MBA SEMESTER 2 MB0048 Operations Research- 4 Credits (Book ID: B1137) Assignment Set- 2 (60 Marks)

Note: Each question carries 10 Marks. Answer all the questions 1. Explain how to transform an unbalanced transportation problem into a balanced transportation problem where the demand of warehouses is satisfied by the supply of factories. 2. Explain how the profit maximization transportation problem into a balanced transportation problem where the demand of warehouses is satisfied by the supply of factories. 3. Illustrate graphically the following special cases of Linear programming problems: i) Multiple optimal solutions, ii) No feasible solution, iii) Unbounded problem 4. How would you deal with the Assignment problems, where a) the objective function is to be maximized? b) Some Assignments are prohibited? 5. Simulation is an especially valuable tool in a situation where the mathematics needed to describe a system realistically is too complex to yield analytical solutions. Elucidate. 6. Describe Gomorys method of solving an all-integer programming problem.

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Q.1.Explain how to transform an unbalanced transportation problem into a balanced transportation problem where the demand of warehouses is satisfied by the supply of factories
Ans:Unbalanced T.P is shown that a basic solution to an m-origin, n destination; transportation problem can have at the most m+n-1 positive basic variables (non-zero), otherwise the basic solution degenerates. It follows that whenever the number of basic cells is less than m + n 1, the transportation problem is a degenerate one. The degeneracy can develop in two ways: Case 1: The degeneracy develops while determining an initial assignment via any one of the initial assignment methods discussed earlier. To resolve degeneracy, you must augment the positive variables by as many zerovalued variables as is necessary to complete the required m + n 1 basic variable. These zero-valued variables are selected in such a manner that the resulting m + n 1 variable constitutes a basic solution. The selected zero valued variables are designated by allocating an extremely small positive value to each one of them. The cells containing these extremely small allocations are then treated like any other basic cells. The s are kept in the transportation table until temporary degeneracy is removed or until the optimum solution is attained, whichever occurs first. At that point, we set each = 0. Case 2: The degeneracy develops at the iteration stage. This happens when the selection of the entering variable results in the simultaneous drive to zero of two or more current (pre-iteration) basic variables. To resolve degeneracy, the positive variables are augmented by as many zero-valued variables as it is necessary to complete m+n-1 basic variables. These zero-valued variables are selected from among those current basic variables, which are simultaneously driven to zero. The rest of the procedure is exactly the same as discussed above in case 1. Note: The extremely small value is infinitely small and it never affects the value it is in unallocated minimum cost cell to avoid forming a loop.

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The transportation problem is a special type of linear programming problem in which the objective is to transport a homogeneous product manufactured at several plants (origins) to a number of different destinations at a minimum total cost. In this unit, you have learnt several different techniques for computing an initial basic feasible solution to a transportation problem, such as north-west corner rule, matrix minimum method and Vogels approximation method. Further, you studied the degeneracy in transportation problem with examples on obtaining an optimum basic feasible solution Transportation model is an important class of linear programs. For a given supply at each source and a given demand at each destination, the model studies the minimisation of the cost of transporting a commodity from a number of sources to several destinations. The transportation problem involves m sources, each of which has available ai (i = 1, 2 m) units of homogeneous product and n destinations, each of which requires bj (j = 1, 2., n) units of products. Here ai and bj are positive integers. The cost cij of transporting one unit of the product from the ith source to the jth destination is given for each i and j. The objective is to develop an integral transportation schedule that meets all demands from the inventory at a minimum total transportation cost. The condition (1) is guaranteed by creating either a fictitious destination with a demand equal to the surplus if total demand is less than the total supply or a (dummy) source with a supply equal to the shortage if total demand exceeds total supply. The cost of transportation from the fictitious destination to all sources and from all destinations to the fictitious sources are assumed to be zero so that total cost of transportation will remain the same. The standard mathematical model for the transportation problem is as follows. Let xij be number of units of the homogenous product to be transported from source i to the destination j Then objective is toThe first approximation to (2) is integral. Therefore, you always need to find a feasible solution. Rather than determining a first approximation by a direct application of the simplex method, it is more efficient to work with the transportation table given below. The transportation algorithm is the simplex method specialised to the format of table involving the following steps:

i) Finding an integral basic feasible solution

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ii) Testing the solution for optimality

iii) Improving the solution, when it is not optimal

iv) Repeating steps (ii) and (iii) until the optimal solution is obtained The solution to TP is obtained in two stages. In the first stage, you find the basic feasible solution using any of the following methods a) North-west corner rule b) Matrix Minima Method or least cost method c) Vogels approximation method. In the second stage, you test the basic feasible solution for its optimality either by MODI method or by stepping stone method.

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Q.2. Explain how the profit maximization transportation problem into a balanced transportation problem where the demand of warehouses is satisfied by the supply of factories
Ans:Some assignment problems are phrased in terms of maximising the profit or effectiveness or payoff of an assignment of people to tasks or of jobs to machines. You cannot apply the Hungarian method to such maximisation problems. Therefore, you need to reduce it to a minimisation problem. It is easy to obtain an equivalent minimisation problem by converting every number in the table to an opportunity loss. To do so, you need to subtract every value from the highest value of the matrix and then proceed as usual You will notice that minimising the opportunity loss produces the same assignment solution as the original maximisation problem. A tailoring unit has four sewing machines of different makes. Each machine is capable of stitching all the required designs and patterns. However, the profit factor differs for each assignment. The unit is looking at maximising profit. To do so, the unit needs to carry out an optimal assignment exercise of assigning the right jobs to the right machines. This unit on assignment problems focuses on a special type of transportation problem, where the objective is to allocate n number of different facilities to n number of different tasks. Although an assignment problem can be formulated as a linear programming problem, it is solved by a special method know as Hungarian method. If the number of persons is the same as the number of jobs, the assignment problem is said to be balanced. The unit also explains the travelling salesman problem in brief.

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Q.3 Illustrate graphically the following special cases of Linear programming problems

Q.3.a. Multiple optimal solutions Ans:-

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Q.3 (B):- No Feasible solution

Ans:-

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Q.3.C. Unbounded problem Ans:-

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Q.4.A. the objective function is to be maximized?

Ans:Maximisation in AP Some assignment problems are phrased in terms of maximising the profit or effectiveness or payoff of an assignment of people to tasks or of jobs to machines. You cannot apply the Hungarian method to such maximisation problems. Therefore, you need to reduce it to a minimisation problem. It is easy to obtain an equivalent minimisation problem by converting every number in the table to an opportunity loss. To do so, you need to subtract every value from the highest value of the matrix and then proceed as usual You will notice that minimising the opportunity loss produces the same assignment solution as the original maximisation problem.where the objective is to allocate n number of different facilities to n number of different tasks. Although an assignment problem can be formulated as a linear programming problem, it is solved by a special method know as Hungarian method. If the number of persons is the same as the number of jobs, the assignment problem is said to be balanced. The unit also explains the travelling salesman problem in brief.

Q4.B. Some Assignments are prohibited?

Ans:-

Infeasible assignments It is sometimes possible that a particular person is incapable of doing certain work or a specific a specific job cannot be performed on a particular machine. The solution of the assignment problem should take into account these restrictions so that the infeasible assignment can be avoided. This can be achieved by assigning a very high cost (say or M) to the cells where assignments are prohibited, thereby, restricting the entry of this pair of job machine or resource activity into the final solution. the problem.

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Q.5.Simulation is an especially valuable tool in a situation where the mathematics needed to describe a system realistically is too complex to yield analytical solutions. Elucidate
Ans:Simulation is also called experimentation in the management laboratory. While dealing with business problems, simulation is often referred to as Monte Carlo Analysis. Two American mathematicians, Von Neumann and Ulan, in the late 1940s found a problem in the field of nuclear physics too complex for analytical solution and too dangerous for actual experimentation. They arrived at an approximate solution by sampling. The method they used had resemblance to the gamblers betting systems on the roulette table, hence the name Monte Carlo has stuck. Imagine a betting game where the stakes are based on correct prediction of the number of heads, which occur when five coins are tossed. If it were only a question of one coin; most people know that there is an equal likelihood of a head or a tail occurring, that is the probability of a head is . However, without the application of probability theory, it would be difficult to predict the chances of getting various numbers of heads, when five coins are tossed. Why dont you take five coins and toss them repeatedly. Note down the outcomes of each toss after every ten tosses, approximate the probabilities of various outcomes. As you know, the values of these probabilities will initially fluctuate, but they would tend to stabilise as the number of tosses are increased. This approach in effect is a method of sampling, but is not very convenient. Instead of actually tossing the coins, you can conduct the experiment using random numbers. Random numbers have the property that any number is equally likely to occur, irrespective of the digit that has already occurred. The approach to solve a gambling problem can be extended to decision-making in business where risk is a common feature. The probabilities associated with the variables can be estimated on the basis of availability of previous data or by inputting subjective values.

