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Master OF Business Administration: Second Semester
Master OF Business Administration: Second Semester
Second Semester
Operations Research - (MB0048) Assignment (60 Marks)
: : : :
a. Deterministic model in which everything is defined and the results are certain, such as an EOQ model. b. Probabilistic Models in which the input and output variables follow a defined probability distribution, such as the Games Theory. D. By the extent of Generality Models can be further classified as follows: a. General Models are the models which you can apply in general to any problem. For example: Linear programming. b. Specific Models on the other hand are models that you can apply only under specific conditions. For example: You can use the sales response curve or equation as a function of only in the marketing function.
Q2. Write dual of Max Z= 4X1+5X2 Subject to 3X1+X215 X1+2X210 5X1+2X220 X1, X20
Sol: Min W = 15Y1 + 10Y2 + 20Y3 Subject to 3Y1 + Y2 + 5Y3 4 Y1 + 2Y2 + 2Y3 5 Y 1, Y 2, Y 3 0
Since the number of rows are less than number of columns, adding a dummy row and applying Hungarian method, Row reduction matrix Operations O1 O2 O3 O4 M1 10 9 15 0 M2 15 10 16 0 M3 12 9 16 0 M4 11 12 17 0
[0 ] x
1
M2 5 1
M3 2
M4 1 3
[0 ] x
[0 ] x x
x [0 ]
O4 M4 00 ------------------------TOTAL 35 Therefore, the optimum assignment schedule is O1 M1, O2 M3, O3 M2 AND O4 M4.
Saddle point
In a two-person zero-sum game, if the maximin and the minimax are equal, the game has saddle point. Saddle point is the position where the maximin (maximum of the row minimums) and minimax (minimum of the column maximums) coincide. If the maximin occurs in the rth row and if the minimax occurs in the sth column, the position (r, s) is the saddle point. Here, v = ars is the common value of the maximin and the minimax. It is called the value of the game. The value of a game is the expected gain of player A, when both the players adopt optimal strategy. Note: If a game has saddle point, (r, s), the players strategy is pure strategy.
B. transportation
Maximize or Minimize: Z = c1X1 + c2X2 + --- +cnXn Subject to the constraints, a11X1 + a12X2 + --- + a1nXn ~ b1 a21X1 + a22X2 + --- + a2nXn ~ b2 am1X1 + am2xX2 + --- + amnXn ~ bm and X1, X2, .., Xn 0 Where, cj, bi and aij (i = 1, 2, 3, .. m, j = 1, 2, 3 ------- n) are constants determined from the technology of the problem and Xj (j = 1, 2, 3 ---- n) are the decision variables. Here ~ is either (less than), (greater than) or = (equal). Note that, in terms of the above formulation the coefficients cj, bi and aij are interpreted physically as follows. If bi is the available amount of resources i, where aij is the amount of resource i that must be allocated to each unit of activity j, the worth per unit of activity is equal to cj.
Transportation
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 minimization 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. It is assumed that the total supply and the total demand are equal.
m
i=1 ai = nj=1 bj
(1)
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 to Minimize Z = Subject to
m m
With all XIJ 0 A necessary and sufficient condition for the existence of a feasible solution to the transportation problem (2) is:
m
i=1 ai = nj=1 bj