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MB0048 – Operations Research

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

Other constraints are simple. Then the linear programming problem becomes: Maximize p = 3 X1 + 5 X2
Subject to restrictions, X1 + 2X2 ≤ 2000 (Time constraint) X1 + X2 ≤ 1500 (Plastic constraint)

X2 ≤ 600 (Dress constraint) And non-negatively restrictions
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bottle necks may occur. 5. labor. in a factory some machines may be in great demand while others may lie idle for some time. The individual who makes use of linear programming methods becomes more objective than subjective.) 2. adding a dummy row and applying Hungarian method. The linear programming technique helps to make the best possible use of available productive resources (such as time. 4. 3. X 2 ≥ 0 2. A significant advantage of linear programming is highlighting of such bottle necks. Most business problems involve constraints like raw materials availability. which must be taken into consideration. In a production process. Solve the following Assignment Problem Operations O1 O2 O3 M1 10 9 15 M2 15 10 16 M3 12 9 16 M4 11 12 17 Since the number of rows are less than number of columns. Just we can produce so many units of product does not mean that they can be sold. Linear programming can handle such situation also. For example. It also helps in providing better tools for adjustment to meet changing conditions.X 1. market demand etc. Row reduction matrix Operations O1 O2 O3 M1 10 9 15 M2 15 10 16 M3 12 9 16 M4 11 12 17 2 . machines etc. It improves the quality of decisions. 3. What are the advantages of Linear programming techniques? 1.

3 . is a class of problems that are. If only some of the unknown variables are required to be integers. 4. O2 – M3. in computational complexity theory. O1 – M1 O2 – M3 O3 – M2 10 09 16 O4 – M4 00 ------------------------TOTAL 35 Therefore. 0-1 integer programming or binary integer programming (BIP) is the special case of integer programming where variables are required to be 0 or 1 (rather than arbitrary integers). In contrast to linear programming. then the problem is called a mixed integer programming (MIP) problem. the optimum assignment schedule is O1 – M1. O3 – M2 AND O4 – M4. then the problem is called an integer programming (IP) or integer linear programming (ILP) problem. informally. M2) arbitrarily. What is integer programming? If the unknown variables are all required to be integers. Selecting (03.O4 0 0 0 0 Optimum assignment solution Operations O1 O2 O3 O4 M1 [0 ] x 1 M2 5 1 M3 2 M4 1 3 x [0 ] x [0 ] x x x [0 ] Hungarian Method leads to multiple solutions. This problem is also classified as NPhard. and in fact the decision version was one of Karp's 21 NP-complete problems. which can be solved efficiently in the worst case. integer programming problems are in many practical situations (those with bounded variables) NP-hard (non-deterministic polynomial-time hard). These are generally also NP-hard. "at least as hard as the hardest problems in NP").

4 . Step 6: Repeat steps 2 and 3 until a sufficient number of samples are available. Write down the basic difference between PERT &CPM. Step 4: Obtain a consistent set of values (or states) for the variables. Though there are no essential differences between PERT and CPM as both of them share in common the determination of a critical path. Both are based on the network representation of activities and their scheduling that determines the most critical activities to be controlled so as to meet the completion date of the project. Explain the methodologies? different steps involved in simulation The methodology developed for simulation process consists of the following seven steps: Step 1: Identify and clearly define the problem.e. a sample of probabilistic variables. most notably problems where the constraint matrix is totally uni-modular and the right-hand sides of the constraints are integers. Step 5: Use the sample obtained in step 2 to calculate the values of the decision criterion. Step 2: List the statement of objectives of the problem. Step 3: Formulate the variables that influence the situation and an extract or probabilistic description of their possible values or states. it may be possible to apply delayed column generation. 5.There are however some important subclasses of IP and MIP problems that are efficiently solvable. i. Such integer-programming algorithms are discussed by Padberg and in Beasley. by actually following the relationships among the variables for each of the alternative decisions. Advanced algorithms for solving integer linear programs include:      cutting-plane method branch and bound branch and cut branch and price if the problem has some extra structure. random sampling technique maybe used.. Step 7: Tabulate the various values of the decision criterion and choose the best policy. 6.

PERT Some key points about PERT are as follows: 1. It helps in pinpointing critical areas in a project so that necessary adjustment can be made to meet the scheduled completion date of the project. associated probabilities are calculated so as to characterize it. CPM is used for projects involving activities of repetitive nature. 2. Therefore. CPM is suitable for establishing a trade-off for optimum balancing between schedule time and cost of the project. 4. emphasis is given on the important stages of completion of a task rather than the activities required to be performed to reach a particular event or task. Therefore. PERT was developed in connection with an R&D work. In PERT. It is an event-oriented network because in the analysis of a network. 2. Therefore. 3. PERT is normally used for projects involving activities of non-repetitive nature in which time estimates are uncertain. CPM 1. which consisted of routine tasks whose resource requirements and duration were known with certainty. it had to cope with the uncertainties that are associated with R&D activities. 5 . 3. it is basically deterministic. the total project duration is regarded as a random variable. CPM was developed in connection with a construction project.

The objective of a model is to identify significant factors that affect the real-life system and their interrelationships. A broad classification of OR models You can broadly classify OR models into the following types. b. There are two types of physical models: a. d. Analog models are small physical systems having characteristics similar to the objects they represent. A model aids the decision-making process as it provides a simplified description of complexities and uncertainties of a problem in a logical structure. A model is an idealized representation or abstraction of a real-life system. sequencing. By the extent of Generality Models can be further classified as follows: 6 . and replacement models. Mathematical or Symbolic Models employ a set of mathematical symbols to represent the decision variable of the system. such as an EOQ model. Probabilistic Models in which the input and output variables follow a defined probability distribution. Analog models Iconic models are primarily images of objects or systems. They bring out significant factors and interrelationships in pictorial form to facilitate analysis. Physical Models include all form of diagrams. b. Deterministic model in which everything is defined and the results are certain. The most significant advantage of a model is that it does not interfere with the real-life system. c. Some examples of mathematical models are allocation. What is a model in OR?. By nature of Environment: Models can be further classified as follows: a. represented on a smaller scale. These models can simulate the actual performance of a product. graphs and charts. such as toys. The variables are related by mathematical systems. Discuss different models available in OR. They are designed to tackle specific problems. a. Iconic models b.MB0048 – Operations Research ASSIGNMENT SET 2 1. such as the Games Theory.

The Monte-Carlo simulation procedure can be summarized in the following steps: 7 . For example: You can use the sales response curve or equation as a function of only in the marketing function. where solution of the mode. Write dual of Max Z = 4X1 + 5X2 Subject to: 3X1 + X2 ≤ 15 X1 + 2X2 ≤ 10 5X1 + 2X2 ≤ 20 X1.a. Y 2. Y 3 ≥ 0 3. This approach has the ability to develop many months or years of data in a matter of few minutes on a digital computer. b. General Models are the models which you can apply in general to any problem. Write a note on Monte-Carlo simulation. or. For example: Linear programming. The method is generally used to solve the problems which cannot be adequately represented by mathematical models. Specific Models on the other hand are models that you can apply only under specific conditions. The Monte-Carlo method is a simulation technique in which statistical distribution functions are created by using a series of random numbers. is not possible by analytical method. X2 ≥ 0 Soln: Min W = 15Y1 + 10Y2 + 20Y3 Subject to 3Y1 + Y2 + 5Y3 ≥ 4 Y1 + 2Y2 + 2Y3 ≥ 5 Y 1. 2.

c) Associate the generated random numbers with the factors identified in step 1 and coded in step 4 (a).. c) Identify the type of distribution that will be used – Models use either theoretical distributions or empirical distributions to state the patterns the occurrence associated with the variables.e.Step 1: Define the problem: a) Identify the objectives of the problem. organize. and b) Identify the main factors which have the greatest effects on the objectives of the problem Step 2: Construct an appropriate model: a) Specify the variables and parameters of the model. It is basically a method to analyze the tasks involved in completing a given project. experiment with the model: a) Define a coding system that will correlate the factors defined in step 1 with the random numbers to be generated for the simulation. Step 5: Summarize and examine the results obtained in step 4. if necessary. d) Specify the manner in which time will change. i. Step 4: Using step 1 to 3. state the conditions under which the experiment is to be performed. and b) Specify the number of runs of simulation to be made. b) Formulate the appropriate decision rules. Explain PERT Program (Project) Evaluation and Review Technique (PERT) is a project management tool used to schedule. 4. 8 . Step 7: Formulate proposals for advice to management on the course of action to be adopted and modify the model. and to identify the minimum time needed to complete the total project. Step 3: Prepare the model for experimentation: a) Define the starting conditions for the simulation. especially the time needed to complete each task. and coordinate tasks within a project. Step 6: Evaluate the results of the simulation. b) Select a random number generator and create the random numbers to be used in the simulation. e) Define the relationship between the variables and parameters.

Therefore. a1n. 4. emphasis is given on the important stages of completion of a task rather than the activities required to be performed to reach a particular event or task.minimax principle Solving a two-person zero-sum game Player A and player B are to play a game without knowing the other player’s strategy. Explain Maximini . Then. PERT was developed in connection with an R&D work. . PERT planning involves the following steps:       Identify the specific activities and milestones. Bn. It is an event-oriented network because in the analysis of a network. 2. Determine the critical path. … . ..) 9 . … . Determine the proper sequence of the activities. Update the PERT chart as the project progresses. it had to cope with the uncertainties that are associated with R&D activities. a1n.Some key points about PERT are as follows: 1. PERT is normally used for projects involving activities of non-repetitive nature in which time estimates are uncertain. associated probabilities are calculated so as to characterize it. Estimate the time required for each activity. Construct a network diagram. Then. Also each player would expect his opponent to be calculative. α1 is the minimum gain of A when he plays A1 (α1 is the minimum pay-off in the first row. accordingly B’s choice would be B1. his gain would be a11. 3. a12. Suppose player A plays A1. It helps in pinpointing critical areas in a project so that necessary adjustment can be made to meet the scheduled completion date of the project.. player A would like to maximize his profit and player B would like to minimize his loss. Let α1 = min { a11.B2. a12. 5. Therefore. However. the total project duration is regarded as a random variable. In PERT.

… . s) is the saddle point.Similarly. if the maximin and the minimax are equal. v = ars is the common value of the maximin and the minimax. Am. then the game does not have a saddle point. the least pay-off in the second row. he would minimise his maximum loss. α2. A2. Note: If a game has saddle point. The value of a game is the expected gain of player A. The minimax is β = min j { max I (aij) } If α = β = v (say). Saddle point In a two-person zero-sum game. s). the player’s strategy is pure strategy. … . The maximum loss to B is when Bj is βj = max i ( aij ). αm. Here. if A plays A2. Saddle point is the position where the maximin (maximum of the row minimums) and minimax (minimum of the column maximums) coincide. the minimum gains are the row minimums α1. when B plays. when both the players adopt optimal strategy. If the maximin occurs in the rth row and if the minimax occurs in the sth column. The minimum of the column maximums in the pay-off matrix is called minimax. You will find corresponding to A’s play A1. Then the maximum of the row minimum in the pay-off matrix is called maximin. the maximin and the minimax are equal and the game is said to have saddle point. the game has saddle point. the position (r. It is called the value of the game. then his minimum gain is α2. This is the maximum pay-off in the j th column. 10 . If α < β. Suppose A chooses the course of action where αi is maximum. (r. The maximin is α = max I { min j (aij) } Similarly.

……………….. that pay-off is the value of the game. A2. Linear Programming Linear Programming b. Optimization refers to the maximization or minimization of the objective functions. the suggested solution for the players is mixed strategy. X2. 3. Write short notes on the following: a. You can define the general linear programming model as follows: Maximize or Minimize: Z = c1X1 + c2X2 + --. The suggested pure strategy for player B is Bs.+ a1nXn ~ b1 a21X1 + a22X2 + --. The saddle point of the game is as follows: 1. Note: However.+ a2nXn ~ b2 am1X1 + am2xX2 + --. If any pay-off is circled as well as boxed. The minimum pay-off in each row of the pay-off matrix is encircled. The maximum pay-off in each column is written within a box. 6. 2. The corresponding position is the saddle point. the game does not have a saddle point. if none of the pay-offs is circled or boxed. The value of the game is ars. Then.+ amnXn ~ bm and X1.Am be the courses of action for player A.Bn be the courses of action for player B. The LPP is a class of mathematical programming where the functions representing the objectives and the constraints are linear.+cnXn Subject to the constraints. Let A1. … . transportation Linear programming focuses on obtaining the best possible output (or a set of outputs) from a given set of limited resources.. s) be the saddle point. Hence.Solution to a game with saddle point Consider a two-person zero-sum game with players A and B. Let (r. … . Xn ≥ 0 11 . Let B1. a11X1 + a12X2 + --. the suggested pure strategy for player A is Ar. B2.

3 ------. 3. Then objective is to Minimize Z = Subject to m m ∑i=1 n∑j=1 CIJ Xij (2) ∑i=1 ai. …. 3. The objective is to develop an integral transportation schedule that meets all demands from the inventory at a minimum total transportation cost. m ∑i=1 ai = n∑j=1 bj (1) The condition (1) is guaranteed by creating either a fictitious destination with a demand equal to the surplus if total demand is less than the total supply or a (dummy) source with a supply equal to the shortage if total demand exceeds total supply. m.n) are constants determined from the technology of the problem and Xj (j = 1. 2. -------------. It is assumed that the total supply and the total demand are equal. i = 1. Here ~ is either ≤ (less than). each of which has available ai (i = 1.Where.n) are the decision variables. where aij is the amount of resource i that must be allocated to each unit of activity j. bi and aij (i = 1. the “worth” per unit of activity is equal to cj. 2. -------------. For a given supply at each source and a given demand at each destination. 2… m) units of homogeneous product and n destinations. The standard mathematical model for the transportation problem is as follows .. The cost cij of transporting one unit of the product from the ith source to the jth destination is given for each i and j. bi and aij are interpreted physically as follows. 2…. 3 ---. the model studies the minimization of the cost of transporting a commodity from a number of sources to several destinations. j = 1. 2. j = 1. Let Xij be number of units of the homogenous product to be transported from source i to the destination j. The cost of transportation from the fictitious destination to all sources and from all destinations to the fictitious sources are assumed to be zero so that total cost of transportation will remain the same. 3. Note that.. n) units of products. 2. m and n∑j=1 bj. The transportation problem involves m sources. in terms of the above formulation the coefficients cj. ≥ (greater than) or = (equal). If bi is the available amount of resources i. n With all XIJ ≥ 0 A necessary and sufficient condition for the existence of a feasible solution to the transportation problem (2) is: m ∑i=1 ai = n∑j=1 bj 12 . 2. Here ai and bj are positive integers. cj. Transportation Transportation model is an important class of linear programs. each of which requires b j (j = 1.

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