IE 534 Linear Programming
Lecture 11: The Simplex Algorithm (1)
Lizhi Wang
September 17, 2012
Lizhi Wang ([email protected])
IE 534 Linear Programming
September 17, 2012
1 / 17

Outline
1
Homework 3
2
Simplex algorithm overview
3
What exactly is a “corner point”?
Lizhi Wang ([email protected])
IE 534 Linear Programming
September 17, 2012
2 / 17

Arbitrage in currency exchange
x
DE
: amount of Dollars exchanged to Euros
max 0
All currencies are balanced, one generates a profit
Pay attention to the units
Lizhi Wang ([email protected])
IE 534 Linear Programming
September 17, 2012
3 / 17

Turning junk into treasure
x
ij
: whether (
x
ij
= 1
) or not (
x
ij
= 0
) component
i
is from
machine
j
y
i
: whether (
y
i
= 1
) or not (
y
i
= 0
) components
i
and
i
+ 1
are
from the same machine
min
∑
i
c
i
y
i
What values can and cannot
x
and
y
take?
GNU MathProg Language (Lecture 6 and
gmpl.pdf
in Gusek
folder)
Lizhi Wang ([email protected])
IE 534 Linear Programming
September 17, 2012
4 / 17

Old McDonald had a farm
Decision variables are given
Objective function is given
Constraints reflect timing of decision making
Lizhi Wang ([email protected])
IE 534 Linear Programming
September 17, 2012
5 / 17

Outline
1
Homework 3
2
Simplex algorithm overview
3
What exactly is a “corner point”?

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