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SET – 1
SOLVED ASSIGNMENT
Q 1: Describe in details the different scopes of application of Operations Research?
Answer:
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.
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Answer:
The standard form of the linear programming problem is used to develop the procedure for
solving a general programming problem.
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c1, c2,…. Cn, a11, a12,…. amn are all known constants
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.
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
• 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 integer may not be the optimal solution.
i.e., Linear programming techqnique 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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Answer:
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 are 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 simplex method, particularly for large-scale problems.
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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 iteration, 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.
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
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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 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.
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If can decrease without causing If for all i, the solution is
another variable to leave the basis, unbounded.
the solution is unbounded.
Examples:
x1 x2 S1 A1 S2 S3
2 0 0 –1 0
0 Ratio
A1 – 1 2* 1 –1 1 0 0 2 2/2=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
x1 x2 x1 A1 S2 S3
0 0 0 –1 0 0
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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.
x2 + S3 = 4
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
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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Q 4: Describe the economics importance of the Duality concept.
Answer:
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.
Primal
Maximize
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
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.
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
remain unstable (non optimal) when the input (worth of the resources) exceeds the output
(return). Stability occurs only when the two quantities are equal.
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Q 5: How can you use the Matrix Minimum method of finding the initial basic feasible
solution in the transportation problem.
Answer:
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.
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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.
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 ith 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.
Answer:
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
and xj ³ 0 j = 1, 2, … ,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
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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.
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.
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 )
Let it be [bk 1]
or write is as f ko
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.
∑f
j =0
kj x j ≥ f ko
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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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