Or&Sc Lab Manual 26sept

IPS Academy, Institute of Engineering & Science
Contents
1. Vision Mission of the Institute

2. Vision Mission of the Department
3. PEOs
4. POs
5. COs
6. Content beyond Syllabus.
7. Laboratory Regulations and Safety Rules
8. Index
9. Experiments
7h Semester Operation Research & Supply Chain (ME 7003) Session 2019-20
Vision of the Institute

To be the fountainhead of novel ideas & innovations in science & technology & persist to be a
foundation of pride for all Indians.
Mission of the Institute
M1: To provide value based broad Engineering, Technology and Science where education in
students are urged to develop their professional skills.
M2: To inculcate dedication, hard work, sincerity, integrity and ethics in building up overall
professional personality of our student and faculty.
M3: To inculcate a spirit of entrepreneurship and innovation in passing out students.
M4: To instigate sponsored research and provide consultancy services in technical, educational
and industrial areas.
Vision of the Department

To be a nationally recognized, excellent in education, training, research and innovation that
attracts, rewards, and retains outstanding faculty, students, and staff to build a Just and Peaceful
Society.
Mission of the Department
M1: Imparting quality education to the students and maintaining vital, state-of-art research
facilities for faculty, staff and students.
M2: Create, interpret, apply and disseminate knowledge for learning to be an entrepreneur and to
compete successfully in today’s competitive market.
M3: To inculcate Ethical, Social values and Environment awareness.
Program Education Objectives (PEOs)
PEO1: To enrich graduates with fundamental knowledge of Physics, Chemistry and advanced
mathematics for their solid foundation in Basic Engineering science.
PEO2: To provide graduates to design the solution of engineering problems relevant to
mechanical engineering design through the process of formulating, executing & evaluating a
design solution as per need with socio-economic impact consideration and related constraints.
PEO3: To provide graduates with experience in learning and applying tools to solve theoretical
and open ended mechanical engineering problems.
PEO4: To provide a contemporary grounding in professional responsibility including ethics,
global economy, emerging technologies and job related skills such as written and oral
communication skills and to work in multidisciplinary team.
PEO5: Prepare graduates to be interested, motivated, and capable of pursuing continued life-
long learning through beyond curriculum education, short term courses and other training
programme in interdisciplinary areas.
Program Outcomes (POs)
Engineering Graduates will be able to:
PO1: Engineering knowledge: Apply the knowledge of mathematics, science, engineering

fundamentals, and an engineering specialization to the solution of Mechanical
engineering problems.
PO2: Problem analysis: Identify, formulate, and analyze mechanical engineering problems to
arrive at substantiated conclusions using the principles of mathematics, and engineering
sciences.
PO3: Design/development of solutions: Design solutions for mechanical engineering problems

and design system components, processes to meet the specifications with consideration
for the public health and safety, and the cultural, societal, and environmental
considerations.
PO4: Conduct investigations of complex problems: An ability to design and conduct

experiments, as well as to analyze and interpret data.
PO5: Modern tool usage: Create, select, and apply appropriate techniques, resources, and
modern engineering and IT tools including prediction and modeling to mechanical
engineering problems with an understanding of the limitations.
PO6: The engineer and society: Apply critical reasoning by the contextual knowledge to assess
societal, health, safety, legal and cultural issues and the consequent responsibilities
relevant to the Mechanical engineering practice.
PO7: Environment and sustainability: Understand the impact of the Mechanical engineering
solutions in societal and environmental contexts, and demonstrate the knowledge of, and
need for sustainable development.
PO8: Ethics: An understanding of professional and ethical responsibility.
PO9: Individual and teamwork: Function effectively as an individual, and as a member or

leader in teams, and in multidisciplinary settings.
PO10: Communication: Ability to communicate effectively. Be able to comprehend and write
effective reports documentation.
PO11: Project management and finance: Demonstrate knowledge and understanding of

engineering and management principles and apply this to Mechanical engineering
problem.
PO12: Life-long learning: ability to engage in life-long learning in the broadest context of
technological change.
Program Specific Outcomes (PSOs)
PSO1: Engage professionally in industries or as an entrepreneur by applying manufacturing and

management practices.
PSO2: Ability to implement the learned principles of mechanical engineering to analyze,

evaluate and create advanced mechanical system or processes.
Course Outcomes (COs)
To Explain the mathematical formulation of linear systems and distribution

CO1
models.
CO2 To Define the concept of supply chain.
To Describe the various types of inventory models and inventory control

CO3
techniques.
CO4 To explain waiting line models and process of making competitive strategy.
CO5 To discuss the various methods of decision making.
Laboratory Regulations and Safety Rules
1. Read the instructions mentioned in the manual carefully and then proceed for the
experiment.
2. Operate the instruments with care.
3. If a computer or its peripheral fails during use, or isn't operating properly, report the issue
to a technician right away. Never try to repair on your own.
4. Put your bags outside the lab before entering in the lab.
5. Switch off the lights, fans and all the equipments/ computers used, before leaving lab.
6. Before using computer scan QR code & fill the details.
Index
S.
Experiment Date Grade Signature
No.
(A) To find the initial basic feasible solution
of transportation model by using different
1 methods.
(B) To obtain an optimal solution of given
case study by using MODI methods.
To obtain an optimal solution of given case
2 study by using MODI methods.
To obtain an optimal solution of given case
3 study by using Assignment methods.
To obtain an optimal solution of given LPP
4 problem by using Graphical methods.
To obtain an optimal solution of given LPP
5 problem by using Simplex methods.
To study the operation research software -
6
TORA.
To study the operation research software -
7
LINDO.
8 To study the operation research software -

Excel.
Study of Supply Chain Management with
9 few Case Studies.
To solve the inventory problem using EOQ
10 models.
To solve the problem using Queuing theory
11 and game theory.
Experiment No.1
Aim: (A) To find the initial basic feasible solution of transportation model by using different
methods.
(B) To obtain an optimal solution of given case study by using MODI methods.
The transportation problem is one of the sub-classes of linear programming problems in which
the objective is to transport various quantities of a single homogeneous commodity, that are
initially stored at various origins to different destinations in such a way that the total
transportation cost is the minimum.
The data of the model include
1. The level of supply at each source and the amount of demand at each destination.
2. 2. The unit transportation cost of the commodity from each source to each destination.
Since there is only one commodity, a destination can receive its demand from more than one
source. The objective is to determine how much should be shipped from each source to each
destination so as to minimize the total transportation cost.
This figure represents a transportation model with m sources and n destinations. Each source or
destination is represented by a node. The route between a source and destination is represented by an arc
joining the two nodes. The amount of supply available at source i 1 is ai , and the demand required at
destination j is bj . The cost of transporting one unit between sources i and destination j is cij.
Let xij denote the quantity transported from source i to destination j. The cost associated with this
movement is cost × quantity = cijxij. The cost of transporting the commodity from source i to all
destinations is given by
Thus, the total cost of transporting the commodity from all the sources to all the destinations is
In order to minimize the transportation costs, the following problem must be solved:
The first constraint says that the sum of all shipments from a source cannot exceed the available supply.
The second constraint specifies that the sum of all shipments to a destination must be at least as large as
the demand.
The above implies that the total supply is greater than or equal to the total demand. When the total supply
is equal to the total demand then the transportation model is said to be balanced. In a balanced
transportation model, each of the constraints is an equation:
A transportation model in which the total supply and total demand are unequal is called unbalanced. It is
always possible to balance an unbalanced transportation problem.
Feasible Solution: A set of non-negative values xij, i = 1,2,3,… m and j = 1,2,3,… m that
satisfies the constraints is called a feasible solution to the transportation problem.
Basic Feasible Solution: A feasible solution that contains not more than (m+n-1) non-negative
allocations is called a basic feasible solution to the transportation problem.
Optimal Solution: A feasible solution (not necessarily basic) is said to be optimal if it

minimizes the total transportation cost.
Non-degeneracyBasic Feasible Solution: It is a basic feasible solution to a (m*n) transportation

problem that contains exactly (m+n-1) allocations in the independent positions. If it contains less
than (m+n-1) non-negative allocations, it is a condition of degeneracy. Once degeneracy occurs
we fail to get optimum solution.
TADAH Tractors
Agriculture is a critical component of India’s economy, contributing over 17% to the country’s
GDP. Over 58% of households depend on agriculture for their livelihood (IBEF, 2016). To
sustain this industry and to continue supporting its compounded annual growth (CAGR) of 3.3%
(IBEF, 2016), it is important for farmers to invest in heavy equipment that can make farming and
harvesting more efficient.
TADAH Tractors, a local Indian company, aims to support India’s roadmap for agricultural
growth by distributing low-cost tractors to various parts of India. However, it is faced with one
main challenge: India’s different cities are connected by poorly maintained roads, making it
difficult to transport tractors from one place to another. Establishing the right distribution centers
for tractors is therefore an important goal for TADAH, so that it can serve the demands of its
customers, regardless of distance.
Rajesh is a supply chain manager at TADAH Tractors. TADAH has 3 main manufacturing
plants: one located in Mumbai, with a capacity to manufacture 4800 tractors each month; one
located in Chennai, with a capacity to manufacture 3500 tractors each month; and one located in
Kochi, with a capacity to manufacture 2200 tractors each month.
A large TADAH distributor has placed an order for two of their distribution centers, located in
Kalaburagi and Bengaluru. Rajesh gathers some information and determines that the
transportation cost between each plant and distribution center is as follows:
Manufacturing Plant Distribution Center Shiping Cost (Rupees/Tractor)
Kalaburagi 16500
Mumbai
Bengaluru 10600
Kalaburagi 12200
Chennai
Bengaluru 12600
Kalaburagi 10300
Kochi
Bengaluru 9240
Additionally, the distribution center demand for each city is as follows:
Distribution Center Demand (Tractors this Month)
Kalaburagi 4800
Bengaluru 5700
First find the initial basic feasible solution of the problem and then, Help Rajesh to optimize
TADAH's transportation costs: knowing that Rajesh can only ship whole tractors, solve this
transportation problem optimally, Find the optimal cost for TADAH.
In this optimal solution, how many tractors will TADAH ship from Mumbai to Kalaburagi?
Assume now that each tractor brings in a profit of 21343 rupees before transportation costs. How
much profit does the company make on all tractors sold after paying for all transportation costs?
Experiment No. 2
Aim: To obtain an optimal solution of given case study by using MODI
methods.
Case Study
A study of Transportation Problem for an Essential Item of Southern Part of
North Eastern Region of India as an OR Model
Introduction:
Mizoram, a part of southern region of North East India, not being well connected from the other
parts of the nation as well as the North East region, depends on the market of the adjacent district
Silchar of Assam for its essential goods like rice, flour, salt etc. Different suppliers of Silchar
regularly supply rice to the different markets of Mizoram. As such the related data has been
collected from the concerned suppliers for the purpose of the mathematical formulation.
Tables and Figures:

Table 1 shows the distance of different destinations in Mizoram from Silchar district.
Use the following code for the destination Kolashib, Serchip, Aizwal, Saiha. X* for Kolashib,
Y* for Serchip, Z* for Aizwal and U* for Saiha.
Transportation cost per quintal of rice effective from 2007 from different suppliers to the
different destinations (as mentioned above) is displayed in the table 2.
X* Y* Z* U*
A* 60 120 75 180
B* 58 100 60 165
C* 62 110 65 170
D* 65 115 80 175
E* 70 135 85 195
i) A*, B*, C*, D*, E* are the code names of the suppliers. ii) The transportation cost of
different suppliers to the same destination varies to some extent due to their own
policies.
The next table 3 shows the quantity available with these suppliers for a particular year.
The next table 4 shows the total demand of the destination X*, Y*, Z*, U* from these suppliers
during the year
Find the optimum solution.
Experiment No. 3
Ai m: To obtain an optimal solution of given case study by using Assignment
methods.
Assignment problem is one of the special cases of transportation problems. The goal of the
assignment problem is to minimize the cost or time of completing a number of jobs by a number
of persons. An important characteristic of the assignment problem is the number of sources is
equal to the number of destinations .It is explained in the following way.
1. Only one job is assigned to person.
2. Each person is assigned with exactly one job.
Management has faced with problems whose structures are identical with assignment problems.
Ex: A manager has five persons for five separate jobs and the cost of assigning each job to each
person is given. His goal is to assign one and only job to each person in such a way that the total
cost of assignment is minimized.
Balanced assignment problem: This is an assignment where the number of persons is equal to
the number of jobs.
Unbalanced assignment problem: This is the case of assignment problem where the number of
persons is not equal to the number of jobs. A dummy variable, either for a person or job ( as it
required) is introduced with zero cost or time to make it a balanced one.
Dummy job/ person: Dummy job or person is an imaginary job or person with zero cost or time
introduced in the unbalanced assignment problem to make it balanced one .
An infeasible Assignment: Infeasible assignment occurs when a person is incapable of doing
certain job or a specific job cannot be performed on a particular machine. These restrictions
should be taken in to account when finding the solutions for the assignment problem to avoid
infeasible assignment.
Hungarian method: Assignment problems can be formulated with techniques of linear
programming and transportation problems. As it has a special structure, it is solved by the special
method called Hungarian method. This method of assignment problem was developed by a
Hungarian mathematician D. Konig and is therefore known as Hungarian method of assignment
problem.
To solve assignment problem using this method, one should know time of completion or cost of
making all the possible assignments. Each assignment problem has a table, persons one wishes to
Assign are represented in the rows and jobs or tasks to be assigned are expressed in the columns.
Cost for each particular assignment is in the numbers in the table. It is referred as cost matrix.
Hungarian method is based on the principle that if a constant is added to the elements of cost
matrix, the optimum solution of the assignment problem is the same as the original problem.
Original cost matrix is reduced to another cost matrix by adding a constant value to the elements
of rows and columns of cost matrix where the total completion time or total cost of an
assignment is zero. This assignment is also referred as the optimum solution since the optimum
solution remains unchanged after the reduction.
Case Study:
You work as a sales manager for a toy manufacturer, and you currently have three salespeople on
the road meeting buyers. Your salespeople are in Austin, TX; Boston, MA; and Chicago, IL. You
want them to fly to three other cities: Denver, CO; Edmonton, Alberta; and Fargo, ND. The table
below shows the cost of airplane tickets in dollars between these cities.
Where should you send each of your salespeople in order to minimize airfare?
Experiment No. 4
Ai m: To obtain an optimal solution of given LPP problem by using Graphical
methods.
Problem: A manufacturer of a line of patent medicines is preparing a production plane on

medicines A and B. There are sufficient ingredients available to make 20,000 bottles of A and
40, 000 bottles of B but there are only 45, 000 bottles into which either of the medicines can be
put. Furthermore, it takes 3 hours to prepare enough material to fill 100 bottles of A, it takes on
hours to prepare enough material to fill 1000 bottles of B and there are 66 hours available for this
operation. Te profit is Rs. 8 per bottle for A and Rs. 7 per bottle for B.
(i)Formulate this problem as a linear programming problem.
(ii) How should the manufacturer schedule the production in order to maximize his profit? Solve
by graphical method.
Experiment No. 5
Ai m: To obtain an optimal solution of given LPP problem by using Simplex
methods.
Problem: Food A contains 20 units of vitamin x and 40 units of vitamin y per gram. Food B
contains 30 units of each of vitamins x and y. The daily minimum human requirements of
vitamin x and y are 900 units and 1200 units respectively. How many grams of each type of food
should be consumed so as to minimize the cost, if food A costs 80 paisa per gram and food B 90
paisa per gram? Formulate the problem and solve by Simplex method.
Experiment No. 6
Ai m: To study the operation research software - TORA.
TORA: The Temporary-Ordered Routing Algorithm (TORA) – An Operations Research

Software TORA is an algorithm i.e. a mathematical set of instructions or programs
(mathematical-software). It is an optimization system in the area of operations research which is
very easy to use. Further, TORA is menu-driven and Windows-based which makes it very user
friendly. TOra is free and open source software for database management, and database
development. TORA started out as a dedicated tool for Oracle only (even the name TORA stands
for “Toolkit for Oracle”). Down the line, TORA expanded its universe to support most of the
popular database out there, including, Oracle, MySQL, and Postgres. Because of its rich feature
set, TOra can be used by developers and database administrators alike.
Features of TORA
The software has in-built tutorial for the novice and it also produces animated graphical linear
programming solution. The other features of the software include dynamic construction of
‘Critical Path Method’ charts and creation of search-trees to name some.
The software can be executed in automated or tutorial mode. The automated mode reports the
final solution of the problem, usually in the standard format followed in commercial packages,
while the tutorial mode keeps on giving step-wise information about the methodology and
solution.
TORA also offers self-paced learning of all the computational algorithms in a manner that allows
students to check their understanding of the material with immediate detailed feedback from the
software. It enables the instructors to demonstrate ideas that otherwise are literally impossible to
present.
Fig. 2: Modules & Tools used in TORA
The various Models in Operations Research which can be solved using the Temporary-Ordered
Routing Algorithm include Linear Programming Graphical, LPP: Transportation Models,
Integer Programming, Queuing Models, CPM/PERT, Game Theory, Matrix Inversion,
Simultaneous Linear Equations etc. The functionality tools in the ‘Temporary-Ordered Routing
Algorithm’ feature a schema browser, SQL worksheet, PL/SQL editor & debugger, storage
manager, rollback segment monitor, instance manager, and SQL output viewer.
Experiment No. 7
Ai m: To study the operation research software – LINDO.
LINDO:
With the LINDO API, you can easily create your own optimization applications. It allows you
to plug the power of the LINDO solvers right into customized applications and mathematical
programs that you have written.
Features of LINDO API:
Fast, Easy Application Development: - The LINDO API makes it easy for you to seamlessly
integrate optimization into your own application. The developer interface has been designed for
maximum ease-of-use and flexibility. It comes with clear, comprehensive documentation and
examples to help you get running quickly.
Powerful Solvers: - LINDO API provides you with an arsenal of powerful solvers
for Stochastic, Linear, Nonlinear (convex & no convex/Global), Quadratic, Quadratic ally
Constrained, Second Order Cone and Integer optimization. All solvers incorporate numerous
enhancements for maximum speed and robustness.
New Stochastic Programming Features:-LINDO Systems has begun shipping a new release of
LINDO API that includes new features to allow users to incorporate uncertainty into their
optimization models.
Comprehensive Set of Routines: - Whether your application is big or small, simple or complex,
the LINDO API provides the flexibility and functionality that you'll need. It includes dozens of
routines to formulate, solve, query, and modify your problems.
Convenient Interface to MATLAB :-The Windows 32 bit and 64 bit versions of LINDO API
can be run as a MATLAB callable function. Using MATLAB’s modelling and programming
environment, you can build and solve models and create custom algorithms based upon the
LINDO API's routines and solvers.
Extensive Documentation and Help :- LINDO API provides all of the tools you will need to
get up and running quickly. You get the LINDO API User Manual (in printed form and available
online in pdf format) that includes detailed function definitions for all routines. Also included in
the manual is a discussion to assist you in writing your own applications
Analyze Infeasible and Unbounded Models:-LINDO API includes tools that allow you to track
down what has caused a model to be infeasible or unbounded. The tools isolate a portion of the
original model as the source of the problem. This allows you to focus your attention on a
relatively small subsection of the model to look for formulation or data entry errors. On
infeasible linear, nonlinear, quadratic and integer models, the tools can find an irreducibly
inconsistent set of constraints (IIS), and on unbounded models, the tools can find an irreducibly
unbounded set of columns (IUS).
Create Web and Intranet Applications:-The LINDO API is threading safe to allow you to
create web and network applications that handle multiple user sessions concurrently. Web and
network applications require special licensing. Contact LINDO Systems for more information.
Model Size Flexibility: - Why pay for more capacity than you need? The LINDO API is
available in a variety of different capacities. The capacities range from a few hundred variables
to versions with unlimited capacity, so you can select the product that best suits your needs for a
particular problem.
The global solver in the LINDO Application Programming Interface (LINDO API) finds
guaranteed global optima to no convex, nonlinear and integer mathematical models using the
branch and bound/relax approach. We describe (a) the class of problems for which it tends to be
appropriate; (b) how to access it directly via the LINDO API or via various modelling language
front ends; (c) heuristics used for finding good initial solutions; (d) methods for constructing
easily solved relaxations; (e) branching rules for splitting a problem into more easily solved sub
problems; and (f) some illustrative computational results.
Experiment No. 8
Ai m: To study the operation research software - Excel.
Excel: - Microsoft Excel (full name Microsoft Office Excel) is a spreadsheet application written
and distributed by Microsoft for Microsoft Windows and Mac OS X. It features calculation,
graphing tools, pivot tables and a macro programming language called VBA Visual Basic for
Applications. It has been a very widely applied spreadsheet for these platforms, especially since
version 5 in 1993. Excel forms part of Microsoft Office
Linear programming (LP) is one of the most widely applied O.R. techniques and owes its
popularity principally to George Danzig's simplex method (Danzig 1963) and the revolution in
computing. It is a very powerful technique for solving allocation problems and has become a
standard tool for many businesses and organisations. Although Danzig's simplex method allows
solutions to be generated by hand, the iterative nature of producing solutions is so tedious that
had the computer never been invented then linear programming would have remained an
interesting academic idea, relegated to the mathematics classroom. Fortunately, computers were
invented and as they have become so powerful for so little cost, linear programming has become
possibly one of the most widespread uses for a personal PC.
There are of course numerous software packages which are dedicated to solving linear programs
(and other types of mathematical program), of which possibly LINDO, GAMS and XPRESS-MP
are the most popular. All these packages tend to be DOS based and are intended for a specialist
market which requires tools dedicated to solving LPs. In recent years, however, several standard
business packages, such as spreadsheets, have started to include an LP solving option, and
Microsoft Excel is no exception. The inclusion of an LP solving capability into applications such
as Excel is attractive for at least two reasons. Firstly, Excel is perhaps the most popular
spreadsheet used both in business and in universities and as such is very accessible. Second to
this, the spreadsheet offers very convenient data entry and editing features which allows the
student to gain a greater understanding of how to construct linear programs.
To use Excel to solve LP problems the Solver add-in must be included. Typically this feature is
not installed by default when Excel is first setup on your hard disk. To add this facility to your
Tools menu you need to carry out the following steps (once-only):
1. Select the menu option Tools | Add_Ins (this will take a few moments to load the
necessary file).
2. From the dialogue box presented check the box for Solver Add-In.
3. On clicking OK, you will then be able to access the Solver option from the new menu
option Tools | Solver (which appears below Tools | Scenarios ...)
To illustrate Excel Solver I will consider Hillier & Lieberman's reasonably well known example,
the Windsor Glass Co. problem (Hillier & Lieberman, 1995). The problem concerns a glass
manufacturer which uses three production plants to assemble its products, mainly glass doors
(x1) and wooden frame windows (x2). Each product requires different times in the three plants
and there are certain restrictions on available production time at each plant. With this
information and knowledge of contributions to profit of the two products the management of the
company wish to determine what quantities of each product they should be producing in order to
maximise profits. In other words, the Wyndor Glass Co. problem is a classic, albeit very simple,
product-mix problem.
The problem is formulated as the following linear program:
Max z = 3x1 + 2x2 (objective)
Subject to x1 <= 4 (Plant One)

2x2 <= 12 (Plant Two)
3x1 + 2x2 <= 18 (Plant Three)
X1, x2 >= 0 (Non-negativity requirements)
Where z = total profit per week

X1 = number of batches of doors produced per week
X2 = number of batches of windows produced per week.
Having formulated the problem, and yours may have substantially more decision variables and
constraints, you can then proceed to entering it into Excel. The best approach to entering the
problem into Excel is first to list in a column the names of the objective function, decision
variables and constraints. You can then enter some arbitrary starting values in the cells for the
decision variables, usually zero, shown in Figure One. Excel will vary the values of the cells as it
determines the optimal solutions. Having assigned the decision variables with some arbitrary
starting values you can then use these cell references explicitly in writing the formulae for the
objective function and constraints, remembering to start each formula with an '=' .
Figure One: Setting up the problem in Excel
Entering the formulae for the objective and constraints, the objective function in B5 will be given
by:
=3*B9+2*B10
The constraints will be given by (putting the right hand side {RHS} values in the adjacent cells):
Plant One (B14) =B9

Plant Two (B15) =2*B10
Plant Three (B16) =3*B9+2*B10
Non-neg 1 (B17) =B9
Non neg 2 (B19) =B10
You are now ready to use Solver.
On selecting the menu option Tools | Solver the dialogue box shown in Figure Two is revealed,
and if you select the objective cell before invoking Solver the correct Target Cell will be
identified. This is the value Solver will attempt either to maximise or minimise.
Figure Two: The Solver Dialogue Box
Select whether you wish to minimise this or maximise the problem, in this case you would want
to set the target cell (the objective) to a Max. Note that you can use Solver to find the outcome
that will achieve a specified value for the target cell by clicking 'Value of:’ In doing this you can
use Solver as a glorified goal seeker.Next you enter the range of cells you want Solver to vary,
the decision variables. Click on the white box and select cells B9 & B10, or alternatively type
them in. Note that you can try to get Solver to guess which cells you want to vary by clicking the
'Guess' button. If you have defined your problem in a logical way Solver should usually get this
right.
You can now enter the constraints by first clicking the ‘Add ...' button. This reveals the dialogue
box shown in Figure Three.
Figure Three: Entering Constraints
The cell reference is to the cell containing your constraint formula, so for the Plant One
constraint you enter B14. By default <= is selected but you can change this by clicking on the
drop down arrow to reveal a list of other constraint types. In the right hand white box you enter
the cell reference to the cell containing the RHS value, which for the Plant One constraint is cell
C14. You then click 'Add' to add the rest of the constraints, remembering to include the non-
negativity constraints.
Having added all the constraints, click 'OK' and the Solver dialogue box should look like that
shown in Figure Four.
Figure Four: The Completed Solver Dialogue Box
Before clicking 'Solve' it is good practice when doing LPs to go into the Options and check the
'Assume Linear Model' box, unless, of course, your model isn't linear (Solver can handle most
mathematical program types, including non-linear and integer problems). Doing this can speed
up the length of time taken for Solver to find a solution to the problem and in fact, it will also
ensure the correct result and quite importantly, provide the relevant sensitivity report. Having
selected this option you are now ready to Click 'Solve' and see Solver find the optimal values for
doors and windows. On doing this, at the bottom of the screen Excel will inform you of Solver's
progress, then on finding an optimal solution the dialogue box shown in Figure Five will appear.
You will also observe that Solver has altered all the values in your spreadsheet, replacing them
with the optimal results.
You can use the Solver Results dialogue box to generate three reports. To select all three at once,
either hold down CTRL and click each one in turn or drag the mouse over all three.
Figure Five: Solver Results
At the same time it's often a good idea to get Solver to restore your original values in the
spreadsheet so that you can return to the original problem formulation and make adjustments to
the model such as altering the availability of resources. The three reports are generated in new
sheets in the current workbook of Excel.
The Answer Report gives details of the solutions (in this case, profit is maximised at 36 when 2
doors per week are produced and 6 windows per week - not a particularly busy firm!) and
information concerning the status of each constraint with accompanying slack/surplus values is
provided. The Sensitivity Report for the Wyndor problem, which provides information about
how sensitive your solution is to changes in the constraints, is shown in Figure Six.
Figure Six: Sensitivity Report for Wyndor
As you can see from Figure Six, the report is fairly standard, providing information on shadow
values, reduced cost and the upper and lower limits for the decision variables and constraints.
The Limits Report also provides sensitivity information on the RHS values. All the reports can
simply be copied and pasted into Word and this is perhaps one of the big advantages of using
Excel over a DOS based LP solver. Although the reports paste into Word as tables, they are
easily converted into text and can then be manipulated if one is producing a written report on
your finding.
Finally, there are several options to Solver that can allow you to amend/intervene in the solution
generating process. The 'Options' button in the Solver dialogue box reveals the dialogue box
shown in Figure Seven. You can use this to affect how accurate your solution is, how much
'effort' Solver puts into to finding the solution and whether you want to see the results of each
iteration.
Figure Seven: Solver Options
The Tolerance option is only required for integer programs (IP), and allows Solver to use 'near
integer' values, within the tolerance you specify, and this helps speed up the IP calculations.
Checking the Show Iteration Results box allows you to see each step of the calculation, but be
warned, if your model is complex this can take an inordinate length of time. Use Automatic
Scaling is useful if there is a huge difference in magnitude between your decision variables and
the objective value.
The bottom three options, Estimates, Derivatives and Search affect the way Solver approaches
finding a basic feasible solution, how Solver finds partial differentials of the objective and
constraints, and how Solver decides which way to search for the next iteration. Essentially the
options affect how solver uses memory and the number of calculations it makes. For most LP
problems, they are best left as the default values.
The 'Save Model' button is very useful, particularly if you save your model as a named scenario.
Clicking this button allows you to assign a name to the current values of your variable cells. This
option then allows you to perform further 'what-if' analysis on a variety of possible alternative
outcomes - very useful for exploring your model in greater detail.
In conclusion, Excel Solver provides a simple, yet effective, medium for allowing users to
explore linear programs. It can be used for large problems containing hundreds of variables and
constraints, and does these relatively quickly, but as a teaching tool using small illustrative
problems it is very potent, particularly as the student must appreciate the structure of a LP when
entering it into the spreadsheet.
On the downside, you can't view the Tableau as it is generated at each iteration and so those
teachers who would want their students to be proficient in the manual methods of LP would find
Solver less superior to, say, Linda, which does allow this. It does, however, produce a superior
set of results and sensitivity reports when compared to Linda, and, due to the spreadsheet nature,
does allow the student very quickly to observe the effects of any changes made to constraints or
the objective function.
This is particularly noticeable as the model formulation is easily accessible at the same time as
the model results, these being simply placed in adjacent worksheets, accessible with a simple
mouse click. Overall, using Excel, which is familiar to a large number of students, provides a
rich environment for teaching linear programming and it allows students to explore their models
in a structured, yet flexible, way.
Experiment No. 9
Ai m: Study of Supply Chain Management with few Case Studies.

