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ASSIGNMENT SET – 1
Ans : - The application of Operations research methods helps in making decisions in such
complicated situations. Evidently the main objective of Operations research is to provide a scientific
basis to the decision-makers for solving the problems involving the interaction of various
components of organization, by employing a team of scientists from different disciplines, all
working together for finding a solution which is the best in the interest of the organization as a
whole. The solution thus obtained is known as optimal decision.
Ans : - One of the most important problems in management decision is to allocate limited and
scarce resource among competing agencies in the best possible manner. Resources may represent
man, money, machine, time, technology on space. The task of the management is to derive the best
possible output (or set of outputs) under given restraints on resources. The output may be
measured in the form of profits, costs, social welfare, effectiveness, etc. In many situations the
output (or the set of outputs) can be expressed as a linear relationship among a number of
variables. The amount of available resources can also be expressed as a linear relationship among
some system variables. The management problem may be to optimize (maximize or minimize) the
out-put or the objective function subject to the set of constraints An optimization problem in which
both the objective function and the constraints are represented by linear forms is a problem in
linear programming.
Requirements of L.P.P.
a. Decisions variables and their relationship
b. Well defined objective function
c. Existence of alternative courses of action
d. Non-negative conditions on decision variables.
Ans:- The different steps needed to solve a problem by simplex method are: