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A LPP with 2 decision variables x1 and x2 can be solved easily by graphical method. We consider the x1 x2 – plane where we plot the solution space, which is the space enclosed by the constraints. Usually the solution space is a convex set which is bounded by a polygon; since a linear function attains extreme (maximum or minimum) values only on boundary of the region, it is sufficient to consider the vertices of the polygon and find the value of the objective function in these vertices. By comparing the vertices of the objective function at these vertices, we obtain the optimal solution of the problem. The method of solving a LPP on the basis of the above analysis is known as the graphical method. 2.4.1 An Algorithm for solving a linear programming problem by Graphical Method: (This algorithm can be applied only for problems with two variables). Step – I: Formulate the linear programming problem with two variables (if the given problem has more than two variables, then we cannot solve it by graphical method). Step – II: Consider a given inequality. Suppose it is in the form a1x1 + a2x2 clip_image047 b (or a1x1 + a2x2 clip_image015[8] b). Then consider the relation a1x1 + a2x2 = b. Find two distinct points (k, l), (c, d) that lie on the straight line a1x1 + a2x2 = b. This can be found easily: If x1 = 0, then x2 = clip_image049. If x2 = 0, then x1 = clip_image051. Therefore (k, l) = (0, clip_image049[1]) and (c, d) = (clip_image051[1],0) are two points on the straight line a1x1 +a2x2 = b. Step – III: Represent these two points (k, l), (c, d) on the graph which denotes X– Y-axis plane. Join these two points and extend this line to get the straight line which represents a1x1 + a2x2 = b.

Step – IV: a1x1 + a2x2 = b divides the whole plane into two half planes, which are a1x1 + a2x2 clip_image047[1] b (one side) and a1x1 + a2x2 clip_image055 b (another side). Find the half plane that is related to the given inequality. Step – V: Do step-II to step-IV for all the inequalities given in the problem. The intersection of the half-planes related to all the inequalities and x1 clip_image055[1] 0, x2 clip_image055[2] 0 , is called the feasible region ( or feasible solution space). Now find this feasible region. Step – VI: The feasible region is a multisided figure with corner points A, B, C, …(say). Find the co-ordinates for all these corner points. These corner points are called as extreme points. Step – VII: Find the values of the objective function at all these corner/ extreme points. Step – VIII: If the problem is a maximization (minimization) problem, then the maximum (minimum) value of z among the values of z at the corner/extreme points of the feasible region is the optimal value of z. If the optimal value exists at the corner/extreme point, say A(u, v), then we say that the solution x1 = u and x2 = v is an optimal feasible solution. Step – IX : Write the conclusion (that include the optimum value of z, and the coordinates of the corner point at which the optimum value of z exists).

Q 2. Explain the algorithm for solving a linear programming problem by graphical method Ans. Linear programming (LP) is a mathematical method for determining a way to achieve the best outcome (such as maximum profit or lowest cost) in a given mathematical model for some list of requirements represented as linear equations. More formally, linear programming is a technique for the optimization of a linear objective function, subject to linear equality and linear inequality constraints. Given a polytope and a real-valued affine function defined on this polytope, a linear programming method will find a point on the polytope where this function has the smallest (or largest) value if such point exists, by searching through the polytope vertices.

