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2 Historical Background Definitions of Operations Research 1.3 Scope of Operations Research 1.4 Features of Operations Research 1.5 Phases of Operations Research 1.6 Types of Operations Research models 1.7 Operations Research Methodology Definition Construction Solution Validation Implementation
1.8 Operations Research Techniques and Tools 1.9 Structure of the Mathematical Model 1.10 Limitations of Operations Research 1.11 Summary 1.12 Terminal Questions 1.13 Answers to SAQs and TQs Answers to Self Assessment Questions Answers to Terminal Questions 1.14 References 1.1 Introduction Welcome to the unit on Operations Research Management. Operations Research Management focuses on the mathematical scoring of consequences of a decision aiming to optimise the use of time, effort and resources, and avoid blunders. The act of obtaining the best results under any given circumstances is known as optimising. The key purpose of Operations Research (OR) is to do preparative calculations that aid the decisionmaking process. Now, you will agree that decision-making is a key part of our daily life. The ultimate goal of all decisions is to
maximise benefits and minimise effort and time. OR gives decision makers the power to make effective decisions and improve day-to-day operations. Decision makers consider all the available options, study the outcomes and estimate the risks. In simple situations, you use your common sense and judgement to take decisions. For example, if you are buying a microwave or washing machine, the decisionmaking process is not very complicated. You can simply compare the price, quality and durability of the well known brands and models in the market and take a decision based on it. However, in complex situations, although it is possible to take decisions based on one¶s common sense, a decision backed by mathematical calculations reduces the risk factor and increases the probability of success. Some such situations, where decision-makers have to reply on mathematical scoring and reasoning, are finding an appropriate product mix amidst competitor¶s products or planning a public transportation netwo`rk in a city. Learning Objectives By the end of this unit, you should be able to: · List the significant features of Operations Research · Describe the methodology of Operations Research
· Define the structure of a mathematical model in Operations Research · Describe the significance of the function of Operations Research 1.2 Historical Background During the World War II, scientists from United Kingdom studied the strategic and tactical problems associated with air and land defense of the country. The aim of this study was to determine the effective utilisation of limited military resources to win the battle. The technique was named Operations Research. After World War II, Operations Research techniques were developed and deployed in the decision making process in complicated situations in various fields, such as industrial, academic and government organisations. 1.2.1 Definitions of operations research Churchman, Aackoff and Aruoff defined Operations Research as: ³the application of scientific methods, techniques and tools to operation of a system with optimum solutions to the problems´, where µoptimum¶ refers to the best possible alternative. The objective of Operations Research is to provide a scientific basis to the decision-makers for solving problems involving interaction of various components of
the organisation. You can achieve this by employing a team of scientists from different disciplines, to work together for finding the best possible solution in the interest of the organisation as a whole. The solution thus obtained is known as an optimal decision. You can also define Operations Research as ³The use of scientific methods to provide criteria for decisions regarding man, machine, and systems involving repetitive operations´. Self Assessment Questions Fill in the blanks: 1. The main objective of OR is to provide a _______ ________ to the decision-makers. 2. OR employs a team of _________ from _________ __________. 1.3 Scope of Operations Research Any problem, simple or complicated, can use OR techniques to find the best possible solution. This section will explain the scope of OR by seeing its application in various fields of everyday life. i) In Defense Operations: In modern warfare, the defense operations are carried out by three major independent components namely Air Force, Army and
Navy. The activities in each of these components can be further divided in four sub-components namely: administration, intelligence, operations and training and supply. The applications of modern warfare techniques in each of the components of military organisations require expertise knowledge in respective fields. Furthermore, each component works to drive maximum gains from its operations and there is always a possibility that the strategy beneficial to one component may be unfeasible for another component. Thus in defense operations, there is a requirement to co-ordinate the activities of various components, which gives maximum benefit to the organisation as a whole, having maximum use of the individual components. A team of scientists from various disciplines come together to study the strategies of different components. After appropriate analysis of the various courses of actions, the team selects the best course of action, known as the µoptimum strategy¶. ii) In Industry: The system of modern industries is so complex that the optimum point of operation in its various components cannot be intuitively judged by an individual. The business environment is always changing and any decision useful at one time may not be so good some time later. There is always a need to check the validity of decisions continuously against the situations. The industrial revolution with increased division of labour and introduction of management responsibilities has made
there is a need to increase agriculture output. Marketing department maximises the output. iv) Agriculture: With increase in population. transportation and competitive strategies. OR methods in industry can be applied in the fields of production. Hence the . it has become necessary for every government to have careful planning. iii) Planning: In modern times. with minimum sacrifice and time. purchasing. There are several restrictions. Thus each department plans its own objectives and all these objectives of various department or components come to conflict with one another and may not agree to the overall objectives of the organisation. for economic development of the country. For example: production department minimises the cost of production but maximises output. Finance department tries to optimise the capital investment and personnel department appoints good people at minimum cost. A government can thus use OR for framing future economic and social policies.each component an independent unit having their own goals. but minimises cost of unit sales. inventory controls and marketing. OR techniques can be fruitfully applied to maximise the per capita income. The application of OR techniques helps in overcoming this difficulty by integrating the diversified activities of various components to serve the interest of the organisation as a whole efficiently. But this cannot be done arbitrarily.
vii) Research and Development: You can apply OR methodologies in the field of R&D for several purposes. such as to control and plan product introductions. Mention two applications of OR. thereby reducing the costs and time of trans-shipment. OR is system oriented. How can a hospital benefit from the application of OR methods? 1. Self Assessment Questions 3.need to determine a course of action serving the best under the given restrictions. The results can be . 4. v) In Hospitals: OR methods can solve waiting problems in out-patient department of big hospitals and administrative problems of the hospital organisations. You can solve this problem by applying OR techniques. OR scrutinises the problem from an organisation¶s perspective.4 Features of Operation Research Some key features of OR are as follows: 1. formulate suitable transportation policy. vi) In Transport: You can apply different OR methods to regulate the arrival of trains and processing times minimise the passengers waiting time and reduce congestion.
OR offers a quantitative solution. personalities from different scientific and managerial cadre form a team to solve the problem. 4. OR also takes into account the human factors. 6. Self Assessment Questions Fill in the blanks: 5. OR imbibes an inter±disciplinary team approach. 7. OR increases the effectiveness of ________ ability. OR makes use of computers to solve large and complex problems. 2. Since no single individual can have a thorough knowledge of all fast developing scientific know-how.optimal for one part of the system. OR makes use of scientific methods to solve problems. 5. OR ________ inter-disciplinary approach. 1. 6. OR increases effectiveness of the management¶s decision-making ability.5 Phases of Operations Research . while the same can be unfavourable for another part of the system. 3.
Research Phase: This phase utilises the following methodologies: a) Operations and data collection for a better understanding of the problems b) Formulation of hypothesis and model . Judgment Phase: This phase includes the following activities: a) Determination of the operations b) Establishment of the objectives and values related to the operations c) Determination of the suitable measures of effectiveness d) Formulation of the problems relative to the objectives 2. Figure 1.1: Phases of operations research 1.The scientific method in OR study generally involves the following three phases.
Action Phase: The action phase involves making recommendations for the decision process. One of the OR phases is Action phase 1. Self Assessment Questions State True/False: 7. The recommendations can be made by those who identified and presented the problem or anyone who influences the operation in which the problem has occurred.6 Types of OR Models A model is an idealised representation or abstraction of a real-life system. The objective of a model is to identify significant factors that affect the real-life system and their interrelationships. A model aids the decision-making process as it provides a simplified description of .c) Observation and experimentation to test the hypothesis on the basis of additional data d) Analysis of the available information and verification of the hypothesis using pre-established measure of effectiveness e) Prediction of various results and consideration of alternative methods 3. OR gives qualitative solution 8.
There are two types of physical models: .1 A broad classification of OR models You can broadly classify OR models into the following types.6.complexities and uncertainties of a problem in a logical structure. They are designed to tackle specific problems. Figure 1. graphs and charts. 1. The most significant advantage of a model is that it does not interfere with the real-life system. They bring out significant factors and interrelationships in pictorial form to facilitate analysis. Physical Models include all form of diagrams.2: Classification of models a.
Analog models are small physical systems having characteristics similar to the objects they represent.I. The variables are related by mathematical systems. Analog models Iconic models are primarily images of objects or systems. represented on a smaller scale. By the extent of Generality Models can be further classified as follows: . Iconic models II. II. c. b. Probabilistic Models in which the input and output variables follow a defined probability distribution. such as an EOQ model. Mathematical or Symbolic Models employ a set of mathematical symbols to represent the decision variable of the system. Deterministic model in which everything is defined and the results are certain. d. By nature of Environment: Models can be further classified as follows: I. Some examples of mathematical models are allocation. such as the Games Theory. and replacement models. These models can simulate the actual performance of a product. such as toys. sequencing.
Validating the model and Implementing the final result.I. Specific Models on the other hand are models that you can apply only under specific conditions. General Models are the models which you can apply in general to any problem. Self Assessment Questions State True/False 9. For example: Linear programming. For example: You can use the sales response curve or equation as a function of only in the marketing function. II. Allocation problems are represented by iconic model 1. The scientific method translates a real given problem into a mathematical representation which is solved and retransformed into the original context. . Diagram belongs to the physical model 10.7 OR Methodology The basic dominant characteristic feature of operations research is that it employs mathematical representations or models to analyse problems. This distinct approach represents an adaptation of the scientific methodology used by the physical sciences. The OR approach to problem solving consists of the following steps: Defining the problem. Solving the model. Constructing the model.
1 Definition The first and the most important step in the OR approach of problem solving is to define the problem. you need to identify and select the most appropriate model to represent the system. restrictions and requirements of the system.7.Figure 1. you need to ensure that the model specifies quantitative expressions for the objective .2 Construction Based on the problem definition. 1.7. While selecting a model. You need to ensure that the problem is identified properly because this problem statement will indicate three major aspects: 1) A description of the goal or the objective of the study 2) An identification of the decision alternative to the system 3) The recognition of the limitations.3: Steps in the OR methodology 1.
An optimum solution is one which maximises or minimises the performance of any measure in a model subject to the conditions and constraints imposed on the model. Therefore. If the mathematical relationships of the model are too complex to allow analytic solutions.4 Validation A model is a good representation of a system.7. the optimal solution must work towards improving the system¶s performance. a simulation model may be more appropriate. A model gives a perspective picture of the whole problem and helps tackling it in a well-organised manner. You can test the validity of a model by comparing its performance with some past data . There are various types of models which you can construct under different conditions. 1.7. if the resulting model fits into one of the common mathematical models.and the constraints of the problem in terms of its decision variables. However.3 Solution After deciding on an appropriate model you need to develop a solution for the model and interpret the solution in the context of the given problem. A solution to a model implies determination of a specific set of decision variables that would yield an optimum solution. you can obtain a convenient solution by using mathematical techniques. 1.
Note that such validation methods are not appropriate for non-existent systems.7. the comparison should always reveal favourable results. 1. this problem may be overcome by using data from trial runs of the system. since data will not be available for comparison. you will still have no assurance that future performance will continue to duplicate the past behaviour. The interaction between the operations research team and the operating personnel reaches its peak in this phase. Secondly. your model can reproduce the past performance of the system. since the model is based on careful examination of past data.8 OR Techniques and Tools . then you can be sure that your model is valid.available from the actual system. You need to validate this performance check under changing conditions. 1. In some instances.5 Implementation You need to apply the optimal solution obtained from the model to the system and note the improvement in the performance of the system. However. To do so. If under similar conditions of inputs. you need to translate these results into detailed operating instructions issued in an understandable form to the individuals who will administer and operate the recommended system.
The objective may be to maximise profit or to minimise cost. You will learn about the various uses of linear programming in Chapter-2. 2. Inventory control methods: The production. Queuing model: The queuing theory is based on the concept of probability. in real life there may be number of important objective functions. However. how much to buy and how much to keep in stock. each having a target value Programme models are developed to minimise deviations from these targets.The different techniques and tools used in OR are as follows: 1. The inventory model aims at optimising these inventory levels. 4. In formulating a queuing model . You need to ensure that both the objective function and the constraints can be expressed as linear expressions of decision variables. It indicates the capability of a given system and the changes possible in the system when you modify the system. such as when to buy. Goal programming has several objective functions. Goal programming: In linear programming. you take a single objective function and consider all other factors as constraints. 3. purchasing and material managers are always confronted with questions. Linear programming: You can use linear programming to find a solution for optimising a given objective.
Therefore. study their effect on the system.you need not take into account all the constraints. your success primarily depends on the alternatives considered and not so much on the queuing models developed. evaluate them through queuing models. There is no maximisation or minimisation of an objective function. such as the average length of a queue. 2. each of which has available ai (i = 1. The model studies the minimisation of the cost of transporting a commodity from a number of sources to several destinations. and then make a choice. You need to first consider several alternatives. The criteria for evaluation will be measures of efficiency of the system. Transportation model: The transportation model is an important class of linear programs. 5.m) units of homogeneous product and n destinations. expected waiting time of a customer and the average time spent by the customer in the system. The transportation problem involves m sources.. «.. The supply at each source and the demand at each destination are known. In this approach. each of which . the application of queuing theory cannot be viewed as an optimisation process. You can use the queuing theory to estimate the required balance between customer waiting time and the service capability of the system. The objective of the model is to develop an integral transportation schedule that meets all demands from the inventory at a minimum total transportation cost.
requires bj (j = 1. It is assumed that the total supply and the total demand are equal. and network analysis which you will learn in detail in later units. In addition to the above there are tools. n) units of products. Self Assessment Questions State True/False 11. (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. 6. the assignment model. . 2«. 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. OR methodology consists of definition. 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. Here ai and bj are positive integers. solution and validation only.. such as the sequence model.
The interaction between OR team and Management reaches peak level in implementation phase. 1. Any business activity or production activity to be formulated as a mathematical model can best be discussed through its parts which are as follows: 1. material and capital at the disposal of the planner.12. such as men. or minimise the cost of production or maximise the profit. Linear programming is a technique for determining an optimal schedule of interdependent activities. there are limited sources. These problems are referred as the problems of constrained optimisation. Decision variables 2. machines. In each case of planning. Objective function 3. for the given resources. you can say that programming refers to planning and the process of decision-making about a particular plan of action from a given set of alternatives.9 The Structure of the Mathematical Model Many industrial and business situations are concerned with planning activities. Therefore. Constraints . One has to take decision regarding these resources to either maximise production.
Some of the objective functions in practice are: · Maximisation of contribution or profit · Minimisation of cost . Diet problem Decision variables Decision variables are the unknowns. Therefore. the desire of the decisionmaker is expressed as a function of µn¶ decision variables. While formulating a problem. which you need to determine from the solution of the model. The parameters represent the controlled variables of the system. This function is a linear programming problem that is each of its items will have only one variable raised to the power one). The optimal solution to the model is obtained when the corresponding values of the decision variable yield the best value of the objective function whilst satisfying all constraints.4. you can say that the objective function acts as an indicator for the achievement of the optimal solution. Objective function The objective function defines the measure of effectiveness of the system as a mathematical function of its decision variables.
Restrictions from sales department about the marketability of some products are also treated as constraints. in chemical industries. ²² n. J = 1. which will optimize Z = f (x 1. restrictions come from the government about throwing gases in the environment. . which limit the decision variables to their feasible range or permissible values.· Maximisation of production rate or minimisation of production time · Minimisation of labour turnover · Minimisation of overtime · Maximisation of resource utilisation · Minimisation of risk to environment or factory Constraints To account for the physical limitations of the system. 2. ². These are expressed as constraining mathematical functions. you need to ensure that the model includes constraints.x n). x 2. 3. The mathematical models in OR may be viewed generally as determining the values of the decision variables x J. For example. A linear programming problem then has a set of constraints in practice.
x 2 ²± x n) ~ b i. The cost per one unit of food ± 1 is Rs.and one unit of food±2 is Rs. One unit of food ± 1 contains 5 units of vitamin ± A and 2 units of vitamin±B. The minimum daily requirement of a person is 60 units of vitamin ± A and 80 units of Vitamin ± B. which restrict the variables to zero or positive values only. i = 1. represent the ith constraint for i = 1. 6/-. 2. where xj ~ bi. 3 ². One unit of food ± 2 contains 6 units of vitamin ± A and 3 units of vitamin±B.n where ~ is £. 2. Diet problem Formulate the mathematical model for the following: Vitamin ± A and Vitamin ± B are found in food ±1 and food ± 2.m where b i is a known constant. Assume that any excess units of vitamins are not harmful. 2. 3 ². Find the minimum cost of the . The function f is called the objective function.Subject to the constraints: g i (x 1. The constraints x j ³ 0 are called the non-negativity condition. 5/. ².m And xJ ³ 0 j = 1. ³ or =.
Since each unit of food± 2 contains 6 units of vitamin± A. we have that x1 units of food±1 contains 5x1 units of vitamin± A. Since each unit of food±1 contains 2 units of vitamin±B we have that x1 units of food±1 contains 2x1 units of vitamin-B. Let¶s formulate the constraint related to vitamin-A. you can say that 2x2 + 3x2 ³ 80 . Now let¶s formulate the constraint related to vitamin±B. we have that x2 units of food±2 contains 6x2 units of vitamin±A. Since the minimum requirement of vitamin± A is 60 units. Since the minimum requirement of vitamin±B is 80 units. we have that x2 units of food±2 contains 3x2 units of vitamin±B. you can say that 5x1 + 6x2 ³ 60. Therefore the mixture contains 2x1 + 3x2 units of vitamin± B. Since each unit of food±2 contains 3 units of vitamin±B. Since each unit of food±1 contains 5 units of vitamin± A. the mixture contains 5x1 + 6x2 units of vitamin-A.mixture (of food±1 and food±2) which meets the daily minimum requirements of vitamins. Mathematical Model of the Diet Problem: Suppose x1 = the number of units of food±1 in the mixture and x2 = the number of units of food±2 in the mixture. Therefore.
5x1. Therefore. you have x1 ³ 0. x1 units of food±1 costs Rs. 6x2. then you can write z = 5x1 + 6x2. time and money factors. you can write min z = 5x1 + 6x2. Since the number of units (x1 or x2) are always nonnegative. and x2 units of food ± 2 costs Rs. x2 ³ 0. Therefore. 1.and one unit of food ± 2 is Rs.Next let¶s formulate the cost function. . x2 ³ 0.10 Limitations of OR The limitations are more related to the problems of model building. 6/-. the mathematical model is: 5x1 + 6x2 ³ 60 2x1 + 3x2 ³ 80 x1 ³ 0. therefore. Therefore. Given that the cost of one unit of food±1 is Rs. Since cost is to be minimised. min z = 5x1 + 6x2. 5/. If we write z for the cost function. the cost of the mixture is given by Cost = 5x1 + 6x2.
15. The magnitude of computation makes it difficult to find the interrelationship. To solve any problem through OR approach the first step is _______. Self Assessment Questions Fill in the blanks: 13. v. Communication gap: There is a wide gap between the expectations of managers and the aim of research professionals. _________ represents a real life system. Time and Money factors: When you subject the basic data to frequent changes then incorporation of them into OR models becomes a costly affair. 16. iv. 17. The three phases of OR are ________.i. . iii. Linear programming is tool of _______. Intangible factors: Non ± quantitative factors and human emotional factor cannot be taken into account. Magnitude of computation: Modern problems involve a large number of variables. 14. Human Factor: Implementation of decisions involves human relations and behaviour. ii. OR imbibes _________ team approach.
and a good amount of scientific work can be done in this direction.13 Answers to SAQs and TQs Answers to Self Assessment Questions . _________ represents the controlled variables of the system 1. Write short notes are different phases of OR.18. What are the limitations of OR? 1.12 Terminal Questions 1.11 Summary The OR approach needs to be equally developed in various agricultural problems on a regional or international basis. 2. What is a model in OR? Discuss different models available in OR. 5. Define OR. 4. What are the characteristic features of OR? 3. 1. The problem of optimal distribution of water from a resource like a reservoir for irrigation purposes is faced by each developing country. With the explosion of population and consequent shortage of food. every country faces the problem of optimum allocation of land in various crops in accordance with climate conditions and available facilities.
OR 15. Inter-disciplinary 14. False 11. Model . Decision making 7.1. Scientists. different disciplines 3. Imbibes 6. False 12. Scientific basis 2. Industry Planning 4. True 8. True 10. True 9. Judgement phase. Research phase & Action phase 16. False 13. Define the problem 17. To solve waiting problems 5.
Refer to 1.5 5.14 References No external sources have been referred for this unit.2.18. Refer to 1. MB0048-Unit-02-Linear Programming Unit-02-Linear Programming Structure: 2.1 Introduction Learning objectives .1 2.4 3.6 4. Refer to 1. Refer to 1.10 1. Refer to 1. Parameters Answers to Terminal Questions 1. Copyright © 2009 SMU Powered by Sikkim Manipal University .
