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MB0032 Operations Research Assignments

MB0032 Operations Research Assignments



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Published by: varsha on Oct 28, 2009
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ASSIGNMENTSMB 0032(3 or 4 credits)Set 2Marks 60OPERATIONS RESEARCH
Note: Each Question carries 10 marks
1.Describe in details the OR approach of problem solving. What are the limitations of the Operations Research?Answer: 
OR approach of problem solvingOptimization is the act of obtaining the best result under any given circumstance. In variouspractical problems we may have to take many technical or managerial decisions at severalstages. The ultimate goal of all such decisions is to either maximize the desired benefit or minimize the effort required. We make decisions in our every day life without even noticingthem. Decision-making is one of the main activity of a manager or executive. In simplesituations decisions are taken simply by common sense, sound judgment and expertisewithout using any mathematics. But here the decisions we are concerned with are rather complex and heavily loaded with responsibility. Examples of such decision are finding theappropriate product mix when there are large numbers of products with different profitcontributions and productional requirement or planning public transportation network in atown having its own layout of factories, apartments, blocks etc. Certainly in such situationsalso decision may be arrived at intuitively from experience and common sense, yet they aremore judicious if backed up by mathematical reasoning. The search of a decision may alsobe done by trial and error but such a search may be cumbersome and costly. Preparativecalculations may avoid long and costly research. Doing preparative calculations is thepurpose of Operations research. Operations research does mathematical scoring of consequences of a decision with the aim of optimizing the use of time, efforts and resourcesand avoiding blunders.The application of Operations research methods helps in making decisions in suchcomplicated situations. Evidently the main objective of Operations research is to provide ascientific basis to the decision-makers for solving the problems involving the interaction of various components of organization, by employing a team of scientists from differentdisciplines, all working together for finding a solution which is the best in the interest of theorganization as a whole.
The solution thus obtained is known as optimal decision. The main features of ORare:
•It is System oriented: OR studies the problem from over all points of view of organizationsor situations since optimum result of one part of the system may not be optimum for someother part.•It imbibes Inter – disciplinary team approach. Since no single individual can have athorough knowledge of all fast developing scientific know-how, personalities from differentscientific and managerial cadre form a team to solve the problem.•It makes use of Scientific methods to solve problems.•OR increases the effectiveness of a management Decision making ability.•It makes use of computer to solve large and complex problems.•It gives Quantitative solution.•It considers the human factors also.The first and the most important requirement is that the root problem should be identifiedand understood. The problem should be identified properly, this indicates three major aspects:(1) A description of the goal or the objective of the study,(2) An identification of the decision alternative to the system, and(3) A recognition of the limitations, restrictions and requirements of the system.
Limitations of OR
The limitations are more related to the problems of model building, time and money factors.•Magnitude of computation: Modern problem involve large number of variables and hence tofind interrelationship, among makes it difficult.•Non – quantitative factors and Human emotional factor cannot be taken into account.•There is a wide gap between the managers and the operation researches.•Time and Money factors when the basic data is subjected to frequent changes thenincorporation of them into OR models are a costly affair.•Implementation of decisions involves human relations and behaviour 
What are the characteristics of the standard form of L.P.P.? What is the standard formof L.P.P.? State the fundamental theorem of L.P.P.Answer:The characteristics of the standard form are
:1.All constraints are equations except for the non-negativity condition which remaininequalities (≥, 0) only.2.The right-hand side element of each constraint equation is non-negative.3.All variables are non-negative.4.The objective function is of the maximization or minimization type. The inequalityconstraints can be changed to equations by adding or subtracting the left-hand side of eachsuch constraint by a non-negative variable. The non-negative variable that has to be addedto a constraint inequality of the form to change it to an equation is called aslack variable. The non-negative variable that has to be subtracted from a constraintinequality of the form to change it to an equation is called a surplus variable. The right handside of a constraint equation can be made positive by multiplying both sides of the resulting
equation by (-1) wherever necessary. The remaining characteristics are achieved by usingthe elementary transformations introduced with the canonical form.
The Standard Form of the LPP
Any standard form of the L.P.P. is given by
Fundamental Theorem of L.P.P.
Given a set of m simultaneous linear equations in n unknowns/variables,n ≥ m, AX =b, with r(A) = m.If there is a feasible solution X ≥ 0, then there exists a basic feasible solution.
3.Describe the Two-Phase method of solving a linear programming problem with anexample.Answer:
Two Phase MethodThe drawback of the penalty cost method is the possible computational error that could resultfrom assigning a very large value to the constant M. To overcome this difficulty, a new methodis considered, where the use of M is eliminated by solving the problem in two phases. They arePhase I:Formulate the new problem by eliminating the original objective function by the sum of theartificial variables for a minimization problem and the negative of the sum of the artificialvariables for a maximization problem. The resulting objective function is optimized by thesimplex method with the constraints of the original problem. If the problem has a feasiblesolution, the optimal value of the new objective function is zero (which indicates that all artificialvariables are zero). Then we proceed to phase II. Otherwise, if the optimal value of the newobjective function is non zero, the problem has no solution and the method terminates.Phase II :Use the optimum solution of the phase I as the starting solution of the original problem. Thenthe objective function is taken without the artificial variables and is solved by simplex method.Examples:Use the two phase method toMaximize z = 3x1 – x2

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