Master of Business Administration- MBA Semester 1 MB0048 Operations Research- 4 Credits (Book ID: B1631) Assignment Set - 1 (60

Marks)

Q-1. a. What do you mean by Linear programming problem? Explain the steps involved in Linear programming problem formulation? b. A paper mill produces two grades of paper viz., X and Y. Because of raw material restrictions, it cannot produce more than 400 tons of grade X paper and 300 tons of grade Y paper in a week. There are 160 production hours in a week. It requires 0.20 and 0.40 hours to produce a ton of grade X and Y papers. The mill earns a profit of Rs. 200 and Rs. 500 per ton of grade X and Y paper respectively. Formulate this as a Linear Programming Problem. A-1. Linear Programming Problem: Linear Programming (LP) is a mathematical technique designed to help managers in their planning and decision-making. It is usually used in an organisation that is trying to make the most effective use of its resources. Resources typically include machinery, manpower, money, time, warehouse space, and raw materials. A few examples of problems in which LP has been successfully applied are: Developments of a production schedule that will satisfy future demands for a firm's product and at the same time minimise total production and inventory costs. Establishment of an investment portfolio from a variety of stocks or bonds that will maximise a company's return on investment. Selection of the product mix in factory to make best use of machine and man hours available while maximizing the forms profit. The steps involved in Linear programming problem formulation are as follows: Study the given situation to find the key decisions to be made Identify the variables involved and designate those symbols xj (j=1, 2....) State the feasible alternatives which generally are: xj0, for all j Identify the constraints in the problem and express them as linear inequalities or equations, LHS of which are linear functions of the decision variables.

Identify the objective function and express it as a linear function of the decision variables.

Q-2. a. Discuss the methodology of Operations Research. b. Explain in brief the phases of Operations Research. A-2. a. Operations Research Methodology: The basic dominant characteristic feature of operations research is that it employs mathematical representations or models to analyse problems. This distinct approach represents an adaptation of the scientific methodology used by the physical sciences. Problem Definition Model Construction Model Solution Model Validation Result Implementation Let us now study the steps in detail. 1. Definition: The first and the most important step in the OR approach of problem solving is to define the problem. 2. Construction: Based on the problem definition, you need to identify and select the most appropriate model to represent the system. 3. Solution: After deciding on an appropriate model, you need to develop a solution for the model and interpret the solution in the context of the given problem. A solution to a model implies determination of a specific set of decision variables that would yield an optimum solution.

4. Validation: A model is a good representation of a system. However, the optimal solution must work towards improving the system's performance. You can test the validity of a model by comparing its performance with some past dab available from the actual system. 5. Implementation: You need to apply the optimal solution obtained from the model to the system and note the improvement, in the performance of the system. You need to validate this performance check under changing conditions. b. Phases of Operations Research: The scientific method in OR study generally involves three phases. Let us now study the phases in detail. 1. Judgment phase: This phase includes the following activities: Determination of the operations Establishment of objectives and values related to the operations Determination of suitable measures of effectiveness 2. Research phase: This phase utilizes the following methodologies: Operation and data collection for a better understanding of the problems Formulation of hypothesis and model Observation and experimentation to test the hypothesis on the basis of additional data Prediction of various results and consideration of alternative methods. 3. Action phase: This phase involves making recommendations for the decision process. The recommendations can be made by those who identify and present the problem or by anyone who influences the operation in which the problem has occurred.
Q-3. Solve the following Linear Programming Problem using Simple method.