8 Answers to SAQs and TQs Answers to Self Assessment Questions .6 Summary 2.5 Graphical Methods to Solve Linear Programming Problems Working rule Solved problems on mixed constraints LP problem Solved problem for unbounded solution Solved problem for inconsistent solution Solved problem for redundant constraint 2.2.7 Terminal Questions 2.3 Linear Programming Canonical forms Case studies of linear programming problems 2.2 Requirements Basic assumptions of linear programming problems 2.4 Graphical Analysis Some basic definitions 2.
time and technology are some of these common resources. You can measure the output from factors. The management¶s dilemma is to optimise (maximise or minimise) the output or the objective function subject to the set of constraints. The management¶s task is to obtain the best possible output (or a set of outputs) from these given resources. Minimal time and effort and maximum benefit coupled with the best possible output or a set of outputs is the mantra of any decision-maker. the costs. In several situations. machine. decision-makers or managements have to tackle the issue of allocating limited and scarce resources at various levels in an organisation in the best possible manner. you can express the output (or a set of outputs) as a linear relationship among several variables.1 Introduction Welcome to the unit of Operations Research on Linear Programming. Linear programming focuses on obtaining the best possible output (or a set of outputs) from a given set of limited resources. such as the profits. You can also express the amount of available resources as a linear relationship among various system variables. Man. the social welfare. and the overall effectiveness. money. Today.Answers to Terminal Questions 2.9 References 2. .
Decision variables and their relationship ii.2. Non-negative conditions on decision variables 2.2 Requirements of LPP The common requirements of a LPP are as follows. Existence of alternative courses of action iv.Optimisation of resources in which both the objective function and the constraints are represented by a linear form is known as a linear programming problem (LPP). . i. Learning objectives By the end of this unit. Well-defined objective function iii.1 Basic Assumptions of LPP 1. you should be able to: · Construct linear programming problem and analyse a feasible region · Evaluate and solve linear programming problems graphically 2. Linearity: You need to express both the objective function and constraints as linear inequalities.
Both the objective function and constraints are expressed in _____ forms. 4. 3. _______.3 Linear Programming The LPP is a class of mathematical programming where the functions representing the objectives and the . Self Assessment Questions Fill in the blanks 1. Deterministic: All co-efficient of decision variables in the objective and constraints expressions are known and finite. Divisibility: The solution of decision variables and resources can be non-negative values including fractions. Additivity: The value of the objective function and the total sum of resources used must be equal to the sum of the contributions earned from each decision variable and the sum of resources used by decision variables respectively. 3. Solution of decision variables can also be ____________. 2. ____ and _______. 2. LPP requires existence of _______.2.
2. a11 x1 + a12 x2 + ²± + a1n xn ~ b1 a21 x1 + a22 x2 + ²± + a2n xn ~ b2 ²²²²²²²²²²²²²²am1 x1 + am2 x2 + ²².± . If bi is the available amount of resources i. 3.+ amn xn ~ bm and x1 0. Note that.+ cn xn Subject to the constraints.n) are the decision variables. Here ~ is either (less than). .. the worth´ per unit of activity is equal to cj. where aij is the amount of resource i that must be allocated to each unit of activity j. (greater than) or = (equal). in terms of the above formulation the coefficients cj. x2 0. 3 ². 3 ²². «. ²²²²²²± xn 0 Where cj. bi and aij (i = 1. bi aij are interpreted physically as follows. m.constraints are linear. j = 1. Optimisation refers to the maximisation or minimisation of the objective functions.n) are constants determined from the technology of the problem and xj (j = 1. You can define the general linear programming model as follows: Maximise or Minimise: Z = c1 x1 + c2 x2 + ± . 2. 2.
3.1 Canonical forms You can represent the general Linear Programming Problem (LPP) mentioned above in the canonical form as follows: Maximise Z = c1 x1+c2 x2 + ²² + cn Subject to. x3. All constraints are of type. 2. « xn ³ 0. The following are the characteristics of this form. a11 x1 + a12 x2 + ²² + a1n xn £ b1 a21 x1 + a22 x2 + ²² + a2n xn £ b2 ²²²²²²²²²²²²²²± am1 x1+am2 x2 + «« + amn xn £ bm x1. The objective function is of the maximisation type. You can represent any LPP in the canonical form by using five elementary transformations.2. x2. which are as follows: . All decision variables are non-negative.3. 1.
An inequality constraint with its left hand side in the absolute form can be changed into two regular inequalities. Any inequality in one direction ( or ) may be changed to an inequality in the opposite direction ( or ) by multiplying both sides of the inequality by ±1. Minimise Z = c1 x1 + c2x2 + ««. For example: 2x1+3x2 5 is equivalent to 2x1+3x2 5 and 2x1+3x2 ± 5 or ± 2x1± 3x2 5 .1. For example 2x1+3x2 ³ 5 is equivalent to ±2x1±3x2 £ ±5 3. For example: 2x1+3x2 = 5 can be written as 2x1+3x2 5 and 2x1+3x2 5 or 2x1+3x2 5 and ± 2x1 ± 3x2 ± 5 4. An equation can be replaced by two inequalities in opposite direction. The minimisation of a function is mathematically equivalent to the maximisation of the negative expression of this function. + cn xn is equivalent to Maximise ± Z = ± c1x1 ± c2x2 ± « ± cn xn 2. That is.
2. 250 and 400 cars and unit Y manufactures 180.3. 2500.20. 200 and 300 cars of A.5. B and C respectively per week (6 days).2 Case Studies of linear programming problems . 1. The variable which is unconstrained in sign ( 0. On a day unit X manufactures 200. and 3000 cars of A. 0 or zero) is equivalent to the difference between 2 nonnegative variables. The operations manager has to decide on how many days per week should each unit be operated to meet the current demand at minimum cost.000 and Rs. The company has to supply 1500. For example: if x is unconstrained in sign then x = (x+ ± x±) where x+ 0.000 per day to run the units X and Y respectively. B and C. B and C respectively per day. It costs the company Rs. The operations manager along with his team uses a LPP model to arrive at the minimum cost solution.00. x± 0 Caselet An automobile company has two units X and Y which manufacture three different models of cars ± A. 1.
Self Assessment Questions State True/False 4. One of the characteristics of canonical form in the objective function must be of maximisation. .
Maximise Z = 700 x1+500 x2 Subject to 4x1+3x2 £ 210 2x1+x2 £ 90 and x1 ³ 0. Example Let¶s look at the following illustration. 70) (put x1 = 0 in 4x1 + 3x2 = 210 and solve for x2).50. (by replacing the inequality symbols by the equality) which meets the x1axis at the point A (52. draw the line 4x1 + 3x2 = 210.4 Graphical Analysis You can analyse linear programming with 2 decision variables graphically. 0) (put x2 = 0 and solve for x1 in 4x1 + 3x2 = 210) and the x2 ± axis at the point B (0.5. x2 ³ 0 Let the horizontal axis represent x1 and the vertical axis x2. First. . 2x ± 3y 10 can be written as -2x + 3y -10 2.
you can sketch the area as follows: .Figure 2. Similarly the line 2x1+x2 = 90 meets the x1-axis at the point C(45. 0) and the x2 ± axis at the point D(0. Figure 2.1: Linear programming with 2 decision variables Any point on the line 4x1+3x2 = 210 or inside the shaded portion will satisfy the restriction of the inequality. 4x1+3x2 £ 210.2: Linear programming with 2 decision variables Combining the two graphs. 90).
4. 2. This region is called feasible region.3: Feasible region The 3 constraints including non-negativity are satisfied simultaneously in the shaded region OCEB.Figure 2.1 Some basic definitions .
The collection of all feasible solutions is known as the ________ region.Note: The objective function is maximised or minimised at one of the extreme points referred to as optimum solution. Extreme points are referred to as vertices or corner points of the convex regions. A linear inequality in two variables is known as a _________. 7. Self Assessment Questions Fill in the blanks 6. .
2. Step 3: Identify the convex polygon region relevant to the problem. Step 1: Write down the equations by replacing the inequality symbols by the equality symbols in the given constraints.5. You can consider the vertices of the polygon and find the value of the objective function in these vertices. Compare the vertices of the objective function at these vertices to obtain the optimal solution of the problem. where you plot the solution space enclosed by the constraints. 2. the halfplane is located. since a linear function attains extreme (maximum or minimum) values only on the boundary of the region. . The solution space is a convex set bounded by a polygon. The working rule for the method is as follows.5 Graphical Methods to Solve LPP Solving a LPP with 2 decision variables x1 and x2 through graphical representation is easy. Consider x1 x2 ± the plane.1 Working rule The method of solving a LPP on the basis of the above analysis is known as the graphical method. Step 2: Plot the straight lines represented by the equations obtained in step I. Decide on which side of the line.
These are respectively the maximum and minimum value of Z. Step 5: Identify the values of (x1. x2) which correspond to the desired extreme value of Z.Step 4: Determine the vertices of the polygon and find the values of the given objective function Z at each of these vertices. This is an optimal solution of the problem . Identify the greatest and least of these values.
2 Solved problems on mixed constraints LP problem .2.5.
you may have: i) a unique optimal solution or ii) many number of optimal solutions or iii) an unbounded solution or iv) no solutions.In linear programming problems. .
5.3 Solved problem for unbounded solution .2.
2.4 Solved problem for inconsistent solution .5.
2.5.5 Solved problem for redundant constraint .
The feasible region is a convex set .Self Assessment Questions State True/False 8.
you first identify the decision variables with economic or physical quantities whose values are of interest to the management.?| >´Kl \9.1 Introduction Learning Objectives 12.2 Competitive Situations Marketing different brands of commodity Campaigning for elections .6 Summary In a LPP. the objective function indicates that cost has to be minimised. The decision variables interact with each other through some ] B0048-Unit-12-Game Theory Unit-12-Game Theory Structure: 12. Here. The problems must have a well-defined objective function expressed in terms of the decision variable. The optimum value occurs anywhere in feasible region 2. The objective function is to maximise the resources when ui it expresses profit or contribution.
3 Characteristics of Competitive Games N-person game Zero sum game Two-person-zero-sum game (rectangular game) Strategy Pure strategy Mixed strategy 12.4 Maximin ± Minimax Principle Saddle point Solution to a game with a saddle point 12.5 Dominance Solving games using dominance 12. Learning Objectives .8 Answers to SAQs and TQs Answers to Self Assessment Questions Answers to Terminal Questions 12.6 Summary 12. The theory gained importance after 1944. This highly resourceful field of study is developing fast. John Von Newman developed the Game Theory in the year 1928.Fighting military battles 12. when John Von Newman along with Morgenstern published their work on µTheory of games and economic behaviour¶.1 Introduction Welcome to unit twelve of Operations Research Management on Game Theory.7 Terminal Questions 12.9 References 12.
12.2. Self Assessment Questions Fill in the blanks: . They adopt various methods (courses). such as µadvertising through electronic media¶. such as µcampaigning through TV¶.2 Campaigning for elections Two or more candidates contesting in elections are in a competitive situation.2 Competitive Situations Competitive situations arise when two or more parties with conflicting interests operate. 12.1 Marketing different brands of a commodity Two or more brands of detergents/soaps trying to capture the market by adopting various methods (courses). The above mentioned situations can be considered as a competitive game where the parties (players) adopt a course of action (play the game). µdoor to door campaigning¶ or µcampaigning through public meetings¶ to capture more votes. µproviding cash discounts to consumers¶ or µoffering larger sales commission to dealers¶ are said to be in a competitive situation. The following competitive situations may occur.3 Fighting military battles Another example of a competitive situation is where two forces are fighting a war to gain supremacy over one another. such as µdirect ground attack on enemy camp¶. µground attack supported by aerial attack¶ or µplaying defensive by not attacking¶. you should be able to: · Comprehend competitive situations · Apply game theory to such situations · Compute a solution using saddle point and dominance principle 12. They adopt various courses of action.2.1: Types of competitive situations 12.2. Figure 12.By the end of this unit.
3 Characteristics of a Competitive Game A competitive game has the following characteristics: 1. such as increased sales. In a two-person zero-sum game with the players A and B. The players are aware of the rules before starting the game.3. Let .3. The payment is called pay-off or gain. The number of players or competitors is finite. A zero-sum game with two players is called two-person zero-sum game. Each player has finite number of courses of action or moves. Competitive situations arise when _______ or ________ parties with ___________ operate. Let be the m courses of be the n courses of action for player B. 6.3. the corresponding combination of courses of action leads to a transaction or payment to each player. In a two-person zero-sum game. Every time a game is played. 3. the gain of one player is the loss of the other. 5. The pay-off may be monetary (money) or some benefit. It is also called rectangular game. The players do not communicate with each other. 12.1. 12. 12. 4.1 N ± person game A game having µn¶ players participating is called µn-person¶ game.3 Two ± person zero ± sum game (rectangular game) A two-person zero-sum game is a game where · Two players participate · The gain of one player is the loss of the other. A game is played when each player adopts any one course of action. 2. the game is called zero-sum game. Let action for player A. 12. A two-player game is called 2-person game (two person game).2 Zero ± sum game If the sum of the gains (pay-off) of the players in a game is zero.
write () in the place of in the above matrix and then write the transpose of the matrix. The player uses this strategy to select a course of action during the game.6 Mixed strategy .4 Strategy In a game.3. the strategy of a player is predetermined. 12. the following matrix is the pay-off (gain) This is a (read as m by n) game. Then. Therefore. Figure 12. To obtain the pay-off matrix of B. if a player¶s strategy is to adopt a specific course of action. The strategy of a player may be µpure¶ or µmixed¶. the player¶s strategy is called pure strategy. Here. is A¶s gain and B¶s loss.3. and player B plays the course of action matrix of player A. . ) is the 12.3. irrespective of the opponent¶s strategy.be the pay-off (gain) of player A when he plays the course of action.2: Types of strategy 12. (gain of B.5 Pure strategy During the game.
if player A decides to adopt courses of action with perspective probabilities 0. What is a rectangular game? 5. How many courses of actions are available to the players in a competitive game? 12. Self Assessment Questions Write one line answers 2. Thus.6. What is pure strategy? 6.4 and 0. 3. When do you call a game µzero-sum game¶? 4. it is mixed strategy. State any one characteristics of a competitive game.If a player chooses his course of action according to pre-assigned probabilities.4 Maximin ± Minimax Principle Solving a two-person zero-sum game . then the player¶s strategy is called mixed strategy.
Then the maximum of the row minimum in the pay-off matrix is called maximin. he would minimise his maximum loss. Then. player A would like to maximise his profit and player B would like to minimise his loss.) is the minimum gain of A when he plays ( is the minimum pay-off in the first . Suppose A chooses the course of action where is maximum. The maximin is Similarly. the minimum gains are the row You will find corresponding to A¶s play minimums . row. when B plays. .Let Similarly. The minimum of the column maximums in the pay-off matrix is called minimax. .Player A and player B are to play a game without knowing the other player¶s strategy. Suppose player A plays Then. accordingly B¶s choice would be . Also each player would expect his opponent to be calculative. his gain would be . if A plays . However. The maximum loss to B is when This is the maximum pay-off in the is column. his minimum gain is . the least pay-off in the second row. The minimax is .
when both the players adopt optimal strategy. be the courses of The saddle point of the game is as follows: 1.2 Solution to a game with saddle point Consider a two-person zero-sum game with players A and B. . If the maximin occurs in the s) is the saddle point. The corresponding position is the saddle point. Note 1: If a game has saddle point. cannot be greater than . Note 2: If a game does not have saddle point. is the common value of the maximin and the minimax. For player A and B. The maximum pay-off in each column is written within a box as shown in example 2. 12. 2. the position (r. that pay-off is the value of the game. the player¶s strategy is pure strategy. Saddle point is the position where the maximin (maximum of the row minimums) and minimax (minimum of the column maximums) coincide. Let be the courses of action for player B. The minimum pay-off in each row of the pay-off matrix is encircled as shown in example 2. If any pay-off is circled as well as boxed. 3.4. the suggested solutions are and respectively. It is called the value of the game. (r. Here. row and if the minimax occurs in the column.1 Saddle point In a two-person zero-sum game. s). the maximin and the minimax are equal and the game is said to have saddle . Note 3: A game is said to be fair if its value is zero. then the game does not have a saddle point. The value of a game is the expected gain of player A.If point. 12. if the maximin and the minimax are equal. Let action for player A. the solution offers a mixed strategy.4. the game has saddle point. If Note: .
Then. the game does not have a saddle point.Let (r. Hence. s) be the saddle point. . the suggested solution for the players is mixed strategy. the suggested pure strategy for player A is pure strategy for player B is . . The value of the game is . The suggested Note: However. if none of the pay-offs is circled or boxed.
. Saddle point occurs at row minimum and column maximum.Self Assessment Questions True or False: 7. 8. then it is called zero-sum game. If the value of the game is zero.
Hence you can say that you can say that: a) In the pay-off matrix. for A. a convex combination of two or more courses of action may dominate another course of action. Therefore. if each pay-off in (or equal to) the corresponding pay-off in the is greater than . dominates . if each pay-off in a specific column pay-off in another specific column strategy irrespective of A¶s strategy. then that course of action ( or ) can be deleted from the pay-off matrix. you can say that . if each pay-off in (or equal to) the corresponding pay-off in the b) In the pay-off matrix. hence is greater than (or equal to) the corresponding is deleted. dominates . 12. This means that yields greater irrespective of B¶s whatever course of action is adopted by player B. . . Let of action for player A. Whenever a course of action (say or ) is dominated by others. . Successive reduction of the order using dominance property helps in solving games. Use the dominance property in sequence to delete the courses of action of A as well as B till the pair comprising the saddle point remains alone. The pay off matrix represents the gain for top player. the pay-off matrix of player A is pay-off in one specific row exceeding the corresponding pay-off in another specific row gains than the course of action strategy. be the courses Suppose the game has a saddle point. is less than the corresponding offers minor loss than dominates .5 Dominance In a rectangular game. At times. the course of action is a better strategy than . Such a deletion will not affect the choice of the solution. it means strategy dominates is less than .5. Let be the courses of action for player B. dominates .1 Solving games using dominance Consider a two-person zero-sum game with players A and B. Therefore. if each pay-off in pay-off in the . The procedure to arrive at the saddle point is as follows: a) In the pay-off matrix. but it reduces the order of the pay-off matrix.9. Hence. Alternatively. 12.
hence so. dominates is less than (or equal to) the corresponding . . if each pay-off in pay-off in the . c) Repeat the above steps in succession to achieve the saddle point. is deleted. a convex combination of two or more courses of action may dominate another course of action.b) In the pay-off matrix. Note: Sometimes.
. dominates dominates . finally the matrix reduces to ± Thus.Solved Problem 6: Solve the following game using dominance property. the matrix reduces to Here. Thus. is deleted. since 12>8. each pay-off in the third column is less than the corresponding pay-off in the first column. So. Also. Therefore. (1. Here. Therefore. dominates . Hence the reduced matrix is as follows: dominates . Similarly. each pay-off in the first row exceeds the corresponding pay-off in the third row. . 3) is the saddle point and the solution to the game is as follows: a) Strategy for A is . And so. Solution: In the pay-off matrix. dominates .
1<6. the reduced matrix is as follows: Here. Similarly.b) Strategy for B is . c) Value of the game is v = 12 Solved Problem 7: Solve the following zero-sum game and find its value. pay-off in the second row is greater than (or equal to) the corresponding pay-offs in the first. B dominates A. And so. Therefore. the reduced matrix is as follows. third as well as fourth rows. After deleting R and S. the reduced matrix is as follows: Therefore the solution to the game is: . Solution: In the pay-off matrix. After deleting A. After deleting P. Therefore. the course of action Q dominates R. each pay-off in the second column is less than (or equal to) the corresponding pay-off in the third column. Q dominates S. C and D. Here. C and D. Q dominates P.
12.6 Summary .a) Strategy for Company X is B. The row whose elements are less than the corresponding elements of another row is __________. the pay-off matrix of A is ± Write down the pay-off matrix of player B. If the average of any 2 columns is less than or equal to the corresponding elements of another column. Solved Problem 8 In a two-person zero-sum game. it is _________. Solution: The pay-off matrix of B is as follows: Self Assessment Questions Fill in the blanks 10. c) Value of the game is v = 1. 11. b) Strategy for Company Y is Q.
12. When the value of the game is zero (0). characteristics of competitive game and its strategy. 3. Explain maximin. Players do not communicate with each other. more. Solve the following rectangular game. 4. pay-off matrix of player A is as follows: i) Solve the game. conflicting interest 2. 5. 2. .The game theory module explains the concept of competitive situations. 4. 12.minimax principle. Two ± person zero sum game.7 Terminal Questions 1. saddle point and dominance using precise examples. ii) Write down the pay-off matrix of B and then. solve the game. The unit also explains the maximin ± minimax principle. In a rectangular game.8 Answers to SAQs and TQs Answers to Self Assessment Questions 1. When a player plays only one strategy irrespective of opponents µmove. Briefly describe characteristics of competitive game. 3. Two.
