DEBRE BERHAN UNIVERSITY

COLLEGE OF BUSINESS AND ECONOMICS

MASTER OF BUSINESS ADMINISTRATION

OPERATION RESEARCH (MBA641)

INDIVIDUAL ASSIGNMENT

PREPARED BY
NAME: CHERNET TEFERA
IDNO: 021/10
SECTION B

SUBITTED TO Mr. LEMMA

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SUBMITION DATE MAY/2018
1.INTRODUCTION
1.1. HISTORICAL BACKGROUND OF OPERATION
RESEARCH
While it is difficult to mark the beginning of the operation
research/management science, the scientific approach to
management can be traced back to the era of industrial revolution
and even to periods before that.
As it exists today, was born during the Second World War
when the British military management called upon a group of
scientists to examine the strategies and tactics of various military
operations with the intention of efficient allocation of scarce
resources for the war effort.

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1.2. DEFINITION AND MEANINGS OF OR
In 1946 Morse & Kimbel has defined as; "OR is a scientific method of providing
executive departments with a quantitative basis for decision regarding the operations
under their control"

In 1948 Blackett defined as; "OR is a scientific method of providing executives
with any analytical and objective basis for decisions"

Another definition is due to Morse who defined in 1948 as; "The term OR, has
here-to fore been used to connote various attempts to study operations of war by
scientific methods. From a more general point of view, OR can be considered to be
an attempt to study those operations of modern society which involved organizations
of men or men and machines".

“Operations Research is a systematic analysis of a problem through scientific

methods, carried out by appropriate specialists, working together as a
team ,constituted at the instance of management for the purpose of finding an
optimum and the most appropriate solution ,to meet the given objective under
3 a
given set constraints.”
2.THEORETICAL FOUNDATION
2.1. LINEAR PROGRAMMING
•In 1947, George Danzig developed the use of algebra for determining
solutions to problems that involved the optimal allocation of scarce
resources.
•The term linear implies that all the mathematical relations used in the
problem are linear or straight-line relations, while the term programming
refers to the method of determining a particular program or plan of action,
i.e., the use of algorithms that is a well defined sequence of steps that will
lead to an optimal solution.
•44Taken as a whole, the term linear programming refers to a family of
mathematical techniques for determining the optimum allocation of
resources and obtaining a particular objective when there are alternative
uses of the limited or constrained resources.

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COMPONENTS OF LP MODELS
There are four major components of LP models including: Objective
function, decision variables,constraints and parameters.
A. Objective and Objective Function
The objective in problem solving is the criterion by which all
decisions are evaluated. It provides the focus for problem solving. In
linear programming models, a single, quantifiable objective must be
specified by the decision maker.
B. Decision variables
They represent unknown quantities to be solved for. The decision
maker can control the value of the objective, which is achieved
through choices in the levels of decision variables. For example, how
much of each product should be produced in order to obtain the
greatest profit?
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Constraints
Constraints are the ability of a decision maker to select values of
the decision variables in an LP problem is subject to certain
restrictions or limits coming from a variety of sources.
The restrictions may reflect availabilities of resources (e.g., raw
materials, labor time, etc.), legal or contractual requirements (e.g.,
product standards, work standards, etc.), technological requirements
(e.g., necessary compressive strength or tensile strength) or they may
reflect other limits based on forecasts, customer orders, company
policies, and so on.
Constraints can be arranged into three groups:
System constraints – involve more than one decision variable,
Individual constraints – involve only one variable, and
Non-negativity constraints – specify that no variable will be
allowed to take on a negative value. 6
ASSUMPTIONS OF LP MODELS
Linearity (proportionality) The linearity requirement is that each
decision variable has a linear impact on the objective function and in
each constraint in which it appears.
Divisibility (Continuity) The divisibility requirement pertains to
potential values of decision variables. It is assumed that non-integer
values are acceptable.
Additivity The value of the objective function and the total amount
of each resource used (or supplied), must be equal to the sum of the
respective individual contributions (profit or cost) by decision
variables.
Non-negativity It assumes that negative values of variables are
unrealistic and, therefore, will not be considered in any potential
solutions.
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Steps in formulating LP models:
STEP 1. Identify the decision variables.
STEP 2. Determine the objective function.
STEP 3. Identify the constraints.
STEP 4. Determine appropriate values for
parameters and determine whether an upper limit,
lower limit or equality is called for.
STEP 5. Use this information to build a model.
STEP 6. Validate the model.

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SOLVING LINEAR PROGRAMING MODEL
Following the formulation of a mathematical model, the next stage
in the application of LP to decision making problem is to find the
solution of the model.
1.GRAPHICAL LINEAR PROGRAMMING SOLVENG
METHODS
Graphical linear programming is a relatively straightforward for
determining the optimal solution to certain linear programming
problems involving only two decision variables.
Graphical method has the following advantages:
 It is simple
 It is easy to understand, and
 It saves time.

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 2. THE SIMPLEX METHOD
The graphical method of solving linear programming problems is a
simple way to find a solution space.
The simplex method is an algebraic procedure that starts with a
feasible solution that is not optimal and systematically moves from
one feasible solution to another until an optimal solution is found.
However, the graphical method is restricted to problems with two
decision variables.

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3. ANALYSIS
3.1. BACKGROUND OF THE CHURCH
The Debre Berhan Kale Hiwot church established in the beginning of
1960s E.C by the Sudanese inter-real Missionary (SIM) in kebele 06.
The founder of the church were college students , high school students,
soldier 19th and 20th military department and workers in the SIM. The
name of the church were Debre Berhan Tsion church
At the beginning of the church establishment there were 100 active
members of believers.The church faced a strong challenge during the
Dergue Regime at early 1970s. the government took the SIM compound
and many of the church members dispersed and thr the church collapsed.
After the downfall of the Dergue Regime and get legal protection under
the FDRE constitution thrugh freedom of worship.
And the name of the church became Debre Berhan Kale Hiwot church.
Currently the church has 250 believers, 2 pasters and 4 quires, 4 staff
workers.
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3.2. ENVIRONMENTAL ANALYSIS
Strength
They strongly believed on God
The believers attend the worship and pray program
Beside spiritual service the church support the community
Weakness
The number of believers are few in numbers
The capital of the church
The number of servants pasters and quires
The compound of the church is narrow
Opportunity
Freedom of following and worshiping any religion he/she wants declared
in the FDRE constitution
The majority of the population is young in age
Threat 12
The action of other religions
3.3. Linear Programing model for the case of Kale Hiwot Church
1. Debre Berhan Kale Hiwot Church has 250 followers from those 116 are
female and 134 are male. The church teaches spiritual lessons for believers 4
days and prepares 3 praying programs a weak. The church tries to reach its
followers by preparing and disseminating brochures and magazines. The
following table shows the number of brochures and magazine printed and
discriminating and its costs.

Type of printed materials Amount Cost

Brochure 300 6000

Magazine 100 4000

The church budgeted for printing those brochures and magazine is Br.18000
and the total number of brochures and magazines printed is not more than
1000.

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Solution
Zmax= 300X1 + 100 X2
S.t.c.
6000X1 + 4000X2≤18000
X1 + X2 ≤ 1000
X1, X2 ≥ 0
Standard form : Zmax= 300X1 + 100 X2 + 0S1+0S2
S.t.c.
6000X1 + 4000X2+S1=18000
X1 + X2 + S2 = 1000
X1, X2, S1, S2 ≥ 0
table 1 X1=300 X2=100 S1=0 S2=0 RR

S1=0 6000 4000 1 0 18000

S2=0 1 1 0 1 1000

Zj 0 0 0 0

Cj-Zj 6000 4000 0 0 14

 Since all the Cj-Zj row is ≤ 0 so
X1=300 X2=100 S1=0 S2=0 RR the table is optimal. So X1=3 and Z=
900.
X1=300 1 4/6 1/6000 0 3

S2=0 0 1/3 -1/6000 0 997

Zj 300 200 1/20 0 900

Cj-Zj 0 -100 -1/20 0

The dual form of the problem is

Wmin=18000 Y1 + 1000 Y2
S.t.c. 6000Y1 + Y2 ≥ 300
4000Y1 + Y2 ≥ 100
Y1, Y2 ≥ 0

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2.Kale hiwot church officially hired 4 staff workers 2 female and 2 male which
costs the church 2200 Birr monthly. The church has 2 spiritual servers or Pasters
which costs 6000 Birr per month for their service. The four staff workers and the
two Pasters works at least 168 hours and 48 hours.
Solution
Zmin= 2200X1 + 6000X2
S.t.c 2X1 + 2X2 ≥ 168
2X1 ≥ 48
X1 and X2 ≥ 0
Standard form:
Zmin 2200X1 + 6000X2 -0S1+0S2+MA1+MA2
S.t.c 2X1 + 2X2 - S1 + A1 =168
2X1 -S2+ A2=48
X1, X2, S1, S2, A1, and A2 ≥ 0

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Cj 2200 6000 0 0 M M

X1 X2 S1 S2 A1 A2 RR

A1 2 2 1 0 1 0 168

A2 2 0 0 1 0 1 48

Zj 4M 2M M M M M

Cj-Zj 2200-4M 6000-2M -M -M 0 0

Cj 2200 6000 0 0 M

X1 X2 S1 S2 A1 RR

A1=M 0 2 1 -1 1 120

X1=2200 1 0 0 -1/2 0 24

Zj 2200 2M M -1100-M M

Cj-Zj 0 6000-2M -M 1100+2M 0

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Cj 2200 6000 0 0

X1 X2 S1 S2 RR

X2=6000 0 1 -1/2 1/2 60

X1=2200 1 0 0 -1/2 24

Zj 2200 6000 -3000 -1900 412,800

Cj-Zj 0 0 3000 1900

• Since all the Cj-Zj row is ≥ 0 the solution is optimal. So X2=60, X2=24
and Z=412,800
• The dual form of the problem

Wmax=168Y1 + 48Y2
S.t.c. 2Y1 + 2Y2 ≤ 2200
2Y1 ≤ 6000
Y1 and Y2 ≥ 0
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3.Debre Berhan Kale Hiwot church has a total believers of 116 females and
134 males who has attend a worship and pray program prepared by the
church for the daily spiritual program the number of Pasters and Quires are
not more than 2 and 4 respectively and the church prepared 4 worship and
3 pray program a week and the church wants to maximize the number of
believers.
Solution
Zmax=116X1+134 X2
St.c. 2X1 + 4X2 ≥ 7
4X1 + 3X2 ≥ 7
X1 and X2 ≥ 0
Standard form:
2X1+4X2=7 (0, 1.75) and (3.5, 0)
4X1+3X2=7 (0, 2.3) and (1.75, 0)

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Points Coordinate Zmax = 116X1 + 134X2

A 1.72 , 2.3 511.2

B 0.7, 1.4 268.8

C 3.5 , 1.75 640.5 20

The dual form of the problem
Wmax= 7Y1 + 7Y2
S.t.c 2Y1 +4Y2 ≤ 116
4Y1 + 3Y2 ≤ 134
Y1 and Y2 ≥ 0

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4. Summary
This assignment based on the Debre Berhan Kale Hiwot church
founded in Debre Berhan. By analyzing the data obtained from the
church I developed three linear programming model with different
objectives constraints and parameters. The linear programming
Models developed for the church was with the objective of the
number of printed material maximization, cost minimization for
salary and maximization of the church’s follower with different
constraints and I searched the optimal solution through graphical and
simplex methods of linear program solving methods.

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