An Algorithm for solving a linear programming problem by Graphical Method: (This algorithm can be applied only for problems with two variables). Step – I: Formulate the linear programming problem with two variables (if the given problem has more than two variables, then we cannot solve it by graphical method). Step – II: Consider a given inequality. Suppose it is in the form a1x1 + a2x2 <= b (or a1x1 + a2x2 >= b). Then consider the relation a1x1+ a2x2= b. Find two distinct points (k, l), (c, d) that lie on the straight line a1x1+ a2x2= b. This can be found easily: If x1= 0, then x2 = b / a2. If x2=0, then x1 = b / a1. Therefore (k, l) = (0, b / a2) and (c, d) = (b / a1, 0) are two points on the straight line a1x1+a2x2= b. Step – III: Represent these two points (k, l), (c, d) on the graph which denotes X– Y-axis plane. Join these two points and extend this line to get the straight line which represents a1x1+ a2x2= b. Step – IV: a1x1 + a2x2= b divides the whole plane into two half planes, which are a1x1+ a2x2 <= b (one side) and a1x1+ a2x2 >= b (another side). Find the half plane that is related to the given inequality. Step – V: Do step-II to step-IV for all the inequalities given in the problem. The intersection of the half-planes related to all the inequalities and x1 >= 0, x2 >= 0 , is called the feasible region (or feasible solution space). Now find this feasible region. Step – VI: The feasible region is a multisided figure with corner points A, B, C, … (say). Find the co-ordinates for all these corner points. These corner points are called as extreme points. Step – VII: Find the values of the objective function at all these corner/extreme points. Step – VIII: If the problem is a maximization (minimization) problem, then the maximum (minimum) value of z among the values of z at the corner/extreme points of the feasible region is the optimal value of z. If the optimal value exists at the corner/extreme point, say A (u, v), then we say that the solution x1= u and x2= v is an optimal feasible solution. Step – IX: Write the conclusion (that include the optimum value of z, and the coordinates of the corner point at which the optimum value of z exists).

Q 3. A manufacturing firm has discontinued production of a certain unprofitable product line. This created considerable excess production capacity. Management is considering to devote this excess capacity to one or more of three products: call them product 1, 2 and 3. The available capacity on the machines which might limit output are given below : Machine Type Milling Machine Lathe Grinder Available Time (in machine hours week) 250 150 50 per

The number of machine-hours required for each unit of the respective product is given below : Productivity (in Machine hours/Unit) Machine Type Product Product 1 2 Milling 8 2 Machine Lathe 4 3 Grinder 2 – Product 3 3 0 1

The unit profit would be Rs. 20, Rs. 6 and Rs. 8 for products 1, 2 and 3. Find how much of each product the firm should produce in order to maximize profit ? Ans. Let x1, x2, x3 units of products 1, 2 and 3 are produced in a week. Then total profit from these units is Z = 20 x1 + 6 x2 + 8 x3 To produce these units the management requires 8x1 + 2x2 + 3x3 machine hours of Milling Machine 4x1 + 3x2 + 0 x3 machine hours of Lathe and 2x1 + x3 machine hours of Grinder Since time available for these three machines are 250, 150 and 50 hours respectively, we have 8x1 +2x2 + 3x3 4x1 + 3x2 150 250

2x1 + x3 50. Obviously x1, x2, x3 ³ 0 Thus the problem is to

Maximize Z = 20x1 + 6x2 + 8x3 Subject to 8x1 + 2x2 + 3x3 4x1 + 3x2 2x1 + x3 150 50, 250

x1, x2, x3 0. Rewriting in the standard form, Maximize Z = 20x1 + 6x2 + 8x3 + 0S1 + 0S 2 + 0S 3 Subject to 8x1 + 2x2 + 3x3 + S1 = 250 4x1 + 3x2 + S2 = 150 2x1 + x3 + S3 = 50, x1, x2, x3, S1, S2, S 3 0. The initial basic solution is

X0 = = The initial simplex table is given by

x1 enters the basic set of variables replacing the variable S3. The first iteration gives the following table:

x2 enters the basic set of variables replacing the variable s2. The second iteration gives the following table:

x3 enters the basic set of variables replacing the variable x1. The third iteration yields the following table:

Since all zj – cj 0 in the last row, the optimum solution is 700. i.e., the maximum profit is Rs. 700/- which is achieved by producing 50 units of product 2 and 50 units of product 3. Q 4. Determine optimal solution to the problem given below. Obtain the initial solution by VAM. Write down the differences between PERT and CPM. Ans. Solution: Various Methods for finding initial solution to a transportation problem 1. North – west corner method 2. Minimum Matrix Method (MMM) 3.Vogel’s Approximation Method (VAM) Since the aggregate supply is 220 units and the aggregate demand is 200 units, we shall introduce a dummy market, M5, for an amount equal to 20 (the difference between the aggregate supply and demand), with all cost elements equal to zero. The solution is given in a one table. The initial solution obtained by