4 for answer. 1. 12. Taha.9 References Below is the list of reference books for Unit 12: 1. 0. . 7. Deleted Answers to Terminal Questions 1. 0. Operations Research an introduction IV Education ± Homdy A. 0). 3.3 for answer. Gupta. False 10. 3. A¶s Strategy (0. Refer to section 12. 0). while B¶s Strategy (0. Manmohan ± Sultan Chand and Sons Publishers. Value of the game is 1. Copyright © 2009 SMU Powered by Sikkim Manipal University . 4. A¶s strategy is (1. Sharma-Macmillan India Ltd. K.6. 0). Refer to section 12. 0). while B¶s strategy is (1. Deleted 11. Theory and Problems of Operations Research ± Richard Bronsoon-Schaum¶s Outline Series. 2. 2. 1. K. True 8. 4. Each player has finite number of courses of action or moves. Value is 5.Macmillan Publishing Company. True 9. Problems in operations Research (Methods and Solutions) ± P. Operations research theory and applications ± J. 0.
technical. The objective function and the constraints are linear functions of the decision variables. legal or variety of other reasons. The value of the decision variables.7 Terminal Questions 1. The collection of all feasible solutions is known as a feasible region.. Any nonnegative solution satisfying all the constraints is known as a feasible solution of the problem. x2 ³ 0 . Sometimes the problem may be unfeasible indicating that no solution exists for the problem. These constraints arise due to limited resources. The feasible region of a LPP is a convex set. which maximise or minimise the objectives function is located on the extreme point of the convex set formed by the feasible solutions. Use the graphical method to solve the LPP. Maximise Z= 5x1 + 3x2 Subject to: 3x1 + 5x2 £ 15 5x1 + 2x2 £ 10 x1. A LPP with two decision variables can be solved graphically. 2. stipulation on quality.
P.8 Answers to SAQs and TQs Answers to Self Assessment Questions 1. each unit of product 2 requires processing for 2 minute at D1 and 2 minutes at D2. A firm manufactures two products. 3 per unit and the net profit on product 2 is Rs. How much of products 1 and 2 should be produced every day so that total profit is maximum. Fractious 4. True 5. The manufacturing process is such that each product has to be processed in two departments D1 and D2.2. the net profit on product 1 is Rs. Alternate course of action 3. Linear 2. Each unit of product 1 requires processing for 1 minute at D1 and 3 minutes at D2. True 6. 5 per unit. Formulate this as a problem in L.P. Feasible . 2. Mathematically formulate the problem. Machine time available per day is 860 minutes at D1 and 1200 minutes at D2.
MB0048-Unit-03-Simplex Method Unit-03-Simplex Method Structure: 3. False Answers to Terminal Questions 1. 2.7. Half-plan 8.9 References No external sources have been referred. True 9. Copyright © 2009 SMU Powered by Sikkim Manipal University .1 Introduction Learning objectives . subject to x1 + 2x2 £ 800 (minutes) 3x1 + 2x2 £ 1200 (minutes) x1. x2 ³ 0 2. Maximise 3x1 + 5x2.
7 Solved Problems on Minimisation 3.10 Answers to SAQs & TQs Answers to Self Assessment Questions Answers to Terminal Questions 3.5 Penalty Cost Method or Big M-method 3.2 Standard Form of LPP The standard form of LPP Fundamental theorem of LPP 3.3 Solution of LPP ± Simplex Method Initial basic feasible solution of a LPP To solve problem by Simplex Method 3.8 Summary 3.4 The Simplex Algorithm Steps 3.3.9 Terminal Questions 3.11 References .6 Two Phase Method 3.
it is located at a corner point of the feasible region determined by the constraints of the system. The efficiency of this algorithm is because it considers only those feasible solutions which are provided by the corner points. Learning objectives By the end of this unit. The objective function controls the development and evaluation of each feasible solution to the problem. The simplex algorithm is an iterative procedure for finding the optimal solution to a linear programming problem.3. You can consider obtaining an optimal solution based on a minimum number of feasible solutions. and that too not all of them. The simplex method simply selects the optimal solution amongst the set of feasible solutions of the problem. you should be able to: · Create a standard form of LPP from the given hypothesis · Apply the simplex algorithm to the system of equations . The simplex method focuses on solving LPP of any enormity involving two or more decision variables.1 Introduction Welcome to the third unit of Operations Research Management on the simplex method. If a feasible solution exists.
All the variables are non-negative.· Interpret the big M-technique · Discuss the importance of the two phase method · Construct the dual from the primal (and vice versa) 3. The right-hand side element of each constraint equation is non-negative.2 Standard Form of LPP The characteristics of the standard form of LPP are: 1. 2. You can change the inequality constraints of equations by adding or subtracting the left hand side of each such constraint by a non-negative variable. 4. The non-negative variable subtracted from a constraint inequality of the form ³ to change it to an equation is called a surplus variable. which remain inequalities (³. 3. The objective function is of maximisation or minimisation type. 0) only. All constraints are equations except for the nonnegativity condition. multiply both the sides of the resulting equation . The non-negative variable that has to be added to a constraint inequality of the form £ to change it to an equation is called a slack variable. To make the right hand side of a constraint equation positive.
then there exists a basic feasible solution. 2.2. Use the elementary transformations introduced with the canonical form to achieve the remaining characteristics. j = 1. i = 1. with r (A) = m. 2. AX = b. We add surplus variable for ´ of constraint.1 The standard form of the LPP Any standard form of the LPP is given by Maximise or Minimise Subject to: & xj ³ 0.2 Fundamental theorem of LPP A set of m simultaneous linear equations in n unknowns/variables.2. Self Assessment Questions State True or False 1.by (-1). n ³ m. ² m 3. . S i ³ 0. If there is a feasible solution X ³ 0. 3. ² n.
S2 ². Subsequently every constraint equation will contain either a slack variable or an artificial variable. 3. ² xn. the . Sm ³ 0. The right hand side element of each constraint is nonnegative.3 Solution of the Linear Programming Program ± Simplex Method Consider a LPP given in the standard form To optimise z = c1 x1 + c2 x2 + ²+ cn xn Subject to a11 x1 + a12 x2 + ² + an x n a21 x1 + a22 x2 + ²-+ a2n xn S 1 = b1 S2 = b2 «««««««««««««««««««««««««.2. Therefore. Sm = bm To each of the constraint equations. However. add a new variable called an artificial variable on the left hand side of every equation which does not contain a slack variable. The introduction of slack and surplus variables does not alter either the constraints or the objective function. you can incorporate such variables in the objective function with zero coefficients. am1 x1 + am2 x2 + ² + amn xn x1. S1. x2.
only if all the artificial variables have value zero. The newly derived constraint equation is equivalent to the original equation.artificial variables do change the constraints as these are added only to the left hand side of the equations. The large positive and negative coefficients represent the penalty incurred for making a unit assignment to the artificial variable. slack. And X ³ 0 Where X is a column vector with decision. surplus and artificial variables. Thus the standard form of LPP can be given as follows: Optimise Z = CT X Subject to AX = B. Artificial variables are incorporated into the objective function with very large positive coefficient M in the minimisation program and very large negative coefficient±M in the maximisation program guaranteeing optimal solutions. . 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.
1 Initial basic feasible solution of a LPP Consider a system of m equations in n unknowns x1. .3. x2 ± .3.a n.
solve the equation to obtain the values of the basic variables.a11 x1 + a12 x2 + ± .+ a1n xn = b1 a21 x1 + a22 x2 + ± . A basic solution satisfying all constraints is said to be feasible. then the solution is called a non-degenerate solution.+ amn xn = bn Where m £ n To solve this system of equations. Then. The variables assigned the value zero are called non-basic variables. whereas if all basic variable have non-zero values. If one or more values of the basic variables are valued at zero. then solution is said to degenerate. you must first assign any of n ± m variables with value zero.+ a2n xn = b2 ««««««««««««««««««««« am1 x1 + am2 x2 + ± . while the remaining variables are called basic variables. .
2 To solve problem by simplex method To solve a problem by the simplex method. 2. Introduce stack variables (Si¶s) for £´ type of constraint. 3. 1. Introduce only Artificial variable for =´ type of constraint. follow the steps below. Introduce surplus variables (Si¶s) and artificial variables (Ai) for ´ type of constraint.3.3. .
Find Zj ± Cj for each variable. The element that lies both on key column and key row is called Pivotal element. 11. Once an artificial variable is removed as basic variable. The basic variable corresponding to this row will be replaced by the variable found in step 6. That column is called key column. Surplus variable will never become basic variable for the first simplex table. Ratios with negative and a´ value are not considered for determining key row. Select the most negative value of Zj ± Cj. 8. .4. Cost (Cj) of slack and surplus variables will be zero and that of artificial variable will be M´ 5. 12. its column will be deleted from next iteration. Slack and artificial variables will form basic variable for the first simplex table. Divide the quantities by the corresponding values of the key column to get ratios. Zj = sum of [cost of variable x its coefficients in the constraints ± Profit or cost coefficient of the variable]. This becomes the key row. 7. select the minimum ratio. 6. 9. 10. The variable corresponding to the column will become basic variable for the next table.
3. Self Assessment Questions State True or False 3. decision variables coefficients will have opposite signs as compared to objective function. 5. use the following algorithm called simplex algorithm.13. 14.4. A basic solution is said to be a feasible solution if it satisfies all constraints. decision variables coefficient will be same as in the objective function.1 Steps . 4. The right hand side element of each constraint is nonnegative. For minimisation problems. If one or more values of basic variable are zero then solution is said to be degenerate. 15.4 The Simplex Algorithm To test for optimality of the current basic feasible solution of the LPP. 3. Let¶s also assume that there are no artificial variables existing in the program. Values of artificial variables will always is ± M for both maximisation and minimisation problems. For maximisation problems. The process is continued till all Zj ± Cj ³ 0.
Do not include the last column. choose the elements randomly. . if none of the element in the work column is non-negative. The program has no solution. form ratios by dividing each positive number in the work column.Perform the following steps to solve the simplex algorithm. The column that has negative number is called the work column. excluding the last row into the element in the same row and last column. Figure 3. 2) Next. If more than one element yields the same smallest ratio.1: Steps to solve simple algorithm 1) Locate the negative number in the last row of the simplex table. Assign that element to the work column to yield the smallest ratio as the pivot element.
The variable to be replaced is called the outgoing variable and the variable that replaces it is called the incoming variable. use elementary row operations. The company¶s management is considering devoting this excess capacity to one or more . This new first column is the current set of basic variables. 5) Repeat steps 1 through 4 until all the negative numbers in the last row excluding the last column are exhausted. but the negative of this number for a minimisation problem.3) To convert the pivot element to unity (1) and then reduce all other elements in the work column to zero. The associated optimal value of the objective function is the number in the last row and last column for a maximisation program. 4) Replace the x -variable in the pivot row and first column by x-variable in the first row pivot column. This created excess production capacity. 6) You can obtain the optimal solution by assigning the value to each variable in the first column corresponding to the row and last column. Caselet A manufacturing company discontinued production of an unprofitable product line. All other variables are considered as non-basic and have assigned value zero.
. the number of machine hours required to produce one unit of each product and the unit profit per product. Knowing the capacity of the machines.of the other ongoing products. the management needs to find out how much of each product the company should produce to maximise profit. The management can use the simplex method to arrive at the required solution.
Pivotal element lies on the crossing of key column and key row. Addition of artificial variables causes violation of the corresponding constraints as they are added to only one side of an equation. You denote these coefficients by M. 7. To guarantee such assignments in the optimal solution.5 Penalty Cost Method or Big-M Method Consider a LPP when at least one of the constraints is of type ³ or =. 3. the last row of simplex table will contain the .Self Assessment Questions State Yes or No 6. While expressing in the standard form. Whenever artificial variables are part of the initial solution X0. The key column is determined by Zj ± Cj row. The new system is equivalent to the old system of constraints only if the artificial variables are valued at zero. 8. The negative and infinite ratios are considered for determining key row. These variables are called artificial variables. add a non negative variable to each of such constraints. you can incorporate artificial variables into the objective function with large positive or large negative coefficients in a minimisation and maximisation programs respectively.
while the second involves those containing M.penalty cost M. 2) The step 1 of the simplex method is applied to the last row created in the above modification and followed by steps 2. This method is called Big M-method or Penalty cost method. Figure 3. 3 and 4 until this row contains no negative elements. .2: Big M-method 1) The last row of the simplex table is decomposed into two rows. the first of which involves those terms not containing M. You can make the following modifications in the simplex method to minimise the error of incorporating the penalty cost in the objective function. Then step 1 of simplex algorithm is applied to those elements next to the last row that are positioned over zero in the last row.
In contrast. then the program has no solution.3) Whenever an artificial variable ceases to be basic. . 4) The last row is removed from the table whenever it contains all zeroes. it is also deleted from the top row of the table as is the entire column under it. 5) If non-zero artificial variables are present in the final basic set. zero valued artificial variables in the final solution may exist when one or more of the original constraint equations are redundant. it is removed from the first column of the table as a result of step 4.
Artificial variables enter as basic variables.Self Assessment Questions State Yes or No 9. . The value of artificial value is M´. 10.
a new method is considered. If a feasible solution is arrived. Phase I: Formulate the new problem.3. The Simplex method optimises the ensuing objective with the constraints of the original problem. Then take the objective function without the artificial variables and solve the problem using the Simplex method. If the optimal value of the new objective function is nonzero. where the use of M is eliminated by solving the problem in two phases.6 Two Phase Method The drawback of the penalty cost method is the possible computational error resulting from assigning a very large value to the constant M. Subsequently proceed to phase II. the optimal value of the new objective function is zero (suggestive of all artificial variables being zero). Start by eliminating the original objective function by the sum of the artificial variables for a minimisation problem and the negative of the sum of the artificial variables for a maximisation problem. To overcome this difficulty. Phase II: Start phase II using the optimum solution of phase I as the base. . it means there is no solution to the problem and the method terminates.
3.7 Solved Problems on Minimisation .
surplus and artificial variables. Maximise z = 3x1 ± x2 Subject to the constraints 2x1 + x2 ³ 2 x1 + 3x2 £ 3 x2 £ 4. x2 ³ 0. Examples are used to illustrate the method of solving LPP using the simplex method.3. 2. x1.9 Terminal Questions 1. Minimise Z = 6x1 + 7x2 Subject to the constraints x1 + 3x2 ³ 12 3x1 + x2 ³ 12 x1 + x2 ³ 8 x1 + x2 ³ 0 .8 Summary This unit explains how to solve LPP using the simplex method. 3. The unit also explains the constraints for which you need to introduce the slack.
Z = 9 X1 = 3 X2 = 0 2. Yes 6.10 Answers to SAQs and TQs Answers to Self Assessment Questions 1.8 X1 = 8/3 X2 = 6 3. No 8. True 3. Yes Answers to Terminal Questions 1. Yes 9. Z = 5. True 5. True 4. Yes 7. Yes 10. False 2.3.11 References No external sources of content have been referred for unit 3 .
1 Introduction Learning Objectives 4.3 Formulation of Dual Concepts 4. MB0048-Unit-04-Duality in LPP Unit-04-Duality in LPP Structure: 4.4 Economic Interpretation of Duality Economic interpretation of dual variables 4.Copyright © 2009 SMU Powered by Sikkim Manipal University .5 Sensitivity Analysis Changes in Cj of non-basic variable Change in Cj of a basic variable Change in available resources Calculating the range .2 Importance of Duality Concepts 4.
6 Summary 4.9 References 4.7 Terminal Questions 4.8 Answers to SAQs and TQs Answers to self assessment questions Answers to terminal questions 4. you can say that dual is the µinverse¶ of the primal formulation because of the following reasons.4. · The column co-efficient in the primal constraint is the row co-efficient in the dual constraint. then the dual objective function is µminimisation¶ function and vice-versa. The dual formulation is derived from the same data and solved in a manner similar to the original µprimal¶ formulation. One problem is called the primal. . while the other problem is called the dual. Such two problems are said to be duals of each other. · If the primal objective function is µmaximisation¶ function. In other words.1 Introduction Every linear programming problem (LPP) is associated with another linear programming problem involving the same data and optimal solutions.
in resource availabilities and/or objective function co-efficient. · The RHS column of constants of the primal constraints becomes the row of co-efficient of the dual objective function. you should be able to: · Describe the duality concept · Solve a dual problem · Describe the economical interpretation · Apply sensitivity analysis 4.2 Importance of Duality Concepts The importance of duality concept is due to two main reasons: . Learning objectives By the end of this unit. The concept of duality is useful to obtain additional information about the variation in the optimal solution. This effect is termed as post optimality or sensitivity analysis.· The co-efficients in the primal objective function are the RHS constraint in the dual constraint. These changes could be effected in the constraint coefficient.
dual solutions arise under a number of other conditions. optimal solution. If the primal contains a large number of constraints and a smaller number of variables. · When the primal problem is unbounded. then the optimal solution to the dual is unique. the dual is infeasible. · When the primal problem is infeasible. the optimal dual solution is degenerate. Several of the cases which can arise are: · When the primal problem has a degenerate optimal solution. the dual is unbounded or infeasible. ii.i. · When the primal problem has multiple optimal solutions. However. The interpretation of the dual variable from the loss or economic point of view proves extremely useful in programming future decisions in the activities. the dual has multiple optimal solutions. Self Assessment Questions State Yes or No . the labour of computation can be considerably reduced by converting it into the dual problem and then solving it. Characteristics of dual solutions If the primal problem possesses a unique non-degenerate.
+ a1n xn b1 a21 x1 + a22 x2 + . . . . + a2n xn b2 am1 x1 + am2 x2 + . 2..+ cnxn Subject to the constraints a11 x1 + a12 x2 + . . b2. . . x2.«. . iii. The maximisation problem in the primal becomes a minimisation problem in the dual and vice versa ii. xn 0 To construct a dual problem. . . .cn in the objective function of the primal become b1. you must adopt the following guidelines: i. The coefficients c1.1.bm in the objective function of the dual. . + amn xn bm x1. () type of constraints in the primal become () type of constraints in the dual and vice versa. . It is possible to reverse the dual LPP to primal LPP 4. . c2. Dual LPP always reduces the amount of computation. . ..3 Formulation of Dual Concepts Consider the following LPP Maximise Z = c1x1 +c2x2 + .
ym 0 Formation of dual LPP is easier when the standard form of LPP for maximisation problem must contain ´ type of constraints. . . . Solved Problem 1 Write dual of . c2. + am2 ym c2 a1n y1 + a2n y2 + . . it must contain ´ type of constraints.cn in the constraints of the dual v. . .. y2. The constants b1. . . + am1 ym c1 a12 y1 + a22 y2 + . . .bm in the constraints of the primal become c1. .iv. b2.«. . . + amn ym cn y1. If the primal has n variables and m constraints the dual will have m variables and n constraints vi. +bm ym Subject to the constraints a11 y1 + a21 y2 + . The variables in both the primal and dual are nonnegative Thus the dual problem will be Minimise W = b1 y1 + b2 y2 + . . while for minimisation problem..
0 Solved Problem 2 Write the dual of Min Z = 10x1 + 12x2 Subject to 2x1 +3 x2 10 5x1 +6 x2 20 x1 + 2x2 15 2x1 + 3x2 12 . y3. x2. its dual is Mini W = 15y1 + 10 y2 + 20 y3 Subject to 3y1 + y2 + 5 y3 4 y1 + 2y2 + 2y3 5 y1. Therefore. y2.Max Z = 4x1 + 5x2 Subject to 3x1 + x2 15 x1 +2 x2 10 5x1 + 2x2 20 x1. 0 Solution: The given problem is in its standard form.
Therefore. y3. x2. x2. its dual is . 0 Solved Problem 3 Write the dual of Max Z = 100x1 + 200x2 Subject to 3x1 ± 10 x2 15 +4x1 +15 x2 20 x1. its dual problem is Max W = 10y1 + 20 y2 + 15 y3 + 12y4 Subject to 2y1 + 5y2 + y3 = 2y4 12 6y1 + 2y2 + 3 y3 10 y1. -3x1 + 10x2 -15 Therefore. 0 Solution: First we convert 3x1 ± 10x2 15 to ´ type as shown here. y2. 0 Solution: The given problem is in its standard form.x1.
. 5x1 ± 7x2 -10 is rewritten as -5x1 +7x2 10 Secondly. y 2. write the dual of Max Z = 40x1 + 30x2 Subject to 10x1 +6 x2 15 5x1 +6 x2 -10 x1 + x2 = 9 x1 + x2 10 x1. 0 Solution: Firstly.Mini Z = -15y1 + 20 y2 Subject to -3y1 + 4y2 100 10y1 + 15y2 200 y 1. 0 Solved Problem 4 When the constraints contain =´ sign. x2.
its dual is Mini W = -15y1 + 10 y2 + 9y31 ± 9y311 Subject to 10y1 ± 5y2 + y31 ± y311 40 6y1 + 7y2 + y31 ± y311 30 y1. y2.x1 + x2 = 9 is written as x1 + x2 9 Also x1 + x2 9 this is same as -x1 ± x2 -9 Therefore.x1 ± x2 ± 9 Therefore. the given problem is Max Z = 40x1 + 30x2 Subject to 10x1 + 6 x2 15 .5x1 +7 x2 10 x1 +x2 9 . y31 ± y311 0 Let y31 ± y311= y3 .
