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A game is a contest involving 2 or more competitors each of whom wants to win. A theory of games provides a series of mathematical models that may be useful in explaining interactive decision making concepts, where 2 or more competitors are involved under conditions of conflict & competition.
Each decision maker ["PLAYER"] has available to him two or more wellspecified choices or sequences of choices (called "PLAYS"). (2) Every possible combination of plays available to the players leads to a well-defined end-state (win, loss, or draw) that terminates the game.
22 (3) A specified payoff for each player
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The term game designates a situation of business conflict between 2 or more competitors & a competitor is termed as a player. A game with 2 players , where a gain of one player equals a loss to the other , is known as a two person Zero sum game. ie in a two person zero sum game , the algebraic sum 6/30/12 33 of the gains to both the players
A strategy is an alternative taken by any player in a game , & the payoff(Profit or loss) is the result of the strategy.
Let us consider a market with 2 competeting businesses whose objective is to increase their profits by changing the price of their products. We may assume that each business has 2 possible Business 1 strategies, it can increase the price or No Change in Increase in Busines Price s2 choose to sell the Price product at same price 20,20 20,-10 No Change in (ie, do not increase 150,5 price). Price -20,30
44
Rules
Maximin Rule :-According to this strategy the player will choose a strategy that results in the best out of worst outcomes, ie. Player 1 decides to choose the strategy which corresponds to max. out of min. profits. Minimax Rule :- According to this rule , the player choose a strategy that results in the min. out of max. loses. 6/30/12 55
Pure Strategy Games (With Saddle Point) A game where saddle point exist is called a pure strategy game. Rules for determining a Saddle Point
The saddle point is the value of the game(solution of the game). Once saddle point exists for a game , we can say what would be optimal (best) strategy for 2 players. The steps to determine a saddle point are as follows:66
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Illustration
For the following Pay-off matrix of the firm A ,determine the optimal (best) strategies for both the firms & the value of the game using Maximin, Minimax principle.
Firm A 1 5 3 -1 7 12 12 1 2 -1 8 8 11 Firm B 3 4 2 6 -4 4 6 4 14 2 1 2 3 4 6/30/12
16 1
77
Solution
Step 1:- Select the min element of each row of the pay-off matrix & mark them (+) Firm A 1 2 Firm B 3 4 5
-1 *
-1 * 12
16 + 8 12 +
6 *+
14 +
Step 2:- Select the max elements of each column of the pay-off matrix & mark them 4 1 11 + -4 * 2 (+) 1 Since * & + both are marked on element 6 . So value of the game (V) = 6
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88
Illustration
A co. management & the labor union are negotiating a new 4 year settlement. Each of these has 4 strategies:
Hard & aggressive Bargaining Reasoning & Logical Approach Legalistic Strategy Approach Company Strategies
V II III IV
I II III 6/30/12
20 40
40 50
0 20 -30
0 10 0
60 20 -30
-40 60
99
Solution
Applying the rule of finding out the saddle point, We obtain the saddle point which is marked by both (* and +) as shown below:Union Strategies I II III IV I V Company Strategies II III IV 0 10 0
1 -50 0
20 40 40 50 -40 60 60 -60
0 20 -30 10
60 20 -30 -20
Row Minimum 0 1
0
Maxim in
-40 60
Column 60 20 60 Maximum 60 Since Maximin = Minimax = value of the game (V) = 10 6/30/12 1010 Minimax The co. will always adopt strategy III(legalistic strategy) & the
All problems of game where saddle point (ie. Maximum of row minima is not equal to minimum of column maxima) does not exist, are taken as mixed strategy problems. A mixed strategy games can be solved by:6/30/12 1111
Algebraic Method
Consider the 2 person zero sum game with the following pay-off Player A Player B matrix.
I II I II a11 a21 a12 a22
If this game have no saddle point, then the solution of the game is given by :A plays (p, 1-p), where
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P=
a22 a21
1212
Contd.
Illustration
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1414
Solution
Column 25 Maximin
will
P=
15 10
Therefore (1- p) = 1- 1 = 4
1515
Contd.
= 10 25
=2 5
Therefore (1- q ) = 1- 2 = 3 5 5
V=
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375 50 40 - 15 325
1616
Graphical Method
It is used to solve the game in m x 2 or 2 x n form. With the help of 2 graphs we can reduce the pay off matrix of size (2 x n or m x 2 ) to 2 x 2 form & then solve the game using algebraic method (or alternative method)
Player A Illustration Player B B1 B2
B3
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Solution
Since the problem does not posses any saddle point . Therefore graphic method is used to reduce this game in 2 x 2 game.
Player A Player B B1 B3 A1 A2 1* 11 + 8+ 2* B2 3 5+ 5 Row Minimum 1 2
Column 8 maximum 11
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1818
Draw 2 parallel lines one unit apart & mark a scale on each. These 2 lines represents the 2 strategies available to player A. Player A determines the expected pay off for each alternative strategy available to him.
6/30/12 1919
Contd.
B1 31 0 9 8 7 6 5 4 B3 22 B1 1 O Maxim in Point H Lower Envelo p Unit Lengt h 1 1 0 9 8 7 6 5 4 3 2 1 0
Shade d Area
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2020
Contd.
Assuming the player B will always select the alternative strategies yielding the worst result to player A ,profits to A are represented by the lower boundary(shown by the shaded area) for any probabilistic value of A1 & A2 & between 0 & 1. According to the maximin rule , player A will always select a combination of strategies A1 & A2 6/30/12 such that he maximizes his 2121 minimum
Player A A1 A2
B2 3 5
Contd. Player B
B3 2 11
Now we can solve the problem using algebraic method as :A plays (p, 1-p), where P = 25 (3 + 2) (11 + 5) = -3 = -3 (5 - 16) 11 (1-p) = 1- 3 = 8 11 11 B plays (q, 1-q) where q = 2 11 = (3 + 2) (11 + 5) (1-q) = 19 = 2 11 11 6/30/12 -9 5 16 = -9 -11 =9 11
2222
Contd.
3
( )
49
Player B 11
( )
V=
2323
Illustration
Obtain the optimal strategies for both players & the value of the game for 2 person zero sum game whose pay off matrix is as follows:Player A Player B
B1 B2 1 -3 3 5 -1 6 4 1 2 2 -5 2424 A1 A2 A3 A4 A5 6/30/12 A6
Solution
Shaded Area 6 5 4 3 2 1 Unit Length 0 1 2 3 4 5 2525 6 B
Now we plot the graph as functions of player B , described for player A in the
6 5 A4 4 A2 3 A5 2 A1 1 0 A 3 1 2 -
3 4 A6 5 -6 6/30/12
Contd.
Since the player wishes to minimize his maximum expected pay off (ie. Losses) we consider the lowest point of intersection H on the upper envelop of Bs expected pay offs equations. The point H represents the minimax expected value of the game for player B. The lines A2 & A4 are passing through H, define the 2 relevant moves A2 & A4 that alone the player A need to play. The solution of the original 6 x 2 game therefore reduces to Player B of the simpler that Player A B1 B2 game with 2x 2 pay off matrix as
A2 A4 6/30/12 3 4 5 1 2626
Contd.
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Contd.
49 = -5
2828
Principle of Dominance
We can reduce the size of a games pay off matrix by eliminating an alternative(strategy) which is so inferior to another as never to be used. Such a strategy is said to be dominated by the other. The concept of dominance is 2929
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Rule 1 :-If all the elements in a row (say I th row ) of a pay off matrix are less than or equal to the corresponding elements of the other row ( say j th row) then the player A will never choose the I th strategy & that row can be deleted from the matrix. Rule 2 :- If all the elements 3030a in
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Illustration
Player A
B1 B3 1 2 6 7 5 6
Player B B2 7 2 1
A1 A2 A3
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3131
Solution
A1 A2 A3
Clearly the third column is dominated by the first column(ie, greater than or equal) so it will be deleted. The reduced matrix is as follows 6/30/12 3232
Contd.
Player A A1 A2 A3 B1 1 6 5 Player B B2 7 2 1
Third row is less than (or equal) to second row therefore it will be deleted. Player A A1 A2 Player B B2 7 2
B1 1 6
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3333
Contd.
= 3 5
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3434
Contd.
- 40
(1 + 2) (7 + 6) = - 10 = 4
5,3535 , 0 5
Illustration
Solve the game whose pay off matrix is given below Player A A1 A2 A3 A4
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Player B
B1 B2 3 3 4 0 2 4 2 4 4
B3 2 4 0
B4 0 4 0 8
3636
Solution
Player B
Player A
B2
4 2 4
B3
2 4 0
B4
4 0 8
A2 A3 A4
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3737
Contd.
Player B
Player A
2
B3
4
B4
4 0 0 8
A2 A3 A4
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3838
Contd.
Player B
Player A A3 A4
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B3
B4 4 0 0 8
3939
Illustration
2 competitors are competing for the market share of the similar product. The pay off matrix in terms of their advertising plan is shown below:Competitor A
No Advertising
Competitor B
Medium Advertising Heavy
Advertising
10 13 16
5 12 14
-2
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4040
Solution
Competitor B
Competitor A
Medium Advertising
Heavy Advertising
12 14
15 10
4 3
4/7 3/7
(p) (1-p)
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The assumptions that the players have the knowledge about their own pay offs & payoffs of others is un realistic. He can only make guess of his own & his rivals strategies. As the no. of players increase in the game , the analysis of the gaming strategies becomes increasingly complex & difficult.
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The competitors are fully aware of the strategies open to each other & their resultant payoffs.
The pay offs must represent utilities for a market share of 60 % must have 3 times as much utility to the player as a market share of 20 % . Due to these severe assumptions , the practical value 6/30/12 4343
Illustration
Find the optimum strategies & value of the game for the 2 players from the following pay off matrix.;Player A 4 3 Player B 2 6
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4444
Solution
Since there is no saddle point, we will solve the game by algebraic Player method (q) B
( 1 q) B1 B2
Player 4 2 A 3 6 (p) A1 (1-p) A2 Let player A choose strategy A1 with probability (p) , so obviously he will choose strategy A2 with probability ( 1-p) because the sum of all probabilities is one. Similarly let player B choose strategy B1 with probability (q) & b2 with probability (1-q) Now in order that player A may be unaffected with whatever choice B makes, the optimal plan for the player A should be such that the expected pay off for each of Bs strategies should be equal ie. 6/30/12 4545
Contd.
Value of the game is determined by substituting the value of p in expected values of player A ie.
6/30/12
Contd.
Similarly value of the game is determined by substituting the value of q in expected values of players B ie. 4 x 4/5 + 2 x 1/5 18/5 or 3 x 4/5 + 6 x 1/5 = 18/5
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= 16/5 + 2/5 =
= 12/5 + 6/5
4747
SEQUENCING PROBLEMS
A sequence is an order in which jobs are processed. The sequencing problem arises whenever there is a need for determining an optimal order of performing a number of jobs by a number of service facilities according to some pre defined order so as to optimize the output in terms of time, cost or profit.
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Basic Terminology
Jobs:The jobs/items/orders/customers are the primary stimulus for sequencing. there should be number of jobs (say n) to be processed or sequenced Number of Machines:- It means the service facilities through which a job must pass before it is assumed to be completed. It may be a mechanical Start Finish M1 M2 M3 device. There must be certain 6/30/12 4949 number of machines ( say m) to be
Contd.
Total Elapsed Time:- It is the time interval between starting the first job & completing the last job including the idle time (if any) in a particular order by the given set of machines. Idle Time:- It is the time for which a machine does not have a job to process ie. the time the machine remains idle during the total elapsed time.
6/30/12 5050
Contd.
Static Arrival Pattern:- it refers to the pattern where all the jobs arrive simultaneously. Dynamic Arrival Pattern:- it refers to the pattern where all the jobs arrive continuously. Notations:-
Basic Assumptions
No machine can process more than one job at a time. The processing time on different machines are exactly known & are independent of the order of the jobs in which they are to be processed. The time taken by the jobs in moving from one machine to another is very small (negligible) & is taken5252 equal as 6/30/12
Problems with n jobs through TWO machines. Problems with n jobs through THREE machines. Problems with TWO jobs through m machines.