VAM is degenerate, since it contains only seven basic variables (since there are only 7 cells occupied and not 8 (= 4 + 5 -1) required for non-degeneracy). Here empty cells P1M3, P2M3, P3M1, P3M2, P3M4, P3M5, and P4M3 are independent while others are not. For removing degeneracy place in the cell P3M5and then test it for optimality. This is done in the following table. This solution is found to be non-optimal. The improved solution is:

Therefore the total cost is: Rs. (6 = 700. 30) + (1 10) + (3 20) + (0 50) + (7 60) + (1 30)

differences between PERT and CPM

CPM was developed by Du Pont and the emphasis was on the trade-off between the cost of the project and its overall completion time (e.g. for certain activities it may be possible to decrease their completion times by spending more money - how does this affect the overall completion time of the project?) Definition: In CPM activities are shown as a network of precedence relationships using activity-on-node network construction – Single estimate of activity time – Deterministic activity times USED IN : Production management - for the jobs of repetitive in nature where the activity time estimates can be predicted with considerable certainty due to the existence of past experience. PERT was developed by the US Navy for the planning and control of the Polaris missile program and the emphasis was on completing the program in the shortest possible time. In addition PERT had the ability to cope with uncertain activity completion times (e.g. for a particular activity the most likely completion time is 4 weeks but it could be anywhere between 3 weeks and 8 weeks).

Basic difference between PERT and CPM: Though there are no essential differences between PERT and CPM as both of them share in common the determination of a critical path and 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. PERT: 1. Since PERT was developed in connection with an R and D work, therefore it had to cope with the uncertainties which are associated with R and D activities. In PERT, total project duration is regarded as a random variable and therefore associated probabilities are calculated so as to characterize it. 2. It is an event-oriented network because in the analysis of network emphasis is given an important stages of completion of task rather than the activities required to be performed to reach to a particular event or task. 3. PERT is normally used for projects involving activities of non-repetitive nature in which time estimates are uncertain.

4. 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. CPM: 1. Since CPM was developed in connection with a construction project which consisted of routine tasks whose resources requirement and duration was known with certainty, therefore it is basically deterministic. 2. CPM is suitable for establishing a trade-off for optimum balancing between schedule time and cost of the project. 3. CPM is used for projects involving activities of repetitive nature. Project scheduling by PERT-CPM: It consists of three basic phases: planning, scheduling and controlling. 1. Project Planning. 2. Scheduling. 3. Project Control.

Q 5. Explain Project Management (PERT). Ans. PERT Complex projects require a series of activities, some of which must be performed sequentially and others that can be performed in parallel with other activities. This collection of series and parallel tasks can be modeled as a network .In 1957 the Critical Path Method (CPM) was developed as a network model for project management. CPM is a deterministic method that uses a fixed time estimate for each activity. While CPM is easy to understand and use, it does not consider the time variations that can have a great impact on the completion time of a complex project. The Program Evaluation and Review Technique (PERT) is a network model that allows for randomness in activity completion times. PERT was developed in the late 1950's for the U.S. Navy's Polaris project having thousands of contractors. It has the potential to reduce both the time and cost required to complete a project. The Network Diagram In a project, an activity is a task that must be performed and an event is a milestone marking the completion of one or more activities. Before an activity can

begin, all of its predecessor activities must be completed. Project network models represent activities and milestones by arcs and nodes. PERT originally was an activity on arc network, in which the activities are represented on the lines and milestones on the nodes. Over time, some people began to use PERT as an activity on node network. For this discussion, we will use the original form of activity on arc. The PERT chart may have multiple pages with many sub-tasks. The following is a very simple example of a PERT diagram: PERT Chart

The milestones generally are numbered so that the ending node of an activity has a higher number than the beginning node. Incrementing the numbers by 10 allows for new ones to be inserted without modifying the numbering of the entire diagram. The activities in the above diagram are labeled with letters along with the expected time required to complete the activity. Steps in the PERT Planning Process PERT planning involves the following steps: Identify the specific activities and milestones. Determine the proper sequence of the activities. Construct a network diagram. Estimate the time required for each activity. Determine the critical path. Update the PERT chart as the project progresses.

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