[x1 +(x21. Therefore. y 2. its standard form is Max Z = 12x1 + 15x21 -15x211 Subject to 5x1 +3(x21.x211)] -5 .x211) 10 . 0 y3 is unrestricted in sign Solved Problem 5 Write the dual of Max Z = 12x1 + 15x2 Subject to 5x1 +36 x2 10 x1 + x2 5 x1 0 x2 is unrestricted in sign Solution: Let x2 =x21 ± x211 0.Then the dual becomes Max W = 15y1 -5 y2 + y3 Subject to 10y1 ± 5y2 + y3 40 6y1 + 7y2 + y3 30 y 1.
x211 0 Therefore.3 constraint is 3y1 ± y2 15 ««««(4) Constraints 2 and 4 give 3y1 ± y2 = 15 The dual problem is Max W = 10y1 ±15 y2 Subject to 5y1 ± y2 12 3y1 ± y2 =15 y1 0 y2 unrestricted in sign Solved Problem 6 Write the dual of the following LPP Minimise Z = 3x1 ± 2x2 + 4x3 . x21.Or x1 ± x21+ x211 -5 x1.«(2) -3y1 + y2 ± 15 «««««(3) No. dual is 5y1 ± y2 12 ««««.«(1) 3y1 ± y2 15 ««««.
Therefore. y2. y4 and y5 be the dual variables associated with the above five constraints. x2. y3. x1. Then the dual problem is given by Maximise W = 7y1 + 4 y2 ± 10 y3 + 3 y4 + 2y5 Subject to 3y1 + 6y2 ± 7 y3 + y4 + 4y5 3 5y1 + y2 + 2y3 ± 2y4 + 7y5 -2 4y1 + 3y2 + y3 + 5y4 ± 2y5 4 y1. y5 0 Solved Problem 7 . y3. y2. all constraints should be of type. x3 0 Solution: Since the problem is of minimisation. y4.Subject to 3x1 + 5x2 + 4x3 7 6x1 + x2 + 3x3 4 7x1 ± 2x2 ± x3 10 x1 ± 2x2 + 5x3 3 4x1 + 7x2 ± 2x3 2. you have to multiply the third constraint throughout by -1 so that -7x1 + 2x2 + x3 -10 Let y1.
12 and 10 have become the constants in the right hand side of the dual constraints. y2 0 Points to be noted: · The column coefficients in the primal constraint namely (2.Find the dual of Maximise 12x1 + 10x2 Subject to 2x1 + 3x2 18 2x1 + x2 14 x 1. x 2 0 Solution: The µdual¶ formulation for this problem will be Minimise 18y1 + 14y2 Subject to 2y1 + 2y2 12 3y1 + y2 10 y1 >= 0. 1) have become the row co-efficient in the dual constraints. . · The coefficient of the primal objective function namely. 2) and (3.
have become the coefficient in the dual objective function. Maximise Z = 2x1 + 5x2 + 6x3 Subject to 5x1 + 6x2 -x3 3 -2x1 + x2 + 4x 4 x1 ± 5x2 + 3x3 1 -3x1 ± 3x2 + 7x3 6 x1. As there are four constraints in the primal.· The constants of the primal constraints. x2. the objective function of the dual will have 4 variables. namely 18 and 14. · While the primal is a µmaximisation¶ problem the dual is a µminimisation¶ problem Solved Problem 8 Obtain the dual problem of the following primal formulation. · The direction of the inequalities has been reserved. x3 0 Solution: Step 1: Write the objective function of the dual. Minimise r* = 3 w 1 + 4 w 2 + w 3 + 6 w 4 .
Step 2: Write the constraints of the dual. As all the constraints in the primal are µ<¶, the constraints in the dual will be µ>¶. The column COM+ efficient of the primal becomes the row co-efficient of the dual. Constraints 5w1 ± 2w2 + w3 ± 3w4 2 6w1 + w2 ± 5w3 -w4 5 -w1 + 4w2 + 3w3 + 7w4 6 Step 3 : Therefore the dual of the primal is : Minimise Z = 3w1 + 4w2 + w3 + 6w4 Subject to: 5w1 ± 2w2 + w3 ± 3w4 2 6w1+ w2 ± 5w3 ± 3w4 5 - w1 + 4w2 + 3w3 + 7w4 6 w1, w2, w3, w4 >= 0 Solved Problem 9 Obtain the dual of the following linear programming problem. Minimise Z = 5x1 -6x2 + 4x3 Subject to the constraints: 3x1 + 4x2 + 6x3 9
x1 + 3x2 + 2x3 5 7x1 ± 2x2 ± x3 10 x1 ± 2x2 + 4x3 4 2x1 + 5x2 ± 3x3 3 x 1, x 2, x 3 0 Solution: As you can see, one of the primal constraints is a " " constraint while the others are all "´ constraints. The dual cannot be worked out unless all the constraints are in the same direction. To convert this into "´ constraint, multiply both the sides of the equation by "-" sign. After multiplying the constraint by "-" sign, it will become 7x1 + 2x2 + x3 -10. Now that all the constraints are in the same direction and the dual can be worked out, the dual formulation is: Maximise Z = 9w1 + 5w2 ± 10w3 + 4w4 + 3w5 Subject to: 3w1 + w2 ± 7w3 + w4 + 2w5 5 4w1 + 3w2 + 2w3 ± 2w4 + 5w5 -6 6w1 + 2w2 + w3 + 4w4 + -3w5 4 w1, w2, w3, w4, w5 0
Self Assessment Questions Fill in the blanks 3. The coefficients of decision variables in the objective function become quantities on the right hand side of _________ __________. 4. £´ constraints changes to ________ type in dual LP. 5. For every LPP, there exists a unique ________ problem. 4.4 Economic Interpretation of Duality The linear programming problem is thought of as a resource allocation model where the objective is to maximise revenue or profit subject to limited resources. The associated dual problem offers interesting economic interpretations of the LP resource allocation model. Consider a representation of the general primal and dual problems where primal takes the role of a resource allocation model.
In the above resource allocation model, the primal problem has µn¶ economic activities and µm¶ resources. The coefficient cj in the primal represents the profit per unit of activity j. Resource i, whose maximum availability is bi, is consumed at the rate aij units per unit of activity j. 4.4.1 Economic interpretation of dual variables: For any pair of feasible primal and dual solutions, (Objective value in the maximisation problem) (Objective value in the minimisation problem). At the optimum, the relationship holds as a strict equation. Note: Here, the sense of optimisation is very important. Hence, for any two primal and dual feasible solutions, the values of the objective functions, when finite, must satisfy the following inequality.
The strict equality, z = w, holds true when both the primal and dual solutions are optimal. Consider the optimal condition z = w. Given that the primal problem represents a resource allocation model, you can think of z as 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) = å (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. Note: 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. Self Assessment Questions True or False 6. Dual variables represent the worth or unit of a resource.
7. Optimality is reached when the resources are not fully utilised. 8. At optimum level the relationship holds as a strict equation 4.5 Sensitivity Analysis In linear programming, all model parameters are assumed to be constant. However; in real-life situations, the decision environment is always dynamic. Therefore, it is important for the management to know how profit would be affected by an increase or decrease in the resource level, by change in the technological process, and by change in the cost of raw materials. Such an investigation is known as sensitivity analysis or post optimality analysis. The results of sensitivity analysis establishes upper and lower bounds for input parameter values within which they can vary without causing major changes in the current optimal solution. Sensitivity analysis allows you to figure out which data offers a significant impact on the results. This in turn allows you to concentrate on getting accurate data for those items or at least running through several scenarios with various values of the crucial data to get an idea of the range of possible outcomes.
at least one member of basic variable will now be negative and will no longer yield a basic feasible solution. If this occurs. This is because of the following two reasons. you can say that the basic variable is now an infeasible basis. we can obtain a better basic feasible solution of larger z-value by pivoting a non-basic variable with a negative coefficient in row 0.Sensitivity analysis is important because of the following reasons: · Values of LP parameters might change · LP parameters have an uncertainty factor attached to them Any change in an LP¶s parameters affects the optimality of the basic variable. The following six types of changes in LP¶s parameters cause changes in the optimal solution: · Changing the objective function coefficient of a nonbasic variable . In such a case. · A constraint (or number of constraints) may have a negative RHS. If this occurs. · When a variable (or number of variables) in row 0 has a negative coefficient. the basic variable becomes a sub-optimal basis.
An increase in Cj of a variable would mean that resources from other products should be diverted to this more profitable product. B and C. These lamps are processed on three machines X. To find out the optimal solution in order to maximise profit and minimise cost. The reverse is true for a minimisation problem. . Y and Z.· Changing the objective function coefficient of a basic variable · Changing the right-hand side of a constraint · Changing the column of a non-basic variable · Adding a new variable or activity · Adding a new constraint Caselet Luminous lamps produce three types of lamps A. first you find out whether a previously determined optimal solution remains optimal if the contribution rate is changed.
Table 4. you need to determine the upper limit of the profit contribution (Cj) of each non basic variable. The reverse is true for a minimisation problem.1 Changes in Cj of a non-basic variable A non basic variable can be brought on the basis only if its contribution rate is attractive.4.5.2: The final simplex table . Therefore. Consider the final simplex table of the above problem.
· If cj* ± cj > zj ± cj. Therefore. to make zj ± cj value negative or zero that is zj ± cj 0. . which is not greater than its zj.From the above final simplex table. its profit contribution rate cj must exceed Rs. · If cj* ± cj < zj ± cj. Specifically. you can see that profit contribution for product C is Re 1. to bring x3 into the basis. then alternative optimal solution exist. then current optimal solution remains unchanged. In case of c3 = 1 and z3 ± c3 = C3* ± 1 . then a new optimal solution must be derived · If cj* ± cj = zj ± cj.
Minimum =5 .basic variable x4 .C3* +1 = x3 can be introduced in the basis. you observe that corresponding to the non basic variables x3 and x5.y14 >0. Minimum = minimum (11.5. Therefore. If it increases beyond that. 3) = 3 Corresponding to the non. if its contribution rate c3 increases at least Rs . y13.2 Change in Cj of a basic variable Consider the case of product A (x1 column) and divide each zj ± cj entry in the index row by the corresponding coefficient in the x1 row as shown below: . then the current solution will no longer be optimal. 4. y15 <0.Minimum Referring to the final simplex table. therefore.
15 4. ±5 c1* -12 3 i.e.5. To illustrate this. you need to investigate whether a previous optimal solution remains feasible or not.3: Resources table The least positive ratio indicates the number of hours of machine M1 that can be decreased. you can say that the optimal solution is insensitive as long as the changed profit coefficient c1* varies between Rs 7 and Rs. Table 4.Hence. it is important to know the bounds within which each available resource (for instance machine hours) can vary without causing violent changes in the current optimal solution. 7 c1* 15 Thus. divide each quantity in the XB column by the corresponding coefficient in the X4 column of the table. For long term planning.3 Change in available resources If the available resources change. The least negative .
Self Assessment Questions Fill in the blanks 9. 10. The results of sensitive analysis establish ___________ and ________ ___________ for input parameters value. . 11. You can calculate the range of hours for machine M2 and M3 in the same manner. It is interested in knowing the impact of changes in the input parameter values on the optimal solution. The management of a company rarely restricts its interest to the numerical values of an optimal solution. 4. Sensitivity analysis is carried out on _______ simplex table. the range of hours for M1 is to 110.ratio (±10) indicates the increase in the number of hours of machine M1.5. This process is called sensitivity analysis.4 Calculating the range Lower limit = 100 ± = Upper limit = 100 ± (±10) = 110 Therefore. It helps us to study the effect of changes in _______ _______ in objective function.
6 Summary For every linear programming problem there exists a dual linear programming problem.7 Terminal Questions 1. x2 ³ 0 . 4. The dual LPP helps us to reduce the amount of calculation involved in original the LPP. 5x1 + 4x2 ³ 100.4. x1 ³ 0. a) Maximise 2 = 7x1 + 5x2 Subject to constraints x1 + 2x2 £ 6 4x1 + 3x2 £ 12 x1 x2 ³ 0 b) Maximise z = 3x1 + 4x2 Subject to constrains 5x1 + 4x2 £ 200. 8x1 + 4x2 ³ 80. 3x1 + 5x2 £ 150. Write the dual of the following linear programming problems. They also help us to interpret the economic variables more effectively.
x2 ³ 0 4. x1. False 8. Dual 4.8 Answers to SAQs and TQs Answers to Self Assessment Questions 1. 5. Resource.c) Maximise z = 2x1 + x2 Subject to constraints 4x1 + 3x2 £ 12. Yes 3. True 9. True 7. Final 10. 4x1 ± x2 £ 8. levels . 4x1 + x2 £ 8. No 2. Dual 6.
. Minimise w = 200y1 + 150y2 ± 100y3 ± 80y4 Subject to constraints 5y1 + 3y2 ± 5y3 ± 8y4 3 4y1 + 5y2 ± 4y3 ± 4y4 4 y1. lower. y2. a. Minimise W = 6y1 + 12y2 Subject to constraints y1 + 4y2 7 2y1 + 3y2 5 y1 + y2 0 b. y2. Upper. y3. y3. Minimise w = 12y1 + 8y2 + 8y3 Subject to constraints 4y1 + 4y2 + 4y3 2 3y1 + y2 ± y3 1 y1.9 References The following sources have been referred to for additional content for the unit. 0 4. y4 0 c.11. bounce Answers to Terminal Questions 1.
06/lectures/chapter06.· http://www.pdf · http://agecon2.psnacet.3 Transportation Algorithm (MODI Method) .hawaii.pdf Copyright © 2009 SMU Powered by Sikkim Manipal University .tamu. · http://wwwee.eng.carleton. pdf.ca/faculty/chinneck/po/Chapter6.sce.2 Formulation of Transportation Problem (TP) 5. MB0048-Unit-05-Transportation Problem Unit-05-Transportation Problem Structure: 5.pdf · http://www.in/courses/MBA/Linearprogram ming/lecture-11.1 Introduction Learning objectives 5.edu.edu/~jyee/491.edu/people/faculty/mccarlbruce/mccspr/new04.
1 Introduction Welcome to the unit on transportation model in Operations Research Management.6 Summary 5. Transportation model is an important class of linear programs. For a given .5.9 References 5.7 Terminal Questions 5.4 The Initial Basic Feasible Solution North west corner rule Matrix minimum method Vogel¶s approximation method 5.8 Answers to SAQs and TQs Answers to Self Assessment Questions Answers to Terminal Questions 5.5 Moving Towards Optimality Improving the solution Modified distribution method / MODI method / U ± V Method Degeneracy in transportation problem 5.
The cost of transportation from the fictitious destination to all sources and from all destinations to the fictitious sources are assumed to be . 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.supply at each source and a given demand at each destination. each of which has available ai (i = 1. n) units of products. Here ai and bj are positive integers. 2« m) units of homogeneous product and n destinations. the model studies the minimisation of the cost of transporting a commodity from a number of sources to several destinations. (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.. 2«. It is assumed that the total supply and the total demand are equal. The transportation problem involves m sources. each of which requires bj (j = 1. The objective is to develop an integral transportation schedule that meets all demands from the inventory at a minimum total transportation cost.
Let xij be number of units of the homogenous product to be transported from source i to the destination j Then objective is to Minimise z = Subject to . Learning objectives By the end of this unit. you should be able to: · Formulate the transportation problem · Find the initial basic feasible solution · Compare the advantages of various methods of finding initial basic feasible solution · Solve the degeneracy in the transportation problem · Apply the model to minimise the cost of transporting a commodity 5.2 Formulation of Transportation Problem The standard mathematical model for the transportation problem is as follows.zero so that total cost of transportation will remain the same.
With all xij ³ 0 and integrals Theorem: A necessary and sufficient condition for the existence of a feasible solution to the transportation problem (2) is: Self Assessment Questions Fill in the blanks 1. Transportation problem develops a schedule at _______ and ________. 3. 2. The number of rows and columns need not always be ___________. Rather than determining a first approximation by a direct application .3 Transportation Algorithm (MODI Method) The first approximation to (2) is integral. Therefore. you always need to find a feasible solution. Transportation problems are a special type of ___________. 5.
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. it is more efficient to work with the transportation table given below. In the first stage. Table 5. In the second stage.of the simplex method. you test the basic feasible solution for its optimality either by MODI method or by stepping stone method.1: Transportation Table . 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) Vogel¶s approximation method. The transportation algorithm is the simplex method specialised to the format of table involving the following steps: i) Finding an integral basic feasible solution ii) Testing the solution for optimality iii) Improving the solution.
4 The Initial Basic Feasible Solution Let us consider a TP involving m-origins and ndestinations. Matrix-minima method gives optimum solution. Any feasible solution satisfying m + n ± 1 of the m + n constraints is a redundant one and hence it can be deleted. Transportation problems can also be solved by simplex method. a feasible solution always exists. is a sufficient and necessary condition for getting a feasible solution. 5. In transportation problems. 5. This also means that a feasible solution to . 6.Self Assessment Questions State Yes or No 4. Since the sum of origin capacities equals the sum of destination requirements.
a TP can have only m + n ± 1 positive component. 5. 1) in the transportation table. This value of x11 is entered in the upper left hand corner (small square) of cell (1. This can be achieved either by inspection or by following some simple rules. Move down vertically to the second row and make the second allocation of magnitude: . the capacity of origin O is exhausted and the requirement at destination D1 is still not satisfied.4. b1) Either the capacity of origin O1 is used up or the requirement at destination D1 is satisfied or both. Then at least one variable in the first column will have to take on a positive value. It is always possible to assign an initial feasible solution to a TP. satisfying all the rim requirements. Step 2: If b1 > a1. otherwise the solution will degenerate.1 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. You can begin by imagining that the transportation table is blank that is initial xij = 0. The simplest procedures for initial allocation are discussed in the following section.
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. b2) in the cell (1. b2) = 0 in the cell (1.x21 = min (a2. moving down towards the lower right corner of the . If b1 = a1. If a1 > b1 . b1 ± b2) = 0 in the cell (2. the origin capacity of O1 is completely exhausted as well as the requirement at destination is completely satisfied. 2) OR x21 = min (a2. Make the second allocation of magnitude x12 = min (a1 ± a1. then there is a tie at the second allocation. but the capacity of origin O1 is not completely exhausted.the requirement at destination D1 is satisfied. Move to the right in a horizontal position to the second column to make the second allocation of magnitude: x12 = min (a1 ± x11. An arbitrary tie breaking choice is made. b1 ± x21) in the cell (2. 1) This either exhausts the capacity of origin O2 or satisfies the remaining demand at destination D1. 2) This either exhausts the remaining capacity of origin O1 or satisfies the demand at destination D2.
transportation table until all the rim requirements are satisfied. .
Let it be cij .2 Matrix minimum method Step 1: Determine the smallest cost in the cost matrix of the transportation table. Step 3: Repeat steps 1 and 2 to reduce transportation table until all the rim requirements are satisfied. Allocate xij = min ( ai. j ) Step 2: If xij = ai cross the ith row of the transportation table. make an arbitrary choice among the minima. Whenever the minimum cost is not unique.5. If xij = ai= bj cross either the ith row or the ith column. but not both. If xij = bj cross the ith column of the transportation table. . decrease ai by bj and proceed to step 3. bj) in the cell ( I. decrease bj by ai and proceed to step 3.4.
3 Vogel¶s approximation method .4.5.
The Vogel¶s approximation method (VAM) takes into account the least cost cij, but also the cost that just exceeds cij. The steps of the method are given below. Step 1: For each row of the transportation table, identify the smallest and the next to smallest costs. Determine the difference between them for each row. Display them alongside the transportation table by enclosing them in parenthesis against the respective rows. Similarly, compute the differences for each column. Step 2: Identify the row or column with the largest difference among all the rows and columns. If a tie occurs, use any arbitrary tie breaking choice. Let the greatest difference correspond to the ith row and let Cij be the smallest cost in the ith row. Allocate the maximum feasible amount xij = min (ai, bj) in the (i, j)th cell and cross off the ith row or the jth column in the usual manner. Step 3: Recompute the column and row differences for the reduced transportation table and go to step 2. Repeat the procedure until all the rim requirements are satisfied. Remarks: 1. A row or column difference´ indicates the minimum unit penalty incurred by failing to make an allocation to the last smallest cell in that row or column.
2. It is clear that VAM determines an initial basic feasible solution, which is very close to the optimum solution. But the number of iterations required to reach the optimal solution is small. Caselet A company has four warehouses. Each warehouse supplies inventory to five stores. The company needs to develop an integral transportation schedule that meets all demands from the inventory at a minimum total transportation cost. Assuming that the total supply and the total demand are equal, the company can use the transportation model of a LPP to arrive at a basic feasible solution.
