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Production Engineering Department
OPERATIONS RESEARCH
CERTIFICATE
INDEX
EXPERIMENT.NO: 1
OPERATION RESEARCH
HISTORICAL DEVELOPMENT
It is generally agreed that Operation Research (OR) came into existence as a discipline
during World War II. However, a particular model and technique of Operation Research
can be traced back much earlier. The term Operation Research was coined as a result of
research on military operations during this war. Since the war involved strategic and tactical
problems, which were so complicated, that to expecting adequate solution from individuals
Operation Research specialists in a single discipline was unrealistic. Therefore, groups of
individuals who collectively and physical science were formed as special units within the
armed forced to deal with strategic and tactical problems of various military operations.
Such groups were first in England and the United States. One of the groups in England
came to be known as Blackett‟s Circus. This group under the leadership of Prof.
P.M.S.Blackett was attached to the Radar Operation Research unit and assigned the
problem of analyzing the co-ordination of Radar equipment at gun sites. Following the
success of this group, such mixed team approach was adopted in other allied nations.
A key person in post war development of Operation Research was George B Dantzig. In
1947, he developed linear programming and its solution methods known as simplex
method. Besides linear programming, many others were well developed before the end of
1950‟s.
During the 1950‟s, there was substantial progress in the applications of Operation Research
techniques for civilian activities along with a great interest in the professional development
and education in Operation Research. Many college and universities introduce Operation
Research in their curricula. They were generally schools of engineering, public
administration, business management, applied mathematics, economics, computer services,
etc. Today, however service organization such as banks, hospitals, libraries, airlines,
railways, etc. recognize the usefulness for in improving their efficiency. In 1948, an
Operation Research was formed in England which later changed the name to Operation
Research Society of America (ORSA) was found in 1952 and its journal, Operation
Research, first published in 1953. In the same year, the Institute of Management Science
(TIMS) was founded as an International Society to identify, extend and unify scientific
knowledge pertaining to management. Its journals, Management, Science, first appeared in
1954.
In India, Operation Research came into existence in 1949 when an Operation Research unit
was established at Regional Research Laboratory, Hyderabad. At the same time, Prof. R S
Verma, also ser up an Operation Research team at Defence Science Laboratory to solve
problems of store, purchase and planning. In 1933, Prof. P C Mahalanobis established an
Operation Research team in the Indian statistical institute, Calcutta to solve to solve
problems related to national planning and survey. The Operation Research Society of India
was founded in 1957 and started publishing its journal OPSEARCH. In same year, India
along with Japan became in London. The other member of IFORS was USA, UK,
FRANCE and what was when WEST GERMANY.
Because of OR‟s multi disciplinary character and application in varied fields, it has a good
future provided people devoted to OR study can help meet the needs of society. Some of the
problems the area of hospital management, energy conservation, environmental pollution
etc. which have been solved by OR specialists is an indication that OR can also contribute
towards the improvements in the pattern of social life and areas of global need. However, in
order to make the future of OR more bright, it specialists have to make good use of the
avenues open to them.
For example, color of an atom does not play any vital role in the scientific study of
its structure.
2. Analogue Model: These models represent a system by the set properties different
from that of the original system does not resemble physically. After the problem is
solved, the solution is reinterpreted in terms of the original system.
For example, the organizational chart represents the state of formal relationships
existing between members of the organization. Map in different colors may
represent water, desert and other geographical features. These models are less
specific and concrete but easier to manipulate and more general than iconic models.
SYMBOLIC MODELS:
These models use letters, numbers and other symbols to represent the properties of the
system. These models are also used to represent relationship, which can be represented in a
physical form. Symbolic models can be classified into two categories:
1. Verbal Models: These models describe a situation in written Operation Research
spoken language. Written sentences, books, etc. are examples of a verbal model.
2. Mathematical Models: These models involve the use of mathematical symbols,
letters, numbers, and mathematical operators (+, -, *, /) to represent relationship
among various variable of the system to describe its properties Operation Research
behavior.
The solution to such models is then obtained by applying suitable mathematical
techniques. Symbolic models are precise and abstract and can be manipulated by
using laws of mathematics.
GENERAL METHODS
In general, the following three models are used solving Operation Research models. In all
these methods, values of decision variables are obtained that optimize the given objectives
function.
1. ANALYTICAL METHOD (DEDUCTIVE): In this method, classical optimization
techniques such as calculus, finite difference and graphs are used for solving and
Operation Research model. In this case, we have a general solution specified by symbol
and we can obtain the optimal solution in a non-iterative manner. For example, in
inventory models, in order to calculate economic order quantity the analytical method
requires that the first derivative of the mathematical expression
TC = (D/Q) Cp + (Q/2) Ch
Where, TC = Total variable inventory cost;
Cp = Ordering cost per;
Q = size of an order;
D = annual demand;
Facilities Planning
Manufacturing
Maintenance and project scheduling
5. PERSONNEL MANAGEMENT:
EXPERIMENT.NO: 2
The usefulness of linear programming as a tool for optimal decision making on resource
allocation is based on its applicability to many diversified decision problems. The effective
use and application require, as a first step, the mathematical formulation of the LP model
when the problem in words.
STEPS OF LP MODEL FORMULATION
Step 1: - Define Decision Variable:
a) Express each constraint in words. For this first see, whether the constraint is of form,
(at least than). Operation Research of the for (no longer than) Operation Research
= (Exactly equal to)
b) Then express the objective function in words.
c) Step 1(a) and 1(b) should then allow you to verbally identify the decision variable.
Step 2: - Formulate the Constraints:
Formulate all the constraints imposed buy the resource availability and express them as
linear equality Operation Research inequality in terms of the decision variables defined in
step 1.
Step 3: - Formulate the Objective Function:
Define the objective function. That is, determine whether the objective function is to be
maximized /minimized. Then express it as a linear function of decision variables multiplied
by their profit/cost contributions.
INTRODUCTION
An optimal as well as feasible solution an LP problem is obtained by choosing among
several values of decision variables X1, X2,…., Xn the one set of values that satisfy the
given set of constraints simultaneously and also provides the optimal values of the given
objective function.
The given objective function is parallel to a constraint that forms the boundary of
the feasible solutions region. In other words, the slope of the objective function is
same as that of the constraint forming the objective function is same as that of the
constraint forming the boundary of the feasible solutions region.
The constraint should form a boundary on the feasible region in the direction of
optimal movement of the objective function. In other words, the constraint should
STANDARD FORM OF LP
The use of the simplex method to solve an LP problem requires that the problem be
converted into its standard form. The standard form of the LP problem should have the
following characteristics:
Optimize Z = CX + 0S
Subject to the linear constraints
AX + S = B and X, S 0
Where C = (C1,C2,…,Cn) is the row vector;
X = (X1,X2,…,Xn), B = (B1,B2,…,Bm)
S = (S1,S2,…,Sn) are columns vectors and
A11 A12… A1n
A21 A22… A2n
… … …
Am1 Am2 Amn is the (m x n) matrix of coefficients of variables X 1,
X2,…, Xn in the constraints.
There types of additional a variables, namely
1. Slack variable (S)
2. Surplus variables (-S)
3. Artificial variables (A)
STEPS OF ALGORITHM
PHASE 1:
Step 1:
a) If all the constraints in the give LP problem are (<) type, then phase II can be directly
use to solve the problem. Otherwise, a sufficient number of artificial variables are
added to get a basis matrix (identity matrix).
b) If the given LP problem is of minimization, then convert it to the maximization type by
the usual method.
Step 2: Solve the following LP problem by assigning a coefficient of –1 to each artificial
variable and zero to all other variable and zero to all other variables in the objective
Max Z* = 0 and at least one artificial variable is present in the basis with position
value. Then no feasible solution exists for the original LP problem.
Max Z* = 0 and no artificial variable is present in the basis. Then the basis consists of
only decision variables (Xjs) and hence we may move to phase II to obtain an optimal
basic feasible solution to the original problem.
Max Z* = 0 and at least one artificial variable is present in the basis at zero value.
