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LECTURE 1
INTRODUCTION TO OPERATIONS RESEARCH I
DR. ANUP KUMAR TRIPATHI
DEPARTMENT OF MINING ENGINEERING

NATIONAL INSTITUTE OF TECHNOLOGY KARNATAKA (NITK)
SURATHKAL − 575025, INDIA
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INTRODUCTION TO OPERATIONS RESEARCH I
OPERATIONS RESEARCH MATHEMATICAL MODELS

 The OR decision problem formulation requires identifying three main components:
1. What are the decision alternatives?
2. Under what restrictions are the decisions made?
3. What is an appropriate objective criterion for evaluating the alternatives?
 Principal components of an OR model:

1. Alternatives
2. Restrictions
3. Objective criterion
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 Alternatives of the decision problem can take the form of unknown variables.
 Variables are used to construct the restrictions and objective criterion in the form of appropriate
mathematical functions.
 The end result is mathematical model relating the variables, constraints and objective function.
 Typical OR model:
 A solution of the model is feasible if it satisfies all the constraints.
 It is optimal if, in addition to being feasible, it yields the best (maximum or minimum) value of the
objective function.
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 Decision problems must include important intangible factors that may not be readily quantifiable.
 Foremost among these factors is the presence of human element in most decision elements.
 Mathematical aspect of OR should be viewed in the wider context of the decision-making process.
 OR models are designed to optimize a specific objective criterion subject to a set of constraints, however
the quality of the resulting solution depends on the completeness of the model in representing the real
system.
The optimum solution of a model is best only for that model.
If the model happens to represent the real system reasonably well, then its solution is optimum also for the
real situation.
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SOLVING THE OR MATHEMATICAL MODEL
 In OR, we do not have a single general technique to solve all mathematical models that can arise in
practice.
Instead, the type and complexity of the mathematical model dictate the nature of the solution method.
 In OR mathematical models:
 Decision variables must be integers or continuous.
 Objective and constraint functions can be linear or non-linear.
 Optimization problems posed by these models give rise to a variety of solution methods, each designed to
account for special mathematical properties of the model.
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 Most prominent and successful of these techniques → linear programming
 All objective and constraint functions linear
 All variables continuous
 Other techniques that deal with other types of mathematical models:

 Integer programming → variables assume integer values
 Dynamic programming → original model decomposed into more manageable sub-problems
 Non-linear programming → functions of the models non-linear
 Network programming → problem modeled as a network
 Above techniques are only a few of the numerous techniques available that are used.
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 A peculiarity of most OR techniques is that solutions are not generally obtained in formula-like closed
forms.
Instead, they are determined by algorithms.
An algorithm provides fixed computational rules that are applied repetitively to the problem, with each
repetition or iteration moving the solution closer to the optimum.
Because the computations associated with each iteration are typically tedious and voluminous, it is
imperative that these algorithms be executed on the computer.
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 Some mathematical models can be so complex that it is impossible to solve them by any of the available
optimization algorithms.
In such cases, it can be necessary to abandon the search for optimal solution and simply seek a good
solution using heuristics.
Heuristics generally applies approximate and practical rules based on experience to produce a good
solution to the problem.
Heuristics is much faster to arrive at the solution in comparison to exact optimization algorithm.
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SIMULATION MODELING AND QUEUING
 Despite impressive advances in mathematical modeling, many real situations still are well beyond the
capabilities of representing systems mathematically.
 Even when it is plausible to formulate a proper mathematical model, the resulting optimization problem
can prove too complex for available solution algorithms.
 Simulation is an alternative approach to modeling complex systems.
It is regarded as the next best thing to observing a real system.
 Queuing models utilize probability and stochastic models to analyze waiting lines.
Simulation estimates the measures of performance by imitating the behavior of the real system.
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The main difference between queuing and simulation is that queuing models are purely mathematical, and
hence are subject to specific assumptions that limit their scope of application.
Simulation, on the contrary, is flexible and can be used to analyze practically any queuing situation.
 Simulation computations, though usually simple, are voluminous.
It is unthinkable to run a simulation model without the use of computer.
 Development of simulation models is costly in terms of both time and resources.
Execution of some simulation models, even on the fastest computers, can be slow.
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LECTURE 2
INTRODUCTION TO OPERATIONS RESEARCH II

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INTRODUCTION TO OPERATIONS RESEARCH II
SYSTEM MODELING AND ANALYSIS

 A few mathematical models developed are true representations of real situation.
This is a rare occurrence in OR, and most applications usually involve varying levels of approximations.
Figure 1 below depicts the levels of abstraction that characterize the development of an OR model.
We abstract or summarize the assumed real world from the real situation by concentrating on the
dominant variables that control the behavior of the real system.
The model expresses in an amenable manner the mathematical functions that represent the behavior of the
assumed real world.
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Figure 1: Levels of abstraction in model development.
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 Modeling is the enterprise of devising a simplified representation of a complex system with the goal of
providing predictions of the system's performance measures of interest.
Such a simplified representation is called a model.
A model is designed to capture certain behavioral aspects of the modeled system which are of interest to
the analyst / modeler in order to gain knowledge and insight into the system's behavior.
 While modeling is ultimately motivated by economic considerations, several motivational strands may be
discerned:
1. Evaluating system performance under ordinary and unusual scenarios.
2. Predicting the performance of experimental system designs.
3. Ranking multiple designs and analyzing their tradeoffs.
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PHASES OF AN OPERATIONS RESEARCH STUDY
 An OR study is rooted in teamwork, where the OR analysts and the client work side by side.
The OR analysts' expertise in modeling must be complemented by the experience and cooperation of the
client for whom the study is being carried out.
 As a decision-making tool, OR is both a science and an art.
It is a science by virtue of the mathematical techniques it embodies, and it is an art because the success of
the phases leading to the solution of the mathematical model depends largely on the creativity and
experience of the operations research team.
Effective [OR] practice requires more than analytical competence: It also requires, among other attributes,
technical judgment (for example, when and how to use a given technique) and skills in communication
and organizational survival.
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 It is difficult to prescribe specific courses of action (similar to those dictated by the precise theory of
mathematical models) for these intangible factors.
We can, however, offer general guidelines for the implementation of OR in practice.
 The principal phases for implementing OR in practice include:

1. Definition of the problem.
2. Construction of the model.
3. Solution of the model.
4. Validation of the model.
5. Implementation of the solution.
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 Phase 3, dealing with model solution, is the best defined and generally the easiest to implement in an OR
study, because it deals mostly with precise mathematical models.
Implementation of the remaining phases is more an art than a theory.
1. Problem Definition
 It involves defining the scope of the problem under investigation.
This function should be carried out by the entire OR team.
The aim is to identify three principal elements of the decision problem:

 description of the decision alternatives,
 determination of the objective of the study, and
 specification of the limitations under which the modeled system operates.
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2. Model Construction
 It entails an attempt to translate the problem definition into mathematical relationships.
If the resulting model fits one of the standard mathematical models, such as linear programming, we can
usually reach a solution by using available algorithms.
Alternatively, if the mathematical relationships are too complex to allow the determination of an analytic
solution, the OR team may opt to simplify the model and use a heuristic approach, or they may consider
the use of simulation, if appropriate.
In some cases, mathematical, simulation, and heuristic models can be combined to solve the decision
problem.
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3. Model Solution
 It is by far the simplest of all OR phases because it involves the use of well-defined optimization
algorithms.
An important aspect of the model solution phase is sensitivity analysis.
It deals with obtaining additional information about the behavior of the optimum solution when the model
undergoes some parameter changes.
Sensitivity analysis is particularly needed when the parameters of the model cannot be estimated
accurately.
In these cases, it is important to study the behavior of the optimum solution in the neighborhood of the
estimated parameters.
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4. Model Validity
 It checks whether or not the proposed model does what it purports to do-that is, does it predict adequately
the behavior of the system under study?
Initially, the OR team should be convinced that the model's output does not include surprises.
In other words, does the solution make sense?
Are the results intuitively acceptable?
On the formal side, a common method for checking the validity of a model is to compare its output with
historical output data.
The model is valid if, under similar input conditions, it reasonably duplicates past performance.
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Generally, however, there is no assurance that future performance will continue to duplicate past
behavior.
Also, because the model is usually based on careful examination of past data, the proposed comparison is
usually favorable.
If the proposed model represents a new or non-existing system, no historical data would be available.
In such cases, we can use simulation as an independent tool for verifying the output of the mathematical
model.
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5. Implementation
 Implementation of the solution of a validated model involves the translation of the results into
understandable operating instructions to be issued to the people who will administer the recommended
system.
The burden of this task lies primarily with the OR team.
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LECTURE 3
INTRODUCTION TO OPERATIONS RESEARCH III

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INTRODUCTION TO OPERATIONS RESEARCH III
HISTORICAL DEVELOPMENT OF OPERATIONS RESEARCH

 OR came into existence as a discipline during WW II when there was a critical need to manage scarce
resources.
 Since war involved strategic and tactical problems that were highly complicated, to expect adequate
solutions from individuals or specialists in a single discipline was unrealistic.
Groups of individuals who were collectively considered specialists in mathematics, economics, statistics
and probability theory, engineering, and behavioural and physical sciences were formed as special units
within the armed forces in order to deal with the strategic and tactical problems of various military
operations.
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 After the war was over, scientists who had been active in military OR groups made efforts to apply OR
approach to civilian problems related to business, industry, research development, etc.
 There were three important factors behind rapid development of using OR approach:
1. Economic and industrial boom after WW II resulted in greater mechanization, automation,
decentralization of operations and division of management functions.
Industrialization resulted in complex managerial problems and therefore application of OR to

managerial decision making became popular.
2. Many operations researchers continued their research after the war.
Consequently some important advancements were made in various OR techniques.
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In 1939, mathematicians L. Kantorvich and T. Koopmans developed mathematical theory of Linear
Programming.
In 1947, G. B. Dantzig developed simplex method for solving linear programs not possible by
graphical method.
Besides LP, many other techniques of OR such as statistical quality control, dynamic programming,
queuing theory and inventory theory were well developed before 1950.
3. Greater analytical power was made available by high-speed computers.
Use of computers made it possible to apply many OR techniques for practical decision analysis.
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 During the 1950s, there was substantial progress in application of OR techniques for civilian activities
along with a greater interest in professional development and education of OR.
Many Colleges and Universities introduced OR in their program curriculum.
Today all organizations recognize usefulness of OR in improving efficiency.
 OR club was formed in England in 1948.
It later changed its name to OR Society of UK.
Its journal OR Quarterly first appeared in 1950.
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 In 1965, project scheduling techniques P.E.R.T. and C.P.M. were developed as efficient tools for
scheduling and monitoring lengthy, complex and expensive projects of that time.
 During the 1960s, OR groups were formed in several organizations.
 Educational and professional development programs were expanded at all levels.
 Certain firms, specializing in decision analysis were also formed.
 Due to OR's multi-disciplinary character and its application in varied fields, it has a bright future →
provided people devoted to study of OR can help meet the needs of society.
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DEFINITIONS OF OPERATIONS RESEARCH
 OR is the application of methods of science to complex problems in the direction and management of
large systems of men, machines, materials and money in industry, business, government and defence.
The distinctive approach is to develop a scientific model of the system incorporating measurement of
factors such as chance and risk, with which to predict and compare outcomes of alternative decisions,
strategies or controls.
The purpose is to help management in determining its policy and actions scientifically.
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 OR is the systematic application of quantitative methods, techniques and tools to the analysis of problems
involving the operation of systems.
 OR utilizes planned approach/ scientific method and an interdisciplinary team in order to represent
complex functional relationships as mathematical models for the purpose of providing a quantitative basis
for decision making and uncovering new problems for quantitative analysis.
 OR is concerned with scientifically deciding how to best design and operate man-machine systems that
usually require allocation of scarce resources.
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 OR is the application of scientific methods, techniques and tools to problems involving the operations of a
system so as to provide those in the control of the system with optimum solutions to the problems.
 OR is the application of the scientific methods by scientists and subject specialists to the study of the
given operation.
Its purpose is to give administration, a basis for predicting quantitatively the most effective results of an
operation under given set of variable conditions and thereby to provide a sound basis for decision-making.
In OR, research techniques and scientific methods are employed for the analysis and also for studying the
current or future problems.
OR offers alternative plans for a problem to the management for decisions.
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Although OR never makes decisions for the management, it presents management with a careful scientific
and quantitative analysis of problem so that the management will be in a more proper position to make
sounder decisions.
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LECTURE 4
LINEAR PROGRAMMING, GRAPHICAL METHOD AND SIMPLEX METHOD I

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LINEAR PROGRAMMING, GRAPHICAL METHOD AND SIMPLEX METHOD I
INTRODUCTION
 We often face situations where decision making is a problem of planning activity.
The problem generally is of utilizing the scarce resources in an efficient manner so as to maximize the profit or to minimize
the cost or to yield the maximum production.
Such problems are called optimization problems.
Linear programming in particular deals with the optimization (maximization or minimization) of linear functions subject to
linear constraints.
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 Linear programming is widely used to tackle a number of industrial, economic, marketing and distribution problems.
This technique has found its applications in numerous important areas.
Oil refineries, chemical industries, steel industries and food processing industries are using linear programming with
considerable success.
In defence, this technique is being employed in inspection, optimal bombing pattern, design of weapons, etc.
Actually linear programming can be applied to any situation where a linear function of variables has to be optimized subject to
a set of linear equations or inequalities.
 This lecture and next seven lectures present the principles of linear programming and the solution methods.
Beginning with the graphical method, the different forms of simplex method for solving linear programming problems and
duality theory are described.
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FORMULATION OF THE LINEAR PROGRAMMING PROBLEM
 To begin with, a problem is to be presented in a linear programming form which requires defining the variables involved,
establishing relationships between them and formulating the objective function and the constraints.
It is illustrated through a few examples, wherein the stress is on the analysis of the problem and formulation of the linear
programming model.
Example 1
A company produces two types of models: M1 and M2.
Each M1 model requires 4 hours of grinding and 2 hours of polishing, whereas each M2 model requires 2 hours of grinding and 5
hours of polishing.
The company has 2 grinders and 3 polishers.
Each grinder works for 40 hours a week and each polisher works for 60 hours a week.
Profit on an M1 model is $3 and on an M2 model is $4.
Whatever is produced in a week is sold in the market.
How should the company allocate the production capacity to two types of models so that it makes the maximum profit in a week?
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Solution
Let x1 be the number of M1 models and x2 the number of M2 models produced per week.
Then the weekly profit in dollars is:
(i)
To produce these number of models, the total number of grinding hours needed per week:
and the total number of polishing hours required per week:
Since the number of grinding hours available is not more than 80 and the number of polishing hours is not more than 180,
therefore:
(ii)
(iii)
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Also since the negative number of models are not produced, obviously we must have:
(iv)
Hence this allocation problem is to find x1, x2 which:
 The variables that enter into the problem are called decision variables.
The expression (i) showing the relationship between the company's goal and the decision variables is called the objective
function.
The inequalities (ii), (iii) and (iv) are called the constraints.
 The objective function and the constraints being all linear, it is a linear programming problem (L.P.P.).
This is an example of a real situation from industry.
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Example 2
Consider the following problem faced by a production planner in a soft-drink plant.
He has two bottling machines A and B.
A is designed for 8-ounce bottles and B for 16-ounce bottles.
However, each can be used on both types with some loss of efficiency.
The following is available:
The machines can be run 8 hours per day, 5 days per week.
Profit in a 8-ounce bottle is 15 cents and on a 16-ounce bottle is 25 cents.
Weekly production of drink cannot exceed 300,000 ounces and the market can absorb 25,000 8-ounce bottles and 7,000 16-ounce
bottles per week.
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The planner wishes to maximize his profit subject, of course, to all the production and marketing restrictions.
Formulate this as a linear programming problem.
Solution
Let x1 units of 8-ounce bottle and x2 units of 16-ounce bottle be produced per week.
Then, the weekly profit in dollars of the production planner is:
(i)
Since an 8-ounce bottle takes 1/100 minutes and a 16-ounce bottle 1/40 minutes on machine A and the machine can run 8 hours
per day, 5 days per week, which means 2400 minutes per week, we therefore have:
(ii)
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Also since an 8-ounce bottle takes 1/60 minutes and a 16-ounce bottle 1/75 minutes on machine B which can run 2400 minutes
per week, we therefore have:
(iii)
As the total weekly production cannot exceed 300,000 ounces, therefore:
(iv)
As the market can absorb at the most 25,000 8-ounce bottles and 7,000 16-ounce bottles per week, therefore:
(v)
Hence this allocation problem of the production planner is to find x1, x2 which:
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Example 3
A firm making castings uses electric furnace to melt iron with the following specifications:
Specifications and costs in dollars of various raw materials used for this purpose are given below:
If the total charge of iron metal required is 4 tonnes, find the weight in kg of each raw material that must be used in the optimal
mix at minimum cost.
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Solution
Let x1, x2, x3 be the amounts in kg of these raw materials.
The objective is to minimize the cost, which means:
(i)
For iron melt to have a minimum of 3.2% carbon:
(ii)
For iron melt to have a maximum of 3.4% carbon:
(iii)
For iron melt to have a minimum of 2.25% silicon:
(iv)
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For iron melt to have a maximum of 2.35% silicon:
(v)
Also since the materials added up must be equal to the full charge weight of 4 tonnes, we have:
(vi)
Finally, since the amounts of raw materials cannot be negative:
(vii)
The linear programming problem thus is to find x1, x2, x3 which:
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LECTURE 5
LINEAR PROGRAMMING, GRAPHICAL METHOD AND SIMPLEX METHOD II

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LINEAR PROGRAMMING, GRAPHICAL METHOD AND SIMPLEX METHOD II
GRAPHICAL METHOD
 Linear programming problems involving only two variables can be effectively solved by a graphical technique.
In actual practice, we rarely come across such problems.
Even then, the graphical method provides a pictorial representation of the solution and one gets ample insight into the basic
concepts used in solving large L.P.P.
Working Procedure
To solve a linear programming problem graphically, follow the following steps:
1. Formulate the given problem as a linear programming problem.
2. Plot the given constraints as equalities on x1, x2 - coordinate plane and determine the convex region formed by them.
3. Determine the vertices of the convex region and find the value of the objective function at each vertex.
The vertex which gives the optimal (maximum or minimum) value of the objective function gives the desired optimal solution
to the problem.
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 A region or a set of points is said to be convex if the line joining any two of its points lies completely in the region (or the set).
Figures 1 and 2 below represent convex regions, while Figures 3 and 4 do not form convex sets.
Otherwise:
 Draw the dotted line through the origin representing the objective function with Z = 0.
As Z is increased from 0, this line moves to the right remaining parallel to itself.
We go on sliding this line (parallel to itself) till it is farthest away from the origin and passes through only one vertex of the
convex region.
This is the vertex where maximum value of Z is attained.
 When it is required to minimize Z, value of Z is increased till the dotted line passes through the nearest vertex of the convex
region.
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Example 4
Solve the L.P.P. of Example 1 graphically.
The problem is:
Solution
We consider x1, x2 - coordinate system as shown in Figure 5.
The non-negativity restrictions (iv) imply that the values of x1, x2 lie in the first quadrant only.
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We plot the lines:
Then any point on or below satisfies (ii) and any point on or below satisfies (iii).
This shows that the desired point (x1, x2) must be somewhere in the shaded convex region OABC.
This region is called the solution space or region of feasible solutions for the given problem.
Its vertices are O(0,0), A(20,0), B(2.5, 35) and C(0, 36).
The values of the objective function (i) at these points are:
The maximum value of Z thus is 147.5 and it occurs at B.
Hence the optimal solution to the problem is:
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Otherwise.
Our aim is to find the point in the solution space which maximizes the profit function Z.
To do this, we observe that on making Z = 0, (i) becomes which is represented by the dotted line LM through O.
As the value of Z is increased, the line LM starts moving parallel to itself towards the right.
Larger the value of Z, more will be the company’s profit.
In this way, we go on sliding LM till it is furthest away from the origin and passes through one of the corners of the convex
region.
This is the point where the maximum value of Z is attained.
It is also possible that such a line can be one of the edges of the solution space.
In that case, every point on that edge gives the same maximum value of Z.
Here Zmax is attained at B(2.5, 35).
Hence the optimal solution is:
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Example 5
Find the maximum value of:
Solution
Any point (x, y) satisfying the conditions x ≥ 0, y ≥ 0 lies in the first quadrant only.
Also since , and , the desired point (x, y) lies within the convex region
ABCDE (shown shaded in Figure 6).
Its vertices are A(3, 3), B(20, 3), C(20, 10), D(18, 12) and E(12, 12).
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The values of Z at these five vertices are , , , and .
Since the maximum value of Z is 72, which occurs at the vertex of D, the solution to the L.P.P. is:
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SOME EXCEPTIONAL CASES
 The constraints generally give region of feasible solution which can be bounded or unbounded.
In problems involving two variables and having a finite solution, we observed that the optimal solution existed at a vertex of
the feasible region.
It is actually true for all L.P. problems for which solutions exist.
Thus it can be stated that if there exists an optimal solution of an L.P.P., it will be at one of the vertices of the solution space.
 In each of the above examples, the optimal solution was unique.

It is however not always so.
In reality, L.P.P. can have:

(i) a unique optimal solution, or
(ii) an infinite number of optimal solutions, or
(iii) an unbounded solution, or
(iv) no solution.
 We now solve below an example to illustrate an exceptional case of unbounded solution mentioned above.
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Example 6
Using graphical method, solve the following L.P.P.:
Solution
We consider x1, x2 - coordinate system.
Any point (x1, x2) satisfying the restrictions (iv) lies in the first quadrant only.
The solution space satisfying the constraints (ii) and (iii) is the convex region shown shaded in Figure 7.
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Here the solution space is unbounded.
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The vertices of the feasible region (in the finite plane) are A(3, 1) and B(0, 4).
Values of the objective function (i) at these vertices are Z(A) = 9 and Z(B) = 12.
There are however points in this convex region for which Z will have much higher values.
For instance, the point (5, 5) lies in the shaded region and the value of Z thereat is 12.5.
The maximum value in reality occurs at infinity.
Thus the problem has an unbounded solution.
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LECTURE 6
LINEAR PROGRAMMING, GRAPHICAL METHOD AND SIMPLEX METHOD III

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LINEAR PROGRAMMING, GRAPHICAL METHOD AND SIMPLEX METHOD III
GENERAL LINEAR PROGRAMMING PROBLEM

 An L.P. problem involving more than two variables can be expressed as follows:
Find the values of the variables x1, x2, ....., xn which maximize (or minimize) the objective function:
subject to the constraints:
and meet the non-negativity restrictions:
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Definitions
1. A set of values x1, x2, ....., xn which satisfies the constraints of the L.P.P. is called its solution.
2. Any solution to a L.P.P. which satisfies the non-negativity restrictions of the problem is called its feasible solution.
3. Any feasible solution which maximizes (or minimizes) the objective function of the L.P.P. is called its optimal solution.
Some of the constraints in (ii) can be equalities, some others can be inequalities of (≤) type and remaining ones inequalities of
(≥) type.
The inequality constraints are changed to equalities by adding (or subtracting) non-negative variables to (from) the left hand
side of such constraints.
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4. If the constraints of a general L.P.P. be:
then the non-negative variables si which satisfy:
are called slack variables.
5. If the constraints of a general L.P.P. be:
then the non-negative variables si which satisfy:
are called surplus variables.
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CANONICAL AND STANDARD FORMS OF LINEAR PROGRAMMING PROBLEM
 After the formulation of L.P.P., the next step is to obtain its solution.
However, before any method is used to find its solution, the problem must be presented in a suitable form.
As such, we explain its following two forms:
1. Canonical Form
The general L.P.P. can always be expressed in the following form:
by making some elementary transformations.
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This form of the L.P.P. is called its canonical form and has the following characteristics:
(i) Objective function is of maximization type,
(ii) All constraints are of (≤) type,
(iii) All variables xi are non-negative.
The canonical form is a format for a L.P.P. which finds its use in the Duality theory.
2. Standard Form
The general L.P.P. can also be put in the following form:
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This form of the L.P.P. is called its standard form and has the following characteristics:
(i) Objective function is of maximization type,
(ii) All constraints are expressed as equalities,
(iii) Right hand side of each constraint is non-negative,
(iv) All variables xi are non-negative.
Any L.P.P. can be expressed in the standard form.
Since
is equivalent to:
the objective function can always be expressed in the maximization form.
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The inequality constraints can always be converted to equalities by adding (or subtracting) the slack (or surplus) variables to
the left hand side of such constraints.
So far, the decision variables x1, x2, ....., xn have been assumed to be all non-negative.
In actual practice, these variables could also be zero or negative.
If a variable is negative, it can always be expressed as the difference of two non-negative variables, for example, a variable xi
can be written as:
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Example 7
Convert the following L.P.P. to the standard form:
Solution
As x3 is unrestricted, we let:
where
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The given constraints can now be expressed as:
Introducing the slack/surplus variables, the problem in standard form becomes:
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SIMPLEX METHOD
1. While solving an L.P.P. graphically, the region of feasible solutions was found to be convex, bounded by the vertices and
edges joining them.
The optimal solution occurred at some vertex.
If the optimal solution is not unique, the optimal points are on an edge.
These observations also hold true for the general L.P.P.
Essentially the problem is that of finding the particular vertex of the convex region which corresponds to the optimal solution.
The most commonly used method for locating the optimal vertex is the simplex method.
This method consists in moving step by step from one vertex to the adjacent one.
Of all the adjacent vertices, the one giving better value of the objective function over that of the preceding vertex, is chosen.
This method of jumping from one vertex to the other is then repeated.
Since the number of vertices is finite, the simplex method leads to an optimal vertex in a finite number of steps.
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2. In simplex method, an infinite number of solutions is reduced to a finite number of promising solutions by using the following
facts:
(i). When there are m constraints and m + n (decision and slack) variables (m being ≤ n), the starting solution is found by
setting n variables equal to zero and then solving the remaining m equations, provided the solution exists and is unique.
The n zero variables are known as non-basic variables while the remaining m variables are called basic variables and
they form a basic solution.
This reduces the number of alternatives (basic solutions) for obtaining the optimal solution to m+nCn.
(ii). In an L.P.P., the variables must always be non-negative.
Some of the basic solutions can contain negative variables.
Such solutions are called basic infeasible solutions and should not be considered.
To achieve this, we start with a basic solution which is non-negative.
The next basic solution must always be non-negative.
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This is ensured by the feasibility condition.
Such a solution is known as basic feasible solution.
If all the variables in the basic feasible solution are non-zero, then it is called non-degenerate solution and if some of
the variables are zero, it is called degenerate solution.
(iii). A new basic feasible solution can be obtained from the previous one by equating one of the basic variables to zero and
replacing it by a new non-basic variable.
The eliminated variable is called the leaving or outgoing variable while the new variable is known as the entering or
incoming variable.
The incoming variable must improve the value of the objective function which is ensured by the optimality condition.
This process is repeated till no further improvement is possible.
The resulting solution is called the optimal basic feasible solution or simply optimal solution.
13
3. The simplex method is therefore based on the following two conditions:
I. Feasibility condition.
It ensures that if the starting solution is basic feasible, the subsequent solutions will also be basic feasible.
II. Optimality condition.

It ensures that only improved solutions will be obtained.
4. We shall now elaborate the above terms in relation to the general linear programming problem in standard form, which means:
(i). Solution. x1, x2, ......, xn is a solution of the general L.P.P. if it satisfies the constrains (2).
(ii). Feasible solution. x1, x2, ......, xn is a feasible solution of the general L.P.P. if it satisfies both the constraints (2) and the
non-negativity restrictions (3).
14
The set S of all feasible solutions is called the feasible region.
A linear programme is said to be infeasible when the set S is empty.
(iii). Basic solution is the solution of the m basic variables when each of the n non-basic variables is equated to zero.
(iv). Basic feasible solution is that basic solution which also satisfies the non-negativity restrictions (3).
(v). Optimal solution is that basic feasible solution which also optimizes the objective function (1) while satisfying the
conditions (2) and (3).
(vi). Non-degenerate basic feasible solution is that basic feasible solution which contains exactly m non-zero basic variables.
If any of the basic variables becomes zero, it is called a degenerate basic feasible solution.
15
Example 8
Find all the basic solutions of the following system of equations identifying in each case the basic and non-basic variables:
Investigate whether the basic solutions are degenerate basic solutions or not.
Hence find the basic feasible solutions to the system.
Solution
Since there are m + n = 3 variables and there are m = 2 constraints in this problem, a basic solution can be obtained by setting any
one variable equal to zero and then solving the resulting equations.
Also the total number of basic solutions = m+nCn = 3C2 = 3.
The characteristics of the various basic solutions are as given below.
16
The basic feasible solutions are:
which are also non-degenerate basic solutions.
17
Example 9
Find an optimal solution to the following L.P.P. by computing all basic solutions and then finding one that maximizes the
objective function:
Solution
Since there are four variables and two constraints, a basic solution can be obtained by setting any two variables equal to zero and
then solving the resulting equations.
Also the total number of basic solutions = m+nCn = 4C2 = 6.
The characteristics of the various basic solutions are as given below.
18
19
The optimal basic feasible solution therefore is:
and the maximum value of Z = 28.9.
20
LECTURE 7
LINEAR PROGRAMMING, GRAPHICAL METHOD AND SIMPLEX METHOD IV

1
LINEAR PROGRAMMING, GRAPHICAL METHOD AND SIMPLEX METHOD IV
WORKING PROCEDURE OF THE SIMPLEX METHOD

Assuming the existence of an initial basic feasible solution, an optimal solution to any L.P.P. by simplex method is found as
follows.
Step 1.
(i) Check whether the objective function is to be maximized or minimized.
If is to be minimized, then convert it into a problem of maximization, by writing:
(ii) Check whether all b’s are positive.
If any of the bi’s is negative, multiply both sides of that constraint by − 1 so as to make its right hand side positive.
2
Step 2.
Express the problem in the standard form.
Convert all inequalities of constraints into equations by introducing slack/surplus variables in the constraints giving equations of
the form:
Step 3.
Find an initial basic feasible solution.
If there are m equations involving n unknowns, then assign 0 values to any (n – m) of the variables for finding a solution.
Starting with a basic solution for which xj: j = 1, 2, ......, (n – m) are each 0, find all si.
If all si are ≥ 0, the basic solution is feasible and non-degenerate.
If one or more of the si values are 0, then the solution is degenerate.
3
The above information is conveniently expressed in the following simplex table:
The variables s1, s2, s3 etc are called basic variables and variables x1, x2, x3 etc are called non-basic variables.
Basis refers to the basic variables s1, s2, s3 ......
cj row denotes the coefficients of variables in the objective function, while cB -column denotes the coefficients of the basic
variables only in the objective function.
b-column denotes the values of the basic variables while remaining variables will always be 0.
The coefficients of x’s (decision variables) in the constraint equations constitute the body matrix while coefficients of slack
variables constitute the unit matrix.
4
Step 4.
Apply optimality test.
Compute:
Cj-row is called net evaluation row and indicates the per unit increase in the objective function if the variables heading the
column is brought into the solution.
If all Cj are negative, then the initial basic feasible solution is optimal.
If even one Cj is positive, then the current feasible solution is not optimal (which means it can be improved) and proceed to the
next step.
5
Step 5.
(i) Identify the incoming and outgoing variables.
If there are more than one positive Cj, then the incoming variable is the one that heads the column containing maximum Cj.
The column containing it is known as the key column which is shown marked with an arrow at the bottom.
If more than one variable has the same maximum Cj, any of these variables can be selected arbitrarily as the incoming
variable.
Now divide the elements under b-column by the corresponding elements of key column and choose the row containing the
minimum positive ratio θ.
Then replace the corresponding basic variable (by making its value 0).
It is termed as the outgoing variable.
The corresponding row is called the key row which is shown marked with an arrow on its right end.
The element at the intersection of the key row and key column is called the key element which is shown bracketed.
6
If all these ratios are ≤ 0, the incoming variable can be made as large as we please without violating the feasibility condition.
Hence the problem has an unbounded solution and no further iteration is required.
(ii) Iterate towards an optimal solution.
Drop the outgoing variable and introduce the incoming variable along-with its associated value under cB column.
Convert the key element to unity by dividing the key row by the key element.
Then make all other elements of the key column zero by subtracting proper multiples of key row from the other rows.
This is nothing but the sweep-out process used to solve the linear equations.
The operations performed are called elementary row operations.
Step 6.
Go to Step 4 and repeat the computational procedure until either an optimal (or an unbounded) solution is obtained.
7
Example 10
Using simplex method:
Solution
The solution consists of the following steps.
Step 1.
Check whether the objective function is to be maximized and all b’s are positive.
The problem being of maximization type and all b’s being ≥ 0, this step is not necessary.
Step 2.
8
By introducing the slack variables s1, s2, s3, the problem in standard form becomes:
Step 3.
There are three equations involving five unknowns and for obtaining a solution, we assign 0 values to any two of the variables.
We start with a basic solution for which we set x1 = 0 and x2 = 0.
This basic solution corresponds to the origin in the graphical method.
Substituting x1 = x2 = 0 in (i), (ii) and (iii), we get the basic solution:
Since all s1, s2, s3 are positive, the basic solution is also feasible and non-degenerate.
9
The basic feasible solution therefore is:
The initial basic feasible solution therefore is given by the following table:
10
Step 4.
As Cj is positive under some columns, the initial basic feasible solution is not optimal (which means it can be improved) and we
proceed to the next step.
Step 5.
The above table shows that x1 is the incoming variable as its incremental contribution Cj (= 5) is the maximum and column in
which it appears is the key column (shown marked by an arrow at the bottom).
Dividing the elements under b-column by the corresponding elements of key-column, we find minimum positive ratio θ is 2 in
two rows.
We therefore arbitrarily choose the row containing s1 as the key row (shown marked by an arrow on its right end).
The element at the intersection of the key row and the key column, which means (1), is the key element.
11
s1 is therefore the outgoing basic variable which will now become non-basic.
Having decided that x1 is to enter the solution, we have tried to find as to what maximum value x1 could have without violating
the constraints.
So removing s1, the new basis will contain x1, s2 and s3 as the basic variables.
(ii) Iterate towards the optimal solution.
To transform the initial set of equations with a basic feasible solution into an equivalent set of equations with a different basic
feasible solution, we make the key element unity.
Here the key element being unity, we retain the key row as it is.
Then to make all other elements in key column 0, we subtract proper multiples of key row from the other rows.
Here we subtract 5 times the elements of key row from the second row and 3 times the elements of the key row from the third
row.
12
These become the second and third rows of the next table.
We also change the corresponding value under cB column from 0 to 5, while replacing s1 by x1 under the basis.
Thus the second basic feasible solution is given by the following table.
As Cj is either 0 or negative under all columns, the above table gives the optimal basic feasible solution.
This optimal solution is:
13
Example 11
A firm produces three products which are processed on three machines.
The relevant data is given below:
The profit per unit for products A, B and C is $4, $3 and $6 respectively.
Determine the daily number of units to be produced for each product.
Assume that all the units produced are consumed in the market.
14
Solution
Let the firm decide to produce x1, x2, x3 units of products A, B, C respectively.
Then the L.P. model for this problem is:
Step 1.
Check whether the objective function is to be maximized and all b’s are positive.
The problem being of maximization type and all b’s being ≥ 0, this step is not necessary.
15
Step 2.
By introducing the slack variables s1, s2, s3, the problem in standard form becomes:
Step 3.
The basic (non-degenerate) feasible solution is:
16
The initial basic feasible solution is therefore given by the following table:
Step 4.
As Cj is positive under some columns, the initial basic feasible solution is not optimal and we proceed to the next step.
Step 5.
The above table shows that x3 is the incoming variable while s2 is the outgoing variable and (3) is the key element.
17
(ii) Iterate towards the optimal solution.
Drop s2 and introduce x3 with its associated value 6 under cB column.
Convert the key element to unity and make all other elements of key column 0.
Then the second feasible solution is given by the table below.
Step 6.
As Cj is positive under the second column, the solution is not optimal and we proceed further.
18
Now x2 is the incoming variable and s1 is the outgoing variable and (3) is the key element for the next iteration.
Drop s1 and introduce x2 with its associated value 3 under cB column.
Convert the key element to unity and make all other elements of the key column 0.
Then the third feasible solution is given by the table below:
Now since each Cj ≤ 0, therefore it gives the optimal solution:
19
Remember:
(i) The incoming variable is the non-basic variable corresponding to the largest positive value of Cj.
(ii) The outgoing variable is the basic variable corresponding to the least positive ratio θ, obtained by dividing the b-column
elements by the corresponding key column elements.
20
LECTURE 8
LINEAR PROGRAMMING, GRAPHICAL METHOD AND SIMPLEX METHOD V

1
LINEAR PROGRAMMING, GRAPHICAL METHOD AND SIMPLEX METHOD V
ARTIFICIAL VARIABLE TECHNIQUES

 So far we have seen that the introduction of slack/surplus variables provided the initial basic feasible solution.
There are however many problems wherein at least one of the constraints is of ( ≥) or ( = ) type and slack variables fail to give
such a solution.
There are two similar methods for solving such problems which are explained below.
1. M-Method or Method of Penalties

This method is due to A. Charnes and consists of the following steps.
Step 1.
Express the problem in standard form.
Step 2.
Add non-negative variables to the left hand side of all those constraints which are of (≥) or (=) type.
2
Such new variables are called artificial variables and the purpose of introducing these is only to obtain an initial basic feasible
solution.
Their addition however causes violation of the corresponding constraints.
As such, we would like to get rid of these variables and would not allow them to appear in the final solution.
For this purpose, we assign a very large penalty (‒M) to these artificial variables in the objective function.
Step 3.
Solve the modified L.P.P. by simplex method.
At any iteration of simplex method, one of the following three cases can arise:
(i) There remains no artificial variable in the basis and the optimality condition is satisfied.
Then the solution is an optimal basic feasible solution to the problem.
(ii) There is at least one artificial variable in the basis at zero level (with 0 value in b-column) and the optimality condition is
satisfied.
Then the solution is a degenerate optimal basic feasible solution.
3
(iii) There is at least one artificial variable in the basis at non-zero level (with positive value in b-column) and the optimality
condition is satisfied.
Then the problem has no feasible solution.
The final solution is not optimal, since the objective function contains an unknown quantity M.
Such a solution satisfies the constraints but does not optimize the objective function and is, therefore, called pseudo
optimal solution.
Step 4.
Continue the simplex method until either an optimal basic feasible solution is obtained or an unbounded solution is indicated.
The artificial variables are only a computational device for getting a starting solution.
Once an artificial variable leaves the basis, it has served its purpose and we forget about it, which means the column for this
variable is omitted from the next simplex table.
4
Example 12
Use Charne's penalty method to:
Solution
Step 1.
Express the problem in standard form.
The second and third inequalities are converted into equations by introducing the surplus and slack variables s1, s2 respectively.
Also the first and second constraints being of ( = ) and ( ≥ ) type, we introduce two artificial variables A1, A2.
5
Converting the minimization problem to the maximization form, the L.P.P. can be rewritten as:
Step 2.
Obtain an initial basic feasible solution.
Surplus variable s1 is not a basic variable since its value is ‒ 6.
As negative quantities are not feasible, s1 must be prevented from appearing in the initial solution.
This is done by letting s1 = 0. By setting the other non-basic variables x1, x2 each = 0, we obtain the initial basic feasible solution
as:
6
Thus the initial simplex table is:
Since Cj is positive under x1 and x2 columns, this is not an optimal solution.
Step 3.
Iterate towards optimal solution.
Introduce x1 and drop A1 from the basis.
7
The new simplex table is:
Since Cj is positive under x2 column, this is not an optimal solution.
Introduce x2 and drop A2 from the basis.
8
Then the revised simplex table is:
Since none of Cj is positive, this is an optimal solution.
Thus, an optimal basic feasible solution to the problem is:
9
The optimal value of the objective function therefore is:
10
LECTURE 9
LINEAR PROGRAMMING, GRAPHICAL METHOD AND SIMPLEX METHOD VI

1
LINEAR PROGRAMMING, GRAPHICAL METHOD AND SIMPLEX METHOD VI
ARTIFICIAL VARIABLE TECHNIQUES

2. Two-Phase Method
This is another method to deal with the artificial variables wherein the L.P.P. is solved in two phases.
Phase I
Step 1.
Express the given problem in the standard form by introducing slack, surplus and artificial variables.
Step 2.
Formulate the artificial objective function:
by assigning ( ‒ 1) cost to each of the artificial variables Ai and zero cost to all other variables.
Step 3.
Maximize Z* subject to the constraints of the original problem using the simplex method.
2
Then three cases arise:
(a) Max Z* < 0 and at least one artificial variable appears in the optimal basis at a positive level.
In this case, the original problem doesn't possess any feasible solution and the procedure comes to an end.
(b) Max Z* = 0 and no artificial variable appears in the optimal basis.
In this case, a basic feasible solution is obtained and we proceed to phase II for finding the optimal basic feasible solution to
the original problem.
(c) Max Z* = 0 and at least one artificial variable appears in the optimal basis at zero level.
Here a feasible solution to the auxiliary L.P.P. is also a feasible solution to the original problem with all artificial variables set
= 0.
To obtain a basic feasible solution, we prolong Phase I for pushing all the artificial variables out of the basis (without
proceeding on to phase II).
3
Phase II.
The basic feasible solution found at the end of Phase I is used as the starting solution for the original problem in this phase, which
means the final simplex table of Phase I is taken as the initial simplex table of Phase II and the artificial objective function is
replaced by the original objective function.
Then we find the optimal solution.
4
Example 13
Use two-phase method to:
Solution
Phase I
Step 1.
Express the given problem in standard form.
Introducing surplus variables s1, s2 and artificial variables A1, A2, the phase I problem in standard form becomes:
5
Step 2.
The initial simplex table therefore is:
As Cj is positive under x1 column, this solution is not optimal.
6
Step 3.
Iterate towards an optimal solution.
Making key element (3) unity and replacing A1 by x1, we have the new simplex table:
Since Cj is positive under x3 and s1 columns, this solution is not optimal.
7
Making key element (4/3) unity and replacing A2 by x3, we obtain the revised simplex table:
Since all Cj ≤ 0, this table gives the optimal solution.
Also Z*max = 0 and no artificial variable appears in the basis.
Thus an optimal basic feasible solution to the auxiliary problem and therefore to the original problem has been attained.
8
Phase II.
Considering the actual costs associated with the original variables, the objective function is:
The optimal initial feasible solution thus obtained will be an optimal basic feasible solution to the original L.P.P.
Using final table of Phase I, the initial simplex table of Phase II is as follows:
Since all Cj ≤ 0, this solution is optimal.
9
An optimal basic feasible solution to the given problem therefore is:
10
LECTURE 10
LINEAR PROGRAMMING, GRAPHICAL METHOD AND SIMPLEX METHOD VII

1
LINEAR PROGRAMMING, GRAPHICAL METHOD AND SIMPLEX METHOD VII
DUALITY CONCEPT
 One of the most interesting concepts in linear programming is the duality theory.
Every linear programming problem has associated with it, another linear programming problem involving the same data and
closely related optimal solutions.
Such two problems are said to be duals of each other.
While one of these is called the primal, the other is called the dual.
2
 The importance of the duality concept is due to two main reasons.
Firstly, if the primal contains a large number of constraints and a small number of variables, the labour of computation can be
considerably reduced by converting it into the dual problem and then solving it.
Secondly, the interpretation of the dual variables from the cost or economic perspective proves extremely useful in making
future decisions in the activities being programmed.
3
Formulation of Dual Problem
We consider the following L.P.P.:
To construct the dual problem, we adopt the following guidelines:
(i). The maximization problem in the primal becomes the minimization problem in the dual and vice versa.
(ii). ( ≤ ) type of constraints in the primal becomes ( ≥ ) type of constraints in the dual and vice versa.
(iii). The coefficients c1, c2, ......, cn in the objective function of the primal becomes b1, b2, ......, bm in the objective function of the
dual.
(iv). The constants b1, b2, ......, bm in the constraints of the primal becomes c1, c2, ......, cn in the constraints of the dual.
4
(v). If the primal has n variables and m constraints, the dual will have m variables and n constraints, which means the transpose
of the body matrix of the primal problem gives the body matrix of the dual.
(vi). The variables in both the primal and dual are non-negative.
The dual problem then will be:
5
Example 14
Write the dual of the following L.P.P.:
Solution
Since the problem is of minimization, all constraints should be of ≥ type.
We multiply the third constraint throughout by ‒ 1 so that:
6
Let y1, y2, y3, y4 and y5 be the dual variables associated with the above five constraints.
The dual problem then is given by:
7
Formulation of Dual Problem When the Primal Has Equality Constraints
We consider the problem:
The equality constraint can be written as:
The above problem can then be restated as:
8
We now form the dual using y1’, y1”, y2 as the dual variables.
The dual problem then is:
The term (y1’ − y1”) appears in both the objective function and all the constraints of the dual.
This will always happen whenever there is an equality constraint in the primal.
Then the new variable y1’ − y1” ( = y1 ) becomes unrestricted in sign being the difference of two non-negative variables and the
above dual variable takes the form:
9
In general, if the primal problem is:
then the dual problem is:
Thus the dual variables corresponding to equality constraints are unrestricted in sign.
Conversely when the primal variables are unrestricted in sign, the corresponding dual constraints are equalities.
10
Example 15
Construct the dual of the L.P.P.:
Solution
Let y1 and y2 be the dual variables associated with the first and second constraints.
The dual problem then is:
11
DUALITY PRINCIPLE
 If the primal and the dual problems have feasible solutions, then both have optimal solutions and the optimal value of the
primal objective function is equal to the optimal value of the dual objective function, which means:
This is the fundamental theorem of duality.
It suggests that an optimal solution to the primal problem can directly be obtained from that of the dual problem and vice
versa.
12
LECTURE 11
LINEAR PROGRAMMING, GRAPHICAL METHOD AND SIMPLEX METHOD VIII

1
LINEAR PROGRAMMING, GRAPHICAL METHOD AND SIMPLEX METHOD VIII
DUAL SIMPLEX METHOD

 In an earlier section, we have seen that a set of basic variables giving a feasible solution can be found by introducing artificial
variables and using M-method or Two-phase method.
Using the primal-dual relationships for a problem, we have another method (known as Dual simplex method) for finding an
initial feasible solution.
Whereas the regular simplex method starts with a basic feasible (however non-optimal) solution and works towards
optimality, the dual simplex method starts with a basic infeasible (however optimal) solution and works towards feasibility.
The dual simplex method is quite similar to the regular simplex method, the only difference lies in the criterion used for
selecting the incoming and outgoing variables.
In the dual simplex method, we first determine the outgoing variable and then the incoming variable while in the case of
regular simplex method, reverse is done.
2
Working Procedure for Dual Simplex Method
Step 1.
(i) Convert the problem to maximization form, if it is not so.
(ii) Convert ( ≥ ) type constraints, if any to ( ≤ ) type by multiplying such constraints by – 1.
(iii) Express the problem in standard form by introducing slack variables.
Step 2.
Find the initial basic solution and express this information in the form of dual simplex table.
Step 3.
Test the nature of Cj = cj − Zj :
(a) If all Cj ≤ 0, and all bi ≥ 0, then optimal basic feasible solution has been attained.
(b) If all Cj ≤ 0, and at least one bi < 0, then go to Step 4.
(c) If any Cj ≥ 0, the method fails.
3
Step 4.
Mark the outgoing variable.
Select the row that contains the most negative bi.
This will be the key row and the corresponding basic variable is the outgoing variable.
Step 5.
Test the nature of key row elements:
(a) If all these elements are ≥ 0, the problem does not have a feasible solution.
(b) If at least one element < 0, find the ratios of the corresponding elements of Cj - row to these elements.
Choose the smallest of these ratios.
The corresponding column is the key column and the associated variable is the incoming variable.
4
Step 6.
Iterate towards optimal feasible solution.
Make the key element unity.
Perform row operations as in the regular simplex method and repeat iterations until either an optimal feasible solution is attained
or there is an indication of non-existence of a feasible solution.
5
Example 16
Using dual simplex method:
Solution
Step 1.
(i) Convert the first and third constraints into ( ≤ ) type.
These constraints become:
6
(ii) Express the problem in standard form.
Introducing slack variables s1, s2, s3, s4 the given problem takes the form:
Step 2.
Find the initial basic solution.
Setting the decision variables x1, x2 each equal to 0, we get the basic solution.
7
The initial solution is therefore given by the table below:
Step 3.
Test nature of Cj.
Since all Cj values are ≤ 0 and b1 = ‒ 1, b3 = ‒ 10, the initial solution is optimal but infeasible.
We therefore proceed further.
8
Step 4.
Mark the outgoing variable.
Since b3 is negative and numerically largest, the third row is the key row and s3 is the outgoing variable.
Step 5.
Calculate ratios of elements in Cj - row to the corresponding negative elements of the key row.
These ratios are ‒ 3/ ‒ 1 = 3, ‒ 2/ ‒ 2 = 1 (neglecting ratios corresponding to positive and zero elements of key row).
Since the smaller ratio is 1, therefore, x2 - column is the key column and (‒ 2) is the key element.
Step 6.
Iterate towards optimal feasible solution.
(i) Drop s3 and introduce x2 along-with its associated value ‒ 2 under cB column.
9
Then the second solution is given by the table below.
Since all Cj values are ≤ 0 and b4 = ‒ 2, this solution is optimal but infeasible.
We therefore proceed further.
(ii) Mark the outgoing variable.
Since b4 is negative, the fourth row is the key row and s4 is the outgoing variable.
10
(iii) Calculate ratios of elements in Cj - row to the corresponding negative elements of the key row.
This ratio is ‒ 2/ ‒ (1/2) = 4 (neglecting other ratios corresponding to positive or zero elements of key row).
The x1 - column is the key column and (‒1/2) is the key element.
(iv) Drop s4 and introduce x1 with its associated value ‒ 3 under the cB column.
The third solution is then given by the table below:
Since all Cj values are ≤ 0 and all b's are ≥ 0, therefore this solution is optimal and feasible.
11
The optimal solution therefore is:
12
LECTURE 12
TRANSPORTATION PROBLEM I

1
TRANSPORTATION PROBLEM I
STANDARD FORM
 A transportation problem involves m sources each of which has available ai [i = 1, 2, ..., m] units of a product,
and n destinations each of which requires bj [j = 1, 2, ..., n] units of this product.
The numbers ai and bj are positive integers.
The cost cij of transporting one unit of product from the ith source to the jth destination is given for each i and j.
The objective is to develop an integral transportation schedule that meets all demands from current inventory at
a minimum total shipping cost.
 It is assumed that total supply and total demand are equal, which means:
(1)
2
Equation (1) is guaranteed by creating either a fictitious destination with a demand equal to the surplus if total
demand is less than total supply, or a fictitious source with a supply equal to the shortage if total demand equals
total supply.
 Let xij represent the unknown number of units to be shipped from source i to destination j.
Then the standard mathematical model of this problem is:
(2)
3
TRANSPORTATION ALGORITHM
 Rather than determining the solution by a direct application of the simplex method to the above mathematical
model, we find it more efficient to work with Table 1 shown below.
All entries are self-explanatory, with the exception of the terms ui and v j, which are explained later.
Table 1: Transportation algorithm table.
4
 The transportation algorithm is the simplex method specialized to the format of Table 1 and as usual, it involves:
1. Finding an initial basic feasible solution,
2. Testing the solution for optimality,
3. Improving the solution when it is not optimal, and
4. Repeating the steps 2 and 3 until the optimal solution is obtained.
INITIAL BASIC FEASIBLE SOLUTION

Northwest Corner Rule
 Beginning with the (1, 1) cell in Table 1 (the northwest corner), allocate to x11 as many units as possible without
violating the constraints.
This will be the smaller of a1 and b1.
Thereafter, continue by moving one cell to the right, if some supply remains, or if not, one cell down.
At each step, allocate as much as possible to the cell or variable under consideration without violating the
constraints: the sum of the ith row allocations cannot exceed ai, the sum of jth column allocations cannot exceed
bj, and no allocation can be negative.
The allocation can be zero.
5
Vogel's Method
 For each row and each column having some supply or some demand remaining, calculate its difference, which is
the non-negative difference between the two smallest shipping costs cij associated with unassigned variables in
that row or column.
Consider the row or column having the largest difference.
In case of a tie, arbitrarily choose one.
In this row or column, locate that unassigned variable or cell having the smallest unit shipping cost and allocate
to it as many units as possible without violating the constraints.
Recalculate the new differences and repeat the above procedure until all demands are satisfied.
6
 Variables that are assigned values by either one of these starting procedures become the basic variables in the
initial solution.
The unassigned variables are non-basic and, therefore, zero.
We adopt the convention of not entering the non-basic variables in Table 1 – they are understood to be zero –
and of indicating basic-variable allocations in boldface type.
 The Northwest Corner Rule is the simpler of the two rules to apply.
However, Vogel's method, which takes into account the unit shipping costs, usually results in a closer-to-
optimal starting solution.
7
TEST FOR OPTIMALITY
 Assign any one of the ui or vj in Table 1 the value zero and calculate the remaining ui and ui so that for each
basic variable ui + vj = cij.
Then, for each non-basic variable, calculate the quantity ui + vj − cij.
If all of these latter quantities are negative, the current solution is optimal, otherwise the current solution is not
optimal.
8
IMPROVING THE SOLUTION
Definition
 A loop is a sequence of cells in Table 1 such that:
(i). each pair of consecutive cells lie in either the same row or the same column,
(ii). no two consecutive cells lie in the same row or column,
(iii). the first and last cells of the sequence lie in the same row or column, and
(iv). no cell appears more than once in the sequence.
Example 1
 The sequences {(1, 2), (1, 4), (2, 4), (2, 6), (4, 6), (4, 2)} and {(1, 3), (1, 6), (3, 6), (3, 1), (2, 1), (2, 2), (4, 2), (4,
4), (2, 4), (2, 3)} illustrated in Figures 1 and 2 respectively are loops.
It is to be noted that a row or column can have more than two cells in the loop (as the second row of Figure 2),
but no more than two can be consecutive.
9
Figure 1: Example of loop.
Figure 2: Example of loop.
10
 We consider the non-basic variable corresponding to the most positive of the quantities ui + v j − cij calculated in
the test for optimality.
It is made the incoming variable.
We construct a loop consisting exclusively of this incoming variable or cell and current basic variables or cells.
We then allocate to the incoming cell as many units as possible such that after appropriate adjustments have
been made to the other cells in the loop, the supply and demand constraints are not violated, all allocations
remain non-negative, and one of the old basic variables has been reduced to zero whereupon it ceases to be
basic.
11
 If the process of improving the current basic solution results in two or more current basic variables being
reduced to zero simultaneously, only one is allowed to become non-basic (solver's choice, although the variable
with the largest unit shipping cost is preferred).
The other variables with lower unit shipping costs remain basic, but with zero allocation.
12
LECTURE 13
TRANSPORTATION PROBLEM II

1
TRANSPORTATION PROBLEM II
Example
 SunRay Transport Company ships truckloads of grain from three silos to four mills.
The supply in truckloads and the demand also in truckloads together with the unit transportation costs per
truckload on the different routes are summarized in the transportation model in Table 2.
The unit transportation costs, cij, shown in the northeast corner of each box are in hundreds of dollars.
The model seeks the minimum-cost shipping schedule xij between silo i and mill j (i = 1, 2, 3 and j = 1, 2, 3, 4).
Table 2: Example transportation model.
2
Solution
Northwest Corner Rule Starting Solution
 The application of the Northwest Corner Rule to the Example transportation model gives the starting basic
solution in Table 3.
The arrows show the order in which the allocated amounts are generated.
The starting basic solution is:
The associated cost of the schedule is:
3
Table 3: Northwest corner rule starting solution.
4
Vogel Approximation Method Starting Solution
 VAM is next applied to Example transportation model to determine initial basic solution.
Table 4 computes the first set of penalties.
Table 4: Row and column penalties in VAM.
5
Because row 3 has the largest penalty (= 10) and cell (3, 1) has the smallest unit cost in that row, the amount 5 is
assigned to x31.
Column 1 is now satisfied and must be crossed out.
Next set of penalties are computed as in Table 5.
Table 5: Next set of row and column penalties in VAM.
6
 Table 5 shows that row 1 has the highest penalty (= 9).
Hence, we assign the maximum amount possible to cell (1,2), which yields x12 = 15 and simultaneously satisfies
both row 1 and column 2.
We arbitrarily cross out column 2 and adjust the supply in row 1 to zero.
 Continuing in the same manner, row 2 will produce the highest penalty (= 11), and we assign x23 = 15, which
crosses out column 3 and leaves 10 units in row 2.
Only column 4 is left, and it has a positive supply of 15 units.
Applying the least-cost method to that column, we successively assign x14 = 0, x34 = 5, and x24 = 10 as shown in
Table 6.
7
Table 6: Completed assignments in VAM.
The associated objective value for this solution is:
8
Solving Transportation Model after Starting with the Northwest Corner Solution
 Table 7 gives the northwest-corner starting solution as determined in Table 3 above.
Table 7: Northwest corner rule starting solution.
 The determination of the entering variable from among the current non-basic variables (those that are not part of
the starting basic solution) is done by computing the non-basic coefficients, using the method of multipliers.
9
 In the method of multipliers, we associate the multipliers ui and vj with row i and column j of the transportation
table.
For each current basic variable xij, these multipliers are shown to satisfy the following equations:
ui + v j = cij, for each basic xij.
 As Table 7 shows, the starting solution has 6 basic variables, which leads to 6 equations in 7 unknowns.
To solve these equations, the method of multipliers calls for arbitrarily setting any ui = 0, and then solving for
the remaining variables as shown below.
10
To summarize, we have:
 Next, we use ui and vj to evaluate the non-basic variables by computing:
11
The results of these evaluations are shown in the following table:
 The entering variable is the one having the most positive coefficient.
Thus, x31 is the entering variable.
12
 The preceding computations are usually done directly on the transportation tableau as shown in Table 8,
meaning that it is not necessary really to write the (u, v)-equations explicitly.
Table 8: Iteration 1 calculations.
Instead, we start by setting u1 = 0.
Then we can compute the v-values of all the columns that have basic variables in row 1-namely, v1 and v2.
13
Next, we compute u2 based on the (u, v)-equation of basic x22.
Now, given u2, we can compute v3 and v4.
Finally, we determine u3 using the basic equation of x33.
Once all the u's and v's have been determined, we can evaluate the non-basic variables by computing ui + vj − cij
for each non-basic x ij.
These evaluations are shown in Table 8 in the boxed southeast corner of each cell.
Having identified x31 as the entering variable, we need to determine the leaving variable.
If x31 enters the solution to become basic, one of the current basic variables must leave as non-basic at zero
level.
14
 The selection of x31 as the entering variable means that we want to ship through this route because it reduces the
total shipping cost.
What is the most that we can ship through the new route?
We observe in Table 8 that if route (3, 1) ships θ units (which means x31 = θ), then the maximum value of θ is
determined based on two conditions:
1. Supply limits and demand requirements remain satisfied.
2. Shipments through all routes remain nonnegative.
 These two conditions determine the maximum value of θ and the leaving variable in the following manner.
First, construct a closed loop that starts and ends at the entering variable cell (3, 1).
The loop consists of connected horizontal and vertical segments only (no diagonals are allowed).
Except for the entering variable cell, each corner of the closed loop must coincide with a basic variable.
Table 9 shows the loop for x31. Exactly one loop exists for a given entering variable.
15
 Next, we assign the amount θ to the entering variable cell (3, 1).
For the supply and demand limits to remain satisfied, we must alternate between subtracting and adding the
amount eat the successive corners of the loop as shown in Table 9 (it is immaterial whether the loop is traced in
a clockwise or counterclockwise direction).
Table 9: Determination of closed loop for x31.
16
 For θ ≥ 0, the new values of the variables then remain nonnegative if:
 The corresponding maximum value of θ is 5, which occurs when both x11 and x22 reach zero level.
Because only one current basic variable must leave the basic solution, we can choose either x11 or x22 as the
leaving variable.
We arbitrarily choose x11 to leave the solution.
 The selection of x31 (= 5) as the entering variable and x11 as the leaving variable requires adjusting the values of
the basic variables at the corners of the closed loop as Table 10 shows.
The total cost associated with the new schedule is $45 less than in the previous schedule. Thus, the new cost is
$520 − $45 = $475.
17
 Given the new basic solution, we repeat the computation of the multipliers u and v, as Table 10 shows.
The entering variable is x14.
The closed loop shows that x14 = 10 and that the leaving variable is x24.
18
 The new solution, shown in Table 11, costs $40 less than the preceding one, thus yielding the new cost $475 −
$40 = $435.
The new u i + vj − cij are now negative for all non-basic xij.
Thus, the solution in Table 11 is optimal.
19
 The following table summarizes the optimum solution.
 The optimal cost of transportation is therefore $435.
It is $85 less than the starting solution obtained using Northwest Corner Rule.
20
LECTURE 14
ASSIGNMENT PROBLEM

1
ASSIGNMENT MODEL
INTRODUCTION
 "The best person for the job" is an apt description of the assignment model.
The situation can be illustrated by the assignment of workers with varying degrees of skill to jobs.
A job that happens to match a worker's skill costs less than one in which the operator is not as skillful.
The objective of the model is to determine the minimum-cost assignment of workers to jobs.
 The general assignment model with n workers and n jobs is represented in Table 1.
The element cij represents the cost of assigning worker i to job j (i, j = 1, 2, ... , n).
There is no loss of generality in assuming that the number of workers always equals the number of jobs, because
we can always add fictitious workers or fictitious jobs to effect this assumption.
2
Table 1: General assignment model with n workers and n jobs.
 The assignment model is actually a special case of the transportation model in which the workers represent the
sources, and the jobs represent the destinations.
The supply amount at each source and demand amount at each destination exactly equal 1.
The cost of "transporting" worker i to job j is cij.
In effect, the assignment model can be solved directly as a regular transportation model.
However, the fact that all the supply and demand amounts equal 1 has led to the development of a simple
solution algorithm called the Hungarian method as described below.
3
HUNGARIAN METHOD
 Examples will be used to present the mechanics of the new algorithm.
Example 1
 Three children, John, Karen, and Terri, want to earn some money to take care of personal expenses during a
school trip to the local zoo.
Their father has chosen three types of work for his children: mowing the lawn, painting the garage door, and
washing the family cars.
To avoid anticipated sibling competition, he asks them to submit (secret) bids for what they think is reasonable
pay for each of the three types of work.
The understanding is that all three children will abide by their father's decision as to who gets which work.
Table 2 summarizes the bids received.
Based on this information, how should their father assign the work?
4
Table 2: Summary of children's bids.
Solution
 The assignment problem will be solved by the Hungarian method.
Step 1.
 For the original cost matrix, identify each row's minimum, and subtract it from all the entries of the row.
Step 2.
 For the matrix resulting from step 1, identify each column's minimum, and subtract it from all the entries of the
column.
5
Step 3.
 Identify the optimal solution as the feasible assignment associated with the zero elements of the matrix obtained
in step 2.
 Let pi and qj be the minimum costs associated with row i and column j as defined in steps 1 and 2, respectively.
The row minimums of step 1 are computed from the original cost matrix as shown in Table 3.
Table 3: Step 1 of Hungarian method.
Next, subtract the row minimum from each respective row to obtain the reduced matrix in Table 4.
6
The application of step 2 yields the column minimums in Table 4.
Subtracting these values from the respective columns, we get the reduced matrix in Table 5.
7
 The cells with underscored zero entries provide the optimum solution.
This means that John gets to paint the garage door, Karen gets to mow the lawn, and Terri gets to wash the
family cars.
The total cost to Father is 9 + 10 + 8 = $27.
This amount also will always equal (p1 + p2 + p3) + (q1+ q2 + q3) = (9 + 9 + 8) + (0 + 1 + 0) = $27.
 The given steps of the Hungarian method work well in the preceding example because the zero entries in the
final matrix happen to produce a feasible assignment (in the sense that each child is assigned a distinct type of
work).
In some cases, the zeros created by steps 1 and 2 may not yield a feasible solution directly, and further steps are
needed to find the optimal (feasible) assignment.
The following example demonstrates this situation.
8
Example 2
 We suppose that the situation discussed in Example 1 is extended to four children and four types of work.
Table 6: Example 2 assignment model.
 Table 6 summarizes the cost elements of the problem.
The application of steps 1 and 2 to the matrix in Table 6 (using p1 = 1, p2 = 7, p3 = 4, p4 = 5, q1 = 0, q2 = 0, q3 =