Self Assessment Questions State True or False 7. In matrix-minima method, you start allocating from the left-top cell of the table. 8. In Vogel¶s approximation method, you first construct penalty and then start allocating. 9. North-west corner rule gives optimum solution. 10. Vogel¶s approximation method gives solution near to the optimum solution. 5.5 Moving Towards Optimality After evaluating an initial basic feasible solution to a transportation problem, the next question is how to get the optimum solution. The basic techniques are illustrated below. 1. Determine the net evaluations for the non±basic variables (empty cells) 2. Determine the entering variable 3. Determine the leaving variable 4. Compute a better basic feasible solution
5. Repeat steps (1) to (4) until an optimum solution has been obtained 5.5.1 Improving the solution Definition: A loop is the sequence of cells in the transportation table such that: i) Each pair of consecutive cells lie either in the same row or same column ii) No three consecutive cells lies in the same row or same column iii) The first and the last cells of the sequence lies in the same row or column iv) No cell appears more than once in the sequence Consider the non-basic variable corresponding to the most negative of the quantities cij ± ui ± vj, calculated in the test for optimality; it is made the incoming variable. Construct a loop consisting exclusively of this incoming variable (cell) and current basic variables (cells). Then allocate the incoming cell to as many units as possible after appropriate adjustments have been made to the other cells in the loop. Avoid violating the supply and demand constraints, allow all allocations to remain non-negative and reduce one of the old basic variables to zero (where upon it ceases to be basic).
5.5.2 Modified distribution method / Modi method / U±V method Step 1: Under this method, you construct penalties for rows and columns by subtracting the least value of row / column from the next least value. Step 2: Then select the highest penalty constructed for both row and column. Enter that row/column and select the minimum cost and allocate min (ai, bj) Step 3: Delete the row or column or both if the rim availability/ requirements are met. Step 4: You repeat steps 1 to 2 to till all allocations are over. Step 5: For allocating all forms of equations ui + vj = cj, set one of the dual variable ui / vj to zero and solve for others. Step 6: Use this value to find Dij = cij ± ui ± vj. If all Dij ³ 0, then it is the optimal solution. Step 7: If any Dij £ 0, select the most negative cell and form loop. Starting point of the loop is positive and alternative corners of the loop are negative and positive. Examine the quantities allocated at negative places. Select the minimum, add it to the positive places and subtract from the negative places.
Step 8: Form new table and repeat steps 5 to 7 till Dij ³ 0 Balanced TP .
Unbalanced T.P .
otherwise the basic solution degenerates. the transportation problem is a degenerate one. you must augment the positive variables by as many zero-valued variables as is necessary to complete the required m + n ± 1 basic variable. The ¶s are kept in the transportation table until temporary degeneracy is removed or until the optimum solution is attained. The selected zero valued variables are designated by allocating an extremely small positive value to each one of them. At that point. n destination. The cells containing these extremely small allocations are then treated like any other basic cells. we set each = 0. These zero-valued variables are selected in such a manner that the resulting m + n ± 1 variable constitutes a basic solution. transportation problem can have at the most m+n-1 positive basic variables (non-zero). whichever occurs first. 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.3 Degeneracy in transportation problem It is shown that a basic solution to an m-origin. It follows that whenever the number of basic cells is less than m + n ± 1. .5.5.
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. The rest of the procedure is exactly the same as discussed above in case 1. Introduce µÎ¶ in unallocated minimum cost cell to avoid forming a loop. which are simultaneously driven to zero. These zerovalued variables are selected from among those current basic variables.Case 2: The degeneracy develops at the iteration stage. . To resolve degeneracy. Note: The extremely small value is infinitely small and it never affects the value it is added to or subtracted from. the positive variables are augmented by as many zero-valued variables as it is necessary to complete m+n-1 basic variables.
. you studied the degeneracy in transportation problem with examples on obtaining an optimum basic feasible solution. All the values of should be __________ or _________ for the solution to be optimum. 5. 12. If the number of allocation is less than _________ then it is said to be a degenerate transportation problem. In unbalanced transportation problem . Further.6 Summary 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. 5. 13. Solve the following transportation problem.Self Assessment Questions Fill in the blanks 11. such as north-west corner rule.7 Terminal Questions 1. In this unit. matrix minimum method and Vogel¶s approximation method. you have learnt several different techniques for computing an initial basic feasible solution to a transportation problem.
4. Determine the optimal distribution for the company so as to minimise the total transportation cost. Solve the following transportation problem.2 truck loads. A company has three cement factories located in cities 1. The transportation cost per truck load of cement (in hundreds of rupees) from each plant to each project site is as follows.3 which supply cement to four projects located in towns 188.8.131.52 truck loads of cement respectively and the daily cement requirements of the projects are respectively 7.2.3. Each plant can supply daily 6. 9 12 9 6 9 10 5 7 3 7 7 5 5 6 6 5 9 11 3 11 2 .3.1. 3.2.
Yes 6.8 Answers to SAQs and TQs Answers to Self Assessment Questions 1. True 9. Yes 5. m + n ± 1 Answers to Terminal Questions . True 11. Not equal to 13. LPP 2. Equal 3. False 8. Minimum cost 4. No 7. False 10.6 8 11 2 2 10 9 4 4 6 2 4 2 22 5. zero 12.
4 Routing Problem Unbalanced AP .1 Introduction Learning Objectives 6. MB0048-Unit-06-Assignment Problem Unit-06-Assignment Problem Structure: 6. 000 3 The minimum transportation cost is Rs. 796 2 Optimal transportation cost is Rs. The optimal transportation cost is Rs.3 Hungarian Method Algorithm 6.2 Mathematical Formulation of the Problem 6.1. Copyright © 2009 SMU Powered by Sikkim Manipal University .9 References No external sources have been referred for this unit. 112 as 5. 10.
6 Summary 6.1 Introduction Welcome to unit six of Operations Research Management on Assignment Problem.9 References 6.Infeasible Assignments Maximisation in AP 6.7 Terminal Questions 6. The assignment problem is a special case of the transportation problem. such as assignment of machines to jobs. In other words. when the problem involves the allocation of µn¶ different facilities to µn¶ different tasks. it is often termed as an assignment problem. where the objective is to minimise the cost or time of completing a number of jobs by a number of persons. .5 Travelling Salesman Problem 6.8 Answers to SAQs and TQs Answers to Self Assessment Questions Answers to Terminal Questions 6. This model is mostly used for planning. maximise revenue and sales efficiently. The assignment model is useful in solving problems.
there are µn¶ possible assignments. You can then determine an assignment of jobs to the machines to minimise the overall cost. Let¶s say there are µn¶ jobs in a factory having µn¶ machines to process the jobs. we will study an efficient method for solving assignment problems. One way of finding an optimal assignment is to write all the µn¶ possible arrangements. The assignment is to be made in such a way that each job can associate with one and only one machine. when processed by machine j (=1« n) is assumed to incur a cost Cij. evaluate their total cost and select the assignment model offering minimum cost. The cost data is given as a matrix where rows correspond to jobs and columns to machines and there are as many rows as the number of columns. In this unit. If each person is able to do . travelling salesman problem and many more similar situations. It may be noted that with µn¶ facilities and µn¶ jobs. This gives rise to cost differences. Assignment becomes a problem because each job requires different skills and the capacity or efficiency of each person with respect to these jobs can be different. The number of jobs and number of machines should be equal. This method can be unfeasible due to involvement of computational procedures.assignment of salesman to sales territories. A job i (=1« n).
These limitations are peculiar to assignment problems only. There is only one assignment in each row and each column. of rows = No. you have number of origins. Therefore. of columns . Let¶s first focus on a balanced assignment problem. The cost element is given and is a square matrix and requirement at each destination is one and availability at each origin is also one.all jobs with same efficiency then all costs will be the same and each job can be assigned to any person. A balanced assignment problem is one where the number of rows = the number of columns (comparable to a balanced transportation problem where total demand =total supply). However if you compare this to a transportation problem. which equal the number of destinations. Additionally. When assignment is a problem it becomes a typical optimisation problem. you will find that a general transportation problem does not have the above mentioned limitations. Balanced assignment problem: No. Therefore. you can compare an assignment problem to a transportation problem. the total demand is equal to the total supply. An assignment problem can be either balanced or unbalanced.
.1: Steps to solve the minimisation case for an assignment problem Step 1: Determine the total opportunity cost matrix a) Arrive at a column opportunity cost matrix by subtracting the lowest entry of each column of the given payoff matrix from all the entries in the column. The result of step 1b gives the total-opportunity-cost matrix.Minimisation case for an assignment problem: You need to perform the following steps to solve the minimisation case for an assignment problem: Figure 6. b) Then subtract the lowest entry of each row of the matrix obtained in (a) from all the entries in its row.
Make a complete assignment so that the total opportunity cost involved in the assignment is zero. the problem can be solved. The result of steps 3a and 3b is a revised total opportunity cost matrix. Step 3: Revise the total opportunity cost matrix a) Subtract the lowest entry in the uncovered cells of the current total opportunity cost matrix from all the uncovered cells. b) Add the same lowest entry to only those cells in which the covering lines of step 2 cross. b) If the number of lines in step 2a equals the number of rows (or columns) of the matrix.Step 2: Determine whether an optimal assignment can be made a) Cover all the zeroes of the current total-opportunitycost matrix with the minimum possible number of horizontal and vertical lines. Step 4: Repeat steps 2 and 3 until an optimal assignment having a total opportunity cost of zero can be made. proceed to step 3. . c) If the number of lines drawn in step 2a is less than the number of rows (or columns) of the matrix.
you should be able to: · Formulate mathematically an assignment problem · Solve a routing problem · Describe the travelling salesman problem . in this unit. we will focus on the most commonly used method.2: Methods to solve assignment problem Learning objectives By the end of this unit. Figure 6.You can solve an assignment problem by any of the following four methods. · Enumeration method · Simplex method · Transportation problem · Hungarian method However. that is the Hungarian method to solve the assignment problems.
j =1« n).2 Mathematical Formulation of the Problem Let xij be a variable defined by Since only one job is assigned to each machine. the total assignment cost is given by z= xij cij Thus the assignment problem takes the following mathematical form Determine xij 0 (i. you have xij = 1 and xij = 1 Hence.· State the significance of the assignment problem · Compute the problem using the Hungarian method · Solve practical problems. such as routing problems and travelling salesman problems 6. Minimise z = xij cij .
Subject to the constraints xij = 1 j =1. The number of facilities should be equal to the number of resources. 2. 6. Adopt the following steps . 2. 3.3 Hungarian Method Algorithm Hungarian method algorithm is based on the concept of opportunity cost and is more efficient in solving assignment problems. if you add or subtract a real number to or from each element of a row or column of the cost matrix. Self Assessment Questions State True or False 1. In an AP. 2« n With xij = 0 or 1 Note: In an assignment problem. n And xij = 1 i = 1. the constraints are of equality type. then the optimum assignment for the modified matrix is also optimum for the original one. The decision variables can take on any value.
If the number of assignments is equal to number of rows present. Step 4: Assign column wise if there is only one zero in that column and cross other zeros in that row. Look for assigned zero in that column. you have arrived at an optimal solution. Step 6: Mark (P) the unassigned rows. if not. Repeat this process till all makings are over. Step 2: Prepare column reduced matrix by subtracting minimum value of the column from the other values of that column. Step 5: Repeat steps 3 and 4 till all zeros are either assigned or crossed. then proceed to step 6. Look for crossed zero in that row. Step 3: Assign zero row-wise if there is only one zero in the row and cross (cancel) (X) other zeros in that column. Mark the column containing the crossed zero. . Mark the row containing assigned zero.mentioned below to solve an AP using the Hungarian method algorithm: Step 1: Prepare row ruled matrix by selecting the minimum values for each row and subtract it from other elements of the row.
The assignment algorithm applies the concept of opportunity costs. Step 10: Repeat steps 5 to 7 till number of allocations = number of rows. The number of straight line drawn will be equal to number of assignments made. Select the minimum. d) Prepare a new table. .Step 7: Draw straight line through unmarked rows and marked column. If we do one thing. a) Subtract it from uncovered elements. The cost of any kind of action or decision consists of the opportunities that are sacrificed in taking that action. Step 8: Examine the uncovered elements. we cannot do another. b) Add it at the point of intersection of lines. Step 9: Repeat steps 3 to 7 till optimum assignment is obtained. c) Leave the rest as it is.
you are going to consider the special type of routing problem that occurs frequently in OR ± the travelling salesman problem. 6. A number of different constraints may be placed on acceptable routes for instance. The problem is to select the route that yields minimum cost.Self Assessment Questions State Yes or No 4. . not returning to the node passed or passing through each node just once. you prepare row-reduced matrix. It has successfully been applied in transportation and communication problems.4 Routing Problem Network scheduling is a technique for planning and scheduling of large projects. These kinds of problems are called as routing problems. There can be more than one allocation in a row. A wide variety of problems other than routing may be developed in connection with the construction and utilisation of networks. The number of assignments should be equal to the number of rows for an optimum solution. A typical network problem involves finding route from one node (origin) to another (destination) between which alternative paths are available at various stages of the journey. In Hungarian method. 5. 6. Here.
the number of machines may be more than the number of jobs or the number of jobs may be more than the number of machines. of columns.1 Unbalanced AP Unbalanced assignment is an assignment where the number of rows is not equal to the number of columns and vice versa. . Unbalanced assignment problem: No. The dummy rows or columns will contain all costs elements as zero. In such a situation. For example. of rows No. This balances the problem and then you can use Hungarian method to find optimal assignment. you have to introduce dummy row/column(s) in the matrix.4.6.
2 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.4.6. The .
After inserting a high value a at the cell we need to apply Hungarian method to solve the problem. restricting the entry of this pair of job ± machine or resource ± activity into the final solution.solution of the assignment problem should take into account these restrictions so that the infeasible assignment can be avoided. . thereby. This can be achieved by assigning a very high cost (say or M) to the cells where assignments are prohibited.
To do so.6. 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. Therefore.3 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. 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.4.
the profit factor differs for each assignment. . However. Each machine is capable of stitching all the required designs and patterns. To do so.Caselet A tailoring unit has four sewing machines of different makes. the unit needs to carry out an optimal assignment exercise of assigning the right jobs to the right machines. The unit is looking at maximising profit.
Self Assessment Questions Fill in the blanks 7. In unbalanced AP, the number of rows ________ to number of column. 8. Hungarian method cannot be applied directly to _________ problem. 9. If some jobs cannot be assigned to some machines, then it is called _________ assignment problem. 6.5 Travelling Salesman Problem Suppose a salesman has to visit µn¶ number of cities. He wishes to start from a particular city, visit each city once and then return to his starting point. The objective is to select the sequence to visit the cities in such a way that his total travelling time is minimised. Starting from a given city, the salesman will have total of (n-1) different sequences. Further, since the salesman has to visit all the µn¶ number of cities; the optimal solution remains independent of selection of the starting point. The problem can be represented as a network where the nodes and arcs represent the cities and the distance between them respectively. Assume that in a five city problem, a round trip of the salesman is given by the following arcs.
(3,1), (1,2), (2,4), (4,5), (5,3) These arcs in order are the first, second, third, fourth and fifth directed arcs for the trip. Generally the kth directed arc represents the kth leg of the trip that is on leg k, the salesman travels from city i to city j (i, j = 1, 2« n; ) To formulate the problem, whose solution will yield the minimum travelling time, let the variables xijk be defined as:
Where, i, j and k are integers that vary between 1 and n Following are the constraints of the problem. a) Only one directed arc may be assigned to a specific k, thus xijk = 1 k =1, 2, 3«n
b) Only one other city may be reached from a specific city i, thus xijk =1, i = 1, 2«, n
c) Only one other city can initiate a direct arc to a specified city j, thus xijk =1, j =1, 2« n d) Given the kth directed arc ends at some specific city j, the (k+1)th directed arc must start at the same city j; thus xijk = xjr ( k +1) for all j and k.
These constraints ensure that the round trip will consist of connected arcs. The objective function is to minimise z= dij xijk
Where dij is the distance from city i to city j Self Assessment Questions Fill in the blanks 10. In travelling salesman problem, the objective is to visit each cities ________ __________. 11. Salesman has ________ different sequences if n are the number of cities to be visited. 6.6 Summary
This unit on assignment problems focuses on a special type of transportation problem, where the objective is to allocate µn¶ number of different facilities to µn¶ 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. 6.7 Terminal Questions 1. Four jobs are to be done on four different machines. The cost in (rupees) of producing ith on the j th machine is given below:
Assign the jobs to different machines to minimise the total cost. 2. A marketing manager has 5 salesmen and 5 sales districts. Considering the capabilities of the salesman and the nature of districts, the marketing manager estimates that sales per month (in hundred rupees) for each salesman in each district would be as follows.
Find the assignment of salesman to districts that will result in maximum sales. 3. In a plant layout, there are five vacant places. The plant orders four machines to be installed in the vacant places. The cost of installing is as follows: M/G M1 M2 M3 M4 A 9 12 14 B 11 9 11 8 C 15 14 12 D 10 10 11 7 E 11 9 7 8
Find the optimum assignment. 4. Find the assignment that maximises the total sale. Zone Sales men M1 M2 1 42 30 2 35 25 3 28 20 4 21 15
6.8 Answers to SAQs and TQs Answers to Self Assessment Questions 1. True 2. True 3. False 4. True 5. True 6. False 7. 8. Maximisation problem 9. Infeasible 10. Only once 11. (n-1) Answers to Terminal Questions 1. The optimum assignment policy is Job1 to machine 2, Job 2 to machine 4
100. 19.pdf Copyright © 2009 SMU . Optimal assignment policy is salesman 1 to district B. M3 ± E. 49 2.res. M1 ± 1.in/bitstream/123456789/827/1/CHA PTER-4+AP++-+ Formatted. And the minimum assignment cost = Rs. M4 ± D Total 38 4. M1 ± A2.scribd.com/doc/13259687/QMB-FromLinnyorg · http://nsdl.com/doc/13259677/AssignmentProblem · http://www.9 References The following resources have been referred to for additional content for the unit. 2 to A. (11+13+14+11) = Rs.Job 3 to machine1. 3 to E. M2 ± 2. M2 ± B. · http://www.scribd. M3 ± 3. Job 4 to machine 3. Hence the maximum sales = Rs. 4 to C and 5 to D. 3. (38+40+37+41+35) 100 = Rs.niscair. M4 ± 4 Total 99 6.
2 All and Mixed Integer Programming Planning 7. MB0048-Unit-07-Integer Programming Problem Unit-07-Integer Programming Problem Structure: 7.Powered by Sikkim Manipal University .7 Terminal Questions 7.8 Answers to SAQs and TQs Answers to self assessment questions .6 Summary 7.3 Gomory¶s all IPP Method Construction of Gomory¶s constraints 7.4 All IPP Algorithms 7.1 Introduction Learning Objectives 7.5 Branch and Bound Technique Branch and bound algorithm 7.
Answers to terminal questions 7. in distribution.1 Introduction Welcome to the seventh unit on Integer Programming Problem in Operations Research Management. a shipment must involve a discrete number of trucks or aircrafts or freight cars. The Integer Programming Problem (IPP) is a special case of Linear Programming Problem (LPP). where all or some variables are constrained to assume non-negative integer values. in manufacturing.9 References 7. the production is frequently scheduled in terms of batches. Learning objectives By the end of this unit. You can apply this problem to various situations in business and industry where discrete nature of the variables is involved in many decision-making situations. For instance. you should be able to: · Write an integer programming problem (IPP) · Solve an integer programming problem (IPP) using Gomory¶s method · Apply the branch and land technique . lots or runs.
it is called an all (or pure) integer programming problem. . .2.n Where xj being an integral value for j = 1. « . k n. . + ain xn =bi .m and xj 0 j = 1. « .2 All and Mixed Integer Programming Problem (IPP) An integer programming problem can be described as follows: Determine the value of unknowns x1.+ cnxn Subject to the constraints ai1 x1 + ai2 x2 + . x2.7. i = 1. 2. « . Integer programming is applied to problems that involve discrete variables.«. 2. xn So as to optimise z = c1x1 +c2x2 + . . Self Assessment Questions True or False: 1. then the problem is known as a mixed integer programming problem. If some of the variables are restricted to take integral value and the remaining (n ± k) variables take any non-negative value. If all the variables are forced to take only integral value that is k = n. .
ignoring the restriction of integral values. On addition of the secondary constraint. 7. . the given IPP is modified by inserting a new constraint called Gomory¶s constraint or secondary constraint. called secondary or Gomory¶s constraints is important and needs special attention. Otherwise. An optimum integer solution will be reached eventually after introducing enough new constraints to eliminate all the superior non-integer solutions. If some variables take on non-negative values. This constraint represents necessary conditions for integrability and eliminates some non-integer solution without losing any integral solution. the problem is solved using dual simplex method to obtain an optimum integral solution. if all the variables have integer values. then it is known as pure IPP. The construction of additional constraints.2. In the optimum solution.3 Gomory¶s All ± IPP Method An optimum solution to an IPP is obtained by using the simplex method. the current solution will be the required optimum integer solution. then an optimum inter-solution is obtained. or else a new constraint is added to the modified LPP and the procedure is repeated till the optimum solution is derived. If all the values of the variables in the solution are integers.
The above equation can be rewritten as x2 = y10 . x3 ] = [y10. let the solution be displayed in the following simplex table.1: Simplex table yB xB y2 y10 y3 y20 y00 y1 y11 y21 y01 y2 y12 y22 y02 y3 y13 y23 y03 y4 y14 y24 y04 The optimum basic feasible solution is given by xB = [x2. we can assume that y10 is fractional. max z = y00 Since xB is a non-integer solution. Table 7. y20].y11 x1 .y14 x4 .3. The constraint equation is y10 = y11 x1 + y12 x2 + y13 x3+ y14 x4 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).1 Construction of Gomory¶s constraints Consider a LPP or an optimum non±integer basic feasible solution. With the usual notations.7.
f1j for j = 0.f11 x2 . You can split each of yij in (1) into an integral part Iij . This contradicts that 0 < fij < 1 for j = 0.I10 _____ (2) If you compare (1) and (2). and a non-negative fractional part. since y10 0 the fractional part of y10 must also be non-negative. The desired Gomory¶s 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.3. 3. 4. 2.This is a linear combination of non-basic variables. you can write it as: I10 + f10 = (I11 + f11) x2 + (I14 + f14) x4 Or f10 . 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.4.f14 x4 = x2 + I11 x1 + I14x4 . After the breakup (1) above. Then f10 = h + f11 x1 + f14 x4 is greater than one.2. 1. Thus Gomory¶s constraint is . Now.1.
the optimum simplex table looks like table 7. After adding the constraint.2 given below. Table 7. the optimal solution is unfeasible. . the above referred procedure is applied for constructing second Gomory¶s constraint. Thus the dual simplex method is to be applied for obtaining an optimum feasible solution. After obtaining this solution.Where Gsla (1) is a slack variable in the above first Gomory¶s constraint The additional constraint to be included in the given LPP is towards obtaining an optimum all integer solution.2: Optimum simplex table yB xB y1 y10 y2 y20 Gsla(1) ± f10 y00 y1 y11 y21 ± f11 y01 y2 y12 y22 0 y02 y3 y13 y23 0 y03 y4 y14 y24 ± f14 y04 Gsla(1) 0 0 1 y05 Since ± f10 is negative. The process is to be continued till all the integer solution has been obtained. An optimum solution to IPP is first obtained by using ______________. Self Assessment Questions Fill in the blanks: 3.
With the addition of Gomory¶s constraint. Figure 7. 7.4.4 All IPP Algorithm The iterative procedure for the solution of integer programming problem is as follows.1: Iterative procedure of IPP . the problem is solved by ______ ______ ________.
Choose the largest fraction of bis to find Let it be or write is as .Step 1: Convert the minimisation IPP into maximisation. Step 4: Examine the constraint equations corresponding to the current optimum solution. if needed to convert the inequations into equations and obtain the optimum solution of the given LPP by using simplex algorithm. Step 3: Test the integrality of the optimum solution a) If the optimum solution contains all integer values. b) If the optimum solution does not include all integer values. if it is in minimisation form. Ignore the integrality condition. then proceed to the next step. Let these equations be represented by Where denotes the number of variables and the number of equations. an optimum basic feasible integer solution has been obtained. Step 2: Introduce the slack or surplus variables.
Find the new optimum solution by dual simplex algorithm so that Gsla (1) is the initial leaving basic variable. then return to step 4 and repeat the process until an optimum feasible integer solution is obtained. Step 8: If the new optimum solution for the modified LPP is an integer solution. Step 6: Find the Gomorian constraint And add the equation To the current set of equation constraints Step 7: Start with a new set of equation constraints.Step 5: Express the negative fractions if any. If it is not an integer solution. . in the kth row of the optimum simplex table as the sum of a negative integer and a non-negative fraction. it is also feasible and optimum for the given IPP.
.Self Assessment Questions True or False: 5.5. Optimum values in an pure IPP can be x=2 and y=3.(3) . The most general technique for a solution of such constrained optimisation problems is the branch and bound technique. 7.. j = 1. ««.5 Branch and Bound Technique Sometimes a few or all the variables of an IPP are constrained by their upper or lower bounds or by both. The technique for a maximisation problem is discussed below: Let the IPP be Maximise ±±±±±±±±±±±±±±±±±±±±±±±±±±±± (1) Subject to the constraints ±±±±±±±±±±±±±±±±±±± (2) xj is integer valued . 2. The technique is applicable to both all (or pure) IPP as well as mixed IPP. Do you select the variable for Gomory¶s constraint whose fractional value is more? 6. r (< n) ±±±±±±±±±±± ±±±±±±.
.xj > 0 «««««««. But (5) for j = 1 is modified to be 2 x1 U1 in one problem and L1 x1 1 in the other. and let I be some integer value satisfying Lj £ I £ Uj ± 1. «.. (4) and (5).66 (for example). and it yields an optimal solution to LPP ± (1). (2) and (4). j = r + 1. Then clearly an optimum solution (1) through (5) also satisfies either linear constraint. Further to . let¶s assume that there were no integer restrictions (3). we can assign lower and upper bounds for the optimum values of the variable by Lj xj Uj j = 1. Consider any variable xj. n ±±±±±±-±±±±± ±±±±±±±±±± (4) Further let us suppose that for each integer valued xj. 2. x j ³ I + 1 ±±±±±±±±±±±±±±±±±±±±±±±±±±±±±± (6) Or the linear constraint xj I ±±±±±±±±±±±±±±±±±±±±±±± ±±±±±±± (7) To explain how this partitioning helps. Then you formulate and solve two LPPs each containing (1). ««. This indicates x1 = 1. r ±±±±±±±±±±±±±±±±±±±±±±±±±± (5) This is the main idea behind the branch and bound technique´. (2).
To start with (the 0th iteration) the master list contains a single LPP consisting of (1). Let us now discuss the procedure that specifies how the partitioning (6) and (7) can be applied systematically to eventually get an optimum integer-valued solution.1 Branch and bound algorithm At the tth iteration (t = 0. Let¶s start with an initial lower bound for z. process an optimal solution satisfying integer constraint (3). the algorithm that specifies how to apply the partitioning (6) and (7) in a systematic manner to finally arrive at an optimum solution.each of these problems. Then the solution having the larger value for z is clearly the optimum for the given IPP. it usually happens that one (or both) of these problems have no optimal solution satisfying (3). you also have a list of LPPs (to be called master list) differing only in the bounds (5). In addition to the lower bound z(0). 7. apply the following steps to get an optimum integer. step wise.5. Now let us discuss. This lower bound may be taken as the starting Lj for some xj. (4) and (5). and thus some more computations are required. (2). which is less than or equal to the optimal value z*. . However. say z(0) at the first iteration. 1. 2 «).
. Let z(t+1) be the associated optimum value of z. go to step 1. p. except that. «. or else no integer valued feasible solution exists. Add two LPPs to the master list. Otherwise stop the process. return to step 0. Note: At the termination of the algorithm. Step 3: Select any variable xj. chosen in step 0. otherwise go to step 2 Step 2: If the obtained optimum solution satisfies the integer constraints (3) then record it. the lower bound on xj is replaced by Let z(t+1) = z(t). that does not have an integer value in the obtained optimum solution to the LPP. Let denote this optimal value of xj. then let z(t+1) = z(t) and return to step 0. + 1. it is optimum. 2. choose an LPP from it. if a feasible integer valued solution yielding z(t) has been recorded. j = 1. Otherwise move to step 3. Step 1: Obtain the optimum solution to the chosen problem. return to step 0.Step 0: If the master list is not empty. If either i) It has no feasible solution or ii) The resulting optimum value of the objective function z is less than or equal to z(t). . These LPPs are identical to the LPPs chosen in step 0.
7 Terminal Questions 1. 7. 8. This unit also describes two algorithms to determine the optimal solution for an integer programming problem.6 Summary This chapter examines the programming model in which the assumption of divisibility is weakened.Self Assessment Questions True or False: 7. We start the technique with lower bound. 7. Branch and bound technique is applied when some variables have upper or lower bounds. Use Branch and Bound technique to solve the following problem Maximise z = 3x1 + 3x2 + 13 x3 Subject to ± 3x1 + 6x2 + 7x3 8 6x1 ± 3x2 + 7x3 8 . One is the cutting plane algorithm devised by Gomory and the other is the branch and bound algorithm developed by Land Doig.
Correct 6.8 Answers to SAQs and TQs Answers to Self Assessment Questions 1. False Answers to Terminal Questions 1. What is integer programming? 3. True 8. . x3 = 1. Simplex method 4. Dual simplex method 5. Wrong 7. False 3. 2.0 xj 5 And xj are integer j = 1.P.P. z* = 13. is x1 = x2 = 0. True 2. At the end of the 8th iteration we get the optional solution to the I. Explain the Gomory¶s cutting plane all integer algorithm of an IPP? 7. 3 2.
1 Introduction Learning objectives 8.3 Analysis of Queuing Process 8. MB0048-Unit-08-Infinite Queuing Models Unit-08-Infinite Queuing Models Structure: 8.2 3.2.2 Queuing Theory 8.4 Constituents of Queuing System Arrival pattern Completely random arrivals .9 References No external sources have been referred for this unit. Refer to Section 7. Copyright © 2009 SMU Powered by Sikkim Manipal University .3 7. Refer to Section 7.
1 Introduction .8 Single Channel Models 8.10 Erlang Family of Distribution of Service Times 8.8.9 Multiple Service Channels 8.12 Terminal Questions 8.13 Answers to SAQs and TQs Answers to Self Assessment Questions Answers to Terminal questions 8.7 Mathematical Analysis of Queuing Process Properties of the system Notations 8.6 Queue Discipline Customer behaviour Server behaviour 8.5 Service Facility 8.14 References 8.11 Summary 8.
you have to wait at the bus stop. it may not be feasible or economical to totally avoid queues. queues build up during hours of demand and disappear during the lull period. An executive dealing with the system then would like to find the optimal facilities to be provided . On the other hand. Though the arrival of customers is irregular and time taken for service is not consistent. You come across cars in line at petrol pumps for service. mobile subscriber waiting for a new connection. wait for your turn to enter the lift. In commercial or industrial situations. it may not be economical to have waiting lines. goods in production/warehouse waiting to be shipped. customers waiting at the checkout counter. This unit talks about how a queuing model used to approximate a queuing situation for the queuing method is to be analysed mathematically.Welcome to the eighth unit of Operations Research on Infinite Queuing Models. queues to deposit cash at the bank. The one thing common to all the above mentioned examples is that customers arrive at a service centre and wait for their turn to receive the service. wait for the traffic light to turn green. Personally we do not like to wait. Who isn¶t familiar with queues in our daily existence? On way to your work place. even aircrafts waiting for a free runway to take off.
The evaluation criteria will measure efficiency of the system by measuring the average length of a queue. The application of queuing theory cannot be viewed as an optimisation process as there is no maximisation or minimisation of an objective function. It gives an indication of the capability of a given system and the possible changes in its performance with modification to the system. evaluates their effect on the system through queuing models and makes his choice. Help on hand in the form of queuing theory allows the executive to make an informed guess of what the balance between customer waiting time and service capability should be.2 Queuing Theory The queuing theory is based on probability concepts. All the constraints of the process are not taken into account in the formulation of a queuing model. expected .Learning objectives By the end of this unit. you should be able to: · Describe the queuing process · Evaluate the queuing process mathematically · Apply different models to practical problems 8. The executive first considers several alternatives.
Self Assessment Questions True or False: 1.waiting time of a customer and the average time spent by the customer in the system. it is essential for the executive to have a succinct understanding of the process. Therefore. Customers arrive at a bank at regular intervals.3 Analysis of a Queuing Process The management is often interested in finding out the quality of service rendered to the customers. Queuing identifies the optimal service facilities to be provided. 3. these facilities cannot be increased randomly as . The success in using this approach primarily depends on the alternatives considered and not on the queuing models developed. Augmenting the physical facilities to provide service will enhance service leading to customer satisfaction. so that he can consider the right alternatives and formulate the correct models. An indicator of efficiency of a system involving flow of customers for service is the speed which they are served. However. Queuing theory is based on the deterministic model. 8. 2.
The arrival pattern may be altered by withdrawing service facilities to certain categories of customers or by introducing an appointment system. Step 2: Exploration of the various alternatives By introducing changes in the constituents of the queuing system. Then some measures of efficiency of the system as mentioned above may prove helpful. The time taken for providing service can be improved by increasing the capacity of the system. If the queuing process involves waiting of machines for service. it is possible to find the economic level of the maintenance facilities by balancing the cost of machine downtime against the cost of maintenance facilities. it is possible to effect improvement. An attempt is made to identify the points. Such evaluation in monetary terms is not always possible when the customers are people. that is. Providing additional service facilities to relieve congestion during peak periods is a common . which indicate scope for improvement. which restrict service or the characteristics. A typical investigation of a queuing system would comprise the following steps: Step 1: Preliminary study This stage involves an analysis of the process created through a flow diagram. by increasing the number of service channels or the working hours.they are expensive.
The measures of efficiency of the system are computed on the basis of queuing theory. Simulation technique is another alternative. In multi channel queues. Step 3: Collection of data and analysis Direct observation of the system in terms of customer¶s arrival time. separate channels of service are provided for different types of customers. It may be necessary to collect additional data regarding the process. service rate. modifying the queue discipline may change the characteristics of the system. Also. The fixed change counter at the Churchgate railway station manned by Western Railway authorities is said to have cut down the waiting time for a majority of customers. These are counterchecked with the results obtained through direct observation to confirm the validity of the formulae applied.feature. The data is analysed in detail to determine the statistical pattern of the variables. Step 4: Evaluation of alternatives Effect of modifying the constituents of the system on the basis of the selected alternatives is evaluated through application of queuing theory. length of queue and waiting time is done during the collection stage. the best . Priority has to be given to the arrivals involving high cost of waiting time. Based on the results obtained.
5. Analysis of queuing system explores ________ ________. service facility and queue discipline. 8. 6. ____________ technique can also be used for analysis. Self Assessment Questions Fill in the blanks: 4.combination of the changes to be made in the existing system is selected. One of the indicators of efficiency of a system is ________ factor. further changes are made and rechecked before implementing them on full scale. It is advisable to observe the functioning of the system periodically to ensure that the desired results are maintained. · Arrival pattern: It is the average rate at which the customers arrive as well as the statistical pattern of arrival . Step 5: Implementation Formulated proposals are implemented and tested on a small scale. If the need arises.4 Constituents of a Queuing System The constituents of a Queuing System include arrival pattern.
then probability of an arrival in the next interval of time will not depend upon the number of customers already in the system.) When the arrivals are completely random. 8. 8.4.· Service facility: Examining the number of customers served at a time and the statistical pattern of time taken for service at the service facility · Queue discipline: The common method of choosing a customer for service amongst those waiting for service is µFirst Come First Serve¶ Let us examine each of these constituents in detail.2 Completely random arrivals If the number of potential customers is infinitely large. Our primary concern is the pattern of completely random arrivals.4. they follow the Poisson distribution. except for queues involving a small finite number of customers. . (The assumption is valid by and large.1 Arrival pattern The arrival of customers can be regular as in case of an appointment system of a doctor or flow of components on a conveyor belt. which equals to the average number of arrivals per unit time. The regular pattern of arrivals is neither very common nor very easy to deal with mathematically.
i) Availability of service It is necessary to examine if there are any constraints that reduce the number of customers to be served at a time. Number of Service Centres and Duration of Service. the probability distribution of the number of passengers that can be accommodated in a train that arrives is relevant. then it follows Poisson distribution. Self Assessment Questions True or False: 7. a service facility and a queue discipline as its constituents. 8. 8. For example. Every queuing process has an arrival pattern. If the arrivals are completely random. . apart from the timings of the train services. apart from specifying the time span of the availability of service. There are several other types of arrival patterns which shall not be dealt with due to their restricted applications. or large and small aircrafts during the arrivals.Sometimes it is necessary to distinguish between groups of customers. in a waiting line for a suburban train. such as male and female callers.5 Service Facility Service Facility is based on three parameters ± Availability of Service.
bank counters where a customer has to go to at least two counters to withdraw is an example of arrangement in series. For instance. This can be constant or varying. On the other hand ticket booths in a railway station have multiple channels with parallel arrangement. an assumption that service time is constant holds true. (b) Completely random service time: The service time can be considered completely random when: . There will definitely be more than one service centre and the behaviour of the queues will vary with the number of channels available for service. obviously only one customer can be served at a time. (a) Constant service time: Though not in practice.ii) Number of service centres If only one service centre is referred to as a service channel. Multiple service channels may be arranged in series or in parallel. iii) Duration of service This is the length of time taken to serve a customer. if the pattern of arrivals is very irregular. Multiple service channels are arranged in series when a customer has to go through several counters one after another with each providing a different part of the service.
No.· The server does not distinguish between the various arrivals · The server does not deliberately change the duration of service on the basis of the time taken to serve the previous arrival. Under the above mentioned conditions. · The server forgets the time for which he has been serving a customer. Situation Passage of customers through supermarket checkout Flow of Arriving Service Customers Facility Shoppers Checkout counters 2. (c) Service time following Erlang Distribution Sometimes. 1. hence Erlang family of service time distributions is used. the assumption of an exponential distribution for service time is not valid.1: Erlang Distribution of service time Sr. the service time follows exponential distribution which means equal to reciprocal of the average rate of service. Table 8. Automobiles Road .
5. Sale of theatre tickets Arrival of trucks to carry fruits and vegetables from a central market Registration of unemployed at employment exchange Occurrences of Network Electronic messages Transmission lines Bank patrons Bank tellers Computer Central Programmers processing unit Theatregoers Trucks Ticket booking windows Loading crews and facilities 8. 7. 6.3. automobile traffic through a road network. Unemployed Registration personnel assistants Fires Firemen and 9. Transfer of electronic messages Banking transactions Flow of computer programmers through a computer system. . 4.
6 Queue Discipline The pattern of selection for service from the pool of customers is of two types. There are queues according to priority to certain types of customers. First come first served´ is a common example.10. In case of . 11 fires Flow of ships to ships the seashore Calls at police control room equipment Harbour and docking facilities Service calls policemen Self Assessment Questions Fill in the blanks: 9. This type of queuing can have two approaches: non pre-emptive and pre-emptive. 10. 8. In issuing materials from a store¶s inventory sometimes the storekeeper follows the Last in First Out´ principle because of the convenience it offers for removal from stocks and handling. Multiple service channels may be arranged in ___________ or in _________. The service time can be __________ or _________. The common pattern is to select in the order in which the customers arrive.
the customer getting service is allowed to continue with service till completion. even if a priority customer´ arrives midway during his service.1 Customer behaviour a) Balking: Arriving customers are said to balk´ if they do not join a queue because of their reluctance to wait. b) Collusion: Customers may be in collusion meaning that only one person would join the queue. Pre-emptive priority involves stopping the service of the non priority customers as soon as the priority customer arrives. .non pre-emptive priority. but demand service on behalf of several customers. This is a common form of priority. Preference is given to larger ships over the smaller ones irrespective of the order in which they arrive for allocation of berths.6. Priority given to repairs of a production holding machine over an auxiliary unit for allocation of maintenance labour force is a typical example. c) Reneging: Impatient customers who would not wait beyond a certain time and leave the queue are said to renege. 8.
7 Mathematical Analysis of Queuing Process Statistical Equilibrium: While analysing the queuing process. When customers keep on switching over from one queue to another then it is called ________. For instance. our main interest is in developing a mathematical model which represents the system. 8. 8. When we specify the statistical distributions of the arrivals or service times.2 Server behaviour Although the service timings have been specified. we want to ensure an equilibrium state.d) Jockeying: Some customers keep on switching over from one queue to another in a multiple service centre. 12. This is called jockeying. _____ ________ ______ ______ are the types of customer behaviour. the server may not be available through the entire span of time. . in every one hour the server may disconnect from the service centre for 5 minutes so that it can go through its daily updates or cleanup routine. This implies that changes occurring in the characteristics of the system are not to be considered if they are of short durations.6. Self Assessment Questions Fill in the blanks: 11.
The state. in which the probability distribution remains the same. Compare the number of customers arrived at the post office. Arrivals · Customers are discrete entities · Population ± Finite/Infinite . 8. In the steady state.7.1 Properties of the system While developing queuing models. The probability distribution of the arrivals will then be different from that of the initial state. After the initial rush. we will confine our discussion to queuing systems with the following properties. is called the steady state and the system is said to have acquired a state of statistical equilibrium. there is a probability distribution for the length of the queue.In a queuing process. 15 minutes after the counter is opened to that after one hour. you¶ll find the system with the same type of probabilities of arrivals. there will be variations in the queue from time to time but the probability distributions representing the queuing process will remain the same and are independent of the time at which the system is examined. at each point of time.
Service · Single serve channel/Multiple channels · Single queue/Infinite capacity Pattern discipline · First come first serve Note: When the number of arrivals follows Poisson distribution (discrete). Here is a list of notations which are commonly used.· No simultaneous arrivals · Pattern of arrivals in a time period t0 follows Poisson distribution with average arrival rate x = 0. that is the time between arrivals follows exponential distribution (continuous). 1. 8. . 2 ««. the inter-arrival time. and the third figure indicates the number of channels (or servers) available (1 or c).2 Notations The queuing systems with which you are concerned are denoted by M/M/1 and M/M/c where Ms stand for exponential inter arrival and exponential service time distributions..7.
14. ___________ arrivals are allowed. E (m) refers to ________ _________ ________ _________.Self Assessment Questions Fill in the blanks: 13.8 Single Channel Models The formulae are listed in tables 8.2 and 8.3. 15. The examples illustrate the computation of various measures . Probability density function of the time spent by a customer in the system is denoted by _____________. 8.
3: Formulae for Poisson Arrivals. . Exponential Service. but give an idea of the areas of application as well. Exponential Service. Single Channel Queuing Models ± Infinite Population Table 8.2: Formulae for Poisson Arrivals.of efficiency of a queuing system. Table 8. Single Channel Queuing Models Number of customers linked to N.
Solved Problem 1: Patrons arrive at a small post office at the rate of 30 per hour. Service by the clerk on duty takes an average of 1 minute per customer a) Calculate the mean customer time (i) Spent waiting in line (ii) Spent receiving or waiting for service b) Find the mean number of persons (i) In line (ii) Receiving or waiting for service Solution: Mean arrival rate l = 30 customers per hour = customer per minute Mean service rate = 1 per minute Traffic intensity (a) (i) Mean customer time spent waiting in line minute .
who takes an average of 5 minutes in checking parts of each of the machines coming for inspection.(ii) Mean customer time receiving or waiting for service = 2 minutes (b) (i) Mean number of persons in line customer (ii) Mean number of persons receiving or waiting for service customer Solved Problem 2: The Tool Company¶s quality control department is manned by a single clerk. One hour of machine is valued at Rs. 15 and a clerk¶s time is valued at Rs. What is the average hourly queuing system costs associated with the quality control department? Solution: Mean arrival rate l = 1/8 per minute = per hour . The machines arrive once in every 8 minutes on the average. 4 per hour.
29 machines per hour costs . 25 per hour Average hourly queuing cost = Rs. 4 Hence total hourly cost for the department = Rs. 25 Average hourly cost for the clerk = Rs.Mean service rate p er minute = 12 per hour Average time spent by a machine in the system E (v) = = hours Average queuing cost per machine is An average arrival of = Rs.
8. The list of formulae to be used is given in table below followed by few examples. Exponential Service Multi channel Queuing Models ± Infinite Population . The probability that an arriving customer has to wait for receiving service is given by ___________. 17.4: Formulae for Poisson Arrivals.9 Multiple Service Channels The analysis of systems involving several service channels is more complex.Self Assessment Questions Fill in the blanks: 16. The major practical utility of these models are the ways of improving to provide additional service facilities. Table 8. The expected number of customers in non empty queue is given by ___________.
where the mean and the standard deviation substantially differ. Consider the distribution of a service time involving a fixed number of phase¶s k. If there are k phases. the models have to be made more general by using a distribution system. Expected number of customers in the system. Erlang first studied such a distribution system.10 Erlang Family of Distribution of Service Times The queuing processes discussed till now are mathematically simple. each phase having a negative exponential distribution. A. Average waiting time of the customer in the queue. 8. and the average time taken by a customer through each phase is units.Self Assessment Questions Write the formula : 18. you are also taking the standard deviation equal to its mean. Assuming that the service time follows negative exponential distribution. 19. the service time distribution f (t) is given by . but yet retains the simplicity of the properties of negative exponential distribution.K. which coincide closely to the practical problems. There would be situations.
Figure 8. same as the models considered earlier.The mean of this distribution is and standard deviation is . If k = ¥ the variance is zero and this corresponds to a case where the service time is constant and has value . For k = 2. The mode is located at t = . The figure below shows the way the density functions vary as k increases. number having entered during any one or more of the phases. If k = 1. and the .1: Density functions vary as k increases The measures of efficiency should take into account the number of customers getting service. f (f) = me±m1 which is the negative exponential distribution. f (f) = 4m 2te ± 2 m f and so on.
equating k to ¥ the formulae . with mean l and service time following the kth Erlang distribution with mean.number yet to join. applicable are given below. For arrivals following Poisson distribution. Average queue length Average number of units in the system Average waiting time Average time spent in the system For constant service time.
Self Assessment Questions .
Expected time that a customer is in the queue. Customers arrive at the first class ticket counter of a theatre at a rate of 12 per hour. the arrival rate. The probability that there are at least two customers in the system. 2. find out: a.12 Terminal Questions 1. The queuing theory contributes vital information required for balancing the cost of service and cost associated with waiting time of the customer. If in a particular single-server system. E (m) 21. The probability that the server is idle. 8. l = 5 per hour and service rate.Write the formula for: 20. Assuming the conditions for use of the single channel queuing model. m = 8 per hour. This unit discusses all the different models used under different conditions.11 Summary The waiting line theory or queuing theory analysis suggests the number of facilities required and the cost of customers waiting time and the optimum service level. E (w) 8. There is one clerk serving . b. c.
of customers in the queue. every 15 minutes. Utilization . c. In a bank. The ideal time of the clerk in 8 working hours. b. Assuming the conditions for use of the single ± channel queuing model.the customers at a rate of 30 per hour. False 2. 8. evaluate: a. The average waiting time of the customer in the system. False 4. Expected no. a. Assuming the usual conditions find.13 Answers to SAQs and TQs Answers to Self Assessment Questions 1. True 3. b. The probability that an arriving customer has to wait for the service. The expected number of customers in the system. one customer arrives for cashing the cheque. c. 3. The clerk takes 10 minutes to service. The probability that a customer has to wait for 15 minutes or more to receive the service.
10 21. l / 18.9 19. Simulation 7.5. Simultaneous 16. F ( ) 15.10 . Average length of queue 14. Refer to section 8.9 20. Refer to section 8. Balancing 13. Refer to section 8. Refer to section 8. Series. m / m ± l 17. Various alternatives 6. Yes 8. Constant. varying 11. Jockeying 12. Yes 9. parallel 10.
14 References No external sources of content have been referred for this unit. Copyright © 2009 SMU Powered by Sikkim Manipal University . MB0048-Unit-09-Finite Queuing Models Unit-09-Finite Queuing Models Structure: 9. a) 8 /3 hrs b) 4 /3 c) 0.4043 8. a) 3 /5 b) 2 / 3 per hour c) 10 /3 minutes 3. a) 3 /8 b)125 / 512 c)12.5 minutes 2.2 Finite Queuing Models Finite queuing tables Measures of system efficiency .Answers to Terminal Questions 1.1 Introduction Learning objectives 9.
1 Introduction Welcome to unit nine of Operations Research Management on Finite Queuing Models. Similarly. The models discussed so far relate to situations involving infinite population of customers. However. the probability of the doctors or nurses being called for service is governed by the number of beds in the ward. In this unit.Use of finite queuing tables 9. we will discuss such scenarios. that is. In a hospital ward. In a production shop. you may come across scenarios where the possible number of arrivals is limited and small.4 Terminal Questions 9. in an aircraft the number of seats is finite and .3 Summary 9. the population is restricted to the total number of machines in the shop.5 Answers to SAQs and TQs Answers to self assessment questions Answers to terminal questions 9. the queue can increase indefinitely. if the machines are considered as customers requiring service from repair crews or operators.6 References 9.
However. such increases mean additional cost and will have to be balanced with the benefits likely to accrue. you can improve the efficiency of the system in terms of reduced average length of queues.2 Finite Queuing Models . Sometime it is not possible to quantify the benefits. To do this.the number of stewardesses provided by the airlines will be based on the consideration of the maximum number of passengers who can demand service. If the queuing system in a machine shop is under study. you should be able to: · Describe queuing models and various queuing disciplines · Interpret and apply finite queuing tables to solve problems 9. the management will have to base its decisions on the desired standards for customer service. Learning objectives By the end of this unit. In case of a queuing system with infinite population. you need to increase the number of service channels. the cost of providing additional maintenance crews or operators can be compared with the value of additional production due to reduced downtime of the machines. average waiting time and time spent by the customer in the system.
These measures are: · Average number in the queue. the system processes incoming requests or messages at a certain rate.Basic concept of queuing models You use a queuing model to approximate a real queuing situation or system. Any newly arrived request or message is added to the queue only if the number of requests or messages waiting in the queue is less than the maximum. . so that you can analyse the queuing behaviour mathematically. or the system · Average time spent in the queue. Queuing models allow you to determine a number of useful steady state performance measures. or the system · Statistical distribution of those numbers or times · Probability of the queue being empty or full · Probability of finding the system in a particular state Analysis of the relevant queuing models allows you to identify the cause of a queuing issue and assess the impact of the proposed changes. you need to analyse a queuing model to minimise the sum of: · Customer waiting cost · Service capacity cost In a finite queuing model. Typically.
become impatient and leave before being served. inter-arrival or interval times are constant or randomly spaced over time with a known inter-arrival time probability distribution (Poisson distribution). i.. · The service times at each channel may be constant or random with a known service distribution (negative exponential distribution). It defines the way in which they are served. · The potential arrivals may balk if the length of waiting line becomes excessive and decide not to join or arrivals may join the waiting line and subsequently renege. the order in which they are .The model is based on the following assumptions: · The number of requests/messages in the queue uniquely characterises the state of the queue. · In a steady state. In most of the practical situations. · Each source has a well-defined arrival pattern over time.. the average rate of departure is equal to average rate of arrivals.e. it is finite. This also could be finite or infinite. A queue is characterised by the maximum permissible number of customers that it can contain. i.e. Queuing discipline determines the manner in which the system handles calls from the customers. They are lost by the service system.
Fig.served. 9. For instance. the order is usually first comefirst served.1: Queue discipline route in a finite queuing process i. iii. machines of high cost may be given priority for maintenance while others may be kept waiting even if they had broken down before. First come-first served (FIFS): This principle states that customers are served one at a time and that the customer that has been waiting the longest is served first. in a machine shop if a single operator is attending to several . ii. For example. Priority: Priority-discipline models give priority to rush jobs and important customers over others. and the way in which resources are divided between the customers. A finite queuing process may follow any of the following queuing disciplines. In most queuing models. Random: The principle states that the system may randomly select a customer for service.
L. If.G. Last Come-First Served (LIFS): This discipline is based on the stack method.machines and several machines call for his attention at a time. N.. Peck and R. The only parameter that depends on the queuing discipline is the variance (or standard deviation) of the waiting time. W = Average time spent in queue (i. sum of the expected waiting time and expected service time) = . Hazelwood have provided solutions to such problems in their book Finite Queuing Tables´ (John Wiley & Sons Inc ± 1958). Most quantitative parameters.e. Simple Waiting Line Model The simplest waiting line model assumes that arrivals join a queue that is of unlimited size. iv. The analysis of finite queuing models is more complex than those with infinite population although the approach is similar. such as the average queue length and average time spent in the system do not depend on the queuing discipline. he may attend first to the one nearest to him. waiting in line until their turn for service comes on a first-cum-first-serve basis and then enter a service facility consisting of a single channel. That¶s why most models either do not take the queuing discipline into account at all or assume the normal FIFS queue.
too much demand) and cost due to excessive idle time at the service facility (i.. L= W If = Average service rate 1/ = Expected inter arrival time 1/ = Expected service time Further. the utilisation factor.e.e.. the expected fraction of time the server is busy is given by: = /s Where. (i. (s ) is the fraction of the system¶s service capacity that being utilised on the average by arriving customers C ) The crux of the queuing theory is to µachieve a trade off between excessive waiting by customers (i.2.Average rate of units passing through the system per unit time L = Average number of units in the system Then. Lending system in a library is an example of single facility channel waiting line. 9.e.1 Finite queuing tables Given below are different notations used in finite queuing tables: . too little demand).
If W is the average time for . If M repair crews are available. 9. 9. the time taken by any crew follows a negative exponential distribution with mean T.2 Measures of system efficiency For a given set of machines.2: Notations used in finite queuing tables It is assumed that machines are kept running (or in operation) all the time. the efficiency of the repair system may be judged by the extent to which machines have to wait for repairs. The number of breakdowns follows Poisson distribution with mean Fig.2. a machine which has broken down will have to wait for repairs if all the repair crews are busy. except when in repairs or waiting for repair crew to attend. The inter breakdown time of these machines follows a negative exponential distribution with mean U. Naturally.Consider a machine shop with N machines.
running or waiting for repairs respectively. service factor X is defined as . Therefore.which a machine has to wait.3 Use of finite queuing tables The above table gives values of F and D for different values of N. a machine will either be running or under repair or waiting for repairs. M and X. . the total number of machines N = J + H + L. the efficiency factor F is defined as At any point of time.2. X is an indicator of the utilisation of repair crew. correspond to the probability that a machine is being repaired. The formulae for other properties of the system are given below: 9. In the finite queuing tables. They are arranged in the ascending .
several values of M can be found. vi) If necessary. The steps for finite queuing tables are as follows: i) Find mean service time T and mean running time U. H. v) Read off from tables. For each N. values of D and F for the number of service crews M. For a given service factor X.950.order of the values of the population. vii) Calculate the other measures L. locate the service factor value.001 to . ii) Compute the service factor. iv) For the given population. . and J from the formulae given. values of D and F are tabulated. the value of X increases from . these values may be interpolated between relevant values of X. iii) Select the table corresponding to the population N. W. For each value of X and M.
However. which should be justified by the increase in the efficiency of the system that is additional running time of machines.Figure 9. The practical significance is that beyond a certain value of M. As mentioned earlier.3: Finite queuing tables steps The overall efficiency F of the system will increase with the number of service channels (M) provided. it will be seen from the table that as M increases the rate of increase in efficiency decreases. it is not worthwhile increasing M as there would be no appreciable increase in the efficiency of the system. Caselet In a chemical factory. there are five hoppers . addition of service crews involves cost.
Whenever a hopper gets empty. The company hires the pay loaders at a cost of Rs. it has to be filled by a pay loader. Although the capacity of the hopper is the same.5 hours. Due to changes in the requirement of material. 100 per hour irrespective of whether it is operated or not. it was found to follow negative exponential distribution with an average of 10 hours between getting emptied. If the mill has to be stopped due to the empty hopper. the time taken to fill the hoppers varies due to different locations from where the material is to be loaded. 1000 per hour in terms of loss of profits.of identical size which feed material to grinding mills. it costs Rs. there are variations in the time taken for emptying the hoppers. To determine the number of pay loaders which the company should engage to minimise overall cost you need to create a finite queuing table. . On the basis of past experience. The time for filling the hopper also was found to follow negative exponential distribution with an average of 2.
Self Assessment Questions True or False .
3. where the total cost of providing service and waiting. then we apply infinite queuing model. The queue discipline in a finite queuing process can be random. Queuing systems are analysed for determining the optimal service level.4 Terminal Questions 1. but reduces the cost of waiting. Customers may come individually or in groups from large/small population. . wait for the service. is minimised.3 Summary This unit on finite queuing theory deals with situations where customers arrive. There is one clerk serving the customers at a rate of 30 per hour. while a decrease in the service level induces opposite changes.1. The efficiency factor for this model is HJ / H + J + L. 2. An increase in the service level increases the cost of providing service. form one or more queues and move in a certain order to the service station(s) to avail of services whose speed may be fixed or variable. get the service and leave the system. 9. When the possible number of arrivals is limited. 9. Customers arrive at the first class ticket counter of a theatre at a rate of 12 per hour. at known/variable times.
the system is idle)? ii) What is the probability that there are more than 2 customers in the counter? iii) What is the probability that there is no customer waiting to be served? iv) What is the probability that a customer is being served and nobody is waiting? 2. the customers arrive in their cars at the average rate of twenty per hour according to the Poisson distribution. Also assume that the bank teller spends an average of two minutes per customer to complete a service. Assume that at a bank teller window.i) What is the probability that there is no customer in counter (for instance. are served on a first come first served basis and there is no limit to possible queue length. i) What is the expected waiting time in the system per customer? ii) What is the mean number of customers waiting in the system? iii) What is the probability of zero customers in the system? iv) What value is the utilisation factor? . Customers. who arrive from an infinite population. and the service time is exponentially distributed.
False Answers to Terminal Questions 1.4 = 0. Mean number of customers waiting in the system.6. ii. ii.064. Ws = 1/ (m-l) = 1/ (30-20) =1/10 hr. iv. i.5 Answers to SAQs and TQs Answers to Self Assessment Questions 1. i. Expected waiting time in the system per customer.0. P (no customer waiting to be served) = P (0) + P (1) = 0. P (the system is idle) = 1. False 2. P (a customer is being served and none is waiting) = P (1) = 0.9. True 3.24. .84. P (n > 2) = 1 ± P (n £ 2) = 1 ± [P (0) + P (1) + P (2)] = 1. iii.r = 1-0. 2.936 = 0.
htm · http://docs.mt/jskl1/simweb/intro.6 References The following external sources have been referred to for additional content for unit 9: · http://en.af.scribd. Utilisation factor.google.wikipedia.Lq = P (0) = .um.org/wiki/Queueing_model · http://www.hill. iv. 9. iii.stsc. Probability of zero customers in the system. .mil%2Fcrosstalk%2F2007 %2F12%2F0712LauAppendix.pdf+finite+queuing+model &hl=en&gl=uk&sig=AFQjCNHDjmWKl7g8LD_DztsUvEJxyr9Ig&pli=1 Copyright © 2009 SMU Powered by Sikkim Manipal University .com/doc/14160718/OperationsManagement-Ch19-Waiting-Lines · http://staff.edu.com/gview?a=v&q=cache%3AuNc0Dt LpqBMJ%3Awww.
MB0048-Unit-10-Simulation Unit 10 Simulation Structure: 10.5 Application of Simulation Limitations Solved problems 10.8 Answers to SAQs and TQs .2 Basic Concepts 10.3 Simulation Procedure Allocation of random numbers Use of random number tables 10.4 Sample Size 10.6 Summary 10.1 Introduction Learning objectives 10.7 Terminal Questions 10..
demand and choose the alternative giving the maximum profit. the statistical distribution of the variables conform to a standard pattern.Answers to self assessment questions Answers to terminal questions 10.9 Reference 10. the management cannot risk changing the price of the product without evaluating the various alternatives. While formulating mathematical models of various systems or situations.1 Introduction Welcome to the tenth unit of Operations Research Management on Simulation. simulation is of great help for decision making. One of the approaches to the problem is to assign probabilities of achieving various sales targets under different conditions of completion. it is not always true. Representing the terms of a mathematical model is virtually impossible because of the complexity of the interaction of several variables having a bearing on the final outcome. In a typical pricing problem. However. Where formulating a mathematical model is difficult. Learning objectives . These different conditions may be related to changes in price.
it would be difficult to . simulation is often referred to as µMonte Carlo Analysis¶.By the end of this unit. However. which occur when five coins are tossed. that is the probability of a head is ½. you should be able to: · Define simulation · Demonstrate the application of simulations in business problems · Describe the Monte Carlo Method 10. They arrived at an approximate solution by sampling. Von Neumann and Ulan. While dealing with business problems. most people know that there is an equal likelihood of a head or a tail occurring. If it were only a question of one coin. Imagine a betting game where the stakes are based on correct prediction of the number of heads. without the application of probability theory. Two American mathematicians. in the late 1940s found a problem in the field of nuclear physics too complex for analytical solution and too dangerous for actual experimentation. hence the name µMonte Carlo¶ has stuck.2 Basic Concepts Simulation is also called experimentation in the management laboratory. The method they used had resemblance to the gambler¶s betting systems on the roulette table.
Why don¶t you take five coins and toss them repeatedly. Random numbers have the property that any number is equally likely to occur.1: Random number set 78466 71923 78722 78870 06401 61208 04754 05003 97118 95983 By following a convention that even´ digits signify a head (H) and the odd´ digits represent a tail (T). Let us estimate the probability of tossing of different numbers of heads with five coins. but is not very convenient. As you know. This approach in effect is a method of sampling. you can conduct the experiment using random numbers. irrespective of the digit that has already occurred. Instead of actually tossing the coins. the values of these probabilities will initially fluctuate. We start with set random numbers given below: Table 10.predict the chances of getting various numbers of heads. approximate the probabilities of various outcomes. when five coins are tossed. the . Note down the outcomes of each toss after every ten tosses. but they would tend to stabilise as the number of tosses are increased.
