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SMU Assignment Solve Operation Research Fall 2011
SMU Assignment Solve Operation Research Fall 2011
RESEARCH PHASE
ACTION PHASE
4. Cost (Cj) of slack and surplus variables will be zero and that of artificial variable will be M
5. Find Zj - Cj for each variable.
6. Slack and artificial variables will form basic variable for the first simplex table. Surplus variable will never
become basic variable for the first simplex table.
7. Zj = sum of [cost of variable x its coefficients in the constraints Profit or cost coefficient of the variable].
8. Select the most negative value of Zj - Cj. That column is called key column. The variable corresponding to the
column will become basic variable for the next table.
9. Divide the quantities by the corresponding values of the key column to get ratios; select the minimum ratio.
This becomes the key row. The basic variable corresponding to this row will be replaced by the variable found
in step 6.
10. The element that lies both on key column and key row is called Pivotal element.
11. Ratios with negative and value are not considered for determining key row.
12. Once an artificial variable is removed as basic variable, its column will be deleted from next iteration.
13. For maximization problems, decision variables coefficient will be same as in the objective function. For
minimization problems, decision variables coefficients will have opposite signs as compared to objective
function.
14. Values of artificial variables will always is M for both maximization and minimization problems.
15. The process is continued till all Zj - Cj >= 0
b. Use of artificial variables in L.P
Consider a LPP given in the standard form
To optimize z = c1 x1 + c2 x2 + ---+ cn xn
Subject to
a11 x1 + a12 x2 + -- + an x n S1 = b1
a21 x1 + a22 x2 + ----+ a2n xn S2 = b2
.
am1 x1 + am2 x2 + -- + amn xn Sm = bm
x1, x2, --- xn, S1, S2 ---, Sm 0.
To each of the constraint equations, add a new variable called an artificial variable on the left hand side of every
equation which does not contain a slack variable. Subsequently every constraint equation will contain either a slack
variable or an artificial variable. The introduction of slack and surplus variables does not alter either the constraints or
the objective function. Therefore, you can incorporate such variables in the objective function with zero coefficients.
However, the artificial variables do change the constraints as these are added only to the left hand side of the
equations. The newly derived constraint equation is equivalent to the original equation, only if all the artificial
variables have value zero. Artificial variables are incorporated into the objective function with very large positive
coefficient M in the minimization program and very large negative coefficientM in the maximization program
guaranteeing optimal solutions. The large positive and negative coefficients represent the penalty incurred for making
a unit assignment to the artificial variable.
Thus the standard form of LPP can be given as follows:
Optimize Z = CT X
Subject to AX = B,
And X 0
Where X is a column vector with decision, slack, surplus and artificial variables, C is the vector corresponding to the
costs; A is the coefficient matrix of the constraint equations and B is the column vector of the right hand side of the
constraint equations.
representing the profit in rupees. bi represents the number of units available of the resource i. Therefore, we can
express the equation z = w as profit (Rs) = (units of resource i) x (profit per unit of resource i)
This means that the dual variables yi, represent the worth per unit of resource i. Variables yi are also called as dual
prices, shadow prices and simplex multipliers.
With the same logic, the inequality z < w associated with any two feasible primal and dual solutions is interpreted as
(profit) < (worth of resources).
This relationship implies that as long as the total return from all the activities is less than the worth of the resources,
the corresponding primal and dual solutions are not optimal. Optimality is achieved only when the resources have
been exploited to their fullest extent, which can happen only when the input equals the output (profit). Economically,
the system is said to be unstable (non optimal) when the input (worth of the resources) exceeds the output (return).
Stability occurs only when the two quantities are equal.
b. Primal Problem and Dual Problem
To every L.P.P there corresponds another L.P.P. if the first L.P.P is called the Primal Problem then the later is called the
Dual Problem and vice-versa. Every primal problem has a unique dual problem and while solving an L.P.P by simplex
method, we are at the same time solving its dual problem as well. Let us consider the following problem:
Let x1 gms of the food X and x2 gms of food Y be purchased and the problem is to minimize the cost.
To minimize z = 20x1+30x2
Subject to 5x1+8x2>=80
6x1+10x2>=100
And x1, x2>=0
This is a primal problem. Now we may consider the problem from a different angle. Let a dealer of Vitamins A and B
required for two types of foods X and Y which is required to be produced by the customer and the dealer knows the
units of Vitamins A and B to be present in each gram of the foods. Let v1 and v2 be the sale price of each unit of
vitamins A and B respectively. Then this same problem to the dealer becomes to maximize the sale price of the
Vitamins so that the cost prices of X and Y do not exceed the given cost values. Thus in L.P.P we may express the
problem as
To maximize w=80v1+100v2
Subject to 5v1+6v2<=20
8v1+10v2<=30
v1, v2>=0
This problem is called the dual problem of the previous L.P.P and vice versa.
5. Describe the North-West Corner rule for finding the initial basic feasible solution in the
transportation problem? [10 marks]
Ans. North West Corner rule
Step1
The first assignment is made in the cell occupying the upper left hand (north-west) corner of the transportation table.
The maximum feasible amount is allocated here is
x11 = min (a1, b1)
Either the capacity of origin O1 is used up or the requirement at destination D1 is satisfied or both. This value of x11
is entered in the upper left hand corner (small square) of cell (1, 1) in the transportation table.
Step 2
If b1 > a1, the capacity of origin O is exhausted and the requirement at destination D1 is still not satisfied. Then at
least one variable in the first column will have to take on a positive value. Move down vertically to the second row
and make the second allocation of magnitude:
x21 = min (a2, b1 x21) in the cell (2, 1)
This either exhausts the capacity of origin O2 or satisfies the remaining demand at destination D1.
If a1 > b1, the requirement at destination D1 is satisfied, but the capacity of origin O1 is not completely exhausted.
Move to the right in a horizontal position to the second column to make the second allocation of magnitude:
x12 = min (a1 x11, b2) in the cell (1, 2)
This either exhausts the remaining capacity of origin O1 or satisfies the demand at destination D2.
If b1 = a1, the origin capacity of O1 is completely exhausted as well as the requirement at destination is completely
satisfied, then there is a tie at the second allocation. An arbitrary tie breaking choice is made. Make the second
allocation of magnitude
x12 = min (a1 a1, b2) = 0 in the cell (1, 2)
OR
x21 = min (a2, b1 b2) = 0 in the cell (2, 1)
Step 3
Start from the new north-west corner of the transportation table satisfying the destination requirements and exhausting
the origin capacities one at a time, moving down towards the lower right corner of the transportation table until all the
rim requirements are satisfied. When all the rim requirements are satisfied, an initial feasible solution to the TP is
obtained.
6. Use the simplex method to solve the following problem. [10 Marks]
Maximise z = 3x1 x2
Subject to the constraints
2x1 + x2 2
x1 + 3x2 3
x2 4,
x1, x2 0
Ans. Maximise Z = 3x1 x2
Subject to the constraints
2x1 + x2 2
x1 + 3x2 3
x2 4,
x1, x2 0
Using surplus variable x3 and slack variables x4, x5 and the artificial variable x6 the standard form of the given
problem is:
Maximize
Z = 3x1-x2+0.x3+0.x4+0.x5-M.x6
Subject to
2x1+x2-x3+0.x4+0.x5+x6 = 2
x1+3x2+0.x3+x4+0.x5+0.x6 = 3
0.x1+x2+0.x3+0.x4+x5+0.x6 = 4
and x1, x2, x3, x4, x5, x6 0
where M is a very big positive quantity.
CB
-M
0
0
B
6
4
5
3
0
0
1
4
5
3
0
0
1
3
5
cj
B
2
3
4
xB
x6
x4
x5
zj-cj
x1
x4
x5
1
2
4
x1
x3
x5
3
4
4
zj-cj
zj-cj
3
1
2
1
0
-2M-3
1
0
0
0
1
0
0
0
-1
2
1
3
1
-M+1
1/2
5/2
1
1/2
3
5
1
10
0
3
-1
0
0
M
-1/2
1/2
0
-3/2
0
1
0
0
0
4
0
1
0
0
0
1
0
0
0
2
0
0
0
5
0
0
1
0
0
0
1
0
1
0
1
3
-M
6
1
0
0
0
1/2
0
0
Since all zj-cj 0 and artificial variable is not in the solution so the solution is: x1 = 3, x2 = 0.
Therefore Z max = 9-0 = 0
2/2 = 1
3/1 = 3
SET 2
1. a. Explain the terms: Pure strategy, Mixed Strategy, Saddle point, Competitive games, Payoff
matrix, Rectangular games. [5 marks]
b. Explain the Maximin and Minimax principle used in Game Theory. [5 marks]
Ans. a. Pure strategy
During the game, if a players strategy is to adopt a specific course of action, irrespective of the opponents strategy,
the players strategy is called pure strategy.
Mixed strategy
If a player chooses his course of action according to pre-assigned probabilities, then the players strategy is called
mixed strategy. Thus, if player A decides to adopt courses of action A1 and A2with perspective probabilities 0.4 and
0.6, it is mixed strategy.
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.
Competitive Game
A game is called competitive if it has the following characteristics 1. The number of players or competitors is finite.
2. Each player has finite number of courses of action or moves.
3. A game is played when each player adopts any one course of action.
4. Every time a game is played, the corresponding combination of courses of action leads to a transaction or
payment to each player. The payment is called pay-off or gain. The pay-off may be monetary (money) or some
benefit, such as increased sales.
5. The players do not communicate with each other.
6. The players are aware of the rules before starting the game.
Pay-Off Matrix
Every time a game is played, the corresponding combination of courses of action leads to a transaction or payment to
each player. The payment is called pay-off or gain. In a two-person zero-sum game with the players A and B. Let be
the m courses of action for players A1, A2,.., Am. Let B1, B2,., Bn be the n courses of n action for player B. Let
aij(i=1,2,m;j=1,,,n) be the pay-off (gain) of player A when he plays the course of action, Ai and player B plays the
course of action Bj. Then, the following matrix is the pay-off (gain) matrix of player A :
To obtain the pay-off matrix of B, we have to write(-aij) in the place of aij in the above matrix and then write the
transpose of the matrix.
Rectangular Game
If the sum of the gains (pay-off) of the players in a game is zero, the game is called zero-sum game. A zero-sum game
with two players is called two-person zero-sum game. It is also called rectangular game. In a two-person zero-sum
game, the gain of one player is the loss of the other.
The two-person zero-sum game is a game where
Two players participate
The gain of one player is the loss of the other
it is fairly significant. A simulation application is based on the premise that the behavior 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.
CPM
CPM was developed in connection with a
construction project, which consisted of routine
tasks whose resource requirements and duration
were known with certainty. Therefore, it is
basically deterministic.
Critical Path
The application of PERT/CPM should ultimately yield a schedule specifying the start and completion time of each
activity. The arrow diagram is the first step towards achieving that goal. The start and completion timings are
calculated directly on the arrow diagrams using simple arithmetic. The end result is to classify the activities as critical
or non-critical. An activity is said to be critical if a delay in the start of the course makes a delay in the completion
time of the entire project. A critical path defines a chain of critical activities that connects the start and end events of
the arrow diagram. In other words, the critical path identifies all the critical activities of a project.
b. PERT/CPM Networks in OR
PERT/CPM networks consist of two major components as discussed below:
a) Events
An event represents a point in time that signifies the completion of some activities and the beginning of new
ones. The beginning and end points of an activity are thus described by 2 events usually known as the tail and
head events. Events are commonly represented by circles (nodes) in the network diagram. They do not
consume time and resource. Events in the network diagram are identified by numbers. Numbers are given to
events such that the arrow head number is greater than the arrow tail number.
b) Activities:
Activities of the network represent project operations or tasks to be conducted. An arrow is commonly used to
represent an activity, with its head indicating the direction of progress in the project. Activities originating
from a certain event cannot start until the activities terminating at the same event have been completed. They
consume time and resource. Activities are identified by the numbers of their starting (tail) event and ending
(head) event.
In figure 11.3 the arrow (P.Q) extended between two events represents the activity. The tail event P represents the start
of the activity and the head event Q represents the completion of the activity.
discuss the procedure that specifies how the partitioning (6) and (7) can be applied systematically to eventually get an
optimum integer-valued solution.
5. How can you use the Matrix Minimum method to find the initial basic feasible solution in the transportation
problem. [10 marks]
Matrix minimum method
Step 1
Determine the smallest cost in the cost matrix of the transportation table. Let it be cij. Allocate xij = min (ai, bj) in the
cell (I, j )
Step 2
If xij = ai cross the ith row of the transportation table, decrease bj by ai and proceed to step 3.
If xij = bj cross the ith column of the transportation table, decrease ai by bj and proceed to step 3.
If xij = ai= bj cross either the ith row or the ith column, but not both.
Step 3
Repeat steps 1 and 2 to reduce transportation table until all the rim requirements are satisfied. Whenever the minimum
cost is not unique, make an arbitrary choice among the minima.
When all the rim requirements have been satisfied, an initial feasible solution has been determined.
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7
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2
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10
2
5
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2
9
22
Ans.
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3
6
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6
8
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4
9
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9
11
6
6
7
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2
2
9
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2
9
22
1
9
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3
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1
11
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