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MB0048 Operations Research (4 credits)

(Book ID: B1631)

ASSIGNMENT- Set 1

Marks 60

Roll No. 1208000294

Student Name: patil rasika somnath

Email Id:rasikapatil111.rp@gmail.com

Phone no: 9833172911

Note: Assignment Set -1 must be written within 6-8 pages. Answer all questions

Q1. Explain the scope of Operations Research. What are the features of Operations

Research?

10 marks (300 - 350 words each)

Answer:

Scope of Operations Research

(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.

(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.

(iii) Planning:

In modern times, it has become necessary for every government to have careful planning, for

economic development of the country. OR techniques can be fruitfully applied to maximize

the per capita income, with minimum sacrifice and time. A government can thus use OR for

framing future economic and social policies.

(iv) Agriculture:

With increase in population, there is a need to increase agriculture output. But this cannot be

done arbitrarily. There are several restrictions. Hence the need to determine a course of action

serving the best under the given restrictions. You can solve this problem by applying OR

techniques.

(v) In Hospitals:

OR methods can solve waiting problems in out-patient department of big hospitals and

administrative problems of the hospital organizations.

(vi) In Transport: You can apply different OR methods to regulate the arrival of trains and

processing times minimize the passengers waiting time and reduce congestion, formulate

suitable transportation policy, thereby reducing the costs and time of trans-shipment.

(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.

Features of Operation Research

Some key features of OR are as follows:

1. OR is system oriented. OR scrutinizes the problem from an organizations perspective. The

results can be optimal for one part of the system, while the same can be unfavorable for

another part of the system.

2. OR imbibes an inter-disciplinary team approach. Since no single individual can have a

thorough knowledge of all fast developing scientific know-how, personalities from different

scientific and managerial cadre form a team to solve the problem.

3. OR makes use of scientific methods to solve problems.

4. OR increases effectiveness of the managements decision-making ability.

5. OR makes use of computers to solve large and complex problems.

6. OR offers a quantitative solution.7. OR also takes into account the human factors.

Q2. Six Operators are to be assigned to five jobs with the cost of assignment in Rs. given

in the matrix below. Determine the optimal assignment. Which operator will have no

assignment?

Operators

Jobs

1 2 3 4 5

1 6 2 5 2 6

2 2 5 8 7 7

3 7 8 6 9 8

4 6 2 3 4 5

5 9 3 8 9 7

6 4 7 4 6 8

Answer:

Operator Jobs

1 2 3 4 5

1 6 2 5 2 6

2 2 5 8 7 7

3 7 8 6 9 8

4 6 2 3 4 5

5 9 3 8 9 7

6 4 7 4 6 8

Step-1. Subtract with least number of each row with rest of elements of that row.

Operator Jobs

1 2 3 4 5

1 4 0 3 0 4

2 0 3 6 5 5

3 1 2 0 3 2

4 4 0 1 2 3

5 6 0 5 6 4

6 0 3 0 2 4

Step-II. Subtract with least number of each column with rest of elements of that column.

Operator Jobs

1 2 3 4 5

1 4 0 3 0 2

2 0 3 6 5 3

3 1 2 0 3 0

4 4 0 1 2 1

5 6 0 5 6 2

6 0 3 0 2 2

Step-3. We make the assignment in each row and column.

Operator Jobs

1 2 3 4 5

1 4 0 3 0 2

2 0 3 6 5 3

3 1 2 0 3 0

4 4 0 1 2 1

5 6 0 5 6 2

6 0 3 0 2 2

As from the above table it is obvious that there 5 jobs and six operators so we can assign

jobs to only five operators.

Operator Jobs

1 4

2 1

3 5

5 2

6 3

Job 1 is assigned to operator 2

Job 2 is assigned to operator 4 or 5.

Job 3 is assigned to operator 6.

Job 4 is assigned to operator 1

Job 5 is assigned to operator 3

Q3. a. Explain the Monte Carlo Simulation.

Answer:

Monte Carlo simulation is a computerized mathematical technique that allows people to

account for risk in quantitative analysis and decision making. The technique is used by

professionals in such widely disparate fields as finance, project management, energy,

manufacturing, engineering, research and development, insurance, oil & gas, transportation,

and the environment.

Monte Carlo simulation furnishes the decision-maker with a range of possible outcomes and

the probabilities they will occur for any choice of action.. It shows the extreme possibilities

the outcomes of going for broke and for the most conservative decisionalong with all

possible consequences for middle-of-the-road decisions.

The technique was first used by scientists working on the atom bomb; it was named for

Monte Carlo, the Monaco resort town renowned for its casinos. Since its introduction in

World War II, Monte Carlo simulation has been used to model a variety of physical and

conceptual systems.

Q4. Explain the Characteristics and Constituents of a Queuing System.

Answer:

CHARACTERISTICS OF A QUEUING MODEL

A queuing model may be looked for four basic characteristics:

(i) Arrival characteristics (or input source or calling population)

(ii) Queue or the waiting line itself

(iii) Service facility (or service mechanism), and

(iv) Customer behavior.

A schematic framework of queuing system is shown in the figure:

Queue representation

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Q5. a. What do you mean by dominance? State the dominance rules for rows and

columns.

Answer:

In game theory, dominant strategy (commonly called simply dominance) occurs when one

strategy is better than another strategy for one player, no matter how that player's opponents

may play. Many simple games can be solved using dominance. The opposite, intransitivity,

occurs in games where one strategy may be better or worse than another strategy for one

player, depending on how the player's opponents may play.

Dominance rules for rows and columns

(a) For rows : (i) In the payoff matrix if all the entries in a row i1 are greater than or equal

to the corresponding entries of another row i2, then row i2 is said to be dominated by row i 1.

In this situation row i2 of the payoff matrix can be deleted.

e.g., i2 = ( 1 , 2, -1) is dominated by i1 = (2, 2, 1), hence (1, 2, - 1 ) can be deleted.

(ii) If sum of the entries of any two rows is greater than or equal to the corresponding entry of

a third row, then that third row is said to be dominated by the above two rows and hence third

row can be deleted.

(b) For columns : (i) In the payoff matrix if all the entries in a column j

1

are less than or

equal to the corresponding entries of another column h then column h is said to be

dominated by column j 1. In this situation column h of the payoff matrix can be deleted.

e.g., j

2

= (2 4) is dominated by j1 =(1 2 ). Hence (2 4) can be deleted.

(ii) If sum of the entries of any two columns is less than or equal to the corresponding entry

of a third column, then that third column is said to be dominated by the above two columns

and hence third column can be deleted.

b. Find the saddle point of the following game and state the optimum strategies for

players A and B .

A

1 2 3 4 5

1 9 3 1 8 0

B 2 6 5 4 6 7

3 2 4 4 3 8

4 5 6 2 2 1

Answer: Assuming the existence of the value of the game, if the value is

, then is

called the saddle point of the pay-off matrix. It is clear that there may exist more than one

saddle point in a pay-off matrix of a game with pure strategy. The principle of determining a

saddle point or points and the value of a game is called the maximin minimax principle. If the

value of the game is

and

and

Determination of the value of a game using maximin minimax principle

Consider the following 3x4 pay-off matrix for A.

Player B

Player A

Row minima

4 6 -2 1 -2

3 3 4 2 2

4 5 5 1 1

Column maxima 4 6 5 2 2/2

As pure moves are

to select a pure move.

For As pure move

, his

gain cannot be less than 2.

Now considering Bs point of view, reasoning in the same way, his loss cannot be more than

2.

In case of A, we arrived at 2 by maximizing the minimum gain of A, and for B we arrived at

2 by minimizing the maximum loss of B, which are equal. Hence the value of the game exists

and is equal to 2. The optimal strategies are

and

position of the pay-off matrix is the saddle point of the pay-off matrix.

There may exist more than one saddle point and in that case the optimal strategies are not

unique.

There may not exist a saddle point and in that case the value of the game cannot be

determined by the above principle even if it exists.

Q6. A. What are the differences between PERT and CPM?

Answer: CPM or Critical Path Method":

Tool to analyze project and determine duration, based on identification of "critical

path" through an activity network.

Knowledge of the critical path can permit management of the project to change

duration.

A single estimate for activity time was used that did not allow for variation in activity

times

Activity times are assumed to be known or predictable ("deterministic")

Activities are represented as nodes or circles

PERT or "Project Evaluation and Review Technique":

Another derivative of the GANTT chart

Multiple time estimates were used for each activity that allowed for variation in

activity times

Activity times are assumed to be random, with assumed probability distribution

("probabilistic")

Activities are represented by arrowed lines between the nodes or circles

Differences between PERT and CPM

PERT is probabilistic whereas CPM is deterministic

In CPM, estimates of activity duration are based on historical data

In PERT, estimates are uncertain and we talk of ranges of duration and the probability

that an activity duration will fall into that range

CPM concentrates on Time/Cost trade off.

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