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5353
Simplest Let there be n jobs to be processed through two machines A & B in the order AB ie each job will go to machine first after it has ben completely processed on machine A, it is assigned to machine B . If the machine B is not free at the moment for processing the same job, then the 6/30/12 5454 job has to wait in a waiting line for its
Step I :- List the jobs along with their processing times in a table as shown below:- Time on Processing Job Number
machine A B J1 N J2 J A1 B2 AN BN A2 B2
Step II :- Examine the rows for 6/30/12 5555 processing times on machines A & B
Contd.
Step III (a):-If the smallest processing time is for the first machine A , then place the corresponding job in the first available position in the sequence. ( Example if A2 is the smallest time , place job j2 in the first position in the sequence)
(b) :- if it is for the second machine B (say B1) then place the corresponding job (that will be j1) in the last available position in the sequence
5656
6/30/12
Step IV:- Remove the assigned jobs from the table. There are now (n-1) jobs left to be sequenced. If the table is empty ( ie. (n-1) =0) , go to step 5, otherwise ,repeat steps 2 & 3. Step V :- After finding the optimal sequence as stated above , we can find the overall or total elapsed time & also the idle times on machine A & B s under:(a) :- Idle time for machine A = (Total elapsed time ) (Time when the last job on machine A) Idle time for machine B = Time at which first job in a sequence finishes on machine A + n j = 2 {( Time when the jth job in a sequence start on machine B ) (Time when the (j 1) the job in a sequence finishes on machine B)} Total elapsed time = Time when nth job in a sequence finishes on machine B n n Bj+ IB j in a sequence finishes
Contd.
6/30/12
5757
Illustration
A certain manufacturer has to process 6 items through 2 stages of production viz, assembling & Polishing. The time (in hrs.) taken for each of these items at the different Items I1 I2 I3 I5 stages is given below :-I4 I6
Assembling ( M1) Polishing (M2) 4 11 9 7 3 10 12 8 11 10 7 13
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Solution
The smallest time in the given table is 3 for I3 . Since it occurs for M1, it is placed Job sequence for the first job sequence & is then deleted Ifrom the table (Step 3 (a) of algorithm) 3
Items I1 I2 I3 I4
I5
M1 M2
I3 6/30/12
I1
Job Sequence
5959
Contd.
After assigning I1 item , we left with 4 items with their respective processing times as I2 Items follows:I4 I5
I6 M1 M2 7* 7* 12 8 11 10 9 13
Now a tie exists between the item processing times for I2 by M1 and M2 . A decision to put I2 in the third /sixth position , as early or late as possible in the sequence , will not affect the total elapsed time. The choice can be resolved by other Job priority considerations . Let time M2 be the decidingI1factor ,Sequence I2 is placed last in the job I3 I2 sequence as follows:6/30/12 6060
Contd.
Item I6 will be placed in the first available position & I5 in the last remaining position. Job get the following optimal We Sequence I3 I6 I5 I4 I2 sequence for I1 jobs. 6/30/12 6161
Contd.
Item Sequence
The minimum elapsed time from the start of the first job to the completion of the last job in the above optimal sequence is calculated as shown in the Computation of Minimum following table:Elapsed Time
(M1) Time in out 0 3 3 7 7 16 16 27 27 39 39 46 Assembling
I3 I1 I6 I5 I4 I2 6/30/12
3 13 13 24 24 37 37 47 47 55 55 62 *
3 16 6262 -
Processing N Jobs through Three machines 3 machines instead This is an extension in which there are
of 2. Each job is processed through 3 machines A, B & C in the order ABC . No passing of jobs is permitted. I.e.. The same order over each machine is maintained & the actual processing times in all the 3 machines is known. The Jobs problem is to J1 find out the optimal sequence which J2 J3 .. minimizes the total elapsed time. Jn
Machine jobs along with their A2(t11) A1(t11) A3(t31) The list of A processing times is given Machine B An(t1n) below:Machine C B1(t21) Bn(t2n) C1(t31) Cn(t3n) B2(t21) B3(t31) C2(t31) C3(t31)
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6363
Contd.
Condition 1. The minimum processing time on machine M1 is greater than or equal to the maximum processing time on machines M2,.
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Condition 2. the minimum processing time on machine M3 is greater than or equal to the maximum processing time on
6464
Algorithm
Step I :- replace the given problem with an equivalent problem involving N jobs two machines. Here two fictions(virtual) machines say G & H are introduced & their corresponding processing times are given by:
Gi = Ai + Bi or t Gi 1,2,..n Hi = Bi + Ci or 1,2,..n t Hi
= t Gi + t 2i , i = = t Gi + t 3i , i =
Processing times on machine G is 6/30/12 6565 given by the sum of processing times
Determine the optimal sequence of jobs that minimizes the total elapsed time based on the following information. Processing time on machines is given in hrs. & passing is not allowed.
Jobs Machine M1 Machine M2 Machine M3 A G 3 7 4 3 6 12 B 8 3 7 C 7 2 5 D 4 5 11 E 9 1 5 F 8 4 6
Illustration
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6666
Solution
From the processing time given on the 3 machines it is clear that minimum time on machine M3 is 5 hrs. which is equal to the maximum processing time on machine M2. Hence the given problem can be converted into a problem of 7 jobs & 2 machines & solution is possible. Now we should add the processing times of Processed M2 & different jobs on machine Time M3 respectively as follows:Jobs Gi = Mi + Bi Hi = Bi + Ci
A B C D E F G 6/30/12 3+4=7 8 + 3 = 11 7+2=9 4+5=9 9 + 1 = 10 8 + 4 = 12 7 + 3 = 10 4 + 6 = 10 3 + 7 = 10 2+5=7 5+ 11 = 16 1+5=6* 4 + 6 = 10 3 + 12 = 15 6767
Contd.
Now the minimum processing time among the two combinations of machine is 6 hrs. for job E in the second combination. Hence job E will be processed last.
Job sequence E
Job E will be removed from the list of the jobs. Remaining Jobs A C D F G jobs are as follows:-B Machine G 7 * 11 9 9 12 10 Machine H 10 10 7 16 10 15
Job sequence
Now the minimum processing time is 7 hrs. for job A in the A C E first combination & job C in the second combination. Hence, 6/30/12 6868 job A will be processed first & job C at the last available
Contd.
The remaining jobs will be Job B D F G 119* 1210 10161015 Machine G Machine H
The minimum processing time now is 9 hrs. of job D in the first combination. Hence, job D will be placed at the first A D C E available position 7 removed from the list. Remaining jobs will be
Job
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B F G
6969
Now the minimum processing time is 10 hrs. for jobs B, F & G. Because it is in first combination for job G, it will be placed at the first available position in the job sequence & is in second combination for job B 7 F , they are place at the last available position in the order. The final job sequence (optimal) will look like this:Job sequence
Contd.
The total elapsed time & total & total idle time of all machines may be calculated with the help of given 3 machines & their processing times in the following way Machine optimal job sequence) Machine M2 Machine M3 Idle Time on machine Job (using above M1 Time in Time Time in Time Time in Time out out out M1 M2 M3
3
7 A D G 0 3 7 3 3 7 7 14 14 22 22 7 7 13 7070 2 5 5
12 13 24 17 24 36 25 36 43
B 6/30/12 14
Contd.
59 Hrs.
Idle Time for Machine M1 = 13 Hrs. Idle Time for Machine M2 = 37 hrs Idle Time for Machine M3 = 7 hrs.
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7171
Processing n jobs through MMachines There are n jobs (denoted by 1,2,3, ..n) to be performed.
Each of the jobs is to be processed through m machines, say M1,M2 Mm in the order M1,M2,. Mm Same order over each machine is maintained ie, passing of jabs is not permitted. The actual processing times are known & represented by a table as shown below:Job M1 . t11 t21 t31 M2 Machine Mm t12 t22 t32 M3 t13 t23 t33 : : 7272
1 2 3 : : 6/30/12
. . .
Contd.
There is no general solution available at present for such a case of n jobs & 3 machines. However, previous method given by Johnson can be applied if either or both of the following conditions are satisfied. If both the conditions are unsatisfied , then the technique fails.
Condition 1. The minimum processing time on machine A is greater than or equal to the maximum processing time on machine M2,M3,. Mm-1 ie.
Algorithm
Step I :- replace the given problem with an equivalent problem involving N jobs two machines. Here two fictions(virtual) machines say G & H are introduced & their corresponding processing times are given by:
Processing times on machine G is given by the sum of processing times on machine M1 to Mm-1 whereas processing time on machine7474is H 6/30/12
Illustration
Find an optimal sequence for the following sequencing problem of 4 jobs & 5 machines (when passing is not allowed ) of which Processing time (in hrs.) is as follows:1 2 3 4 6 5 4 7 4 5 3 2 1 3 4 2 2 4 5 1 8 9 7 5
7575
Job
Machi ne
M1 M2 M3 M4 M5
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Solution
From the data of the problem it is observed that Min of M1 = 4, Min of M5= 5 & Max of (M2, M3, M4 ) =5 Here Min of M5 max. of (M2, M3, M4 ) is satisfied (condition II) , the given problem can be converted into n jobs 2 machines by considering G & H as Processing fictious machines. Such that processing is in order Time M1 M2 M3 M4 M5
Job G i = M1 M2 M3 M4 M5 M4 M5 1 6+4+1+2 = 13
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H i = M1 M2 M3
2 5+5+3+4 = 17
Contd.
Job G H
The minimum processing time is 10 hrs. for job 4 Job Sequence in the second combination. Hence job 4 placed at the 4 last available position in the job sequence & is removed from the list.
7777
Contd.
Now the minimum processing time is 13 hrs. for job 1 in the first Job Therefore , job 1 is combination.Sequence 1 4 placed at the first available position in the job sequence & is removed from the list
Contd.
Job Sequence
1 3 2 4
Total elapsed time & total idle time may be calculated in the following way:Computation of Total Elapsed Time
Machines M2 M5 Out In Out In Idle Time for Machine M2 M3 M5
Job
M1 M4 In Out In Out
M3 Out In
M1
M4
13 1 2 3 0 - 6 6- 10 13 - 21 10- 11 11 - 13 1 -
6 2 2 7979
10 2 3 1
11 4 1 -
6 - 10 10 - 13 13 - 17 17 - 22 22 - 29 10 - 15 15 - 20 20 - 23 23- 27 6/30/12 29 - 38
Contd.
43Hrs.
Idle Time for Machine M1 = 21 Hrs. Idle Time for Machine M2 = 29hrs Idle Time for Machine M3 = 33 hrs. Idle Time for Machine M4 = 31 hrs. Idle Time for Machine M5 = 14 hrs.
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Only 2 jobs are to be processed Each job is to be processed on m machines say m1,m2..mm in 2 different orders. The technological ordering of each of the 2 jobs through m machines is known in advance. Such ordering may not be same for 2 jobs.
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Graphical Procedure
Construct a cartesian co-orinate system where x- axis represent the processing time & sequence of job 1 on various machines whereas y-axis represent the processing time & sequence of job 2 on various machines. Scale used must be same for both the jobs. On each axis , mark the operation times in the order in which the operations must be performed for that job. Shade the area corresponding to each machine at the intersection of the intervals 6/30/12 8282
Path starts at the lower left corner(origin) Path stops at the upper right corner(end of the final block) It does not intersect any of the shaded block Movement is allowed in only8383 3 6/30/12
A machine shop has 5 machines A,B,C,D & E. Two jobs must be processed through each of these machines. The time (in hrs.) taken on each of the machines & the necessary sequence of jobs through the shop are given below:Machines
B C D E
Job 1 Job 2 4 5
2
C
3
A
4
D
6
E
2
B 8484
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Solution
Job 2
20 B 1 E4 1 D2 9 A 4 5 B C A B E D
C 9 D 15 E 17 8585 Job 1
Star 0 2 t 6/30/12 A
Illustration
Use graphical method to determine the minimum time needed to process the 2 jobs on 5 machines A,B,C, D & E. The technological order for these jobs on machines is as follows:Machines
A B B C C A D D E E
Job 1
Job 2
Job 1
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6 10 8 6
8 4
4 12
12 4
8686
Job 2
B E 40
Solution E
D Finish
D 28 A2 4 C1 8 B10
Idle time for job 1 =( 4+6) Total elapsed time = 34 +(4+6) = 44 Idle time for job 2 = 4 Total elapsed time = 40+(4) = 44
0 6 6/30/12 Star A
14 18 B C
30 D
34 E
8787
Job 1