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

Determine a firms earnings per share, You have been asked to determine the ...

You have been asked to determine the EPS indifference EBIT* level for your firm using the following information. Under the high-leverage alternative (a D/E ratio of 1.50), the firm

How the tax credit will affect price and quantity , 1. In order to boost th...

1. In order to boost the housing market throughout 2009 and into 2010, the federal government offered a tax credit to first-time home buyers and some repeat buyers.

Full service non recourse, Full Service Non Recourse: in this method the b...

Full Service Non Recourse: in this method the book debts are purchased through the factor assuming 100 percent credit risk. In case of default through the debtor the whole risk is

Willco Inc. manufactures electronic parts, Willco Inc. manufactures electro...

Willco Inc. manufactures electronic parts. They are analyzing their monthly maintenance costs to determine the best way to budget these costs in the future. They have collected the

State the debtors turnover ratio, Debtors turnover ratio( or receivables tu...

Debtors turnover ratio( or receivables turnover ratio) Meaning: this ratio establishes a relation ship between net credit sales and averages trade debtors.   Objective

Features of a queue, Features of a queue A calling population – ref...

Features of a queue A calling population – refers to the number of potential customers. This number may be considered finite or infinite. An infinite calling population is

Responsibility accounting, Responsibility Accounting This is a term use...

Responsibility Accounting This is a term used to define the measuring of performance of decentralized units, using account results. Responsibility accounting recognizes various

Input-exogenous variables, Input or exogenous variables These are varia...

Input or exogenous variables These are variables of two types: 1) Controlled variables: These are variables that can be controlled by management. By changing the input

Basic assumption of transportation model, Basic Assumption of Transportatio...

Basic Assumption of Transportation Model The basic assumption of the model is that the transportation cost on a given route is directly proportional to the number of units tran

Standerd costing, Ask queThe standard cost of chemical mixture ~ PQ’ is as ...

Ask queThe standard cost of chemical mixture ~ PQ’ is as follows: 40% of material P @ Rs. 400 per kg. 60% of material Q @ Rs. 600 per kg. A standard loss of 10% is normally anticip

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