Below is the
original problem:
objective function
is in green. 


Red variables below
are called
SLACK VARIABLES 


Below is the
SIMPLEX TABLEAU.
Compare RED symbols
with Z = x_{1} + 2x_{2} – x_{3}.
Blue numbers below
are the “ISM“. 


The 1^{st} SIMPLEX TABLEAU
is below. Note
missing zcolumn
(correction by Steve Hulet) 

See steps 3,4,5 of
SIMPLEX METHOD
as you handle INDICATORS,
RATIOS, and PIVOTS. 
Named below are the 4
row operations needed to
pivot on the number
“5” encircled in red 


Below are the
results of the
row operations
named above 
blue
numbers
are the
new ISM 

Since one INDICATOR
(namely 1/5) remains
negative, we must
repeat steps 39 

Below is the result
of changing our pivot
to “1” 

Named below are
4 row operations
needed to pivot
on the number(16/5)
encircled in red 


Above there was a tie for least nonnegative ratio:
either row 1 or row 2 could have become the pivot row, and either choice leads to the final tableau after one additional pivoting. At the right is the result of the final 3 row operations. 



All indicators {0, 0, 
49
16 
, 0, 
1
16 
and 
3
8 
} are now zero or bigger (“13” is NOT an indicator). 
Thus, as in step 8 of the SIMPLEX METHOD, the last tableau is a FINAL TABLEAU. 
Row operations of SIMPLEX METHOD are done. 
Thus, the basic solution for the tableau above is the solution to our original problem.
[1st] set equal to 0 all variables NOT associated with the blue ISM, as at the right. Each column of the final tableau has a label naming it’s variable.
[2nd] convert each row of the final tableau (except the bottom row) back into equation form (as at the right) to find the values of the remaining variables. The value of the objective function is in the lower right corner of the final tableau. 


Source: http://math.uww.edu/~mcfarlat/sprob.htm
More: http://people.hofstra.edu/stefan_Waner/realworld/tutorialsf4/unit4_3.html
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