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MB0048 Operations Research
Q1. a. What do you mean by linear programming problem? Explain the steps involved in linear programming problem formulation? Ans. Linear Programming (LP) is a mathematical technique designed to help managers in their planning and decision-making. It is usually used in an organisation that is trying to make the most effective use of its resources. Resources typically include machinery, manpower, money, time, warehouse space, and raw materials. A few examples of problems in which LP has been successfully applied are: Developments of a production schedule that will satisfy future demands for a firms product and at the same time minimise total production and inventory costs. Establishment of an investment portfolio from a variety of stocks or bonds that will maximise a companys return on investment. Allocation of a limited advertising budget among radio, TV, and newspaper spots in order to maximise advertising effectiveness. Determination of a distribution system that will minimise total shipping cost from several warehouses to various market locations. Selection of the product mix in a factory to make best use of machine and man hours available while maximising the firms profit. The steps involved in linear programming problem formulation are as follows: Step 1: Study the given situation to find the key decisions to be made. Step 2: Identify the variables involved and designate them by symbols Xj (j=1,2.) Step 3: State the feasible alternatives which generally are : xj 0, for all j. Step 4: Identify the constraints in the problem and express them as linear inequalities or equations, LHS of which are linear functions of the decision variables. Step 5: Identify the objective function and express it as a linear function of the decision variables. Q1. b. A paper mill produces two grades of paper viz., X and Y. Because of raw material restrictions, it cannot produce more than 400 tons of grade X paper and 300 tons of grade Y paper in a week. There are 160 production hours in a week. It requires 0.20 and 0.40 hours to produce a ton of grade X and Y papers. The mill earns a profit of Rs. 200 and Rs. 500 per ton of grade X and Y paper respectively. Formulate this as a Linear Programming Problem. Ans. Maximize Profit, P = 20X + 50Y Subject to restrictions X 400 Y 300 0.2X + 0.4Y 160
And non-negativity restrictions X 0, Y 0
Q2. a. Discuss the methodology of Operations Research. Ans. The basic dominant characteristic feature of operations research is that it employs mathematical representations or models to analyse problems. This distinct approach represents an adaptation of the scientific methodology used by the physical sciences. The scientific method translates a given problem into a mathematical representation which is solved and retransformed into the original context. OR methodology consists of five steps. They are - defining the problem, constructing the model, solving the model, validating the model, and implementing the result. Let us now discuss the steps in detail. 1 Definition The first and the most important step in the OR approach of problem solving is to define the problem. One needs to ensure that the problem is identified properly because this problem statement will indicate the following three major aspects: Description of the goal or the objective of the study Identification of the decision alternative to the system Recognition of the limitations, restrictions, and requirements of the system 2 Construction Based on the problem definition, you need to identify and select the most appropriate model to represent the system. While selecting a model, you need to ensure that the model specifies quantitative expressions for the objective and the constraints of the problem in terms of its decision variables. A model gives a perspective picture of the whole problem and helps in tackling it in a well-organized manner. Therefore, if the resulting model fits into one of the common mathematical models, you can obtain a convenient solution by using mathematical techniques. If the mathematical relationships of the model are too complex to allow analytic solutions, a simulation model may be more appropriate. Hence, appropriate models can be constructed. 3 Solution After deciding on an appropriate model, you need to develop a solution for the model and interpret the solution in the context of the given problem. A solution to a model implies determination of a specific set of decision variables that would yield an optimum solution. An optimum solution is one which maximises or minimises the performance of any measure in a model subject to the conditions and constraints imposed on the model. 4 Validation A model is a good representation of a system. However, the optimal solution must work towards improving the systems performance. You can test the validity of a model by comparing its performance with some past data available from the actual system. If under similar conditions of inputs, your model can reproduce the past performance of the system, then you can be sure that your model is valid. However, you will still have no assurance that future performance will continue to duplicate the past behaviour. Secondly, since the model is based on careful examination of past data, the comparison should always reveal favourable results. In some instances, this problem may be overcome by using data from trial runs of the system. One must note that such validation methods are not appropriate for non-existent systems because data will not be available for comparison. 5 Implementation You need to apply the optimal solution obtained from the model to the system and note the improvement in the performance of the system. You need to validate this performance check under changing conditions. To do so, you need to translate these results into detailed operating
