Subjective Input

Manager Decision

Quantitative
Input
Three reasons for the birth
of OR :
1. Size of units increased
phenomenally.
2. Mobility of managers
3. Advent of high speed computation.
Some examples of the use of
OR
1. Scheduling of trains.
2. Planning of inventories.
3. Planning of maintenance schedules.
4. Optimization of track utilization subject to
constraints.
5. Reservations.
6. Queuing for tickets.
How linear
programming may
have developed
The 1,000 gear problem.
How to solve it ?
Simplify to a two gear
problem.
Suppose we want to manufacture two
types of gears:
The Small gear (S) & the Large gear (L).
Profits on S & L are Rs. 100 & Rs. 300
respectively.
Total number of gears cannot exceed
200.Number of L minus number of S
must not exceed 100
 The mathematical
formulation :
Max. 100X1 + 300X2
X1 + X2 <= 200
-X1 + X2 <= 100
X1 , X2 >= 0
(Divide all figures by 100 & use)
 Graphical solution :
E (0,2)

C (½,1½)
X2

B (0,1) Max X1 + 3X2

D (2,0)

F (-1,0) A (0,0)
X1
 Procedure without graph.
X1 + X 2 = 2
-X1 + X2 = 1
X1 = 0
X2 = 0
4C2 = 6 sets of equations.
6 Points : A, B, C, D, E, F
4 Points are feasible : A, B, C, D
Optimal point = C = (½,1½) & Z = 5
Generalization of procedure
– the algorithm n variables, m constraints
problem
 Convert all inequalities into equalities.
 Solve for n+mCn sets of equations.
(for n = 5,000 & m = 3,000 – very large)
 Check which solutions satisfy the
constraints & inequalities.
 Check which solution out of those is
optimal.
Very long procedure.
Equivalent formulation :
X1 + X 2 + X 3 = 2
-X1 + X2 + X4 = 1
X1, X2 , X3 , X4 >= 0

Use objective function from step 1.

Take any feasible solution – A(0,0)
Objective function is maximize X1 + 3X2
Obviously increase X2 – but by how much ?
X3 = 2 - X2
X4 = 1 - X2
Maximum increase possible in X2 is : X2 = 1
Point reached B (0,1)
X1 = 0, X2 = 1, X3 = 1, X4 = 0
Z has increased from 0 to 3.
What should we do next ?
Write Z in terms of X1 & X4
Z = X1 + 3X2 = X1 + 3 [1 + X1 - X4 ]
= 3 + 4X1 - 3X4
Increase X1, keeping X4 = 0
First convert the system of equations in the following
form :
2X1 + X3 - X4 = 1
-X1 + X2 + X4 = 1
X3 = 1 - 2X1
X2 = 1 + X 1
Maximum increase possible in X1 is X1 = ½
Point reached C (½,1½)
X1 = ½, X2 = 1½, X3 = X4 = 0
Z has increased from 3 to 5, Z = 5 - 2X3 - X4
Optimum solution has been reached :
1st Step:
X1 X2 X3 X4 -Z b
____________________________________________________________

1 1 1 0 0 2
-1 1 0 1 0 1
________________________________________
1 3 0 0 1 0
2nd Step:
X1 X2 X3 X4 -Z b
____________________________________________________________

2 0 1 -1 0 1
-1 1 0 1 0 1
_______________________________________
4 0 0 -3 1 -3
3rd Step:
X1 X2 X3 X4 -Z b
____________________________________________________________

1 0 ½ -½ 0 ½
0 1 ½ ½ 0 1½
_______________________________________
0 0 -2 -1 1 -5