IA 0048

Question no.1:
A. OERATIONS RESEARCH METHODOLOGY:
The main characteristic feature of operations research is that it employs mathematical
representations or models to analyze problems. This approach represents an adaptation of the
scientific methodology used by physical sciences. This scientific method translates a given
problem into a mathematical representation which is solved and retransformed into original
context.
The methodology consists of five steps:








1. Defining the problem: by defining this problem statement will indicate 3 major aspects
viz.
a. Description of the goal or the objective of the study.
b. Identification of the decision alternative to the system.
c. Recognition of the limitations, restrictions and the requirements of the system.
2. Construction: while selecting a model based on the definition of the problem, one needs
to ensure that the model specifies quantitative expressions for the objective and the
constraints of the problems in terms of decision variables.
Problem definition
Model construction
Model solution
Model validation
Result implementation
3. Solution: after selecting an apt model one needs to develop a solution for the model
and interpret the solution in the context of the given problem. A solution to a model
implies determination of a specific set of decision variables that would yield an optimum
solution which maximizes or minimizes the performance of any measure in a model.
4. Validation: one must then validate or test the validity of the model by comparing its
performance with some past data available from the actual system.
5. Implementation: one needs to apply the optimal solution obtained from the model to
the system and note the improvement in the performance of the system. The
interaction between operations research team and operating personnel reaches its peak
in this phase.

B. TEHNIQUES AND TOOLS OF OPERATIONS RESEARCH:
1. Linear programming: it can be used for finding a solution to optimize a given objective,
which may be to maximize profit of to minimize cost. The objective functions and
constraints must be expressed as linear expressions of decision variables.
2. Inventory control methods: this model aims at optimizing inventory levels such as when
to buy, how much to buy and how much to keep in stock.
3. Goal programming: it has several objective functions, each giving a target value in which
programming models are developed to minimize deviations from these targets.
4. Queuing model: based on the concept of probability, it indicates the capability of a given
system and the changes possible in the system when it is modified. It is not an
optimization process. It can be used to estimate the required balance between
costumer waiting time and service capability of the system.
5. Transportation model: it is a type of linear programming. It studies the minimization of
cost of transportation of a commodity from a number of sources to various destinations.
The objective is to develop an integral transportation schedule that meets all the
demands of the inventory at a minimum total transportation cost.

6. There are other tools such as sequence model, assignment model and network analysis.
m=sources
a
i
(i= 1.2,m)=units of homogeneous product

n= destinations available
b
j
(j=1,2.,n)units of products required by each of n
destinations

Question no.2:
A. STEPS INVOLVED IN LPP:
Linear programming is a mathematical technique designed to help managers in their
planning and decision making. It is usually used in an organization that is trying to make the
most effective use of its resources which typically include machinery, manpower, money,
time, warehouse, space and raw materials.
















ADVANTAGES OF LPP:
1. Helps in making optimum utilization of productive resources.
2. Quality of decisions can be improved; the user becomes more objective and less
subjective.
3. It provides practically applicable solutions as there might be other constraints operating
outside the problem. The necessary modification of its mathematical solution is
required for the sake of convenience to the decision maker.
4. Highlighting of bottlenecks is the most important advantage in production process.
STEP
1
STEP
2
STUDY THE GIVEN SITUATION TO FIND KEY
DECISIONS TO BE MADE.
IDENTIFY THE VARIABLES AND DESIGNATE THEM
BY SYMBOLS x
j (j=1,2.)

STEP
3
STATE THE FEASABLE ALTERNATIVES WHICH
GENERALY ARE: x
j
0, FOR ALL j

STEP
4
IDENTIFY THE CONSTRAINTS IN THE PROBLEM AND EXPRESS
THEM AS LINEAR INEQUALITIES OR EQUATIONS. LHS OF WHICH
ARE LINEAR FUNCTIONS OF THE DECISION VARIABLES.
STEP
5
IDENTIFY THE OBJECTIVE FUNCTION AND EXPRESS
IT AS LINEAR FUNCTION OF THE DECISION



VARIABLES.
Question no.3:
A basic solution to an m-origin, n-destination transportation problem can have at the most
m+n-1 positive basic variables (non-zero), otherwise the basic solution degenerates. It follows
that whatever the number of basic cells is less than m+n-1, the transportation problem is a
degenerate one. The degeneracy can develop in two ways:
Case 1: it develops while determining an initial assessment via any one of the initial
assessment methods. To resolve degeneracy one must augment the positive variables by as
many zero-valued variables as is necessary to complete the basic m+n-1 variable. These zero
valued variables are selected in such a manner that the resulting m+n-1 constitute a basic
solution. The selected variables are designated by allocating an extremely small value to
each one of them. The s are kept in transportation table until temporary degeneracy is
removed or until optimum solution is attained, whichever comes first, at which point, =0.
Case 2: it develops at the iteration rate. This happens when the selection of the entering
variable results in the simultaneous to zero of two or more current (pre-iteration) basic
variables. To resolve degeneracy, the positive variables are augmented by as many zero-valued
variables as is necessary to complete m+n-1 basic variables. These zero valued variables are
selected from among those current basic variables, which are simultaneously driven to zero.









Question no.4:
Steps of Hungarian method algorithm:
1. Prepare ruled matrix by selecting the minimum values for each row and subtract it from
the other elements of the row.
2. Prepare column reduced matrix by subtracting minimum value of the column from
other values of that column.
3. Assign zero row wise if there is only one zero in the row and cross (X) or cancel other
zeroes in that column.
4. Assign if there is only one zero in that column and cross other zeroes in that row.
5. Repeat steps 3 and 4 till all zeroes are either assigned or crossed. If the number of
assignments is equal to number of rows present, you have arrived at an optimal
solution, if not proceed to step 6.
6. Mark ( ) the unassigned rows. Look for crossed in that row. Mark the column
containing the crossed zero. Look for assigned zero in that column. Mark the row
containing assigned zero. Repeat this process till all the markings are done.
7. Draw a straight line through unmarked rows and marked column. The number of
straight line drawn will be equal to the number of assignments made.
8. Examine the uncovered elements. Select the minimum.
Subtract it from the uncovered elements
Add it at the point of intersection of lines
Leave the rest as is.
Prepare a new table.
9. Repeat steps 3 to 7 till optimum assignment is obtained.
10. Repeat steps 5 to 7 till number of allocations = number of rows.





Difference between transportation and assignment problem:
Transportation problem Assignment problem
1. The objective is to develop a integral
transportation schedule that meets all
demands from the inventory at a
minimum total transportation cost.
1. Assignment problem is a special case of
transportation problem where the
objective is to minimize cost or time for
completing a no:of jobs by a no:of
persons and to maximize revenue and
sales efficiency.
2. The transportation involves m sources
each of which has available a
i
homogenous products and n
destinations, each of which requires
units of products.
2. When the problem involves allocation
of n different facilities to n different
tasks, it is often called as an assignment
problem.
3. A necessary and sufficient condition for
the existence of a feasible solution is

3. Assignment problem takes the
following mathematical form

x
ij
c
ij












Question no.5:
Simulation is a numerical method for conducting experiments that involve certain types of
mathematical and logical relationships necessary to describe the behavior and structure of a
complex real world system over an extended period of time. Simulation is a process of defining
a model of a real system and conducting experiments with this model with the purpose of
understanding the behavior (within the limits imposed by a criterion or a set of criterions) for
the operation of a system.
Simulation procedure:
Step 1: identify and clearly define the problem
Step 2: List the statement of objectives of the problem
Step 3: Formulate the variables that influence the situation and an exact or probabilistic
description of their possible values or states.
Step 4: Obtain a consistent set of values (or states) for the variables, random sampling
techniques may be used.
Step 5: use the sample obtained in step 4 to calculate the value of the decision criteria,
by actually following the relationships among the variables for each of the alternative
decisions.
Step 6: repeat steps 4 and 5 until a sufficient number of samples are available.
Step 7: tabulate the various values of decision criterion and choose the best policy.








Question no.6:
a. Integer Programming Model:
Integer programming problem (IPP) is a special case of LPP where all or some variables
are constrained to assume non negative integer value. The Integer solution to a problem
can, however, is obtained by rounding of the optimum value of the variables to the
nearest integer value. This approach can be easy in terms of economy of effort time and
cost that might be required to derive an integer solution but the solution may not satisfy
all the given constraints. Secondly the value of objective function so obtained may not
be an optimal value. Integer programming techniques come to our rescue during such
scenarios.
Integer LP problems are those in which some or all of the variables are restricted to
integer values. An Integer LP problem has important applications
Capital budgeting
Construction scheduling
Plan location and size
Rooting and shipping schedule
Batch size
Capacity expansion
Fixed charge.

b. PERT and CPM:
PERT CPM
1. PERT was developed in connection
with a research and development
work.
1. CPM was developed in connection
with a construction project, which
consisted of routine task whose
resource, requirements and duration
were known with certainty.
2. It is an event oriented network as in
the analysis of the network emphasis
is on given on the important stages of
completion of a task rather than the
activities required to be performed to
reach a particular event or task.
2. CPM is suitable for establishing a
trade-off for optimum balancing
between schedule time and cost of
the product.
3. PERT is normally used for projects
involving activities of known repetitive
nature in which time estimates are
uncertain.
3. CPM is used for projects involving
activities of repetitive nature.

c. Operating Characteristics of a Queuing System:
A queuing model has the following operating characteristics which enables us to
understand and efficiently manage a queue.
1. Queue length: the number of costumers in the waiting line reflects one of the two
conditions (a) short queues- could mean either good customer service or too much
capacity, similarly (b) long queues -could indicate either low server efficiency or the
need to increase capacity.
2. Number of costumers in system: number of costumers in queue and also those being
served in the queue related to the service efficiency and capacity.
3. Waiting time in queue: long lines do not reflect long waiting times if the service rate
is fast.
4. Waiting time in system: the total elapsed time from entry into the system until exit
from the system may indicate problems with costumers, server efficiency or capacity.
5. Service facility utilization: the collective utilization of the service facilities reflects the
percentage of time the facilities are busy.