1. It is immaterial as to which set of five digits should signify a head. For instance. The probability of occurrence of the first set of digits is ½ and that of the other set is also ½ ± a condition corresponding to the probability of the occurrence of a head and the probability of occurrence of a tail respectively. . 2.tossing of a coin can be simulated. choose two digit random numbers 00 to 99.24. The first set of five random digits in the list of random numbers implies that the outcome of the first toss of 5 coins is as follows: Table 10. 24 to 59 signify B and 60 to 99 signify C. It is only necessary to take care that the set of random numbers allotted to any event matches with its probability of occurrence.36 and 0.2: Outcome of first toss of 5 coins Coin 12 3 4 5 Random Number 7 8 4 6 6 Outcome THHHH Hence it is 4 heads and 1 tail.40. if you¶re interested in allotting random numbers to three events A. 8 and 9 a tail. The rule could be that the digits 0. 0. 6. 7. B and C with respective probabilities 0. 3 and 4 represent a head and the digits 5. The numbers 00 to 23 signify event A.
as these estimates come closer to the theoretical value with increasing sample size. you can tabulate the results of the first ten tosses. .3: Results of first ten tosses Based on the ten tosses of the coins. Table 10.Proceeding in the same way. the estimates of probabilities of occurrence of different numbers of heads are: Continue experimenting further.
21 0.31 .4: Results for 100 throws 10 throws 20 throws 30 throws 40 throws 50 throws 60 throws 70 throws 80 throws 90 throws 100 throws 0 6 11 14 18 19 21 22 24 27 Table 10. of heads 0 1 2 Estimated Probability 0.03 0.16 0.27 Theoretical Probabilities 0.5 compares the final results at the end of 100 throws with the theoretical probabilities. Table 10.The results for obtaining 2 heads and 3 tails for 100 throws are shown below: Table 10.03 0.5: Final results at the end of 100 throws No.
04 0.3 Simulation Procedure The approach to solve a gambling problem can be extended to decision-making in business where risk is a common feature. Self Assessment Questions Fill in the blanks 1.3 4 5 0. when compared are more in favour with the theoretical values than with a sample of ten sets of numbers.31 0. 10. Simulation may be called experimentation in the _________ _______. 2. .03 It is observed that the results obtained with the large sample of 100. Random numbers have the property that any number has ____to occur. 3.12 0.33 0.16 0. The probabilities associated with the variables can be estimated on the basis of availability of previous data or by inputting subjective values. The totality of probability assigned to the variable should always be equal to _______.
the random numbers will be specified. The first step involves coding the data that is. However. Then you identify the relationship between the variables and run the simulation to get the results Let us illustrate this by a simple example of a queuing process. . You can choose random numbers from table.In any simulation problem. you assign random numbers to the variable. The initial conditions will also be specified. to get uniform results. the variables to be studied will be given with associated probabilities.
8 Allocation of random number ± time between arrivals Table 10. Table 10.3.9 Allocation of random numbers ± service time Service Time (1) 0. Frequency Probability Frequency Allocated (2) (4) (3) (5) Cumulative 12 12 0.12 00 to 11 .10.1 Allocation of random numbers The following tables show the allocation of random numbers based on time between arrivals and service time.5 Cumulative Random Nos.
69 0. since you have chosen a range of random numbers from 00 to 99 Table 10.0 21 36 19 7 5 33 69 88 95 100 0.1.0 2.00 12 to 32 33 to 68 69 to 87 88 to 94 95 to 99 Note that the upper bound of random numbers allocated for each value of the parameter is one less than the corresponding cumulative frequency.0 1.5 2.33 0.5 3.5 minutes.88 0. when the .95 1.10 Arrival and service time The service facility is made available at clock time zero and the server has to be idle for 3.
while the service to the third is completed. The first random number could be picked at random from any point in the tables and the subsequent ones are to be selected proceeding .0 minutes and again the server is idle for 2 minutes till the second arrival joins the system. The first three arrivals get immediate service and they don¶t have to wait. The fourth arrival that joins at 9.0 minutes has to wait for 0.5 minutes Percentage of idle time = 10. However. Similarly the waiting time and idle time can be computed for further arrivals. The grouping of random numbers in the tables has no significance and one should be concerned with individual digits only. The service is completed at 5. Total elapsed time = 29 minutes Waiting time of arrival = 1 minute Percentage of waiting time = Idle time for server = 14.5 minute.service for first arrival starts. similar to drawing numbered chips from a hat.3. it is convenient to use a table of random numbers prepared on the basis of some physical phenomenon.2 Use of random number tables The random numbers can be selected by any random process. as the server is idle when they arrive.
the seed is squared and all digits except the middle four are ignored. the random numbers will be chosen in sets of single digit or two±digit numbers.sequentially either in a vertical or horizontal direction. that is pseudo±random numbers Truly random numbers cannot be produced by an algorithm and hence random numbers generated using recursive equations are referred to as pseudo±random numbers. This process is repeated each time using the previous random number as the new seed. Seed = 8695 = 75603025 Taking the middle 4 digits. Operation starts with an arbitrary four digit integer called the seed. There are several methods of generating pseudo±random numbers. = 6030 = 36360900 = 3609 . Depending upon the number of digits required. but you will briefly learn only the mid square method. To obtain the first random number.
4 Sample Size As you have seen with the coin-tossing experiment. 10. In any simulation problem. the larger the number of trials. The question that arises is how many . There are methods by which the seed can be chosen to obtain a fairly long sequence of numbers before cycling starts.Repeating the above procedure: One of the disadvantages of the mid square method is that the generated numbers start cycling after a short set of random numbers is obtained. 5. Random numbers are assigned for cumulative probability values. you can solve the simulation problem. Statistical tests check whether the generated sequence is truly random. Without identifying any relationship between variables. 6. initial conditions are stated. Self Assessment Questions True or False: 4. the more confident you can be in your estimates.
which results in large number of trials. . you can work out the sample size required for a given confidence level. a simulation model involves several variables making it impossible to determine the number of trials required to obtain the desired accuracy at a specified confidence level. One can only say that the accuracy associated with simulation improves as the square root of the number of trials.trials for simulation?´ If the experiment is as simple as tossing a coin involving only one variable. Usually.
Standard error for percentage of success = (P (1-P) / N) . Self Assessment Questions True or False: 1/2 7. special simulation languages such as GPSS and SIMSCRIPT have been developed to save time and effort required to structure and debug simulation models. A practical indicator of when to stop simulation trials is when the results that violently fluctuate initially tend to stabilise if the simulation is continued. simulation can be easily understood by the users and thereby facilitates their active involvement. 9.5 Application of Simulation The range of application of simulation in business is extremely wide. This makes . Unlike other mathematical models. 10. The degree of accuracy required varies with the problem on hand and calls for analyst judgment. In fact. 8.This requires a great deal of computational effort and the use of computer becomes inevitable. If the successive cumulative results tally reasonable well. It is possible to determine the number of trials. The accuracy of results increases as the square of number of trials. the simulation may be stopped.
5. number of equipment for handling materials. In case of other OR models. routing problems. stock control and so forth. 10. job shop scheduling. 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. 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. 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. You have already seen by means of an example how simulation could be used in a queuing system.1 Limitations The simulation approach is recognised as a powerful tool for management decision-making. The other areas of application include dock facilities. number of maintenance crews. facilities at airports to minimise congestion.the results more reliable and also ensures easy acceptance for implementation. One should not ignore . hospital appointment systems and even management games.
and tempered´ with managerial judgment. A simulation application is based on the premise that the behaviour pattern of relevant variables is known.the cost associated with a simulation study for data collection. The results of simulation should always be compared with solutions obtained by other methods wherever possible. . and this very premise sometimes becomes questionable. formation of the model and the computer time as it is fairly significant. Not always can the probabilities be estimated with ease or desired reliability.
2 Solved problems .10.5.
6 Summary This unit explains the basic concepts concerned with simulations and simulation procedures. 5. This technique can be easily understood by nontechnical managers. 12. Briefly write down the basic concepts concerned with simulation. What do you mean by simulation procedure? 3. Simulation gives optimum solution. The unit explains allocation of random numbers with the use of random number tables. 10. Two components have to be produced in M/C A and M/C B and then finally assembled. the sample size and the application of simulation. Briefly explain the use of random number tables. 10.7 Terminal Questions 1.Self Assessment Questions True or False: 10. The time taken to . 2. 11. Discuss the different applications of simulation. Simulation interrupts real system activities. 4.
(04. 07) 10. (36. (57. 99).assemble on two machines varies with the following probability distribution. find the average time taken for production. first for M/C A and second for M/C B. 25). 83). True 5. (94. 53). Management laboratory 2. Using simulation technique and the ordered pair of random numbers. (62. 67). 15). (25. (81.8 Answers to SAQs and TQs Answers to Self Assessment Questions 1. True . 35). Random Numbers (10. 1 4. Equally likely 3. 76). (44. (72. 92).
Disagree 10. Agree 8. Copyright © 2009 SMU Powered by Sikkim Manipal University . True Answers to Terminal Questions 1.3 4.5 5.9 Reference No external sources of content have been referred for this unit.3. Refer to section 10. False 11. 57.3 3. False 7. False 12. Refer to section 10.6. Agree 9.7 minutes 10. Refer to section 10.2 2. Refer to section 10.
3 Characteristics of Competitive Games N-person game Zero sum game Two-person-zero-sum game (rectangular game) Strategy Pure strategy Mixed strategy . MB0048-Unit-12-Game Theory Unit-12-Game Theory Structure: 12..2 Competitive Situations Marketing different brands of commodity Campaigning for elections Fighting military battles 12.1 Introduction Learning Objectives 12.
4 Maximin ± Minimax Principle Saddle point Solution to a game with a saddle point 12.1 Introduction Welcome to unit twelve of Operations Research Management on Game Theory.8 Answers to SAQs and TQs Answers to Self Assessment Questions Answers to Terminal Questions 12.12. when John Von Newman along with Morgenstern published their work on µTheory of games and economic behaviour¶.9 References 12. John Von Newman developed the Game Theory in the year 1928.5 Dominance Solving games using dominance 12. This highly resourceful field of study is developing fast.6 Summary 12. Learning Objectives . The theory gained importance after 1944.7 Terminal Questions 12.
2.By the end of this unit.1 Marketing different brands of a commodity Two or more brands of detergents/soaps trying to capture the market by adopting various methods (courses).2.1: Types of competitive situations 12.2 Competitive Situations Competitive situations arise when two or more parties with conflicting interests operate. you should be able to: · Comprehend competitive situations · Apply game theory to such situations · Compute a solution using saddle point and dominance principle 12. The following competitive situations may occur. 12. such as µadvertising through electronic media¶. µproviding cash discounts to consumers¶ or µoffering larger sales commission to dealers¶ are said to be in a competitive situation. Figure 12.2 Campaigning for elections .
3 Fighting military battles Another example of a competitive situation is where two forces are fighting a war to gain supremacy over one another. The above mentioned situations can be considered as a competitive game where the parties (players) adopt a course of action (play the game). such as µcampaigning through TV¶. They adopt various courses of action. 12. They adopt various methods (courses). µground attack supported by aerial attack¶ or µplaying defensive by not attacking¶. such as µdirect ground attack on enemy camp¶.2. µdoor to door campaigning¶ or µcampaigning through public meetings¶ to capture more votes. 12.3 Characteristics of a Competitive Game A competitive game has the following characteristics: 1.Two or more candidates contesting in elections are in a competitive situation. Self Assessment Questions Fill in the blanks: 1. The number of players or competitors is finite. . Competitive situations arise when _______ or ________ parties with ___________ operate.
1 N ± person game A game having µn¶ players participating is called µnperson¶ game. A two-player game is called 2-person game (two person game). The payment is called pay-off or gain. 3. A zero-sum game with two players is called two-person zero-sum game. 5. 6. The pay-off may be monetary (money) or some benefit. 12. A game is played when each player adopts any one course of action.3. such as increased sales. It is also called rectangular game. Every time a game is played. the corresponding combination of courses of action leads to a transaction or payment to each player.2 Zero ± sum game If the sum of the gains (pay-off) of the players in a game is zero. Each player has finite number of courses of action or moves.2. the game is called zero-sum game. The players do not communicate with each other.3. . The players are aware of the rules before starting the game. 12. 4.
) is the gain of B. In a two-person zero-sum game with the players A and B. Let be the pay-off (gain) of player A when he plays the course of action. the gain of one player is the loss of the other. is A¶s gain and B¶s loss. and player B plays the course of action .3. Then. 12. the following matrix is the payoff (gain) matrix of player A. (. Here. Let be the n courses of action for player B.3 Two ± person zero ± sum game (rectangular game) A two-person zero-sum game is a game where · Two players participate · The gain of one player is the loss of the other. Let be the m courses of action for player A. To obtain . Therefore. This is a (read as m by n) game.In a two-person zero-sum game.
3. write (.6. 12. .4 Strategy In a game. if a player¶s strategy is to adopt a specific course of action. The player uses this strategy to select a course of action during the game.4 and 0. Thus.2: Types of strategy 12. it is mixed strategy. irrespective of the opponent¶s strategy.3. the strategy of a player is predetermined.3.) in the place of in the above matrix and then write the transpose of the matrix. the player¶s strategy is called pure strategy. Figure 12.5 Pure strategy During the game. 12. The strategy of a player may be µpure¶ or µmixed¶.the pay-off matrix of B. then the player¶s strategy is called mixed strategy. if player A decides to adopt courses of action with perspective probabilities 0.6 Mixed strategy If a player chooses his course of action according to preassigned probabilities.
When do you call a game µzero-sum game¶? 4. What is pure strategy? 6.Self Assessment Questions Write one line answers 2. What is a rectangular game? 5. State any one characteristics of a competitive game. 3.4 Maximin ± Minimax Principle Solving a two-person zero-sum game . How many courses of actions are available to the players in a competitive game? 12.
The maximin is . Suppose A chooses the course of action where is maximum.Let accordingly B¶s choice .) Similarly. You will find corresponding to A¶s play minimum gains are the row minimums . Then. player A would like to maximise his profit and player B would like to minimise his loss. ( is Then.Player A and player B are to play a game without knowing the other player¶s strategy. Then the maximum of the row minimum in the pay-off matrix is called maximin. Suppose player A plays . the least pay-off in the second row. is the minimum gain of A when he plays the minimum pay-off in the first row. Also each player would expect his opponent to be calculative. However. his gain would be would be . his minimum gain is . the . if A plays .
when B plays. This is the maximum pay-off in the The minimum of the column maximums in the pay-off matrix is called minimax. Note: cannot be greater than . 12.1 Saddle point In a two-person zero-sum game. if the maximin and the minimax are equal. If . . The minimax is If . then the game does not have a saddle point. the maximin and the minimax are equal and the game is said to have saddle point. he would minimise his maximum loss.Similarly.4. The maximum loss to B is when is column. the game has saddle point. .
4. the player¶s strategy is pure strategy. Here. s). Note 3: A game is said to be fair if its value is zero. 12. Note 1: If a game has saddle point. the suggested solutions are and respectively. The value of a game is the expected gain of player A. It is called the value of the game. If the maximin occurs in the row and if the minimax occurs in the column. is the common value of the maximin and the minimax. Let be the courses of action for player B. Let be the courses of action for player A. the position (r.2 Solution to a game with saddle point Consider a two-person zero-sum game with players A and B.Saddle point is the position where the maximin (maximum of the row minimums) and minimax (minimum of the column maximums) coincide. s) is the saddle point. (r. the solution offers a mixed strategy. Note 2: If a game does not have saddle point. For player A and B. when both the players adopt optimal strategy. .
Note: However. Let (r. if none of the pay-offs is circled or boxed.The saddle point of the game is as follows: 1. The minimum pay-off in each row of the pay-off matrix is encircled as shown in example 2. Then. the suggested pure strategy for player A is . the suggested solution for the players is mixed strategy. . The value of the game is . The corresponding position is the saddle point. If any pay-off is circled as well as boxed. The suggested pure strategy for player B is . 3. s) be the saddle point. Hence. that pay-off is the value of the game. the game does not have a saddle point. 2. The maximum pay-off in each column is written within a box as shown in example 2.
Self Assessment Questions True or False: .
if each pay-off in than (or equal to) the corresponding pay-off in the dominates . Alternatively. 9. is greater . 12. . if each pay-off in a specific column is less than the corresponding pay-off in another specific column . Hence. you can say that dominates .5 Dominance In a rectangular game. 8. The pay off matrix represents the gain for top player. Saddle point occurs at row minimum and column maximum. it means strategy offers minor loss than strategy irrespective of A¶s strategy. This means that whatever course of action is adopted by player B. you can say that: a) In the pay-off matrix.7. Therefore. Therefore. then it is called zerosum game. is a better strategy than irrespective of B¶s strategy. Hence you can say that dominates . for A. If the value of the game is zero. the course of action yields greater gains than the course of action . the pay-off matrix of player A is pay-off in one specific row exceeding the corresponding pay-off in another specific row .
is less . a convex combination of two or more courses of action may dominate another course of action. . but it reduces the order of the pay-off matrix. Let be the courses of action for player B. Whenever a course of action (say or ) is dominated by others. Suppose the game has a saddle point.5. if each pay-off in is greater than (or equal to) the corresponding pay-off in the . if each pay-off in than (or equal to) the corresponding pay-off in the dominates . At times.b) In the pay-off matrix. then that course of action ( or ) can be deleted from the pay-off matrix. The procedure to arrive at the saddle point is as follows: a) In the pay-off matrix. 12. Let be the courses of action for player A. Such a deletion will not affect the choice of the solution.1 Solving games using dominance Consider a two-person zero-sum game with players A and B. Use the dominance property in sequence to delete the courses of action of A as well as B till the pair comprising the saddle point remains alone. hence is deleted. Successive reduction of the order using dominance property helps in solving games. dominates .
is deleted. a convex combination of two or more courses of action may dominate another course of action. Note: Sometimes. . dominates . c) Repeat the above steps in succession to achieve the saddle point. hence so. if each pay-off in is less than (or equal to) the corresponding pay-off in the .b) In the pay-off matrix.
Similarly. each pay-off in the third column is less than the corresponding pay-off in the first column. Therefore.Solved Problem 6: Solve the following game using dominance property. dominates . the matrix reduces to . Therefore. Also. So. is deleted. each pay-off in the first row exceeds the corresponding pay-off in the third row. Hence the reduced matrix is as follows: Here. dominates . dominates . Solution: In the pay-off matrix. dominates . Thus.
. b) Strategy for B is . 3) is the saddle point and the solution to the game is as follows: a) Strategy for A is . each pay-off in the second column is less than (or equal to) the corresponding pay-off in the third column. finally the matrix reduces to ± Thus. since 12>8. dominates . (1. And so. Solution: In the pay-off matrix. c) Value of the game is v = 12 Solved Problem 7: Solve the following zero-sum game and find its value.Here.
Here. the course of action Q dominates R. the reduced matrix is as follows: Therefore the solution to the game is: a) Strategy for Company X is B. the reduced matrix is as follows: Here. B dominates A. . Therefore. Similarly. 1<6. C and D. Q dominates P. c) Value of the game is v = 1. C and D. Therefore. the reduced matrix is as follows. b) Strategy for Company Y is Q. After deleting R and S. third as well as fourth rows. After deleting P. After deleting A.And so. Q dominates S. pay-off in the second row is greater than (or equal to) the corresponding pay-offs in the first.
The row whose elements are less than the corresponding elements of another row is __________.Solved Problem 8 In a two-person zero-sum game. the pay-off matrix of A is ± Write down the pay-off matrix of player B. Solution: The pay-off matrix of B is as follows: Self Assessment Questions Fill in the blanks 10. .
Solve the following rectangular game.7 Terminal Questions 1. In a rectangular game. 12. it is _________. The unit also explains the maximin ± minimax principle. pay-off matrix of player A is as follows: i) Solve the game. characteristics of competitive game and its strategy.11. saddle point and dominance using precise examples.6 Summary The game theory module explains the concept of competitive situations. 12. 2. . If the average of any 2 columns is less than or equal to the corresponding elements of another column.
Players do not communicate with each other. Two ± person zero sum game. 4. True 9. Briefly describe characteristics of competitive game. Each player has finite number of courses of action or moves. When a player plays only one strategy irrespective of opponents µmove. False 10. Two.8 Answers to SAQs and TQs Answers to Self Assessment Questions 1. Explain maximin. conflicting interest 2. 4. 3. 3. 5. 7. 6.minimax principle. more. When the value of the game is zero (0). solve the game. True 8.ii) Write down the pay-off matrix of B and then. Deleted 11. Deleted . 12.
Operations Research an introduction IV Education ± Homdy A. 0). 0. 0). Problems in operations Research (Methods and Solutions) ± P. Taha. 0. Gupta. 3. 0).3 for answer.Macmillan Publishing Company.9 References Below is the list of reference books for Unit 12: 1. K. 0. Operations research theory and applications ± J. 2. Value of the game is 1.4 for answer. 1. Value is 5. 4. 3. while B¶s Strategy (0. K. A¶s Strategy (0. 0). 1. Refer to section 12. 12. Manmohan ± Sultan Chand and Sons Publishers. Theory and Problems of Operations Research ± Richard Bronsoon-Schaum¶s Outline Series. Refer to section 12.Answers to Terminal Questions 1. while B¶s strategy is (1. 2. Copyright © 2009 SMU . 4. Sharma-Macmillan India Ltd. A¶s strategy is (1.
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