To make the same structures between (6) and (7), a new artificial variable
i], the estimated artificial variable for the endogenous j variable.
This test leads to the inclusion of w artificial variables in the regression, one for each endogenous variable.
While devising the initial tableau for the objective equation, with large negative number, the computer iteration denoted the profit coefficient for each artificial variable
i], the estimated coefficient of the corresponding artificial variable
Artificial smoothing is based on artificial variables
(accounting decisions), not real variables (business decisions) (Koch, 1981).
The big M method and two -stage way are usually adopted to construct a unit matrix as a initial basis through to introduce some artificial variables
first, then make the iteration of simplex method.