point in this space can be represented in terms of the variables XE, XI, S1, S2, S3 and S4 of the standard form. (To show this point, observe that Si = 0, i = 1,2,3 and 4 turns the related equation into an edge of the solution space. For example: Si = 0 is equivalent to XE + 2XI = 6, which represents edge CD. Having S1 > 0 will move the feasible points from edges toward the interior of the solution space).

Our main interest is to identify the extreme points algebraically. When we examine the figure we note that the values of XE, X1, S1, S2, S3 and S4 associated with the extreme points A, B, C, D, E, and F have the following definite pattern with regard to whether or not their values are equal to zero.

        Extreme           Zero                Non-zero
        Point             Variables            Variables

        A                    XE, XI               S1, S2, S3, S4
        B                    S2, XI               S1, XE, S3, S4
        C                    S2, SI               X1, XE, S3, S4
        D                    S4, SI               X1, XE, S3, S2
        E                    S4, S3               X1, XE, S1, S2
        F                    S4, XE               X1, S3, S1, S2

Two observations are instantly obvious:

543_graph.jpg


Since the standard form has four equations and six unknowns, each extreme point must have two
 (= 6 - 4) variables at zero level.

 


Related Discussions:- Representation of simplex method

Illustrate the important steps of budgetary control, Important steps of bud...

Important steps of budgetary control There are certain steps which are essential for the successful implementation of a budgetary control system. They are as follows: 1) Or

What are the stages in the performance budgeting, Stages in the performance...

Stages in the performance budgeting The stages in the performance budgeting is enumerated as follows: 1) Establishment of goals objectives and policies: data collection revi

What are the characteristics of standard costing, Characteristics of standa...

Characteristics of standard costing 1) Flow of information : in a standard costing system cost information flows in a straight forward manner as material is requisitioned and

Projected balance sheet method, In this method, approximation of various as...

In this method, approximation of various assets here excluding cash and including liabilities are made getting into consideration the transactions in the ensuring period. Afterward

Describe the principles of cost accounting, Describe the Principles of cost...

Describe the Principles of cost accounting Principles of cost accounting: The fundamental principles of costing are identical and are given below:   1. Cost is related to

Standard costing in modern environment, Standard costing in modern environm...

Standard costing in modern environment Standard costing has traditionally been associated with labor-intensive operations, but it can be applied to capital-intensive production

Standard costing system, Standard costing system However, it has been a...

Standard costing system However, it has been argued that traditional variance analysis is unhelpful and potentially misleading in the modern organization, and can make managers

Special order manufacturer, Viti Ltd, located in southern Viti Levu, manufa...

Viti Ltd, located in southern Viti Levu, manufactures a variety of industrial valves and pipe fittings that are sold to customers in the eastern states. Currently, the company is o

Ira, Your financial advisor has recommended that you invest into your Roth ...

Your financial advisor has recommended that you invest into your Roth Individual Retirement Account (Roth IRA) the sum of $5,000. If you put in $5,000 today, what will this investm

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd