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SIKKIM MANIPAL UNIVERSITY DEPARTMENT OF DISTANCE EDUCATION ASSIGNMENT SEMESTER 2 FULL NAME ROLL NUMBER LEARNING CENTER SUBJECT NAME SUBJECT CODE BOOK ID MODULE NO : Galchar Pankaj N : 521113886 : 1771 : Operations Research : MB0048 : B1301 : SET 1

DATE OF SUBMISSION AT THE LEARNING CENTRE : 19-June-2012 FACULTY SIGNATURE :

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Master of Business Administration-MBA Semester 2nd MB0048 Operations Research - 4 Credits Assignment Set- 1
Q.1 A toy company manufactures two types of dolls, a basic version doll-A and a deluxe version doll-B. Each doll of type B takes twice as long to produce as one of type A, and the company would have time to make maximum of 1000 per day. The supply of plastic is sufficient to produce 1000 dolls per day(both A & B combined). The deluxe version requires a facny dress of ehich there are only 500 per day available. If the company makes a profit of Rs 3.00 and Rs 5.. per doll, respectively on doll A and B, then how many of each doll should be produced per day in order to maximise the total profit. Formulate this problem.
Ans :Let X1 and X2 be the number of dolls produced per day of type A and B, respectively.

Let the A require t hrs. So that the doll B require 2t hrs. So the total time to manufacture X1 and X2 dolls should not exceed 2000t hrs. Therefore, tX1 + 2tX2 2000t Other constraints are simple. Then the linear programming problem becomes:

Maximize p = 3 X1 + 5 X2 Subject to restrictions, X1 + 2X2 2000 (Time constraint) X1 + X2 1500 (Plastic constraint) X2 600 (Dress constraint) And non-negatively restrictions 2 X1, X2 0

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Q.2 What are the advandages of liner programming techniques? Ans :Advantages of Linear Programming :1.The linear programming technique helps to make the best possible use of available productive resources (such as time, labour, machines etc.) 2. In a production process, bottle necks may occur. For example, in a factory some machines may be in great demand while others may lie idle for some time. A significant advantage of linear programming is highlighting of such bottle necks. Disadvantages of Linear Programming :1. Linear programming is applicable only to problems where the constraints and objective function are linear i.e., where they can be expressed as equations which represent straight lines. In real life situations, when constraints or objective functions are not linear, this technique cannot be used. 2. Factors such as uncertainty, weather conditions etc. are not taken into consideration.

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Q.3 solve the following assignment problem.
Operation Operation

M1 10 9 15

M2 15 10 16

M3 12 9 16

M4 11 12 17

01 1 02 2 03 3

Ans:Reduced row matrix Operation 01 02 03 04 M1 10 9 15 0 M2 15 10 16 0 M3 12 9 16 0 M4 11 12 17 0

Optimum assignment solution Operation 01 02 03 04 M1 0 X 1 X M2 5 1 0 X M3 2 0 X X M4 1 3 X 0

Hungarian method leads to multiply solution selecting (03,M2) arbitarity. 01 to M1 02 to M3 03 to M3 04 to M4 10 9 16 0 _____ 35 _____ Therefore the optimum assignment schedule is O1 to M1, O2 to M2,O3 to M3, and O4 to M4. total wastages

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Q.4 what is integer programming? Ans :The linear-programming models that have been discussed thus far all have been continuous, in the sense that decision variables are allowed to be fractional. Often this is a realistic assumption. For instance, we mighteasily produce 10234 gallons of a divisible good such as wine. It also might be reasonable to accept a solution giving an hourly production of automobiles at 5812 if the model were based upon average hourly production, and the production had the interpretation of production rates.At other times, however, fractional solutions are not realistic, and we must consider the optimization problem:

This problem is called the (linear) integer-programming problem. It is said to be a mixed integer program when some, but not all, variables are restricted to be integer, and is called a pure integer program when all decision variables must be integers. As we saw in the preceding chapter, if the constraints are of a network nature, then an integer solution can be obtained by ignoring the integrality restrictions and solving the resulting linear program. In general, though, variables will be fractional in the linear-programming solution, and further measures must be taken to determine the integer-programming solution. The purpose of this chapter is twofold. First, we will discuss integer-programming formulations. This should provide insight into the scope of integer-programming applications and give some indication of why many practitioners feel that the integer-programming model is one of the most important models in management science. Second, we consider basic approaches that have been developed for solving integer and mixed-integer programming problems.

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Q.5 Explain the different steps involved in simulation methodologies?
Ans :Introduction Welcome to the tenth unit of Operations Research Management on Simulation. While formulating mathematical models of various systems or situations, the statistical distribution of the variables conform to a standard pattern. However, it is not always true. In a typical pricing problem, the management cannot risk changing the price of the product without evaluating the various alternatives. Representing the terms of a mathematical model is virtually impossible because of the complexity of the interaction of several variables having a bearing on the final outcome. One of the approaches to the problem is to assign probabilities of achieving various sales targets under different conditions of completion. These different conditions may be related to changes in price, demand and choose the alternative giving the maximum profit. Where formulating a mathematical model is difficult, simulation is of great help for decision making. Basic Concepts :Simulation is also called experimentation in the management laboratory. While dealing with business problems, simulation is often referred to as Monte Carlo Analysis. Two American mathematicians, Von Neumann and Ulan, in the late 1940s found a problem in the field of nuclear physics too complex for analytical solution and too dangerous for actual experimentation. They arrived at an approximate solution by sampling. The method they used had resemblance to the gamblers betting systems on the roulette table, hence the name Monte Carlo has stuck. Imagine a betting game where the stakes are based on correct prediction of the number of heads, which occur when five coins are tossed. If it were only a question of one coin; most people know that there is an equal likelihood of a head or a tail occurring, that is the probability of a head is . However, without the application of probability theory, it would be difficult to predict the chances of getting various numbers of heads, when five coins are tossed. Why dont you take five coins and toss them repeatedly. Note down the outcomes of each toss after every ten tosses, approximate the probabilities of various outcomes. As you know, the values of these probabilities will initially fluctuate, but they would tend to stabilise as the number of tosses are increased. This approach in effect is a method of sampling, but is not very convenient. Instead of actually tossing the coins, you can conduct the experiment using random numbers. Random numbers have the property that any number is equally likely to occur, irrespective of the digit that has already occurred.

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Simulation Procedure :The approach to solve a gambling problem can be extended to decision-making in business where risk is a common feature. The probabilities associated with the variables can be estimated on the basis of availability of previous data or by inputting subjective values. In any simulation problem, the variables to be studied will be given with associated probabilities. The initial conditions will also be specified. You can choose random numbers from table. However, to get uniform results, the random numbers will be specified. The first step involves coding the data that is, you assign random numbers to the variable. Then you identify the relationship between the variables and run the simulation to get the results

Simulation is a way to model random events, such that simulated outcomes closely match real-world outcomes. By observing simulated outcomes, researchers gain insight on the real world. Why use simulation? Some situations do not lend themselves to precise mathematical treatment. Others may be difficult, time-consuming, or expensive to analyze. In these situations, simulation may approximate real-world results; yet, require less time, effort, and/or money than other approaches. How to Conduct a Simulation A simulation is useful only if it closely mirrors real-world outcomes. The steps required to produce a useful simulation are presented below. 1. Describe the possible outcomes. 2. Link each outcome to one or more random numbers. 3. Choose a source of random numbers. 4. Choose a random number. 5. Based on the random number, note the "simulated" outcome. 6. Repeat steps 4 and 5 multiple times; preferably, until the outcomes show a stable pattern. 7. Analyze the simulated outcomes and report results. Simulation Example In this section, we work through an example to show how to apply simulation methods to probability problems. Problem Description :-

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On average, suppose a baseball player hits a home run once in every 10 times at bat, and suppose he gets exactly two "at bats" in every game. Using simulation, estimate the likelihood that the player will hit 2 home runs in a single game.

Q.6. write down the basic difference between PERT & CPM.
Ans :Project management has evolved as a new field with the development of two analytic techniques for planning, scheduling and controlling projects. These are the Critical Path Method (CPM) and the Project Evaluation and Review Technique (PERT). PERT and CPM are basically time-oriented methods in the sense that they both lead to the determination of a time schedule. Basic Difference between PERT and CPM :Though there are no essential differences between PERT and CPM as both of them share in common the determination of a critical path. Both are based on the network representation of activities and their scheduling that determines the most critical activities to be controlled so as to meet the completion date of the project. PERT Some key points about PERT are as follows: PERT was developed in connection with an R&D work. Therefore, it had to cope with the uncertainties that are associated with R&D activities. In PERT, the total project duration is regarded as a random variable. Therefore, associated probabilities are calculated so as to characterise it. It is an event-oriented network because in the analysis of a network, emphasis is given on the important stages of completion of a task rather than the activities required to be performed to reach a particular event or task. PERT is normally used for projects involving activities of non-repetitive nature in which time estimates are uncertain. It helps in pinpointing critical areas in a project so that necessary adjustment can be made to meet the scheduled completion date of the project. CPM CPM was developed in connection with a construction project, which consisted of routine tasks whose resource requirements and duration were known with certainty. Therefore, it is basically deterministic. CPM is suitable for establishing a trade-off for optimum balancing between schedule time and cost of the project. CPM is used for projects involving activities of repetitive nature. PROJECT SCHEDULING BY PERT-CPM It consists of three basic phases: planning, scheduling and controlling. Phases of PERT-CPM 1. Project Planning: In the project planning phase, you need to perform the following activities: Identify various tasks or work elements to be performed in the project. Determine requirement of resources, such as men, materials, and machines, for carrying out activities listed above. Estimate costs and time for various activities. 8|Page

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Specify the inter-relationship among various activities. Develop a network diagram showing the sequential inter-relationships between the various activities.

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2. Project Scheduling: Once the planning phase is over, scheduling of the project is when each of the activities required to be performed, is taken up. The various steps involved during this phase are listed below:

Estimate the durations of activities. Take into account the resources required for these execution in the most economic manner. Based on the above time estimates, prepare a time chart showing the start and finish times for each activity. Use the time chart for the following exercises. To calculate the total project duration by applying network analysis techniques, such as forward (backward) pass and floats calculation To identify the critical path To carry out resource smoothing (or levelling) exercises for critical or scarce resources including re-costing of the schedule taking into account resource constraints 3. Project Control: Project control refers to comparing the actual progress against the estimated schedule. If significant differences are observed then you need to re-schedule the project to update or revise the uncompleted part of the project.

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