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In any simulation problem, the variables to be studied will be given with associated probabilities. The initial conditions will also be specified. You can choose random numbers from table. However, to get uniform results, the random numbers will be specified. The first step involves coding the data that is, you assign random numbers to the variable. Then you identify the relationship between the variables and run the simulation to get the results The range of application of simulation in business is extremely wide. Unlike other mathematical models, simulation can be easily understood by the users and thereby facilitates their active involvement. This makes the results more reliable and also ensures easy acceptance for implementation. The degree to which a simulation model can be made close to reality is dependent upon the ingenuity of the OR team who identifies the relevant variables as well as their behaviour. You have already seen by means of an example how simulation could be used in a queuing system. It can also be employed for a wide variety of problems encountered in production systems the policy for optimal maintenance in terms of frequency of replacement of spares or preventive maintenance, number of maintenance crews, number of equipment for handling materials, job shop scheduling, routing problems, stock control and so forth. The other areas of application include dock facilities, facilities at airports to minimise congestion, hospital appointment systems and even management games. In case of other OR models, simulation helps the manager to strike a balance between opposing costs of providing facilities (usually meaning long term commitment of funds) and the opportunity and costs of not providing them. Limitations The simulation approach is recognised as a powerful tool for management decisionmaking. One should not ignore the cost associated with a simulation study for data collection, formation of the model and the computer time as it is fairly significant A simulation application is based on the premise that the behaviour pattern of relevant variables is known, and this very premise sometimes becomes questionable. Not always can the probabilities be estimated with ease or desired reliability. The results of simulation should always be compared with solutions obtained by other methods wherever possible, and tempered with managerial judgment.

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Q.6. Describe Gomorys method of solving an all-integer programming problem.

Ans:Gomorys All IPP Method An optimum solution to an IPP is obtained by using the simplex method, ignoring the restriction of integral values. In the optimum solution, if all the variables have integer values, the current solution will be the required optimum integer solution. Otherwise, the given IPP is modified by inserting a new constraint called Gomorys constraint or secondary constraint. This constraint represents necessary conditions for integrability and eliminates some non-integer solution without losing any integral solution. On addition of the secondary constraint, the problem is solved using dual simplex method to obtain an optimum integral solution. If all the values of the variables in the solution are integers, then an optimum intersolution is obtained, or else a new constraint is added to the modified LPP and the procedure is repeated till the optimum solution is derived. An optimum integer solution will be reached eventually after introducing enough new constraints to eliminate all the superior non-integer solutions. The construction of additional constraints, called secondary or Gomorys constraints is important and needs special attention. Construction of Gomorys constraints Consider a LPP or an optimum noninteger basic feasible solution. With the usual notations, The optimum basic feasible solution is given by xB = [x2, x3 ] = [y10, y20]; max z = y00 Since xB is a non-integer solution, we can assume that y10 is fractional. The constraint equation is It reduces to y10 = y11 x1 + x2 + y14 x4 _____ (1) Because x2 and x3 are basic variables (which implies that y12 = 1 and y13 = 0). The above equation can be rewritten as x2 = y10 - y11 x1 - y14 x4

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This is a linear combination of non-basic variables. Now, since y10 0 the fractional part of y10 must also be non-negative. You can split each of yij in (1) into an integral part Iij , and a non-negative fractional part, f1j for j = 0,1,2,3,4. I10 + f10 = (I11 + f11) x2 + (I14 + f14) x4 Or f10 - f11 x2 - f14 x4 = x2 + I11 x1 + I14x4 - I10 _____ (2) If you compare (1) and (2), you will see that if you add an additional constraint in such a way that the left-hand side of (2) is an integer; then you will be forcing the noninteger y10 towards an integer. The desired Gomorys constraint is f10 f11 x1 f11 x4 0 It is possible to have f10 f11 x1 f11 x4 = h where h > 0 is an integer. Then f10 = h + f11 x1 + f14 x4 is greater than one. This contradicts that 0 < fij < 1 for j = 0, 1, 2, 3, 4. Where Gsla (1) is a slack variable in the above first Gomorys constraint The additional constraint to be included in the given LPP is towards obtaining an optimum all integer solution. Since f10 is negative, the optimal solution is unfeasible. Thus the dual simplex method is to be applied for obtaining an optimum feasible solution. After obtaining this solution, the above referred procedure is applied for constructing second Gomorys constraint. The process is to be continued till all the integer solution has been obtained. One is the cutting plane algorithm devised by Gomory and the other is the branch and bound algorithm developed by Land Doig.

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