Cases Study - 1
Supply Chain Success: Mumbai Dabbawalas
The dabbawalas of Mumbai are a unique case in supply chain management. Neatly stacked
dabbas (Tiffin’s or lunch boxes) are a common sight at most of the railway stations, late every
morning in Mumbai, India. A man who is illiterate delivers hot lunch at the doorstep of the
subscriber. It is an error-free system and there are virtually no mismatches. The Mumbai Tiffin
Box Suppliers Association is a 38 year old organization with 4500 members and a huge, loyal
customer base. Their customer-base includes office goers, students, shopkeeper, etc. Instead of
carrying their own lunch at an early hour in morning, they prefer to subscribe to this dabbawalas
pick up the freshly packed lunch from the subscribers house and delivers it to his/her office at
lunchtime. Once lunch is over, the empty dabba is again collected by the dabbawalas. This is
done with the help of Mumbai’s extremely efficient railway system called the Mumbai local.
There are special trains known as dabbawalas special. The dabbas change many hands and are
loaded and off- loaded in many trains before their final delivery.
There is a scientific method of putting an identification mark on each dabba. Each dabba lid is
marked with a particular code. The code format is “DBOF” where D denotes the dabbawalas
number (assigned by the association), BO is a combination indicating the building/office and F is
the floor number of that building where the Tiffin box has to be delivered. The lid is also marked
with a number denoting the railway station where the box has to be picked up. Can u imagine
what the fee is for all of this? The service charges vary between Rs. 150 to Rs. 300 per month
depending on the customer’s location and the distance covered.
This service was started by a Parsi banker when he employed a carrier to fetch his lunch every
afternoon. The idea caught on this inspired many unemployed people to become dabba carriers.
Cases Study - 2
Logistics Management: McDonalds Supply Chain in India
The lure of 300 million consumers, coupled with a wide range of economic reforms, brought
McDonald corporation of USA to India in the mid 1990’s Companies like McDonald’s, whose
operations are centered on supply chain efficiency, are rapidly expanding their outlets in India.
Apart from speedy expansion, the company is also focusing on delivering high quality food to its
customers. It is putting all it efforts into managing the supply chain and ensuring that the
products reach the outlets in the best condition. The various ingredients that the company
requires for its fast food items come from different local sources. For example, iceberg lettuce
comes from Talegaon near Pune, nanital an Ooty; cheese from Dynamix Diary Industries in
Baramati, Maharashtra; buns from Phillaur in Punjab and Khopoli near Mumbai; and chicken,
vegetables patties, pies and pizza puffs from Taloja near Mumbai. Since all the 60 outlets are
situated in the north and western parts of India, the company is sourcing its raw materials from
these regions to ensure maximum efficiency.
Although the company started searching for supplier’s way back in 1991, it took around six years
before it was able to setup its first outlet in India. During this period, the company spent around
Rs. 500million to set up a proper supply chain. Before actually deciding to enter the fast food
business in India, McDonald’s did a lot of ground work. For instance, it studied the local tastes,
analyzed the government regulations on food and health, and conducted soil and climate tests, to
ensure the feasibility of the fast food business in India.
It was a tough job for the company to identify local suppliers who would match international
standards, by delivering quality raw materials in good condition regularly and on schedule. It
produced refrigerated trucks to transport vegetables and meat. These trucks maintain
temperatures between one and four degrees centigrade and are fitted with tracking devices that
monitor the temperatures at all times. Further, the quality of the material is checked at various
points. These trucks transport the products to distribution centers from where they are delivered
to the outlets. In addition to the refrigerated trucks, the distribution centers from where they are
delivered to the outlets. In addition to the refrigerated trucks, the distribution centers are
equipped with non-refrigerated trucks to transport paper cups, napkins, and plastic cutlery and as
McDonald’s grow in India, its suppliers face new supply chain management challenges.
Question: Draw the supply chain block diagram for the given case studies.
Experiment No. 10
Ai m: To solve the inventory problem using EOQ models.