The feasible solution to the above LP problem is also a feasible solution to the
original LP problem. Now orders to arrive at the basic feasible solution we may
proceed directly to phase II operation research else eliminate the artificial basic
variables and then proceed to phase II.
If for a column, k, Ck – Zk is most negative and all entries in this column are negative,
then the problem has an unbounded optimal solution.
If one or more Cj – Zj < 0 then select the variables to enter into the basic with the
largest negative Cj – Zj value. That is, Ck – Zk = Min(Cj – Zj:Cj – Zj < 0)
The column to enter is called key or pivot column.
Step 4: Determine the key row and key element in the same manner as discussed in the
simplex algorithm of the maximization case.
LINEAR PROGRAMMING FORMULATION OF DUAL PROBLEM
The term „dual‟ in a general sense implies two/double. The concept of duality is very useful
in mathematics, physics, and statistics and engineering.
In context of linear programming duality implies that each linear programming problem can
be analyzed in two different ways but having equality solutions. Each LP problem stated in
its original form has associated with another linear-programming problem, which is unique
based on the same data. In general it is immaterial which of the two problems is called
primal / dual since the dual is primal.
SYMMETRICAL FORM
A summary of the general relationship between primal and dual LP problem is given in
table below:
ECONOMIC INTERPRETATION
TRANSPORTATION PROBLEM
The transportation problem applied to situation in which a single product is to be
transported form several sources to several sinks. In general, let there be m sources, S 1,
S2,…,Sm having Ai units of supplies or capacity respectively table transported among n
destination D1,D2,…,Dn with Bj units of requirement respectively. Let Cij be the cost of
shipping one unit of commodity from sources i to destination j for each route. If Xij
represents the units shipped per route from source i to destination j, the problem is to
EXPERIMENT.NO: 3
GRAPHICAL SOLUTION
INTODUCTION
An optimal as well as feasible solution to an LP problem is obtained by choosing among
several values of decision variables x1, x2, …., xn. The one set of values that satisfies the
given set of constraints simultaneously and also provide the optimal values of a given
objective function.
For LP problems that have only two variables it is possible that the center set of feasible
solution can be displayed graphically by plotting linear constraints to locate a best optimal
solution. A technique used to identify the optimal solution is called the graphical solution
technique for an LP problem with two variables.
DEFINITION
Basic Solution:
In a system of m equations and n unknowns where n>m,
AX= b and XT belongs to Rn
When A is a (m x n) matrix of rank m.
Let B be any x sub matrix formed by linearly independent columns of A, then the solution
is obtained by setting n-m variables, not associated with the columns of B, equal to zeroes
and solving the resultant system is called a Basic Solution to the given system of equations.
The n-m variables whose values did not appear in the solution are called non-basic
variables and the remaining m variables are called basic variables.
Solution:
Solution values of decision variables xj(j=1,2,…n) which satisfy the constraint of general
LP model is called the solution of the LP model.
Feasible Solution:
Solution values of decision variables xj (j=1,2,…n) which satisfy the constraints and non-
negativity condition of general LP model are said to constitute the feasible solution to that
LP model.
SIMPLEX METOD:
STANDARD FORM OF LP:
The use of the simplex method to solve an LP problem requires that the problem be
converted into its standard form. The standard of the LP problem should have the following
characteristic.
1. All the constraints should be expressed as equations by adding slack, operation
research surplus and artificial variables.
2. The right hand side of each constraint should be made non-negative, if it is not, this
should be done by multiplying both sides of the resulting constraints by-1.
3. The onjective function should be of the maximization is expressed as:
Optimize (max/min) Z = C1X1 + C2X2 +…..+ CnXn + 0S1 +….+ 0Sm
function point of view, if objective function Z is to be minimized, then a very large positive
price is assigned to each artificial variable. Similarly, if Z is to be maximized, then a very
large negative price is assigned to each of this variable. The penalty will be designated by
=M for maximization problem and +M for a minimization problem, where M>0. The big M
method for solving and LP problem can be summarized in the following steps:
1. Express the LP problem in the standard form by adding surplus variables and artificial
variables. Assign a zero coefficients to surplus variables and a very large positive
number +M and-M to artificial variables in the objective function.
2. The initial basic feasible solution is obtained by assigning zero value to original
variables.
3. Calculate the values of Cj-Zj in fast row of the simplex table and examine these values.
a) [a] If all Cj-Zj>0, then the current basic feasible solution optimal.
b) [b] If for a column, k, Ck-Zk is most negative and all entries in this column are
negative then the problem has an Unbounded Optimal Solution.
c) [c] If one / more Cj-Zj<0 then select the variable to enter into the basic with the
largest negative Cj-Zj value. That is,
d) Ck-Zk= Min{Cj-Zj; Cj-Zj<0}
e) The column to be entered is called the key / pivot column.
4. Determine the key row and key element in the same manner as discussed in the
simplex procedure of the maximization case.
EXPERIMENT.NO: 4
DEFINATION
The dual is an auxiliary LP problem defined directly and systematically from the original of
primal LP model. In most LP treatments, the dual is defined for various forms of the primal
depending on the types of the constraints, the signs of the variables and the sense of
optimization.
The general standard for the primal is defined as
n
Maximize or Minimize Z = CjXj
j =1
Subject to
n
AijXj = Bi, i = 1,2,……,m
j=1
Xj 0, j = 1,2,….,n
If the primal problem has its objective function of maximization its all constraints must
have type of inequality. Like that, the primal problem having its objective function to
be minimized should have all its constraints type of inequality.
The nature of optimization is changed, i.e. if objective of primal problem is to be
maximized, the objective of dual problem is to be minimized and vice versa.
Right hand constants of primal problem become objective function coefficients of dual
problem. This demands that for each constraint in primal problem there is a separate
dual variable. And vice versa objective function coefficients of primal problem become
right hand constants of dual problem giving a constraint of each variable in the primal
problem. For example, if primal problem ha m number of constraints and n number of
variables then its dual problems has n number of constraints and m number of variables,
i.e. if primal is of order m x n the dual is of order n x m.
Inequalities of constraints are reversed.
Row coefficients of the matrix of primal problem become column coefficients of the
matrix of dual problem in the same order i.e. 1 st row of primal become 1 st column of
dual.
Primal as well as dual variables are non-negative.
INTERPRETATION AND PROPERTIES OF DUAL
Following are a few important interpretation and properties of dual problem:
The objective function value of any feasible solution to the primal will be less than or
equal to the objective function value of every feasible solution to the dual i.e. ZZmin.
If either the primal or the dual has an unbounded solution, the solution to the other
problem is infeasible.
If both primal and dual problems have feasible solution then both also have optimum
solution and Zmax = Zmin.
If the primal has a feasible solution but the dual has no feasible solutions, then the
primal does not have a finite optimum solution. Likewise, if the dual has a optimum
solution.
The above conclusions are derived as the statements of dual theorems.
Some of the important of Prima-Dual are:
The index row coefficient under the slack variables in primal optimal solution is the
optimal values of the dual variables.
The index row coefficient under variable in the primal optimal gives the difference
between the left and right hand sides of the associated optimal dual corresponding dual
constraints.
The solution associated with a basis is optimal if all index row coefficients are 0.
The basic variable having the largest negative value is the departing variable and its row
is the key row.
SENSITIVITY ANALYSIS
Management‟s interest in optimization is not confined to obtaining optimum solutions for
the given set of data. In fact, management for its decision-making in changing situations has
interest in analyzing the present optimal solutions for projecting its future picture. Such an
investigative analysis is called sensitivity analysis. As this analysis is based on the optimal
solution presently obtained, it is called post-optimally analysis.
Sensitivity analysis will seek answers to the following questions: (these questions are put in
relation to a product-mix problem for profit maximization with the given set of constraints
due to resources. However, the analysis will draw general conclusion.)
…. if objective coefficient of a particular basic variable in optimal solution changes, does
the present solution remain optimal? If objective coefficient of a particular non-basic
variable in optimal solution changes, does the present solution remains optimal?
…. when will happen to the present optimal solution if a certain resources is augmented or
curtailed?
…. what will happen to the present optimal solution, if a product is added or dropped?
EXPERIMENT.NO: 5
1. TRANSPORTATION TECHNIQUE
This is a special case of linear programming. The aim of this technique is that within a
given time period, a single homogenous specified commodity to be transported form „m‟
number of sink on destination available units so that, total cost of transportation is
minimum. Here size and location of plant are decided. The technique helps to determining
optimal solution.
Consider „m‟ number of source and „n‟ number of destination, also consider ith source of
availability of Ai number of units of a product and n number of destinations as jth
destination requires Bj number of units for the same product. Let the cost associated with
transportation is Cij and decision variable is Xij. Let mathematical statement of problem,
m n
Minimize Z = Cij Xij ………………… (1)
i=1 j=1
equation (1) is called objective function.
m
Subject to Xij = Bj
i=1
n
& Xij = Ai
j=1
These are called constraints of the function.
For a balanced problem, suppose there are 4 sources and 3 destinations, minimize,
Z = C11X11 + C12X12 + C13X13 + C21X21 + C22X22 + C23X23 + C31X31 + C32X32 + C33X33 +
%S C41X41 + C42X42 + C43X43
Subject to X11 + X12 + X13 = A1
X21 + X22 + X23 = A2
penalty cost will be assigned more possible units and its lowest cost. The process
will be repeated for each allocation to be made after eliminating row or column.
3) Inspection Method: If size of problem is small, inspection method is used. Here
dummy row or column will be allocated. Select lowest cost cell and assign more
feasible units to it. Repeat this until Ai < Bj or Ai > Bj and until availability and
requirement become equal.
2. ASSIGNMENT MODEL
Consider that there are „n‟ persons having varying degrees of proficiency to accomplish „n‟
different tasks in an organization. These „n‟ tasks are to be assigned to each one of „n‟
persons in such a manner that the effective performance of the organization as a whole is
maximized. This is called assignment problem. The objective function to be optimized
may be effective performance (more) total cost of finishing „n‟ jobs or total time of
completing „n‟ jobs or any other suitable criteria for objective function depending upon the
assignment problem.
Add as many dummy rows on dummy column to make matrix square. This
corresponds to balancing of transportation problem. In a problem of assignment, each
of the origin has availability of a unit and each of destinations has requirement of a
unit.
Take the first row and subtract its smallest cost element from all the elements. Repeat
this for all the rows.
Similar do for column. In this there will be at least one zero element in each row and
column.
Starting with the row that has only one zero give assignment there and cross mark
there.
If there are more than one zero, start with column and find the solution.
EXPERIMENT.NO: 6
In real world time can‟t be known with total certainty. Particularly there are several
projects involving research, innovation, and design, development where there is no previous
experience or record of handling such activities. For such activities forecasting of time
estimates will involve uncertainty. This necessitates probabilistic approach and is popularly
known as PERT. This is its one and only feature which distinguishes it from CPM.
Time t for an activity is assumed top have its probability density p(t) following Beta
distribution in PERT; thus it is
P(t) = k (t-to)tp-t)
where to = the optimistic time,
tp = the pessimistic time,
= exponents values of which are decided on the basis of the mode and mean ab
of the distribution
Optimistic time means estimated duration of activity where all factors concerning the
activity operate favorably. Although it is easier said than obtained, optimistic time
presumes that everything goes all right for the activity right from the word „get-set-go‟.
Pessimistic time means estimated duration of activity where in all factors concerning the
activity operate unfavorably. Both of these estimates are qualified guesses and are
additionally consider the concept of most likely time, t m that is the mode of the distribution.
Figure 1 shows beta distribution followed by activity times, where T E is the average time in
which activity is expected to be
completed. The value of TE
depends on how close the values
of to and tp are relative to t m.
Expected time of an activity
TE = ( to + 4tm + tp
)/6
Since the actual time of an activity
is likely to vary form mean value
(TE), we need the variance of the
activity time distribution. Being
unimodal distribution, it spread
Attempt is often made to bring out difference between PERT and CPM, besides that of
time-estimates being probabilistic in PERT and deterministic in CPM. In fact, all other
aspects are common. Historically PERT came up from different problem area. This was in
relation to plan and accelerate development of the Polaris ballistic missile.
When activity durations are uncertain, attention is principally focused on vents of activity.
This is because events are identified. For example, to develop a process for synthetic
cryogenic rubber. Here terminal point-event is known, though activity duration is not
known with certainty. It is in this context of more familiarity of events involved and less
certainty of activities. The PERT is called event-oriented. In fact, the difference is not
organic but that of focus.
By calculating expected activity time for each activity from three times estimates, PERT
network is prepared and critical path is found on that. As each activity time has standard
deviation and variance, the project duration obtained is also expected duration having
standard deviation and variance. The critical path length is the summation of activities on
the path. As the variance of a sum of independent activities is equal to the sum of their
residual variance, the variance of critical path duration can be calculated,
VT = variance of critical path = variances of critical activities
VT = Vt1 + Vt2 + Vt3
VT = variance of any activity in PERT = ()2
Where is the standard deviation of each activity time
=(tp – to) / 6
ST = standard deviation of the project = VT
Variance VT standard deviation ST of the project gives the measure of uncertainty of the
expected duration of the project TE.
CRASHING
Being more practical on scheduling problems, know if the activities involved in the project
can be reduced in duration by providing extra resources. These added resources will
increase the cost of completing the activity, but other advantage out weigh this increased
cost, the activity should be expedited, or crashed. The duration of the project will be
reduced, only if duration of one or more critical activities is reduced. If there are activities
using similar resources and if these activities have slack, they can be carried out at their
normal or most efficient pace, with allocation of less resource, so that part of these can be
diverted to the activity on the critical path without additional cost. In general, this is not
possible for all activities and thus we use the concept of criticality to apply extra resources
to project activities selectively, so that maximum reduction of project time is achieved with
the least additional cost. The increased cost of an activity and is stated in terms of
additional expenditure required for reduction in activity duration of one unit time period.
The total cost of a project is not merely the sum of all direct costs of all the activities in the
project, but other indirect expenses, which depend on the duration of project, must also be
included.
Thus, project schedules influence two types of costs – direct cost of all activities in the
project, which increases when activities are expedited and indirect cost which decreases
when the project duration is reduced.
Figure 2-a gives the relation of direct cost of the activity versus activity duration, presuming
linear relationship. On the other hand, relation of indirect costs with respect to project
duration assumed linear is given in figure 2-b.
If activity „A‟ has the direct cost defined by the slope A any reduction of the duration of
the activity by time TA will involve additional cost of (TA) *A. As against that it will
reduce the indirect cost of the project by (TA) * . Thus, crashing of activity A is
beneficial only if
(TA) * (TA) *A
i.e., A
It, therefore, suggests that it is possible to have an optimum schedule – the lower – cost
schedule, which strikes a balance between direct costs and indirect costs.
For simplicity, time cost relationships is approximated as linear one. For better
understanding, activity time-cost relationship is further elaborated. Initially, the time
estimate is so set that the resources required are used in the most efficient way to
accomplish the task at minimum cost. These are known as normal time and normal cost.
Suppose there is an activity, which requires three men for its completion in normal time. In
order to expedite it, every time one more man may be added and reduction in time and
increase in cost may be noted and plotted on graph. Every time the slope will be steeper.
Finally it reaches to the point, where increase in number of men does not reduce the time
further, thus this is the shortest time in which this activity can be completed. This is called
crash time and cost against it as crash cost. By joining the crash and normal points, the line
is accepted as entire relationship. Beyond normal time, if the activity is delayed, the cost
may remain constant for small duration but will increase if the activity is excessively
delayed. Figure 3 shows the activity time cost relationship.
There is no reason to believe that every contractor should have some normal and crash
points for a selected activity. Thee tow points will depend on experience of the ken,
available equipments, teamwork, administrative ability that differ from organization to
organization.
