ASSIGNMENTS- MBA Sem-II

MB0032 – OPERATIONS RESEARCH

SMU
ASSIGNMENT
SEMESTER – 2

MBO032

OPERATIONS RESEARCH

SUBMITTED BY:
SIDHARTH RAMTEKE
MBA
ROLL NO.- 520918813

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ASSIGNMENTS- MBA Sem-II
MB0032 – OPERATIONS RESEARCH

SET 1

OPERATIONS RESEARCH

Q.1:- Describe in details the different scopes of application of

Operations Research?

Ans:- Operations Research (OR) in the USA, South Africa and Australia,
and Operational Research in Europe and Canada, is an interdisciplinary
branch of applied mathematics and formal science that uses methods
such as mathematical modeling, statistics, and algorithms to arrive at
optimal or near optimal solutions to complex problems. It is typically
concerned with optimizing the maxima (profit, assembly line performance,
crop yield, bandwidth, etc) or minima (loss, risk, etc.) of some objective
function. Operations research helps management achieve its goals using
scientific methods.

The terms operations research and management science are often

used synonymously. When a distinction is drawn, management science
generally implies a closer relationship to the problems of business
management. The field of operations research is closely related to
Industrial engineering. Industrial engineers typically consider Operations
Research (OR) techniques to be a major part of their toolset.

Some of the primary tools used by operations researchers are

statistics, optimization, probability theory, queuing theory, game theory,
graph theory, decision analysis, and simulation. Because of the
computational nature of these fields, OR also has ties to computer
science, and operations researchers use custom-written and off-the-shelf
software.

Operations research is distinguished by its frequent use to examine

an entire management information system, rather than concentrating only
on specific elements (though this is often done as well). An operations
researcher faced with a new problem is expected to determine which
techniques are most appropriate given the nature of the system, the goals
for improvement, and constraints on time and computing power. For this
and other reasons, the human element of OR is vital. Like any other tools,
OR techniques cannot solve problems by themselves.

Scope of operation Research

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Examples of applications in which operations research is currently used

include:
• Critical path analysis or project planning: identifying those
processes in a complex project which affect the overall duration of
the project
• Designing the layout of a factory for efficient flow of materials
• constructing a telecommunications network at low cost while still
guaranteeing QoS (quality of service) or QoS (Quality of Experience)
if particular connections become very busy or get damaged
• Road traffic management and 'one way' street allocations i.e.
allocation problems.
• Determining the routes of school buses (or city buses) so that as few
buses are needed as possible
• designing the layout of a computer chip to reduce manufacturing
time (therefore reducing cost)
• Managing the flow of raw materials and products in a supply chain
based on uncertain demand for the finished products
• Efficient messaging and customer response tactics
• Robotizing or automating human-driven operations processes
• Globalizing operations processes in order to take advantage of
cheaper materials, labor, land or other productivity inputs
• Managing freight transportation and delivery systems (Examples:
LTLhttp://en.wikipedia.org/wiki/Less-Than-Truckload_%28LTL
%29_Shipping Shipping, intermodal freight transport)
• Scheduling:
o Personnel staffing
o Manufacturing steps
o Project tasks
o Network data traffic: these are known as queuing models or
queueing systems.
o sports events and their television coverage
• Blending of raw materials in oil refineries
• Determining optimal prices, in many retail and B2B settings, within
the disciplines of pricing science
Operations research is also used extensively in government where
evidence-based policy is used.

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MB0032 – OPERATIONS RESEARCH

Q.2:- What do you understand by Linear Programming Problem?

What are the requirements of L.P.P.? What are the basic
assumptions of L.P.P.?
Ans:-

Linear programming problem (LPP): The standard form of the linear

programming problem is used to develop the procedure for solving a
general programming problem.
A general LPP is of the form
Max (or min) Z = c1x1 + c2x2 + … +cnxn
x1, x2, ....xn are called decision variable.
subject to the constraints

c1, c2,…. Cn, a11, a12,…. amn are all known constants
Z is called the "objective function" of the LPP of n variables which is to be
maximized or
minimized.

Requirements of L.P.P : There are mainly four steps in the

mathematical formulation of linear programming problem as a
mathematical model. We will discuss formulation of those problems which
involve only two variables.

• Identify the decision variables and assign symbols x and y to them.

These decision variables are those quantities whose values we wish
to determine.
• Identify the set of constraints and express them as linear
equations/inequations in terms of the decision variables. These
constraints are the given conditions.
• Identify the objective function and express it as a linear function of
decision variables. It might take the form of maximizing profit or
production or minimizing cost.
• Add the non-negativity restrictions on the decision variables, as in
the physical problems, negative values of decision variables have no
valid interpretation.

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There are many real life situations where an LPP may be formulated.
The following examples will help to explain the mathematical formulation
of an LPP.

Example-1. A diet is to contain at least 4000 units of carbohydrates,

500 units of fat and 300 units of protein. Two foods A and B are available.
Food A costs 2 dollars per unit and food B costs 4 dollars per unit. A unit of
food A contains 10 units of carbohydrates, 20 units of fat and 15 units of
protein. A unit of food B contains 25 units of carbohydrates, 10 units of fat
and 20 units of protein. Formulate the problem as an LPP so as to find the
minimum cost for a diet that consists of a mixture of these two foods and
also meets the minimum requirements.

Suggested answer:
The above information can be represented as

Let the diet contain x units of A and y units of B.

 Total cost = 2x + 4y
The LPP formulated for the given diet problem is
Minimize Z = 2x + 4y
subject to the constraints

Basic Assumptions of L.P.P: 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.

• Factors such as uncertainty, weather conditions etc. are not taken

into consideration. There may not be an integer as the solution, e.g.,
the number of men required may be a fraction and the nearest

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integer may not be the optimal solution. i.e., Linear programming

technique may give practical valued answer which is not desirable.

• Only one single objective is dealt with while in real life situations,
problems come with multi-objectives.

• Parameters are assumed to be constants but in reality they may not

be so.

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Q.3:- Describe the different steps needed to solve a problem by

simplex method?

Ans:- Simplex method The simplex method is a method for solving

problems in linear programming. This method, invented by George
Dantzig in 1947, tests adjacent vertices of the feasible set (which is a
polytope) in sequence so that at each new vertex the objective function
improves or is unchanged. The simplex method is very efficient in
practice, generally taking 2m to 3m iterations at most (where m is the
number of equality constraints), and converging in expected polynomial
time for certain distributions of random inputs (Nocedal and Wright 1999,
Forsgren 2002). However, its worst-case complexity is exponential, as can
be demonstrated with carefully constructed examples (Klee and Minty
1972).

A different type of methods for linear programming problems is

interior point methods, whose complexity is polynomial for both average
and worst case. These methods construct a sequence of strictly feasible
points (i.e., lying in the interior of the polytope but never on its boundary)
that converges to the solution. Research on interior point methods was
spurred by a paper from Karmarkar (1984). In practice, one of the best
interior-point methods is the predictor-corrector method of Mehrotra
(1992), which is competitive with the simple method, particularly for
large-scale problems.

Dantzig's simplex method should not be confused with the downhill

simplex method (Spendley 1962, Nelder and Mead 1965, Press et al.
1992). The latter method solves an unconstrained minimization problem
in n dimensions by maintaining at each iteration n+1 points that define a
simplex. At each operation, this simplex is updated by applying certain
transformations to it so that it "rolls downhill" until it finds a minimum.

The Simplex Method is "a systematic procedure for generating and

testing candidate vertex solutions to a linear program." (Gill, Murray, and
Wright, p. 337) It begins at an arbitrary corner of the solution set. At each
iteration, the Simplex Method selects the variable that will produce the
largest change towards the minimum (or maximum) solution. That
variable replaces one of its compatriots that is most severely restricting it,
thus moving the Simplex Method to a different corner of the solution set
and closer to the final solution. In addition, the Simplex Method can
determine if no solution actually exists. Note that the algorithm is greedy
since it selects the best choice at each iteration without needing
information from previous or future iterations.

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The Simplex Method solves a linear program of the form described

in Figure 3. Here, the coefficients represent the respective weights, or

costs, of the variables . The minimized statement is similarly called the

cost of the solution. The coefficients of the system of equations are
represented by , and any constant values in the system of equations
are combined on the right-hand side of the inequality in the variables .
Combined, these statements represent a linear program, to which we
seek a solution of minimum cost.
Figure 3

A Linear Program
Solving this linear program involves solutions of the set of
equations. If no solution to the set of equations is yet known, slack
variables , adding no cost to the solution, are introduced.
The initial basic feasible solution (BFS) will be the solution of the linear
program where the following holds:

Once a solution to the linear program has been found, successive

improvements are made to the solution. In particular, one of the nonbasic
variables (with a value of zero) is chosen to be increased so that the value

of the cost function, , decreases. That variable is then increased,

maintaining the equality of all the equations while keeping the other
nonbasic variables at zero, until one of the basic (nonzero) variables is
reduced to zero and thus removed from the basis. At this point, a new
solution has been determined at a different corner of the solution set.

The process is then repeated with a new variable becoming basic as

another becomes nonbasic. Eventually, one of three things will happen.
First, a solution may occur where no nonbasic variable will decrease the
cost, in which case the current solution is the optimal solution. Second, a
non-basic variable might increase to infinity without causing a basic-
variable to become zero, resulting in an unbounded solution. Finally, no
solution may actually exist and the Simplex Method must abort. As is

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common for research in linear programming, the possibility that the

Simplex Method might return to a previously visited corner will not be
considered here.

The primary data structure used by the Simplex Method is

"sometimes called a dictionary, since the values of the basic variables
may be computed (‘looked up’) by choosing values for the nonbasic
variables." (Gill, Murray, and Wright, p. 337) Dictionaries contain a
representation of the set of equations appropriately adjusted to the
current basis. The use of dictionaries provide an intuitive understanding of
why each variable enters and leaves the basis. The drawback to
dictionaries, however, is the necessary step of updating them which can
be time-consuming. Computer implementation is possible, but a version of
the Simplex Method has evolved with a more efficient matrix-oriented
approach to the same problem. This new implementation became known
as the Revised Simplex Method.

The steps of the Simplex Method also need to be expressed in the

matrix format of the Revised Simplex Method. The basis matrix, B,
consists of the column entries of A corresponding to the coefficients of the
variables currently in the basis. That is if is the fourth entry of the basis,

then is the fourth column of B. (Note that B is therefore

an matrix.) The non-basic columns of A constitute a similar though
likely not square, matrix referred to here as V.
Simplex Method Revised Simplex Method

Determine the current

basis, d.

Choose to enter the basis

based on the greatest cost
contribution.

If cannot decrease the If , d is optimal

cost, d is optimal solution. solution.

Determine that first exits

the basis (becomes zero)

as increases.

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If can decrease without If for all i, the solution

causing another variable to is unbounded.
leave the basis, the
solution is unbounded.

Update dictionary. Update .

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Examples:

Use the two phase method to

Maximize z = 3x1 – x2
Subject to 2x1 + x2 ≥ 2
x1 + 3x2 ≤ 2
x2 ≤ 4,
x1, x2 ≥ 0

Rewriting in the standard form,

Maximize z = 3x1 – x2 + 0S1 – MA1 + 0.S2 + 0.S3
Subject to 2x1 + x2 – S1 + A1 = 2
x1 + 3x2 + S2 = 2
x2 + S3 = 4,
x1, x2, S1, S2, S3, A1 ≥ 0.

Phase I : Consider the new objective,

Maximize Z* = – A1
Subject to 2x1 + x2 – S1 + A1 = 2
x1 + 3x2 + S2 = 2
x2 + S3 = 4,
x1, x2, S1, S2, S3, A1 ≥ 0.

Solving by Simplex method, the initial simplex table is given by

x1 x2 S1 A1 S2 S3
2 0 0 –1 0
0 Ratio
A1 – 2* 1 –1 1 0 0 2 2/2=1
1
S2 0 1 3 0 0 1 0 2 2/1=2
S3 0 0 1 0 0 0 1 4
–2 –1 1 0 0 0 –2

Work column * pivot element

x1 enters the basic set replacing A1.

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The first iteration gives the following table:

x1 x2 x1 A1 S2 S3
0 0 0 –1 0 0
X1 0 1 1/2 – 1/2 ½ 0 0 1
S2 0 0 5/2 1/2 –½ 1 0 1
S3 0 0 1 0 0 0 1 4
0 0 0 1 0 0 0

Phase I is complete, since there are no negative elements in the last row.
The Optimal solution of the new objective is Z* = 0.
Phase II: Consider the original objective function,
Maximize z = 3x1 – x2 + 0S1 + 0S2 + 0S3
Subject to x1 + x2/2 – S1/2=1
5/2 x2 + S1/2 + S2=1
x2 + S3 = 4
x1, x2, S1, S2, S3 ≥ 0
with the initial solution x1 = 1, S2 = 1, S3 = 4, the corresponding simplex
table is

x1 x2 S1 S2 S3
3 –1 0 0 0 Ratio
X1 3 1 1/2 – 1/2 0 0 1
S2 0 0 5/2 1/2* 1 0 1 1/1/2=
2
S3 0 0 1 0 0 1 4
0 5/2 – 3/2 0 0 3

Work column * pivot element

Proceeding to the next iteration, we get the following table:

x1 x2 S1 S2 S3
3 –1 0 0 0
X1 0 1 3 0 1 0 2
S1 0 0 5 1 2 0 2
S3 0 0 1 0 0 1 4
0 10 0 3 0 6

Since all elements of the last row are non negative, the current
solution is optimal.

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The maximum value of the objective function Z = 6 which is attained for

x1 = 2, x2 = 0.
Q.4:- Describe the economic importance of the Duality concept?

Ans:- The Importance of Duality Concept Is Due To Two Main

Reasons

i. If the primal contains a large number of constraints and a smaller

number of variables, the labour of computation can be
considerably reduced by converting it into the dual problem and
then solving it.
ii. The interpretation of the dual variable from the loss or economic
point of view proves extremely useful in making future decisions
in the activities being programmed.

Economic importance of duality concept The linear programming

problem can be thought of as a resource allocation model in which the
objective is to maximize revenue or profit subject to limited resources.
Looking at the problem from this point of view, the associated dual
problem offers interesting economic interpretations of the L.P resource
allocation model. We consider here a representation of the general primal
and dual problems in which the primal takes the role of a resource
allocation model.

Primal

Maximize
n

z= ∑C
j =1
j .x j

n
Subject to ∑a
j =1
ij x j ≤b j , i = 1,2,…., m

xj ≥ 0, j = 1,2,…., n

Dual

Minimize
m
w= ∑b . y
i =1
i i

m
Subject to ∑a
i =1
ij yi ≤ ci , i = 1,2,…., n

yj ≥ 0, i = 1,2,…., m

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From the above resource allocation model, the primal problem has n
economic activities and m resources. The coefficient cj in the primal
represents the profit per unit of activity j. Resource i, whose maximum
availability is bi, is consumed at the rate aij units per unit of activity j.

Interpretation of Duel Variables –

For any pair of feasible primal and dual solutions,

(Objective value in the maximization problem) ≤ (Objective value in

the minimization problem)

At the optimum, the relationship holds as a strict equation. Note:

Here the sense of optimization is very important. Hence clearly for any
two primal and dual feasible solutions, the values of the objective
functions, when finite, must satisfy the following inequality.

n m

z = ∑C j x j ≤ ∑bi yi = w
j =1 i =1

The strict equality, z = w, holds when both the primal and dual
solutions are optimal.

Consider the optimal condition z = w first given that the primal

problem represents a resource allocation model, we can think of z as
representing profit in Rupees. Because bi represents the number of units
available of resource i, the equation z = w can be expressed as profit (Rs)
= ∑ (units of resource i) x (profit per unit of resource i)

This means that the dual variables yi, represent the worth per unit
of resource i [variables yi are also called as dual prices, shadow prices and
simplex multipliers].

With the same logic, the inequality z < w associated with any two
feasible primal and dual solutions is interpreted as (profit) < (worth of
resources)

This relationship implies that as long as the total return from all the
activities is less than the worth of the resources, the corresponding primal
and dual solutions are not optimal. Optimality is reached only when the
resources have been exploited completely, which can happen only when
the input equals the output (profit). Economically the system is said to

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remain unstable (non optimal) when the input (worth of the resources)
exceeds the output (return). Stability occurs only when the two quantities
are equal.

Q.5:- How can you use the Matrix Minimum method to find the
initial basic feasible solution in the transportation problem?

Ans:- The Initial basic Feasible solution using Matrix Minimum

Method

Let us consider a T.P involving m-origins and n-destinations. Since

the sum of origin capacities equals the sum of destination requirements, a
feasible solution always exists. Any feasible solution satisfying m + n – 1
of the m + n constraints is a redundant one and hence can be deleted.
This also means that a feasible solution to a T.P can have at the most only
m + n – 1 strictly positive component, otherwise the solution will
degenerate.

It is always possible to assign an initial feasible solution to a T.P. in

such a manner that the rim requirements are satisfied. This can be
achieved either by inspection or by following some simple rules. We begin
by imagining that the transportation table is blank i.e. initially all xij = 0.
The simplest procedures for initial allocation discussed in the following
section.

Matrix Minimum Method

Step 1:Determine the smallest cost in the cost matrix of the

transportation table. Let it be cij , Allocate xij = min ( ai, bj) in the cell ( i,
j)

Step 2: If xij = ai cross off the ith row of the transportation table and
decrease bj by ai go to step 3.

if xij = bj cross off the i th column of the transportation table and decrease
ai by bj go to step 3.

if xij = ai= bj cross off either the ith row or the ith column but not both.

Step 3: Repeat steps 1 and 2 for the resulting reduced transportation

table until all the rim requirements are satisfied whenever the minimum
cost is not unique make an arbitrary choice among the minima.

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Q.6:- Describe the Integer Programming Problem. Describe the

Gomory’s All-I.P.P. method for solving the I.P.P. problem?

Ans:- Integer Programming Problem The Integer Programming

Problem I P P is a special case of L P P where all or some variables are
constrained to assume nonnegative integer values. This type of problem
has lot of applications in business and industry where quite often discrete
nature of the variables is involved in many decision making situations. Eg.
In manufacturing the production is frequently scheduled in terms of
batches, lots or runs; In distribution, a shipment must involve a discrete
number of trucks or aircrafts or freight cars
An integer programming problem can be described as follows:
Determine the value of unknowns x1, x2, … , xn

so as to optimize z = c1x1 +c2x2 + . . .+ cnxn

subject to the constraints

ai1 x1 + ai2 x2 + . . . + ain xn =bi , i = 1,2,…,m

and xj ³ 0 j = 1, 2, … ,n

where xj being an integral value for j = 1, 2, … , k ≤ n.

If all the variables are constrained to take only integral value i.e. k =
n, it is called an all(or pure) integer programming problem. In case only
some of the variables are restricted to take integral value and rest (n – k)
variables are free to take any non negative values, then the problem is
known as mixed integer programming problem.

Gomory’s All – IPP Method

An optimum solution to an I. P. P. is first obtained by using simplex

method ignoring the restriction of integral values. In the optimum solution
if all the variables have integer values, the current solution will be the
desired optimum integer solution. Otherwise the given IPP is modified by
inserting a new constraint called Gomory’s or secondary constraint which

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represents necessary condition for integrability and eliminates some non

integer solution without losing any integral solution. After adding the
secondary constraint, the problem is then solved by dual simplex method
to get an optimum integral solution. If all the values of the variables in this
solution are integers, an optimum inter-solution is obtained, otherwise
another new constrained is added to the modified L P P and the procedure
is repeated. An optimum integer solution will be reached eventually after
introducing enough new constraints to eliminate all the superior non
integer solutions. The construction of additional constraints, called
secondary or Gomory’s constraints, is so very important that it needs
special attention.

The iterative procedure for the solution of an all integer programming

problem is as follows:

Step 1: Convert the minimization I.P.P. into that of maximization, if it

is in the minimization form. The integrality condition should be ignored.

Step 2: Introduce the slack or surplus variables, wherever necessary

to convert the inequations into equations and obtain the optimum solution
of the given L.P.P. by using simplex algorithm.

Step 3: Test the integrality of the optimum solution

a) If the optimum solution contains all integer values, an optimum

basic feasible integer solution has been obtained.
b) If the optimum solution does not include all integer values then
proceed onto next step.

Step 4: Examine the constraint equations corresponding to the

current optimum solution. Let these equations be represented by

n1

∑y
j =0
ij x j = bi ( i 0 , 1, 2 , ........, m1 )

Where n’ denotes the number of variables and m’ the number of

equations.
Choose the largest fraction of bis ie to find {bi}i

Let it be [bk 1]
or write is as f ko

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Step 5: Express each of the negative fractions if any, in the k th row of

the optimum simplex table as the sum of a negative integer and a
nonnegative fraction.

Step 6: Find the Gomorian constraint

n1

∑f
j =0
kj x j ≥ f ko

and add the equation

n1
Gsla ( 1 )= − f ko + ∑ f kj x j
j =0

to the current set of equation constraints.

Step 7: Starting with this new set of equation constraints, find the new
optimum solution by dual simplex algorithm. (So that Gsla (1) is the initial
leaving basic variable).

Step 8: If this new optimum solution for the modified L.P.P. is an

integer solution. It is also feasible and optimum for the given I.P.P.
otherwise return to step 4 and repeat the process until an optimum
feasible integer solution is obtained.

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SET 2
OPERATIONS RESEARCH

Q.1:- What are the important features of Operations Research?

Describe in details the different phases of Operations Research?

Ans:- Important features of OR are: It is System oriented: OR studies

the problem from over all point of view of organizations or situations
since optimum result of one part of the system may not be optimum for
some other part.

(i) It imbibes Inter – disciplinary team approach. Since no

single individual can have a thorough knowledge of all fast
developing scientific knowhow, personalities from different
scientific and managerial cadre form a team to solve the
problem.
(ii) It makes use of Scientific methods to solve problems.
(iii) OR increases the effectiveness of a management Decision
making ability.
(iv) It makes use of computer to solve large and complex
problems.
(v) It gives Quantitative solution.
(vi) It considers the human factors also.

Phases of Operations Research The scientific method in OR study

generally involves the following three phases:

(i) Judgment Phase: This phase consists of:-

(a) Determination of the operation.

(b) Establishment of the objectives and values related to
the operation.
(c) Determination of the suitable measures of
effectiveness and
(d) Formulation of the problems relative to the
objectives.
(ii) Research Phase: This phase utilizes
(a) Operations and data collection for a better
understanding of the problems.
(b) Formulation of hypothesis and model.
(c) Observation and experimentation to test the
hypothesis on the basis of additional data.
(d) Analysis of the available information and verification of

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the hypothesis using pre established measure of

effectiveness.
(e) Prediction of various results and consideration of
alternative methods.

(iii) Action Phase: It consists of making recommendations for

the decision process by those who first posed the problem for
consideration or by anyone in a position to make a decision,
influencing the operation in which the problem is occurred.

Q.2:- Describe a Linear Programming Problem in details in

canonical form?
Ans:- Linear Programming The Linear Programming Problem (LPP) is a
class of mathematical programming in which the functions representing
the objectives and the constraints are linear. Here, by optimization, we
mean either to maximize or minimize the objective functions. The
general linear programming model is usually defined as follows:

Maximize or Minimize
Z = c1 x1 + c2 x 2 +................+cn x n

subject to the constraints,

a11 x1 + a12 x2 + ................+ a1n xn ~ b1

a21 x1 + a22 x2 + .................+ a2n xn ~ b2
...................................................
...................................................
am 1x1 + am2 x2 + ................ +amn xn ~ bm
and x1 > 0, x2 > 0, xn > 0.

Where cj, bi and aij (i = 1, 2, 3, m, j = 1, 2, 3........ n) are constants

determined from the technology of the problem and xj (j = 1, 2, 3 n) are
the decision variables. Here ~ is either < (less than), > (greater than) or
= (equal). Note that, in terms of the above formulation the coefficient cj,
aij, bj are interpreted physically as follows. If bi is the available amount
of resources i, where aij is the amount of resource i, that must be
allocated to each unit of activity j, the “worth” per unit of activity is equal
to cj.

Canonical forms :
The general Linear Programming Problem (LPP) defined above
can always be put in the following form which is called as the
canonical form:

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Maximise Z = c1 x1+c2 x2 + .......+cn xn

Subject to
a11 x1 + a12 x2 +................. a1n xn < b1
a21 x1 + a22 x2 + ................. +a2n xn < b2
.....................................................................
am1x1+am2 x2 + ...... + amn xn < bm
x1, x2, x3, ... xn > 0.

The characteristics of this form are:

1) all decision variables are nonnegative.

2) all constraints are of < type.
3) the objective function is of the maximization type.

Any LPP can be put in the cannonical form by the use of five elementary
transformations:

1. The minimization of a function is mathematically

equivalent to the maximization of the negative expression of
this function. That is, Minimize Z = c 1 x1 + c 2x2 + ....... + c n xn
is equivalent to

Maximize – Z = – c 1x1 – c 2x2 – ... – cnxn.

2. Any inequality in one direction (< or >) may be changed to an inequality

in the opposite direction (> or <) by multiplying both sides of the
inequality by –1.

For example 2x 1+ 3x 2 > 5 is equivalent to –2x 1–3x 2 < –5.

3. An equation can be replaced by two inequalities in opposite direction.

For example, 2x1+3x2 = 5 can be written as 2x1+3x 2 < 5 and 2x 1+3x2
> 5 or 2x1+3x2 < 5 and – 2x1 – 3x2 < – 5.

4. An inequality constraint with its left hand side in the absolute form can
be changed into two regular inequalities. For example: | 2x1+3x2 | < 5
is equivalent to 2x1+3x2 < 5 and 2x1+3x2 > – 5 or – 2x1 – 3x2 < 5.

5. The variable which is unconstrained in sign (i.e., > 0, < 0 or zero) is

equivalent to the difference between 2 nonnegative variables. For
example, if x is unconstrained in sign then x

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= (x + – x – ) where x + > 0, x – < 0.

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Q.3:- What are the different steps needed to solve a system of

equations by the simplex method?

Ans:- To Solve problem by Simplex Method

1. Introduce stack variables (Si’s) for “ < ” type of constraint.

2. Introduce surplus variables (Si’s) and Artificial Variables (Ai)
for “>” type of constraint.
3. Introduce only Artificial variable for “=” type of constraint.
4. Cost (Cj) of slack and surplus variables will be zero and that of
artificial variable will be “M” Find Zj Cj for each variable.
5. Slack and Artificial variables will form Basic variable for the
first simplex table. Surplus variable will never become Basic
Variable for the first simplex table.
6. Zj = sum of [cost of variable x its coefficients in the
constraints – Profit or cost coefficient of the variable].
7. Select the most negative value of Zj - Cj. That column is
called key column. The variable corresponding to the column will
become Basic variable for the next table.
8. Divide the quantities by the corresponding values of the key
column to get ratios select the minimum ratio. This becomes the
key row. The Basic variable corresponding to this row will be
replaced by the variable found in step 6.
9. The element that lies both on key column and key row is
called Pivotal element.
10. Ratios with negative and “a” value are not considered for
determining key row.
11. Once an artificial variable is removed as basic variable, its
column will be deleted from next iteration.
12. For maximisation problems decision variables coefficient will
be same as in the objective function. For minimization problems
decision variables coefficients will have opposite signs as compared
to objective function.
13. Values of artificial variables will always is – M for both
maximisation and minimization problems.
14.The process is continued till all Zj – Cj > 0.

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Q.4:- What do you understand by the transportation problem?

What is the basic assumption behind the transportation problem?
Describe the MODI method of solving transportation problem?

Ans:- This model studies the minimization of the cost of transporting a

commodity from a number of sources to several destinations. The supply
at each source and the demand at each destination are known. The
transportation problem involves m sources, each of which has
available ai (i = 1, 2, .....,m) units of homogeneous product and n
destinations, each of which requires bj (j = 1, 2...., n) units of products.
Here ai and bj are positive integers. The cost cij of transporting one unit
of the product from the i th source to the j th destination is given for
each i and j. The objective is to develop an integral transportation
schedule that meets all demands from the inventory at a minimum total
transportation cost. It is assumed that the total supply and the total
demand are equal.

The condition (1) is guaranteed by creating either a fictitious

destination with a demand equal to the surplus if total demand is less
than the total supply or a (dummy) source with a supply equal to the
shortage if total demand exceeds total supply. The cost of transportation
from the fictitious destination to all sources and from all destinations to
the fictitious sources are assumed to be zero so that total cost of
transportation will remain the same.

The Transportation Algorithm (MODI Method)

The first approximation to (2) is always integral and therefore

always a feasible solution. Rather than determining a first
approximation by a direct application of the simplex method it is more
efficient to work with the table given below called the transportation
table. The transportation algorithm is the simplex method specialized to
the format of table it involves:

(i) Finding an integral basic feasible solution

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

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The solution to T.P is obtained in two stages. In the first stage we

find Basic feasible solution by any one of the following methods a)
Northwest corner rale b) Matrix Minima Method or least cost method c)
Vogel’s approximation method. In the second stage we test the B.Fs
for its optimality either by MODI method or by stepping stone method.
Modified Distribution Method / Modi Method / U – V Method .
Step 1 : Under this method we construct penalties for rows and
columns by subtracting the least value of row / column from the next
least value.
Step 2 : We select the highest penalty constructed for both row and
column. Enter that row / column and select the minimum cost and
allocate min (ai, bj)
Step 3 : Delete the row or column or both if the rim availability /
requirements is met. Step 4 : We repeat steps 1 to 2 to till all
allocations are over.
Step 5 : For allocation all form equation ui + vj = cj set one of the
dual variable ui / vj to zero and solve for others.
Step 6 : Use these value to find Δij = cij – ui – vj of all Δij >, then it is
the optimal solution.
Step 7 : If any Dij £ 0, select the most negative cell and form loop.
Starting point of the loop is +ve and alternatively the other corners of
the loop are –ve and +ve. Examine the quantities allocated at –ve
places. Select the minimum. Add it at +ve places and subtract from –ve
place. Step 8 : Form new table and repeat steps 5 to 7 till Δij > 0

Q.5:- Describe the North-West Corner rule for finding the initial
basic feasible solution in the transportation problem?

Ans:- North West Corner Rule

Step1: The first assignment is made in the cell occupying the upper left
hand (north west) corner of the transportation table. The maximum
feasible amount is allocated there, that is x11 = min (a1,b1)

So that either the capacity of origin O1 is used up or the

requirement at destination D1 is satisfied or both. This value of x11 is
entered in the upper left hand corner (small square) of cell (1, 1) in the
transportation table

Step 2: If b1 > a1 the capacity of origin O, is exhausted but the

requirement at destination D1 is still not satisfied , so that at least one
more other variable in the first column will have to take on a positive

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value. Move down vertically to the second row and make the second
allocation of magnitude

x21 = min (a2, b1 – x21) in the cell (2,1). This either exhausts the
capacity of origin O2 or satisfies the remaining demand at destination
D1.

If a1 > b1 the requirement at destination D1 is satisfied but the

capacity of origin O1 is not completely exhausted. Move to the right
horizontally to the second column and make the second allocation of
magnitude x12 = min

(a1 – x11, b2) in the cell (1, 2) . This either exhausts the remaining
capacity of origin O1 or satisfies the demand at destination D2 .

If b1 = a1, the origin capacity of O1 is completely exhausted as well as

the requirement at destination is completely satisfied. There is a tie for
second allocation, An arbitrary tie breaking choice is made. Make the
second allocation of magnitude x12 = min (a1 – a1, b2) = 0 in the cell
(1, 2) or x21 = min (a2, b1 – b2) = 0 in the cell (2, 1).

Step 3: Start from the new north west corner of the transportation table
satisfying destination requirements and exhausting the origin capacities
one at a time, move down towards the lower right corner of the
transportation table until all the rim requirements are satisfied.

Q.6:- Describe the Branch and Bound Technique to solve an I.P.P.

problem?

Ans:- The Branch And Bound Technique Sometimes a few or all

the variables of an IPP are constrained by their upper or lower bounds or
by both. The most general technique for the solution of such constrained
optimization problems is the branch and bound technique. The
technique is applicable to both all IPP as well as mixed I.P.P. the
technique for a maximization problem is discussed below:

Let the I.P.P. be

Subject to the constraints

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xj is integer valued , j = 1, 2, ........, r (< n) –––– (3)

xj > 0............................... j = r + 1, . , n __________ (4)

Further let us suppose that for each integer valued xj, we can assign
lower and upper bounds for the optimum values of the variable by

Lj ≤ xj ≤ Uj j = 1, 2, .... r ____________ (5)

The following idea is behind “the branch and bound technique”
Consider any variable xj, and let I be some integer value satisfying Lj £
I £ Uj – 1. Then clearly an optimum solution to (1) through (5) shall also
satisfy either the linear constraint.

x j > I + 1 ___________________________ ( 6)

Or the linear constraint xj ≤ I ................... ..(7)

To explain how this partitioning helps, let us assume that there

were no integer restrictions (3), and suppose that this then yields an
optimal solution to L.P.P. – (1), (2), (4) and (5). Indicating x1 = 1.66 (for
example). Then we formulate and solve two L.P.P’s each containing (1),
(2) and (4).

But (5) for j = 1 is modified to be 2 ≤ x1 ≤ U1 in one problem

and L1 ≤ x1 ≤ 1 in the other. Further each of these problems process
an optimal solution satisfying integer constraints (3)

Then the solution having the larger value for z is clearly optimum for
the given I.P.P. However, it usually happens that one (or both) of these
problems has no optimal solution satisfying (3), and thus some more
computations are necessary. We now discuss step wise the
algorithm that specifies how to apply the partitioning (6) and (7) in a
systematic manner to finally arrive at an optimum solution.

We start with an initial lower bound for z, say z (0) at the first
iteration which is less than or equal to the optimal value z*, this lower
bound may be taken as the starting Lj for some xj.

In addition to the lower bound z (0) , we also have a list of L.P.P’s

(to be called master list) differing only in the bounds (5). To start with

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(the 0 th iteration) the master list contains a single L.P.P. consisting of

(1), (2), (4) and (5). We now discuss below, the step by step procedure
that specifies how the partitioning (6) and (7) can be applied
systematically to eventually get an optimum integer valued solution.

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