Problem1: Midwest Precision Control Corporation is trying to decide between two alternate
Order Plans for its inventory of a certain item. Irrespective of the plan to be followed, demand
for the item is expected to be 1,000 units annually. Under Plan 1st, Midwest would use a teletype
for ordering; order costs would be Rs. 40 per order. Inventory holding costs (carrying cost)
would be Rs. 100 per unit per annum. Under Plan 2ndorder costs would be Rs. 30 per order. And
holding costs would 20% and unit Cost is Rs. 480. Find out EOQ and Total Inventory Cost than
decide which Plan would result in the lowest total inventory cost?
Problem2: A local TV repairs shop uses 36,000 units of a part each year (A maximum
consumption of 100 units per working day). It costs Rs. 20 to place and receive an order. The
shop orders in lots of 400 units. It cost Rs. 4 to carry one unit per year of inventory.
Requirements:
(1) Calculate total annual ordering cost
(2) Calculate total annual carrying cost
(3) Calculate total annual inventory cost
(4) Calculate the Economic Order Quantity
(5) Calculate the total annual cost inventory cost using EOQ inventory Policy
(6) How much save using EOQ
(7) Compute ordering point assuming the lead time is 3 days
Experiment No. 11
Ai m: To solve the problem using Queuing theory and game theory.

Problem 1: A system is being designed. The inter-arrival times of customers are expected to be
exponentially distributed with mean 1/λ = 50 msec. Three options are considered as illustrated in
Figure 1.
Figure: Three Options
(a) One single-server queue with infinite buffer space. The service times are exponentially
distributed with mean 1/µ = 20 msec.
(b) Two single-server queues, each with infinite buffer space. Customers are randomly
dispatched to each queue with an equal probability. The service times are exponentially
distributed with mean 1/µ = 40 msec at each server.
(c) One two-server queue with infinite buffer space. The service times are exponentially
distributed with mean 1/µ = 40 msec at each server. Find the response time in each option using
queuing analysis.
Problem 2: Solve by graphical method.
B1 B2 B3
A1 1 3 12
A2 8 6 2

Or&amp;Sc Lab Manual 26sept

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IPS Academy, Institute of Engineering & Science

1. Vision Mission of the Institute

Vision of the Institute

Mission of the Institute

M3: To inculcate a spirit of entrepreneurship and innovation in passing out students.

Vision of the Department

Program Education Objectives (PEOs)

Program Outcomes (POs)

Engineering Graduates will be able to:

PO1: Engineering knowledge: Apply the knowledge of mathematics, science, engineering

PO3: Design/development of solutions: Design solutions for mechanical engineering problems

PO4: Conduct investigations of complex problems: An ability to design and conduct

PO8: Ethics: An understanding of professional and ethical responsibility.

PO9: Individual and teamwork: Function effectively as an individual, and as a member or

PO11: Project management and finance: Demonstrate knowledge and understanding of

Program Specific Outcomes (PSOs)

PSO1: Engage professionally in industries or as an entrepreneur by applying manufacturing and

PSO2: Ability to implement the learned principles of mechanical engineering to analyze,

Course Outcomes (COs)

To Explain the mathematical formulation of linear systems and distribution

CO2 To Define the concept of supply chain.

To Describe the various types of inventory models and inventory control

CO5 To discuss the various methods of decision making.

Laboratory Regulations and Safety Rules

8 To study the operation research software -

The data of the model include

Optimal Solution: A feasible solution (not necessarily basic) is said to be optimal if it

Non-degeneracyBasic Feasible Solution: It is a basic feasible solution to a (m*n) transportation

Manufacturing Plant Distribution Center Shiping Cost (Rupees/Tractor)

Additionally, the distribution center demand for each city is as follows:

Distribution Center Demand (Tractors this Month)

Tables and Figures:

Find the optimum solution.

Problem: A manufacturer of a line of patent medicines is preparing a production plane on

(i)Formulate this problem as a linear programming problem.

TORA: The Temporary-Ordered Routing Algorithm (TORA) – An Operations Research

Features of LINDO API:

Ai m: To study the operation research software - Excel.

The problem is formulated as the following linear program:

Max z = 3x1 + 2x2 (objective)

Subject to x1 <= 4 (Plant One)

X1, x2 >= 0 (Non-negativity requirements)

Where z = total profit per week

Figure One: Setting up the problem in Excel

Plant One (B14) =B9

You are now ready to use Solver.

Figure Two: The Solver Dialogue Box

Figure Three: Entering Constraints

Figure Four: The Completed Solver Dialogue Box

Figure Five: Solver Results

Figure Six: Sensitivity Report for Wyndor

Figure Seven: Solver Options

Ai m: Study of Supply Chain Management with few Case Studies.

Logistics Management: McDonalds Supply Chain in India

Ai m: To solve the inventory problem using EOQ models.

(1) Calculate total annual ordering cost

(2) Calculate total annual carrying cost

(3) Calculate total annual inventory cost

(4) Calculate the Economic Order Quantity

(6) How much save using EOQ

(7) Compute ordering point assuming the lead time is 3 days

Ai m: To solve the problem using Queuing theory and game theory.

Figure: Three Options

Problem 2: Solve by graphical method.

Or&Sc Lab Manual 26sept

Or&Sc Lab Manual 26sept