DEPARTMENT OF COMPUTER SCIENCE

III CSE I SEM (2011-2012)

OPERATIONS RESEARCH
__________________________________________________________
OBJECTIVE: Using OR we have to minimize number of employees to
complete one project using their maximum efforts to get maximum
profits.
UNIT I

Syllabus
Introduction to Operations Research:
Basic definition, scope, objectives, phases, models and limitations of OR
Linear programming problem,Formulation of LPP,Graphical solution of
LPP,Simplex Method,Artificial Variables,big-m method,two-phase
method,degeneracy and unbound solutions

Objectives:
1) Explain the applicability and use of OR in diverse field
2) Know a short history of OR and be able to explain the term OR
3) Appreciate the nature of Linear programming problem.
4)Show where and how LPP can help decision maker
5)Demonostrate the use of the Simplex Method using both Maximization&
Minimization problem

Lecture plan:
S.No
1

Topic
Basic definition, scope, objectives, phases, models and
limitations of OR

No. of lectures
1

2
3
4
5
6
7

Linear programming problem,Formulation of LPP

Graphical solution of LPP
Simplex Method
Artificial Variables,big-m method
two-phase method
degeneracy and unbound solutions

2
2
2
2
2
2

Assignment:
1)solve the following LPP by using graphical method .
Min z=20x1+10x2
Stc:x1+2x240
3x1+x230

4x1+3x2 60
And x1,x20
2)solve the following LPP using simplex method
Max z=3x1+4x2
Stc:x1-x2 1
-x1+x2 2 and
X1,x2 0
3)solve the following LPP by using two phase simplex method
Max z=5x1+8x2
Stc:3x1+2x2 3
X1+4x2 4
X1+x2 5 and
X1,x2 0
4)use Big-M or penalty method to solve the following LPP
Min Z=4x1+8x2+3x3
Stc:x1+x2 2
2x1+x3 5
X1,x2,x3 0
Important Questions:
1. Define operations research. Explain the features of OR.
2. Anita electric company producers two products P1 and P2. Products are
produced and sold on a weekly basis. The weekly production cannot exceed 25 for
product P1 and 35 for product P2. The company employs total of 60 workers.
Product P1 requires 2 man weeks of labor, while P2 requires one man-weak of
labor. Profit margin on P1 is Rs. 60 and on P2 is Rs. 40. Formulate it as a L.P.P
and solve for maximum profit by graphical method.
3. Solve the following LPP
Max Z=10x1 +15y +20z
STC 10.7x+5y+2z2750
5.4x+10y+4z2210
0.7x+y+2z 445
X, y, z3 o
4. Minimize Z=4x1+4x2
Subject to 3x1+x2=3
4x1+3x26
x1+2x24
x1,x20.
5. Use penalty method to solve the LPP.
Max Z=6x1+4x2

Subject to constraints
2x1+3x230
3x1+2x224
X1+x23
And x1,x20.
Case Study:
i. Identify the OR techniques in the computer applications.
ii. Give applications of the LPP and discuss different methods of LPP.

UNIT II
Syllabus:
Transportation problem
Formulation,solution,unbalanced transportation problem,Finding basic feasible
solutions-North west corner rule,Least cost entry method,vogels approximation
methiod.Optimality test-The steeping stone method and Modi method

Objectives:
1)Recognize and formulate a Transportation problem
2)Locate a basic feasible solution of Transportation problem by various methods
3)Introduce a suitable method when the problem is to maximize the objective
function instead of minimizing it

Lecture plan:
S.no
1
2
3
4
5

Topic
Transportation problem
Formulation,solution,unbalanced
transportation problem
Finding basic feasible solutions-North west
corner rule
Least cost entry method
Vogels approximation method
Optimality test-The steeping stone method
and Modi method

No. of lectures
1
2
1
2
2

Assignment:
1) Determine an initial basic feasible solution to the transportation problem by
using
a) North west corner method b)VAM

A
B
C
demand

1
11
16
21
200

2
13
18
24
225

3
17
14
13
275

4
14
10
10
250

supply
250
300
400

2) Determine an initial basic feasible solution to the transportation problem by

using
a) Lowest cost entry method b)VAM
1
2
3
4
Supply
1
21
16
15
13
11
2
17
18
14
23
13
3
32
27
18
41
19
demand 6
10
12
15
3) Solve the transportation problem in which cell entire represent unit cost, test the
optimality
2
3
5
1
8
7
14
7

7
3
4
6

4
1
7
2

18

Important Questions:
1. Consider the following transportation problem. Find IBFS by using NWCR
source

Destination
D2
D3
2
1
3
2
2
5
40
30

D1
1
3
4
20

O1
O2
O3
Total

Total
D4
4
1
9
10

30
50
20
100

2. Find IBFS by using VAM and obtain optimal solution using MODI method
Origin
O1
O2
O3
O4

D1
10
8
6
16

D2
11
16
10
4

D3
11
19
18
8

D4
15
20
10
9

Supply
110
90
48
152

Demand 73

89

95

143

3. Write algorithm of MODI method.

4. Write algorithm of stepping stone method.
Case Study:
Give general application of the transportation and discuss with programming
languages.

UNIT III
Syllabus:
Assignment model:
Formulation, Hungarian method for optimal solution, solving unbalanced
problem, travelling salesman problem and assignment problem

Objectives:
1) Formulate an Assignment problem
2) Use Hungarian method for solving an Assignment problem
3) Explain with an illustration of travelling sales man problem

Lecture plan:
S.No
1
2
3

Topic
Formulation, Hungarian method for optimal solution
solving unbalanced problem
travelling salesman problem and assignment problem

No. of lectures
2
1
2

Assignment:
1) In a machine shop a supervisor wishes to assign five jobs among six machines
any one of the job can be processed by any one the machine has given below
assign jobs to machines so that the total cost is minimum
13
13
16
23
19
9
11
19
26
16
17
18
12
11
4
9
6
10
7
15
9
14
14
13
9
13
12
8
14
11
0
0
0
0
0
0
2)A company has six jobs to be processed by six machines .The following table
gives the return in rupees. When the ith job (i=1,2,3,4,5,6) is assign the jth machine
(j=1,2,3,4,5,6).how should the jobs we assign to the machines so as to maximize
the over all return.
9
22 58 11 19 27

43
41
74
36
3

78
28
42
11
56

72
91
27
57
53

50
37
49
22
31

63
45
39
25
17

48
33
32
18
28

3) A salesman estimated the following would be the cost on his route visiting the
six cities are shown in the table below
1
2
3
4
5
6

20 23
27
29
34
21
19
26
31
24
26 29
15
36
26
25 16 25

23
18

23 40 23
27 18 12

31
35

16

10

Important Questions:
1. Write algorithm of Hungarian method/Assignment problem.
2. Find the optimal solution to the assignment problem. The data given in the
table refers to production on certain units.
Machines
A
B
C
D
E

1
2
3
4
5

52
52
55
56
50

58
50
56
51
52

58
55
57
51
53

53
60
58
56
56

54
60
59
59
59

operators

3. Three machinists are to be assigned for five jobs that will result in
maximum profit.
Jobs

10

7.5

8.5

6.5

6.5

8.5

Machinists

4. What is a travelling salesman problem? Give its mathematical

representation.

5. Solve the following travelling salesman problem.

A
41
82
40

To
B
46
32
40
From

C
16
50
36

D
40
40
60
-

B
C
D

Case Study:
Discuss the travelling salesman uses and give applications.

UNIT IV
Syllabus:
Sequencing Models

Solution of sequencing problem, processing n jobs through 2 machines, processing

n jobs through 3 machines, processing 2 jobs through m-machines, processing n
jobs through m-machines

Objectives:
1) Understand the meaning of sequencing
2) Give various assumptions made in sequencing
3) Know processing of n-jobs through two machines, 3 machines & etc
4) Explain the processing 2 jobs through n machines & n jobs through m machines

Lecture plan:
S.No
1
2
3
4

Topic
Solution of sequencing problem, processing n jobs
through 2 machines
processing n jobs through 3 machines
processing 2 jobs through m-machines
processing n jobs through m-machines

No. of lectures
2
1
1
2

Assignment:
1) Find the sequence that minimizes the total elapsed time required to complete the
following jobs.
Processing times(in hours)
Jobs
1
2
3
4
5
6
Machine A
4
8
3
6
7
5
Machine B
6
3
7
2
8
4
Determine a sequence for five jobs that will minimize the total elapsed time
.calculate the total idle time for the machines in their period.
2) A company has six jobs which go through three machines X,Y and Z in the
order XYZ the processing time in minutes for each job on each machine are as
follows.
jobs
machin
1
2
3
4
5
6
es
X
18
12
29
36
43
37
Y
7
12
11
2
6
12
Z
19
12
23
47
28
36
What should be the sequence of jobs?
3) There are five jobs each of which are as go through the machines mi,i=1,2,3,4 in the order
m1m2m3m4 processing times are given below

Jobs(j)
C

Machines(i)

m1
11
13
9
16
16
m2
4
3
5
2
6
m3
6
7
5
8
4
m4
15
8
13
9
11
Determine a sequence for these five jobs which will minimize the total elapsed
time T.
Important Questions:
1. State the Johnsons algorithm.
2. A company has 6 jobs which go through three machines X, Y and Z in the order
XYZ. The processing time in minutes for each job on each machine is as follows.
Machines
Jobs
1
2
3
4
5
6
X
18
12
29
36
43
37
Y
7
12
11
2
6
12
Z
19
12
23
47
28
36
Find the optimal sequence, total elapsed time and idle time for each machine.
3. Use graphical method to minimize time needed to process the following jobs on
each machine. Find job which would be done first and also calculate total elapsed
time to complete both jobs.
Machines
A B C D E
Jobs 1
Sequence time
3
4 2 6 2
Job 2

Machines
B C A D E
Sequence time
5
4
3 2 6
4. Find an optimal sequence for the following sequencing problem of four jobs
and five machines (when passing is not allowed) of which processing time (in hrs)
is as follows,
Job

Machine M1
Machine M2
Machine M3
Machine M4
Machine M5

6
4
1
2
8

5
5
3
4
9

4
3
4
5
7

7
2
2
1
5

Also find the total elapsed time.

5. Find the sequence that minimizes the total elapsed time required to complete the
following jobs.

Processing times(in hours)

Jobs
1
2
3
4
5
6
Machine A
4
8
3
6
7
5
Machine B
6
3
7
2
8
4
Determine a sequence for five jobs that will minimize the total elapsed time
.calculate the total idle time for the machines in their period.
Case Study:
Identify the different software for sequencing models.

UNIT V
Syllabus:
Dynamic programming:
Characteristics of dynamic programming, dynamic programming approaches for
priority management employment smoothing. Capital budgeting, stage coach
/shortest path, cargo loading and reliability problems.

Objectives:
1) Explain the relevance of dynamic programming in decision making
2) Formulate and solve some standard problems using dynamic programming

Lecture plan:
1
2
3

Topic
Characteristics of dynamic programming
dynamic programming approach for priority
management employment smoothing
Capital budgeting ,stage coach /shortest path, cargo
loading and reliability problems.

No. of lectures
2
2
2

Assignment:
1. An item have five months selling period with the probability distribution
(given below) of selling in each month.
Probability distribution of selling price in each month
Month
Price
1
2
3
4
5

4
0.10
.05
.05
.05
.05
5
.10
.10
.15
.05
.25
6
.20
.15
.30
.35
.30
7
.30
.25
.15
.25
.20
8
.15
.20
.15
.15
.15
9
.10
.15
.10
.10
.05
10
.05
.10
.10
.05
.00
a. Calculate the expected price for each
b. Faced with these probability distributions for the price over the demand
season, use a method of dynamic programming to determine an optimal
selling policy.
2. An investor has Rs 6000 to invest. This amount can be invested in any of
three ventures available to him. But he must invest in units of Rs.1000. The
potential return form investment in any one venture depends upon the
amount invested according to the following table.
The investor wishes to invest Rs.6000 so that the return from investment
is maximum. Formulate the above problem as a dynamic programming
problem and find the optimum investment policy.
Amount invested
Return from venture
A
B
C
0
0
0
0
1
.5
1.5
1.2
2
1.0
2.0
2.4
3
3.0
2.2
2.5
4
3.1
2.3
2.6
5
3.2
2.4
2.7
6
3.3
2.5
2.8

3. Using dynamic programming approach, solve the reliability problem with

the following data. The total capital available is 10 (in units of thousand
rupees)
Mi
i=1
i=2
i=3
R
C
R
C
R
C
1
.6
2
.8
3
.7
1
2
.7
4
.8
5
.8
2

3
.9
5
.9
6
.9
3
Important Questions:
1. Explain the characteristics and applications of dynamic programming.
2. Define the following terms in dynamic programming.
1. State
2. State variable
3. Stage
4. Decision variable
5. Optimal return
3. A container is to be loaded with 3 items as the stock material. Each item (I) has
weight (w) and the value of (r). The maximum cargo weight of the container to
with stand is 5, and the details are tabulated below.
Item(I)
Weight(W) r
1
2
3

1
3
2

30
80
65

Case Study:
i. Identify different dynamic programming situations; discuss the applications of
cargo loading and reliability.
ii. Discuss capital budget applications.

UNIT VI
Syllabus:
Game Theory:
Competitive games, rectangular games, saddle point, mini max(max min)method
of optimal strategies value of the game, solution of games with saddle point,
dominance principle, rectangular games without saddle points-mixed strategies for
2*2 games

Objectives:
1) Understand decision making with an active Opponent
2) Examine situations where one decision maker completes with or is in conflict
with another decision maker
3) Structure the pay off matrix for a game
4) obtain the saddle point compute the value of game

Lecture plan:
S. No
1

Topic
Competitive games, rectangular games, saddle point,

No. of lectures
2

2
3

mini max (max min)method of optimal strategies

,value of the game
solution of games with saddle point, dominance
principle
rectangular games without saddle points-mixed
strategies for 2*2 games

2
2

Assignment
1. Find the saddle point and hence solve the following games.
2. a)
i
ii
iii
i
15
2
3
ii
6
5
7
iii
-7
4
0
b)

i
ii
iii
iv

i
9
6
2
5

ii
3
5
4
6

iii
1
4
4
2

iv
8
6
3
2

v
0
7
8
1

3. Solve the following 2*2 games without saddle point.

a)
i
ii
i
5
1
ii
3
4

b)
i
ii
i
6
-3
ii
-3
0
4. Reduce the following game by dominance and find the game value.
i
ii
iii
iv
i
3
2
4
0
ii
3
4
2
4

iii
4
2
4
0
iv
0
4
0
8
Important Questions:
1. Explain different terms used in game theory.
2. Solve the game for the given player A and B.

3. Solve the following two persons zero sum game.

Player B

Player
A

B1

B2

B3

A1

11

A2

-1

A3

18

-6

10

Find the value of game and optimal strategies.

4. Two companies A and B are competing for the same product. Their
different strategies are given in the following pay-off matrix.
Company A

Company B
3

Find the optimal strategies

5. Solve the game graphically.
-6

-3/2

-8

Case Study:
Discuss the use of saddle point and describe applications of the game theory.

UNIT VII
Syllabus:
Replacement Models:
Replacement of items that deteriorate whose maintenance costs increased with
time without change in the money value, Replacement of items that fail suddenly,
individual replacement policy, group replacement policy

Objectives:
1) Understand replacement of depreciable assets
2) Discuss major assumptions of replacement theory
3) Explain replacement policy for items whose maintenance cost increases with
time and money value changes with constant rate

Lecture plan:
S.No
1
2

Topic
Replacement of items that deteriorate whose
maintenance costs increased with time without change
in the money value
Replacement of items that fail suddenly, individual
replacement policy, group replacement policy

No. of lectures
2
3

Assignment:
1. A firm is considering replacement of a machine whose cost price is
Rs.12000 and the scrap value is Rs 200. The maintenance cost are found
from experience to be as follows.

Year
1
2
3
4
5
6
7
8
Maintenance
200 500 800 1200 1800 2500 3200 4000
When should the machine be replaced?
2. The following table gives the running costs per year and resale price of a
certain equipment whose purchase price is Rs 5000.
Year
1
2
3
4
5
6
7
8
Running 1500 1600 1800 2100 2500 2900 3400 4000
cost
Resale
3500 2500 1700 1200 800
500
500
500
value
At what year is the replacement due?
3. A machine cost Rs.15000. The running cost for the different years is given
below.
Years
1
2
3
4
5
6
7
Running 2500
3000
4000
5000
6500
8000
10000
cost
Find the optimum replacement period if the rate of interest is 10% every
year and the machine has no salvage value.
Important Questions:
1. Explain briefly the importance of replacement analysis.
2. The following table gives the running costs/year and resale price of an
equipment whose purchase price is Rs.8000.
Year
1
2
3
4
5
6
7
8
Running cost(Rs.)
Resale value(Rs.)

250 260 280 310 350 390 440 5400

0
0
0
0
0
0
0
3500
650 550 470 480 380 350 350
0
0
0
0
0
0
0
i. At what year the replacement due?
ii. If the resale value is zero, will there be any change in the replacement policy?
3. An engineering company offered two types of material handling equipment A
and B. A is priced at Rs.60,000 including cost of installation, and then costs for
operation and maintenance are estimated to be Rs.10,000 for each of the first five
years, increasing by Rs.30,000 per year in the sixth and subsequent year.
Equipment B with a rated capacity same as A, requires an initial investment of
Rs.30,000 and operation and maintenance costs are estimated to be Rs. 13.000 per
year for the first six years, increasing by Rs.4,000 per year for each year from 7th
year onwards. If money is worth 10% determine which equipment the company
should buy, neglect the scrap value of the equipment.

4. There are 1000 bulbs in the system. Survival rate is given below,
Week
0
1
2
3
4
Bulbs in operation at the
100 850 500
200
100
end of the week
0
The group replacement of 100 bulbs costs Rs. 1000 and individual replacement is
Rs.20 per bulb. Suggest suitable replacement policy.
Case Study:
Define group replacement do a case study on different group replacement
components.
Is the individual replacement useful in the hardware designing in the computer and
a brief idea.

UNIT VIII
Syllabus:
Inventory Models:
Inventory cost, models with deterministic demand model a)demand rate uniform,
production rate infinite model b)demand rate not uniform and production rate
infinite, model c) demand rate uniform and production rate infinite.

Objectives:
1) Understand the meaning of inventory and identify inventory related cost
parameters
2) Examine the functions that inventory performs and its importance in managerial
situations
3) Develop the basic economic order quantity model in terms of its assumptions
and costs and demonstrate its use

Lecture plan:
S.No
1
2
3

Topic
Inventory cost, models with deterministic demand
model a)demand rate uniform, production rate infinite
model b)demand rate not uniform and production rate
infinite
model c) demand rate uniform and production rate
infinite.

No. of lectures
2
2
1

Assignment:
1. Define inventory. What are the different types of inventory in industries?
Why it is important to control inventory.

2. What are the inventory models? Enumerate various types inventory models
and describe them briefly.
3. The annual demand for an item is 3200 units. The unit cost is Rs.6 and
inventory carrying charges 25% per annum. If the cost of one procurement
is Rs.150.
Determine i) Economic order quantity ii) No. of orders per year
iii) Time between two consecutive orders iv) The optimum cost.
Important Questions:
1. What is an inventory? What are the various types of inventory carried y a
prediction organization? Explain them briefly.
2. A company uses annually 48,000 units of raw material costing Rs. 1.25 per unit.
Placing order costs Rs. 45and carrying cost is 15%of average inventory. Find the
EOQ. Supposed the company follows EOQ policy and it operates for 300 days in
a year. The procurement time is 12 days with a safety stock of 500 units. Find the
re-order point, the maximum, minimum and the average inventory.
3. Find the economic order quantity for the data given below.
Annual demand: 2400 units
Unit cost of item: Rs.2 per unit
Ordering cost: Rs.30 per order
Inventory holding cost: 20% of the unit cost.
Case Study:
How the inventory model is useful to project design give some examples.