3, and q4 = 0) yields the reduced matrix in Table 7.
9
Table 7: Reduced assignment matrix.
 The locations of the zero entries do not allow assigning different types of work to all the children.
For example, if we assign work 1 to child 1, then column 1 will be eliminated, and child 3 will not have a zero
entry in the remaining three columns.
This obstacle can be accounted for by adding the following step to the procedure outlined in Example 1.
10
Step 2a.
 If no feasible assignment (with all zero entries) can be secured from steps 1 and 2:
(i). Draw the minimum number of horizontal and vertical lines in the last reduced matrix that will cover all the
zero entries.
(ii). Select the smallest uncovered entry, subtract it from every uncovered entry, then add it to every entry at the
intersection of two lines.
(iii).If no feasible assignment can be found among the resulting zero entries, repeat step 2a.
Otherwise, go to step 3 to determine the optimal assignment.
 The application of step 2a to the last matrix produces the shaded cells in Table 8.
11
Table 8: Application of step 2a to the above reduced assignment matrix.
 The smallest unshaded entry (shown in italics) equals 1.
This entry is added to the bold intersection cells and subtracted from the remaining shaded cells to produce the
matrix in Table 9.
12
Table 9: Optimal assignment matrix.
 The optimum solution (shown by the underscored zeros) calls for assigning work 1 to child 1, work 2 to child 3,
work 3 to child 2, and work 4 to child 4.
The associated optimal cost is 1 + 10 + 5 + 5 = $21.
The same cost is also determined by summing the pi's, the qj's, and the entry that was subtracted after the shaded
cells were determined: (1 + 7 + 4 + 5) + (0 + 0 + 3 + 0) + (1) = $21.
13
SIMPLEX EXPLANATION OF THE HUNGARIAN METHOD
 The assignment problem in which n workers are assigned to n jobs can be represented as an LP model in the
following manner.
Let cij be the cost of assigning worker i to job j, and define:
Then the LP model is given as:
subject to:
14
 The optimal solution of the preceding LP model remains unchanged if a constant is added to or subtracted from
any row or column of the cost matrix (cij).
To prove it, let pi and qj be constants subtracted from row i and column j.
Thus, the cost element cij is changed to:
Now:
15
Because the new objective function differs from the original one by a constant, the optimum values of xij must
be the same in both cases.
 The development thus shows that steps 1 and 2 of the Hungarian method, which call for subtracting pi from row
i and then subtracting qj from column j, produce an equivalent assignment model.
In this regard, if a feasible solution can be found among the zero entries of the cost matrix created by steps 1 and
2, then it must be optimum because the cost in the modified matrix cannot be less than zero.
 If the created zero entries cannot yield a feasible solution (as Example 2 demonstrates), then Step 2a described
above must be applied.
The validity of this procedure is again rooted in the simplex method of linear programming.
The details of the proof will not be described here because they are complicated.
16
LECTURE 15
INTEGER PROGRAMMING: BRANCH AND BOUND ALGORITHM

1
INTEGER PROGRAMMING: BRANCH AND BOUND ALGORITHM
FIRST APPROXIMATION
 An integer program is a linear program with the added requirement that all variables be integers.
Therefore, a first approximation to the solution of any integer program can be obtained by ignoring the integer
requirement and solving the resulting linear program by one of the techniques already described.
If the optimal solution to the linear program happens to be integral, then this solution is also the optimal solution
to the original integer program.
Otherwise one can round the components of the first approximation to the nearest feasible integers and obtain a
second approximation.
This procedure is carried out especially when the first approximation involves large numbers, but it can be
inaccurate when numbers are small.
2
BRANCHING
 If the first approximation contains a variable that is not integral, say xj*, then i1 < x j* < i2, where i1 and i2 are
consecutive non-negative integers.
Two new integer programs are then created by augmenting the original integer program with either the
constraint xj ≤ i1 or the constraint x j ≥ i2.
This process, called branching, has the effect of shrinking the feasible region in a way that eliminates from
further consideration the current non-integral solution for xj but still preserves all possible integral solutions to
the original problem.
3
Example 1
 As the first approximation to the integer program:
(1)
we consider the associated linear program obtained by deleting the integer requirement.
By graphing, the solution is readily found to be x1* = 5.5, x2* = 0 with z* = 55.
Since 5 < x1* < 6, branching creates the two new integer programs:
(2)
4
and
(3)
 For the two integer programs created by branching process, first approximations are obtained as before by
ignoring the integer requirements and solving the resulting linear programs.
If either first approximation is still non-integral, then the integer program which gave rise to that first
approximation becomes a candidate for further branching.
5
Example 2
 Using graphical methods, we find that program 2 above has the first approximation x1* = 5, x2* = 0.2 with z* =
50.2, while program 3 has no feasible solution.
Thus program 2 is a candidate for further branching.
Since 0 < x2* < 1, we augment program 2 with either x2 ≤ 0 or x2 ≥ 1, and obtain the two new programs as
below.
(4)
6
and
(5)
 With the integer requirements ignored, the solution to program 4 is x1* = 5, x2* = 0 with z* = 50, while the
solution to program 5 is x1* = 3, x2* = 1 with z* = 31.
Since both these first approximations are integral, no further branching is required.
7
BOUNDING
 We assume that the objective function is to be maximized.
Branching continues until an integral first approximation (which is thus an integral solution) is obtained.
The value of the objective for this first integral solution becomes a lower bound for the problem, and all
programs whose first approximations, integral or not, yield values of the objective function smaller than the
lower bound are discarded.
Example 3
 Program 4 possesses an integral solution with z* = 50, hence 50 becomes a lower bound for the problem.
Program 5 has a solution with z* = 31.
Since 31 is less than the lower bound 50, program 5 is eliminated from further consideration, and would have
been so eliminated even if its first approximation had been non-integral.
8
 Branching continues from those programs having non-integral first approximations that give values of the
objective function greater than the lower bound.
If, in the process, a new integral solution is uncovered having a value of the objective function greater than the
current lower bound, then this value of the objective function becomes the new lower bound.
The program that yielded the old lower bound is eliminated, as are all programs whose first approximations give
values of the objective function smaller than the new lower bound.
The branching process continues until there are no programs with non-integral first approximations remaining
under consideration.
At this stage, the current lower-bound solution is the optimal solution to the original program.
 If the objective function is to be minimized, the procedure remains the same, except that upper bounds are used.
Thus, the value of the first integral solution becomes an upper bound for the problem, and programs are
eliminated when their first approximate z-values are greater than the current upper bound.
9
COMPUTATIONAL CONSIDERATIONS
 One always branches from that program which appears most nearly optimal.
When there are a number of candidates for further branching, one chooses that having the largest z-value, if the
objective function is to be maximized, or that having the smallest z-value, if the objective function is to be
minimized.
 Additional constraints are added one at a time.
If a first approximation involves more than one non-integral variable, the new constraints are imposed on that
variable which is furthest from being an integer, which means that variable whose fractional part is closest to
0.5.
In case of a tie, the solver arbitrarily chooses one of the variables.
10
 Finally, it is possible for an integer program or an associated linear program to have more than one optimal
solution.
In both cases, we adhere to convention adopted earlier, arbitrarily designating one of the solutions as the optimal
one and disregarding the rest.
Example 4
We next draw a schematic tree diagram depicting the results of above Examples 1 through 3.
The schematic tree diagram is drawn in Figure 1.
Figure 1: Example schematic tree diagram.
11
 The original integer program 1 is designated by a circled 1, and all other programs formed through branching
are designated in the order of their creation by circled successive integers.
Thus, programs 2 through 5 are designated by circled 2 through 5, respectively.
The first approximate solution to each program is written on the circle designating the program.
Each circle or program is then connected by a line to that circle or program which generated it via the branching
process.
The new constraint that defined the branch is written above the line.
12
Finally, a large cross is drawn through a circle if the corresponding program has been eliminated from further
consideration.
Hence, branch 3 was eliminated because it was not feasible, and branch 5 was eliminated by bounding in
Example 3.
Since there are no non-integral branches left to consider, the schematic tree diagram indicates that program 1 is
solved with x1* = 5, x2* = 0 and z* = 50.
13
SUMMARY
 Integer linear programs are linear programs with some or all the variables restricted to integer (or discrete)
values.
The chapter presents the most prominent and computationally efficient algorithm of integer programming:
branch and bound (B&B).
All commercial codes are mostly rooted in B&B.
 A drawback of integer programming algorithms is their lack of consistency in solving integer problems.
Although these algorithms are proven theoretically to converge in a finite number of iterations, their
implementation on the computer (with its inherent machine round-off error) is a different experience.
One should keep it in mind during the study of the integer programming algorithms.
14
LECTURE 16
MANAGEMENT INFORMATION SYSTEMS I

1
MANAGEMENT INFORMATION SYSTEMS I
INTRODUCTION
 Management Information System (M.I.S.) is basically concerned with processing data into information, which is
then communicated to the various Departments in an organization for appropriate decision-making.
 Data collection involves the use of Information Technology (IT) devices comprising of computers and
telecommunications networks (E-Mail, Voice Mail, Internet, telephone, etc.)
 Computers are important for more quantitative, than qualitative, data collection, storage and retrieval.
Special features of computers used for the processing of data into information are speed and accuracy, and
storage of large amount of data.
2
 Telecommunications provide the means for one-way or two-way communication and for the transmission of
data and messages.
A lot of time and money are saved and the security of data and messages is also ensured.
 MIS provides several benefits to the business organization:

 means of effective and efficient coordination between Departments
 quick and reliable access to relevant data and documents
 use of less labor
 improvement in organizational and departmental techniques
 management of day-to-day activities → such as accounts, stock control, payroll, etc.
 day-to-day assistance in a Department
 closer contact with the rest of the world
 It is important to note that whatever IT is installed must be appropriate to the organization, and to each
department.
3
ACCESSING INFORMATION
 With the introduction of the Internet and the World Wide Web, students are able to access information faster
and more efficiently using modern Computer Systems.
In the past, one had to visit national and school libraries and spend large amounts of time accessing information.
Presently any individual can quickly access, save and print information from any location.
One can access the internet from Cyber Cafes, schools, mobile phones, at home and even at modern libraries
through internet service providers and telecommunication links.
Apart from the internet, information found in encyclopedias, tutorials and documentaries can be accessed from
CDs / DVDs which are read from computer systems.
4
COMPONENTS OF A COMPUTER SYSTEM
 Modern computer systems consist of a central processing unit, primary storage, secondary storage, input, output
and communication devices.
 Central processing unit (CPU) → manipulates and processes data, and controls the other parts of the
computer system.
 Primary storage (RAM) → temporarily stores data and program instructions during processing.
 Secondary storage (hard disk drives) → stores data and instructions when they are not used in processing.
 Input devices (keyboard, mouse) → receive / convert data and instructions for processing in the computer.
 Output devices (monitor, printer) → display / present data in a form that people can understand.
 Communications devices (modems) → control the passing of information to and from communications
networks.
5
 Computers are differently classified.
We can use size and processing speed to categorize contemporary computers as mainframes, midrange
computers, personal computers, workstations, and supercomputers.
 Accessing information using the Internet or compact discs require a minimum of a desktop or laptop personal
computer.
These systems once equipped with a modem, browser software and CD-ROM are sufficient enough for
individuals to access and track information.
6
Figure 1: Computers for data processing and accessing information.
7
WHY DO PEOPLE NEED INFORMATION?
 Individuals - Entertainment and enlightenment
 Businesses - Decision making, problem solving and control
DATA AND INFORMATION

Data
 A fact, a number, a statement, or a picture
 Represents something in the real world
 Raw materials in the production of information
Information
 Data that have meaning within a context
 Data after manipulation
 Data in relationships
8
DATA MANIPULATION
Example
Customer survey
 Reading through data collected from a customer survey with questions in various categories would be time-
consuming and not very helpful.
 When manipulated, the surveys may provide useful information.
GENERATING INFORMATION
 Industries take raw material as input, process it in industrial facilities, and produce marketable commodity as
output.
 Computer-based information systems take data as raw material input, process it, and produce information as
output.
9
Figure 2: Input-process-output.
10
CHARACTERISTICS OF USEFUL INFORMATION
Relevance
 Information must pertain to problem at hand.
 Information must also be presented in a way that helps understanding it in a specific context.
Completeness
 Partial information is often worse than no information.
 Marketing data about household incomes can lead to bad decisions if not accompanied by vital information on
the consumption habits of the targeted population.
Accuracy
 Erroneous information can lead to disastrous decisions.
 Inaccurate record of a patient's reaction to an antibiotic can lead a doctor to harm the patient while believing that
he or she is helping the patient.
11
Currentness
 Decisions are often based upon the latest information available, but what was a fact yesterday may not be one
today.
 An investment decision to purchase a commodity today based on yesterday's prices may be costly mistake if the
price of the commodity has risen in the interim.
Economics
 In a business setting, cost of obtaining information must be considered as one cost element involved in any
decision.
 Demand for a new product must be researched to reduce risk of marketing failure, but if the market research is
too expensive, the cost of obtaining the information can diminish profit from sales.
12
Figure 3: Characteristics of useful information.
13
WHAT IS A SYSTEM?
System
 A set of components that work together to achieve a common goal
Subsystem
 One part of a system serving some useful purpose in the operation of the system
Closed system
 Stand-alone system that has no contact with other systems
Open system
 System that interfaces with other systems
14
Figure 4: Company accounting system.
 Several subsystems make up the above company accounting system.
15
INFORMATION AND MANAGERS
 Information creates a framework for problem solving and decision making.
 Information available keeps managers focused on overall goals and operations of business.
16
LECTURE 17
MANAGEMENT INFORMATION SYSTEMS II

1
MANAGEMENT INFORMATION SYSTEMS II
QUALITIES OF HUMANS AND COMPUTERS THAT CONTRIBUTE TO THEIR ASSOCIATION
HUMANS COMPUTERS
 Think  Calculate and perform

programmed logical operations
extremely rapidly
 Store and retrieve data and

 Have common sense
information extremely rapidly
 Perform complex logical and

 Can make decisions arithmetical functions accurately
 Perform long, tedious operations

 Can instruct the computer what to
do
 Perform routine tasks less

 Can learn new methods and expensively than humans
techniques
 Are adaptable → can be

 Can accumulate expertise programmed and reprogrammed
2
Figure 5: Qualities of humans and computers that contribute to their association.
3
BENEFITS OF HUMAN-COMPUTER ASSOCIATION
 Combined resources produce output that exceeds the sum of the outputs of the same resources employed
separately
 Allows human thought to be translated into efficient processing of large amounts of data
4
COMPONENTS OF AN INFORMATION SYSTEM
Data
 Input that the system takes to produce information
Hardware
 Computer and its peripheral equipment → input, output, storage devices, data communication equipment
Software
 Set of instructions that tell the computer how to take the data in, how to process it, how to display information,
and how to store data and information
5
Telecommunications
 Hardware and software that facilitate fast transmission and reception of text, pictures, sound, and animation in
the form of electronic data
People
 Analyze organizational information needs, design and construct information systems, write computer programs,
operate the hardware and maintain software
Procedures
 Rules for achieving optimal and secure operations in data processing
 Include priorities in running different applications on the computer and security measures
6
Figure 6: Components of an information system.
7
STAGES OF DATA PROCESSING
Input
 Data is collected and entered into computer.
Data processing
 Data is manipulated into information using mathematical, statistical, and other tools.
Output
 Information is displayed or presented.
Storage
 Data and information are maintained for later use.
8
OPPORTUNITIES IN INFORMATION SYSTEMS
 Employers seek computer-literate professionals who know how to use information technology.
 Key to full participation in society
 Careers in Information Systems include employments such as systems analyst, specialist in enterprise resource
planning (ERP), database administrator, telecommunications specialist, consulting, etc.
9
ETHICAL AND SOCIETAL ISSUES: THE NOT-SO-BRIGHT SIDE
Consumer Privacy
 Organizations collect → and sometimes sell → huge amounts of data on individuals.
Employee Privacy
 Employees remotely monitored in computer industry → it violates privacy and creates stress.
Freedom of Speech
 Computers and internet increase opportunities for hate speech, intellectual property crime, and other intrusions
 prevention may abridge free speech.
10
Professionalism
 No mandatory or enforced code of ethics in computer industry → unlike other professions.
Social Inequality
 Around 50% households in the world do not have a PC.
 Only around 50% of the world population has internet access.
11
ERAS OF M.I.S. EVOLUTION CORRESPONDING TO FIVE PHASES IN THE DEVELOPMENT OF
COMPUTER TECHNOLOGY
 Researchers identify five eras of Management Information System evolution corresponding to the five phases in
the development of computing technology:
(1). Mainframe and minicomputer computing,
(2). Personal computers
(3). Client / server networks
(4). Enterprise computing, and
(5). Cloud computing.
1. Mainframe and Minicomputer Computing

 The first era of mainframe and minicomputer was ruled by IBM and their mainframe computers.
 These computers would often take up whole rooms and require teams to run them.
 IBM supplied the hardware and the software.
 As technology advanced, these computers were able to handle greater capacities and therefore reduce their cost.
 Smaller, more affordable minicomputers allowed larger businesses to run their own computing centers in-house.
12
2. Personal Computers
 The second era (personal computer) began in 1965 and accelerated the process of decentralizing computing
power from large data centers to smaller offices.
 In the late 1970s minicomputer technology gave way to personal computers and relatively low cost computers
were becoming mass market commodities, allowing businesses to provide their employees access to computing
power that ten years before would have cost tens of thousands of dollars.
 This proliferation of computers created a ready market for interconnecting networks and the popularization of
the Internet.
3. Client / Server Networks

 As technological complexity increased and costs decreased, the need to share information within an enterprise
also grew — giving rise to the third era of client / server networks, in which computers on a common network
access shared information on a server.
 This lets thousands and even millions of people access data simultaneously.
13
4. Enterprise Computing
 The fourth era of enterprise computing enabled by high speed networks, tied all aspects of the business
enterprise together offering rich information access encompassing the complete management structure.
5. Cloud Computing
 The fifth era of cloud computing is the latest and employs networking technology to deliver applications as well
as data storage independent of the configuration, location or nature of the hardware.
 This, along with high speed wifi networks, has led to new levels of mobility in which managers access the MIS
remotely with laptop, tablet computers and smartphones.
14
DEVELOPING INFORMATION SYSTEMS
 System development → includes actions that are taken to create an information system that solves an
organizational problem
These actions include:

 System analysis
 System design
 Programming/implementation
 Testing
 Conversion
 Production
 Maintenance
15
 These actions usually take place in the order specified above, however some will need to repeat or be
accomplished concurrently.
 Conversion is the process of changing or converting the old system into the new.
This can be done in three basic ways as described below, which are the traditional conversion methods.
1. Direct method
The new system replaces the old at an appointed time.
2. Pilot study
Introducing the new system to a small portion of the operation to see how it compares.
If good then the new system expands to the rest of the company.
3. Phased approach
The new system is introduced in stages.
16
ADVANTAGES OF MANAGEMENT INFORMATION SYSTEM
 The following are some of the benefits which can be attained using different kinds of MISs.
1. Companies are able to identify their strengths and weaknesses due to the presence of revenue reports,
employees' performance record, etc.
Identifying these aspects can help a company improve its business processes and operations.
2. They give an overall picture of the company, and act as a communication and planning tool.
17
3. The availability of customer data and feedback can help the company to align its business processes
according to the needs of its customers.
The effective management of customer data can help the company to perform direct marketing and
promotion activities.
4. Information is an important asset for any company in the modern competitive world.
Consumer buying trends and behaviors can be predicted by analysis of sales and revenue reports from each
operating region of the company.
5. MISs can help a company gain a competitive advantage.
Competitive advantage is a firm’s ability to do something in more improved way, faster, cheaper, or
uniquely, when compared with rival firms in the market.
18

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LECTURE 1

INTRODUCTION TO OPERATIONS RESEARCH I

DR. ANUP KUMAR TRIPATHI

DEPARTMENT OF MINING ENGINEERING

OPERATIONS RESEARCH MATHEMATICAL MODELS

 Principal components of an OR model:

 A solution of the model is feasible if it satisfies all the constraints.

The optimum solution of a model is best only for that model.

 Other techniques that deal with other types of mathematical models:

Instead, they are determined by algorithms.

 Simulation is an alternative approach to modeling complex systems.

It is regarded as the next best thing to observing a real system.

 Simulation computations, though usually simple, are voluminous.

It is unthinkable to run a simulation model without the use of computer.

 Development of simulation models is costly in terms of both time and resources.

DR. ANUP KUMAR TRIPATHI

DEPARTMENT OF MINING ENGINEERING

SYSTEM MODELING AND ANALYSIS

Such a simplified representation is called a model.

 As a decision-making tool, OR is both a science and an art.

We can, however, offer general guidelines for the implementation of OR in practice.

 The principal phases for implementing OR in practice include:

Implementation of the remaining phases is more an art than a theory.

This function should be carried out by the entire OR team.

The aim is to identify three principal elements of the decision problem:

An important aspect of the model solution phase is sensitivity analysis.

In other words, does the solution make sense?

Are the results intuitively acceptable?

The burden of this task lies primarily with the OR team.

DR. ANUP KUMAR TRIPATHI

DEPARTMENT OF MINING ENGINEERING

HISTORICAL DEVELOPMENT OF OPERATIONS RESEARCH

Industrialization resulted in complex managerial problems and therefore application of OR to

2. Many operations researchers continued their research after the war.

Consequently some important advancements were made in various OR techniques.

3. Greater analytical power was made available by high-speed computers.

Many Colleges and Universities introduced OR in their program curriculum.

Today all organizations recognize usefulness of OR in improving efficiency.

 OR club was formed in England in 1948.

It later changed its name to OR Society of UK.

Its journal OR Quarterly first appeared in 1950.

 During the 1960s, OR groups were formed in several organizations.

 Educational and professional development programs were expanded at all levels.

 Certain firms, specializing in decision analysis were also formed.

OR offers alternative plans for a problem to the management for decisions.

DR. ANUP KUMAR TRIPATHI

DEPARTMENT OF MINING ENGINEERING

Such problems are called optimization problems.

This technique has found its applications in numerous important areas.

The company has 2 grinders and 3 polishers.

Profit on an M1 model is $3 and on an M2 model is $4.

Whatever is produced in a week is sold in the market.

Then the weekly profit in dollars is:

and the total number of polishing hours required per week:

Hence this allocation problem is to find x1, x2 which:

This is an example of a real situation from industry.

He has two bottling machines A and B.

A is designed for 8-ounce bottles and B for 16-ounce bottles.

The following is available:

Profit in a 8-ounce bottle is 15 cents and on a 16-ounce bottle is 25 cents.

Formulate this as a linear programming problem.

Then, the weekly profit in dollars of the production planner is:

As the total weekly production cannot exceed 300,000 ounces, therefore: