MB0048 – Operations Research

1. A toy company manufactures two types of dolls, a basic version doll-A and a deluxe version doll-B. Each doll of type B takes twice as long to produce as one of type A, and the company would have time to make maximum of 1000 per day. The supply of plastic is sufficient to produce 1000 dolls per day (both A & B combined). The deluxe version requires a fancy dress of which there are only 500 per day available. If the company makes a profit of Rs 3.00 and Rs 5.. per doll, respectively on doll A and B, then how many of each doll should be produced per day in order to maximize the total profit. Formulate this problem.
Formulati on:
Let X1 and X2 be the number of dolls produced per day of type A and B, respectively. Let the A require t hrs. So that the doll B require 2t hrs. So the total time to manufacture X1 and X2 dolls should not exceed 2000t hrs.
Therefore, tX1 + 2tX2 ≤

2000t Other constraints are simple. Then the linear programming problem becomes: Maximize p = 3 X1 + 5 X2
Subject restrictions, to

X1 + 2X2 ≤ 2000 (Time

constraint) X1 + X2 ≤ 1500 (Plastic constraint) X2 ≤ 600 (Dress constraint) And non-negatively restrictions

For example. 4. X2 ≥ 0 2. Just we can produce so many units of product does not mean that they can be sold. The individual who makes use of linear programming methods becomes more objective than subjective. 3. which must be taken into consideration. market demand etc. 5.) 2.X1. It also helps in providing better tools for adjustment to meet changing conditions. machines etc. labor. It improves the quality of decisions. Row reduction matrix . Linear programming can handle such situation also. A significant advantage of linear programming is highlighting of such bottle necks. bottle necks may occur. In a production process. The linear programming technique helps to make the best possible use of available productive resources (such as time. Most business problems involve constraints like raw materials availability. Solve the following Assignment Problem Operation s O1 O2 O3 M1 10 9 15 M2 15 10 16 M3 12 9 16 M4 11 12 17 Since the number of rows are less than number of columns. in a factory some machines may be in great demand while others may lie idle for some time. What are the advantages of Linear programming techniques? 1. 3. adding a dummy row and applying Hungarian method.

Operations O1 O2 O3 M1 10 9 15 M2 15 10 16 M3 12 9 16 M4 11 12 17 .

then the problem is called an integer programming (IP) or integer linear programming (ILP) problem. is a class of problems that are. "at least as hard as the hardest problems in NP").TOTAL 35 Therefore. M2) arbitrarily. O3 – M2 AND O4 – M4. What is programming? integer If the unknown variables are all required to be integers. the optimum assignment schedule is O1 – M1. 0-1 integer programming or binary integer programming (BIP) is the special case of integer programming where variables are required to be 0 or 1 (rather than .O4 0 0 0 0 Optimum assignment solution Operations O1 O2 O3 O4 M1 [0] x 1 M2 5 1 M3 2 M4 1 3 x [0] x [0] x x x [0] Hungarian Method leads to multiple solutions. O1 – M1 10 O2 09 O3 16 – – M3 M2 O4 – M4 00 -----------------------. In contrast to linear programming. 4. in computational complexity theory. which can be solved efficiently in the worst case. integer programming problems are in many practical situations (those with bounded variables) NP-hard (non-deterministic polynomial-time hard). Selecting (03. O2 – M3. informally.

If only some of the unknown variables are required to be integers. This problem is also classified as NP. and in fact the decision version was one of Karp's 21 NP-complete problems.hard.arbitrary integers). then the problem is called a mixed integer programming (MIP) problem. These are generally also NP-hard. .

i. Step 4: Obtain a consistent set of values (or states) for the variables.e. . by actually following the relationships among the variables for each of the alternative decisions. 5. Advanced algorithms programs include: • • • • • for solving integer linear cutting-plane method branch and bound branch and cut branch and price if the problem has some extra structure. Step 2: List the statement of objectives of the problem.. a sample of probabilistic variables. Such integer-programming algorithms are discussed by Padberg and in Beasley. Explain the different steps involved in simulation methodologies? The methodology developed for simulation process consists of the following seven steps: Step 1: Identify and clearly define the problem. it may be possible to apply delayed column generation.There are however some important subclasses of IP and MIP problems that are efficiently solvable. Step 7: Tabulate the various values of the decision criterion and choose the best policy. Step 6: Repeat steps 2 and 3 until a sufficient number of samples are available. Step 3: Formulate the variables that influence the situation and an extract or probabilistic description of their possible values or states. random sampling technique maybe used. Step 5: Use the sample obtained in step 2 to calculate the values of the decision criterion. most notably problems where the constraint matrix is totally uni-modular and the right-hand sides of the constraints are integers.

Both are based on the network representation of activities and their scheduling that determines the most critical activities to be controlled so as to meet the completion date of the project.6. Though there are no essential differences between PERT and CPM as both of them share in common the determination of a critical path. Write down the basic difference between PERT &CPM. .

2. it is basically deterministic. . CP M 1. which consisted of routine tasks whose resource requirements and duration were known with certainty. 2. CPM is suitable for establishing a trade-off for optimum balancing between schedule time and cost of the project. Therefore. it had to cope with the uncertainties that are associated with R&D activities. 4. CPM is used for projects involving activities of repetitive nature. It is an event-oriented network because in the analysis of a network. PERT is normally used for projects involving activities of non-repetitive nature in which time estimates are uncertain. 3. PERT was developed in connection with an R&D work. the total project duration is regarded as a random variable.PER T Some key points about PERT are as follows: 1. Therefore. In PERT. 3. Therefore. associated probabilities are calculated so as to characterize it. CPM was developed in connection with a construction project. It helps in pinpointing critical areas in a project so that necessary adjustment can be made to meet the scheduled completion date of the project. emphasis is given on the important stages of completion of a task rather than the activities required to be performed to reach a particular event or task.

A broad classification of OR models You can broadly classify OR models into the following types. A model is an idealized representation or abstraction of a real-life system. graphs and charts. represented on a smaller scale. There are two types of physical models: a. Analog models Iconic models are primarily images of objects or systems. These models can simulate the actual performance of a product. A model aids the decision-making process as it provides a simplified description of complexities and uncertainties of a problem in a logical structure.MB0048 – Operations Research ASSIGNMENT SET 2 1. b. What is a model in OR?. Discuss different models available in OR . The objective of a model is to identify significant factors that affect the reallife system and their interrelationships. Mathematical or Symbolic Models employ a set of mathematical symbols to represent the decision variable of the system. They bring out significant factors and interrelationships in pictorial form to facilitate analysis. They are designed to tackle specific problems. Physical Models include all form of diagrams. Iconic models b. a. The variables are . such as toys. The most significant advantage of a model is that it does not interfere with the real-life system. Analog models are small physical systems having characteristics similar to the objects they represent.

Deterministic model in which everything is defined and the results are certain. such as an EOQ model. sequencing. By the extent of Generality Models can be further classified as follows: . By nature of Environment: Models can be further classified as follows: a. d. and replacement models. Probabilistic Models in which the input and output variables follow a defined probability distribution.related by mathematical systems. such as the Games Theory. Some examples of mathematical models are allocation. b. c.

For example: Linear programming. b. X2 ≥0 Soln : Min W = 15Y1 + 10Y2 + 20Y3 Subject to 3Y1 + Y2 + 5Y3 ≥ 4 Y1 + 2Y2 + 2Y3 ≥ 5 . General Models are the models which you can apply in general to any problem. 2. For example: You can use the sales response curve or equation as a function of only in the marketing function.a. Write dual of Max Z = 4X1 + 5X2 Subject to: 3X1 + X2 ≤ 15 X1 + 2X2 ≤ 10 5X1 + 2X2 ≤ 20 X1. Specific Models on the other hand are models that you can apply only under specific conditions.

or. The Monte-Carlo method is a simulation technique in which statistical distribution functions are created by using a series of random numbers. Y2. This approach has the ability to develop many months or years of data in a matter of few minutes on a digital computer.Y1. Write a note on Monte-Carlo simulation. is not possible by analytical method. where solution of the mode. The Monte-Carlo simulation procedure can be summarized in the following steps: . The method is generally used to solve the problems which cannot be adequately represented by mathematical models. Y3 ≥0 3.

and b) Identify the main factors which have the greatest effects on the objectives of the problem Step 2: Construct an appropriate model: a) Specify the variables and parameters of the model. state the conditions under which the experiment is to be performed. b) Select a random number generator and create the random numbers to be used in the simulation. d) Specify the manner in which time will change. . Step 3: Prepare the model for experimentation: a) Define the starting conditions for the simulation. Step 5: Summarize and examine the results obtained in step 4. experiment with the model: a) Define a coding system that will correlate the factors defined in step 1 with the random numbers to be generated for the simulation. b) Formulate the appropriate decision rules. Step 6: Evaluate the results of the simulation. c) Associate the generated random numbers with the factors identified in step 1 and coded in step 4 (a).e. Step 4: Using step 1 to 3. e) Define the relationship between the variables and parameters. and b) Specify the number of runs of simulation to be made.Step 1: problem: Define the a) Identify the objectives of the problem. c) Identify the type of distribution that will be used – Models use either theoretical distributions or empirical distributions to state the patterns the occurrence associated with the variables.. i.

and to identify the minimum time needed to complete the total project. It is basically a method to analyze the tasks involved in completing a given project. if necessary. organize. Explain PERT Program (Project) Evaluation and Review Technique (PERT) is a project management tool used to schedule.Step 7: Formulate proposals for advice to management on the course of action to be adopted and modify the model. 4. especially the time needed to complete each task. and coordinate tasks within a project. .

Therefore. PERT planning following steps: involves the • Identify the specific activities and milestones. • Determine the critical path. it had to cope with the uncertainties that are associated with R&D activities. • Construct a network diagram. It is an event-oriented network because in the analysis of a network. • Estimate the time required for each activity. 4.Some key points about PERT are as follows: 1. In PERT. Therefore. 2. • Determine the proper sequence of the activities. the total project duration is regarded as a random variable. emphasis is given on the important stages of completion of a task rather than the activities required to be performed to reach a particular event or task.minimax principle Solving a two-person zerosum game . • Update the PERT chart as the project progresses. It helps in pinpointing critical areas in a project so that necessary adjustment can be made to meet the scheduled completion date of the project. PERT is normally used for projects involving activities of non-repetitive nature in which time estimates are uncertain. 5. PERT was developed in connection with an R&D work. associated probabilities are calculated so as to characterize it. 3. Explain Maximini .

. a1n. Also each player would expect his opponent to be calculative. player A Then. a12. a1n.B2. .) . accordingly B’s choice would be B1. … . Let α1 = min { a11. … . Then. a12..Player A and player B are to play a game without knowing the other player’s strategy.. Suppose plays A1. However. α1 is the minimum gain of A when he plays A1 (α1 is the minimum pay-off in the first row. player A would like to maximize his profit and player B would like to minimize his loss. his gain would be a11. Bn.

the least pay-off in the second row.Similarly. the position (r. αm. α2. the game has saddle point. The maximin is α= max I { min j (aij) } Similarly. The value of a game is the expected gain of player A. the maximin and the minimax are equal and the game is said to have saddle point. then the game does not have a saddle point. Suppose A chooses the course of action where αi is maximum. … . if A plays A2. if the maximin and the minimax are equal. … . Saddle point is the position where the maximin (maximum of the row minimums) and minimax (minimum of the column maximums) coincide. Saddle point In a two-person zero-sum game. If the maximin occurs in the r row and if the minimax occurs in the s column. Am. then his minimum gain is α2. You will find corresponding to A’s play A1. v = ars is the common value of the maximin and the minimax. s) is the saddle point. when both the th th . when B plays. the minimum gains are the row minimums α1. th This is the maximum pay-off in the j column. The minimum of the column maximums in the pay-off matrix is called minimax. he would minimise his maximum loss. The minimax is β= min j { max I (aij) } If α = β = v (say). Here. The maximum loss to B is when Bj is βj = max i ( aij ). A2. Then the maximum of the row minimum in the pay-off matrix is called maximin. It is called the value of the game. If α < β.

the player’s strategy is pure strategy.players adopt optimal strategy. Note: If a game has saddle point. . s). (r.

Let B1. the suggested solution for the players is mixed strategy.Bn be the courses of action for player B. … . The LPP is a class of mathematical programming where the functions representing the objectives and the constraints are linear. The maximum pay-off in each column is written within a box. The value of the game is ars. s) be the saddle point. … . 2. Write short notes on the following: a. Then. The minimum pay-off in each row of the pay-off matrix is encircled. B2. Let (r. Note: However. that pay-off is the value of the game. 6. the suggested pure strategy for player A is Ar. The saddle point of the game is as follows: 1. Optimization refers to the maximization or minimization of the objective functions. 3. The suggested pure strategy for player B is Bs. Hence.Am be the courses of action for player A.Solution to a game with saddle point Consider a two-person zero-sum game with players A and B. You can define the general linear programming model as follows: Maximize Minimize: or Z = c1X1 + c2X2 + --- . Linear programming focuses on obtaining the best possible output (or a set of outputs) from a given set of limited resources. Linear Programming transportation Linear Programming b. the game does not have a saddle point. if none of the pay-offs is circled or boxed. The corresponding position is the saddle point. Let A1. If any pay-off is circled as well as boxed. A2.

.+ a1nXn ~ b1 a21X1 + a22X2 + --. Xn ≥ 0 .+cnXn Subject to constraints. X2.+ a2nXn ~ b2 am1X1 + am2xX2 + --.+ amnXn ~ bm and X1. ……………….. the a11X1 + a12X2 + --.

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. in terms of the above formulation the coefficients cj.n) are the decision variables. the “worth” per unit of activity is equal to cj. Then is to objective m Minimize Z = ∑i=1 ∑j=1 n . For a given supply at each source and a given demand at each destination.. The standard mathematical model for the transportation problem is as follows. each of which has available ai (i = 1. bi and aij are interpreted physically as follows. 2. 2. 2… m) units of homogeneous product and n destinations. m ∑i=1 ai = n ∑j=1 bj (1) The condition (1) is guaranteed by creating either a fictitious destination with a demand equal to the surplus if total demand is less than the total supply or a (dummy) source with a supply equal to the shortage if total demand exceeds total supply. …. 2. It is assumed that the total supply and the total demand are equal. If bi is the available amount of resources i. 3 ---.. The cost cij of transporting one unit of the product from the i th source to the j destination is given for each i and j. where aij is the amount of resource i that must be allocated to each unit of activity j. each of which requires b j (j = 1. the model studies the minimization of the cost of transporting a commodity from a number of sources to several destinations. Note that. Transporta tion Transportation model is an important class of linear programs. ≥ (greater than) or = (equal). Let Xij be number of units of the homogenous product to be transported from source i to the destination j. 3 ------.Where. m. Here ~ is either ≤ (less than). bi and aij (i = 1. 2…. 3. Here ai and bj are positive th integers.n) are constants determined from the technology of the problem and Xj (j = 1. The transportation problem involves m sources. The objective is to develop an integral transportation schedule that meets all demands from the inventory at a minimum total transportation cost. j = 1. cj. n) units of products.

j = 1. 2. (2) n -------------. -------------. 2. 3. 3. m and ∑j=1 bj.CIJ Xij Subject to m ∑i=1 ai. i = 1. n With all XIJ ≥ 0 A necessary and sufficient condition for the existence of solution to the transportation problem (2) is: m a feasible n ∑i=1 ai = ∑j=1 bj .

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