DMC 1752 Resource Management Techniques

RESOURCE MANAGEMENT TECHNIQUES
1 ANNA UNIVERSITY CHENNAI

NOTES
UNIT I
CHAPTER 1
GENERAL FEATURES OF
OPERATIONS RESEARCH
1.1 INTRODUCTION
Operations Research O.R.,
organisations
activities
activities
The origins of the subject of often abbreviated as date
back to the Second World War (1939 - 1945) of the last century. During the war, the allies
U.K. and U.S.A. engaged groups of scientists belonging to different disciplines, in order to
urgently evolve scientific approach to methodologies f allocation of scarce resources
required for different activities in drawing up effective tactical and strategic operational
plans. It is claimed that the recommendations of these groups led to victories in several
theatres of the war.
With the end of the war in the year 1945, these countr witnessed industrial boom
with the aid of newly invented technologies. The growi industries facing increasing
complexities of their activities had to seek consultan y from such scientists who had worked
in O.R. groups during the war. This was due to gradual awareness that industrial and
business activities, in essence, were of similar nature as were encountered in the military
operations. Actually during this period the subject of Operations Research acquired definitive
shape. Beginning with the pioneering work of the mathematician G.B.Dantzig during 1947
- 1948, most of the methods of O.R. were in place by the end of the next decade. In
succeeding decades intensive development of the subjec has taken place with the discovery
of newer more efficient methods, treating large size a tivities and development of computer
codes. Applications in new areas of agriculture, hospi s, communication networks and
government have also been found.
Operations Research is thus applicable to a variety of . An organisation
often has to deal with choice among alternative arising from conflict of interest
among its own components as well as those arising from other organisations with which it
has dealings. In some cases the choice has to be made n the backdrop of uncertainties.
Thus the subject of O.R. is really research on opera ons or for most effectively
running the organisation. Due to diverse nature of org nizations it is evident that unlike pure
sciences where answers can be deduced from a few fundamental laws, the answers in
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NOTES
deterministic
probabilistic
optimal
System Analysis
team
teamwork
advisory
Systems Analysis activities
alternatives decisions
appropriate objectives
mathematical modeling
decision alternatives
decision variables
constraints
objectives
O.R. are obtained in a variety of ways. Nevertheless, th the development of the subject,
some standard types have emerged and the answers in the first instance may well be found
in these types. The scope of modification and improvement is always there. When
uncertainties are absent the standard types are called , while in the contrary
case they are called . The standard types have the common running theme of
obtaining most effective (often called ) solution for the activities of the organisation.
In order to critically understand the activities of an organisation disregarding those in
the fringe (in other words performing of the organisation) and come up
with O.R. answers, a of individuals having specialized skills in different isciplines is
required. Typically an O.R. team may contain those who are highly trained in O.R. methods,
mathematics, probability and statistical theory, applied statistics, economics, business
administration, computing, production, construction, process and communication
engineering, agriculture, hospital management and phys al sciences. Thus is a
necessary ingredient of operations research. The role of the team is to the
management of the organisation and must come up with t ir specific recommendations,
including alternatives, but decisions are taken only b the management. It is clear that some
members of the team must be in good communication with the management before beginning
the exercise and at the end present their recommendati s.
When an organisation is very large, an O.R. team is usually engaged to find solution
for critically important segments of the organisation, which otherwise is not apparent. From
the recommended solutions, including alternatives, the management after taking into
consideration the remaining segments of the whole organisation decides on the course of
the activities, keeping in view the overall objective f stable profit, increased market share,
product diversification, stable prices, improved worke morale, company prestige, social
responsibilities while maintaining family control.
Because of its very nature, the management communicates to the O.R. team in a
vague, imprecise language about the segment requiring R. solution. From the input, the
team performs . This means that it has to identify the important
involved, together with the associated which could be made and
the to be attained. For quantitative answers it is appare that
of the system is required in which the essence of the above
mentioned ingredients are taken in to account. This procedure is true of most of pure
sciences as well, but the difference is that the O.R. dels are far more exact because of
the inherent complexities of the system, losing minute details during abstract modeling.
Suppose that the identified are in number say
1
,
2
, ,
n
(often the mathematical terminology is used for these). These are
often quantitative in nature and subject to which can be formulated as
mathematical inequalities. The obviously depend on
1
,
2
, ,
n
and are
n x x x
x x x
NOTES
objective functions
programming
planning of activities
Linear Programming Models
Nonlinear Programming Model
constants deterministic
Sensitivity Analysis
probabilistic
expectation or mean value
model validation
retrospective test
therefore mathematical functions of these variables. For O.R. solutions the values
1
,
2
,
,
n
are required to be determined for which the are optimal, that is
to say, maximum or minimum. Thus a model may look like
Optimise: Objective Function of
1
,
2

n
s.t.: Constraints involving
1
,
2

n
(s.t. standing for subject to). In this book it is restricted to models in which there is only
one objective function.
The solution methods are generally called (not to be confused with
by which actually is implied. A well
known class of models are the in which the objective
function and the constraints are all linear functions of
1
,
2
, ,
n
. In the following
chapters we shall come across several models belonging to this class. When either the
objective function or any of the constraints is a nonl ear function of
1
,
2

n,
the model
is called . In this book occasionally such models are
described.
The models alluded above generally contain several parameters associated with the
decision alternatives. These are supposed to be estima from the given system. If taken
as , the models are . The effect of slight alterations in them due to
some uncertainty is an important question and is called . An O.R.
team is required to perform this analysis too and inco orate appropriate recommendations
in their report. In some other models of a different kind, the decision alternatives depend
on random parameters with some probabilities (which is not unnatural because of complexity
of systems) and so the models become . In such cases the treatment is based
on the probability theory in which plays a central role. A
direct and more important class of probabilistic model is that of systems operating over a
length of time, receiving and dispatching items at random. Historically, the mathematical
theories of such problems were developed by noted math atical probability dating back
to the beginning of the last century. Enriched by appl ation models the theories were later
on embodied in O.R. In this connection it will not be of place to mention that the
literature on the mathematics of the variety of problems constituting the deterministic and
probabilistic models are extremely rich.
Over the years several models have been standerdised, me of which form the basis
of this book. But the application of a particular model to an organisational setup requires
additional task of , it being presumed that gross errors in model building
and trivial errors of computation are not present. A systematic approach when applicable
is the . In this test, past data for the model parameters are used and the
solution compared with the past performance. If this solution is indicative of a degree of
agreement with the experience of possible good performance in the past, then the model
x x
x
x x x
x x x
computer programming)
x x x
x x x
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NOTES
Implementation
1.2 FEATURES/CHARACTERISTICS OF O.R
Inter-disciplinary Team Approach
can be applied in the current situation as well, provided the system behaviour has not
radically changed. In some cases past data may not be ailable. In such cases status quo
in the level of activities can be maintained for some to generate data and the
performance compared with the solution. In case of major disagreement, the scope of
improvement in the model structure opens and the O.R. m should be in a position to
address such eventuality.
Over a length of time, due to complexity of real world, systems parameters may
undergo change and these require constant, monitoring. The solution is computer programs
or special software packages, with flexibility to make changes in these parameters so that
repeated application is possible.
of the solution of a validated model is the final task of an O.R.
team.
It is one of the most important features of operations research. What it signifies is that
it is impossible for a single individual to have a tho ough and extensive knowledge of all the
aspects of a particular problem which is to be analyze with the help of O.R. This would
require a team of individuals having varied and divers skills and backgrounds. Such a
team should be inter-disciplinary and, it should include individuals having adequate degree
of proven skills in the fields of
a) statistics
b) engineering
c) computers
d) economies and
e) mathematics etc.
Every expert member of this team analyses each and eve aspect of the problem and
determines if a similar problem has ever been undertak n previously by him or his colleagues.
By functioning in such a manner, each member of the team suggests an approach which
may be optimal for the problem under consideration, by utilizing his experience and skills.
Hence, operations research makes optimal and most effective utilization of people
from diverse disciplines for developing latest tools a techniques applicable to the business.
For example, while working on production planning and ontrol in an organization, one
may need the services of a production engineer, who kn ws the functions of the production
or assembly-line, a cost accountant and a statistician In this manner, every member of the
team so formed benefits from the views of other member of the team. Such a solution
developed through team work and collaboration has rela vely, higher chance of acceptance
by the top management.
NOTES
Methodological Approach
Objectivity Approach
Totalistic Approach
Continuous Process
O.R. is a highly systematic and scientific method. It llows a fixed and definite pattern
from the start to finish. The O.R. process starts with the careful observation and formulation
where the problem is broken down into various workable and manageable parts and then
carefully observed by the O.R. team. The essence of th real problem is then sought to be
translated into the O.R. model. This model is examined solutions ascertained, most optimal
ones applied to the model and results examined. If the results are found to be satisfactory,
these solutions are applied to the real or actual problem at hand.
The primary objective of O.R. is to find the best (optimal) solution to a problem
under consideration. To achieve this goal it is first necessary to define a measure of
effectiveness that takes into consideration the main o tives of the organization. This
measure can then be used as a standard or bench-mark to compare and evaluate the
alternative actions.
Any action or decision within an organization must first be analyzed and their
interactions and the effect on the entire organizatio carefully considered. Under totalistic
approach, any action should not be seen in isolation. fore evaluating it, its impact on the
whole organization should always be kept in mind. For ample, to remove bottlenecks in
production a production manger can store large quantity of inventories, raw materials and
finished goods. While this is important from the production managers view-point, it may
lead to a situation where there may arise a direct conflict between the marketing and the
finance departments of the organization. In such a scenario, the O.R team examines all the
related factors such as cost of raw materials, holding & storage costs and competitors
prices etc. Based on these, an appropriate O.R. model an be formulated for the solution
of the problem.
O.R. is a never-ending continuous process; it does not stop when a relevant O.R.
model is applied to the problem since this may further create new problems in the related
sectors as well as in the implementations of the decision taken. To implement the optimal
solutions (decisions), sometimes a change in the organizational structure might be needed.
This is provided again by the O.R. After implementatio stage, the controlling of results is
also the primary function of operations research. Ther re, it can be considered to be a
continuous process.
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NOTES
Broad Outlook
O.R. has a very great scope.
Economy of Operations
1.3 SCOPE OF OPERATIONS RESEARCH
Judgement Phase
Research Phase
Action Phase
It not only seeks to provide the most suitable optimal
solutions to a problem, but that it also uncovers new oblems by study methods.
The main function of O.R. is to provide solution to organizational problem and to
assist in decision-making. In case of any conflict or mplexity in a situation, O.R. helps to
minimize its costs and maximize profits resulting into economy of operations. Quite often
the problems are of such grave nature that they cannot be solved on the basis of intuition or
past experiences. E.g. New product development, product innovation, entry into new
markets, product-mix etc.
The scope of operations research is very wide and depends upon the 3 key areas or
phases of O.R. These are:-
The various components of this phase are as follows:
a) Ascertaining the operation
b) Establishing the objectives
c) Determining the appropriate effectiveness measures
d) Formulating the problem
The various components of this phase are as follows:
a) Observation and collection of data, to fully understan the various complex items
that form a par of the problem
b) Hypothesis or assumptions formulation
c) Model formulation
d) Analyzing the available data
e) Testing and verifying the accuracy of the hypothesis
f) Generalizing the results
g) Considering the alternative methods
After the above two phases are completed and an optimal solution has been obtained,
in the action phase, recommendations are made to the t management for accepting the
proposed solutions. Such a recommendation can be made y the persons who first presented
the problem for consideration or by any other person who is in a position to make an
NOTES
Finance
Accounts
Marketing
effective decision. The decision, once accepted, is th n implemented in the implementation
stage. Depending on these key areas, operations research can be applied in a very large
number of real life complex situations. However, any t ols or techniques of OR should be
utilized only after carefully considering the organisa onal requirements and should not be
followed blindly. Moreover the relative merits and demerits of a technique should always
be kept in mind. It should be ensured that the basic postulates or assumptions on which it
is based should not change. As and when the new requir nts emerge and the existing
problems become redundant, the technique in-use should either be mediated or replaced
by another one immediately. In general, O.R. techniques can be applied extensively in the
following areas in an organisation:
i) Cash flow analysis and cash management models
ii) Investment portfolios
iii) Long range capital needs
iv) Financial planning models
v) Dividend policy
vi) Equipment replacement policy
vii) Capital allocation under various alternatives
i) Auditing and verification work
ii) Credit policy and credit risks
iii) Credit worthiness/Ratings
iv) Transfer pricing
v) Cost accounting - by-products and standard costs
i) Optimum product mix
ii) Advertising mix
iii) Sales promotion mix
iv) Product selection, timing and competitive action
v) Number of salesmen, frequency of calling and time spent on future customers
vi) Packaging
vii) Godown or warehousing
viii) Introducing a new product
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NOTES
Purchases Management
Production Management
a. Physical Distribution
b. Distribution policy
c. Manufacturing
d. Maintenance and Project Scheduling
i) Terms and conditions for purchases
ii) Pricing of purchases
iii) Quantities to be purchased
iv) When to purchase
v) Bidding policies
vi) Searching for a new supplier or source
vii) Exploiting a new supplier or source
i) Location of godown or warehouse
ii) Size of godown or warehouse
iii) Channels of distribution
iv) Centres of distributions and retail outlets
i) Facilities Planning
ii) Number of factories/warehouses
iii) Location of factories/warehouses
iv) Facilities for loading/unloading for road as well as r lway transport schedule
v) Choosing sites with improved/better facilities
i) Production scheduling
ii) Production sequencing
iii) Minimising in-process inventory
iv) Minimising wastages/scraps/losses
v) Stabilizing production/lay-offs/product-mix
i) Maintenance policy
ii) Preventive maintenance
iii) Corrective maintenance
iv) Maintenance of crew size
v) Project scheduling
vi) Allocating the resources
NOTES
e. Research and Development (R & D)
f. Organisational Development/Personnel Management
i) Areas interested in or key research areas
ii) Selecting the project
iii) Fixing the R & D budget
iv) Reliability and alternative design
v) Finding time - over runs
vi) Finding cost - over runs
vii) Controlling
i) Minimizing the need for temporary help through better cheduling
ii) Selecting the skilled personnel at lowest possible cost
iii) Recruitment policies
iv) Assigning the right job to the right man
v) Right blend of age and skills
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NOTES
CHAPTER 2
LINEAR PROGRAMMING
2.1 LINEAR PROGRAM AND THE PRODUCT MIX MODEL
linear
linear
Linear Programming
Simplex Method
production planning
2.2 WHAT IS LINEAR PROGRAMMING
Many Operations Research mathematical models have the aracteristic feature that
the objective function is some function of a certain number of decision alternatives
1
,
2
, .,
n
which are subject to a certain number of constraints. Alternative
resources to
1
,
2
, .,
n
at different levels satisfying the constraints results in different
values of the objective function and the problem is to determine the levels of the objective
function and the problem is to determine the levels for which the objective function becomes
optimal (maximal or minimal).
Historically, the problem in its general form was conc ved by the mathematician G.B.
Dantzig and his associates in 1947, while working for States Department of Air
Force. Beginning from the same year the economist T.C. Koopmans discovered that the
formulation provided an excellent framework for the an lysis of classical economic theories.
The term was coined by Koopmans and Dantzig in the summer of
1948 during the course of their respective work. Dantzigs group working on project
SCOOP (Scientific Computation of Optimum Programs) dev loped the theory and a range
of applications. In 1949 Dantzig gave the of solution of the problem
and put in place most of the theory. The development of the subject in the middle of
twentieth century is considered a landmark in the history of mathematics. The theory is
however predated by some related work in 1939. L.V. Kantorovich considered a restricted
class of problem occurring in the modeling of and proposed a
rudimentary method of solution. His work however remained neglected in the Soviet Union
and outside, but was much later awarded the Nobel Priz in Economics with Koopmans in
1975. In the same year (1939), W.Karush investigated some aspects of optimality of a
function of variables subject to inequality constraints. These discoveries have proved
useful in linear programming theory. In subsequent years substantial developments have
taken place, notable by the discoveries of N.Karmarkar (1984). Adopting a radically
different approach now called , substantial reduction in computing
time has been achieved for large dimensional problems.
Linear Programming is that branch of mathematical programming which is designed
to solve optimization problems where all the constraints as well as the objectives are
expressed as linear function. It was developed by George B. Dentiz in 1947. Its earlier
application was solely related to the activities of th Second World War. However soon its
importance was recognized and it came to occupy a prominent place in the industry and
trade.
n
x x x
x x x
n
Interior Point Method
NOTES
Linear Programming is a technique for making decisions under certainty i.e., when all
the courses of options available to an organisation ar known and the objective of the firm
along with its constraints are quantified. That course of action is chosen out of all possible
alternatives which yield the optimal results. Linear P ing can also be used as a
verification and checking mechanism to ascertain the accuracy and the reliability of the
decisions which are taken solely on the basis of manag s experience without the aid of a
mathematical model.
Linear Programming is a method of planning and operati n involved in the construction
of a model of a real-life situation having the followi elements:
a. Variables which denote the available choices and
b. The related mathematical expressions which relate the riables to the controlling
conditions reflect clearly the criteria to be employed for measuring the benefits
flowing out of each course of action and providing an ccurate measurement of the
organizations objective. The method maybe so devised as to ensure the selection
of the best alternative out of a large number of alternative available to the
organization.
Linear Programming is the analysis of problems in whic a linear function of a number
of variables is to be optimized (maximized or minimize ) when whose variables are subject
to a number of constraints in the mathematical near inequalities.
From the above definitions, it is clear that:
i) Linear Programming is an optimization technique, where the underlying objective
is either to maximize the profits or to minimize the c t function.
ii) It deals with the problem of allocation of finite limited resources amongst different
competiting activities in the most optimal manner.
iii) It generates solutions based on the feature and charac eristics of the actual problem
or situation. Hence the scope of linear programming is very wide as it finds
application in such diverse fields as marketing and production.
iv) Linear Programming has been highly successful in solving the following types of
problems :
a. Product-mix problems
b. Investment planning problems
c. Blending strategy formulations and
d. Marketing and Distribution management.
v) Even though Linear Programming has wide and diversed applications, yet all LP
problems have the following properties in common:
a. The objective is always profit maximization or cost mi imization
b. Presence of constraints which limit the extent to whic the objective can
be pursued/achieved.
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NOTES
Decision or Activity Variables and their Inter-Relationship
Finite Objective Functions
Limiting Factors/Constraints
Presence of Different Alternatives
c. Availability of alternatives i.e., different courses o action to choose from.
d. The objectives and constraints can be expressed in the form of linear
relation.
Regardless of the size or complexity, all LP problems ake the same form i.e. allocating
scarce resources among various competiting alternatives. Irrespective of the manner in
which one defines Linear Programming, a problem must h ve certain basic characteristics
before this technique can be utilized to find the opti l values.
The characteristics or the basic assumptions of linear programming are as follows:
The decision or activity variables refer to any activi es which are in competition with
other variables for limited resources. Examples of such activity variables are: services,
projects, products etc. These variables are most often inter-related in terms of utilization of
the scarce resources and need simultaneous solutions. is important to ensure that the
relationship between these variables be linear.
A Linear Programming problem requires a clearly defined, unambiguous objective
function which is to be optimized. It should be capable of being expressed as a linear
function of the decision variables. The single-objective optimization is one of the most
important pre-requisites of linear programming. Examples of such objectives can be: cost-
minimization, sales, profits or revenue maximization and the idle-time minimization etc.
These are the different kinds of limitations on the av ilable resources for e.g. important
resources like availability of machines, number of man hours available, production capacity
and number of available markets or consumers for finished goods are often limited even
for a big organization. Hence, it is rightly said that each and every organization functions
within overall constraints of both internal and extern l. These limiting factors must be capable
of being expressed as linear equations or in equations in terms of decision variables.
Different courses of action or alternatives should be vailable to the decision maker,
who is required to make the decision which is the most effective or the o timal. For example,
many grades of raw material may be available and the s e raw material can be purchased
from different supplier, the finished goods can be sol to various markets, production can
be done with the help of different machines.
NOTES
Non-Negative Restrictions
Linearity Criterion
Additively
Mutually Exclusive Criterion
Divisibility
Certainty
Finiteness
Since the negative value of (any) physical quantity has no meaning, therefore all the
variables must assume non-negative values. If some of he variables is unrestricted in sign,
the non-negativity restriction can be enforced by the lp of certain mathematical tools
without altering the original information contained in the problem
The relationship among the various decision variables st be directly proportional
to both the objective and the constraint and must be e pressed in terms of linear equations
or inequalities. For example, if one of the factor inputs (resources like material, labour,
plant capacity etc.) increases, then it should result a proportionate manner in the final
output. These linear equations and in equations can graphically be presented as a straight
line.
It is assumed that the total profitability and the tot amount of each resource utilized
would be exactly equal to the sum of the respective in ividual amounts. Thus the function
or the activities must be additive - and the interaction among the activities of the resources
does not exist.
All decision parameters and the variables are assumed o be mutually exclusive. In
other words, the occurrence of anyone variable rules out the simultaneous occurrence of
other such variables.
Variables may be assigned fractional values. i.e., the need not necessarily always be
in whole numbers. If a fraction of a product cannot be produced, an integer programming
problem exists.
Thus, the continuous values of the decision variables nd resources must be permissible
in obtaining an optimal solution.
It is assumed that conditions of certainty exist i.e., all the relevant parameters or
coefficients in the Linear Programming model are compl ely known and that they dont
change during the period. However, such an assumption y not hold good at all times.
Linear Programming assumes the presence of a finite nu ber of activities and constraints
without which it is not possible to obtain the best or the optimal solution.
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NOTES
2.3 ADVANTAGES AND LIMITATIONS OF LINEAR PROGRAMMING
Some of the advantages of Linear Programming approach
Scientific Approach to Problem Solving
Evaluation of all Possible Alternatives
Helps in Re-Evaluation
Quality of Decision
Focus on Grey Areas
Flexibility
Creation of Information Base
Now it is time to examine the advantages as well as the limitations of Linear
Programming.
Linear Programming is the application of scientific ap roach to problem solving. Hence
it results in a better and true picture of the problems which can then be minutely
analyzed and solutions ascertained.
Most of the problems faced by the present organizations are highly complicated which
cannot be solved by the traditional approach to decision making. The technique of
Linear Programming ensures that all possible solutions are generated out of which the
optimal solution can be selected.
Linear Programming can also be used in re-evaluation o a basic plan for changing
conditions. Should the conditions change while the plan is carried out only partially,
these conditions can be accurately determined with the help of Linear Programming
so as to adjust the remainder of the plan for best res s.
Linear Programming provides practical and better quality of decisions that reflect
very precisely the limitations of the system i.e., the various restrictions under which
the system must operate for the solution to be optimal. If it becomes necessary to
deviate from the optimal path, Linear Programming can easily evaluate the
associated costs or penalty.
Highlighting the grey area is the bottleneck of the production process and it is the
most significant merit of Linear Programming. During the periods of bottlenecks,
imbalances occur in the production department. Some of the machines remain idle for
long periods of time, while other machines are unable o meet the demand even at the
peak performance level.
Linear Programming is an adaptive and flexible mathematical technique and hence
can be utilized in analyzing a variety of multi-dimens onal problems quite successfully.
By evaluating the various possible alternatives in the light of the prevailing constraints,
Linear Programming models provide an important databas from which the allocation
of precious resources can be done rationally and judiciously.

NOTES
Maximum optimal Utilization of Factors of Production.
2.4 LIMITATIONS OF LINEAR PROGRAMMING
Linear Relationship
Constant Value of objective and Constraint Equations
No Scope for Fractional Value Solutions
Linear Programming helps in optimal utilization of var ous existing factors of production
such as installed capacity labour and raw materials etc.
Although Linear Programming is a highly successful too having wide applications in
business and trade for solving optimization problems, t it has certain demerits or defects.
Some of the important limitations in the application of Linear Programming are as follows:
Linear Programming models can be successfully applied nly in those situations where
a given problem can clearly be represented in the form of linear relationship between
different decision variables. Hence it is based on the implicit assumption that the objective
as well as all the constraints or the limiting factors can be stated in term of linear expressions
which may not always hold well in real life situations In practical business problems, many
objective function and constraints cannot be expressed linearly. Most of the business
problems can be expressed quite easily in the form of quadratic equation (having a
power 2) rather than in the terms of linear equation. ear Programming fails to operate
and provide optimal solutions in all such cases.
E.g. A problem capable of being expressed in the form f:
ax
2
+ bx + c = 0 where a>0 can not be solved with the help of Linear Programming
techniques.
Before a Linear Programming technique could be applied to a given situation, the
values or the coefficients of the objective function as well as the constraint equations must
be completely known. Further, Linear Programming assumes these values to be constant
over a period of time. In other words, if the values w to change during the period of
study, the technique of LP would loose its effectiveness and may fail to provide optimal
solutions to the problem. However, in real life practi al situations often it is not possible to
determine the coefficients of objective function and t constraints equations with absolute
certainty. These variables in fact may, lie on a probability distribution curve and hence at
best, only the likelihood of their occurrence can be p cted. Moreover often the value
changes due to extreme internal factors during the per d of study. Due to this, the actual
applicability of Linear Programming tools may be restricted.
There is absolutely no certainty that the solution to LP problem can always be
quantified as an integer quite often. Linear Programmi g may give fractional-varied answers,
DMC 1752
NOTES
High Degree of Complexity
Multiplicity of Goals
Flexibility
which are rounded off to the next integer. Hence, the ution would not be the optimal
one. For example, in finding out the number of men and machines required to perform a
particular job, a fractional solution would be meaning ss.
Many large-scale real life practical problems cannot be solved by employing Linear
Programming techniques even with the help of a compute , due to highly complex and
lengthy calculations. Assumptions and approximations a required to be made so that the
given problem can be broken down into several smaller roblems and, then solve separately.
Hence, the validity of the final result, in all such cases, may be doubtful.
The long-term objectives of an organization are not confined to a single goal. An
organization, at any point of time in its operations h a multiplicity of goals or the goals
hierarchy - all of which must be attained on a priorit wise basis for its long term growth.
Some of the common goals can be maximization or minimization, retaining
market share, maintaining leadership position and prov ding quality service to the consumers.
In cases where the management has conflicting, multipl goals, Linear Programming model
fails to provide an optimal solution. The reason being that under Linear Programming
techniques, there is only one goal which can be expressed in the objective function. Hence
in such circumstances, the situation or the given prob m has to be solved by the help of a
different mathematical programming technique called th Goal Programming.
Once a problem has been properly quantified in terms of objective function and the
constraint equations and the tools of Linear Programming are applied to it, it becomes very
difficult to incorporate any changes in the system arising on account of any change in the
decision parameter. Hence, it lacks the desired operat nal flexibility.
Linear Programming is a mathematical technique for gen rating and selecting the optimal
or the best solution for a given objective function. T chnically, Linear Programming may be
formally defined as a method of optimizing (i.e., maxi izing or minimizing) a linear function
for a number of constraints stated in the form of line equations.
Mathematically the problem of Linear Programming may be stated as that of the
optimization of linear objective function of the follo ng form:
Z = C
1
x
2
+ C
2
x
2
+ ..........C
i
x
i
+ ...........+ C
n
X
n
profit cost
NOTES
Subject to the Linear constrains of the form:
a
11
x
1
+ a
12
x
2
+ a
13
x
3
........+ a
1i
x
i
+ .............. + a
ln
x
n
b
1
a
j1
x
1
+ a
j2
x
2
+ a
j3
x
3
........+ a
ji
x
i
+.............. + a
j
n
x
n
bm
1
a
m
1
x
1
+ a
m
2
x
2
+ a
m3
x
3
+ .........+ a
mi
x
i
..........+ a
mn
x
n
b
m
These are called the non-negative constraints. From the above, it is clear that a LP
problem has:
i) Linear objective function which is to be maximized or inimized.
ii) Various linear constraints which are simply the algebr ic statement of the limits of
the resources or inputs at the disposal.
iii) Non-negatively constraints.
Linear Programming is one of the few mathematical tool that can be used to provide
solution to a wide variety of large, complex managerial problems.
For example, an oil refinery can vary its product-mix y its choice among the different
grades of crude oil available from various parts of the world. Also important is the process
selected since parameters such as temperature would also affect the yield. As prices and
demands vary, a Linear Programming model recommends wh h inputs and processes to
use in order to maximize the profits
Livestock gain in value as they grow, but the rate of in depends partially on the feed
choice of the proper combination of ingredients to maximize the net gain. This value can be
expressed in terms of Linear Programming. A firm which distributes products over a large
territory faces an unimaginable number of different ch ces in deciding how best to meet
demand from its network of go down and warehouses. Each warehouse has a very limited
number of items and demands often cannot be met from t nearest warehouse. If there
are 25 warehouses and 1,000 customers, there are 25,000 possible match ups between
customer and warehouse. LP can quickly recommend the s ipping quantities and destination
so as to minimize the cost of total distribution.
These are just a few of the managerial problems that h ve been addressed successfully
by LP. A few others are described throughout this text Project scheduling can be improved
by allocating funds appropriately among the most critical task so as to most effectively
reduce the overall project duration. Production planni over a year or more can reduce
costs by careful timing of the use of over time and in ntory to control changes in the size
of the workforce. In the short run, personnel work sch ules must take into consideration
not only the production, work preferences for day offs and absenteeism etc.
Besides recommending solutions to problems like these, LP can provide useful
information for managerial decisions that can be solved by Linear Programming. The
application, however, rests on certain postulates and tions, which have to hold
good for the optimality of the solution to be effective during the planning period.

DMC 1752
NOTES
2.5 APPLICATIONS OF LINEAR PROGRAMMINGTECHNIQUES IN
INDIAN ECONOMY
2.6 BUILDING LINEAR PROGRAMMING PROBLEMS
linear programming LP model
proportional objective function constraint
The various factors of productions such as
a. Skilled labour
b. Capital and
c. Raw material etc.,
are very precious and scarce for a country like India. The policy planner is, therefore faced
with the problem of scarce resource allocation to meet the various competiting demands
and numerous conflicting objectives. The traditional and conventional methods can no
longer be applied in the changed circumstances for solving this problem and are hence fast
losing their importance in the current economy. Hence, the planners in our country are
continuously and constantly in search of highly objective and result oriented techniques for
sound and proper decision making which can be effectiv at all levels of economic planning.
Non-programmed decisions consist of:-
a. Capacity expansion
i) Plant location
ii) Product line diversification
iii) Expansion
iv) Renovation and
v) Modernization etc.
On the other hand, the programmed decisions consist of budgeting, replacement,
procurement, transportation and maintenance etc. In these times, a number of new and
better methods, techniques and tools have been developed by the economists all over the
globe. All these findings form the basis of operations research. Some of these well-known
operations research techniques have been successfully pplied in Indian situations, such
as:
b. Business forecasting
i) Inventory models - deterministic and probabilistic
ii) Linear Programming
iii) Goal programming
iv) Integer programming and
v) Dynamic programming etc.
In building a (or briefly ) for a system, two crucial
assumptions must be valid. The is that the activity level
j
( = 1, 2 ) has a
contribution to the as well as in a . If and
first x j n
c
j
x
j
NOTES
per unit
discounts additivity
linear functions
Product Mix Model production
planning firm
resources
capacities
return
Linear Programming Problem LP
a
ij
x
j
i
th
c
j
a
ij
second
simple addition
x x x
n
n m
maximum available b b b
m
a
ij
i
th
unit j
th
c
j
n
x
j
j
th
j n
c x c x c
n
x
n
a x a x a
n
x
n
b
a x a x a
n
x
n
b
a
m
x a
m
x a
mn
x
n
b
m
x x x
n
x x x
n
divisible
x x x
n
m
a
a
a
m
a
a
a
m
a
a
a
mn
b
b
b
m
c c c
n
are the respective contributions in the objective and the constraint, the
contributions and are assumed constants for the system and must be known from
analysis of the actual system. The proportionality ass mption precludes economics of return
to scale or . The assumption is that of of the contributions.
The system must be such that the objective function and each of the constraint can be
obtained from the contributions by . In this way, the objective function and
each of the constraints become
1
,
2

.
As an example, consider the , applicable for
. Suppose that a production unit (or in the terminology of economics)
produces number of products utilizing number of (of its own or of others)
having
1
,
2
, . Let be the amount consumed
from the source for the production of a of the product which ensures (or
profit) . These data are supposed to be known from the cost an ysis for the production
unit and can be arranged as a table in the following m ner.
Given the data, it is required to find the level of pr ction of the products so that
the total return Z is maximum. If we suppose that the level of production is for the
product ( = 1, 2 ), then the mathematical problem of determining these owns
becomes the (also written again in short as ):
Maximize : z =
1 1
+
2 2
+ . . . +
s.t :
11 1
+
12 2
+ . . . +
1

1
21 1
+
22 2
+ . . . +
2 2
..
1 1
+
2 2
+ . . . +
1
,
2
, , 0.
If the system allows
1
,
2
to be numbers, then their values could be
integer, fractional and even theoretically any real number. This is obviously the case for
example, a paint manufacturer producing paints of diff ent colours and shades. There are
however several instances, like manufacture of televis on sets, music systems etc. of different
models in an electronic manufacturing company, where it is required that
1
,
2
, ,
must be integers, then this constraint also enters the list of constraints written above.
Product
Resource
1 2 . . . n
Available Capacity
1
2
.
.
11
21
.
.
1
12
22
.
.
2
. . .
. . .
. . .
. . .
. . .
1n
2n
.
.
1
2
.
.
Unit Return
1 2
. . .

DMC 1752
NOTES
activities
Remark 1.
2.7 STEPS IN FORMULATINGA LINEAR PROGRAMMING MODEL
Step I. Identification of the Decision Variables
Step II. Identification of the Constraints
Step III. Identification of the Objective
2.8 EXAMPLES
2.8.1 Example 1
In general, instead of manufacturer of certain products one can have certain other
of an organization which can be modeled on the linearity assumption. Evidently
the mathematical problem remains the same.
In many cases the available capacities are not simple constants but depend on
and time with associated costs. In such cases the above model cannot
be used.
As we have so far seen that linear programming is one the most useful techniques
for effective decision making. It is an optimization a proach with an emphasis on providing
the optimal solution for resource allocation.
How best to allocate the scarce organizational or national resources among different
competing and conflicting needs (or uses) forms the core of its working. The scope for
application of linear programming is very wide and it cupies a central place in many
diversified decisional problems. The effective use and application of linear programming
requires the formulation of a realistic model which represents accurately the objectives of
the decision making subject to the constraints in which it is required to be made.
The basic steps in formulating a linear programming mo l are as follows:
The decision variables (parameters) having a bearing on the decision at hand shall
first be identified, and then expressed or determined n the form of linear algebraic functions
or in equations.
All the constraints in the given problem which restric the operation of a firm at a given
point of time must be identified in this stage. Further these constraints should be broken
down as linear functions in terms of the pre-defined decision variables.
In the last stage, the objective which is required to optimized (i.e., maximized or
minimized) must be clearly identified and expressed in terms of the pre-defined decision
variables. With this background information, let us no try to formulate the given problem
as a linear programming problem.
:- High Quality Furniture Ltd. manufactures two products,
i) Tables and
ii) Chairs.
Both the products have to be processed through two mac nes:
i) Ml and
ii) M2
set-up takedown
NOTES
Solution.
Step I.
Step II.
Step III.
The total machine-hours available are:
i) 200 hours ofM1 and
ii) 400 hours of M2 respectively.
Time in hours required for producing a chair and a table on both the machines is as
follows:
Time in Hours
Profit from:-
i) Sale of table is Rs.50
and sale of chair is Rs.30
Determine optimal mix of tables and chair so as to maximized the total profit
contribution
Let x
1
=no. of tables produced and
x
2
=no. of chairs produced
The objective function for maximizing the profit is g en by
Maximize Z=50x1 +30x2 (objective function) (Since profit per unit from a table and
a chair is Rs. 50 and Rs. 30 respectively).
List down all the constraints.
i) Total time on machine M
1
cannot exceed 200 hours.
7x
1
+4x
2
200
(Since it takes 7 hours to produce a table and 4 hours to produce a chair on machine
M
1
)
ii) Total time on machine M
2
cannot exceed 400 hours
5x
1
+5x
2
400
(Since it takes 5 hours to produce both a table and a on machine M
2
)
Presenting the problem. The given problem can now be ulated as a linear
programming model as follows:
Maximize Z = 50x
1
+ 30x
2
Subject to: 7x
1
+4x
2
200
5x
1
+5x
2
400
Futher; x
1
, x
2
0
Machine Table Chair
M1 7 4
M2 5 5

DMC 1752
NOTES
2.8.2 Example 2
Solution.
Step 1
Step II
Step III Presenting the problem
2.8.3 Example 3.
(Since if x
1
and x
2
< 0 it means that negative quantities of products are being
manufactured which has no meaning).
: Alpha Limited produces and sells 2 different products under the brand
name black and white. The profit per unit on these products in Rs. 50 and Rs. 40
respectively. Both black and white employ the same manufacturing process which has a
fixed total capacity of 50,000 man-hours. As per the e mates of the marketing research
department of Alpha Limited, there is a market demand or maximum 8,000 units of black
and 10,000 units of white. Subject to the overall demand, the products can be sold in any
possible combination. If it takes 3 hours to produce one unit of black and 2 hours to
produce one unit of white, formulate the above as a li ar programming model.
Let x
1
, x
2
denote the number of units produced of products black and white
respectively.
: The objective function for maximizing the profit is ven by: maximize
Z= 50x
1
+ 40x
2
(objective function)
: List down all the constraints.
i) Capacity or man-hours constraint:
(Since it takes 3 hours to produce one unit of x
1
and 2 hours to produce 1 unit of x
2
and the total available man - hours are 50,000)
ii) Marketing constraints:
(Since maximum 8,000 units of x
1
can be sold) (Since maximum 10,000 units of x
2
can
be sold).
: . Now, the given problem can be written as a linear
programming model in the follows:
Maximize Z = 50x
1
+ 40x
2
Subject to: 3x
1
+2x
2
50,000
X
1
8000
X
2
10,000
Further; x
1
, x
2
0
(Since if x
1
, x
2
< 0, it means that negative Quantities of products are being manufactured -
which has no meaning)
Good Results Company manufactures and sells in the export market
three different kinds of products:
i) P
1
,
ii) P
2
and
iii) P
3

NOTES
Solution.
Step I
Step II
The anticipated sales for the three products are:
i) 100 units of P
1
,
ii) 200 units of P
2
and
iii) 300 units of P
3
.
As per the terms of the contract Good results must produce at least: -
i) 50 units of P
1
and
ii) 70 units of P
3
.
Following is the break - up of the various production mes:
Management is free to establish the production schedule subject to the above
constraints.
Formulate as a linear programming model assuming profi maximization criterion for
Good Results Company.
Let x
1
, x
2
, x
3
denote the desired quantities of products P
1
, P
2
and P
3
respectively.
. The objective function for maximizing total profits is given by:
Maximize Z =15x
1
+ 20x
2
+ 25x
3
. List down all the constraints.
The available production hours for each of the products must satisfy the following
criterion for each department:
i) 0.05x
1
+0.10x
2
+0.20x
3
40.00
Total hours available on product - wise basis in Depar ent A
ii) 0.06x
1
+0.12x
2
+0.09x
3
45.00
Total hours available on product - wise basis in Department B
iii) 0.07x
1
+0x
2
+0.07x
3
50.00
Total hours available on product - wise basis in Department C
Product
Production Hours
per Unit
Department Department Department Department Unit
(A) (B) (C) (D) Profit
P
1
0.05 0.06 0.07 0.08 15
P
2
0.10 0.12 -- 0.30 20
P
3
0.20 0.09 0.07 0.08 25
Available
hours
40.00 45.00 50.00 55.00
DMC 1752
NOTES
Step III:
2.8.4 Example 4
iv) 0.08x
1
+0.30x
2
+0.08x
3
55.00
Total hours available on product wise basis in Department D
v) 50 x
1
100
Minimum 50 units of P1 must be produced subject of maximum of 100 units.
vi) 0 x
2
200
Maximum units of P2 that can be sold is 200 units.
vii) 70 x
2
300
inimum 70 units of P3 must be produced subject to a ma mum of 300 units
viii.) Further, x
1
, x
2
, x
3
0
Since negative values of P
1
, P
2
and P
3
has no meaning
Presenting the Problem
The given problem can be reduced as a LP model as under:
Maximize: Z=15x
1
+ 20x
2
+ 25x
3
Subject to: 0.05x
1
+0.10x
2
+0.20x
3
40.00
0.06x
1
+0.12x
2
+0.09x
3
45.00
0.07x
1
+0x
2
+0.07x
3
50.00
0.08x
1
+0.30x
2
+0.08x
3
55.00
50 d x
1
100
0 d x
2
200
70 x
2
300
x
1
, x
2
, x
3
0
. The management of Surya Chemicals is considering the optimal mix of
two possible processes. The values of input and output for both these process are given as
follows:
Maximum:
i) 500 units of Input I
1
and 300 units of I
2
,
ii) 300 units of I
2
are available to Surya Chemicals in the local market.
Process Units Inputs Units Outputs
I
1
I
2
O
1
O
2
X 2 6 3 7
Y 4 8 5 9

NOTES
Solution
Step I.
Step II
Step III
The forecasted demand for outputs O
1
and O
2
are at least:
i) 5,000 units and
ii) 7,000 units respectively.
The respective profits from process X and Y are:
i) Rs. 1,000 and
ii) Rs. 2,000 - per production run.
Formulate the above as a linear programming model.
. Let x
1
, x
2
represent the number of production runs of process x d y respectively.
The objective function for maximizing the total profits from both the process is
given by:
Maximize Z 1000x
1
+ 2000x
2
. List down all the constraints
i) 2x
1
+ 4x
2
500
Maximum amount of input I
1
available for process x and y is 500 units
ii) 6x
1
+ 8x
2
300
Maximum amount of input I
2
available for process x and y 300 units
iii) 3x
1
+ 5x
2
5,000
Since market requirement is to produce at least 5000 units of O
1
iv) 7x
1
+ 9x
2
7,000
Since market requirement is to produce at least 7000 units of O
2
Further: - x
1,
x
2
0 as always.
. Presenting the model.
Now, the current LP model can be presented as:
Maximize Z=1000x
1
+2000x
2
Subject to: 2x
1
+4x
2
500
6x
1
+8x
2
300
3x
1
+5x
2
5,000
7x
1
+9x
2
7000
x
1
, x
2
0
DMC 1752
NOTES
2.8.5 Example 5
Solution
Step 1
Step II
Inputs Required Product Profit
: Chocolate India Ltd. produces three varieties of Chocolates
i) Hard,
ii) Mild and
iii) Soft
from three different inputs I
1
, I
2
and I
3
.
One unit of Hard requires 2 units of I
1
and 4 unit of I
2
. One unit of mild requires 5
units of I
1
, 4 units of I
2
and 3 units of I
3
and one unit of soft requires 10 units of I
1
and 15
units of I
3
. The total available inputs in the companys warehouse is as under:
I
3
- 50 units
I
2
- 400 units
I
1
- 100 units
The profit per unit for hard, mild and soft are
i. Rs. 30 and
ii. Rs. 20
iii. Rs. 40 respectively.
Formulate the problem so as to maximize the total prof t by using linear programming.
. At the beginning, it is better to present the problem in a tabular form
Let x
1
, x
2
and x
3
denote the no. of units of the three varieties of cho olate - Hard, mild
and soft respectively.
The objective function for maximizing the profit is:
Maximize Z = 30x
1
+ 20x
2
+ 40x
3
List down all the constraints:
i.) 2x
1
+5x
2
+10x
3
100
(Since Input I
1
required for the three products is 2, 5 and 10 units respectively
subject to a maximum of 100 units).
ii.) 4x
1
+4x
2
+0x
3
400
(Since input I
2
required for the three products is 4,4 and 0 units respectively
I
1
I
2
I
3
(Rs. Per unit )
Hard 2 4 -- 20
Mild 5 4 3 30
Soft 10 -- 15 40
Maximum availability of inputs 100 400 50

NOTES
Step III
2.9 EXERCISES
Food value (gm) per 100 gm Food items
Carbohydrates Proteins Fats
Cost per 100
gm (Rs.)
iii.) 0x
1
+3x
2
+15x
3
50
(Since input I
2
required for the three products is 0,3 and 15 units respectively
. Presenting the problem. The given problem can now be formulated as a linear
programming model as follows:
Maximize Z = 30x
1
+ 20x
2
+ 40x
3
Subject to: 2x
1
+5x
2
+10x
3
100
4x
1
+4x
2
+0x
3
400
0x
1
+3x
2
+15x
3
50
Further:x
1,
x
2
, x
3
0
1. A medical expert suggests that it is necessary for an dult to consume at least 200
gm carbohydrate, 50 gm protein and 35 gm fat daily. Considering a person has
only three food items, Rice, Vegetables and Fish with ood value and cost per 100
gm is given in the following table:
The consumption of rice must not exceed 200 gm a day. ormulate the problem as a
linear program to determine the requirement of the foo item at least cost.
[
1
Rice,
2
Vegetables,
3
Fish 100gm each.
Minimize: z = 2
1
+ 1.5
2
+ 7
3
,
s.t: 65
1
+ 40
2
+ 12
3
200,
7
1
+ 9
2
+ 25
2
50,
3
1
+ 4
2
+ 32
2
35,
1
2,
1
,
2
,
3
0]
2. The manufacturer of formulated medicines wants to prepare production plan for
two medicines A and B every day. The market demand for A is at least one and
half times that of B but the rate of bottling A to tha of B is 1 : 2 and there must be
an inventory of 500 bottles of A at the beginning of e ery day. There is also storage
limitation of the bottles at 8000. The profits on selling medicines A and B are
respectively Rs. 6 and Rs. 8. Formulate the problem as L.P.
Rice
Vegetables
Fish
65
40
12
7
9
25
3
4
32
2.00
1.00
7.00

x x x
x x x
x x x
x x x
x x x
x x x x
DMC 1752
NOTES
Machine Number of 200 ml
bottles per min.
Number of jumbo
bottles per min.
[
1
A,
2
B (in thousands).
Maximize: z = 6000
1
+ 8000 ,
s.t.:
1
(3/2)
2
,
2
1
-
2
= const. 1,
1
+
2
8,
1
,
2
0].
3. A soft drink manufacturer has two machines A and B for bottling 200ml and jumbo
sized bottles. The rates of bottling are
The machines can be run for 8 hours 5 days a week. The market demands for two
types of bottles are at most 25000 and 8000 per week and the profits are 15 paise
and 75 paise per bottle. Formulate this as L.P for determining number of bottles to
be manufactured, of each type per week for maximum tot profit.
[
1
200 ml bottles,
2
jumbo bottles].
Maximize: z = .15
1
+.75
2
, s.t.: time constraints
1
/100 +
2
/40 8 X 60 X 5 =
2400,
1
/ 60 +
2
/ 75 2400, market demands 0
1
2500, 0
2
8000,
1
,
2
integers 0].
4. A Television manufacturer produces BandW and color sets and sells them at a
profit of Rs. 500 and Rs. 1500 respectively on each set. The time required for
assembling a color set is 5 hours and decorating it is 1 hour, while the respective
times for a BandW set are 2 hours and 45 minutes. The 12
assemblers and 4 decorators working 8 hours per day. Formulate the problem as
L.P. so that the manufacturer makes maximum profit by elling all models produced
in a month.
[
1
- BandW set,
2
color set.
Maximize: z = 500
1
+ 1500
2
,
s.t.: 2
1
+ 5
2
2880,
(3/4)
1
+
2
960,
1
,
2
integers 0].
A
B
100
60
40
75
x x
x x
2
x x
x x
x x
x x
x x
x x x x
x x x x x
x
x x
x x
x x
x x
x x

NOTES
6.
Requirement per unit
Raw Material
I II III
Availability
Activity Model I Model II Model III Available Time
(hours)
5. A manufacturers produces three models I, II, III of a rtain product every week.
He uses two types of raw materials A and B; the per unit requirement for the three
models are
The labour time per unit of model I is twice that of I and three times that of III. The
entire labour force of the factory can produce the equ lent of 2000 units of model
I. The profit per unit of models I, II, III are Rs. 60, 40 and 100 respectively. Formulate
the problem.
[
1
I,
2
II,
3
III.
Maximize: z = 60
1
+ 40
2
+ 100
3
2000,
s.t.: 2
1
+ 3
2
+ 5
3
5000,
4
1
+ 2
2
+ 7
3
6000,
1
+ (1/2)
2
+ (1/3)
3
2000,
1
500,
2
500,
3
375, integer
1
,
2
,
3
0].
A manufacturer produces three models I, II, III of a p which require first
machining and then assembling. The time (hours) required and the labour cost
(Rs.) per machine are as follows:
The available cash to pay labour is Rs.1, 20,000. If t selling price of models I, II,
III are Rs.4000, Rs.7500, and Rs.12600; find how the manufacturer can make
maximum return.
[
1
- I,
2
- II,
3
- III.
Maximize z = (4000 - 2000)
1
+ (7500 - 4500)
2
+ (12600 - 8000)
3
= 2000
1
+ 3000
2
+ 4600
3
,
s.t.: 12
1
+15
2
+ 16
3
3000, 3
1
+ 4
2
+ 6
3
1100, 2000
1
+ 4500
2
+
8000
3
120000,
1, 2, 3
integers 0].
A
B
2
4
3
2
5
7
5000
6000
Minimum Demand 500 500 375
Machining
Assembly
12
3
15
4
16
6
3000
1100
Labour cost 2000 4500 8000
x x x
x x x
x x x
x x x
x x x
x x x x x x
x x x
x x x x
x x
x x x x x x x x
x
x x x
DMC 1752
NOTES
7. A woman worker of a cooperative has two types of job: spinning thread and
(ii) dyeing the spun thread, producing a unit of each r hour. She is paid Rs.2 per
unit for spinning and Rs.5 for dyeing and wants to ear not less than Rs.18 per day
working for no more than 6 hours. The cooperative want that each day the spun
thread should not exceed the thread consumed in dyeing by 2 units. If the selling
profit is Rs.3 per unit for spinning and Rs.7 per unit for dyeing, formulate the L.P
for determining the units the woman should spin and dye each day to make
maximum profit for the cooperative.
Try to solve the problem by trial.
[Spinning
1
units, dyeing
2
units.
Maximize z = 3
1
+ 7
2,
s.t.: 2
1
+ 5
2
18,
1
+
2
6,
0
1
-
2
2,
1
,
2
integers 0.
Solution:
1
= 4,
2
=2, z
max
= Rs.26].
8. A farmer has 100 acre land on which he wants to grow tomatoes, cabbages and
radishes. The average yield per acre is 2000 kg of tomatoes, 3000 heads of
cabbage and 1000 kg of radishes. The price he can obtain is Rs.3 per kg of
tomatoes, Rs.1 per head of cabbage and Rs.2 per kg of cost of
fertilizer is Rs.1.50 per kg and the amount required per acre is 100 kg for tomatoes
and cabbage and 50 kg for radishes. Labour required for sowing, cultivating and
harvesting are 5 man-days for tomatoes and radishes an 6 man-days for cabbages.
A total of 400 man-days are available at Rs.40 per man day. Formulate the problem
as an L.P for farmers maximum net profit.
[
1
acres-tomatoes,
2
acres-cabbages,
3
acres-radishes. Maximum: z = 6000
1
+ 3000
2
+ 2000
3
1.5 X (100
1
+ 100
2
+ 50
3
) 40 X (5
1
+ 6
2
+ 5
3
) =
5650
1
+ 2610
2
+ 1725
3
, s.t.: acreage constraint
1
+
2
+
3
100, man-
days constraint 5
1
+ 6
2
+ 5
3
400,
1
,
2
,
3
0].
9. A farmer wants to raise an orchard of mangoes and guav on three farms 1,2 and
3 with usable acreage 400, 600 and 300 respectively. T water available in each
farm is 2000 units and the consumption per acre are 5 ts for mangoes and 4
units for guavas. In order to maintain a uniform work d among the farms the
fraction of usable average must be kept the same at ea farm. If the expected
profit per acre for mangoes is Rs. 400 and for guavas 300, the farmer wants
to know how many acres of each crop should be planted each of the farms in
order to have maximum profit.
x x
x x
x x
x x
x x
x x
x x
x x x x
x x x x x x x x
x x x x x x
x x x x x x

NOTES
Holds Weight Capacity (tons) Volume Capacity (m
3
)
Commodity Weight (tons) Volume per
ton (m
3
)
Profit per ton
(Rs.)
Investment
Alternatives
Return
(percent)
Number of
Years
Risk

= =
+ =

3
1
3
1
gi mi
300 400 z : Maximize trees. guava and mangos for average x , [x
s.t.:
m1
+
g1
400,
m2
+
g2
600,
m3
+
g3
300, 5
mi
+ 4
gi
2000 for = 1, 2,
3, (
m1
+
g1
) / 400 = (
m2
+
g2
) / 600 = (
m3
+
g3
) / 300,
mi
0.
gi
0 for =1,2,3].
10. Formulate the following LP. A ship has three cargo holds forward, centre and
aft. The capacity limits are
The following cargoes are offered: the ship owner may accept all or any part of each
commodity
In order preserve the trim of the ship, the weight in ach hold must be proportional to
the capacity in tons. The cargo is to be distributed so as to maximize profit.
[
1F
,
1C
,
1A
weight (ton) loaded in forward, centre and aft etc., Maximize z =
60 (
1F
+
1C
+
1A
) + 80(
2F
+
2C
+
2A
) + 50(
3F
+
3C
+
3A
), s.t.:
1F
+
2F
+
3F
2000,
1C
+
2C
+
3C
3000,
1A
+
2A
+
3A
1500,
1F
+
1C
+
1A
6000,
2F
+
2C
+
2A
4000,
3F
+
3C
+
3A
2000, 6
1F
+ 5
2F
+ 25
3F
10000, 6
1C
+ 5
2C
+ 25
3C
14000, 6
1A
+ 5
2A
+ 25
3A
3000, (
1F
+
2F
+
3F
) / 2000 = (
1C
+
2C
+
3C
) / 3000 = (
1A
+
2A
+
3A
) / 1500,
1F
,
1C
, x
1A
etc.
0].
11. (Investment Model) On retirement an employee wants to vest his retirement
benefits (provident fund, gratuity etc.) in four inves ment alternatives on a ten year
horizon. The alternatives involve risks which he subjectively marks on a five point
scale. The data are given below:
Forward
Centre
Aft
2000
3000
1500
10000
14000
3000
A
B
C
6000
4000
2000
6
5
25
60
80
50
Term Deposits
NSC
Equity Shares
Real Estate
9.5
10.5
20
25
2
6
5
10
1
0.5
7
2
i
gi
i
mi
x x
x x x x x x x x i
x x x x x x x x i
x x x
x x x x x x x x x x x
x x x x x x x x x x
x x x x x x x x x
x x x x x x x x
x x x x x x x x x
DMC 1752
NOTES
(Investment Model)
A B C D
What percentage of his retirement benefits should he invest in the four schemes for
highest return if he decides not to take risks exceeding 3 and invest at least 30% in
real estate?
[
1
,
2
,
3
,
4
respective percentages of total amount.
Maximize: z = 0.095
1
+ 0.105
2
+ 0.20
3
+ 0.25
4
,
s.t.: 2
1
+ 6
2
+ 5
3
+10
4
10,
1
+ 0.5
2
+ 7
3
+ 2
4
3,
4
0.30,
1
,
2
,
3
,
4
0].
12. A chartered accountant wants to determine best investment
portfolio in four proposals A, B, C, D. The portfolio ta are as follows:
The amount available is Rs 25 lakhs. He decides not to invest more than Rs 5 lakhs
in A and B combined and for the sake of diversity at least 100 shares of each stock
should be purchased. Also, the weighted risk
es alternativ the all in investment Total
) j e alternativ of Risk ( x ) j e alternativ in Investment (
4
1 J
Should not exceed 0.10. How to maximize the rupee return (based on current price,
annual growth rate and dividends per share) at the end of 1 year?
[
1
no. of shares of A etc.
Maximize z = (80 X 0.08 + 4)
1
+ (100 X 0.07 + 4.50)
2
+ (160 X 0.10 + 7.50)
3
+ (120 X 0.12 + 5.50)
4
,
s.t.: 80
1
+ 100
2
+ 160
3
+ 120
4
25,00,000,
80
1
+ 100
2
5,00,000,
1
100,
2
100,
3
> 0,
4
> 0].
Current price per share (Rs.)
Projected annual growth rate per year
Projected annual dividend per share (Rs.)
80
0.08
4.00
100
0.07
4.50
160
0.10
7.50
120
0.12
5.50
Risk in turn 0.05 0.03 0.10 0.20
x x x x
x x x x
x x x x
x x x x
x
x x x x
x
x x x
x
x x x x
x x
x x x x

NOTES
(Advertisement Model)
(Warehousing Model)
S
13. A firm wants to expend Rs. 10 lakhs for advertising one
of its products on radio, TV, and a newspaper. It can radio time for
Rs.2000 per spot, TV time for Rs.10,000 per spot and n paper advertisement
for Rs. 4000 per insertion. The payoff from the advert ement is a measure of the
audience reached. Based on past experience a radio spot is given 40 audience
points, a TV spot 160 points and a newspaper insertion 300 points. The firm
wishes to determine the money to allocate to each medi so that the number of
total audience points is maximized. Based on subjective consideration, the firm
decides not to spend more than Rs.2.5 lakhs on radio and at least Rs.4 lakhs on
TV. Also, the firm wants to keep newspaper allocation exceed 50% of
allocation to TV. Formulate the problem as an LP.
[
1
radio,
2
TV,
3
newspaper (in lakhs of Rs.).
Maximize: z = (40/200) + (160/10000) + (300/4000)
3
,
s.t.:
1
+
2
+
3
= 10,
1
2.5,
2
4,
3
(1/2)
2
0,
1
,
2
,
3
0].
14. A warehouse has a fixed capacity of a commodity. The
manager buys and sells the stock at the intervals of periods (say weeks).
Assuming that in the period constant unit and are
and and unit is ; find how the manager should operate, assuming
that the warehouse is empty at the end.
[ level of stock at the beginning of period, , number of units purchased
and sold. Maximize: z = ( ), s.t.:
+1
= + , ( = 1,2, , -1),
=1
, ( = 1, 2, , ), + = 0].
x x x
x
1
x
2
x
x x x
x x
x x
x x x
C
n n
j
th
selling purchasing prices p
j
q
j
holding price r
j
x
j
j
th
y
j
z
j
n
p
j
z
j
q
j
y
j
r
j
x
j
x
j
x
j
y
j
z
j
j n
j
x
j
C j n x
n
y
n
z
n

DMC 1752
NOTES
CHAPTER 3
GRAPHICAL SOLUTION
3.1 GRAPHICALAPPROACH FOR GENERATING OPTIMAL
SOLUTIONS TO A LP PROBLEM.
Step I
Step II
Step III
It is important to understand the Graphical Method of lution in Linear Programming
and find out as to how the graphical method of solution be used to generate optimal solution
to a Linear Programming problem.
Once the Linear programming model has been formulated the basis of the given
objective and the associated constraint functions, the next step is to solve the problem and
obtain the best possible or the optimal solution vario s mathematical and analytical techniques
can be employed for solving the Linear-programming mod .
The graphic solution procedure is one of the methods of solving two variable linear
programming problems. It consists of the following steps:-
Defining the problem. Formulate the problem mathematically. Express it in terms of
several mathematical constraints and an objective func on. The objective function relates
to the optimization aspects such as maximization or mi imization criterion.
Plot the constraints graphically. Each inequality in the constraint equation has to be
treated as an equation. An arbitrary value is assigned to one variable and the value of the
other variable is obtained by solving the equation. In the similar manner, a different arbitrary
value is again assigned to the variable and the corresponding value of other variable is
easily obtained.
These 2 sets of values are now plotted on a graph and ected by a straight line.
The same procedure has to be repeated for all the constraints. Hence, the total straight
lines would be equal to the total no.of equations, eac straight line representing one constraint
equation.
Locate the solution space. Solution space or the feasi region is the graphical area
which satisfies all the constraints at the same time. h a solution point always
occurs at the corner. Points of the feasible region is determined as follows:
(x, y)
NOTES
Step IV
Important terms used in linear programming.
Important Theorems
a. For greater than and greater than or equal to constraints (i.e.), the feasible
region or the solution space is the area that lies abo the constraint lines.
b. For Less than and Less than or equal to constraint (i.e. ). The feasible region
or the solution space is the area that lies below the onstraint lines.
Selecting the graphic technique. Select the appropriate graphic technique to be used
for generating the solution. Two techniques via: Corner Point Method and Iso-profit (or
Iso-cost) method may be used we give below both the te niques, however, it is easier to
generate solution by using the corner point method.
a. Corner Point Method.
i) Since the solution point (x,y) always occurs at the corner point of the
feasible or solution space, identify each of the ext e points or corner
points of the feasible region by the method of simulta eous equations.
ii) By putting the value of the corner points co-ordinates [e.g. (2, 3)] into the
objective function, calculate the profit (other cost) each of the corner
points.
iii) In a maximization problem, the optimal solution occurs at that corner point
which gives the highest profit.
iv) In a minimization problem, the optimal solution occurs at that corner point
which gives the lowest profit.
b. Iso-Profit (or Iso-Cost) method. The term Iso-profit signifies if is that any
combination of points produces the same profit as any other combination on the
same line. The various steps involved in this method a given below.
c. Selecting a specific figure of profit or cost, an iso-profit or iso-cost line is drawn
up so that it lies within the shaded area.
d. This line is moved parallel to itself and farther or c ser with respect to the origin till
that point after which any further movement would lead to this line falling totally
out of the feasible region.
e. The optimal solution lies at the point on the feasible region which is touched by the
highest possible iso-profit or the lowest possible iso-cost line.
f. The co-ordinates of the optimal point (x,y) are calculated with the help of
simultaneous equations and the optimal profit or cost as curtained.
While obtaining the optimum feasible solution to the l near programming problem, the
statement of the following four important theorems are used:-
DMC 1752
NOTES
Theorems I
Theorems II
Theorem III
Theorem IV
Important Terms
i. Solution
ii. Feasible Solution
iii. Basic Solution
iv. Basic Feasible Solution
The feasible solution space constitutes a convex set.
Within the feasible solution space, feasible solutions correspond to the extreme (or
Corner) points of the feasible solution space.
There are a finite number of basic feasible solutions ith the feasible solution space.
The optimum feasible solution, if it exists. It will o ur at one, or more, of the extreme
points that are basic feasible solutions.
Note. Convex set is a polygon Convex implies that if any two points of the polygon are
selected arbitrarily then straight line segment joinin these two points lies completely within
the polygon. The extreme points of the convex set are basic solution to the linear
programming problem.
Some of the important terms commonly used in linear programming are disclosed as
follows:
Values of the decision variable = 1, 2, 3, in) satisfying the constraints of a general
linear programming model is known as the solution to that linear programming model.
Out of the total available solution a solution that also satisfies the non-negativity
restrictions of the linear programming problem is call a feasible solution.
For a set of simultaneous equations in Q unknowns, a olution obtained by setting (P
- Q) of the variables equal to zero and solving the remaining P equation in P unknowns is
known as a basic solution.
The variables which take zero values at any solution are detained as non-basic variables
and remaining are known as basic variables, often called basic.
A feasible solution to a general linear programming pr blem which is also basic solution
is called a basic feasible solution.
x ;( i
NOTES
v. Optimal Feasible Solution
vi. Degenerate Solution
3.2 EXAMPLES
3.2.1 Example:1
Solution
Step I
Any basic feasible solution which optimizes (ie; maxim e or minimizes) the objective
function of a linear programming modes known as the op feasible solution to that
linear programming model.
A basic solution to the system of equations is termed s degenerate if one or more of
the basic variables become equal to zero.
X Ltd wishes to purchase a maximum of 3600 units of a product two types of
product a and b are available in the market. Product a occupies a space of 3 cubic
feet and cost Rs. 9 whereas occupies a space of 1 cubic feet and cost Rs. 13 per unit. The
budgetary constraints of the company do not allow to s more than Rs. 39,000. The
total availability of space in the company goes down is 6000 cubic feet. Profit margin of
both the product and its Rs. is 3 and 4 respectively. ormulate as a linear programming
model and solve using graphical method. You are required to ascertain the best possible
combination of purchase of a profit and so that the total profits are maximized.
Let x
1
= no. of units of product a and
x
2
=no. of units of product b
Then the problem can be formulated as a P model as follows:-Objective function,
Maximize Z = 3x
1
+ 4x
2
Constraint equations: x
1
+ x
2
3600(Maximum units constraints)
3x
1
+ x
2
6000 (Storage area constraint)
9x
1
+ 13x
2
39000 (Budgetary constraint)
x
1
, x
2
0
Treating all the constraints as equality, the first constraint is
x
1
+ x
2
= 3600
Put x
1
= 0 => x
2
=3600 and the point is (0, 3600)
DMC 1752
NOTES
Step II
Step III
Step IV
Step V
Step VI
Step VII
Step VIII
Finding Optimal Solution
Put x
2
= 0 => x
1
= 3600 and the point is (3600, 0)
Draw the graph with x
1
on x-axis and x
2
on y-axis as shown in the figure.
Determine the set of the points which satisfy the cons aint:
x
1
+ x
2
= 3600
This can easily be done by verifying whether the origi (0, 0) satisfies the constraint. Here,
0+0 = 3600. Hence all the points below the line will satisfy the constraint.
The 2
nd
constraint is: 3x
1
+ x
2
6000
Put x
1
=0 => x
2
= 6000 and the point is (0, 6000)
Put x
2
=0 => x
1
= 2000 and the point is (2000, 0)
Now draw its graph.
Similar to step II, determine the set of points which atisfy the constraint
3x
1
+ x
2
6000. At origin 0 +0 < 6000 Hence, all the points below the line will satisfy the
constraint.
The 3
rd
constraint is: 9x
1
+ 13 x
2
39000
Put x
1
= 0 => x
2
= 3000 and the point is (0, 3000) Put x
2
= 0 => x
1
=13000/3 and the point
is (13000/3, 0) Now draw its graph.
Again the point (0, 0) i.e. the origin satisfies the constraint 9x
1
+ 12x
2
39000. Hence,
all the points below the line will satisfy the constraint.
The intersection of the above graphic denotes the feasible region for the given problem.
Always keep in mind two things: -
i. For constraint the feasible region will be the area, whic lies above the constraint
lines, and for constraints, it will lie below the constraint lines. would be
useful in identifying the feasible region.
ii. According to a theorem on linear programming, an optimal solution to a problem
(if it exists) is found at a corner point of the solut space.

NOTES
Step IX
Corner Point W-Ordinates Objective Func Value
At corner points (O, A, B, C), find the profit value f the objective function that
point, which maximizes the profit is the optimal point.
For point B, solve the equation 9x
1
+ 13x
2
39000
And 3x
1
+ x
2
6000 to find point B
ie, 3x
1
+ x
2
= 6000 (1)
9x
1
+ 13x
2
= 39000 (2)
Multiply equ. (1) by 3 on both sides:
9x
1
+ 13x
2
= 39000 (3)
9x
1
+ 3x
2
= 18000 (4)

-10x
2
= -21000
x
2
= 2100
Z=3x
1
+ 4x
2
O (0,0) Z=0+0 0
A (0,3000) Z=0+4x3000 12,000
C (2000,0) Z=0+3x2000+0 6,000
(0, 0)
2000
3600 3900/9
6000
3000
3600
9
X1
+13
X2
=39,000
X
1
B
3
X1
+
X2
=6000
X1
+
X2
=3900
X
2
O
C
A
N
o
.

o
f

u
n
i
t
s
DMC 1752
NOTES
Result
3.2.2 Example:2
Solution
Put the Value of x
2
in first equation:
=> x
1
= 1300
At point (1300,2100)
Z = 3x
1
+ 4x
2
= 3x1300+ 4x2100
= 12,300 which is the maximum value.
The optimal solution is:
No of units of product a = 1300
No of units of product = 2100
Total profit = 12300 which is the maximum.
Lets consider some more examples.
Great Well Ltd. produces and sells two different types of products P1 and P2 at a
profit margin of Rs. 4 and Rs. 3 respectively. The ava ability of raw materials the maximum
no of production hours available and the limiting fact r of P2 can be expressed in terms of
the following in equations:
4x
1
+ 2x
2
10
2 x
1
+ 8 / 3 x
2
8
x
2
6
x
1
, x
2
0
Formulate and solve the LP problem by using graphical hod so as to optimize
both P
1
and P
2
Objective:
Maximize Z = 4x
1
+ 3x
2
Since the origin (0, 0) satisfies each and every constraint, all points below the line will
satisfy the corresponding constraints.

NOTES
Consider constraints as equations and plot then as under:
The area under the curve OABC is the solution space. The constraint x
1
=6 is not
considered since it does not contain the variable x
2
.
Getting optimal solution.
Point B is the intersection of the curves 4x
1
+ 2x
2
= 10 and 2x
1
+8/3
x
2
= 8
Solving as system of simultaneous equation:
Point B is ( 8/5, 9/5)
Z = 4x
1
+ 3x
2
= 4(8/5)+ 3(9/5)= 59/5
4x
1
+2x
2
=10
2x
1
+8/3x
2
=8
5
A
X
2
X
1
=6
X
1
6
C 5/2
O
(0, 0)
B
3
4
4x1+2x2 =10
put x
1
= 0 =>x=5 and the point is (0,5) (1)
Put x2 = 0 =>x=5/2 and the point is ( 5/2, 0)
2x
1
+8/3x
2
=8 (2)
put x1 = 0 => x2 =3 and the point is ( 0, 3)
put x2 = 0 =>x1 =4 and the point is ( 4, 0)
x
1
= 6 (3)
DMC 1752
NOTES
Result
Remarks
3.2.3 Example:3
Solution
Step 1
Mathematical formulation of the problem
Nutrient Type Nutrient Constituents Minimum nutrient
Decision
Variables
Number of
Product
Type of Nutrient
Constituent
Cost of
Product
The optimal solution is:
No. of units of P1= 8/5
No. of units of P2 = 9/5
Total profit = 59/5
. Since 8/5 and 9/5 units of a product cannot be produ hence these values
must be rounded off. This is the limitation of the lin r programming technique.
Fresh Products Ltd. is engaged in the business of breading cows quits farm. Since it
is necessary to ensure a particular level of nutrients in their diet, Fresh Product Ltd. Buys
two products P1 and P2 the details of nutrient constituents in each of which are as follows:
The cost prices of both P
1
and P
2
are Rs. 20 per unit and Rs. 40 per unit respectively.
Formulate as a linear programming model and solve graphically to ascertain how
much of the products P
1
and P
2
must be purchased so as to provide the cows nutrients not
less then the minimum required?
Let x
1
and x
2
be the number of units of product P
1
and P
2
. The objective is to determine
the value of these decision variables which yields the minimum of total cost subject to
constraints. The data of the given problem can be summarized as below:
The above problem can be formulated and follows: Minimize Z =20x
1
+ 40x
2
subject
to the constraints:
in the product requirements
P
1
P
2
A 36 6 108
B 3 12 36
C 20 10 100
A B C
x
1
1 36 3 20 20
x
2
2 6 12 10 40
Min.
Requirement
108 36 100
NOTES
Step 2
Step 3
Step 4
Corner points Co-ordinates of Objective function Value
Solution Space (Unbounded)
Graph the Constraints Inequalities. Next, we construct the graph by drawing horizontal
and vertical axes. x
1
axes in the Cartesian X
1
O X
2
plane. Since any point satisfying the
conditions x
1
0 and x
2
0 lies in the first quadrant only, search for or the desired pair
(x
1
, x
2
) is restricted to the points of the first quadrant only.
The constraints of the given problem are plotted as de ribed earlier by treating them
as equations: 36x
1
+ 6x
2
= 108;3x
1
+ 12x
2
= 36; and 20x
1
+ 10x
2
= 100
Since each of them happened to be greater than or equ to type, the points ( x
1
,x
2
)
satisfying them all will lie in the region that falls wards the right of each of these straight
lines. The solution space is the intersection of all t se regions in the first quadrant.
Locate the solution point. The solution space is open B, P, Q and C as lower
points.
Value of objective function at corner points.
B (0, 18)
X2
18
16
14
12
10
8
6
4
2
0
2 4 6 8 10 12 14
A (0, 3) E (5, 0)
P (10, 0)
D (0, 3)
Q (4, 12)
C (12, 0)
X1
Solution Space (Unbounded)
Corner Points (x
1
,x
2
) Z=20x
1
+40x
2
B (0,18) 20(0) + 40(18) 720
P (2,6) 20(2) + 40(6) 280
Q (4,2) 20(4) + 40(2) 160
C (12,0) 20(12) + 40(0) 240

DMC 1752
NOTES
Step 5
3.3 LIMITATIONS OF THE GRAPHICAL METHOD
3.4 EXERCISE
3.4.1
3.4.2
Raw Materials Product
Optimum value of the objective function. Here, we find that minimum cost of Rs. 160
is found at point Q (4, 2), i.e., x
1
= 4 and x
2
= 2
Hence the first should purchase 4 units of product P
1
and 2 units of product P
2
in
order to maintain a minimum cost of Rs. 160.
Once a Linear programming model has been constructed on the basis of the given
constraints and the objective function, it can easily e solved by using the graphical method
and the optimal solution can be generated.
However, the applicability of the graphical method is ry limited in scope. This is due
to the fact that it is quite simple to identify all the corner points and then tests them for
optimality-in the case of a two-variable problem. As a result, the graphical method cannot
be always employed to solve the real-life practical Linear programming models which
involve more than two decision-variables.
A firm manufacturer sells two products P
1
and P
2
at a profit of Rs. 45 per unit and
Rs. 80 per unit respectively. The quantities of raw materials required for both P
1
and P
2
are
given below
The maximum availability of both R
1
and R
2
is 400 and 450 units respectively.
Formulate as a CP model and solve using the graphical ethod.
Fresh Products Ltd. is engaged in the business of breading cows quits farm. Since
it is necessary to ensure a particular level of nutrients in their diet, Fresh Product Ltd. buys
two products P
1
and P
2
the details of nutrient constituents in each of which are as follows:
P
1
P
2
R
1
5 20
R
2
10 15
NOTES Nutrient Type Nutrient Constituents Minimum nutrient
in the product requirements
The cost prices of both P
1
and P
2
are Rs. 20 per unit and Rs. 40 per unit respectively.
Formulate as a linear programming model and solve graphically to ascertain, how
much of the products P
1
and P
2
must be purchased so as to provide the cows nutrients not
less then the minimum required?
P
1
P
2
A 36 6 108
B 3 12 36
C 20 10 100
DMC 1752
NOTES
CHAPTER 4
SIMPLEX METHOD
4.1 STANDARD FORM OF LINEAR PROGRAM
minimization cost
maximization return
The limitation of the graphical method is tackled by what is known as the simplex
method. Developed in 1947 by George B-Dantizg, it remains a widely applicable method
for solving complex LP problems. It can be applied to LP problem which can be
expressed in terms of a linear objective function subj t to a set of Linear Constraints. As
such, no theoretical restrictions are placed on the nu ber of decision variables or constraints
contained in a linear programming problem.
In the examples and exercises of the preceding section we note that the optimization
of the objective function and the constraints occur in diverse form. For understanding the
inherent mathematical nature of a linear program (or L in brief) and means of solving the
problem, it is necessary to devise a Standard Form of problem.
Suppose that in an LP there are decision variables
1
,
2
,
3
, and the
objective function is z - a linear function of the decision variables. The optimization of z is
sometimes a problem if it involves and sometimes it is a problem of
problem if is involved. Here the former is taken as standard; but
then require a means to convert a maximization proble to one of the minimization. Suppose
that in the optimization: Maximize z, Max (z) = , then z and so z or Min (z)
= . Hence,
Max (z) = = Min (z) (1)
Thus if z = c
1 1
+ c
2 2
+ . + c
n n
which is a linear function of
j
with coefficients
c
j,
( = 1, 2, 3.. ),
)} x c ( { Min } x c { Max
n
1 j
j j
n
1 j
j j
Then multiply the coefficients by -1 to convert a maximization problem into a
minimization problem. Once the minimization of the new problem is found, then multiply by
-1 in order to obtain the original maximum.
Next we form the constraints. If we have a linear equality constraints like
1
n
1 j
i ij
b x a
n x x x x
n
K K K
K
K
x x x x
j n
c
j

= =
=
=
=
NOTES
slack surplus variables
zero coefficients
c x
Ax = b, x 0.
then it is unlikely to cause much difficulty because such linear equations are common place
in linear algebra. We would like to stick to such form as standard form. So, if we encounter
inequality constraints like
3
n
j j 3
n
1 j
2 j j 2
b x a and b x a
We convert them in to equalities by introducing extra ariables
2
0 and
3
0 such that
3 3
n
1 j
j 3j 2
n
1 j
2 j j 2
b S x a and b S x a
S
2
and S
3
are respectively called in O.R. literature, and . We
note that such variables do not enter the objective fu tion z, or we may say that they enter
into the linear expression for z with . By this procedure we note however
that the dimension of the problem, that is to say the of variables is increased.
Finally in all the examples, the decision variables by themselves are non-negative, that is to
say 0, ( = 1, 2 ). We retain these positive constraints as such and do not increase
the dimension any further by introducing more surplus ariables.
The standard form of a linear programming problem can herefore be formulated in
the following manner. Let the decision variables in an LP be
1
,
2

n
with an objective
function z, then determine them so as to
Minimize: z =
1 1
+
2 2
+ +
s.t.:
11 1
+
12 2
+ +
1
=
1
21 1
+
22 2
+ +
2 2
=
2
(3a)
m1 1
+
m2 2
+ + =
1
,
2
, , 0.
More compactly we can write

Minimize: z = S
=1

s.t.: S = , ( = 1, 2 ) (3b)
=1
0, ( = 1, 2, , )
Or, even more compactly, in the notations of matrix algebra
Minimize: S =
T
s.t: (3c)

=

= = +

= =
S S
x
j
j n
x x x
c x c x c
n
x
n
a x a x a
n
x
n
b
a x a x a
n
x
n
b
a x a x a
mn
x
mn
b
m
x x x
n
n
c
j
x
j

j
n
a
ij
x
j
b
i
i m
j
x
j
j n
DMC 1752
NOTES
cost coefficients
unit cost vector c decision
technological coefficients
technological constraints A
inconsistent right hand side
coefficients right hand side vector b
c A
b
unrestricted
In the above
1
,
2
, , are called associated with
1
,
2
, ,
n
which constitute the components of = [
1
,
2
, , ] and
= [
1
,
2
, ,
n
] ; the superscript standing for transposition. The coefficients
, ( = 1, 2 and = 1, 2 ) are called the occurring in
the = 1, 2 . These coefficients define the x matrix
= matrix of [ ], in other words
) 4 (
n a ... a a
... ... ... ...
n a ... a a
n a ... a a
A
m 2 m 1 m
2 22 21
1 12 11
must be , otherwise there would be more equations than the num r of unknowns
and the equations would be .
1
,
2
, , are called
, which constitute the components of the = [
1
,
2
,
, ] . Theoretically we assume the elements of and to have any sign, positive or
negative, but if necessary we can assume 0. This is possible because if any element
is negative, we can multiply the technological constraint by 1 to obtain > 0 on the
right hand side.
In some models it sometimes happens that a variable >
k
>0. In such a case we
can use the shift transformation = l
k
0 in the problem. By this, the problem is
converted in to standard form involving the new variab e x
k
. On a few occasions, particularly
in the theory of LP we come across cases when is , that is, it can be > = or
< 0. In such cases we can define 0 by
0 x if , x
0 x if , 0
k
x
0 x if , 0
0 x if , x
k
x
k k
k
k
k k
(5)
Then evidently
k
x
k
x xk
and by this linear transformations in the LP we introd ce
two non-negative variables in place of one unrestricted variable When there is a group of
such then similar transformation can be used for each, but there will be twice as many
variables 0 which would enter the problem.
c c c
n
x x x
c c c
n
T
x x x
T
T
a
ij
i m j n
i m m n
a
ij
m n
b b b
n
b b
b
m
T
b
k
k
th
b
k
x
k
l
x
k
x
k
x
k
x
x
k
vector x
1
1
1
1
]
1
>

>
'
<
'
> +

NOTES
4.2 SOLVING LINEAR PROGRAMMING USING SIMPLEX METHOD
Remarks

The simplex method employed in solving LP problem is discussed as under:
The simplex method
i. The graphical method, is capable of solving problems h ing a maximum of two
variables. Hence, this method is used which can solve P problems with any number
of variable or constraints it is geared towards solving optimization problems which
have constraints of less than or equal to type.
ii. This method utilizes the property of a LP problem of h ving optimal solution only
at the corner point of the feasible solution space. It systematically generates corner
point solutions and evaluates them for optimality. The method stops when an
optimal solution is found. Hence, it is an iterative (repetitive) technique.
iii. If we get more variables and less equation, we can set extra variables equal to
zero, to obtain a system of equal variables and equal ations. Such solution is
called basic solution.
iv. The variables having positive values in a basic feasible solution are called basic
variable while the variables which are set equal to zero, so as to define a corner
point are called non-basic variables.
v. Slack variables are the fictitious variables which ind ate how much of a particular
resource remains unused in any solution. These variabl s cannot be assigned negative
values. A zero value indicates that all the resources fully used up in the
production process.
vi. C
j
column denotes the unit contribution margin.
vii. C
j
row is simply a statement of the projective function.
viii. Zj row denotes the contribution margin lost if one uni is brought into the solution.
Hence, it represents the opportunity cost. (Opportunit cost is the cost of sacrifice
i.e., the opportunity foregone by selecting a particular course of action out of a
number of different available alternatives).
ix. C
j
- Z
j
row denotes the Net potential contribution or the Net unit Margin
potential, per unit.
The rules used under simplex method, for solving a linear programming problem
are as follows:
a. Select the largest value of Cj - Zj row. The column, under which this value
falls, is the pivot-column.
b. Pivot-row selection rule. Find the ratio of quantity to the corresponding pivot-
column co-efficient. The pivot-row selected is the var ble having the least ratio.
. Rows having negative or zero coefficients in the piv -column are
to be neglected. Also, only the basic variables are examined.
c. The coefficient, which is in both, the pivot-row and the pivot-column is called
the pivot-element or pivot-no.
DMC 1752
NOTES
4.3 EXAMPLES
4.3.1 Example: 1
Raw material type Price(Rs/lton) Quick Tuff
Raw material types Max available(Kg)
d. Updating Pivot-row. Pivot-row, also called replaced rows, is updated as under.
All elements of old-row divided by Pivot-element now, n the basic activities column,
write the pivot-column variable in place of the pivot-row variable. i.e. the pivot-
row variable is to be replaced by the pivot-column variable.
e. Updating all other rows. Update all other rows by updating the formulae. (Old-
row element) - (Corresponding pivot column element * u ted corresponding
pivot row element) = ( New element)
f. Updating and - rows. Each C is obtained as the sum of the products of
the column coefficients multiplied by the corresponding coefficient in the Jth
column. (i.e.) the Quantity column). It is then subtracted from row values
get C - values.
g. This pivoting is be repeated when no positive coefficients exist in the C -
row, the optimal solution is known.
Let us consider some examples to test our understanding of the solution algorithm
that has been discussed so far.
Smart Limited manufactures two types of adhesives which are sold under the brand
name quick and Tuff. Each product consumes the same raw materials but in varying
proportions. The following table depicts the amount of raw materials along with their
respective cost.
Quick can be blended @ 1000 kg /hour whereas the blending rate for Tuff is 1250 kg
/hour. Their respective selling prices are Rs. 1010 and Rs. 845. You may assume the
variable costs be Rs. 500 per hour of plant production time. The maximum availability
of raw material is
N 600 350 200
A 400 50 100
P 400 50 100
I 200 550 600
1000 kg 1000 kg
N 1000
A 300
P 250
I 1800
Z
j
C
j
Z
j
C
j
C
i
to
j
Z
j
to
j
Z
i
to
NOTES
Solution
Step I
Step II
Step III
Step IV
Step V
4.3.2 Example: 2
Solution
Formulate as a linear programming model and find out the optimal units of quick and
tuff to be produced so as to maximize the profits.
List the objective and constraint equations.
Introduce the slack variables
Arrange in the form of 1
st
tableau (table)
Find out the profit-margins from given sales price.
Generate solutions
The detailed solutions are as under:
X Ltd. produces two products P
1
, P
2
having profit of Rs. 4 and Rs.3 each P
1
, P
2
require 4 hrs and 2 hrs. Of machining respectively, th total available machining time is 10
hours. P
1
, P
2
consume 2 units and 8/3 units of raw material respectively subject to a total
of maximum 8 units. Any no. of P
2
can be produced and sold but the no. of P
1
must not be
more than 6.
Formulate as a (LP model and solve by the simplex meth .)
Maximize = 4x
1
+ 3x
2
Subject to:
4x
1
+ 2x
2
10
2x
1
+8/3x
2
8 x
1,
x
2
0
x
1

6
DMC 1752
NOTES
Cj (Rs.) (Rs.) Basic Act. Qty. 4 x
1
3 x
2
0 S
1
0 S
2
0 S
3
Up-dating S
2
row Up-dating S3 row Up-dating Zj row
Cj (Rs.) Basic Act. Qty. 4 x
1
3 x
2
0 S
1
0 S
2
0 S
3
I Tableau
Pivot Column = x
1
Pivot Row =S
1
S
1
[S
1
:10/4 = 5/4, S
2
:8/2=4, S
3
: 6/1=6]
Pivot Element = 4
Updating S
2
row: 10/4 =2.5, 4/4=1, 2/4 =0.5, 1/4 =0.25, 0, 0
II Tableau:
0
0
0
S
1
S
2
S
3
Zj (Rs.) Cj-Zj (Rs.)
10
8
6
0
4
2
1
0
4
2
8/3
0
0
3
1
0
0
0
0
0
1
0
0
0
0
0
1
0
0
8 (2 5/2) =3
2-(2 1) =0
8/3 (2 1/2) = 5/3
0 (21/4) = - 1/2
1 (20) =1
0 (2 0) = 0
8 (2 5/2) =7/2
1-(1 1) =0
0 (21/2) = 1/2
0 (1 1/4) = - 1/4
0 (1 1/4) = -1/4
0 (1 0) = 0
1 (10) = 1
Qty: - 4 5/2 = 10
X
1
= 4
X
2
= 4 1/2=2
S
1
= 4 1/4 =2
S
2
= 0
S
3
= 0
4
0
0
X
1
S
2
S
3
Zj
Cj-Zj
5/2
3
7/2
10
1
0
0
4
0
5/3
-1/2
2
1
-1/2
-1/4
1
-1
0
1
1
1
1
0
0
1
0
0
NOTES
3 4 0 0 0
C
J
(Rs.)
Pivot row = S
1
x [x
1
+ 5/2 + =5, S
2
: 3+5/3 =9/5, S
3
: 7/2 + = -7
9/5 -> Smallest and
7/2-> this will not be considered (read again pivot row selection rule).
Pivot element 5/3
Up dating pivot row:
Updating x1 row: Updating S3: Updating Zj row:
III Tableau:
Basic Act.
Qty. X
1
X
2
S
1
S
2
S
3
0 X
1
8/5 1 0 2/5 -3/10 0
3 X
2
9/5 0 1 -3/10 3/5 0
4 S
3
22/5 0 0 -2/5 3/10 1
Z
J
59/5 4 3 7/10 3/5 0
C
J
- Z
J
0 0 -7/10 -3/5 0
0
5
3
5
1
,
10
3
3
5
2
1
, 1 , 0 ,
5
9
3
5
3
1 0 x
2
1
1 0 0 x
2
1
0
5
3
5
3
x
2
1
0
10
3
5
3
x
2
1
0
5
2
4
3
x
2
1
4
1
5
2
x
2
1
4
1
0 1 x
2
1
2
1
0 1 x
2
1
2
1
0 0 x
2
1
0 1 0 x
2
1
1
5
9 x 3
5
8
x 4 y Q
5
22
5
9
x
2
1
2
7
5
8
5
9
x
2
1
2
5
= =
=
=
+ = + =
DMC 1752
NOTES
4.4 THE BIG M METHOD
The Big M Method to solve a linear programming problem
basic
feasible solution
all slack
The Big M Method
Steps
There are no +ve values in C
J
- Z
J
row, optional solution is reached.
Hence X
1
= 8/5, X
2
=9/5 and max. = 59/5 Ans.
In the previous discussions of the Simplex algorithm method starts with a
. In the examples so far, when put into standard LP form, conveniently
have an starting solution. An all slack solution is only a possibility when all of the
constraints in the problem have <= inequalities. Here, we are going to look at methods for
dealing with LPs having other constraint types.
Remember that simplex needs a place to start, it must from a basic feasible
solution then move to another basic feasible solution o improve the objective value.
With these assumptions, One can obtain an initial basi feasible solution /dictionary
by letting all slack variables be basic, all original riables be non basic
Obviously, these assumptions do not hold for every LP.
When a basic feasible solution is not readily apparent, the Big M method or the two-
phase simplex method may be used to solve the problem.
If an LP has any > or = constraints, a starting basic feasible solution may not be
readily apparent. The Big M method is a version of the Simplex Algorithm that first finds a
basic feasible solution by adding artificial variabl to the problem. The objective function
of the original LP must, of course, be modified to ensure that the artificial variables are all
equal to 0 at the conclusion of the simplex algorithm.
1. Modify the constraints so that the RHS of each constraint is nonnegative (This
requires that each constraint with a negative RHS be m tiplied by -1. Remember
that if you multiply an inequality by any negative number, the direction of the
inequality is reversed!). After modification, identify each constraint as a <, >, or =
constraint.
2. Convert each inequality constraint to standard form (I constraint i is a < constraint,
we add a slack variable s
i
; and if constraint i is a > constraint, we subtract an
excess variable e
i
).
3. Add an artificial variable a
i
to the constraints identified as > or = constraints at
the end of Step 1. Also add the sign restriction a
i
> 0.
NOTES
If all artificial variables are equal to zero in the optimal solution, we have found
the optimal solution to the original problem.
infeasible
4.5 EXAMPLES
4.5.1 Example 1
4. If the LP is a max problem, add (for each artificial v ble) -Ma
i
to the objective
function where M denote a very large positive number.
5. If the LP is a min problem, add (for each artificial variable) Ma
i
to the objective
function.
6. Solve the transformed problem by the simplex . Since ach artificial variable will
be in the starting basis, all artificial variables must be eliminated from row 0 before
beginning the simplex. (In choosing the entering variable, remember that M is a
very large positive number!).
If any artificial variables are positive in the optimal solution, the original problem is
Minimize z = 4x
1
+ x
2
Subject to:
3x
1
+ x
2
= 3
4x
1
+ 3x
2
>= 6
x
1
+ 2x
2
<= 4
x
1
, x
2
>= 0
By introducing a surplus in the second constraint and slack in the third we get the following
LP in standard form:
Minimize z = 4x
1
+ x
2
Subject to:
3x
1
+ x
2
= 3
4x
1
+ 3x
2
S
2
= 6
x
1
+ 2x
2
+ s
3
= 4
x
1
, x
2
, S
2
, s
3
>= 0
Neither of the first two constraint equations has a slack variable or other variable that
we can use to be basic in a feasible starting solution so we must use artificial variables. If
we introduce the artificial variables R
1
and R
2
into the first two constraints, respectively,
and MR
1
+ MR
2
into the objective function, we obtain:
DMC 1752
NOTES
Basic z x
1
x
2
S
2
R
1
R
2
s
3
Solution
Basic
Z
x
1
x
2
S
2
R
1
R
2
s
3
Solution
Minimize z = 4x
1
+ x
2
+ MR
1
+ MR
2
Subject to:
3x
1
+ x
2
+ R
1
= 3
4x
1
+ 3x
2
S
2
+ R = 6
x
1
+ 2x
2
+ s
3
= 4
x
1
, x
2
, S
2
, s
3
, R
1
, R
2
>= 0
Set x
1
, x
2
and S
2
to zero and use R
1
, R
2
and s
3
as the starting basic feasible solution.
In table form, we have:
At this point, we have our starting solution in place t we must adjust our z-row to
reflect the fact that we have introduced the variables R
1
and R
2
with non-zero coefficients
(M).
We can see that if we substitute 3 and 6 into the objective function for R
1
and R
2
,
respectively, that z = 3M + 6M = 9M. In our tableau, wever, z is shown to be equal to
0. We can eliminate this inconsistency by substitutin out R
1
and R
2
in the z-row. Because
each artificial variables column contains exactly one 1, we can accomplish this by multiplying
each of the first two constraint rows by M and adding hem both to the current z-row.
New z-row = Old z-row + M*R
1
-row + M*R
2
-row
The tableau now becomes
z 1 -4 -1 0 -M -M 0 0
R
1
0 3 1 0 1 0 0 3
R
2
0 4 3 -1 0 1 0 6
s
3
0 1 2 0 0 0 1 4
z 1 -4+7M -1+4M -M 0 0 0 9M
R
1
0 3 1 0 1 0 0 3
R
2
0 4 3 -1 0 1 0 6
s
3
0 1 2 0 0 0 1 4
NOTES

select R
1
as our leaving variable
Two important considerations accompany use of the M method
Basic Z X
1
X
2
S
2
R
1
R
2
S
3
Solution
Now we have the expected form for our starting solution.
Apply the simplex method as before. Since this is a m imization problem we select
the entering variable with the most objective row coefficient. In this case, that is
x
1
. Calculating the intercept ratios we get:
R
1
3/3 = 1
R
2
6/4 = 1.5
s
3
4/1 = 4
So we .
Performing the Gauss-Jordan row operations, we obtain he new tableau:
In this tableau, we can see that x
2
will be our next entering variable and R
2
will leave.
We can thus see that the simplex algorithm will quickly remove both R
1
and R
2
from the
solution just as we intended when we assigned them the coefficient of M in the objective
function. If we continue to apply the simplex algorit m, we will find that the optimal solution
is:
x
1
= 2/5
x
2
= 9/5
S
2
= 1
with z = 17/5
The use of the penalty M may not always force the artificial variable to zero level by
the final iteration. This can occur in the case where the given LP has no feasible solution.
If any artificial variable is positive in the final iteration than the LP has no feasible solution
space.
Theoretically, the application of the M technique requires that M approaches infinity
but to computerize the solution algorithm, M must be f nite while being sufficiently large.
The pitfall in this case is, however, if M is too large it can lead to substantial round-off error
yielding an incorrect optimal solution. For this reason, most commercial LP solvers do not
apply the M-method but use, rather, an artificial variable method called the two-phase
Z 1 0 (1+5M)/3 -M (4-7M)/3 0 0 4+2M
x
1
0 1 1/3 0 1/3 0 0 1
R
2
0 0 5/3 -1 -4/3 1 0 2
s
3
0 0 5/3 0 -1/3 0 1 3
positive
DMC 1752
NOTES
4.5.2 Example 2
Minimize
Step1
Step2
Step3
Step4
Step5
Step6
method. For educational purposes, TORA allows the implementation of the M-method
with a user selected value for M where M is sufficiently large to allow solution of the
problem. The definition of the term sufficiently large is dependent upon the problem in
question and requires some judgment for implementation.
z = 2x
1
+3x
2
s.t 1/2x
1
+1/4x
2
41
x
1
+3x
2
202
x
1
+x
2
=103
x
1
,x
2
0
: Make the right hand side of all constraints positive We dont have any negative
right hand side.
:Identify each constraint which is or =. Constraints 2 and 3 apply the above
conditions.
: For each<= constraint add a slack variable and for each constraint subtract an
excess variable to make them equalities.
1 1/2x
1
+1/4x
2
+s
1
=4
2 x
1
+ 3x
2
-e
1
=20
:For each>=or = constraint add an artificial variable a
i
(a
i
, s>0),which is to be chosen
in the starting bfs.
2 x
1
+3x
2
-e
1
+a
2
=20
3 x
1
+x
2
+ +a
3
=10
: If the LP is a min add +Ma
i
to the objective function. If it is a max add Ma
i
to the
objective function. Here M represents a very big number such that in the min problem
+Ma
i
is arbitrarily large so that a
i
the artificial variable is best to be chosen as zero, ch
we require . Similar reasoning applies in the max prob m.
Min z =2x
1
+3x
2
+Ma
2
+Ma
3
: Choose those artificial variables in the starting bfs and proceed to find the Optimal
Tableau. If in the end, artificial variables are zero find the solution, but if they are not
equal to zero then we dont have a optimal solution. Thus, original LP is infeasible. After
these steps we have the LP:
Min Z = 2x
1
+3x
2
+Ma
2
+Ma
3
s.t 1/2x
1
+1/4x
2
+s
1
=4

NOTES
x
1
+3x
2
-e
1
+a
2
=20
x
1
+x
2
+ a
3
=10
After all, we have the table:
In the optimal solution, we have: {z,s
1
, x
2
, x
1
}={25,1/4,5,5}. Since we dont have
any of artificial variables a
1
and a
2
in the optimal solution, the solution is feasible. If y of
the artificial variables a
1
, a
2
were not equal to zero then we would have infeasibility as
described below:
Min z=x
1
+3x
2
s.t.
1/2x
1
+1/4x
2
4
x
1
+3x
2
10
x
1
+x
2
=10
After going through all the steps described above we e with the optimal tableau:
Entering variable
Basis z x
1
x
2
s
1
e
2
a
2
a
3
RHS
z 1 2M-2 4M-3 0 -M 0 0 30M
s
1
Leaving var. a
2
a
3
0
0
0
1/4
1
1
1/4
3
1
1
0
0
0
-1
0
0
1
0
0
0
1
4
20
10
z
s
1
x
2
Leaving var. a3
1
0
0
0
(2M-3)/3
5/12
1/3
2/3
0
0
1
0
0
1
0
0
(M-3)/3
1/12
-1/3
1/3
(3-4M)/3
-1/12
1/3
-1/3
0
0
0
1
60+101
7/3
20/3
10/3
z
s
1
x
2
x
1
1
0
0
0
0
0
0
1
0
0
1
0
0
1
0
0
-1/2
-1/8
-1/2
1/2
(1-2M)/2
1/8
-1/2
-1/2
(3-2M)/2
-5/8
-1/2
3/2
25
1/4
5
5
Basis z x
1
x
2
s
1
e
2
a
2
a
3
RHS
z
s
1
a
2
s
2
1
0
0
0
1-2M
-2
1
0
0
0
1
0
1
0
0
-M
0
-1
0
0
0
1
0
3-4M
-1/4
-3
1
30+6M
3/2
6
10
DMC 1752
NOTES
4.5.3 Example 3
Maximize Z = x
1
+ 5x
2
In the above example, we have the optimal tableau since reduced costs of all non
basic variables are non positive. However note that th optimal solution contains the very
big number M, which should not have been the case for min problem, thus we say that
our original LP was infeasible. We also say that from he fact that we have the artificial
variable a
2
in the basic variables, which shouldnt have been the case for a feasible LP.
Subject to:
3x
1
+ 4x
2
6
x
1
+ 3x
2
= 2
Where x
1
, x
2
0
Solution
Introducing slack and surplus variables
3x
1
+ 4x
2
+ x
3
= 6
x
1
+ 3x
2
x
4
= 2
Where: x
3
is a slack variable x
4
is a surplus variable.
The surplus variable x
4
represents the extra units.
Now if we let x
1
and x
2
equal to zero in the initial solution, we will have x
3
= 6 and x
4
= 2,
which is not possible because a surplus variable cannot be negative. Therefore, we need
artificial variables
Maximize x
1
+ 5x
2
MA
1
Subject to:
3x
1
+ 4x
2
+ x
3
= 6
x
1
+ 3x
2
x
4
+ A
1
= 2
Where: x
1
0, x
2
0, x
3
0, x
4
0, AA
1
0

.
NOTES
Table 2
C
j
1 5 0 0
C
B
Basic variables B x
1
x
2
x
3
x
4
Solution values b (= X
B
)
Z
j
C
j
2 / 3 0 0 5 / 3
C
j
1 5 0 0 M
C
B
Basic
variables B
x
1
x
2
x
3
x
4
A
1
Solution values
b (= X
B
)
Z
j
C
j
M 1 3M 5 0 M 0
Here, a
11
= 3, a
12
= 4, a
13
= 1, a
14
= 0, a
15
= 0, b
1
= 6 a
21
= 1, a
22
= 3, a
23
= 0, a
24
= 1,
a
25
= 1, b
2
= 2
Calculating Z
j
C
j
First column = 0 * 3 + (M) * 1 1 = M 1 Second column = 0 * 4 + (M) * 3 5 =
3M5 Third column = 0 * 1 + (M) * 0 0 = 0 Fourth column = 0 * 0 + (M) * (1)
0 = M Fifth column = 0 * 0 + (M) * 1 (M) = 0 Choose the smallest negative value
from Zj Cj. Substitute M = 0 Smallest negative value is 5. So second column is the 3
element column. Now find out the minimum positive value. Minimum (6 / 4, 2 / 3) = 2 / 3
So second row is the element row. Here, the pivot (key) element = 3. Therefore, A1
departs and x
2
enters.
Calculating values for table 2
Calculating values for first row
a
11
= 3 1 * 4 / 3 = 5 /3 ;a
12
= 4 3 * 4 / 3 = 0; a
13
= 1 0 * 4 / 3 = 1 ;a
14
= 0 (1) *
4 / 3 = 4 / 3 ;b
1
= 6 2 * 4 / 3 = 10 / 3
Calculating values for key row
a
21
= 1 / 3; a
22
= 3 /3=1; a
23
= 0 / 3 = 0; a
24
= 1 / 3; b
2
= 2 / 3
0 x
3
5 / 3 0 1 4 / 3 10 / 3
5 x
2
1 / 3 1 0 1 / 3 2 / 3
0 x
3
3 4 1 0 0 6
M A
1
1 3 0 1 1 2
DMC 1752
NOTES
Table 3
.
4.6 SIMPLEX BIG M METHOD
Solution:
negative
C
j
1 5 0 0
C
B
Basic variables B x
1
X
2
x
3
x
4
Solution values b (= X
B
)
Z
j
C
j
11 / 4 0 5 / 4 0
Since all the values of Z
j
C
j
are positive, this is the optimal solution
x
1
= 0, x
2
= 3 / 2
Z = 0 + 5 * 3 / 2 =15 / 2
Maximize 3X
1
+ 4X
2
Subject to 2X
1
+ X
2
<= 600
X
1
+ X
2
<= 225
5X
1
+ 4X
2
<= 1000
X
1
+ 2X
2
>= 150
X
1
, X
2
>= 0
Standard form:
Maximize 3X
1
+ 4X
2
Subject to 2X
1
+ 3X
2
+ S
1
= 600
X
1
+ X
2
+ S
2
= 225
5X
1
+ 4X
2
+ S
3
= 1000
X
1
+ 2X
2
- S
4
= 150
X
1,
X
2
, S
1
, S
2
, S
3
, S
4
>= 0
Not in canonical form because there is no basic variable in the fourth equation.
Therefore we add an artificial variable to that equation (R
1
) and give it a large
coefficient in the objective function, to penalize it:
Maximize 3X
1
+ 4X
2
Subject to 2X
1
+ 3 X
2
+ S
1
= 600
X
1
+ X
2
+ S
2
= 225
5X
1
+ 4X
2
+S
3
= 1000
X
1
+ 2X
2
- S
4
+ R
1
= 150
X
1
, X
2
, S
1
, S
2
, S
3
, S
4
, R
1
>= 0
0 x
4
5 / 4 0 3 / 4 1 5 / 2
5 x
2
3 / 4 1 1 / 4 0 3/2
NOTES
X
1
X
2
S
4
S
1
S
2
S
3
R
1
B
X
1
X
2
S
4
S
1
S
2
S
3
R
1
b
X
1
X
2
S
4
S
1
S
2
S
3
R
1
b
Not in Canonical form because of +M entry on Z row for one basic variable (R
1
).
Pivot to replace +M on Z row by zero - Z row M*R
1
row:
Z -3 -4 0 0 0 0 +M
S
1
2 3 0 1 0 0 0 600
S
2
1 1 0 0 1 0 0 225
S
3
5 4 0 0 0 1 0 1000
R
1
1 2 -1 0 0 0 1 150
Z (-3-M) (-4-2M) M 0 0 0 0 -150M
S
1
2 3 0 1 0 0 0 600
S
2
1 1 0 0 1 0 0 225
S
3
5 4 0 0 0 1 0 1000
R
1
1 2 -1 0 0 0 1 150
X
1
X
2
S
4
S
1
S
2
S
3
R
1
b
Z -1 0 -2 0 0 0 M 800
S
1
0 3/2 1 0 0 -3/2 375
S
2
0 0 1 0 - 150
S
3
3 0 2 0 0 1 -2 700
X
2
1 - 0 0 0 75
Z -1/3 0 0 4/3 0 0 M 800
S
4
1/3 0 1 2/3 0 0 -1 250
S
2
1/3 0 0 -1/3 1 0 0 25
S
3
7/3 0 0 -4/3 0 1 0 200
X
2
2/3 1 0 1/3 0 0 0 200
DMC 1752
NOTES
4.7 TWO PHASE METHOD
Motivation
Duality theory says
Remark
The Two-Phase Method
Artificial variables and auxiliary problem
X
1
X
2
S
4
S
1
S
2
S
3
R
1
b
Optimal tableau: Solution: X
1
= 75 X
2
= 150 Z = 825
Consider the LP
Max c
T
x
(P) s.t Ax = b
X 0
We have assumed that a feasible basis is always given. But in practice, it is usually not easy
to spot a feasible basis
: Optimal solutions to (P) and its dual are solutions to
Ax = b, X 0
A
T
y c
c
T
x b
T
y = 0
So, is as hard as solving finding feasible solution LP. Two-phase method: an algorithm
that solves (P) in two phases, where
In Phase 1, we solve an auxiliary LP problem to either get a feasible basis or
conclude that (P) is infeasible.
In Phase 2, we solve (P) starting from the feasible ba found in Phase 1.
: From Phase 1, we see that finding feasible basis is as easy as solving LP.
Consider the LP
Max c
T
x
(P) s.t Ax = b
X 0
Z 0 0 0 1 1 0 M 825
S
4
0 0 1 1 -1 0 -1 225
X
1
1 0 0 -1 3 0 0 75
S
3
0 0 0 1 -7 1 0 25
X
2
0 1 0 1 -2 0 0 250

NOTES
4.8 EXAMPLE
4.8.1 Example 1
Assumption: b 0. (This is without loss of generality.) Suppose we relax the equality
constraints to inequalities, and add slack variables u
1
, u
2
. . . u
m
Max c
T
x
s.t Ax + u = b
x , u 0
The basis having u
1
, u
2
. . . u
m
as basic variables is feasible; it determines the bfs *,
u*) = (0, b). These slack variables are called artificial variables. This new LP problem is
NOT equivalent to (P). But, we can force all artificia variables to be zero, then the resulting
solution gives a feasible solution to (P).So, we change the objective function.
m
Max S u
i
i=1
(A) s.t Ax + u =b
x , u 0
This is called an auxiliary problem.
Given the LP problem
Max (z =) X
1
-X
3
+2X
4
s.t X
1
+2X
2
+X
4
=4
(P) -X
2
+X
3
-X
4
= -1
X
1
, X
2
, X
3
, X
4
0
First, we make sure the right hand side is nonnegative.
Max (z =) X
1
-X
3
+2X
4
s.t X
1
+2X
2
+X
4
=4
(A) X
2
-X
3
+X
4
= 1
X
1
, X
2
, X
3
, X
4
0
Adding artificial variables u
1
, u
2
gives the auxiliary problem
Max (w =) u
1
-u
2
s.t X
1
+2X
2
+X
4
+ u
1
=4
(A) X
2
-X
3
+X
4
+ u
2
= 1
X
1
, X
2
, X
3
, X
4
, u
1
, u
2
0
DMC 1752
NOTES
Example (contd)
Any feasible solution of (A) has objective value 0.
=> (A) has optimal value 0.
[X*
1
, x*
2
, x*
3
, x*
4
]
T
is feasible for (P),
=> [x*
1
, x*
2
, x*
3
, x*
4
, 0, 0]
T
is feasible for (A).
=> [x*
1
, x*
2
, x*
3
, x*
4
, 0, 0]
T
is optimal for (A) with value 0.
[X*
1
, x*
2
, x*
3
, x*
4
, u*
1
, u*
2
]
T
is optimal for (A) with value 0
=> u*
1
= u*
2
= 0
=> [x*
1
, x*
2
, x*
3
, x*
4
]
T
is feasible for (P).
So (P) has a feasible solution () (A) has optimal value 0.
In general, the auxiliary problem is never unbounded; its optimal value is 0.Using
the same argument as before, we can prove an LP problem (P) has a feasible solution its
auxiliary problem (A) has an optimal value 0.
The two-phase method constructs and solves the auxiliary problem (A) in the first phase.
If (A) has optimal value < 0, we conclude that (P) is feasible.
If (A) has optimal value = 0, we construct a feasible for (P) and solve it in
the second phase.
Max (z) = -X
1
- X
3
+ 2X
4
(P) s.t X
1
+ 2X
2
+ X
4
= 4
X
2
X
3
+ X
4
= 1
X
1
, X
2
, X
3
, X
4
0
Max (w) = -X
5
X
6
(A) s.t X
1
+ 2X
2
+ X
4
+ X
5
= 4
X
2
X
3
+ X
4
+ X
6
= 1
X
1
, X
2
, X
3
, X
4
, X
5
, X
6
0
[Let x
5
= u
1
and x
6
= u
2
.]
We solve the auxiliary problem starting from the obvious feasible basis B = {5, 6}.
The corresponding tableau is
W X
1
3X
2
+ X
3
-2X
4
= -5
X
1
+ 2X
2
+ X
4
+ X
5
= 4
X
2
X
3
+ X
4
+ X
6
=1

NOTES
Example (contd)
Example (contd)
Note: The w-row is obtained by subtracting x
5
-row and x
6
-row from w = x
5
x
6
.
c
1
= 1 > 0, so x
1
enters. t = min {4/1, -} = 4, so x
5
leaves. Pivot on (5, 1) gives the tableau
W= X
2
+ X
3
X
4
+ X
5
= -1
X
1
+ 2X
2
+ X
4
+ X
5
= 4
X
2
X
3
+ X
4
+ X
6
=1
c
2
= 1 > 0, so x
2
enters. t = min {4/2, 1/1} = 1, so x
6
leaves. Pivot on (6, 2) gives the
tableau
W = X
5
+ X
6
= 0
X
1
+ 2X
3
- X
4
+ X
5
- 2 X
6
= 2
X
2
X
3
+ X
4
+ X
6
=1
This tableau is optimal, and B = {1, 2} is an optimal is.
B = {1, 2} does not contain artificial variable => B = {1, 2} is a feasible basis for (P).
The tableau for (P) corresponding to B = {1, 2} is
Z = - X
3
- X
4
= -2
X
1
+ 2X
3
- X
4
= 2
X
2
X
3
+ X
4
=1
Note: the z-row is obtained by eliminating the basic variables x
1
and x
2
from
z = x
1
x
3
+ 2x
4
.
c
3
= 1 > 0, so x
3
enters. t =
,
2
2
min
= 1, so x
1
leaves. Pivot on (1, 3) gives the tableau
Z + X
1
3/2X
4
= -1
X
1
+ X
3
X
4
= 1
X
1
+ X
2
+ X
4
= 2
c
4
= 3/2 > 0, so x
4
enters. t =
1
2
, min
= 2, so x
2
leaves.
Pivot on (2, 4) gives the tableau
Z + 2X
1
+ 3X
2
= 5
X
1
+ X
2
+ X
3
= 3
X
1
+ 2 X
2
+ X
4
= 4
This tableau is optimal. The corresponding optimal solution is x* = [0, 0, 3, 4]
T
with
optimal value 5.
DMC 1752
NOTES
4.9 EXERCISES
Convert the following problems to standard form LP:
1. Maximize: z = 6
1
+ 4
2
+ 10
s.t.: 2
1
+ 3
2
+ 5
3
50
4
1
+ 2
2
+ 7
3
60

1
+
2
1
2
+
3
1
3
20

1
5,
2
4,
3
3.75
2. Minimize : z = 2
1
+ 5
2
+ 7
3
s.t.:
1
+ 2
2
+
3
= 5
4
1
+ 6
2
+ 2
3
= 12

2
0,
3
0
And solve the problem.
3. Maximize: z =
1
+ 2
2
3
3
s.t.: 3 3
1
5
2
15,
2
0,
3
0.
4. Minimize: z = |
1
| - 2|
2
| + |
3
|
s.t.:
1
+
2

3
10

1
3
2
+ 2
3
5
5. Minimize: z = |
1
3| + |
2
+ 4|
s.t.:
1
+
2
10
2
1

2
3
x x x
3
x x x
x x x
x x x
x x x
x x x
x x x
x x x
x x
x x x
x x x x
x x x
x x x
x x x
x x
x x
x x

NOTES
CHAPTER 5
VARIANTS OF THE SIMPLEX METHOD
5.1 INTRODUCTION
5.2 DUALITY OF LP PROBLEMS
By a of the Simplex Method it means, an algorithm consisting of a sequence
of pivot steps in the primal system using alternative for the selection of the pivot.
Historically these variants were developed to take advantage of a situation where an
infeasible basic solution of the primal is available. n other applications there often occurs
a set of problems differing from one another only in their constant terms and cost factors.
In such cases, it is convenient to omit Phase I and to use the optimal basis of one problem
as the initial basis for the next.
Several methods have been proposed for varying the Sim x Algorithm to reduce
the number of iterations. This is especially needed for problems involving many equations
in order to reduce the computation time. It is also needed for problems involving a large
number of variables , for the number of iterations in practice appears to roughly
proportional to .
Each LP problem (called as Primal in this context) is ociated with its counterpart
known as dual LP problem. Instead of primal, solving t dual LP problem is sometimes
easier when a) the dual has fewer constraints then primal (time required for solving LP
problems is directly affected by the number of constra nts, i.e., number of iterations necessary
to converge to an optimum solution which in Simplex me od usually ranges from 1.5 to 3
times the number of structural constraints in the problem) and b) the dual involves
maximization of an objective function (it may be possible to avoid artificial variables that
otherwise would be used in a primal minimization problem).
The dual LP problem can be constructed by defining a new decision variable for each
constraint in the primal problem and a new constraint r each variable in the primal. The
coefficient of the j
th
variable in the duals objective function is the i
th
component of the
primals requirements vector (right hand side values o the constraints in the primal). The
duals requirement vector consists of coefficients of ecision variables in the primal objective
function. Coefficients of each constraint in the dual row vectors) are the column
vectors associated with each decision variables in the coefficients matrix of the primal
problem. In other words, the coefficients matrix of the dual is the transpose of the primals
coefficient matrix. Finally, maximizing the primal pro em is equivalent to minimizing the
dual and their respective values will be exactly equal.
variant
n
n
DMC 1752
NOTES
Primal Dual
Primal Dual
When a primal constraint is less than equal to, the corresponding variable in the dual
is non-negative. An equally constraint in the primal p oblem means that the corresponding
dual variable is unrestricted in sign. Obviously, dual s dual I primal. In summary the following
relationship exists between primal and dual.
It may be noted that, before finding its dual, all the constraints should be transformed
to less-than-equal-to or equal-to type for maximization problem and to greater-than-
equal-to or equal-to type for minimization problem. It can be done by multiplying with -
1 both sides of the constraints, so that inequality si gets reversed.
An example of finding dual problem is illustrated with the following example.
Maximize Z=4x
1
+ 3x
2
Minimize Z=6000y
1
2000y
2
+ 4000y
3
Subject to Subject to
x
1
+ 2/3 x
2
6000 y
1
y
2
+ y
3
= 4
x
1
x
2
2000 2/3 y
1
+ y
2
3
x
1
4000 y
1
0
x
1
0 y
2
0
x
2
0 y
3
0
Maximization Minimization
Minimization Maximization
i
th
variable j
th
constraint
j
th
constraint j
th
variable
Xi 0 In equality sign of i
th
Constraint:
if dual is Maximization
if dual is Minimization
i
th
variable unrestricted j
th
constraint with = sign
j
th
constraint with = sign i
th
variable unrestricted
RHS of j
th
constraint Cost coefficient associated with j
th
variable in the objective function
Cost coefficient associated with i
th
variable in the objective function
RHS of i
th
constraint

NOTES
Primal-Dual relationships
Dual Simplex Method
Selection of exiting variable:
Primal

Dual
It may be noted that second constraint in the primal is transformed to x
1
+ x
2
-2000
before constructing the dual.
Following points are important to be noted regarding primal-dual relationship:
1. If one problem (either primal or dual) has an optimal easible solution, other problem
also has been optimal feasible solution. The optimal o ive function value is
same for both primal and dual.
2. If one problem has no solution (infeasible), the other problem is either infeasible or
unbounded.
3. If one problem is unbounded the other problem is infeasible.
Computationally, dual simplex method is same as simple method. However, their
approaches are different from each other. Simplex method starts with a non optimal but
feasible solution where as dual simplex method starts th an optimal but infeasible solution.
Simplex method maintains the feasibility during succes ive iterations whereas dual simplex
method maintains the optimality. Steps involved in the dual simplex method are:
1. All the constraints (except those with equality (=) si ) are modified to less-than-
equal-to ( ) sign. Constraints with greater-than-equal-to ( ) sign are multiplied
by -1 through out so that inequality sign gets reversed. Finally, all these constraints
are transformed to equality (=) sign by introducing required slack variables.
2. Modified problem, as in step one, is expressed in the rm of a simplex tableau. If
all the cost coefficients are positive (i.e., optimality condition is satisfied), then dual
simplex method is applicable.
3. The basic variable with highest negative value is
the exiting variable. If there are two candidates for variable, anyone is
selected. The row of the selected exiting variable is arked as pivotal row.
Maximize Z= 4x
1
-x
2
+ 2x
3
Subject to 2x
1
+ x
2
+2x
3
? 6
x
1
- 4x
2
+2x
3
0
5x
1
-2x
2
-2x
3
? 0
x
1
,x
2
,x
3
0
Minimize Z= 6y
1
+ 0y
2
+ 4y
1
Subject to 2y
1
+ y
2
+ 5y
3
4
y
1
- 4y
2
- 2y
3
-1
2y
1
+ 2y
2
-2y
3
2
y
1
,y
2
,y
3
0
DMC 1752
NOTES
4. Selection of entering variable:
Ratio = (Cost coefficients/ -1 Elements of pivotal row)
5. Pivotal operation:
6. Check for optimality:
Cost coefficients, corresponding to all the negative
elements of the pivotal row, are identified. Their rat s are calculated after changing
the sign of the elements of pivotal row, i.e.,
The column corresponding to minimum ratio is identified as the pivotal column and
associated decision variable is the entering variable.
pivotal operation is exactly same as in the case of simplex
method, considering the pivotal element as the intersection of pivotal row and
pivotal column.
If all the basic variables have nonnegative values then the
optimum solution is reached, otherwise, Step 3 to 5 ar repeated until the optimum is
reached.
NOTES
UNIT II
CHAPTER 1
TRANSPORTATION PROBLEM
1. TRANSPORTATION PROBLEM
.
1.1 TRANSPORTATION MODELS
objective
1.2 MATHEMATICAL FORMULATION
The transportation problem is a special class of the linear programming problem. It
deals with the situation in which a commodity is trans orted from to
The objective is to determine the amount of commodity o be transported from each source
to each destination so that the total transportation c t is minimum.
Transportation models or problems are primarily concerned with the optimal (best
possible) way in which a product produced at different factories or plants (called supply
origins) can be transported to a number of warehouses called demand destinations). The
in a transportation problem is to fully satisfy the destination requirements within
the operating production capacity constraints at the m um possible cost. Whenever
there is a physical movement of goods from the point o manufacture to the final consumers
through a variety of channels of distribution (wholesa rs, retailers, distributors etc.), there
is a need to minimize the cost of transportation so as to increase the profit on sales.
Transportation problems arise in all such cases. It aims at providing assistance to the top
management in ascertaining how many units of a particu ar product should be transported
from each supply origin to each demand destinations to that the total prevailing demand for
the companys product is satisfied, while at the same me the total transportation costs are
minimized.
Consider m-plant locations (origins) as and the n-retail shops
(destination) as respectively. Let , be the amount
available at the plant . Let the amount required at the shop Dj be bj
Let the cost of transporting one unit of soft drink fr i
th
origin to destination be
If be the amount of soft drink to be transported from
origin to destination , then the problem is to determine so as to Minimize
Sources Destinations
O
1
, O
2
, ., O
m
D
1
, D
2
, .., D
n
a
i
0, i= 1,2, .m
i
th
O
i
j
th
0, j=
1,2,.n.
j
th
C
ij
, i= 1,2, .m, j=1,2,.n. x
ij
0
i
th
jth x
ij

DMC 1752
NOTES
THEOREM 1.1
Note.
The transportation table:
Supply
Requirement
= =
=
=
=
=

= =
=
=
= =
=
m
i
n
j
ij ij
c x z
n j
m
i
j
b
ij
x
m
i
n
j
j i
b a
n
j
i
a
ij
x and
j
b
m
i
ij
x
m+n equations mn
1 1
Subject to the constraint
and x
ij
0, for all i and j.
. ,... 2 , 1 ,
1
This LPP is called a
A necessary and sufficient condition for the existence of a feasible solution to the
transportation problem is that
1 1
The set of constraints
1 1
Represents in non-negative variables. Each variable x
ij
appears
in exactly two constraints, one is associated with the origin and the other is associated with
the destination.
If we are putting in the matrix from, the elements of A are either 0 or 1.
D
1
D
2
D
n

O
1
c
11
c
12
.. c
1n
a
1

O
2
c
21
c
22
.. . c
2n
a
2
.. . . .. .. :

O
m
c
m1
c
m2
. c
mn
a
m
Transportation Problem.
Remark.
NOTES
1.2.1 Formulation of Transportation Problem as a Linea Programming Model
Objective-Function
Balanced Transportation Problem
Definition. (Loop). In a transportation table, an ordered set of four or more cells is
said to form a loop if:
I. Any two adjacent cells in the ordered set lie in the same row or in the same
column.
II. Any three or more adjacent cells in the ordered set do not lie in the same row or in
the same column.
A Transportation problem is simply a special case of Linear Programming problem.
Hence to convert into a LP model, the same basics steps are employed which we have
already described in the previous section/chapters.
Let P denote the plant (factory) where the goods are b ng manufactured and denote
the warehouse (go down) where the finished products are stored by the company before
shipping to various destinations. Further, Let, x
ij
= quantity (amount of goods) shipped
from plant P to the warehouse W
j
, and C
ij
= transportation cost per unit of shipping from
plant P to the Warehouse W
j
.
The objection function can be represented as:
Minimize
Z =C
11
X
11
+ C
12
X
12
+ C
13
X
13
+ C
21
X
21
+ C
22
X
22
+ C
23
X
23
+ C
31
X
31
+ C
32
X
32
+ C
33
X
33
Either, x
ij
for all values of i and j (ie; x
11
, x
12
, all such values are 0) It is further
assumed that: S
1
+ S
2
+ S
3
= D
1
+ D
2
+ D
3
i.e. the total supply available at the plants
exactly matches the total demand at the destinations. ence, there is neither excess supply
nor excess demand.
Supply (from various sources) is written in the rows, ile a column is an expression
for the demand of different warehouses. In general, if a transportation problem has m rows
and n column, then the problem is solvable if there are exactly (m + n1) basic variables.
Supply constraints X
11
+ X
12
+ X
13
= S
1
X
21
+ X
22
+ X
23
= S
2
X
31
+ X
32
+ X
33
= S
3
Demand constraints X
11
+ X
12
+ X
13
= D
1
X
11
+ X
12
+ X
13
= D
1
X
11
+ X
12
+ X
13
= D
1
i
i
DMC 1752
NOTES
Unbalanced Transportation Problem
unbalanced
Two situations are possible:-
Example.
Capacity constraints:
Requirement constraints:
A transportation problem is said to be if the supply and demand are not
equal.
i. If supply < demand, a dummy supply variable is introduced in the equation to
make it equal to demand.
ii. If demand < supply, a dummy demand variable is introduced in the equation to
make it equal to supply. Formulate the following trans tation problem as a LP
model:
Formulating as a Linear Programming model, we have:
Minimise
Z =11x
11
+ 6x
12
+ 15x
13
+ 3x
14
+ 7x
21
+ 8x
22
+ 4x
23
+ 13x
24
+ 22x
31
+ 17x
32
+ 8x
33
+ 31x
34
Subject to:
x
11
+ x
12
+ x
13
+ x
14
=21
x
21
+ x
22
+ x
23
+ x
24
= 23
x
31
+ x
32
+ x
33
+ x
34
= 29
Notation used:
x
ij
= no. of units transported from source to destination J
x
11
+ x
21
+ x
31
= 6

X12
+ x
22
+ x
32
= 20
x
13
+ x
23
+ x
33
= 22
x
14
+ x
24
+ x
34
= 25
Hence the transportation problem is successfully formulated as a LP model.
Designation
W
1
W
2
W
3
W
4
(Supply)
Source Capacity
11 06 15 03
P
1
X
11
X
12
X
13
X
14
21
07 08 04 13
P
2
X
21
X
22
X
23
X
24
23
22 17 08 31
P
3
X
31
X
32
X
33
X
34
29
Requirement
(Demand) 06 20 22 25 73

i
NOTES
1.3 TRANSPORATION PROBLEM STEPS INVOLVED IN SOLVING A
TRANSPORTATION PROBLEM
Step I
Step II
Step III
Step IV
Remarks
Step V
Initial Feasible Solutions
a. The North-West Corner Rule (NWC Rule)
From the given problem, express the objective function which must be minimized a
long with the relevant constraints.
Set up a transportation table, where supply or sources (factories, plants) are denoted
as rows and demand or destinations (warehouses, market are denoted by columns.
Find out an initial feasible solution by using one of he three rules.
A solution so obtained is said to be feasible if and o ly if, such a solution has allocations
in the total number of (m + n 1) cells with independent positions.
When it is not possible to change an individual alloca on in any cell without violating
the demand and/or supply constraints or changing the relative positions of the allocations,
the position is said to be independent.
By ascertaining the opportunity costs, the solution obtained above can be checked
for optimality. Opportunity cost may be defined as the cost of sacrifice. Here, it denotes
the reduction in cost due to the inclusion of a particular cell in the solution. An optimum
solution is obtained when there is a positive opportunity cost for each of the empty cells.
When the solution so obtained is not found to be optimal, that empty cell which
results in the largest saving is included and the above steps are again repeated.
In a transportation problem, the initial feasible solu ion can be generated by a number
of methods. Three of the most common methods are discussed below:
As the name itself suggests, under this rule, first of all the upper-left or the north-west
corner of each cell is selected. It is one of the simp t methods which provides an initial
feasible solution to a transportation problem. The ste involved are as follows:
DMC 1752
NOTES
Step I
Step II
Step III
Step IV
b. Least Cost Method (LCM)
Step I
Step II
Step III
Step IV
c. Vogels Approximation Method (VAM)
Upper-left corner cell of the transportation table is elected. Allocate as many units to
this cell as possible. This will be the least value of demand and supply. This process is
repeated for all the respective rows and columns.
After exhausting the supply for the first row, move down vertically to the Ist cell in
2nd row and Ist column. Then repeat the Step I.
After exhausting the demand for the first column, move along horizontally to the next
cell in the IInd column & Ist row. Then repeat Step I.
Where demand is equal to supply for a cell, then further allocation is made in either
the next row or the next column cell. This procedure is continued till the total quantity that
is available is fully allocated to the various cells, required.
This is a time-saving method since it drastically reduces the numerous calculation
required to be done under the northwest corner rule. The following steps are involved in
this method:
Out of all rows and columns in the transportation table, select that cell which has the
lowest (minimum) transportation cost.
Where the smallest cost is not unique i.e., there are her cells having the same smallest
cost, select any cell which has this smallest cost.
To the cell chosen in the above step, allocate maximum possible units. Eliminate that
row or the column where either the demand is satisfied or the supply is exhausted.
For the reduced table so obtained, repeat the above st s till total demand and supply
are exhausted.
The Steps involved in this method are given below:-
NOTES
Step I
Step II
Remarks
Step III
Step IV
Step V
Remarks
1.3.1 Methods Employed to Find the Optimal Solution to a Transportation Problem
a. Stepping Stone Method
Step I
Step II
Calculate the penalty for all rows and columns. (Penalty is the difference between the
smallest and the next smallest cost)
Select the row or column having maximum penalty. In th row or column, select the
cell having the least cost. Allocate maximum possible its (quantity) to this lowest cost
cell.
In case of a tie, select the row/column having minimum cost. If, still, a tie persists,
select the row/column having the maximum possible assignments or you may simply select
any row or column in case of a tie without considering minimum costs.
Reduce the demand or supply by the amount assigned to he cell.
If row supply is zero, eliminate it
If column demand is zero, eliminate it
If both are zero, eliminate both.
Again calculate penalty and repeat the same steps.
At the end, check that the total number of filled cell = M + N 1. only then the initial
solution would be feasible. If filled cells are < M + 1, an empty cell is to be filled in a
particular manner.
Basically 2 methods are widely used:-
The main steps involved in this method are as follows.
After determining the initial feasible solution, check that the number of occupied cells
is equal to M + N 1 (M rows, N columns).
Test each of the unoccupied cells for evaluating its cost effectiveness as under:
DMC 1752
NOTES
turning points stepping stones.
Step III
Step IV
b. Modified Distribution (MODI) Method
Step I
Step II
Step III
Step IV
i. Select an empty cell. Use the most direct route horizontally or vertically which
passes through 3 or more occupied cells to trace a closed path. The cells at the
: are known as
ii. Each corner cell of the path so traced is assigned a positive (+) and a negative
( ) sign alternately. Start with the unoccupied cell which is to be evaluated and
assign this cell a positive (+) sign.
iii. Sum all the unit cost figures in each cell having a po tive sign and then subtract all
the unit cost figures having a negative sign. This gives the net change in the cost.
This step has to be repeated till the cost is calculated for all the unoccupied cells.
An optimum solution is reached, when all the net changes so calculated are 0.Where
such an optimum solution has not been reached, go to S IV.
The highest negative net cost unoccupied cell is selec ed. Find the maximum units that
can be given to a cell having negative sign on the clo path relative to the unoccupied
cell. This number has to be added to the unoccupied an all other cells on the closed path
having a positive sign. Finally, this number is to be btracted from cells on the path which
have a minus sign. The process must be repeated till a optimal solution is obtained.
The following are the steps involved in the Modified D tribution (MODI) method of
testing the optimality of a feasible solution in a transportation problem:-
By using any one of the three methods discussed above, obtain an initial feasible
solution, having M + N 1 allocation in independent p ition.
Assign an arbitrary value (zero) to one of the variabl s without violating the equations.
(Since there are M + N 1 occupied cells, there will M + N 1 equation).
For every empty cell, calculate the improvement index .e.; its opportunity cost. This
has to be calculated by adding the corresponding row and column number and then
subtracting the actual cost of this cell from it. The olution is optimal, if the opportunity cost
of all the empty cells > 0.
Where the solution is not optimal i.e.; we have empty lls with negative improvement
index (opportunity cost), select the empty cell having the largest value of negative opportunity
cost.

NOTES
Step V
Step VI
Remarks
1.4 EXAMPLES
1.4.1 Transportation Example 1:
Is this a BFS?
For the empty cell selected in Step IV, draw a closed and assign alternate
positive (+) and negative (-) signs at the empty cell lying on the corner points of the path.
The cell being evaluated i.e. as selected in Step IV will have a positive (+) sign.
Repeat this procedure till an optimal solution is achieved.
Both the stepping stone method and MODI differ in approach but provide the same
optimal solution. i.e.; both give the solution (to the transportation problem) having the
lowest shipping costs.
Initial solution: x
11
= 5, x
12
= 10, x
23
= 15, x
34
= 5, x
35
= 10
Criterion for BFS: m + n - 1 basic variable, where m = 3 and n = 5. Seven basic
variables are required and need to identify 2 more variables as basic: let x
22
= 0, x
33
=0
45 dj Si : Note
N
1 J
M
1 i
= = =

= =
DMC 1752
NOTES
Initial BFS:
Dependent Cells: Possible to trace a closed path through them.
In table below, the dependent cells are marked by and form a closed path. The
variables associated with those cells are 12, 15, 22, 23, 33 and 35.
Compute dual variables (u
i
, v
j
) and reduced costs (w
ij
):
Is the solution optimal?
If not, how do we improve it?
x x x x x x
NOTES
Algorithm
1.4.2 Example 2 (Using Simplex method)
Solution:
Consider a transport company which has to supply 4 units of paper materials from
each of the cities Faizabad and Lucknow to three citie The material is to be supplied to
Delhi, Ghaziabad and Bhopal with demands of four, one d three units respectively. Cost
of transportation per unit of supply ( ) is indicated below in the figure. Decide the pattern
of transportation that minimizes the cost.
Let the amount of material supplied from source to sink be . Here
Total supply = 8 units and total demand = 4+1+3 = 8 units. Since both are equal, the
problem is balanced. The objective function is to mini ze the total cost of transportation
from all combinations i.e.
Minimize
Minimize
Subject to the constraints as explained below:
(1) The total amount of material supplied from each source city should be equal to 4.
4 X
3
1 J
ij
2 , 1 I
i.e. x
11
+ x
12
+ x
13
= 4 for i = 1
x
21
+ x
22
+ x
23
= 4 for i = 2
Faizabad
Lucknow
Delhi
Ghaziabad
Bhopal
C = 3 12
C = 4 21
C = 5 11
C = 1 22
C = 8 13
C = 7 23
c
ij
i j x
ij
m =2; n = 3.
f = 5 x
11
+ 3 x
12
+ 8 x
13
+ 4 x
21
+ x
22
+ 7 x
23
=

= =
DMC 1752
NOTES
(2) The total amount of material received by each destination city should be equal to the
corresponding demand.
j = 1 ,2, 3
i.e. x
11
+ x
21
= 4 for j = 1
x
12
+ x
22
= 1 for j = 2
x
13
+ x
23
= 3 for j = 3
(3) Non negativity constraints
X
ij
i = 1, 2; j=1, 2, 3
Thus, the optimization problem has 6 decision variables and 5 constraints. Since the
optimization model consists of equality constraints, Big M method is used to solve. The
steps are shown below. Since there are five equality constraints, introduce five artificial
variables R
1
, R
2
, R
3
, R
4
and R
5
. Thus, the objective function and the constraints can be
expressed as
Minimize
subject to
Modifying the objective function to make the coefficients of the artificial variable
equal to zero, the final form objective function is
The solution of the model using simplex method is shown
x
11
+ x
12
+ x
13
+ R
1
= 4
x
21
+ x
22
+ x
23
+ R
2
= 4
x
11
+ x
21
+ R
3
= 4
x
12
+ x
22
+ R
4
= 1
x
13
+ x
23
+ R
5
= 3
NOTES
Table 1
Table 2
Table 3
Variables Basic
variables
RHS Ratio
Variables Basic
variables
RHS Ratio
Variables Basic
variables
RHS Ratio
First iteration
Second iteration
Third iteration
x
11
x
12
x
13
x
21
x
22
x
23
R
1
R
2
R
3
R
4
R
5
x
11
x
12
x
13
x
21
x
22
x
23
R
1
R
2
R
3
R
4
R
5
x
11
x
12
x
13
x
21
x
22
x
23
R
1
R
2
R
3
R
4
R
5
Z
-5
+2M
-3
+2M
-8
+2M
-4
+2M
-1
+2M
-7
+2M
0 0 0 0 0 16M
R
1
1 1 1 0 0 0 1 0 0 0 0 4 -
R
2
0 0 0 1 1 1 0 1 0 0 0 4 4
R
3
1 0 0 1 0 0 0 0 1 0 0 4 -
R
4
0 1 0 0 1 0 0 0 0 1 0 1 1
R
5
0 0 1 0 0 1 0 0 0 0 1 3 -
Z
-5
+2M
-1
-8
+2M
-4
+2M
0
-7
+2M
0 0 0
1-
2M
0
1+14
M
-
R
1
1 1 1 0 0 0 1 0 0 0 0 4 -
R
2
0 -1 0 1 1 1 0 1 0 -1 0 3 3
R
3
1 0 0 1 0 0 0 0 1 0 0 4 4
X
22
0 1 0 0 1 1 0 0 0 1 0 1 -
R
5
0 0 1 0 0 1 0 0 0 0 1 3 -
Z
-5
+2M
-5
+2M
-8
+2M
0 0
-7
+2M
0
-4
2M
0 -3 0 13+8M -
R
1
1 1 1 0 0 0 1 0 0 0 0 4 4
X
21
0 -1 0 1 0 0 0 1 0 -1 0 3 -
R
3
1 0 0 0 0 0 0 -1 1 1 0 1 1
X
22
0 1 0 0 1 1 0 0 0 1 0 1 -
R
5
0 0 1 0 0 1 0 0 0 0 1 3 -
DMC 1752
NOTES
Table 4
1.5 EXERCISES
Solution:
Wh1 Wh2 Wh3 Wh4 Production
Variables
Basic variables RHS Ratio
Fourth iteration
Repeating the same procedure, we get the final optimal solution and the
optimum decision variable values as :
1. Consider three factories (F) located in three different cities, producing a particular
chemical. The chemical is to be transported to four di ferent warehouses (Wh), from where
it is supplied to the customers. The transportation cost per truck load from each factory to
each warehouse is determined and are given in the table below. Production and demands
are also given in the table below.
Let the amount of chemical to be transported from factory to warehouse be .
Total supply = 60+110+150 = 320 and total demand = 65+85+80+70 = 300. Since the
total demand is less than total supply, add one fictitious ware house, Wh5 with a demand
of 20. Thus, here
F1 523 682 458 850 60
F2 420 412 362 729 110
F3 670 558 895 695 150
Demand 65 85 80 70
Z 0 0
-8
+2M
0 0
-7
+2M
0 -1
5-
2M
2-
2M
0 18+6M -
R
1
0 0 1 0 0 0 1 1 -1 -1 0 3 -
X
21
0 -1 0 1 0 0 0 1 0 -1 0 3 -
X
11
1 1 0 0 0 0 0 -1 1 1 0 1 -
X
22
0 1 0 0 1 1 0 0 0 1 0 1 1
R
5
0 0 1 0 0 1 0 0 0 0 1 3 3
f = 42
x
11
= 2.2430, x
12
= 0.00, x
13
= 1.7570, x
21
=
1.7570, x
22
= 1.00, x
23
= 1.2430.
i j x
ij
m =3; n = 5
x
11
x
12
x
13
x
21
x
22
x
23
R
1
R
2
R
3
R
4
R
5
NOTES
1.6 FINDINGAN OPTIMAL SOLUTION
Steps
Wh1 Wh2 Wh3 Wh4 Wh5 Production
The objective function is to minimize the total cost of transportation from all
combinations.
After computing an initial basic feasible solution, we must now proceed to determine
whether the solution so obtained is optimal or not. Th next section, we will discuss about
the methods used for finding an optimal solution.
Stepping Stone Method:
It is a method for finding the optimum solution of a transportation problem.
1. Determine an initial basic feasible solution using any one of the following:
North West Corner Rule
Matrix Minimum Method
Vogel Approximation Method
2. Make sure that the number of occupied cells is exactly equal to m+n-1, where m
is the number of rows and n is the number of columns.
3. Select an unoccupied cell. Beginning at this cell, tra a closed path, starting from
the selected unoccupied cell until finally returning t that same unoccupied cell.
The cells at the turning points are called Stepping S es on the path.
4. Assign plus (+) and minus (-) signs alternatively on each corner cell of the closed
path just traced, beginning with the plus sign at unoccupied cell to be evaluated.
5. Add the unit transportation costs associated with each of the cell traced in the
closed path. This will give net change in terms of cost.
6. Repeat steps 3 to 5 until all unoccupied cells are evaluated.
7. Check the sign of each of the net change in the unit transportation costs. If all the
net changes computed are greater than or equal to zero, an optimal solution has
been reached. If not, it is possible to improve the current solution and decrease
the total transportation cost, so move to step 8.
F1 523 682 458 850 0 60
F2 420 412 362 729 0 110
F3 670 558 895 695 0 150
Demand 65 85 80 70 20

DMC 1752
NOTES
1.7 EXAMPLES
1.7.1 Example 3
Solution.
Depot
Factory D E F G Capacity
A
B
C
Requirement
Depot
Factory D E F G Capacity
A
B
C
Requirement
8. Select the unoccupied cell having the most negative ne cost change and determine
the maximum number of units that can be assigned to th s cell. The smallest value
with a negative position on the closed path indicates e number of units that can
be shipped to the entering cell. Add this number to the unoccupied cell and to all
other cells on the path marked with a plus sign. Subtr t this number from cells on
the closed path marked with a minus sign.For clarity of exposition, consider the
following transportation problem.
A company has three factories A, B, and C with production capacity 700, 400, and
600 units per week respectively. These units are to be shipped to four depots D, E, F, and
G with requirement of 400, 450, 350, and 500 units per week respectively. The
transportation costs (in Rs.) per unit between factories and depots are given below
The decision problem is to minimize the total transpor ation cost for all factory-depot
shipping patterns.
An initial basic feasible solution is obtained by Matr Minimum Method and is shown
below in table 1.
4 6 8 6 700
3 5 2 5 400
3 9 6 5 600
400 450 350 500 1700
4 8 700
5 5 400
9 6 600
400 450 350 500 1700
NOTES
Table 1
Here, m + n - 1 = 6. So the solution is not degenerate.
Initial basic feasible solution
6 X 450 + 6 X 250 + 3 X 50 + 2 X 350 + 3 X 350 + 5 X 250 = 7350
The cell AD (4) is empty so allocate one unit to it. Now draw a closed path from AD. The
result of allocating one unit along with the necessary adjustments in the adjacent cells is
indicated in table 2.
Table2
Please note that the right angle turn in this path is ermitted only at occupied cells and
at the original unoccupied cell.The increase in the tr portation cost per unit quantity of
reallocation is 4 6 + 5 3 =0.
This indicates that every unit allocated to route AD will neither increase nor decrease
the transportation cost. Thus, such a reallocation is necessary.
Choose another unoccupied cell. The cell BE is empty s allocate one unit to it. Now
draw a closed path from BE as shown below in table 3.
Table 3
The increase in the transportation cost per unit quant of reallocation is +5 6 + 6
5 + 3 3 = 0
This indicates that every unit allocated to route BE will neither increase nor decrease
the transportation cost. Thus, such a reallocation is necessary.
Evaluate all such unoccupied cells in this manner by f nding closed paths and calculating
the net cost change as shown below.
DMC 1752
NOTES
Minimum transportation cost is:
1.8 DEGENERACY
1.9 EXAMPLES
1.9.1 Example 4
Unoccupied cells
Increase in cost per unit
of reallocation
Remarks
CE
CF
AF
BG
Dealer Factory
1 2 3 4
Supply
A
B
C
Requirement
Since all the values of unoccupied cells are greater t n or equal to zero, the solution
obtained is optimal.
6 X 450 + 6 X 250 + 3 X 50 + 2 X 350 + 3 X 350 + 5 X 250 = Rs. 7350
If the basic feasible solution of a transportation pro lem with m origins and n destinations
has fewer than m + n 1 positive x
ij
(occupied cells), the problem is said to be a degener e
transportation problem.
Degeneracy can occur at two stages:
At the initial solution
During the testing of the optimal solution
To resolve degeneracy, making use of an artificial quantity ( ),the quantity is assigned
to that unoccupied cell, which has the minimum transpo tation cost. For calculation purposes,
the value of is assumed to be zero.
The use of is illustrated in the following example.
+9 5 + 6 6 = 4 Cost Increases
+8 6 + 5 3 + 3 2 = 5 Cost Increases
+5 5 + 3 3 = 0 Neither increase
nor decrease
2 2 2 4 1000
4 6 4 3 700
3 2 1 0 900
900 800 500 400
d d
d
d
NOTES
Solution
Table 1
Dealer Factory
1 2 3 4
Supply
A
B
C
Requirement
Dealer Supply Factory
1 2 3 4
A
B
C
Requirement
An initial basic feasible solution is obtained by Matr x Minimum Method.
Number of basic variables =m+n1=3+41=6. Since number of basic variables is
less than 6,it is a degenerate transportation problem.
To resolve degeneracy, making use of an artificial qua ity (d),the quantity d is assigned
to that unoccupied cell, which has the minimum transpo ation cost. The quantity d is so
small that it does not affect the supply and demand co traints.
In the above table, there is a tie in selecting the smallest unoccupied cell. In this
situation, choose any cell arbitrarily.Select the cell C2 as shown in the following table.
2 4 1000
4 4 3 700
3 2 900
900 800 500 400
2 4 1000
4 4 3 700
3 900 + d
900 800 + d 500 400 2600 + d
DMC 1752
NOTES
Table 2
Table 3
Unoccupied
cells
Increase in cost per
unit of reallocation
Remarks
A3
A4
B1
B3
B4
C1
Dealer Factory
1 2 3 4
Supply
A
B
C
Requirement
Now, use the stepping stone method to find an optimal olution.
Calculating opportunity cost
The cell B1 is having the maximum improvement potential, which is equal to -2. The
maximum amount that can be allocated to B1 is 700 and is will make the current basic
variable corresponding to cell B2 non basic. The impro ed solution is shown in the following
table.
The optimal solution is
2 X 200 + 2 X 800 + 4 X 700 + 2 X d + 1 X 500 + 0 X 400 = 5300 + 2d.
Notice that is a very small quantity so it can be neglected in the optimal solution. Thus,
the net transportation cost is Rs. 5300
+4 6 + 2 2 = 2 Cost Decreases
2 4 1000
6 4 3 700
3 900
900 800 500 400 2600
d
NOTES
1.10 EXERCISE
Consider the transportation problem having the followi parameter table
A) This problem has 3 special characteristics:
Number of sources= Number of destination
Each supply=1
Each destination=1
Transportation problem with 3 characteristics are of a special type called the
assignment problem. Use the integer solution property explain why this type of
transportation problem can be interpreted as assigning sources to destination on a one-to-
one basis.
B) How many basic variables are there in every BF solutio How many of these are
degenerate basic variable (=0)?
Destination
1 2 2 2 Supply
1 7 4 1 4
2 4 6 7 2 1
Source 3 8 5 4 6 1
4 6 7 6 3 1
Demand 1 1 1 1
DMC 1752
NOTES
CHAPTER 2
VARIANTS OF THE ASSIGNMENT PROBLEM
2.1 ASSIGNMENT PROBLEM
Structure of assignment problem
2.1.1 Formulation of assignment problem
We have already discussed about one of the benchmark problems called transportation
problem and its formulation. The assignment problem is a particular class of transportation
linear programming problems with the supplies and demands equal to integers (often 1).
Since all supplies, demands, and bounds on variables a integers, the assignment problem
relies on an interesting property of transportation pr lems that the optimal solution will be
entirely integers. in this section, the structure and rmulation of assignment problem are
discussed. Also, traveling salesman problem, which is special type of assignment problem,
is described.
As mentioned earlier, assignment problem is a special ype of transportation problem
in which
1. Number of supply and demand nodes is equal.
2. Supply from every supply node is one.
3. Every demand node has a demand of one.
4. Solution is required to be all integers.
The goal of a general assignment problem is to find an optimal assignment of machines
(laborers) to jobs without assigning an agent more than once and ensuring that all jobs are
completed. The objective might be to minimize the tota time to complete a set of jobs, or
to maximize skill ratings, maximize the total satisfac ion of the group or to minimize the cost
of the assignments. This is subjected to the following requirements:
1. Each machine is assigned not more than one job.
2. Each job is assigned to exactly one machine.
Consider labourers to whom tasks are assigned. No labourers can either sit idle
or do more than one task. Every pair of person and assigned work has a rating. This
ratingmay be cost, satisfaction, penalty involved or time taken to finish the job. There will
be such combinations of persons and jobs assigned. Thus, he optimization problem is
to find such man- job combinations that optimize the sum of ratings among all. The
formulation of this problem as a special case of trans rtation problem can be represented
by treating as and the as . The supply available at
each source is 1 and the demand required at each destination is 1.The cost of assigning
(transporting) laborer to task is
m n
N
2
laborers sources tasks destinations
i j c
ij
NOTES
2.2 EXAMPLES
2.2.1 Example 1
Table 1
It is necessary to first balance this problem by adding a dummy laborer or task
depending on whether m<n or m>n, respectively. The cos coefficient for this dummy
will be zero.
Let
Thus the above model can be expressed as
Since each task is assigned to exactly one laborer and each laborer is assigned only
one job, the constraints are
Due to the special structure of the assignment problem the solution can be found out
using a more convenient method called Hungarian method which will be illustrated through
an example below.
:
Consider three jobs to be assigned to three machines. he cost for each combination
is shown in the table below. Determine the minimal job machine combinations.
Machine
Job
1 2 3
1 5 7 9 1
2 14 10 12 1
3 15 13 16 1
1 1 1
c
ij
a
i
b
j
DMC 1752
NOTES
Solution:
Step 1:
Table 2
Step 2:
Table 3
2.2.2 Example 2
Table 4
Create zero elements in the cost matrix (zero assignment) by subtracting the smallest
element in each row (column) from the corresponding ro (column). After this exercise,
the resulting cost matrix is obtained by subtracting 5 from row 1, 10 from row 2 and 13
from row 3.
Repeating the same with columns, the final cost matrix is
The italicized zero elements represent a feasible solu on. Thus the optimal assignment
is (1,1), (2,3) and (3,2). The total cost is equal to (5 +12+13). In the above example,
it was possible to obtain the feasible assignment. But in more complicated problems,
additional rules are required which are explained in t next example.
Consider four jobs to be assigned to four machines. Th cost for each combination is
shown in the table below. Determine the minimal job achine combinations.
1 2 3
1 0 2 4
2
4 0 2
3
2 0 3
1 2 3
1 2 2
2 4 0
3 2 3
Machine
Job
1 2 3 4
1 1 4 6 3 1
2 8 7 10 9 1
3 4 5 11 7 1
4 6 7 8 5 1
1 1 1 1
0
0
0
a
i
b
j
NOTES
Solution:
Step 1:
Step 2:
Table 5
Step 3:
Table 6
Step 4:
Table 7
Create zero elements in the cost matrix by subtracting the smallest element in each
row from the corresponding row.
Repeating the same with columns, the final cost matri is
Rows 1 and 3 have only one zero element. Both of these are in column 1, which
means that both jobs 1 and 3 should be assigned to machine 1. As one machine can be
assigned with only one job, a feasible assignment to t zero elements is not possible as in
the previous example.
Draw a minimum number of lines through some of the rows and columns so that all
the zeros are crossed out.
Select the smallest uncrossed element (which is 1 here). Subtract it from every
uncrossed element and also add it to every element at he intersection of the two lines. This
will give the following table.
1 2 3
4
1
0 3 5 2
2 1 0 3 2
3 0 1 7 3
4 1 2 3 0
1 2 3
4
1
2 1 1
2 2 0 2
3 0 3 2
4
2 2 0
1 2 3 4
1 0 3 2 2
2 1 0 0 2
3 0 1 4 3
4 1 2 0 0
0
0
0
0
DMC 1752
NOTES
Formulation of Traveling Salesman Problem (TSP) as an signment Problem
Solution Procedure
2.2.3 Example 3:
This gives a feasible assignment (1,1), (2,3), (3,2) and (4,4) with a total cost of
1+10+5+5 = 21. If the optimal solution had not been obtained in the last step, then the
procedure of drawing lines has to be repeated until a easible solution is achieved.
A traveling salesman has to visit cities and return to the starting point. He has to st t
from any one city and visit each city only once. Suppo he starts from the city and the
last city he visited is . Let the cost of travel from city to city be . Then the
objective function is
Subject to the constraints
Solve the problem as an assignment problem using the method used to solve the
above examples. If the solutions thus found out are cyclic in nature, then that is the final
solution. If it is not cyclic, then select the lowest try in the table (other than zero). Delete
the row and column of this lowest entry and again do t zero assignment in the remaining
matrix. Check whether cyclic assignment is available. f not, include the next higher entry in
the table and the procedure is repeated until a cyclic assignment is obtained.
The procedure is explained through an example below.
Consider a four city TSP for which the cost between the city pairs are as shown in the
figure below. Find the tour of the salesman so that the cost of travel is minimal.
n
k
th
m i
th
j
th
c
ij
NOTES
Table 8
Solution:
Step 1:
Table 9
Step 2:
The optimal solution after using the Hungarian method is shown below.
The optimal assignment is 1 4, 2 3, 3 2, 4 1 which is not cyclic.
Consider the lowest entry 2 of the cell (2,1). If there is a tie in selecting the lowest
entry, then break the tie arbitrarily. Delete the 2
nd
row and 1
st
column. Do the zero assignment
in the remaining matrix. The resulting table is
1 2 3 4
1 4 9 5
2 6 4 8
3 9 4 9
4 5 8 9
1 2 3 4
1 0 5
2 2 3
3 5 4
4 3 4

0
0
0
0
DMC 1752
NOTES
Table 10
2.3 EXERCISE
Timematrix (Time in hrs.)
Thus the next optimal assignment is 1 4, 2 1, 3 2, 4 3 which is cyclic. Thus
the required tour is 1 4 3 2 1 and the total travel cost is 5 + 9 + 4 + 6 = 24.
1. Study the following problem:-
Solve this assignment problem so as to minimize the time in hours.
2. A job has four men available for work on four separ te jobs. Only one man can work on
any one job. The cost of assigning each man to each job is given in the following table. The
objective is to assign men to jobs such that the total cost of assignment is minimum.
Job Person
1 2 3 4
1 6 12 3 7
2 13 10 12 8
3 2 5 15 20
4 2 7 8 13
Jobs
Person 1 2 3 4
A 20 25 22 28
B 15 18 23 17
C 19 17 21 24
D 25 23 24 24

NOTES
2.4 ASSIGNMENT MODELS-VARIANTS
minimization
technique
1. Maximization-Objective Problem
2. Unbalanced Problem
3. Multiple Solutions
4. Traveling Salesman Problem
Variants of assignment models

Method for solving complex problems
There are Important Variations although the assignment problem is a
, being a special type of Linear Programming Problem. ransportation model,
can be applied in the following diverse situations:
The Hungarian model is fully capable of solving an assignment problem where the
objective is to maximize the total pay-offs. However, efore the successful application of
Hungarian technique, such type of maximization problem should first to be converted into
minimization problems.
Ideally, an assignment problem is easily solvable in the case of a square matrix (i.e.
where the total number of rows and columns are equal). However, where the number of
rows and number of columns the assignment problem is not a square matrix. Such an
assignment problem is known as an unbalanced assignment problem. In this case, before
applying the Hungarian method, the problem is balanced in the room of a square matrix by
adding dummy rows or columns as required.
Sometimes, there may be multiple (more than 1) optimal solution to an assignment
problem each having the same total pay-off. In Such ca s selecting a particular solution
out of equally suitable alternatives, depends upon discretion of the management. The optimal
value best suited to the organizational requirements is thus selected.
The traveling salesman problem is peculiar to almost a l the manufacturing and marketing
companies who employ salesmen in their channels of dis ribution to push the final product
to the next channel i.e.; the whole-seller, a retailer or the end users. A traveling salesman
must visit all the locations (cities, towns) in his as igned territory. The traveling plan is to be
created in such a manner that each and every location visited exactly once and the
salesman arrives back at the location from where he started his journey (i.e.back to the
starting or initiation point). The exact distances (also the time and related costs) between
any two locations is determined before hand and the objective is to make an optimal
traveling plan which represents the least distance to covered in attaining the objective.
DMC 1752
NOTES
Remarks
For number of locations to be visited, the total possible in which it can be
achieved is (n-1)! Ways. For example, assume the total number of locations to be visited
is 4. Having started his journey, the traveling salesman can choose anyone of the 3
destinations in 3 ways (i.e.; one out of three possibl choices). Having visited a particular
location, he must now visit the remaining 2 locations. This can be done in 2 ways, by
choosing one location out of possible 2.Similarly there will be only one way in which the
last remaining location can be visited. Thus, the enti territory can be traveled in 3 x 2 x 1
= 3! ways. The above problem can also be represented mathematically as under: - 1,
where salesman travels from city i to city J xij = {0, in all other cases. Where:-
Cij = distance (also cost or time) between the city to = infinite, when =
This implies that a salesman can not travel from one l ation to the same location.
n
i j i j
NOTES
UNIT III
CHAPTER 1
INTEGER LINEAR PROGRAMMING
1.1 INTEGER LINEAR PROGRAMMING
Introduction
1.1.2 Types of Integer Programming
1.1.3 Integer Linear Programming
In linear programming, the design variables considered are supposed to take any real
value. However in practical problems like minimization of labor needed in a project, it
makes little sense in assigning a value like 5.6 to the number of labourers. In this situation,
one natural idea for obtaining an integer solution is ignore the integer constraints and use
any of the techniques previously discussed and then round-off the solution to the nearest
integer value. However, there are several fundamental oblems in using this approach:
1. The rounded-off solutions may not be feasible.
2. The objective function value given by the rounded-off lutions (even if some are
feasible) may not be the optimal one.
3. Even if some of the rounded-off solutions are optimal, checking all the rounded-
off solutions is computationally expensive (
2
possible round-off values to be
considered for an variable problem)
When all the variables in an optimization problem are estricted to take only integer
values, it is called an . When the variables are restricted
to take only discrete values, the problem is called a .
When only some variable values are restricted to take nteger or discrete, it is called
. When the variables are constrained to take
values of either zero or one, then the problem is call .
Integer Linear Programming (ILP) is an extension of linear programming, with an
additional restriction that the variables should be in ger valued. The standard form of an
ILP is of the form,
n
n
all integer programming problem
discrete programming problem
mixed
integer or discrete programming problem
zero one programming problem
X must be integer valued
DMC 1752
D C
B
A
NOTES
1.1.4 Gomorys Cutting Plane Method for All Integer Programming
The associated linear program dropping the integer restrictions is called
Thus, LR is less constrained than ILP. If the objectiv function coefficients are
integer, then for minimization, the optimal objective r ILP is greater than or equal to the
rounded-off value of the optimal objective for LR. For maximization, the optimal objective
for ILP is less than or equal to the rounded-off value of the optimal objective for LR.
For a minimization ILP, the optimal objective value fo LR is less than or equal to the
optimal objective for ILP and for a maximization ILP, he optimal objective value for LR is
greater than or equal to that of ILP. If LR is infeasible, then ILP is also infeasible. Also, if
LR is optimized by integer variables, then that solution is feasible and optimal for IP. A
most popular method used for solving all-integer and mixed-integer linear programming
problems is the cutting plane method by Gomory (Gomory 1957).
Consider the following optimization problem.
The graphical solution for the of this problem is shown below.
0 X
b AX to subject
X c max
T
0 x , x
45 x 9 x 3
6 x x 2 to subject
x x 3 Z Maximize
2 1
2 1
2 1
2 1
7
4
17
7
3
3 ,
7
5
4
6 2
2 1
45 9 3
2 1
linear
relaxation
LR.
x
1
and x
2
are integers
linear relaxation
Z
x x
x x
+

+ =
=
( )

+
0 1 2 3 4 5 6 7
0
1
2
3
4
5
6
7
x
1
x
2
(4,3)
NOTES
It can be seen that the solution is
7
3
3 x ,
7
5
4 x
2 1
and the optimal value of
7
4
17 Z . The feasible solutions accounting the integer constraints are shown by red
dots. These points are called integer lattice points. he original feasible region is reduced
to a new feasible region by including some additional aints such that an extreme
point of the new feasible region becomes an optimal solution after accounting for the integer
constraints.
The graphical solution for the example previously discussed taking and as
integers are shown below. Two additional constraints (MN and OP) are included so that
the original feasible region ABCD is reduced to a new easible region AEFGCD. Thus the
solution for this ILP is and the optimal value is.
Gomary proposed a systematic method to develop these a itional constraints known as
. Generation of Gomory Constraints:
Let the final table of an LP problem consist of basic variables (original variables) and
non basic variables (slack variables) as shown in the le below. The basic variables are
represented as (i=1,2,,n) and the non basic variables are represente as y
j
(j=1,2,,m).
7
3
3 ,
7
5
4
15
7
4
17
= =
=
( )
=
=
x
1
x
2
Gomory constraints
n m
x
i
Z
Z
0 1 2 3 4 5 6 7
0
1
2
3
4
5
6
7
D C
B
A
Additional constraints
G
E
F
x
1
x
2
O
P
M
N
DMC 1752
NOTES
Table 1
Choose any basic variable
i
x with the highest fractional value. If there is a tie etween two
basic variables, arbitrarily choose any of them as
i
x . Then from the equation of table,
m
1 j
j ij i i
y c b x
.. (1)
Express both
i
b and
ij
c as an integer value plus a fractional part.
) 3 ........( c c
) 2 ........( b b
ij ij ij
i i i
Where
i
b ,
ij
c denote the integer part and
i
,
ij
denote the fractional part
i
will be a
strictly positive fraction 1 0
i
and is a non-negative fraction 1 0
ij
.
Substituting equations (2) and (3) in (1), equation (1 can be written as
m
1 j
j ij i i j
m
1 j
ij i
y c b x y
. (4)
For all the variables
i
x and
j
y to be integers, the right hand side of equation (4) should
be an integer.
j
m
1 j
ij i
y
integer (5)
Since
ij
are non-negative integers and
j
y are non-negative integers, the term j
m
1 j
ij
y
will always be a non-negative number. Thus we have,
Variables
Basis Z
1 2
1 2

Z 1 0 0 0 0
1
0 1 0 0 0
1
2
0 0 1 0 0
2
0 0 0 1 0
0 0 0 0 1
i
th
x x
i
x
n
x y y
j
y
m
y
r
b
c
1
c
2
c
j
c
m
b
x c
11
c
12
c
1j
c
1m
b
x c
21
c
22
c
2j
c
2m
b
i
x c31 c32 c3j c3m i
b
n
x c
41
c
42
c
4j
c
4m n
b
=
=
+ =
+ =

( ) < <
( ) <

= =
=
=

=

=

NOTES
1.1.5 General procedure for solving ILP
1 y
i j
m
1 j
ij i . (6)
Hence the constraint can be expressed as
0 y
j
m
1 j
ij i . (7)
By introducing a slack variable (which should also be n integer), the Gomory constraint
can be written as
i j
m
1 j
ij i
y s
. (8)
1. Solve the given problem as an ordinary LP problem negl cting the integer constraints.
If the optimum values of the variables are integers it lf, then there is nothing more
to be done.
2. If any of the basic variables has fractional values, i roduce the Gomory constraints
as discussed in the previous section. Insert a new row with the coefficients of this
constraint to the final table of the ordinary LP probl (Table 1).
3. Solve this by applying the dual simplex method. Since e value of in Table 1, the
Gomory constraint equation becomes which is a negativ value and thus infeasible.
Dual simplex method is used to obtain a new optimal solution that satisfies the
Gomory constraint.
4. Check whether the new solution is all-integer or not. all values are not integers,
then a new Gomory constraint is developed from the new simplex table and the
dual simplex method is applied again.
5. This process is continued until an optimal integer solution is obtained or it shows
that the problem has no feasible integer solution.
Thus, the fundamental idea behind cutting planes is to add constraints to a linear
program until the optimal basic feasible solution takes on integer values. A Gomory cut
have the property that they can be generated for any integer program, but has the
disadvantage that the number of constraints generated n be enormous depending upon
the number of variables.
<

=

=
=
=
DMC 1752
NOTES
CHAPTER 2
MIXED INTEGER PROGRAMMING
2.1 MIXED INTEGER PROGRAMMING
Introduction
Mixed Integer Programming
2.2 Generation of Gomory Constraints
In the previous chapter we have discussed the procedur for solving integer linear
programming in which all the decision variables are re ricted to take only integer values.
In a Mixed Integer Programming (MIP) model, some of th variables are real valued and
some are integer valued. When the objective function and constraints for a MIP are all
linear, then it is a Mixed Integer Linear Program (MILP). Although Mixed Integer Nonlinear
Programs (MINLP) also exists, in this chapter we will dealing with MILP only.
In mixed integer programming (MIP), only some of the d cision and slack variables
are restricted to take integer values. Gomory cutting ne method is used popularly to
solve MIP and the solution procedure is similar in many aspects to that of all-integer
programming. The first step is to solve the MIP problem as an ordinary LP problem
neglecting the integer restrictions. The procedure ends if the values of the basic variables
which are constrained to take only integer values happen to be integers in this optimal
solution. If not, a Gomory constraint is developed for the basic variable with integer restriction
and has largest fractional value which is explained below. The rest of the procedure is
same as that of all-integer programming.
Let be the basic variable which has integer restricti n and also has largest fractional
value in the optimal solution of ordinary LP problem. hen from the equation of table,
m
1 j
j ij i i
y c b x
As explained in all-integer programming, express as an integer value plus a fractional
part.
i i i
b b .(1)
ij
c Can be expressed as
ij ij ij
c c c
i
th
=
=
+ =
+
+ =
NOTES
Case I
Case II
Where
0 c if c
0 c if 0
c
0 c if 0
0 c if c
c
ij ij
ij
ij
ij
ij ij
ij
Therefore,
i i i j
m
1 j
ij ij
x b y c c
Since
i
x is restricted to be an integer
i
b , is also an integer and 1 0
i
, the value of
i i i
x b can be
0
or <0.
:
i i i
x b 0
For
i
x to be an integer, ,.... 2 or 1 or x b
i i i i i i
Therefore,
i j
m
1 j
ij ij
y c c
Finally it takes the form
i j
m
1 j
ij
y c
:
i i i
x b <0
For to be an integer,
,.... 3 or 2 or 1 x b
i i i i i i
Therefore,
1 y c c
i j
m
1 j
ij ij
<
<
+
( ) ( ) + = +
=
+
< <
( ) +
( ) +
( ) + + = +
( ) +
=
+

=
+
( ) +
( ) + + + = +
( ) +
=
+
DMC 1752
NOTES
2.3 EXAMPLE
Example of Cutting plane method for MILP
Step 1
Finally it takes the form
1 y c
i j
m
1 j
ij
Dividing this inequality by 1
i
and multiplying with, we have
i j
m
1 j
ij
i
i
y c
1
Considering both cases I and II, the final form of the inequality becomes (since one of the
inequalities should be satisfied)
i j
m
1 j
ij
i
i
j
m
1 j
ij
y c
1
y c
Then, the Gomory constraint after introducing a slack ariable is
i j
m
1 j
ij
i
i
j
m
1 j
ij i
y c
1
y c s
Generate the Gomory constraint for the variables havin integer restrictions. Insert
this constraint as the last row of the final table of problem and solve this using dual
simplex method. MIP techniques are useful for solving ure-binary problems and any
combination of real, integer and binary problems.
Consider the example previously discussed with integer constraint only on.The
standard form for the problem is
0 y , y , x , x
45 y x 9 x 3
6 y x x 2 to subject
x x 3 Z Maximize
2 1 2 1
2 2 1
1 2 1
2 1
2
x should be an integer
: Solve the problem as an ordinary LP problem. The fin tableau is showing the
optimal solutions which is shown below.

( )

+

=
=
+
=

=
+
= + +
= +
+ =
NOTES
Table 9
Step 2
Variables Iteration Basis Z
Optimum value of Z is
7
123
and corresponding values of basic variables are
7
5
4
7
33
x
1 ,
7
3
3
7
24
x
2 and those of non-basic variables are all zero
(i.e. 0 y y
2 1
). This is not satisfying the constraint of
2
x to be an integer..
: Generate Gomory constraint.
From the row corresponding to in the last table, we can write,
1 2 2
y
21
2
y
7
1
7
24
x
Here
21
2
c ,
7
1
c ,
7
24
b
22 21 2
Since
2 2 2
b b as per Eqn (), the value of 3 b
2
and
7
3
2
.
Similarly
21 21 21
c c c and
22 22 22
c c c .
Therefore,
7
1
c , 0 c
21 21
since is negative
0 c ,
21
2
c
22 22
Since it is positive. The Gomory constraint can be written as
i j
m
1 j
ij
i
i
j
m
1 j
ij i
y c
1
y c s
7
3
y
28
3
y
21
2
s ., e . i
1 2 2
Insert this constraint as the last row of the final tableau.
1 2 1 2
Z 1 0 0
7
8
21
5
7
123 --
1
0 1 0
14
6
21
1
7
33 --
3
2
0 0 1
7
1
21
2
7
24 --
= = = =
= =
+ =
= = =
+ = =
=
+
+ =
+
+ =
= =
+
= =
+
=

=
+
=
x x y y
r
b
rs
r
c
b
x
x
DMC 1752
NOTES
Table 10
Step 3
Table 11
Variables
Iteration Basis Z
: Solve using dual simplex method
Variables
Iteration Basis Z
1 2 1 2 2
Z 1 0 0
7
8
21
5
0
7
123
1
0 1 0
14
6
21
1
0
7
33
2
0 0 1
7
1
21
2
0
7
24
2
0 0 0
28
3
21
2
1
7
3
1 2 1 2 2
Z 1 0 0
7
8
21
5
0
7
123
1
0 1 0
14
6
21
1
0
7
33
2
0 0 1
7
1
21
2
0
7
24
4
2
0 0 0
28
3
21
2
1
7
3
Ratio -- --
3
32
2.5 --
r
b
x x y y s
x
x
s
r
b
x x y y s
x
x
s

NOTES
Table 12
Variables
Iteration Basis Z
Optimum value of Z from the present tableau is
2
33
as shown above. Corresponding
values of basic variables are 5 . 4 x
1
, 3 x
2
, 5 . 4 y
2
and those of non-basic variables
are all zero (i.e., 0 s y
2 1
). This solution is satisfying all the constraints.
1 2 1 2 2
Z 1 0 0
8
7
0 1
2
33
1
0 1 0
8
3
0 1
2
9
2
0 0 1
4
1
0 1 3
4
2
0 0 0
8
9
1
2
21
2
9
= = =
= =
r
b
x x y y s
x
x
y
DMC 1752
NOTES
CHAPTER 3
BRANCH AND BOUND TECHNIQUE
3.1 BRANCH AND BOUND
Branch and Bound
branching
bounding
pruning
3.1.1 Effective subdivision
Branch and Bound is a general search method.

Starting by considering the root problem (the original problem with the complete
feasible region), the lower-bounding and upper-bounding procedures are applied
to the root problem.
If the bounds match, then an optimal solution has been found and the procedure
terminates.
(BB) is a general algorithm for finding optimal solutions of various
optimization problems, especially in discrete and combinatorial optimization. It consists of
a systematic enumeration of all candidate solutions, where large subsets of fruitless
candidates are discarded, by using upper and lower estimated bounds of the quantity
being optimized.
For definiteness, we assume that the goal is to find the minimum value of a function
( ) (e.g., the cost of manufacturing a certain product), where ranges over some set of
admissible or candidate solutions.
A branch-and-bound procedure requires two tools. The first one is a splitting procedure
that means, given a set of candidates, returns two or more smaller sets S
1
, S
2
, whose
union covers . Note that the minimum of ( ) over is min {?
1
, ?
2
,..}, where each is
the minimum of ( ) within . This step is called , since its recursive application
defines a tree structure (the search tree) whose nodes are the subsets of .
Another tool is a procedure that computes upper and lo r bounds for the minimum
value of ( ) within a given subset . This step is called .
The key idea of the BB algorithm is if the lower bound for some tree node (set of
candidates) is greater than the upper bound for some other node , then A may be safely
discarded from the search. This step is called , and is usually implemented by
maintaining a global variable that records the minimum upper bound seen among all sub
regions examined so far. Any node whose lower bound is greater than can be discarded.
The recursion stops when the current candidate set is reduced to a single element or
when the upper bound for set matches the lower bound. Either way, any element of will
be a minimum of the function within .
The efficiency of the method depends strongly on the node-splitting procedure and
on the upper and lower bound estimators. All other things being equal, it is best to choose
a splitting method that provides non-overlapping subse .
f x x S
S
S f x S v
i
f x S
i
S
f x S
A B
m
m
S
S S
S
NOTES
3.1.2 Applications
Ideally the procedure stops when all nodes of the search tree are either pruned or
solved. At that point, all non-pruned sub-regions will have their upper and lower bounds
equal to the global minimum of the function. In practice the procedure is often terminated
after a given time. At that point, the minimum lower bound and the maximum upper bound
among all non-pruned sections define a range of values that contains the global minimum.
Alternatively, within an overriding time constraint, the algorithm may be terminated when
some error criterion such as (max - min) / (min - max) falls below a specified value.
The efficiency of the method depends critically on the effectiveness of the branching
and bounding algorithms used. Bad choices could lead t repeated branching without any
pruning until the sub-regions become very small. In th case the method would be reduced
to an exhaustive enumeration of the domain which is of n impractically large. There is no
universal bounding algorithm that works for all problems, and there is little hope that one
will ever be found. Therefore the general paradigm needs to be implemented separately
for each application with branching and bounding algorithms, which are specially designed
for it.
Branch and bound methods may be classified according to the bounding methods
and according to the ways of creating/inspecting the s rch tree nodes.
The branch-and-bound design strategy is very similar to backtracking, in that a state
space tree is used to solve a problem. The differences are that the branch-and-bound
method (1) does not limit us to any particular way of aversing the tree and (2) is used only
for optimization problems.
This method naturally lends itself for parallel and distributed implementations, e.g.,
the traveling salesman problem article.
This approach is used for a number of NP-hard problems such as
Knapsack Problem (KP)
Integer Programming (IP)
Nonlinear Programming (NP)
Traveling Salesman Problem(TSP)
Quadratic Assignment Problem (QAP)
Maximum Satisfiability Problem (MAX-SAT)
Nearest Neighbor Search(NNS)
False Noise Analysis (FNA)
It may also be a base of various heuristics. For example, one may wish to stop
branching when the gap between the upper and lower bou becomes smaller than a
certain threshold. This is used when the solution is good enough for practical purposes
and can greatly reduce the computations required. This type of solution is particularly
DMC 1752
NOTES
Branch and Bound
3.1.3 The General Branch and Bound Algorithm
Definitions:
applicable when the cost function used is noisy or is he result of statistical estimates and so
is not known precisely but rather only known to lie within a range of values with a specific
probability. An example of its application here is in iology when performing sadistic analysis
to evaluate evolutionary relationships between organis where the data sets are often
impractically large without heuristics.
For this reason, branch-and-bound techniques are often used in game tree search
algorithms most notably through the use of alpha-beta uning.
Although a number of algorithms have been proposed for the integer linear programming
problem, the technique is used in almost all of the software. This
technique has proven to be reasonably efficient on pra ical problems, and it has the added
advantage that it solves continuous linear programs as sub problems, that is, linear
programming problems without integer restrictions.
Branch and bound is a systematic method for solving op imization problems
B&B is a general optimization technique that applies where the greedy method
and dynamic programming fail.
However, it is much slower. Indeed, it often leads to ponential time complexities
in the worst case.
On the other hand, if applied carefully, it can lead t algorithms that run reasonably
fast on average.
The general idea of B&B is a BFS-like search for the optimal solution, but not all
nodes get expanded (i.e., their children generated). Rather, a carefully selected
criterion determines which node to expand and when, and another criterion tells
the algorithm when an optimal solution has been found.
Each solution is assumed to be expressible as an array X [1: n] (as was seen in
Backtracking).
A predictor, called an approximate cost function CC, is assumed to have been
defined.
A live node is a node that has not been expanded
A dead node is a node that has been expanded
The expanded node (or E-node for short) is the live no with the best CC value.
The general B&B algorithm is as follows:
Procedure B&B ()
begin
E: node pointer;
branch-and-bound

NOTES
3.1.4 Branch and Bound (tree search)
E: = new (node); this is the root node which
is the dummy start node
H: heap; A heap for all the live nodes
H is a min-heap for minimization problems,
And a max-heap for maximization problems.
While (true) do
if (E is a final leaf) then
E is an optimal solution
Print out the path from E to the root;
Return;
end if
Expand (E);
if (H is empty) then
Report that there is no solution;
Return;
End if
E: = delete-top (H);
End while
End
Procedure Expand (E)
begin
- Generate all the children of E;
- Compute the approximate cost value CC of each child;
- Insert each child into the heap H;
End
The most effective general purpose optimal algorithm is LP-based tree search (tree
search also being called branch and bound).
.
Where this method differs from the enumeration method that the feasible
solutions are enumerated but only a fraction (hopefull a small fraction) of them. However
This is a way of systematically enumerating
feasible solutions such that the optimal integer solution is found
not all
DMC 1752
NOTES
How can we rid ourselves of this troublesome fractional
value?
we can still that we will find the optimal integer solution. The method was first
put forward in the early 1960s by Land and Doig.
Consider our example capital budgeting problem. What made this problem difficult
was the fact that the variables were restricted to be egers (zero or one). If the variables
had been allowed to be fractional (takes all values between zero and one for example)
then we would have had an LP which we could easily solve. Suppose that we were to
solve this LP relaxation of the problem [replace x
j
= 0 or 1 j=1,...,4 by 0 <= x
j
<= 1
j=1,...,4]. Then using the package we get x
2
=0.5, x
3
=1, x
1
=x
4
=0 of value 0.65 (i.e. the
objective function value of the optimal linear program ng solution is 0.65).
As a result of this we now know something about the op imal integer solution, namely
that it is <= 0.65, i.e. this value of 0.65 is a (upper) on the optimal integer solution.
This is because when we relax the integrality constraint we (as we are maximising) end up
with a solution value at least that of the optimal int r solution (and may be better).
Consider this LP relaxation solution. We have a variable x
2
which is fractional when
we need it to be integer.
To remove this troublesome fractional value we can ge rate two new problems:
original LP relaxation plus x
2
=0
original LP relaxation plus x
2
=1
Then we will claim that the optimal integer solution t the original problem is contained
in one of these two new problems. This process of taki a fractional variable (a variable
which takes a fractional value in the LP relaxation) and explicitly constraining it to each of
its integer values is known as . It can be represented diagrammatically as below
(in a tree diagram, which is how the name arises).
Initial LP relaxation value 0.65
X2 fractional
X2 =1 X2 =0
P1
P2
guarantee
bound
branching
tree search
NOTES
We now have two new LP relaxations to solve. If we do his we get:
P1 - original LP relaxation plus x
2
=0, solution x
1
=0.5, x
3
=1, x
2
=x
4
=0 of value 0.6
2
=1, solution x
2
=1, x
3
=0.67, x
1
=x
4
=0 of value
0.63
This can be represented diagrammatically as below.
To find the optimal integer solution we just repeat th process, choosing one of these
two problems, choosing one fractional variable and gen rating two new problems to solve.
Choosing problem P1 we branch on x
1
to get our list of LP relaxations as:
2
=0 (P1) plus x
1
=0, solution x
3
=x
4
=1, x
1
=x
2
=0 of
value 0.6
2
=0 (P1) plus x
1
=1, solution x
1
=1, x
3
=0.67,
x
2
=x
4
=0 of value 0.53
2
=1, solution x
2
=1, x
3
=0.67, x
1
=x
4
=0 of value
0.63
This can again be represented diagrammatically as belo .
X2 fractional
X2 = 1
value 0.63
X3 fractional
P2
Value 0.6
X1 fractional
X1 =1
X2 =0
P1
X1=0
P3
Value 0.6
integer feasible
Value 0.53
P4
X2 fractional
X2 =1
P2
P1 Value 0.63
X3 fractional
X1 fractional
value 0.6
X2 = O
DMC 1752
NOTES
At this stage we have identified an integer feasible solution of value 0.6 at P3. There
are no fractional variables so no branching is necessary and P3 can be dropped from our
list of LP relaxations.
Hence we now have new information about our optimal (b st) integer solution, namely
that it lies between 0.6 and 0.65 (inclusive).
Consider P4, it has value 0.53 and has a fractional variable (x
3
). However if we were
to branch on x
3
any objective function solution values we get after b nching can never be
better (higher) than 0.53. As we already have an integ feasible solution of value 0.6 P4
can be dropped from our list of LP relaxations since b nching from it could never find an
improved feasible solution. This is known as - using a known feasible solution
to identify that some relaxations are not of any inter t and can be discarded.
Hence we are just left with:
2
=1, solution x
2
=1, x
3
=0.67, x
1
=x
4
=0 of value
0.63
Branching on x
3
we get
2
=1 (P2) plus x
3
=0, solution x
1
=x
2
=1, x
3
=x
4
=0 of
value 0.5
2
=1 (P2) plus x
3
=1, problem infeasible
Neither of P5 or P6 lead to further branching so we are done, we have discovered
the optimal integer solution of value 0.6 correspondin to x
3
=x
4
=1, x
1
=x
2
=0.
The entire process we have gone through to discover this optimal solution (and to
prove that it is optimal) is shown graphically below.
X2 fractional
X2 =1
X2 =0
P1
Value 0.6
X1 fractional
X1 = 1 X3 = 0
P2
Value 0.63
X3 fractional
X3 = 1
P6
infeasible value 0.5
P5 P4
Value 0.53
Value 0.6
integer feasible
X1=0
P3
bounding

NOTES
We do not need to examine
as many LPs as there are possible solutions.
3.1.5 Illustration on the Job Assignment Problem
2 4 5
2 7 10
5 3 7
You should be clear as to why 0.6 is the optimal integer solution for this problem,
simply put if there were a better integer solution the above tree search process would
(logically) have found it.
Note here that this method, like complete enumeration, also involves powers of two
as we progress down the (binary) tree. However also note that we did not enumerate all
possible integer solutions (of which there are 16). In d here we solved 7 LPs. This is
an important point, and indeed why tree search works at all.
While the computational efficiency of
tree search differs for different problems, it is this basic fact that enables us to solve problems
that would be completely beyond us were we trying comp te enumeration.
Input: n jobs, n employees, and an n x n matrix A wher A
ij
be the cost if person i
perform job j.
Problem: find a one-to-one matching of the n employees to the n jobs so that the
total cost is minimized.
formally, find a permutation f such that C(f), where
C (f) =A
1f (1)
+ A
2f (2)
+ ... + A
nf(n)
is minimized.
A brute-force method would generate the whole solution tree, where every path
from the root to any leaf is a solution, then evaluate the C of each solution, and
finally choose the path with the minimum cost.
Illustration on this specific instance of the job-assi ment problem:
In informal terms, the problem is to choose a single number from each row such
that (1) no two numbers are chosen from the same columns, and (2) the sum of the
chosen numbers is minimized.
The first idea of B&B is to develop a predictor of the likelihood (in a loose
sense) of a node in the solution tree that it will lead to an optimal solution. This
predictor is quantitative.
With such a predictor, the B&B works as follows:
Which node to expand next: B&B chooses the live node with the best predictor value
B&B simply expands that node (i.e., generate all its children)
The predictor value of each newly generated node is computed. The just expanded
node is now designated as a dead node and the newly ge ated nodes are designated as
live nodes.
DMC 1752
NOTES
Definition of the cost function C:
Theorem:
Proof:
2 4 5
2 7 10
5 3 7
2 4 5
2 7 10
5 3 7
2 4 5
2 7 10
5 3 7
Termination criterion: When the best node chosen for expansion turn out to be a final
leaf (i.e., at level n) when the algorithm terminates nd that node corresponds to the optimal
solution. The proof of optimality will be presented later on.
What could that predictor be?
In the case of minimization problem, one candidate predictor of any node is the
cost so far. That is, each node corresponds to (partial) solution (from the root to
that node). The cost-so-far predictor is the cost of t partial solution.
Apply this preliminary algorithm on the above specific instance of the job assignment
problem
A better predictor for the job assignment problem is:
(Cost so far) + (sum of the minimums of the remaining ws)
Apply B&B with the new predictor to the same instance the job assignment
problem
A yet another predictor is cost so far + sum
n
i=k+1
p
i
Where p
i
is the minimum value in row i of the cost matrix A, such that p is not in the
column of any of the terms chosen in the partial solution so far.
Apply B&B with the last predictor to the same instance of the job assignment
problem
Criteria for the Choice of Approximate Cost Functions
For every node X in the solution tree, the cost
function C(X) is the cost of the best solution that go through node X.
In the case of minimization problems, if CC(X) <= C(X) for every
node X, and if CC(X)=C(X) for every final leaf node X, then the first expanding
node (best-CC node) that happens to be a final leaf corresponds to an optimal
solution.
Let E be the E-node that happens to be a final leaf.

NOTES
Implementation of the B&B Job Assignment Algorithm
Need to prove that C (E) <= C(X) for any live node X.
C(E)=CC(E) because E is a final leaf
CC(E) <= CC(X) for any live node X, because E is the e ing node, that is,
the minimum-CC node
CC(X) <= C(X) by assumption.
Therefore, C (E) =CC (E) <=CC(X) <=C(X), leading to C <=C(X).
Therefore, the criteria for the approximate cost function CC for minimization
problems are:
CC(X) <= C(X) for all live nodes X
CC(X) =C(X) for all final leaves.
The criteria for the approximate cost function CC for ximization problems are:
CC(X) >= C(X) for all live nodes X
CC(X) =C(X) for all final leaves.
Because of those criteria, CC is called an underestimate of C (in the case of
minimization), and an overestimate of C (in the case of maximization)
The closer CC is to C, the faster is the algorithm in reaching an optimal solution.
We need to define the full record of a node
We need to fully implement the Expand procedure
Every node corresponds to something like X[i] =j, whic signifies that the job X[i]
assigned to person i is j.
Every node must store its CC value.
Each node must point to its parent so that when an opt l leaf is generated, the
path from that leaf to the root can be traced and printed out as the optimal solution.
Therefore, a node record structure should look like:
Record node
Begin
Parent: node pointer;
I: integer; person I
J: integer; Job J is assigned to person I
CC: real;
End
DMC 1752
NOTES

Take the 2nd CC formula:

CC(X at level k) = cost so far + sum
n
i=k+1
m
i
Where m
i
is the minimum of row i.
observe that if X is a pointer to a node, then
X->CC = X->Parent->CC + A
X->I, A->J
- m
X->I
Write a piece of code that computes the m
i
s for i=1,2,...,n
Code for Expand(E):
Procedure Expand (E)
begin
/* generate all the children of E; */
I := E->I;
X,p: nodepointer;
S [1: n]: Boolean;
/* S is a bitmap set initialized to 0*/
/* S will contain all the jobs that have been
Assigned by the partial path from the root
to E */
p := E;
while (p is not the root) do
S[p->J] := 1;
p := p-> Parent;
End while
for job=1 to n do
if S[job] = 0 then
X: = new (node);
X->I := I + 1;
X->J := job;
X->Parent := E;
X->CC := E->CC + A
X->I,X->J
-m
X->I
;
Insert(X, H);
End if
End for
End
NOTES
UNIT IV
CHAPTER 1
SCHEDULING BY PERT AND CPM
1.1 CRITICAL PATH METHOD (CPM)
Activities
The Critical Path Method (CPM) is one of several related techniques for doing project
planning. CPM is for projects that are made up of a number of individual activities. If
some of the activities require other activities to fin h before they can start, then the project
becomes a complex web of activities.
CPM helps to figure out:
How long the complex project will take to complete
Which activities are critical, meaning that they hav to be done on time or else
the whole project will take longer time.
The information about the cost of each activity and ho much it costs to speed up
each activity, the following points are to be noted:
Whether to speed up the project, and, if so,
What is the least cost way to speed up the project?
An activity is a specific task. It gets something done. An activity can have these
properties:
Names of any other activities that have to be completed before this one can start
A projected normal time duration
To do a speedup cost analysis, the following points about each activity are to be
noted
A cost to complete
A shorter time to complete on a crash basis
The higher cost of completing it on a crash basis
CPM analysis starts after you have figured out all the individual activities in your
project.
DMC 1752
NOTES
CPM Analysis Steps
1.2 EXAMPLES
1.2.1 Example 1: Activities, precedence, and times
Step 1: List the activities
For example:
Step 2: Draw the diagram
Activity Destination Required Predecessor Duration
The steps for doing CPM analysis will be illustrated b two examples. It is recommend
to work through these examples.
This first example involves activities, their precedence (which activities come before
other activities), and the time the activities take. T objective is to identify the critical path
and figure out how much time the whole project will take.
CPM analysis starts with a table showing each activity for a project. For each activity,
identify the other activities must be done before it starts, and how long the activity takes.
Draw a network diagram of the project that shows which activities follow the other
ones. This can be tricky. The analysis method requires an activity-on-arc (AOA) diagram.
An AOA diagram has numbered nodes that represent stages of project completion as
shown in the given figure. Connect the nodes with arrows or arcs that represent the
activities that are listed in the above table.
A Product design (None) 5 months
B Market research (None) 1
C Production analysis A 2
D Product model A 3
E Sales brochure A 2
F Cost analysis C 3
G Product testing D 4
H Sales training B, E 2
I Pricing H 1
J Project report F, G, I 1
NOTES
Example 1 Step 3: Set up the CPM spreadsheet
Some conventions about how to draw these diagrams:
All activities with no predecessor come off from node 1.
All activities with no successor points to the last no , which has to have a highest
node number.
In this example, A and B are the two activities that have no predecessor. They are
represented as arrows leading away from node 1.J is th one activity that has no successor,
in this example. It therefore points to the last node, which is node 8. If there were more
than one activity with no successor, all of those activities arrows point to the highest
number node.
The trickiest part for building the above diagram was guring what to do with activity
H. First draw an arrow for activity B coming off node and going to node 3. Then draw
an arrow for activity E coming off node 2 and going to node 6. Since H requires both B
and E, erase the first E arrow and redraw it so it poi to the same node 3 that B did. H
then comes off from node 3 and goes to node 6.
There are specialized commercial programs for doing CPM analysis. Rather than
purchase and learn one of those. It is recommended to se the spreadsheet knowledge.
Start up a new blank spreadsheet. In a blank spreadsheet, type the word Activities in
cell A1. In row 2, type the names of the activities, or their letters.
D
1
2
3
4
5
6
7 8
A
B
E
G
F
H
I
J
DMC 1752
NOTES
Step 4: Use Path find to get the paths
In row 3, type Nodes. In row 4, type in each activitys start node where the tail of its
arrow is. Below that, in row 5, type each activitys end node where the head of its
arrow is. Do this carefully. Mistakes here mess up everything that follows.
To the right, in K4 and K5, type the words Start and End to label those rows.
In cell A6, type Times. In row 7, type the time of each activity takes. Then, select the
range of cells containing the node numbers
And copy it to the clipboard.
Path find is a computer program that helps to find and enter into the spreadsheet all of
the possible paths through the diagram along the arrows from the first node to the last. This
diagram shows the four possible paths in this example.
NOTES
Step 5: Paste the path information into the spreadsheet
The four paths are A D G J, A C F J, A E H I J, and B J. To code them in the
spreadsheet with a matrix of 0s and 1s. Rather than oing it manually, use path find to do
it.
To use Path find, start up your Internet connection and your browser.
Loading the html file into the browser starts Path fin , which is a Java applet that runs
inside the browser. When Path find is loaded:
Click in Path finds upper text area.
Paste the range that is copied from the spreadsheet in that upper text area. Click
on Path finds button. Path finds lower text area wil give you a block of numbers.
Copy the highlighted numbers to the clipboard for past ng later into the spreadsheet.
Move the cell selector to cell A8. Type Paths in tha cell. Then move the cell selector
to A9, as shown here:
DMC 1752
NOTES
Example 1 Step 6: Calculate the paths times
Paste to that cell, to see this:
The pasted cells are all 0s and 1s. Each row represents a path. The 1s indicate
which activities are in that particular path. For example, row 9 (cells A9:J9) has 1s under
activities A, C, F, and J. This says that this path includes activities A, C, F, and J. This
corresponds to the path through the middle of the diagram that goes:
1 A 2 C 7 J 8
The diagram above shows four paths from node 1 to node 8.Path find produces four
rows of 0s and 1s, one row for each path.
Move the cell selector to K9. Type
in that cell.

=SUMPRODUCT (A9:J9, $A$7:$J$7)
NOTES
Step 7: Identify the critical path
This formula multiplies each entry in row 9 by the corresponding entry in row 7.
Because the entries in row 9 are all 0s and 1s, this has the effect of selecting the times
from row 7 that go with the activities represented in ow 7, and adding all those times.
When entering the formula, the number 11 should appear in K9. Thats the time it
would take to complete activities A, C, F, and J. (A takes 5 months, C takes 2, F takes 3,
and J takes 1, for a total of 11).
To fill in the other paths times, copy cell K9, then ste it to K10:K12. The $ signs
in the formula see to it that each paths 1s are mult plied by the corresponding numbers in
row 7.
The critical path is the path that takes the longest. this example, the critical path is
the one in row 10, which takes 13 months. The project therefore take 13 months, if
everything is done on schedule with no delays. The tim a project takes is equal to the time
of its critical path.
The 1s in row 10 tell that the critical path is 1 A 2 D 4 G 7 J 8. If any of
those activities is late, the project will be late. Ot r paths are not critical because they can
waste some time without slowing the project. For example, activity C, in row 9s path, can
take up to two extra weeks and not hold up the project.
To make it easier to see what activities are in each path, go to cell A14. Type
there. The letter A should appear in cell A14.
This =if (A9=1, a$2, function works this way: Inside the parentheses are three
expressions separated by commas. The first expression =1) is something that can be
either true or false. If the expression is true, the s nd expression (A$2) is shown in the
cell. Otherwise, the third expression () is shown in the cell.

=if
(A9=1,A$2,)
)
DMC 1752
NOTES
In A14, the expression A9=1 is true, so the cell shows what is in A2, which is the
letter A. If A9 had not contained a 1, then A14 woul have shown a blank. Copy A14 to
the clipboard. Then, starting in A14, select a range of cells that goes over to column J and
down four rows. The selected range should be the same e as the space that the paths
1s and 0s take up.
It shows which activities are in each path. If the results do not look like the above,
make sure that there is one $ in the formula, and that its in front of the 2 and not in front of
the A.
Go to cell J13 and type Max. Then go to cell K13. Type to
display the longest path time.
=MAX (K9:K12)
NOTES
Move to cell K14 and type =IF (K9=K$13,Critical,) here.
This will put the word Critical next to a path whose time equals the maximum of all
the path times. Otherwise, it will put in a blank, as does here, because the 11 in K9 does
not equal the 13 in K13.
Copy K14 to the clipboard. (It will seem strange to copy what appears to be an
empty cell, but do it anyway.) Select cells K14 to K17, and paste.
DMC 1752
NOTES
4.2.2 Example 2: Costs and Crash Costs
Step 1: List the activities
Step 2: Draw the diagram
Activity Required
Predecessor
Normal
Time
Normal
Cost
Crash
Time
Crash
Cost
This second example incorporates costs and the possibility of spending money to
speed up the project. The main objective is to determi how quickly to complete each
activity, and thus how long the project as a whole should take. The presumption is that
there is some reward for getting finished sooner. In o er to decide whether the reward is
worth earning, and if so what is the best way to earn it. This example also shows how to
use a dummy activity. A dummy activity is an activity at you add to the original activities
list. A dummy activity takes no time, and it has no cost.
To start the network diagram, A, B, and C are the thre activities with no predecessor.
They all come off from node 1. A can go from node 1 to node 2. B can go from node 1 to
node 3. C also starts at node 1. D requires A, so D starts at node 2.
Now for activity E. Activity E requires a special tric The problem is where E should
start. E requires A and B. A ends at node 2 and B ends at node 3. E is not allowed to start
from both nodes 2 and 3. Activities can have only one tart node and only one end node.
What do we do about E? First choice is to consider connecting both A and B to node
2, but that would mess up Activity D. If both A and B ere to run from node 1 to node 2
A (None) 3 weeks $3000 2 weeks $5000
B (None) 4 $4000 2 $6000
C (None) 5 $5000 3 $8000
D A 8 $5000 6 $6000
E A,B 3 $3000 2 $4000
F C 5 $4000 3 $8000
2
3
4
1
A
B
C
D
NOTES
Step 3: Set up the CPM spreadsheet
and D came off from node 2, that would be saying that requires B as well as A. D is
supposed to require A, not also B.
Here is the solution:
The solution is to add a dummy activity that runs from node 2 to node 3, as shown in
the diagram. Then start E at node 3.
If E starts at node 3, it means that E requires B and the dummy activity, the two
activities that come in to node 3. The dummy activity, because it starts at node 2, requires
A. This makes E require B and A. The D starts at node so D only requires A. All the
requirements are satisfied! Dummy activities add nothing to the time or the cost. Their
purpose is to allow you to represent complex relations ps among activities.
Consider the CPM spreadsheet has 7 activities. Thats six lettered activities plus
the one dummy activity.
These instructions will create the spreadsheet from sc tch. Adapting the spreadsheet
from example 1 is possible, but tricky, because example 2 has fewer columns and more
rows than example 1.
To start with a blank spreadsheet, move the cell selector to A1 and type Activities.
In row 2, type the activities, letters or names. Put the Dummy at the right end of row 2, for
two reasons:
The other activities names matches will their column etters.
It will be easier to fill in the Solver Parameters box when we get to that stage.
In cell A3, type Nodes. In row 4, type the starting f the activities. In row 5, type
the ending of the activities.
2
3
4
5 1
A
B
C
F
D
Dummy
E
DMC 1752
NOTES
Type Times in cell A6. In row 7, type each activitie normal time. The dummy time
is 0. In row 8, type each activities crash time. The d crash time is 0.
Copy row 7 and paste it into row 9. Row 9 will be the iable cells, while doing the
optimization later. Be sure to copy the numbers themselves from row 7 to row 9.
Label each of the Times rows by typing Normal in H7, Crash in H8, and Actual
in H9.
To do the optimization, well set a maximum time for t e project and tell the spreadsheet
to find the combination of numbers in row 9 that compl es the project within that time for
the lowest possible cost.
To do that, it needs the costs. In cell A10, type Cos . In row 11, put each activities
normal cost. In H11, type Normal. In row 12, put each activities crash cost. In H12,
type Crash. In H13, type Actual. Type 0 in G13 for the Dummy actual cost.
NOTES
The diagram above also shows a formula to put in A13.
Row 13 will have formulas to calculate the actual cost for each activity. Each activities
actual cost depends on how much it speed up or crashed. Assume a linear relationship
between speed-up and cost. For example if an activity can be shortened by 2 weeks at
an added cost of $2000, assume that it can be shortened by 1 week for an added cost of
$1000.
The formula to implement is at cell A13, A13 type =A1 (A7-A9)/ (A7-A8)*(A12-
A11)
The logic of the formula:
(A7-A9) is the difference between the normal time and he actual time for activity
A. This difference is how much time is reduced by speeding up activity A.
(A7-A8) is the difference between the normal time and he crash time. This is the
most time that could save by speeding up activity A.
(A7-A9)/ (A7-A8) is how much time actually saved, as a fraction of how much
time that could save, for activity A. In other words, is the proportion of the
possible time savings that are actually used.
(A12-A11) is the difference between the crash cost and the normal cost for activity
A. This difference is how much cost would go up if activity As time is shortened as
much as possible. Multiplying these, to get (A7-A9)/ (A7-A8)*(A12-A11), gives
an additional cost that are incurring by shortening ac vity As time from its normal
time to the actual time chosen. This embodies the linearity assumption that part
way between the normal time and the crash time, the cost will be that same part
way between the normal cost and the crash cost. The fu formula, A11+ (A7-A9)/
(A7-A8)*(A12-A11), adds that additional cost to A11, the cost of doing the activity
in normal time. This gives the cost of doing activity in the amount of time in A9.
DMC 1752
NOTES
Step 4: Use Path finds to get the paths
Step 5: Paste the path information into your spreadsheet
Dont paste the formula to cell G13, because that would give a division-by-zero
error. Similarly, if any of the other activities canno be speed up (the crash time equals the
normal time), put the normal cost number in the cell i row 13, not the formula.
Once that formula is in, copy cell A13 to the clipboard. Select cells A13:F13, and
paste.
Right now, it may look like the formula isnt doing much, because the Actual costs
match the Normal costs. This is because the Actual time matches the Normal time. It will
vary, if the project is shortened.
Now, select the range of node numbers, being sure to i ude the dummy activitys
node numbers.
Copy this range to the clipboard.
Go to and paste in the node numbers that was just copied. Follow Path finds
instructions for copying its reply.
Go back to the spreadsheet. In cell A14, type Paths. Then move the cell selector to
A15, as shown here:
NOTES
Paste to that cell, it will produce the below results.
As with the first example, each row represents a path. The 1s indicate which activities
are in that particular path. For example, row 15 has 1s under activities A and D. This
represents the path at the top of the diagram. There are four
possible paths from node 1 to node 5, so it have four ows of 0s and 1s.
1 -A-> 2 -D-> 5
DMC 1752
NOTES
Step 6: Calculate the path times
Step 7: Identify the critical path
In cell H15, put .
Copy that cell and paste it to H15:H18.
It shows how long each path takes.
The critical path is in row 15, 1 -A-> 2 -D-> 5. Its path with the longest time.
To make it easier to see which activities are in each go to cell A20 and type
=if(A15=1,A$2,) (Notice that the $ sign is before th 2, before the A.) This should
put an A in A20.
Copy cell A20 to the clipboard. Select the range A20:G23 and then paste it.
It produces four rows showing the letters of the activ es that are in each path.
=SUMPRODUCT (A15:G15, $A$9:$G$9)
not
NOTES
Go back to cell G19 and type Max. Go to cell H19 and type =max(H15:H18).
This shows how long the slowest path takes.
Go down to cell H20. Put in =IF (H15=H$19,Critical,). In this example, Critical
appears in cell H20, because this first path is the critical path.
Copy cell H20. Highlight H20:H23 and then paste it.
Sure enough, the first path with activities A and D, i the only one labeled Critical.
DMC 1752
NOTES
Step 8: Total cost formula
Go up to cell E14 and type Total actual cost: In cell H14, add up the actual costs of
all of the activities. The formula is =SUM (A13:G13)
NOTES
Step 9: Fill in the optimizer form
Upon completing the formula, if it uses all normal tim for all activities, the total cost
is $24,000.
Crash analysis is linear programming in disguise. To p form crash analysis, use the
Solver tool. From s menu, select Tools, then Solver.
Fill in the Solver Parameters box as shown here.
The Target Cell is H14, the total cost.
Click on Min. to find the least-cost way to speed up the project.
The Changing Cells are the Actual times, in A9:G9.
The constraints, will be added by clicking the Add but n.
A9:G9 <= A7:G7 All the Actual times must be less than equal to the Normal
times. Assume that, dont save any money by going slower than the Normal time.
A9:G9 >= A8:G8 All the Actual times must be greater than or equal to the crash
times. The crash times are, by definition, the fastest possible times for each activity.
H15:H18 <= 10 the slowest path can take no more than 1 weeks. 10 is chosen
because its one less than 11, the normal completion t me. Later, by changing this
to 9, 8, etc., to see what happens while trying to finish the project in shorter and
shorter times.
For using Excel 2000 or earlier, click on Options.
Click the checkbox for assuming a linear model.
Excel
DMC 1752
NOTES
Step 10: Solve
Click on OK in the Solver Options dialog box. Click on Solve in the Solver Parameters
dialog box.
If an error message appears, bring back up the Solver rameters dialog box.
Make sure that Min is checked. A mistake here can caus an unbounded solution
error.
Verify that the target cell and the changing cells are correct.
Verify that all the constraints are correct, with greater-than and less-than going in
the right directions. Mistakes here can cause unbound solution, non-linear
and no feasible solution errors.
If it shows a message that there is no feasible solution, try changing the Assume
Linear Model option. That is, click Solvers Options bu n, then check Assume
Linear Model if its unchecked, or uncheck it if its cked.
If you still get the no-feasible-solution message, change the Solver Parameters as
shown here to exclude the dummy activity from the Chan ng Cells and the Constraints.

NOTES
The range for the Changing Cells and the Constraints stop at column F. Column G
has the dummy activity. Excel 2000 and later do not require this modification. If everything
is correct, a dialog box will appear and prompts for the report selection by the user. The
user can requests whatever reports they like. The default result should be:
To get finished in 10 weeks (H19 now has 10), the total amount is$24,500 (H14 now
has 24500).
There are two critical paths to worry about, 1 -A-> 2 5, and 1 -C-> 4 -F-> 5.
If any of the four activities in those paths is late, e project will take more than 10 weeks.
Add three more rows, to make it easier to see, which a vities have speeded up and
at an extra cost.
DMC 1752
NOTES
Step 11: Economic Analysis
WeeksProject costPenalty costTotal cost
Go to cell A24 and type Crashed by how much .Then go to A25 and put =A7-A9.
This is the Actual time minus the Normal time. Go to cell A26. and put =A13-A11. This is
the difference between the current Actual cost and the Normal cost. Select A25:A26.
Copy to the clipboard. Select A25:F25, and paste.
Use an economic problem to solve. Imagine that the Exa le 2 project is being done
on a contract, with a scheduled completion time of 8 weeks. There is a $2500 per week
penalty for being late. There is also a $1000 per week bonus for being early. Here the
results so far. An explanation follows:
If it uses normal time, the project takes 11 weeks, wh h runs over the schedule by 3
weeks. It makes to lose $7500 in penalties. The total cost is $24,000 + $7,500 =
$31,500.
If it crash by 1 week, the project takes 10 weeks. The penalty cost is $5,000. Direct
project cost is $24,500. The total is $29,500. This is less than $31,500, so ten weeks is
better than eleven weeks.
11 $24,000 $7,500 $31,500
10 24,500 5,000 29,500
NOTES
1.3 SUMMARY OF CPM STEPS
WeeksProject costPenalty costTotal cost
WeeksProject costPenalty cost Total cost
29,000
To try completing in 9 weeks, go back to the Solver (s 9). Change the H15:H18
<= 10 constraint to H15:H18 <= 9. and solve. The cost es to $26,500. The penalty for
being one week late is $2,500. Total cost is $26,500 + $2,500 = $29,000. This is less
than $29,500, so nine weeks is better than ten weeks.
Notice that cutting the second week added more to the project cost (second column)
than cutting the first week. Cutting one week increase project cost by $500. Cutting the
second week increased project cost by $2,500 from $24,500 to $26,500. The law of
diminishing returns is at work here.
Is it save three weeks and be on time? To try remove c pleting in 8 weeks, go back
to the Solver. Change the H15:H18 <= 9 constraint to H15:H18 <= 8, then solve. The
resultant cost is $30,000. There is no penalty, but $30,000 is more than $29,500, so it
loses money by being on time. Its better off being one week late and paying the penalty.
What about saving four weeks and being early? As the law of diminishing returns,
dont need to consider shorter project durations than weeks. Going from 9 weeks to 8
added $3,500 to cost. The law of diminishing returns i lies that going from 8 weeks to 7
will add at least $3,500 more to cost. That is more than the $1000 bonus, so the 7 weeks
is a loser.
If the bonus is linear then the law of diminishing returns implies that it can stop the
analysis as soon as the total cost, including the bonu starts to rise.
Here is the whole table. The bonus for being early is ted as a negative penalty.
The conclusion is that, the optimal production schedul is 9 weeks. It has the least
total cost.
CPM helps to identify a complex projects critical pat , it enables to find how long a
project will take and which activities must be on time. If the information about costs, crash
costs and time is available then CPM helps to determin how long the project should take,
and which activities should be speed up (crashed). The steps are:
11 $24,000 $7,500 $31,500
10 24,500 5,000 29,500
9 26,500 2,500 29,000
11 $24,000 $7,500 $31,500
10 24,500 5,000 29,500
9 26,500 2,500
8 30,000 0 30,000
7 Don't bother -1000 will be higher
DMC 1752
NOTES
1.4 EXERCISE
1.5 PROGRAM EVALUATION AND REVIEW TECHNIQUE (PERT)
Tasks Dependency Duration
Have a list of the activities.

Draw the network diagram.
Put activity names, node numbers, times, and costs in spreadsheet.
Use Path find to generate code for the paths.
Put the path information into the spreadsheet.
Calculate the paths times.
Identify the critical paths, and the activities in each path.
Set up the formula to calculate the projects total cost.
Fill in the Tools | Solver... form.
Solve, and fix errors, if any.
For an economic analysis, change the maximum time cons raint and solve again. Repeat
until costs, including penalties and bonuses, start to go up.
1. The software project consists of a list of tasks along with their estimated durations
which are shown in the estimation table below. The project manager also knows the
dependencies among those tasks. Please make a CPM gra and a Gantt chart to show
how to organize all the tasks so that the project can e down in the shortest time by Nancy
and Julia.
Program Evaluation and Review Technique (PERT) and Cri ical Path Analysis (CPA)
are tools that are used to schedule and manage large complex projects. These tools help to
simplify the planning and scheduling of projects to plan most importantly during the
A 4
B 3
C A 8
D A 7
E B and C 9
F B and C 12
G D and E 2
H D and E 5
I F and G 6
NOTES
1.5.1 Project Evaluation and Review Technique (PERT) and Critical Path
Method (CPM) Applications
or
Note: In the following examples read the diagrams from left to right.
1.6 EXAMPLE
1.6.1 Example 1
management of a project, It enable companies to monito achievement of project goals
and assist to identify where remedial action needs to e taken to ensure project is completed
within the time frame.
PERT is used to estimate the time that each activity will take. PERT is intended for
very large-scale, one-time, complex, non-routine proje s. It is more of an event-oriented
technique rather than start and completion-oriented an is used more in R&D-type projects
where, time rather than cost is a major factor. A PERT diagram shows the relationship
between simultaneous steps in a project, after critica path analysis PERT diagram can also
be used to show the critical path.
CPA formally identifies tasks which must be completed time for a project to be
completed on time, which tasks have the option of been delayed and the minimum length
of time needed to complete a project. If a company would require accelerating a project,
CPA analysis will helps to identify which project steps should accelerate to complete the
project within the available time. This helps to minim ze cost while still meeting the objective.
Two simple, yet interesting and important applications of partial ordering relations are
the PERT and CPM techniques in job scheduling. For an of the list of tasks
needed to build a house. let A = {set of tasks given below(include the exercise)} and
define the relation R on A by: xRy if task x proceeds a prerequisite task of) task y
task x = task y the Hasse diagram is given in the illu tration in the text. The above techniques
are explored through several examples as below.
The construction of a cottage requires the performance of certain tasks. The following
table 1 lists the various tasks with their priority relationship. The start task ( ) and finish
task ( ) are added, is linked to task A and is linked to task K.

DMC 1752
NOTES
Figure 1
Code Of Task Duration(Weeks) Prerequisite tasks
Let S be the set of all tasks and consider the partial order relation R defined on S as
follows: for all tasks x and y in S,
xRy x = y or x precedes y.
The minimum time required to finish this job is calcul ed using Project Evaluation and
Review Technique (PERT). The PERT diagram of the project is shown in the figure 1.
In this representation, the tasks are the vertices of e graph. The length of each task
is the duration of the corresponding task. The start a d finish of a task are two stages of the
project. Define an initial stage as start and a final tage as finish and a certain number of
intermediate stages. Each stage is defined by tasks already carried out.
In the beginning milestone of the project is start stage. The start followed by task A
which is carried out in 7 weeks. After finishing stage A, it leads into two options. The task
B and task D can be started simultaneously. Task B takes 3 weeks to finish and task D
takes 8 weeks to finish the job. Task B is immediately followed by task C, which takes one
week to carry out. The minimum time required to start sk C is the total time required to
finish task B and A which is 10 weeks. Task C is followed by task E. To start task E,the
A Masonry 7 -
B Carpentry for roof 3 A
C Roof 1 B
D Sanitary and electrical installations 8 A
E Front 2 D, C
F Windows 1 D, C
G Garden 1 D, C
H Ceiling 3 F
J Painting 2 H
K Moving in 1 E, G, J

NOTES
Table 2. below:
Figure 2
Task Earliest Start Time
task C and D should be finished. C is finished in 11 w s, and D is finished in 15 weeks,
so it is very common that,the task E cannot be started before finishing task D which takes
15 weeks to carry out. Same way, the earliest time to rt each task are identified, which
is shown in table 2 below.
The above analysis shows that at least 21 weeks is required to complete the project.
The minimum duration of the project will be the length of the longest path between the
initial stage and the finish stage. This is shown in w h the darker line in the figure 2.
Start (a) 0
A 0
B 7
C 10
D 7
E 15
F 15
G 15
H 16
J 18
K 20
Finish ( ) 21
DMC 1752
NOTES
4.6.2 Example 2
If any work in this path, is delayed then the project ish time is also delayed. That
means delay in performing any of these tasks in the path cause delay in the time required to
finish the project, and for these reason, this path is known as critical path. The tasks
outside the critical path can be delayed by certain amount of time. For example task E is
not on critical path and it is followed by task K. If E is delayed by 3 week than its
earliest start time, then the task K is started as per its earliest start time because K must be
started after finishing J which takes 20 weeks. It makes the task E in 20 weeks by delaying
3 weeks. In the opposition if any delay in work on the critical path, then it delays the time
to complete the project. For example 3 weeks delay in ask J cause 3 weeks delay to start
K, and K start after 3 weeks than its earliest start time and these cause three week delay
to complete the project. Now if task J finished earlier by one week then task K, can also
reached earlier by one week and finish it off. And fin ly the overall project is also finished
one week before.
In order to construct a house, there are many jobs that need to be done at the same
time. Certain parts of the construction must be done b ore others can be started. Nobody
cannot start wiring the house if the walls have not be n put up, and cannot put the walls up
till the foundation had been set. Before the foundation is set, one must choose a good plot
to dig the foundation hole. However, there are certain jobs which can be done
simultaneously. While wiring the outlets, one can have someone to do the heating and air
conditioning ducts or can have the landscaper working the outside layout. The partial
order diagram will allow one to see how long the whole process will take. Below, table
shows each task that needs to be done, and the amount time required for that task. The
amount of time is estimated.
The next table shows, what task precedes each task. This allows to see what tasks
can be done at the same time. If one task does not depend on the other, then those two
tasks can be done at the same time.
1 Find Plot 2 days
2 Excavate land 5 days
3 Dig for foundation 3days
4 Lay concrete foundation 5 days
5 Exterior firework 2 days
6 Exterior electrical 2 days
7 Exterior gas line 5 days
NOTES
Task Percent Tasks Time
Partial Order Formula: X R Y <=> X = Y or X precedes Y
The following Hasse diagram from left to right to find the minimum time for the whole
process of constructing the house.
1 0 2 days
2 1 5 days
3 2 3days
4 3 5 days
5 1, 2, 3, 4 2 days
6 1, 2, 3, 4 2 days
7 1, 2, 3, 4 5 days
8 4 2 days
9 8 2 days
10 8 2 days
11 8 2 days
12 8 2 days
13 8 2 days
14 10, 11, 12, 13 2 days
15 14 2 days
16 8 2 days
17 15 2 days
18 17 2 days
19 17 2 days
20 19 2 days
21 20 2 days
DMC 1752
NOTES
1.7 EXERCISE
Duration in weeks Likely Optimistic Pessimistic
Partial Order Diagram: Construction of a House
Critical Path Method (CPM): 1, 2, 3,4,8,16,21 which is 35 days
The critical path time can be reduced if done certain asks differently. The time for
landscaping right now is 14 days. But if more workers re used, then the time will be less.
If pre-fabricated materials are used, then it will take less time, because less people are
needed, and less time is used in making the material. so depending on the design of the
house, the time can be reduced or even increased. If less room is needed by the family that
is living there, then it will take less time, then des gning at large size home with many rooms,
and closets inside each room. What can also reduce the time is, experience of the construction
workers. If the workers are new, then they will be a b slower, and making more mistakes
which increases the time for each task.
1. Find the following problem using PERT model:
A) Calculate the expected duration per activity
i) 5+5*10+21/6 = 11
ii) 4+4*6+8/6 = 6
iii) 6+4*14+16/6 = 13
Activity A 10 5 21
Activity B 6 4 8
Activity C 14 6 16
Task1
2 Days
Task 2
5 Days
Task 3
3 Days
Task 4
5 Days
Task 5
2 Days
Task 6
2 Days
Task 7
2 Days
Task 8
5 Days
Task
13
Task
16
Task
12
Task
11
Task
10
Task 9
3 Days
Task
14
Task
15
Task
17
NOTES
1.8 NETWORK ANALYSIS: RESOURCE SCHEDULING
1.8.1 Resources and Networks
1.8.2 Project resources
1.8.3 Resource Scheduling Requirements
B) Determine the standard deviation
A 21-5 = 16/6 = 2.67
B 8-4 = 4/6 = 0.67
C 16-6 = 10/6 =1.67
((2.67)2 + (0.67)2 + (1.67)2)0.5 = 3.21
C) Assuming a normal distribution estimate the probabi ty that the project duration is
i) more than A days
ii) less than B days
iii) between C and D days
This section deals with the resources aspects of network analysis, and shows how
resources of men, machines, etc could be scheduled over the project duration to be able
to deal with resource and/or time constraints.
The usefulness of networks is not confined only to the time and cost factors which
have been discussed so far. Considerable assistance in planning and controlling the use of
resources can be given to management by appropriate development of the basic network
techniques.

The resources (men of varying skills, machines of all ypes, the required materials,
finance, and space) used in a project are subject to varying demands and loadings as the
project proceeds. Management need to know what activities and what resources are
critical to the project duration, and if resource limi tions (eg shortage of materials, limited
number of skilled personnel) might delay the project. They also wish to ensure, as far as
possible, constant work rates to eliminate paying overtime at one stage of a project and
having short time working at another stage.
To be able to schedule the resource requirements for a project the following details
are required.
DMC 1752
NOTES
1.8.4 Resources Scheduling Example Using a Gantt chart
PROJECT DATA
ACTIVITY
(DAYS)
PRECEDING
ACTIVITY
DURATION LABOUR
REQUIREMENT
a. The customary activity times, descriptions and sequenc s as previously described.
b. The resource requirements for each activity showing th classification of the resource
and the quantity required.
c. The resources in each classification that are available to the project. If variations
in availability are likely during the project life, th e must also be specified.
d. Any management restrictions that need to be considered eg which activities may
or may not be split or any limitations on labour mobility.
A simple project has the following time and resource d a (for simplicity, only the one
resource of labour is considered, but similar principles would apply to other types of inter-
changeable resources).
Resource constraint - 2 men only available
Critical Path Activity D
Duration 5 Days (Without taking account of the resource constraint).
A - 1 2men
B - 2 1man
C A 1 1 man
D - 5 1 man
E B 1 1 man
F C 1 1 man
0
0 0
1
1 3
3
2 4
2
2 4
4
5 5
A
1
C

1
D

5
F

1
E

1
B

2
NOTES
1.8.5 Resource Scheduling Steps
Resource Aggregation Profile Based on ESTs
a. Draw the activity time of a Gantt or Bar Chart based on their ESTs
b. Based on the time bar chart prepares a Resource Aggregation Profile ie total resource
requirements in each time period.
c. Examination of the above profile shows that at times more resources are required than
are available if activities commence at their ESTS. he ESTs/LSTs on the network show
that float is available for activities A, C, F, B and E. Having regard to these floats it is
necessary to smooth out the resource requirements so that the resources required do not
exceed the resource constraint, ie delay the commencement of activities (within their float)
and if this procedure is still not sufficient then del the project as a whole. Carrying out
this procedure results in the following resource profi .
0 1 2 3 4 5
Time scale in days
D
A C F
B E
4
3
2
1
0
5
Time scale in days
0 1 2 3 4
Resource availability
A
C F
B E
D
No. of men
required
DMC 1752
NOTES
Resource Allocation - with 2 man constraint
Note:
Resource Allocation Profile with 5 day constraint
This procedure is sometimes termed RESOURCE LEVELLING.
d. Because of the resource constraint of 2 men it has een necessary to extend the project
duration by 1 day. Assume that management state that original project duration (5
days) must not be extended and they require this to be achieved with the minimum extra
resources. In such cases a similar process of varying activity start times within their float is
carried out, resulting in the following resource profi .
The above profile shows that to achieve the 5 day duration it is necessary to
have 3 men available from day 2 to day 4.
5
Time scale in days
0 1 2 3 4
A
C F B E
D
6
No. of men
required
A
B
D
E
C
F
0 1 2 3 4 5
4
3
2
1
0
No. of men
required
Time scale in days
NOTES
1.8.6 Summary
a. To enable resource scheduling to be carried out the resource requirements for
each activity must be specified.
b. In addition the various resources involved (men, machinery etc) must be classified
and the availability and constraints specified.
c. After calculating the critical path in the usual manner a Resource Aggregation
Profile(s) is prepared ie the amount of the resource(s required in each time period
of the project based on the ESTs of each activity.
d. If the resource aggregation indicates that a constraint is being exceeded, and float
is available the resource usage is smoothed i.e. the start of activities is delayed.
DMC 1752
NOTES
NOTES
UNIT V
CHAPTER 1
QUEUEING MODELS
1.1 WAITING LINE MODELS
Introduction
Queueing theory
Basic Terminology
Queuing Model:
Waiting lines are the most frequently encountered problems in everyday life. For
example, queue at a cafeteria, library, bank, etc. Common to all of these cases are the
arrivals of objects requiring service and the attendant delays when the service mechanism
is busy. Waiting lines cannot be eliminated completely but suitable techniques can be used
to reduce the waiting time of an object in the system. A long waiting line may result in loss
of customers to an organization. Waiting time can be reduced by providing additional
service facilities, but it may result in an increase i the idle time of the service mechanism.
is based on mathematical theories and deals with the roblems arising
due to flow of customers towards the service facility.
The waiting line models help the management in balanci between the cost associated
with waiting and the cost of providing service. Thus, ueing or waiting line models can
be applied in such situations where, decisions have to be taken to minimize the waiting time
with minimum investment cost.
The present section focuses on the standard vocabulary of Waiting Line Models.
It is a suitable model used to represent a service oriented problem,
where customers arrive randomly to receive some service, where the service time is also a
random variable.
DMC 1752
NOTES
Arrival:
Service Time:
Server:
Queue Discipline:
Poisson Process:
Queue:
Waiting time in queue:
Waiting time in the system:
Queue length:
Average length of line:
Average idle time:
FIFO:
Bulk Arrivals:
1.1.2 Components of Queuing System
1. Input Source:
2. Queue:
3. Service Discipline:
The statistical pattern of the arrival can be indicated through the probability
distribution of the number of the arrivals in an interval.
The time taken by a server to complete service is known as service time.
It is a mechanism through which service is offered.
It is the order in which the members of the queue are fered service.
It is a probabilistic phenomenon where the number of arrivals in an
interval of length t follows a Poisson distribution with parameter ?t, where ? is the rate of
arrival.
A group of items waiting to receive service, including those receiving the service,
is known as queue.
Time spent by a customer in the queue before being served.
It is the total time spent by a customer in the system. It can
be calculated as follows:
Waiting time in the system = Waiting time in the queue + Service time
Number of persons in the system at any time.
The number of customers in the queue per unit of time.
The average time for which the system remains idle.
It is the first in first out queue discipline.
If more than one customer enter the system at an arri al event, it is known
as bulk arrivals.
The input source generates customers for the service mechanism.
The most important characteristic of the input source s its size. It may be either
finite or infinite. Since the calculations are far easier for the infinite case, this
assumption is often made even when the actual size is elatively large. If the population
size is finite, then the analysis of queueing model becomes more involved. The
statistical pattern by which calling units are generated over time must also be
specified. It may be Poisson or Exponential probability distribution.
It is characterized by the maximum permissible number f units that it can
contain. Queues may be infinite or finite.
It refers to the order in which members of the queue are
selected for service. Frequently, the discipline is first come, first served.
NOTES
Following are some other disciplines:
4. Service Mechanism:
Unusual Customer/Server Behaviour
Customers Behavior
Balking.
o
o
o
LIFO (Last In First Out)
SIRO (Service In Random Order)
Priority System
A specification of the service mechanism includes a
description of time to complete a service and the number of customers who are
satisfied at each service event. The service mechanism also prescribes the number
and configuration of servers. If there is more than on service facility, the calling
unit may receive service from a sequence of these. At given facility, the unit
enters one of the parallel service channels and is completely serviced by that server.
Most elementary models assume one service facility with either one or a finite
number of servers. The following figure shows the phys cal layout of service facilities.
A customer may not like to join the queue due to long waiting line.
Single Channel, Single Phase
Service
Facility
Single Channel, Multiple
Phase
Service
Facility
Service
Facility
Multiple Channel, Single
Phase
Service
Facility
Service
Facility
Multiple Channel, Multiple Phase
Service
Facility
Service
Facility
Service
Facility
Service
Facility
v
DMC 1752
NOTES
Reneging.
Collusion.
Jockeying.
Servers Behavior
Failure.
Changing service rates.
Batch processing.
What are the underlying assumptions?
1.2 THE M/M/1 ( /FIFO) SYSTEM
v
v
v
v
v
v
v
v
v
v
v
v
v
A customer may leave the queue after waiting for sometime due to
impatience.
Several customers may cooperate and only one of them y stand in
the queue.
When there are a number of queues, a customer may move from one
queue to another in hope of receiving the service quic y.
The service may be interrupted due to failure of a se er (machinery).
A server may speed up or slow down, depending on
the number of customers in the queue. For example, when the queue is long, a
server may speed up in response to the pressure. On the contrary, it may slow
down if the queue is very small.
A server may service several customers simultaneously this
phenomenon is known as batch processing.
The source population has infinite size.
The inter-arrival time has an exponential probability istribution with a mean arrival
rate of one customer arrivals per unit time.
There is no unusual customer behaviour.
The service discipline is FIFO.
The service time has an exponential probability distribution with a mean service
rate of m service completions per unit time.
The mean arrival rate is less than the mean service rate, i.e., l < m.
There is no unusual server behaviour.
It is a queueing model where the arrivals follow a Poi n process, service times are
exponentially distributed and there is only one server In other words, it is a system with
Poisson input, exponential waiting time and Poisson output with single channel.
Queue capacity of the system is infinite with first in first out mode. The first M in the
notation stands for Poisson input, second M for Poisson output, 1 for the number of
servers and a for infinite capacity of the system.

NOTES
1.3 EXAMPLES
1.3.1 Example 1
Given
1.3.2 Example 2
-
Formulae
Students arrive at the head office of www.universaltea her.com according to a Poisson
input process with a mean rate of 40 per hour. The time required to serve a student has an
exponential distribution with a mean of 50 per hour. Assume that the students are served
by a single individual find the average waiting time of a student.
Solution.
? = 40/hour, = 50/hour
Average waiting time of a student before receiving service (W
q
)
8 . 4
40) - (50 50
40
(Wq)
minutes
New Delhi Railway Station has a single ticket counter. During the rush hours, customers
arrive at the rate of 10 per hour. The average number customers that can be served is 12
per hour. Find out the following:
Probability that the ticket counter is free
Average number of customers in the queue
Probability of zero unit in the queue (P
o
) = 1
?
-----

Average queue length (Lq ) =
?
2
--------
(- ? )
Average number of units in the system (L
s
) =
?
--------
- ?
Average waiting time of an arrival (W
q
) =
?
----------
( - ?)
Average waiting time of an arrival in the system (Ws) =
1
---------
- ?
= =
DMC 1752
NOTES
Solution.
1.3.3 Example 3
Solution.
Given
? = 10/hour, = 12/hour
At Bharat petrol pump, customers arrive according to a Poisson process with an
average time of 5 minutes between arrivals. The servic time is exponentially distributed
with mean time = 2 minutes. On the basis of this infor tion, find out
1. What would be the average queue length?
2. What would be the average number of customers in the q euing system?
3. What is the average time spent by a car in the petrol p?
4. What is the average waiting time of a car before receiving petrol?
Probability that the counter is free (W
s
) = 1 -
10
-----
12
=1/6
Average number of customers in the queue (L
q
) =
(10)
2
--------------
12 (12 - 10)
= 25/6
Average inter arrival time =
1
--- =
?
1
---hour =5 minutes
12
?= 12/hour
Average service time =
1
--- =
1
---hour =2minutes
30
= 30/hour
Average queue length, Lq =
(12)
2

-----------
30(30 - 12)
4
= ----
15
NOTES
1.3.4 Example 4
Assuming Poisson arrivals and exponential service find
Solution.
Universal Bank is considering opening a drive in window for customer service.
Management estimates that customers will arrive at the rate of 15 per hour. The teller
whom it is considering to staff the window can service customers at the rate of one every
three minutes.
1. Average number in the waiting line.
2. Average number in the system.
3. Average waiting time in line.
4. Average waiting time in the system.
Given
? = 15/hour,
= 3/60 hour or 20/hour
Average number of customers, Ls =
12
-------
30 - 12
2
= ----
3
Average time spent at the petrol pump = ?
1
----------
30 - 12
= 3.33 minutes
Average waiting time of a car before receiving
petrol =
12
------------
30(30 - 12)
= 1.33 minutes
Average number in the waiting line =
(15)
2
-------------
20(20 - 15)
= 2.25 customers
Average number in the system =
15
----------
20 - 15
= 3 customers
Average waiting time in line =
15
------------
20(20 - 15)
= 0.15 hours
Average waiting time in the system =
1
---------
20 - 15
= 0.20 hours
DMC 1752
NOTES
1.3.5 Example 5
Solution.
1.4 THE M/M/1 (N/FIFO) SYSTEM
Chabra Saree Emporium has a single cashier. During the rush hours, customers arrive
at the rate of 10 per hour. The average number of cust ers that can be processed by the
cashier is 12 per hour. On the basis of this information, find the following:
Probability that the cashier is idle
Average number of customers in the queuing system
Average time a customer spends in the system
Average number of customers in the queue
Average time a customer spends in the queue
Given
? = 10/hour, = 12/hour
It is a queuing model where the arrivals follow a Pois process, service times are
exponentially distributed and there is only one server Capacity of the system is limited to
N with first in first out mode.
P
o
=
10
1- ---
12
=1/6
L
s
=

10
--------
12 - 10
= 5 customers
W
s
=
1
----------
12 - 10
= 30 minutes
L
q
=
(10)
2
-------------
12(12 - 10)
=25/6 customers
W
q
=

10
-------------
12(12 - 10)
= 25 minutes

NOTES
1.5 EXAMPLES
1.5.1 Example
Solution.
-
-
The first M in the notation stands for Poisson input, econd M for Poisson output, 1
for the number of servers and N for capacity of the system.?
Students arrive at the head office of www.universaltea her.com according to a Poisson
input process with a mean rate of 30 per day. The time required to serve a student has an
exponential distribution with a mean of 36 minutes. As ume that the students are served by
a single individual, and queue capacity is 9. On the b sis of this information, find the following:
The probability of zero units in the queue.
The average line length.
Po =
1-?
--------
1-?
N + 1
L
s
=
?
--------
1 - ?
(N+1)?
N+1
-----------
1-?
N + 1
Lq = Ls ?/
Wq =
Lq
----
?
W
s
=
L
s
----
?
?=
30
---------
60 X 24
= 1/48 students per minute
= 1/36 students per minute
? = 36/48 = 0.75 N = 9
P
o
=
1 0.75
-------------
1- (0.75)
9 + 1
= 0.26
L
s
=
0.75
---------
1 - 0.75
-
(9+1)(0.75)
9+1
------------------
1 (0.75)
9 + 1
= 2.40 or 2 students.
v
v
DMC 1752
NOTES
1.6 THE M/M/C (? /FIFO) SYSTEM
1.7 EXAMPLES
1.7.1 Example 1
Solution.
It is a queuing model where the arrivals follow a Pois process, service times are
exponentially distributed and there are C servers.
The Silver Spoon Restaurant has only two waiters. Customers arrive according to a
Poisson process with a mean rate of 10 per hour. The service for each customer is
exponential with mean of 4 minutes. On the basis of th information, find the following:
Probability of waiting for a service.
The expected percentage of idle time for each waiter.
This is an example of M/M/C, where c = 2
? = 10 per hour or 1/6 per minute.
= 1/4 per minute
? = 1/3
1
---- =
P
0
1
0
(?/)
n
--------
n!
+
(?/)
c
-------- X
c!
1
----
1 - ?
Where ? =
?
------
c
L
q
= P
0
X
(?/)
c
------ X
c!
?
--------
(1 - ? )
2
W
q
=
1
--- X
?
L
q
W
s
=
W
q
+
1
----

L
s
= L
q
+
?
----
=
c
n
NOTES
1.7.2 Example 2
Solution.
Case I - Treating depositors and withdrawers as unit of M/M/1 system.
Universal Bank has two tellers working on savings acco s. The first teller handles
withdrawals only. The second teller handles deposits o ly. It has been found that the service
times distributions for both deposits and withdrawals exponential with mean service
time 2 minutes per customer. Deposits and withdrawals found to arrive in a Poisson
fashion with mean arrival rate 20 per hour. What would be the effect on the average
waiting time for depositors and withdrawers, if each teller could handle both withdrawers
and depositors?
Given
? = 20 per hour or 1/3 per minute, = 1/2 per minute, c = 2
1
---- =
P
0
1
0
(?/)
n
--------
n!
+
(?/)
c
--------
c!
X
1
----
1 - ?
1
---- =
P
0
1
0
(2/3)
n
--------
n!
+
(2/3)
2
--------
2!
X
1
------
1 - 1/3
1
---- =
P
0
1 +
2
------
3
+
1
---
3
P
0
=
1
---
2
The expected percentage of idle time for each waiter.
1 - ? = 1 - 1/3 = 2/3 = 67%
Average waiting time of an arrival (W
q
) =
?
----------
( - ? )
W
q
=
1/3
---------------- = 4 minutes
1/2 (1/2 - 1/3)
=
c
n
n
DMC 1752
NOTES
Case II - If each teller handles both depositors and
1.8 THE M/E
K
/1 ( /FIFO) SYSTEM
An Erlang Family (E
k
)
Hence, when both tellers handle both withdrawals and d posits, then expected waiting
time is reduced.
It is a queuing model where the arrivals follow a Pois n process, service time follows
an Erlang (k) probability distribution and the number f server is one. Queue capacity of
the system is infinite with first in first out mode. The first M in the notation stands for
Poisson input, k for number of phases, 1 for the number of servers and a for infinite
capacity of the system.
E
k
of a probability distribution is the probability distribution of a random variable,
which can be expressed as the sum ? k independently, identically distributed exponential
variables.

P
0
= 1/2
L
q
= 1/12
W
q
=
1
-----
?
X L
q
W
q
= 1/4 minutes
The expected numbers of customers in the queue, L
q
=
(1+k)
--------
2k
X
?
2
-----------
( - ? )
The expected waiting time before being served, W
q
=
(1+k)
--------
2k
X
?
-----------
( - ? )
The expected time spent in the system, W
s
= W
q
+
1
-----

The expected numbers of customers in the system, L
s
= ? W
s

NOTES
1.9 EXAMPLES
1.9.1 Example 1
Solution.
1.9.2 Example 2
The registration of a student at www.universalteacher.com requires three steps to be
completed sequentially. The time taken to perform each step follows an exponential
distribution with mean 30/3 minutes and is independent of each other. Students arrive at
the head office according to a Poisson input process with a mean rate of 25 per hour.
Assuming that there is only one person for registration. On the basis of this information,
find the following:
a. expected waiting time.
b. expected numbers of students in the queue.
This is an M/E
k
/1 system.
Here k = 3, ? = 25 per hour.
Repair of a certain type of machine requires three ste to be completed sequentially.
The time taken to perform each step follows an exponen l distribution with mean 20/3
minutes and is independent of each other. The machine follows a Poisson
process with rate of 1per 2 hours. Assuming that there is only one mechanic, find out
a. The expected idle time of a machine.
b. The average waiting time of a broken down machine in a queue.
c. The expected number of broken down machines in the queue.
d. The average number of machines which are not in operat n.
Service time per phase =
1
---
3
=
30
----
3
Therefore, = 30 per hour.
The expected numbers of students in
the queue, L
q
=
1+3
------
2 x 3
X
(25)
2
--------------
30(30 - 25)
=
2.78 students or 3
students
The expected waiting time before
being served, W
q
=
1+3
------
2 x 3
X
25
-------------
30(30 - 25)
=
1/9 hour or 6.67
minutes
DMC 1752
NOTES
Solution.
As k approaches to infinity, the expressions of L
q
, W
q
, W
s
and L
s
are given by
This is an M/E
k
/1 system.
Here k = 3, ? = 1/2 per hour.
Here k =3, ? =1/2 per hour.
Service time per phase =
1
---
3
=
20
----
3
Therefore, = 3 per hour.
The expected numbers of customers in the
queue, L
q
=
1+3
------
2 X 3
X
(1/2)
2
-----------
3(3 - 1/2)
= 1.33 minutes
The expected waiting time before being
served, W
q
=
1+3
------
2 X 3
X
1/2
---------
3(3 - 1/2)
=
2 minutes
40 seconds
The expected time spent in the
system, W
s
=
2
----
45
+
1
----
3
=
22 minutes
40 seconds
The expected numbers of customers in the
system, L
s
=
1
-----
2
X
17
-----
45
= 11.33 minutes
L
q
=
?
2
-----------
2 ( - ? )
W
q
=
?
------------
2 ( - ? )
W
s
=
1
W
q
+ ---

L
s
=
?
L
q
+ -----

NOTES
1.9.3 Example 3
Solution.
Summary
1.10 EXERCISES
At Indira Gandhi airport, it takes exactly 6 minutes to land an aeroplane, once it is
given the signal to land. Although incoming planes hav scheduled arrival times, the wide
variability in arrival times produces an effect which kes the incoming planes appear to
arrive in a Poisson fashion at an average rate of 6 per hour. This produces occasional
stack-ups at the airport, which can be dangerous and c tly. Under these circumstances,
how much time will a pilot expect to spend circling the field waiting to land?
Here, service time is fixed being equal to 6 minutes. service distribution is last
member of Erlang family, i.e., for k = a Mean arrival rate of aeroplane, ? = 6 per hour
Mean landing rate of planes, = (1/6) X 60 = 10 per hour
Waiting lines, like birds, are omnipresent. For instance, queue at a cafeteria, library,
bank, etc. The reason for waiting lines is that in any system, an item cannot be serviced
immediately on arrival and each new arrival has to wai for sometime before it is attended.
Queuing or waiting line models can be applied in such tuations where decisions have to
be taken to minimize the waiting time with minimum inv stment cost.
In this chapter, we discussed the following waiting li models:
The M/M/1 ( /FIFO) system
The M/M/1 (N/FIFO) system
The M/M/C ( /FIFO) system
The M/E
k
/1 ( /FIFO) system
1. In a work station orders arrive according to a Poisson arrival process with arrival rate
?.An order consists of N independent jobs. The distribu n of N is given by
1 k
p ) p 1 ( ) k N ( P
With k = 1,2,. and 0 d p < 1. Each job requires an exponentially distributed
amount of processing time with mean 1/.
i. Derive the distribution of the total processing time o an order.
ii. Determine the distribution of the number of orders in e system.
W
q
=
6
---------------------
2 X 10 X (10 - 6)
= 3/40 hours = 4.5 minutes
= =
DMC 1752
NOTES
2. Consider a work station where jobs arrive according to a Poisson process with arrival
rate ?. The jobs have an exponentially distributed service time with mean 1/. So the
service completion rate (the rate at which jobs depart from the system) is equal to . If
the queue length drops below the threshold QL the serv e completion rate is lowered
to _L. If the queue length reaches Q
H
, where Q
H
QL, the service rate is increased to
H
.(L stands for low, H for high.)Determine the queue le th distribution and the mean
time spent in the system.
3. A repair man fixes broken televisions. The repair time is exponentially distributed with
a mean of 30 minutes. Broken televisions arrive at his repair shop according to a
Poisson stream, on average 10 broken televisions per day (8 hours).
i. What is the fraction of time that the repair man has no work to do?
ii. How many televisions are, on average, at his repair shop?
iii. What is the mean throughput time (waiting time plus re ir time) of a television?
4. In a gas station there is one gas pump. Cars arrive at the gas station according to a
Poisson process. The arrival rate is 20 cars per hour. Cars are served in order of
arrival. The service time (i.e. the time needed for pumping and paying) is exponentially
distributed. The mean service time is 2 minutes.
i. Determine the distribution, mean and variance of the number of cars at the gas
station.
ii. Determine the distribution of the sojourn time and the waiting time.
iii. What is the fraction of cars that has to wait longer than 2 minutes?
An arriving car finding 2 cars at the station immediately leaves.
iv. Determine the distribution, mean and variance of the number of cars at the gas
station.
v. Determine the mean sojourn time and the mean waiting time of all cars (including
the ones that immediately leave the gas station).
5. A gas station has two pumps, one for gas and the other for LPG. For each pump
customers arrive according to a Poisson process. On average 20 customers per hour
for gas and 5 customers for LPG. The service times are exponential. For both pumps
the mean service time is 2 minutes.
i. Determine the distribution of the number of customers t the gas pump, and at the
LPG pump.
ii. Determine the distribution of the total number of customers at the gas station.
6. Consider an M=M=1 queue with two types of customers. T mean service time of all
customers is 5 minutes. The arrival rate of type 1 customers is 4 customers per hour
and for type 2 customers it is 5 customers per hour. T e 1 customers are treated with
priority over type 2 customers.
i. Determine the mean sojourn time of type 1 and 2 custom rs under the preemptive-
resume priority rule.

NOTES
ii. Determine the mean sojourn time of type 1 and 2 customers under the non-
preemptive Priority rule.
7. Consider an M=M=1 queue with an arrival rate of 60 cus mers per hour and a mean
service time of 45 seconds. A period during which there are 5 or more customers in
the system is called crowded, when there are less than 5 customers it is quiet. What is
the mean number of crowded periods per day (8 hours) a how long do they last on
average?
8. Consider a machine where jobs arrive according to a Po son stream with a rate of 20
jobs per hour. The processing times are exponentially istributed with a mean of 1/
hours. The processing cost is 16 dollar per hour, and the waiting cost is 20 dollar per
order per hour. Determine the processing speed minimizing the average cost per
hour.
DMC 1752
NOTES NOTES
NOTES
NOTES
DMC 1752
NOTES NOTES

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1 ANNA UNIVERSITY CHENNAI

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RESOURCE MANAGEMENT TECHNIQUES

Variants of assignment models

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Branch and Bound is a general search method.

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RESOURCE MANAGEMENT TECHNIQUES

RESOURCE MANAGEMENT TECHNIQUES

Take the 2nd CC formula:

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Have a list of the activities.

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