MB0032 – OPERATION RESEARCH

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.

Operations research is distinguished by its frequent use to examine an entire

management information system, rather than concentrating only on specific elements
(though this is often done as well). An operations researcher faced with a new problem
is expected to determine which techniques are most appropriate given the nature of
the system, the goals for improvement, and constraints on time and computing power.
For this and other reasons, the human element of OR is vital. Like any other tools, OR
techniques cannot solve problems by themselves.

Scope of operation Research

Examples of applications in which operations research is currently used include:

• Critical path analysis or project planning: identifying those processes in a
complex project which affect the overall duration of the project
• Designing the layout of a factory for efficient flow of materials
• constructing a telecommunications network at low cost while still guaranteeing
QoS (quality of service) or QoS (Quality of Experience) if particular connections
become very busy or get damaged
• Road traffic management and 'one way' street allocations i.e. allocation
problems.
• Determining the routes of school buses (or city buses) so that as few buses are
needed as possible
• designing the layout of a computer chip to reduce manufacturing time
(therefore reducing cost)
• Managing the flow of raw materials and products in a supply chain based on
uncertain demand for the finished products
• Efficient messaging and customer response tactics
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 • Robotizing or automating human-driven operations processes
• Globalizing operations processes in order to take advantage of cheaper
materials, labor, land or other productivity inputs
• Managing freight transportation and delivery systems (Examples: LTL Shipping,
intermodal freight transport)
• Scheduling:
○ Personnel staffing
○ Manufacturing steps
○ Project tasks
○ Network data traffic: these are known as queuing models or queueing
systems.
○ sports events and their television coverage
• blending of raw materials in oil refineries
• determining optimal prices, in many retail and B2B settings, within the
disciplines of pricing science
Operations research is also used extensively in government where evidence-based
policy is used.

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Q 2: What do you understand by Linear Programming Problem? What are the

requirement of L.P.P? What are the basic assumption of L.P.P?

Answer:

Linear programming problem (LPP):

The standard form of the linear programming problem is used to develop the
procedure for solving a general programming problem.
A general LPP is of the form
Max (or min) Z = c1x1 + c2x2 + … +cnxn
x1, x2, ....xn are called decision variable.
subject to the constraints

c1, c2,…. Cn, a11, a12,…. amn are all known constants
Z is called the "objective function" of the LPP of n variables which is to be maximized
or
minimized.

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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

Let the diet contain x units of A and y units of B.

 Total cost = 2x + 4y
The LPP formulated for the given diet problem is
Minimize Z = 2x + 4y
subject to the constraints

Basic Assumptions of L.P.P:

Linear programming is applicable only to problems where the constraints and objective
function are linear i.e., where they can be expressed as equations which represent
straight lines. In real life situations, when constraints or objective functions are not
linear, this technique cannot be used.

• 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.

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 • 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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Q 3: Describe the different steps needed to solve a problem by Simplex

method.

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.

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 .
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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 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.

Simplex Method Revised Simplex Method

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Determine the current basis, d.

Choose to enter the basis

based on the greatest cost
contribution.

If cannot decrease the cost, d If , d is optimal solution.

is optimal solution.

Determine that first exits the

basis (becomes zero) as

increases.

If can decrease without If for all i, the solution is

causing another variable to unbounded.
leave the basis, the solution is
unbounded.

Update dictionary.
Update .

Examples:

Use the two phase method to

Maximize z = 3x1 – x2
Subject to 2x1 + x2 ≥ 2
x1 + 3x2 ≤ 2
x2 ≤ 4,
x1, x2 ≥ 0

Rewriting in the standard form,

Maximize z = 3x1 – x2 + 0S1 – MA1 + 0.S2 + 0.S3
Subject to 2x1 + x2 – S1 + A1 = 2
x1 + 3x2 + S2 = 2
x2 + S3 = 4,
x1, x2, S1, S2, S3, A1 ≥ 0.

Phase I : Consider the new objective,

Maximize Z* = – A1
Subject to 2x1 + x2 – S1 + A1 = 2
x1 + 3x2 + S2 = 2
x2 + S3 = 4,
x1, x2, S1, S2, S3, A1 ≥ 0.

Solving by Simplex method, the initial simplex table is given by

x1 x2 S1 A1 S2 S3
2 0 0 –1 0
0 Ratio
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 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

Work column * pivot element

x1 enters the basic set replacing A1.

The first iteration gives the following table:

x1 x2 x1 A1 S2 S3
0 0 0 –1 0 0
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.
Phase II: Consider the original objective function,
Maximize z = 3x1 – x2 + 0S1 + 0S2 + 0S3
Subject to x1 + x2/2 – S1/2=1
5/2 x2 + S1/2 + S2=1
x2 + S3 = 4
x1, x2, S1, S2, S3 ≥ 0
with the initial solution x1 = 1, S2 = 1, S3 = 4, the corresponding simplex table is
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

Work column * pivot element

Proceeding to the next iteration, we get the following table:

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 6
0

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Since all elements of the last row are non negative, the current solution is optimal.
The maximum value of the objective function Z = 6 which is attained for x1 = 2, x2 =
0.
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Q 4: Describe the economics importance of the Duality concept.

Answer:

The Importance of Duality Concept Is Due To Two Main Reasons

i. If the primal contains a large number of constraints and a smaller number of

variables, the labour of computation can be considerably reduced by
converting it into the dual problem and then solving it.

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.

Economic importance of duality concept

The linear programming problem can be thought of as a resource allocation model in

which the objective is to maximize revenue or profit subject to limited resources.
Looking at the problem from this point of view, the associated dual problem offers
interesting economic interpretations of the L.P resource allocation model. We consider
here a representation of the general primal and dual problems in which the primal
takes the role of a resource allocation model.

Primal

Maximize

z=
n

∑ C .x
j =1
j j

Subject to , i = 1,2,…., m
n

∑a x
j =1
ij j ≤b j

xj ≥ 0, j = 1,2,…., n

Dual

Minimize

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w=
m

∑b .y
i =1
i i

Subject to , i = 1,2,…., n
m

∑a
i =1
ij yi ≤ ci
yj ≥ 0, i = 1,2,…., m

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.

Interpretation of Duel Variables –

For any pair of feasible primal and dual solutions,

(Objective value in the maximization problem) ≤ (Objective value in the minimization

problem)

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.

z=
n m

∑C x ≤ ∑b y
j =1
j j
i =1
i i =w

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
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(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:

The Initial basic Feasible solution using Matrix Minimum Method

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.

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.

Matrix Minimum Method

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 i th 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:

Integer Programming Problem

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
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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

An integer programming problem can be described as follows:

Determine the value of unknowns x1, x2, … , xn

so as to optimize z = c1x1 +c2x2 + . . .+ cnxn

subject to the constraints

ai1 x1 + ai2 x2 + . . . + ain xn =bi , i = 1,2,…,m

and xj ³ 0 j = 1, 2, … ,n

where xj being an integral value for j = 1, 2, … , k ≤ 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 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.

Gomory’s All – IPP Method

An optimum solution to an I. P. P. is first obtained by using simplex method ignoring

the restriction of integral values. In the optimum solution if all the variables have
integer values, the current solution will be the desired optimum integer solution.
Otherwise the given IPP is modified by inserting a new constraint called Gomory’s or
secondary constraint which represents necessary condition for integrability and
eliminates some non integer solution without losing any integral solution. After adding
the secondary constraint, the problem is then solved by dual simplex method to get an
optimum integral solution. If all the values of the variables in this solution are integers,
an optimum inter-solution is obtained, otherwise another new constrained is added to
the modified L P P and the procedure is repeated. An optimum integer solution will be
reached eventually after introducing enough new constraints to eliminate all the
superior non integer solutions. The construction of additional constraints, called
secondary or Gomory’s constraints, is so very important that it needs special attention.

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.

Step 3: Test the integrality of the optimum solution

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
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 ( i 0 , 1, 2 , ........, m1 )
n1

∑y x
j =0
ij j = bi

Where n’ denotes the number of variables and m’ the number of equations.

Choose the largest fraction of bis ie to find {bi}i

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.

Step 6: Find the Gomorian constraint

n1

∑f
j =0
kj x j ≥ f ko

and add the equation

Gsla ( 1 )=
n1
− 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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OPERATIONS RESEARCH
Note: Each Question carries 10 marks
1. What are the important features of Operations Research? Describe in details the
different phases of Operations Research.

Ans :- Important features of OR are:

i. It is System oriented: OR studies the problem from over all point of view of
organizations or
situations since optimum result of one part of the system may not be optimum for
some other
part.
ii. It imbibes Inter – disciplinary team approach. Since no single individual can have a
thorough
knowledge of all fast developing scientific knowhow, personalities from different
scientific and
managerial cadre form a team to solve the problem.
iii. It makes use of Scientific methods to solve problems.
iv. OR increases the effectiveness of a management Decision making ability.
v. It makes use of computer to solve large and complex problems.
vi. It gives Quantitative solution.
vii. It considers the human factors also.
Phases of Operations Research
The scientific method in OR study generally involves the following three phases:
i) Judgment Phase: This phase consists of
a) Determination of the operation.
b) Establishment of the objectives and values related to the operation.
c) Determination of the suitable measures of effectiveness and
d) Formulation of the problems relative to the objectives.
ii) Research Phase: This phase utilizes
a) Operations and data collection for a better understanding of the problems.
b) Formulation of hypothesis and model.
c) Observation and experimentation to test the hypothesis on the basis of additional
data.
d) Analysis of the available information and verification of the hypothesis using pre
established
measure of effectiveness.
e) Prediction of various results and consideration of alternative methods.
iii) Action Phase: It consists of making recommendations for the decision process by
those who
first posed the problem for consideration or by anyone in a position to make a decision,
influencing the operation in which the problem is occurred.

2. Describe a Linear Programming Problem in details in canonical form.

Ans : Linear Programming

The Linear Programming Problem (LPP) is a class of mathematical programming in
which the
functions representing the objectives and the constraints are linear. Here, by
optimization, we
mean either to maximize or minimize the objective functions. The general linear
programming
model is usually defined as follows:
Maximize or Minimize
Z = c1 x1 + c2 x 2 +………….. +cn x n
subject to the constraints,
a11 x1 + a12 x2 + …………….+ a1n xn ~ b1
a21 x1 + a22 x2 +……………..+ a2n xn ~ b2
……………………………………………
……………………………………………
am1x1 + am2 x2 +……………. +amn xn ~ bm
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and x1 > 0, x2 > 0, xn > 0.
Where cj, bi and aij (i = 1, 2, 3, ….. m, j = 1, 2, 3…….. n) are constants determined
from the
technology of the problem and xj (j = 1, 2, 3 n) are the decision variables. Here ~ is
either < (less
than), > (greater than) or = (equal). Note that, in terms of the above formulation the
coefficient cj,
aij, bj are interpreted physically as follows. If bi is the available amount of resources i,
where aij
is the amount of resource i, that must be allocated to each unit of activity j, the
“worth” per unit of
activity is equal to cj.
Canonical forms:
The general Linear Programming Problem (LPP) defined above can always be put in the
following form which is called as the canonical form:
Maximise Z = c1 x1+c2 x2 + …….+cn xn
Subject to
a11 x1 + a12 x2 +…………….. +a1n xn < b1
a21 x1 + a22 x2 +…………….. +a2n xn < b2
……………………………………………
……………………………………………
am1x1+am2 x2 + …… + amn xn < bm
x1, x2, x3, … xn > 0.
The characteristics of this form are:
1) all decision variables are nonnegative.
2) all constraints are of < type.
3) the objective function is of the maximization type.
Any LPP can be put in the cannonical form by the use of five elementary
transformations:
1. The minimization of a function is mathematically equivalent to the maximization of
the
negative expression of this function. That is, Minimize Z = c1 x1 + c2x2 + ……. + cn
xn is
equivalent to
Maximize – Z = – c1x1 – c2x2 – … – cnxn.
2. Any inequality in one direction (< or >) may be changed to an inequality in the
opposite
direction (> or <) by multiplying both sides of the inequality by –1.
For example 2x1+3x2 > 5 is equivalent to –2x1–3x2 < –5.
3. An equation can be replaced by two inequalities in opposite direction. For example,
2x1+3x2
= 5 can be written as 2x1+3x2 < 5 and 2x1+3x2 > 5 or 2x1+3x2 < 5 and – 2x1 – 3x2
< – 5.
4. An inequality constraint with its left hand side in the absolute form can be changed
into two
regular inequalities. For example: | 2x1+3x2 | < 5 is equivalent to 2x1+3x2 < 5 and
2x1+3x2 > –
5 or – 2x1 – 3x2 < 5.
5. The variable which is unconstrained in sign (i.e., > 0, < 0 or zero) is equivalent to
the
difference between 2 nonnegative variables. For example, if x is unconstrained in sign
then x
= (x + – x – ) where x + > 0, x – < 0.

3. What are the different steps needed to solve a system of equations by the simplex
method?

Ans: To Solve problem by Simplex Method

1. Introduce stack variables (Si’s) for “ < ” type of constraint.
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2. Introduce surplus variables (Si’s) and Artificial Variables (Ai) for “>” type of
constraint.
3. Introduce only Artificial variable for “=” type of constraint.
4. Cost (Cj) of slack and surplus variables will be zero and that of Artificial variable will
be “M”
Find Zj Cj for each variable.
5. Slack and Artificial variables will form Basic variable for the first simplex table.
Surplus
variable will never become Basic Variable for the first simplex table.
6. Zj = sum of [cost of variable x its coefficients in the constraints – Profit or cost
coefficient of
the variable].
7. Select the most negative value of Zj - Cj. That column is called key column. The
variable
corresponding to the column will become Basic variable for the next table.
8. Divide the quantities by the corresponding values of the key column to get ratios
select the
minimum ratio. This becomes the key row. The Basic variable corresponding to this
row will be
replaced by the variable found in step 6.
9. The element that lies both on key column and key row is called Pivotal element.
10. Ratios with negative and “a” value are not considered for determining key row.
11. Once an artificial variable is removed as basic variable, its column will be deleted
from next
iteration.
12. For maximisation problems decision variables coefficient will be same as in the
objective
function. For minimization problems decision variables coefficients will have opposite
signs as
compared to objective function.
13. Values of artificial variables will always is – M for both maximisation and
minimization
problems.
14. The process is continued till all Zj – Cj > 0.

4. What do you understand by the transportation problem? What is the basic

assumption behind the transportation problem? Describe the MODI method of solving
transportation problem.
Ans: This model studies the minimization of the cost of transporting a commodity from
a
number of sources to several destinations. The supply at each source and the demand
at each
destination are known. The transportation problem involves m sources, each of which
has
available ai (i = 1, 2, …..,m) units of homogeneous product and n destinations, each of
which
requires bj (j = 1, 2…., n) units of products. Here ai and bj are positive integers. The
cost cij of
transporting one unit of the product from the i th source to the j th destination is given
for each i
and j. The objective is to develop an integral transportation schedule that meets all
demands from
the inventory at a minimum total transportation cost.
It is assumed that the total supply and the total demand are equal.
The condition (1) is guaranteed by creating either a fictitious destination with a
demand equal to
the surplus if total demand is less than the total supply or a (dummy) source with a
supply equal
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to the shortage if total demand exceeds total supply. The cost of transportation from
the fictitious
destination to all sources and from all destinations to the fictitious sources are
assumed to be zero
so that total cost of transportation will remain the same.
The Transportation Algorithm (MODI Method)
The first approximation to (2) is always integral and therefore always a feasible
solution. Rather
than determining a first approximation by a direct application of the simplex method it
is more
efficient to work with the table given below called the transportation table. The
transportation
algorithm is the simplex method specialized to the format of table it involves:
i) finding an integral basic feasible solution
ii) testing the solution for optimality
iii) improving the solution, when it is not optimal
iv) repeating steps (ii) and (iii) until the optimal solution is obtained.
The solution to T.P is obtained in two stages. In the first stage we find Basic feasible
solution by
any one of the following methods a) Northwest corner rale b) Matrix Minima Method or
least
cost method c) Vogel’s approximation method. In the second stage we test the B.Fs for
its
optimality either by MODI method or by stepping stone method.
Modified Distribution Method / Modi Method / U – V Method.
Step 1: Under this method we construct penalties for rows and columns by subtracting
the least
value of row / column from the next least value.
Step 2: We select the highest penalty constructed for both row and column. Enter that
row /
column and select the minimum cost and allocate min (ai, bj)
Step 3: Delete the row or column or both if the rim availability / requirements is met.
Step 4: We repeat steps 1 to 2 to till all allocations are over.
Step 5: For allocation all form equation ui + vj = cj set one of the dual variable ui / vj
to zero and
solve for others.
Step 6: Use these value to find Δij = cij – ui – vj of all Δij >, then it is the optimal
solution.
Step 7: If any Dij ￡ 0, select the most negative cell and form loop. Starting point of
the loop is
+ve and alternatively the other corners of the loop are –ve and +ve. Examine the
quantities
allocated at –ve places. Select the minimum. Add it at +ve places and subtract from –
ve place.
Step 8: Form new table and repeat steps 5 to 7 till Δij > 0

5. Describe the North-West Corner rule for finding the initial basic feasible solution in
the transportation problem.

Ans:- North West Corner Rule

Step1: The first assignment is made in the cell occupying the upper left hand (north
west) corner
of the transportation table. The maximum feasible amount is allocated there, that is
x11 = min
(a1,b1)
So that either the capacity of origin O1 is used up or the requirement at destination D1
is satisfied
or both. This value of x11 is entered in the upper left hand corner (small square) of cell
(1, 1) in
the transportation table
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Step 2: If b1 > a1 the capacity of origin O, is exhausted but the requirement at
destination D1 is
still not satisfied , so that at least one more other variable in the first column will have
to take on a
positive value. Move down vertically to the second row and make the second allocation
of
magnitude
x21 = min (a2, b1 – x21) in the cell (2,1). This either exhausts the capacity of origin O2
or
satisfies the remaining demand at destination D1.
If a1 > b1 the requirement at destination D1 is satisfied but the capacity of origin O1 is
not
completely exhausted. Move to the right horizontally to the second column and make
the second
allocation of magnitude x12 = min
(a1 – x11, b2) in the cell (1, 2) . This either exhausts the remaining capacity of origin
O1 or
satisfies the demand at destination D2 .
If b1 = a1, the origin capacity of O1 is completely exhausted as well as the
requirement at
destination is completely satisfied. There is a tie for second allocation, An arbitrary tie
breaking
choice is made. Make the second allocation of magnitude x12 = min (a1 – a1, b2) = 0
in the cell
(1, 2) or x21 = min (a2, b1 – b2) = 0 in the cell (2, 1).
Step 3: Start from the new north west corner of the transportation table satisfying
destination
requirements and exhausting the origin capacities one at a time, move down towards
the lower
right corner of the transportation table until all the rim requirements are satisfied.

6. Describe the Branch and Bound Technique to solve an I.P.P. problem.

Ans :- The Branch And Bound Technique

Sometimes a few or all the variables of an IPP are constrained by their upper or lower
bounds or
by both. The most general technique for the solution of such constrained optimization
problems is
the branch and bound technique. The technique is applicable to both all IPP as well as
mixed
I.P.P. the technique for a maximization problem is discussed below:
Let the I.P.P. be
Subject to the constraints
xj is integer valued , j = 1, 2, …….., r (< n) –––– (3)
xj > 0 …………………. j = r + 1, …….., n ––––––––––(4)
Further let us suppose that for each integer valued xj, we can assign lower and upper
bounds for
the optimum values of the variable by
Lj ≤ xj ≤ Uj j = 1, 2, …. r ––––––––––––– (5)
The following idea is behind “the branch and bound technique”
Consider any variable xj, and let I be some integer value satisfying Lj ￡ I ￡ Uj – 1.
Then clearly
an optimum solution to (1) through (5) shall also satisfy either the linear constraint.
x j > I + 1 ––––––––––––– ( 6)
Or the linear constraint xj ≤ I ………………...(7)
To explain how this partitioning helps, let us assume that there were no integer
restrictions (3),
and suppose that this then yields an optimal solution to L.P.P. – (1), (2), (4) and (5).
Indicating x1

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= 1.66 (for example). Then we formulate and solve two L.P.P’s each containing (1), (2)
and (4).
But (5) for j = 1 is modified to be 2 ≤ x1 ≤ U1 in one problem and L1 ≤ x1 ≤ 1 in the
other.
Further each of these problems process an optimal solution satisfying integer
constraints (3)
Then the solution having the larger value for z is clearly optimum for the given I.P.P.
However, it
usually happens that one (or both) of these problems has no optimal solution satisfying
(3), and
thus some more computations are necessary. We now discuss step wise the algorithm
that
specifies how to apply the partitioning (6) and (7) in a systematic manner to finally
arrive at an
optimum solution.
We start with an initial lower bound for z, say z (0) at the first iteration which is less
than or equal
to the optimal value z*, this lower bound may be taken as the starting Lj for some xj.
In addition to the lower bound z (0) , we also have a list of L.P.P’s (to be called master
list)
differing only in the bounds (5). To start with (the 0 th iteration) the master list
contains a single
L.P.P. consisting of (1), (2), (4) and (5). We now discuss below, the step by step
procedure that
specifies how the partitioning (6) and (7) can be applied systematically to eventually
get an
optimum integer valued solution.

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