Or Mod1 PDF
Or Mod1 PDF
Or Mod1 PDF
Advantages of OR:
Better Systems: Often, an O.R. approach is initiated to analyze a particular problem of decision
making such as best location for factories, whether to open a new warehouse, etc. It also helps in
selecting economical means of transportation, jobs sequencing, production scheduling,
replacement of old machinery, etc.
Better Control: The management of large organizations recognize that it is a difficult and costly
affair to provide continuous executive supervision to every routine work. An O.R. approach may
provide the executive with an analytical and quantitative basis to identify the problem area. The
most frequently adopted applications in this category deal with production scheduling and
inventory replenishment.
Better Decisions: O.R. models help in improved decision making and reduce the risk of making
erroneous decisions. O.R. approach gives the executive an improved insight into how he makes
his decisions.
Disadvantages of OR:
Dependence on an Electronic Computer: O.R. techniques try to find out an optimal solution
taking into account all the factors. In the modern society, these factors are enormous and
Non-Quantifiable Factors: OR techniques provide a solution only when all the elements related
to a problem can be quantified. All relevant variables do not lend themselves to quantification.
Factors that cannot be quantified find no place in O.R. models.
Distance between Manager and Operations Researcher: O.R. being specialist's job requires a
mathematician or a statistician, who might not be aware of the business problems. Similarly, a
manager fails to understand the complex working of O.R. Thus, there is a gap between the two.
Money and Time Costs: When the basic data are subjected to frequent changes, incorporating
them into the O.R. models is a costly affair. Moreover, a fairly good solution at present may be
more desirable than a perfect O.R. solution available after sometime.
Implementation: Implementation of decisions is a delicate task. It must take into account the
complexities of human relations and behavior.
Linear Programming:
It is a decision making technique under a given constraint that the relationship among the
variable involved is linear.
A mathematical problem is an optimization problem in which the objective and constraints are
given as mathematical functions and functional relationships. The procedure for mathematical
formulation of a LPP consists of the following steps
Step3: formulate the other conditions of the problem such as resource limitation, market,
constraints, and interrelations between variables etc., linear in equations or equations in terms of
the decision variables.
The objective function set of constraint and the non-negative constraint together form a Linear
Programming Problem.
Problems:
Solution:
Step1: Let the total number of units of A produced be ‘x’.
Let the total number of units of B produced be ‘y’.
Given: profit/one unit of A is Rs.6
Profit/x unit of A is Rs.6x
Profit/one unit of B is Rs.5
Profit/x unit of B is Rs.5x
Step2:Total profit z=6x+5y
Objective function is max z=6x+5y
Step3: Given that the products A and B requires 1 and 1 unit of R1 respectively with total
availability of 5 units
i.e x+y<=5
Given that the products A and B requires 3 and 2 units of R2 respectively with total availability
of 12 units
i.e 3x+2y<=12
Step4: The non negative conditions are:
x, y>=0
LP model:
Max z=6x+5y
STC x+y<=5
3x+2y<=12
x, y>=0
2. A Manufacture produces two types of models M1 and M2 each model of the type M1 requires
4 hrs of grinding and 2 hours of polishing, where as each model of the type M2 requires 2 hours
of grinding and 5 hours of polishing. The manufactures have 2 grinders and 3 polishers. Each
grinder works 40 hours a week and each polishers works for 60 hours a week. Profit on M1
model is Rs. 3.00 and on Model M2 is Rs 4.00.Whatever produced in week is sold in the market.
How should the manufacturer allocate is production capacity to the two types models, so that he
may make max in profit in week?
Solutions:
3. A farmer has 100 acre. He can sell all tomatoes. Lettuce or radishes he raise the price. The
price he can obtain is Re 1 per kg of tomatoes, Rs 0.75 a head for lettuce and Rs 2 per kg of
radishes. The average yield per acre is 2000kg tomatoes, 3000 heads of lettuce and 1000kgs of
radishes. Fertilizer is available at Rs 0.5 per kg and the amount required per acre 100kgs each for
tomatoes and lettuce, and 50kgs for radishes. Labor required for sowing, cultivating and
harvesting per acre is 5 man-days for tomatoes and radishes, 6 man-days for lettuce. A total of
400 man days of labor available at Rs 20 per man day formulate the problem as linear
programming problem model to maximize the farmer’s total profit.
Solution:
Farmer’s problem is to decide how much area should be allotted to each type of crop. He wants
to grow to maximize his total profit. Let the farmer decide to allot X1, X2 and X3 acre of his
land to grow tomatoes, lettuce and radishes respectively. So the farmer will produce 2000 X1kgs
of tomatoes, 3000 X2head of lettuce and 1000 X3kgs of radishes. Profit=sales–cost=sales–
(Labor cost +fertilizer cost) Sales = 1 x 2000 X1 + 0.75 x 3000 X2 + 2 x 1000 X3
Labor cost = 5x 20 X1 + 6 x 20 X2 + 5 x 20 X3
Fertilizer cost = 100x0.5 X1 + 0.5x 100 X2 + 0.5x50 X3
The LPP model is:
Max Z= 1850 X1 + 2080 X2 + 1875 X3 STC X1 + X2 + X3 <= 100 5X1 + 6X2 + 5X3
<= 400 X1 , X2 , X3 >= 0
5. Egg contains 6 units of vitamin A per gram and 7 units of vitamin B per gram and cost 12
paise per gram. Milk contains 8 units of vitamin A per gram and 12 units of vitamin B per gram
and costs 20 paise per gram. The daily requirements of vitamin A and vitamin B are 100 units
and 120 units respectively. Find the optimal product mix.
Egg Milk Min Requirements
Vitamin A 6 8 100
Vitamin B 7 12 120
Cost 12 20
Solution:
Let x1 and x2 be the total cost of milk and egg produced respectively
The Objective function z=12x1+20x2
Vitamin A contents in egg and milk is 6 and 8 units respectively and minimum requirements is
100
i.e 6x1+8x2 >=100
Graphical Method:
1. Determination of the solution space that defines all feasible solutions of the model.
2. Determination of the optimum solution from among all the feasible points in the solution
space.
2. Plot each equation on the graph as each will geometrically represent a straight line.
3. Mark the region. If the constraint is <= type then region below line lying in the first quadrant
(due to non negativity variables) is shaded. If the constraint is >= type then region above line
lying in the first quadrant is shaded.
5 Draw the straight line to represent the objective function with the arbitrary value.
6. Stretch the objective function line till the extreme points of the feasible region. In the
maximization case this line will stop farthest from the origin and passing through at least one
corner of the feasible region.
7. In the minimization case, this line will stop nearest to the origin and passing through at least
one corner of the feasible region.
8. Find the co-ordination of the extreme points selected in step 6 and find the maximum or
minimum value of Z.
Solution:
6 A(0,6)
4 E(8,2)
2 4 6 8 10 12 x
Here the maximum value of z is attained at the corner point E(8,2), which is the point of
intersection of lines 5x+10y=60 and 4x+4y<=40. Hence the required solution is x=8,y=2 and the
max value z=64
30 C(0,30)
20 A(0,20) E(0,20)
10
Feasible region B(40,0)
D(10,0) F(15,0) x
10 20 30 40
Here the minimum value of z is attained at the corner point H(6,12), which is the point of intersection of
lines 3x+y=30 and 4x+3y=60. Hence the required solution is x=6, y=12 and the min value z=240