instructions issued in an understandable form to the individuals who will administer and operate the recommended system. The interaction between the operations research team and the operating personnel reaches its peak in this phase. Q2. b. Explain in brief the phases of Operations Research. Ans. The scientific method in OR study generally involves three phases. Judgment phase This phase includes the following activities: Determination of the operations Establishment of objectives and values related to the operations Determination of suitable measures of effectiveness Formulation of problems relative to the objectives Research phase This phase utilises the following methodologies: Operation and data collection for a better understanding of the problems Formulation of hypothesis and model Observation and experimentation to test the hypothesis on the basis of additional data Analysis of the available information and verification of the hypothesis using pre-established measure of effectiveness Prediction of various results and consideration of alternative methods Action phase This phase involves making recommendations for the decision process. The recommendations can be made by those who identify and present the problem or by anyone who influences the operation in which the problem has occurred. Q3. Solve the following Linear Programming Problem using Simple method. Maximize Z= 3x1 + 2X2 Subject to the constraints: X1+ X2 4 X1- X2 2 X1, X2 0 Ans. Step 1 Write the given GLPP in the form of SLPP Maximize Z = 3x1 + 2x2 + 0s1 + 0s2 Subject to x1 + x2+ s1= 4 x1 x2 + s2= 2 x1 0, x2 0, s1 0, s2 0 Step 2 Present the constraints in the matrix form x1 + x2+ s1= 4 x1 x2 + s2= 2
Step 3 Construct the starting simplex table using the notations
Step 4 Calculation of Z and j and test the basic feasible solution for optimality by the rules given. Z= CB XB = 0 *4 + 0 * 2 = 0 j = Zj Cj = CB Xj Cj 1 = CB X1 Cj = 0 * 1 + 0 * 1 3 = -3 2 = CB X2 Cj = 0 * 1 + 0 * -1 2 = -2 3 = CB X3 Cj = 0 * 1 + 0 * 0 0 = 0 4 = CB X4 Cj = 0 * 0 + 0 * 1 0 = 0 Procedure to test the basic feasible solution for optimality by the rules given Rule 1 If all j 0, the solution under the test will be optimal. Alternate optimal solution will exist if any non-basic j is also zero. Rule 2 If at least one j is negative, the solution is not optimal and then proceeds to improve the solution in the next step. Rule 3 If corresponding to any negative j, all elements of the column Xj are negative or zero, then the solution under test will be unbounded. In this problem it is observed that 1 and 2 are negative. Hence proceed to improve this solution Step 5 To improve the basic feasible solution, the vector entering the basis matrix and the vector to be removed from the basis matrix are determined. Incoming vector The incoming vector Xk is always selected corresponding to the most negative value of j. It is indicated by (). Outgoing vector The outgoing vector is selected corresponding to the least positive value of minimum ratio. It is indicated by (). Step 6 Mark the key element or pivot element by 1.The element at the intersection of outgoing vector and incoming vector is the pivot element.
If the number in the marked position is other than unity, divide all the elements of that row by the key element. Then subtract appropriate multiples of this new row from the remaining rows, so as to obtain zeroes in the remaining position of the column Xk.
Step 7 Now repeat step 4 through step 6 until an optimal solution is obtained.
Since all j 0, optimal basic feasible solution is obtained Therefore the solution is Max Z = 11, x1 = 3 and x2 = 1 Q4. Explain the procedure of MODI method of finding solution through optimality test. Ans. The basic techniques are illustrated as follows: 1. Determine the net evaluations for the nonbasic variables (empty cells) 2. Determine the entering variable 3. Determine the leaving variable 4. Compute a better basic feasible solution 5. Repeat steps (1) to (4) until an optimum solution has been obtained 1 Improving the solution Definition - A loop is the sequence of cells in the transportation table such that: Each pair of consecutive cells lie either in the same row or same column No three consecutive cells lie in the same row or same column The first and the last cells of the sequence lie in the same row or column No cell appears more than once in the sequence Consider the non-basic variable corresponding to the most negative of the quantities cij ui vj, calculated in the test for optimality; it is made the incoming variable. Construct a loop consisting exclusively of this incoming variable (cell) and current basic variables (cells). Then allocate the incoming cell to as many units as possible, after appropriate adjustments have been made to the other cells in the loop. Avoid violating the supply and demand constraints, allow all allocations to remain non-negative and reduce one of the old basic variables to zero. 2 Modified distribution method/MODI method/UV method Step 4 - You repeat steps 1 to 3 to till all allocations are over. Step 5 - For allocating all forms of equations ui+ vj = cj, set one of the dual variable ui / vj to zero and solve for others. Step 6 - Use this value to find ij = cij - ui - vj. If all ij 0, then it is the optimal solution. Step 7 - If any ij 0 select the most negative cell and form loop. Starting point of the loop is positive and alternative corners of the loop are negative and positive. Examine the quantities allocated at negative places. Select the minimum, add it to the positive places and subtract from the negative places. Step 8 - Form a new table and repeat steps 5 to 7 till ij 0