The CPM model finds the least cost
schedule after verifying the possible
crashing of the project. To begin
with, a preliminary schedule is
generated with each activity at its
normal point. This is the maximum
length schedule. Then activities on
critical part are marked as critical
activities. For each of these critical
activities, direct cost versus reduction
in activity duration relation
established. At the same, relation
between project duration versus
indirect cost of project is also known.
If for one or more activities increase in
direct cost is less than the saving in the
indirect cost, then a less expensive schedule can be obtained. While considering critical
activities, the activity that has the highest potential for affecting reduction in duration are
the lowest additional cost is chosen first. The improvements are made in steps. New
schedules are generated as long as activities can be crashed with the net reduction in total
project costs.
NETWORK MODELS
REPRESENTATION
Label the modes 1,2,…..,m.
Label the links 1,2,…..,m.
DISCRETE FORMULATION
For a minimally connected network, n = m – 1.
Each link may change attributes [cost, capacity, etc.].
Each node may have same attributes [demand, capacity, etc.].
Put 1 for end mode.
Put –1 for beginning mode.
A useful concept is to define flows on links of a network.
Let Xj be the row on link j, if Cj is the cost of flow on j.
OBJECTIVE
Xj = 1 j leaving
Cj = 1 j entering
General minimum cost flow problem (also called optimum distribution problem)
Min CjXj
Subject to CijXj = Bi for each i j = arcs, i = nodes.
Is Xj Cij
The shortest path problem is a special case of this with
Bi = 1 for the origin
Bi = -1 for the destination
Bi = 0 for all other nodes
Cij = cost / time for traveling link j, ij = 0, ij = 1.
The bound constraints are treated separately. This Cp has integer solution (if the data is
integer). This is because of the constraint matrix.
EXPERIMENT.NO: 7
GAMES THEORY
INTRODUCTION
In business and economics literature, the term „games‟ refers to the general situation of
conflict and competition in which two or more competitions are engages din decision-
making activities in anticipation of certain outcomes over time. The competitors are called
players. A player may be an individual, a group of individuals, or an organization. A few
examples of the competitive and conflict situations where techniques of theory of games
may be used to resolve them are; two or more candidates contesting and election with the
objective of winning with more votes; advertising and other marketing campaigns between
competing business firm; contractors filling bid to win business contract etc theoretically
theory of games provides mathematical models that can be quite useful in explaining
interactive decision-making concept. But as a practical tool, theory of games is limited in
scope. However, it is one type of decision-making technique where on competitor‟s choice
of course of actions does determined after taking in to account all possible alternative
courses of action of another competitor engaged in the competition.
The models in the theory of games can be classified depending upon the following factors:
1. NUMBER OF PLAYERS: If a game involving only two players, then it is called a
two – person game. However, if the numbers of players are more than two, the game is
referred to as n-person game.
2. SUM OF GAINS & LOSSES: If in a game the gains to one player are exactly equal to
the losses to another player, so that sum of the gains and losses equal zero, then the
game is said to be a zero-sum game of it said to be non-zero game.
3. STRATEGY: The strategy for a player is the list of all possible actions that the he will
take for every payoff that might arise. Here it is on necessary that players have definite
information about each other‟s strategies.
The particular strategy by which a player optimizes his gains or losses without knowing the
competitor‟s strategies is called optima strategy. The expected out come per play when
players follow their optimal strategy is called the value of game. Generally, players in a
game employ two types of strategies as given below:
1. PURE STRATEGY: It is decision rule, which is always used by the player to select
the particular course of action. Thus, each player knows in advances of all strategies
out of which he always selects only one particular strategy irrespective of the strategy
others may choose and the objective of the players is to maximize gains or minimize
losses.
2. MIXED STRATEGY: When both the players are guessing as to which course of
action is to be selected on a particular occasion with some fixed probability, it is mixed
strategy game.
TWO – PERSONS – ZERO – SUM – GAME
A game with only two players, say player A ands B is called Two – persons - Zero – Sum –
Game, if say player A‟s gain is equal to the loss of player B, so that total sum is zero. The
payoffs in terms of gains or losses, when players select their particular strategies, can be
represented in the form of a matrix, called the payoff matrix.
PURE STRATEGIES
GAMES WITH SADDLE POINT
The selection of an optimal strategy by each player without the knowledge of the
competitor‟s strategy is the basis problem of playing games. Since the payoff for either
player provides all the essential information, therefore only one player‟s payoff table to
required evaluating the decisions. By convention, the payoff table for the player whose
strategies are represented by (say player A) rows is constructed. Now the objective of the
study 1 to know how these players select their respective strategies so that they may
optimize their payoff. Such a decision making criterion is referred to as the minimax –
maximin principle. Such principle I pure strategies game always leads to the best possible
selection of a strategies game always leads to the best possible selection of a strategy for
both players.
1. Select the minimum element in each row of the payoff matrix and write them under
row minima heading. Then select a largest element among these elements and
enclose it in a rectangle.
2. Select the maximum elements in each column of the payoff matrix and write them
under column maxima heading. Then select a lowest element among these elements
and enclose it in a circle.
3. Find out the elements that are same in the circle as well as rectangle and mark the
position of such elements in the matrix. This element represents the value of the
games and it is called the saddle point.
MIXED STRATEGIES
There are certain payoffs where pure strategies do not lead to saddle point and hence it is
not possible to decide optimal strategies. There is no stable solution of the payoff matrix.
The shifting from one strategy to another in case of unstable solution results in selection of
the strategies by both players on random basis. The two players have to decide their plans
for playing the game and assign probability values X and Y by which they will play their
respective strategies. These plans are referred as mixed strategies.
ARITHMETIC MODEL
This method enables us to decide odd elements of each strategy in mixed strategies. From
odd elements, we can calculate the optimal frequency of each strategy and also the value of
the game.
Consider the following payoff matrix:
B1 B2
A1 a11 a12 1 = a11 – a12
A2 a21 a22 2 = a21 – a22
3 = a11 – a21 4 = a12 – a22
Odd elements of a given row are obtained by the numerical difference of elements in
another row. Similarly, oddments of a given column are obtained by the numerical
differences of elements in another column.
Optimal frequency of the strategy A1, X1 = 1 / (1 + 2)
Optimal frequency of the strategy A2, X2 = 2 / (1 + 2)
Optimal frequency of the strategy B1, Y1 = 3 / (3 + 4)
Optimal frequency of the strategy B2, Y2 = 4 / (3 + 4)
If total of oddments of rows is equal to the total of oddments of columns, the value of the
game, V will be
Vb1 = a11X1 + a21X2 ….. value if B plays 1
METHOD OF MATRICES
Previously we discussed arithmetic method as applicable 2 x 2 payoff matrix. In fact, it can
also be extended 3 x 3 matrix, as under, which is self – explanatory.
B1 B2 B3
A1 a11 a12 a13
A2 a21 a22 a23
A3 a31 a32 a33
EXPERIMENT.NO: 8
INVENTORY MANAGEMENT
INTRODUCTION
Inventory is material in stock and idles at a given point of time that will be used to satisfy
some further demand of that material. Inventory decreases as demand process operates and
increases as replenishment process operates. Demand may be random function and perhaps
normally not under control of decision-maker, while replenishment in monitored by the
decision-maker. The replenishment is the input process to the inventory system and gives
the rate at which material is added to the inventory system. The source of replenishment
may be either production or purchase of the material. The rate at which material is
withdrawn from the inventory is the output process of the inventory. The output is always
in response to demand. The output rate equals to demand rate unless the policy decision
provides otherwise or in event of inventory level decreasing to zero level, when the
situation is described as stock out or out-of-stock condition.
The mathematical models of inventory system under different operating conditions involve
mainly two-decision variable i.e. how much to order and when to order, when source of
replenishment is purchase of how much to produce and when to produce, when production
is the source or replenishment. With the associated cost of material and its storing,
inventory system operating cost. It is therefore necessary to appreciate what benefits are
derived from having inventory and then derive the concept of optimum inventory. The
following benefits of inventory control, which resemble with its function, are self-
explanatory:
1. Inventory enables in decoupling production system from demand fluctuation. If demand
increases inventory of finished and semi-finished goods take care of it. It demands
decreases the inventory of finished and semi-finished goods could be built up.
