The optimality criterion states:
If the objective row of a tableau has zero
entries in the columns labeled by basic variables and no
negative entries in the columns labeled by nonbasic variables,
then the solution represented by the tableau is optimal.
How do we know this guarantees the solution is optimal?
Best Answer
Here's the key principle: The number in column $i$ in the objective row tells you how the current objective value changes by letting variable $i$ enter the basis.
Let's take an example. Suppose you're maximizing, and the objective row looks like
This is encoding the objective equation $Z + 4x_1 + 0 x_2 + 0 x_3 + 2x_4 + 0 x_5 = 12$, or, alternatively, $Z = 12 - 4x_1 + 0 x_2 + 0 x_3 - 2x_4 + 0 x_5.$
Here the basic variables are $x_2, x_3,$ and $x_5$, and the nonbasics are $x_1$ and $x_4$.
Now, let's look at the two cases, given the key principle I mentioned above.
All together, then, if the objective row of a tableau has zero entries in the columns labeled by basic variables and no negative entries in the columns labeled by nonbasic variables, then there's no way to increase the value of the objective function by changing the basis. Since changing the basis is how you change the solution, there must not be any solutions better than the current one. Therefore, the solution represented by the tableau must be optimal.