Q5. a. Explain the steps in Hungarian method. Ans. Hungarian method algorithm is based on the concept of opportunity cost and is more efficient in solving assignment problems. The following steps are adopted to solve an AP using the Hungarian method algorithm. Step 1: Prepare row ruled matrix by selecting the minimum values for each row and subtract it from the other elements of the row. Step 2: Prepare column-reduced matrix by subtracting minimum value of the column from the other values of that column. Step 3: Assign zero row-wise if there is only one zero in the row and cross (X) or cancel other zeros in that column. Step 4: Assign column wise if there is only one zero in that column and cross other zeros in that row. Step 5: Repeat steps 3 and 4 till all zeros are either assigned or crossed. If the number of assignments is equal to number of rows present, you have arrived at an optimal solution, if not, proceed to step 6. Step 6: Mark () the unassigned rows. Look for crossed zero in that row. Mark the column containing the crossed zero. Look for assigned zero in that column. Mark the row containing assigned zero. Repeat this process till all the makings are done. Step 7: Draw a straight line through unmarked rows and marked column. The number of straight line drawn will be equal to the number of assignments made. Step 8: Examine the uncovered elements. Select the minimum. Subtract it from the uncovered elements. Add it at the point of intersection of lines. Leave the rest as is. Prepare a new table. Step 9: Repeat steps 3 to 7 till optimum assignment is obtained. Step 10: Repeat steps 5 to 7 till number of allocations = number of rows. The assignment algorithm applies the concept of opportunity costs. The cost of any kind of action or decision consists of the opportunities that are sacrificed in taking that action. Q5. b. Solve the following assignment problem. Machine A B C D Operators 1 60 40 55 45 2 50 45 70 45 3 45 55 60 40 4 45 35 50 45
Ans. Since it is a maximization problem, subtract every value from the maximum value of 70. Thus you have: Opportunity Loss Table Machine Operators
60 55 70 45 230 Max Efficiency Therefore, the optimum assignment schedule is A to Operator 1, B to Operator 3, C to Operator 2 and D to Operator 4. Q6. a. Explain the steps involved in Vogels approximation method (VAM) of solving Transportation Problem. Ans. The Vogels approximation method (VAM) takes into account not only the least cost Cij, but also the cost that just exceeds Cij. The steps of the method are given as follows: Step 1 - For each row of the transportation table, identify the smallest and the next to smallest costs. Determine the difference between them for each row. Display them alongside the transportation table by enclosing them in parenthesis against the respective rows. Similarly, compute the differences for each column. Step 2 - Identify the row or column with the largest difference among all the rows and columns. If a tie occurs, use any arbitrary tie breaking choice. Let the greatest difference correspond to the ith row and let Cij be the smallest cost in the ith row. Allocate the maximum feasible amount xij = min (ai, bj) in the (i, j)th cell and cross off the ith row or the jth column in the usual manner.
Step 3 - Recomputed the column and row differences for the reduced transportation table and go to step 2. Repeat the procedure until all the rim requirements are satisfied. Remarks A row or column difference indicates the minimum unit penalty incurred by failing to make an allocation to the least cost cell in that row or column. It is clear that VAM determines an initial basic feasible solution, which is very close to the optimum solution, but the number of iterations required to reach the optimal solution is small. Area of application It is used to compute transportation routes in such a way as to minimize transportation cost for finding out location of warehouses It is used to find out locations of transportation corporations depots where insignificant total cost difference may not matter. Q6. b. Solve the following transportation problem using Vogels approximation method. Factories F1 F2 F3 Requirement s C1 3 7 2 60 Distribution Centres C2 C3 2 7 5 2 5 4 40 20 Supply C4 6 3 5 15 50 60 25
Ans. The differences (distribution centres) for each row and column have been calculated. In the first round, the maximum centre, 3 occurs in column C2. Thus the cell (F1,C2) having the least distribution centre 2 is chosen for allocation. The maximum possible allocation in this cell is 40 and it satisfies requirements in column C2. Adjust the supply of F1 from 40 to 50 (40-50). The new row and column centres are calculated except column C2 because its requirement has been satisfied. The second round allocation is made in row F1 with target penalty 3 in the same way as in the first round as depicted in cell (F1,C1). In the third round, a tie occurs and by using arbitrary tie breaking choice, maximum possible allocation of 25 units is made in cell (F3,C4). The process is continued with new allocation till a complete solution is obtained. F1 F2 F3 Requirements C1 3 (10) 7 (25) 2 (25) 60 1 1 1 1 1 1 C2 2 (40) 5 5 40 3 X X X X X C3 7 2 (20) 4 20 2 2 2 2 X X C4 6 3 (15) 5 15 2 2 2 X X X Supply 50 60 25 135 1 1 2 3 1 2 Row difference X 1 2 X 1 2 X 1 2 X 1 X
Column difference
The total distribution centres associated with this method is calculated as follows: Total Centres = 3x20 + 2x40 + 7x25 + 2x20 + 3x15 + 2x25 = 450