2. Inventory enables to derive advantages of planning optimum lot size in production as a
trade-off against setting time.
3. Inventory enables the sequencing of different components for optimum machine loading
and set-up costs.
4. Inventory enables to have uniform labor force resulting labor force resulting in good
labors relation. In production of the product with seasonal demand.
5. Inventory enables to sustain customer goodwill, as it is possible to honors the orders by
committed dates.
6. In the absence of adequate, inventory a situation my come where “rush-order” has to be
made for which, in general, very high price as to be paid.
All these advantages justify the policy of having large inventory. However, there are
considerations, which warrant such a policy. These considerations are as under:
1. Inventory means locked up capital, which could be used for alternative purposed.
2. Locked up capital involves interest.
3. Inventory being physical goods in likely to deteriorate on storage.
4. It involves the risk of fire ad theft. Alternatively, if involves insurance cost. This
suggests that although inventory, because it has to be only adequate. Thus, excess
inventories are undesirable. This calls for controlling the inventories in most profitable
way.
INVENTORY MODELS
By inventory model, we mean to represent the inventory state, operating condition and costs
involved through mathematical relationships, so as to fine Economic Order Quantity when
source of procurement is purchase or to fine Economic Batch Quantity when source of
procurement is manufacturing.
Model 1:
The model is Deterministic. Single item model i.e. it ignores all uncertainties and deals only
with one item. It is characterized by: (1) demand is constant, at uniform rate and known
with certainty (2) lead time and other system parameters such as costs are constant,
independent of replenishment quantity and are known with certainty (3) replenishment is
infinite and (4) shortage of stock is not permitted. A production system needs R units of a
purchased material over a schedule period of time T. the rate of usage is uniform i.e. R/T. if
all R units are purchased at the beginning of the schedule period T, the inventory position is
as shown in fig, which is the graphical presentation of inventory level v/s time.
Ouantity in stock
T
Time, t
As shortage is not permitted, the replenishment has to commence at b. As replenishment is
instantaneous, it is shown by the vertical line and the next cycle commences.
Thus, for the schedule period T there is average inventory of R/2 units, which involves
holding cost. There is one order cost. Therefore, total associated cost for order R units:
TCR (R) = C1 (R/2) T + C2 …..(1)
Instead, if q units are ordered at the beginning and the order of the same quantity is
repeated R/q times, the position will be shown in following figure.
Ouantity in stock
tc tc tc
Time, t
The total associated cost in schedule period T will then be R/q times cost associated with
each order.
TAC (q) = [C1 * (q/2) * tc] R/q
TAC (q) = C1 * (R/2) * tc + C2 (R/q)…………(2)
Comparing equations (1) and (2), it can be seen that by not ordering the full quantity in the
beginning the cost-component due to holding decreases, as t c < T, and cost-component due
to re-ordering increases R/q times. So, there has to be certain value of q at which TAC(q) is
min. This value of q is optimum order-size of Economic Ordering Quantity designated as
qo. Number of purchase-cycle in schedule time T = R/q = T/ t c.
Therefore equation (2) can be rewritten as:
TAC (q) = C1 * (R/2) * (Tq/R) + C2 (R/q)
TAC (q) = C1 * (T/2) * q + C2 (R/q)…………..(3)
From above equation TAC(q) depends only on q. Two individuals cost component
(C1T/2)*q and C2R/q, as well as TAC(q) are shown in the following figure.
To determine qo we differentiate TAC(q) in equation (3) with respect to q, for maximum
and minimum TAC(q). Thus,
d(TAC)/d(q) = C1T/2 – C2R/q2 = 0
So, qo = 2C2R / (C1/T)
TAC (q)
C2 R/q
C1Tq/2
Cost
Second differentiation of TAC is Positive. Hence, the value of q is for minimum TAC, and
corresponding value of q is optimum.
So, qo = 2C2R / (C1/T).…………(4)
This is called optimum lot size, also known as economic lot size. R/T is the rate of demand,
in units per unit time.
Designating it as r = R/T equation (4) becomes,
qo = 2C2r/C1
If i is the interest rate on capital per unit time T and if holding cost essentially consists of
purchases-investment. Then C1 = i * P where P is price per unit quantity.
So, qo = 2C2R / (iPT)
By substituting the value of qo of equation (4) in equation (3) we get minimum total
associated cost during scheduled period T
TAC (qo) = [C1C2RT/2] + [C1C2RT/2] = 2C1C2RT
Minimum total associated cost per unit time TAC (q) = 2C1C2r
This shows that for optimum value of qo when TAC minimum the cost-component due to
holding of inventory is equal to the cost component due to re-ordering. Thus in for point P
lies on the ordinate from the point of intersection of the graphs of individual cost-
components.
Now, tcc optimum cycle times is given by,
Ttcc = Tqo/R = T/R * [2C2R/C1T] = 2C2T/(C1R) = 2C2/(C1r)
MODEL 4
Having considered deterministic demand models earlier, we may now consider the cases
where demand is probabilistic, which is quite realistic in every day world.
CHARACTERISTIC:
Demand is in discrete quantities; demand is probabilistic and is met instantaneously.
Set-up cost is zero. Therefore, relevant cost elements are holding cost and shortage
cost.
Let r = number of discrete units required with probability, pr,
l = stock level in discrete units,
C1 = holding cost per unit quantity per unit time,
C3 = shortage cost per unit quantity per unit time,
When l > r the inventory cost is due to holding.
When r > l the inventory cost is due to shortage.
1. As demand is probabilistic the probable units in inventory is (l - r) pr and its cost is
C1 (l - r) pr. The total inventory cost due to holding is,
r=1
C1 (l - r)pr
r=0
As the demand exceeds and becomes l + 1 and above the cost is due to shortage. The
probable units in shortage is (r - l) pr and its cost is C3(r - l) pr. Thus, if the demand is to
vary from zero to infinity,
r=1 ∞
TAC (l) = C1(l - r)pr + C3(r - l)pr .....(5)
r=0 r=l+1
Now, optimum stock level lo can be considered as one in which one more unit well as one
less unit will increase the cost. That is at lo.
TAC (lo + 1) > TAC (lo) and
TAC (lo - 1) > TAC (lo)
We may re-write the equation (5) for l+1 stock level
l+2 ∞
TAC (l + 1) = C1(l + 1 - r)pr + C3(r - l - 1)pr .....(6)
0 l+2
l+1 1
∞ l ∞
Now, pr = 1 = pr + pr
0 0 l+1
l l
Therefore, TAC (l + 1) = TAC (l) + C1pr - C3 [1 - pr]
0 0
l
So, TAC (l + 1) = TAC (l) + (C1 + C3) pr - C3
0
For l to be optimum, TAC (lo + 1) > TAC (lo)
lo
i.e., (C1 + C3) Pr - C3 > 0
0
lo
So, Pr > C3
0 C1 + C3
So, P (r / lo) > C3 .....(10)
C1 + C3
P (r / lo) means summation of P (r) for the value of r from zero to lo. If stock level is l - 1,
l-1 ∞
TAC (l - 1) = C1 (l - 1 - r) pr + C3 (r - l + 1) pr .....(11)
0 l
l-1
The first term C1 (l - 1 - r) pr can be rewritten as
0
l
C1 (l - 1 - r) pr + C1pr
0
l l
C1 (l - r) pr - C1 pr + C1pr .....(12)
0 0
∞
The second term C3 (r - l + 1) pr can be rewritten as
l
∞ ∞
C3 (r - l + 1) pr = C3 (r - l + 1) pr + C3pl
l l+1
∞ ∞
= C3 (r - l) pr + C3pr + C3pl
l+1 l+1
∞ l
= C3 (r - l) pr + C3 (1 - pr) + C3pl .....(13)
l+1 0
p (r / lo - 1) means summation of p (r) for the value of r from zero to (lo - 1).
EXPERIMENT.NO: 9
QUEUING THEORY
INTRODUTION
Most of the basic work on queues or waiting line theory was carried out by A. K. Erlang in
early nineteenth century. He experienced congestion of telephone traffic during his work at
Copenhagen Telephone Company and came out with most of the work for the mathematical
models in queuing theory.
Service-seekers and serves make a system, which needs consideration. Service may be
anything that occupies a man, facility or location for some period of time so that potential
service-seekers known as arrivals at any time and require the use of server. If at any time, in
a queue may drive out a potential customer. On the other hand, if more serves are provided
that reasonably necessary so that no queue or very short queue is formed, it costs more
money. Therefore, a trade-off becomes necessary in designing service facility system. This
INPUT PROCESS:-
In order to describe the input processes, a random variable such as time between successive
identically distributed. Thus knowing the probability distribution, the input process can be
described. Often the arrival of customers is completely random in nature and it is assumed
that the number of customers arriving in any time interval „t‟ follows through Poisson
distribution, with parameter t. Here, is the average number of arrivals per unit time.
There are some situations where customers arrive at fairly regular time intervals.
One variation of input process is the effect of status of queue on arrival. If a queue is
specified to be finite, a customer arriving at the queue after this is not permitted to join the
queue. Further, even if queue is not finite, a customer, seeing a long queue ahead of him
might not join the queue. This is called balking. It may also happen that customer having
joined the queue earlier might leave it with or without any intention of returning. This is
called reneging. It is pertinent to queue discipline.
So, probability of one arrival = 1 - (1-T) = T
Let us note that if the density of inter arrival is exponential, the density g(y) of the total
arrival time y for ant n consecutive arrivals is given by,
g(y) = (y)n-1 e-ny / (n-1)!; y 0
and probability of n arrivals in time interval, T = (T)n e - T/n!
Thus, assumption of exponential distribution of inter arrival times is equivalent to
assuming Poisson distribution for probability distribution of n arrivals in interval T.
Expectation, E (n/T) = T
Variance, 2 (n/T) = T
Instead of exponential distribution of inter arrival time, Erlang distribution of order n can be
used. This is,
f(t) = (n) (nt) (n-1) e - nt/(n-1)!; t 0
Expectation, E(t) = 1 /
Variance, 2(t) = 1/n2 (Erlang)
SERVICE TIMES
Assuming that one customer is served by one server at a time, and service time for one
Let g(t) = probability density function of time t required to serve one customer. Then mean
time of service = 0∞ e-t g(t) dt = 1 /
where is mean service rate or number of customers served per unit time. Let us assume
exponential (negative) distribution fro service time. Then,
g (t) = e-t; t 0
probability that service is not completed in time interval T = e-t for small values of T,
it is approximately.
Probability of the event that service is complete in time interval T = 1 - T and the
probability of the event that service is completed in time interval T = T
QUENUE DISCIPLINE
Queue discipline describes the policy of serving the service-seekers of a queue. Normally
ITERARRIVAL TIMES:-
It is necessary to specify the probability distribution of inter arrival times. Considering f(t)
as the density function for the time interval t between any two consecutive arrivals, when t
0.
Meantime between two consecutive arrivals = 0∞ f(t) t dt
So, 1/ = 0∞ f(t) t dt
It arrival is assumed completely random; the density function of inter arrival time can be
described by negative exponential distribution.
i.e., f(t) = e-/t, t0.
Now, let A be the event that there is no arrival in the interval (O, T). The probability that
there is no arrival in the interval (O, T) and no arrival in (O, T+T) is given by
∞
P(AB) = T+T e-/t dt = e-(T+T)
Now, P(B/A) = P(AB)/P(A) = e-(T+T)/ e-/t = e -t
Probability of no arrival in interval T = e -t
This depends only on T.
Expanding e -t by Taylor‟s series;
Probability of no arrival in interval T = 1 + (-T)/1! + (-T)2/2! + (-T)3!
= 1-(T) + 2(T)2/2 - 3 (T)3/6
Neglecting higher terms of (T) for very small values of T, approximately probability of
no arrival T = 1T.
In any small interval of time T, as it is presumed to be sufficiently small to permit only
one arrival at the most, only two mutually exclusive and collectively exhaustive events can
occur i.e. either there is one arrival or there is no arrival.
P [no arrival in any interval T ] + P [only one arrival in interval T] =1
KENDALL‟S NOTATIONS
Kendall‟s notations are to specify queuing models in standardized symbols, which mainly
relate to inter arrival time and service time distribution and number of serves in the system
as
One arrival and no departure in time interval T, T+T with n-1 customers at time T.
Neither arrival nor departure during time interval T, T+T with n customers at time T.
One departure and no arrival during time interval T, T+T with n+1 customers at time
T.
One arrival and one departure during time interval T, T+T with n u
Therefore, the balance equation can be set out as under:
Pn(T+T) = (Probability of 1 Arrive in T)(Probability to no departure inT)Pn-1(T) +
(Probability of no arrival in T) (Probability of no departure in T) Pn(T) +
(Probability of no arrival in T)(Probability to one departure in T)Pn+1(T) +
(Probability of 1 Arrive in T)(Probability to one departure in T) Pn(T)
Making use of relations,
Pn(T+T) = (T)(1-T) Pn-1(T) + (1-T)(1-T) Pn (T) + (1-T) T Pn+1(T)
EXPERIMENT.NO: 10
REPLACEMENT THEORY
INTRODUCTION
Any engineering equipment has to give production service. While doing that, it
essentially needs operation cost. Its operational economy is rated through amount of
production or service per unit cost. With usage and years, equipment undergoes wear
and tear, needs progressively more maintenance, goes down in production or service
and requires frequent repairs. This involves additional cost, which in general increases
with years. Therefore, at some stage one intuitively feels, the existing equipment has to
be replaced by new similar or technologically better equipment. This is “Replacement
Problem” and it seeks to answer „when to replace‟ and „with what?‟ The answers to
these questions can be had with “Replacement Theory”.
The management considers to make it a practice to replace all in a group at one time, then
replace individual bulb as and when it fails, and after „fixed interval‟ of time. It is given that
each bulb, when replaced in a group, costs Rs. 5, but when replaced individually on failure
costs Rs. 20.
Obviously, the criterion for optimization if the cost of the period. The period at the end of
which minimum „average cost per period‟ is obtained, that will be „the fixed interval‟ or
time for group management.
Age-wise failure Probability is as under:
0-1 period 0.09
1-2 period 0.20 – 0.09 = 0.11
2-3 period 0.33 – 0.20 = 0.13
3-4 period 0.51 – 0.33 = 0.18
4-5 period 0.77 – 0.51 = 0.26
5-6 period 0.90 – 0.77 = 0.13
6-7 period 1.00 – 0.90 = 0.10
Let nk be the number of replacement at the end of kth period.
PROBLEM
Two functionally identical machine tools P and Q are available in the market. There is no
market for machines even one-year old and when eventually disposed off as scrap it fetches
insignificant amount.
Price of machine tool P is Rs. 12,000. Its operation, maintenance and repair cost is Rs. 400
in the first year, progressively increasing by Rs. 100 in next two years, then by Rs. 200 in
next two years and finally by Rs. 300, 400, 600, 800 in subsequent years.
Price of machine tool Q is Rs. 12,000. Its operation, maintenance and repair cost is Rs. 200,
350, 550, 750, 1000, 1300, 1800, 2400, 3000 from year to year.
(a) If worth of money remains constant, which is a better choice, P or Q? And in that case,
what should be the replacement policy?
(b) If worth of money increases by 10% every year, which is a better choice, P or Q? And
in that case, what should be the replacement policy?
(c) If Q is offered for purchase, through interest-subsidized scheme by State Finance
Corporation, to the extent of 5%, what should be the replacement policy? State the
assumptions you make.
SOLUTION
It is assumed that running costs – operation, maintenance and repairs including downtime
costs – are increased at the beginning of each concerned year.
Table – 1
Machine Tool – P
C = 12000, K = 0, r = 1 / (1+K) = 1
(b) When change in money worth is taken into account, r = 1 / (1.10). The weighted average
of annual cost, is tabulated in Table – 3 for machine tool P, and in Table – 4 for
machine tool Q.
Table – 3
Machine Tool – P
C = 12000, K = 0.10, r= 1 / 1.10
Year mi ri-1 miri-1 miri-1 ri-1 C+ miri-1
i ri-1
1 400 1.000 400 400 1.000 13200
2 500 0.909 455 855 1.909 7081
3 600 0.826 496 1351 2.735 5109
4 800 0.751 601 1925 3.486 4168
5 1000 0.683 683 2635 4.169 3650
6 1300 0.621 807 3442 4.79 3568
7 1700 0.565 961 4403 5.355 3172
8 2300 0.513 1180 5583 5.868 3104
9 3100 0.466 1445 7028 6.334 3096
Table – 4
Machine Tool – Q
C = 13000, K = 0.10, r= 1 / (1.10)
Year mi ri-1 miri-1 miri-1 ri-1 C+ miri-1
i ri-1
1 200 1.000 200 200 1.000 13200
2 350 0.909 318 518 1.909 7081
3 550 0.826 454 972 2.735 5109
4 750 0.751 63 1535 3.486 4168
5 1000 0.683 683 2218 4.169 3650
6 1300 0.621 807 3025 4.790 3568
7 1800 0.565 961 3986 5.355 3172
8 2400 0.513 1231 5217 5.868 3104
9 3000 0.466 1398 6615 6.664 3096
For machine too P, least value of is Rs. 2996, whereas for machine tool Q this value
does not appear in the range of data given. However, the least value for Q as available is
Rs. 3096. Therefore, P is better choice with replacement at the end of 8th year.
(c) When interest for machine tool Q is subsidized, r = 1 / (1 + 0.05) and the value of are
tabulated in Table – 5. Comparing the least value of Rs. 2873 with the least value of D
for P in Table – 3 i.e. Rs. 296, it can be concluded that the machine tool Q is better
choice, with replacement at the end of 8th year.
Table – 5
Machine Tool – Q
C = 13000, K = 0.05, r= 1 / (1.05)
Year mi ri-1 miri-1 miri-1 ri-1 C+ miri-1
i ri-1
1 200 1.000 200 200 1.000 13200
2 350 0.952 333 533 1.925 6933
3 550 0.907 499 1032 2.859 4911
4 750 0.864 648 1680 3.723 3945
5 1000 0.823 823 2503 4.546 3411
6 1300 0.784 1019 3522 5.330 3101
7 1800 0.746 1268 4790 6.076 2929
8 2400 0.711 1706 6496 6.787 2873
9 3000 0.677 2031 8527 7.464 2884
EXPERIMENT.NO: 11
SEQUENCING PROBLEM :-
The problem of sequencing falls within the realm of heuristic methods. Sequencing
problems encompasses those scheduling problems in which objective function or
sequence for processing set of jobs or activity to be undertaken on given facility in a
defined technological order. Sequence is a very important function in production
planning and control. This chapter will concentrate machine to perform operation on the
job which have unique design futures and have resulted from a specific customer order.
In order to describe a specific case of job shop scheduling problem we want to study for
4 factors which are
1. the job arrival . if „n‟ jobs arrive at a time in a shop where „m‟ facilities on
which they are to be processed are idle and available . the problem is called
as static problem. The problem will be known as dynamic problem if jobs
arrive at random with some stock tic process.
2. number of machines „m‟ that are in the job shops.
3. the flow process for „n‟ jobs through „m, machines.
4. the measure of performance to be optimized which plays a decisive roll in
job shop schedule problem.
Gantt chart is a most simple and widely expected representation of scheduling are
shown along vertical axes and operations time along horizontal axis. Each operation
on various resources (facility over machines) is represented by a horizontal bar.
Since the chart breaks down resources allocation by time. It gives a display of max
span. Job waiting chart breaks down resources allocation by time it gives a display
ASSIGNMENTS
LP FORMULATION – ASSIGNMENT
1. A small manufacturer employs five skilled men and ten semi skilled men for making a
product in two qualities: a deluxe model and an ordinary model. The production of a
deluxe model requires 2-hours work by a skilled man and a 2-hour work by a semi
skilled man. The ordinary model requires 1-hour work by a skilled man and a 3-hours
work by a semi skilled man. According to worker union‟s rules, no man can work more
than 8-hours per day. The profit of the deluxe model is Rs.1000 per unit and that of the
ordinary model is Rs.800 per unit. Formulate a linear programming model for this
manufacturing situation to determine the production volume of each model such that the
total profit is maximized.
2. A firm manufactures three products A, B & C. Their profits per unit are Rs.300, Rs.200
and Rs.400, respectively. The firm has two machines and the required processing time
in minutes on each machine for each product is given in the following table:
Product
A B C
Machine 1 4 3 5
Machine 2 2 2 4
Machines 1 and 2 have 2000 and 2500 machine minute, respectively. The upper
limits for the production volumes of the product A, B & C are 100 units, 200 units and
50 units, respectively. But, the firm must produce a minimum of 50 units of the product
A. Develop a LP model for this manufacturing situation to determine the production
volume of each product such that the total profit is maximized.
3. The manager of an oil refinery has to decide on the optimal mix of two possible blending processes. The inputs and the outputs per
production run of the blending process are as follows:
Input Output
Process Crude A Crude B Gasoline G1 Gasoline G2
1 5 3 5 8
2 4 5 4 4
The maximum amounts of availability of crude A and crude B are 200 units and 150
units, respectively. Market requirements show that at least 100 units of Gasoline G1
and 80 units of Gasoline G2 must be produced. The profits per production run from
process 1 and process 2 are Rs.3 lacs and Rs. 4 lacs respectively. Formulate this
problem as a LP model to determine the number of production runs of each process
such that the total profit is maximized.
1. Minimize Z=2x+9y-4z
Subject to 2x+3y+4z 16
x+6y-4z16
x,y, z >0 [S1=8, y=8/3,Z=24]
2. Maximize z=4x+5y
Subject to 2x+3y8
3x+y4
x,y0
Use big M method. [S2=8, x=4, z=16]
3. Maximize Z=6x+10y+8z
Subject to 2x+3y8
2y+5z10
3x+2y+4z15
x,y,z0 [y=750/41, z=930/41, x=89/41, Z=212.78]
4. Maximize Z=40x+30y
Subject to 3x+2y300
x+y80
2x+y200
3x+4y300
x60
y60
x,y0 [S1=80, y=20, S3=60, S4=40, x=60, S6=40, Z=3000]
5. Minimize Z=20x1+10x2
Subject to x1+2x240
3x1+x2=30
4x1+3x260
x1,x 20
Use (i) Big „M‟ Method.
(ii) Two – Phase Method [x1=6, x2=12, S1=10, Z=240]
6. Solve the following problem:
Maximize Z= -x1-4x2-3x3
Subject to 2x1+x2+3x34
x1+2x2+2x33SS
x1, x2 0 and x3 is unrestricted in sign. [Problem is infeasible]
1. Shri Rajendra Desai has booked orders for product A and product B at the sales
price of Rs. 6 and Rs. 8 per unit respectively, for M/S supreme Engineers with the
condition that materials cost will be borne by the company i.e. M/S Supreme
Engineers. Shri Desai negotiates the terms with the Kartik Engineering, a job order
shop, which can offer machines of type x for 60 hours per week and machines of
type y for 100 hours per week at hourly rates. Each machine can produce product A
and B in any combination.
Machine-hours of type x are available with the operators of the Kartik Engineering only
and the rates are Rs. 4 per machine-cum-operator-hour. Machines of type y are
available with two alternative offers viz. Desai can either hire the machines alone at the
rate of Rs. 1/machine hour as well as operator at the rate of Rs. 3 per hour or Desai can
hire his own operator for machines y at the rate of Rs. 3 per hour. The production rates
are given in the Exhibit A.
X2 / X1 1.6 / 1
X1, X2 0
X1 = 765/91, X2 = 1055/91, S2 = 107/260, Z = 2.5797]
3. The following data is available for two products.
Material cost is same for both the products and is Rs. 5 per unit. Selling price Rs.
Per unit for product one is 25 and that of product two is 31. Solve the problem for
optimal product mix.
[X1 = 1250, X2 = 800, X3 =0, Z = 9450]
4. A plant can produce three products, A, B and C, Product A needs 4 hours of
department 2 and one hour of department 3. Product B needs two hours of
department 1 and two hours of department 2, while product C needs two hours of
department 1 and two hours of department 3. Their respective profit coefficients in
Rs. Per unit are 50, 40, and 55. Hours available per month with department 1, 2, and
3 are 1000, 1000, and 800 respectively.
A purchased part is used in assembly of product A and C. Only 4000 parts are
available for the month. Two such parts are used in each piece of product A and
three parts in each piece of product C. There is a sales commitment of 200 units of
product A. Find the optimal product mix.
Problem: 2
Use dual simplex method to solve the following
Minimize Z = 2x + 3y
Subject to 3x + 4y 5
4x + 5y 7
x + 2y 4
x,y0
[S1 = ¼, X= 7/4, S3 =9/4, Z = 7/2]
Problem: 3
The following tableau gives an optional solution to a standard linear programme:
Maximize Z = CX.
Subject to AX = B, X 0
Tableau 5 7 -4 0 0
X1 X2 X3 S1 S2
7 x2 x3 ¾ 1 -1/4 ¼ 0
0 s2 ½ ¼ 0 -3/4 -5/4 1
(zj – cj) 7/2 ¼ 0 9/4 7/4 0
QUEING THEORY
1. The Bombay Shoe Company has found that it purchases a large amount of industrial
tapes for production of its shoes. Currently, it purchases Rs.10,00,000 a year of the
various sized tapes from the local manufactures. A proposal was made by its
supplier, was offer consist of 1.25% discount if BSC places an order quarterly BSC
has calculated the cost to purchase at Rs.22.5 per order. Rs.20 per tape & inventory
carrying costs at 18%. Should BSC accept discount offer from its supplier? If not,
what alternate offer should be made in term of a discount?
2. The Himavan manufacturing company wishes to determine the most economy
quantity for one of its products. Manufacturing cost amount to Rs.15 per unit. The
production is 5000 units per annum. Each lot now requires a set-up cost of Rs.25
and the inventory cost of 25% of the average inventory value. What is the most
economic lot size to manufacturers? What is the corresponding total yearly cost?
3. Demand for a certain part order by Shah brothers tends to be constant at the monthly
rate of 1000 units. The per unit carrying cost of this item is Rs.25 per year, & cost of
placing an order is Rs.75.
i) What is the optimal order size? How often should an order be placed?
ii) Show that the annual holding cost & ordering cost are equal when an
optimal order size is used. What is the total relevant cost?
iii) If the company wants to order only one every other week, by what
percentage would this increase the total relevant cost?
4. The Calcutta Tool Company can manufacture a certain type of tool at the rate of
1480 per run, the demand for this tool is quite steady at annual rate of 9000 units.
Unit cost of the tool is Rs.30, an set up cost per production run is Rs.500. The
annual cost per unit sort is Rs.20. The company has determined the optimal
production lot size to be 3000 units.
i) What is the annual inventory holding cost, expressed as percentage of
unit cost?
ii) What is the total relevant cost & the max. inventory level?
5. Let C1=50(Rs.), Cs=20C1, & the demand distribution is as under:
r 0 1 2 3 4 5 6
P(r) 0.9 0.05 0.02 0.01 0.01 0.01 0
What is the optimum quantity to be ordered?
5. Assume that demand during a certain time interval T is random with P( r ) being the
probability that the total demand is r during interval T. The demand rate is constant
during the interval T.
C1=10(Rs.), C2=20C1 and the demand distribution is as under:
r 0 1 2 3 4 5 6
P(r) 0.1 0.2 0.2 0.3 0.1 0.1 0
What should be the initial inventory level?
1 2 3 1 2 3
1 1 7 2 A 1 5 7 9
A 2 6 2 7 2 4 8 11
3 6 1 6
(iii) (iv)
B B
1 2 3 1 2 3
A 1 -1 6 4 1 4 7 9
2 5 -3 -6 A 2 11 6 10
6 3 5 6 9
(v) (vi)
B B
1 2 3 1 2 3 4
1 -5 10 20 1 3 -1 1 2
A 2 5 -10 -10 A 2 -2 3 2 3
3 5 -20 -20 3 2 -2 -1 1
(vii) (viii)
B B
1 2 3 4 1 2 3 4
1 4 10 11 14 1 -1 -3 5 4
2 15 5 13 18 A 2 -3 4 -3 -2
A 3 4 9 6 10 3 -3 -2 4 3
4 17 12 10 7
5 14 18 17 8
6 11 14 15 9
TRANSPORTATION
Problem: Find the initial basic feasible solution of the following transportation problem by
Vogel‟s approximation method:
Warehouses
W1 W2 W3 W4 Capacity
F1 10 30 50 10 7
F2 70 30 40 60 9
F3 40 8 70 20 18
Requirement 5 8 7 14 34
Problem: A company has received a contract to supply gravel for three new construction
projects located in towns A, B and C. Construction engineers have estimated the required
amounts of gravel which will be needed at these construction projects as shown below:
A 72
B 102
C 41
The company has three gravel plants X, Y and Z located in three different towns.
The gravel required by the construction projects can be supplied by these three plants. The
amount of gravel which can be supplied by each plant is as follows:
X 76
Y 62
Z 77
The company has computed the delivery cost from each plant to each project site.
These costs (in rupees) are shown in the following table:
Cost per load
A B C
X 4 8 8
Plant Y 16 24 16
Z 8 16 35
(a) Schedule the shipment from each plant to each project in such a manner so as to
minimize the total transportation cost within the constraints imposed by plant
capacities and project requirements.
(b) Find the minimum cost.
(c) Is the solution unique? If it is not, find alternative schedule with the same minimum
cost.
ASSIGNMENT
Problem: Solve the following assignment problem using Hungerian method. The matrix
entries are processing times in hours.
Operator
1 2 3 4 5
1 20 22 35 22 18
2 4 26 24 24 7
Job 3 23 14 17 19 19
4 17 15 16 18 15
5 16 19 21 19 25
Problem: Consider the problem of assigning four sales persons to four different sales
regions as shown below such that the total sales is maximized.
Sales region
1 2 3 4
1 5 11 8 9
2 5 7 9 7
Salesman 3 7 8 9 9
4 6 8 11 12
The cell entries represent annual sales figures in crores of rupees. Find the optimal
allocation of the sales persons to different regions.
Problem: The flight timings between two cities, X and Y are as given in the following two
tables. The minimum layover time of any crew in either of the cities is 3 hours. Determine
the base city for each crew so that the sum of the layover times of all the crews in non-base
cities is minimized.
NETWORK PROBLEMS:
1-2 8 3-6 6
1-3 5 4-5 8
1-4 7 4-6 12
1-5 16 5-8 7
2-3 15 6-8 9
2-6 3 6-9 15
2-7 4 7-9 12
3-4 5 8-9 6
Arc Distance
1-2 3
1-3 8
1-4 10
2-3 4
2-4 7
3-4 2
3-5 8
3-6 6
Problem: For the network shown in the Figure activity, resource requirements are given in
the table. Solve the problem for resource allocation. There are two cranes and 8 welders
available for the project.
3
B C
A D E
1 2 4 A
6
F
5
Figure
Table
Activity A B C D E F
Duration
10 10 8 14 3 9
Days
Resources 2 8 6 1
- -
Required Cranes Welders Welders Crane
Problem: The critical path network analysis is given in Figure. The activity times are also
given for each activity. Determine the critical path and critical path time. Also determine
the floats for each activity.
Figure 3
9
12
4
3 8
8 12
1 2 6
7 4
5
10
2
5 A
7