With increase in population there is a need to increase agriculture output. But thiscannot be done arbitrarily. There are a number of restrictions under which agricultural production is to be studied. Therefore there is a need to determine a course of action, whichserves the best under the given restrictions. The problem can be solved by the application of OR techniques.v)
The OR methods can be used to solve waiting problems in outpatient department of big hospitals. The administrative problems of hospital organization can also be solved by OR Techniques.vi)
Different OR methods can be applied to regulate the arrival of trains and processingtimes, minimize the passengers waiting time and reduce congestion, formulate suitabletransportation policy, reducing the costs and time of transshipment.vii)
Research and Development:
Control of R and D projects, product introduction planning etc. andmany more applications.
Q2. What do you understand by Linear Programming Problem? What are the requirements of L.P.P.? What are the basic assumptions of L.P.P.?
One of the most important problems in management decision is to allocate limited and scarceresource among competing agencies in the best possible manner. Resources may represent man, money,machine, time, technology on space. The task of the management is to derive the best possible output (or set of outputs) under given restraints on resources.The management problem may be to optimize (maximize or minimize) the output or the objectivefunction subject to the set of constraints An optimization problem in which both the objective functionand the constraints are represented by linear forms is a problem in linear programming.
Requirements of L.P.P
i. Decisions variables and their relationshipii. Well defined objective functioniii. Existence of alternative courses of actioniv. Nonnegative conditions on decision variables.
Basic assumptions of L.P.P
Linearity: Both objective function and constraints must be expressed as linear inequalities.2. Deterministic: All coefficient of decision variables in the objective and constraints expressions should be known and finite.3. Additivity: The value of objective function for the given values of decision variables and the total sumof resources used, must be equal to sum of the contributions earned from each decision variable and thesum of resources used by decision variables respectively.4. Divisibility: The solution of decision variables and resources can be any nonnegative values includingfractions.
Q3. Describe the different steps needed to solve a problem by simplex method.
Following are the steps needed to solve the problem by simplex method-