Maximize Z= 3x1 + 2X2 Subject to the constraints: X1+ X2 4 X1 - X2 2 X1, X2 0 Answer-3. The procedure for solving the given problem is illustrated in the following steps: Step I: Standard form of a maximum problem A linear programming problem in which the objective function Is to be maximized is referred to as a maximum linear Programming problem. Such problems are said to be in standard Form if following conditions are satisfied: (i) All the variables are nonnegative. (ii) All the other constraints are written as a linear expression, that is, less than or equal to a positive constant. Check whether the given problem is in standard form ? This is a maximum problem containing two variables x1 and x2. Since both the variables are non negative and the other constraints are each written as linear expression less than or equal to a positive constant, therefore, we conclude that the maximum problem is in standard form. Steep II: Slack variables and starting simplex table In order to solve the maximum problem by simplex method, we need to do the following first (i) Introduction of slack variables, and (ii) Construction of the initial simplex table. In this problem we have the constraints as linear expressions less than or equal to some positive constants. That means there is a slack between the left and right sides of the inequalities Let x1=first kind x2= second kind Min Z = 3 x1 + 2 x2 Sub.to 3 x1 + 2 x2 6 4 x1 + x2 = 8 2 x1 + 6 x2 12 x1 , x2 0 H.W/ Three kind of texture are process successively on two machines the manufacturing time (in hours) each kind are tabulated below for the tow machines formulated the mathematical model (for the above primal to minimize the total cost). Q-4. Explain the procedure of MODI method of finding solution through optimality test. A-4. Transportation Algorithm for Minimization Problem (MODI Method) Make the transportation table entering the origin capacities ai, the cost cij and destination requirement. The first approximation to is always integral and therefore always a feasible solution. Rather than determining a first approximation by a direct application of the simplex method it is more efficient to work with the table given below called the transportation table. The transportation algorithm is the simplex method specialized to the format of table it involves i) finding an integral basic feasible solution

ii) Testing the solution for optimality. iii) Improving the solution, when it is not optimal iv) Repeating steps (ii) and (iii) until the optimal solution is obtained.

Q-5. a. Explain the steps in Hungarian method. b. Solve the following assignment problem.
Machine 1 A B C D 2 60 40 55 45 3 50 45 70 45 Operators 4 45 55 60 40 5 45 35 50 45

A-5. a. Hungarian Method Algorithm It is based on the concept of opportunity coat and is more efficient in solving assignment, problems. The following steps are adopted to solve an AP using the Hungarian method algorithm. Step 1: Prepare row ruled matrix by selecting the minimum values for each row and subtract it from the other elements of the row. Step 2: Prepare column-reduced matrix by subtracting minimum value of the column from the other Values of that column. Step 3: Assign zero row-wise if there is only one zero,, in the row and cross (X) or cancel other zeros in that column Step 4 Assign column wise if there is only one zero in that column and cross other zeros in that row. Step 5: Repeat steps 3 and 4 till all zeros are either assigned or crossed. If the number of assignments is equal to number of rows present, you have arrived at an optimal solution, if not, proceed to step 6 Step 6 Mark () the unassigned rows. Look for crossed zero in that row. Mark the column containing the crossed zero Look for assigned zero in that column Mark the row containing assigned zero Repeat this process till all the makings are done Step 7: Draw a straight line through unmarked rows and marked column. The number of straight line drawn will be equal to the number of assignments made.

Step 8: Examine the uncovered elements. Select the minimum. Subtract it from the uncovered elements. Add it at the point of intersection of lines. Leave the rest as is. Prepare a new table. Step 9: Repeat steps 3 to 7 till optimum assignment is obtained Step 10: Repeat steps 5 to 7 till number of allocations = number of rows The assignment algorithm applies the concept of opportunity costs. The of any kind of action or decision consists of the opportunities that sacrificed in taking that action.

Q-6. a. Explain the steps involved in Vogels approximation method (VAM) of solving transportation problem. b. Solve the following transportation problem using Vogels approximation method.

Factories

Distribution Centres

Supply

C1 F1 F2 F3 Requirements 3 7 2 60

C2 2 5 5 40

C3 7 2 4 20

C4 6 3 5 15 50 60 25

A-6. Vogel's Approximation Method (VAM) This method is based on the 'difference' associated with each row and column in the matrix giving unit cost of transportation cij. This 'difference' is defined as the arithmetic difference between the smallest and next to the smallest element in that row or column. This difference in a row or column indicates the minimum unit penalty incurred in failing to make an allocation to the smallest cost cell in that row or

column. This difference also provides a measure of proper priorities for making allocations to the respective rows and

ANSWER6 b.)1. Put vogel's approximation method for determining the initial basic feasible solution