School of Business
Department of Management Information Systems
BMIS355: Quantitative Methods of Business Decisions
Chapter 3 | Part 3
The Simplex Method & Sensitivity Analysis
Spring 2020 - 2021
BMIS355- CHAPTER 3
,The Simplex Method & Sensitivity Analysis
B. Computational details of the Simplex algorithm:
1. Standardization.
2. Constructing the 1st simplex tableau.
3. Determining the entering variable or the “Pivot Column”
4. Determining the leaving variable or the “Pivot row”
5. Computing 1st iteration or the “new simplex tableau”
BMIS355- CHAPTER 3
, The Simplex Method & Sensitivity Analysis
3. Determining the entering variable or the “Pivot Column”:
Optimality condition: the selected variable is the non-basic variable with the most negative
coefficient in the objective equation.
Basic 𝒙𝟏 𝒙𝟐 𝑺𝟏 𝑺𝟐 𝑺𝟑 𝑺𝟒 RHS
Z – Row -5 -4 0 0 0 0 0
𝑺𝟏 6 4 1 0 0 0 24
𝑺𝟐 1 2 0 1 0 0 6
𝑺𝟑 -1 1 0 0 1 0 1
𝑺𝟒 0 1 0 0 0 1 2
BMIS355- CHAPTER 3
Department of Management Information Systems
BMIS355: Quantitative Methods of Business Decisions
Chapter 3 | Part 3
The Simplex Method & Sensitivity Analysis
Spring 2020 - 2021
BMIS355- CHAPTER 3
,The Simplex Method & Sensitivity Analysis
B. Computational details of the Simplex algorithm:
1. Standardization.
2. Constructing the 1st simplex tableau.
3. Determining the entering variable or the “Pivot Column”
4. Determining the leaving variable or the “Pivot row”
5. Computing 1st iteration or the “new simplex tableau”
BMIS355- CHAPTER 3
, The Simplex Method & Sensitivity Analysis
3. Determining the entering variable or the “Pivot Column”:
Optimality condition: the selected variable is the non-basic variable with the most negative
coefficient in the objective equation.
Basic 𝒙𝟏 𝒙𝟐 𝑺𝟏 𝑺𝟐 𝑺𝟑 𝑺𝟒 RHS
Z – Row -5 -4 0 0 0 0 0
𝑺𝟏 6 4 1 0 0 0 24
𝑺𝟐 1 2 0 1 0 0 6
𝑺𝟑 -1 1 0 0 1 0 1
𝑺𝟒 0 1 0 0 0 1 2
BMIS355- CHAPTER 3
