◆ THE BLUEPRINT
The Simplex Tableau
The tableau stores the current linear system in a compact form. Each row corresponds to a constraint. The bottom row (z-row) holds the reduced costs.
Reduced Costs
The reduced cost for nonbasic variable \(j\) is:
The vector \(B^{-1}\mathbf{A}_j\) is the entering column in the tableau. It tells us how the basic variables change when we increase \(x_j\). The reduced cost measures the net change in the objective per unit increase.
When Does the Algorithm Stop?
The simplex method pivots as long as some \(\bar{c}_j < 0\). A negative reduced cost means moving along that edge of the polytope improves the objective.
When all \(\bar{c}_j \geq 0\), no neighboring vertex is better. The current BFS is optimal.
Connection to Duality
Define \(\mathbf{p} = \mathbf{c}_B^\top B^{-1}\). These are the dual variables (shadow prices). Then:
At optimality, \(\bar{c}_j \geq 0\) for all \(j\) means \(\mathbf{p}^\top A \leq \mathbf{c}^\top\). This is dual feasibility. The simplex method builds toward both primal optimality and dual feasibility at the same time.
Pivot Rules (Dantzig)
Entering variable: choose the most negative reduced cost. Leaving variable: minimum ratio test (smallest \(b_i / a_{ij}\) for \(a_{ij} > 0\)).
Special Cases
Unbounded: All entries in the entering column are \(\leq 0\). No leaving variable exists.
Degenerate: \(\theta^* = 0\). The basis changes but the BFS stays the same. Risk of cycling.
Infeasible: Big-M artificial variable remains positive at optimality.
Reference
Bertsimas & Tsitsiklis, Introduction to Linear Optimization , Chapter 3.