Master of Business Administration Semester 2 MB 0048: Operations Research (4 credits) (Book ID: B1631) ASSIGNMENT- Set 1 Name PRIYANKA

A PODDAR Roll Number 511230586

Q1. a. What do you mean by linear programming problem? Explain the steps involved in linear programming problem formulation?

A problem consists of a linear function of variable called objective function subject to set of linear equation or inequalities called constraints are known as linear programming problem. 1.In LP model the various parameters namely the objective function coefficients, R.H.S, coefficients of the constraints and resource values are certainly known and their value do not change with time. Thus the profit or cost per unit of product, availability of labour and material, market demand is known with certainty.. 2. It improves the quality of decisions. The individual who makes use of linear programming methods becomes more objective than subjective. 3. It also helps in providing better tools for adjustment to meet changing conditions. 4. It highlights the bottlenecks in the production processes. 5. Most business problems involve constraints like raw materials availability, market demand etc. which must be taken into consideration. Just we can produce so many units of product does not mean that they can be sold. Linear programming can handle such situation also. Limitations 1. In some problems objective functions and constraints are not linear. LPP under nonlinear condition usually results in incorrect solutions 2. LPP deals with problems that have a single objective. Real life problem may involve multiple objectives. 3. Parameters appearing in the model are assumed to be constant. But in real life situation they are neither constant nor deterministic. 4. It is applicable to only static situations since it does not take into account the effect of time. 5. LPP cannot be used efficiently for large scale problems, the computational difficulties are enormous, even when the large digital computer is available. 6. LPP may get fractional valued answers for the decision variables, whereas it may happen that only integer values of the variable are logical. . A paper mill produces two grades of paper viz., X and Y. Because of rawmaterial restrictions, it cannot produce more than 400 tons of grade X paperand 300 tons of grade Y paper in a week. There are 160 production hours in aweek. It requires 0.20 and 0.40 hours to produce a ton of grade X and Y papers.The mill earns a profit of Rs. 200 and Rs. 500 per ton of grade X and Y paperrespectively. Formulate this as a Linear Programming Problem.

B Q. A paper mill produces two grades of paper viz., X and Y. Because of rawmaterial restrictions, it cannot produce more than 400 tons of grade X paperand 300 tons of grade Y paper in a week. There are 160 production hours in aweek. It requires 0.20 and 0.40 hours to produce a ton of grade X and Y papers.The mill earns a profit of Rs. 200 and Rs. 500 per ton of grade X and Y paper respectively. Formulate this as a Linear Programming Problem.

Q2. a. Discuss the methodology of Operations Research. Answer : Essential characteristics Three essential characteristics of operations research are a systems orientation, the use of interdisciplinary teams, and the application of scientific method to the conditions under which the research is conducted. There are six phases of the operations research: 1. Collection of data prior to the introduction of the partograph. 2. Introduction of the partograph by means of a training programme. 3. Evaluation of the training programme. 4. Collection of data after the introduction of the partograph. 5. Analysis of data both before and after introduction of partograph. 6. Dissemination of results and discussion of implications.

b. Explain in brief the phases of Operations Research. Answer :The phases of OR are:1 Observe the problem environment 2 Analyse and define the problem 3 Develop a model 4 Selection of data input 5 solution and testing 6 Implementation of the solution Observe the Problem Environment-The first step of OR study is the observation of the environment in which the problem exists. Theactivities that constitute this step are visits, conferences, observations, research etc. with the help of such activities, the OR analyst gets sufficient information and support to proceed and is better prepared to formulate the problem. Analyse and Define the Problem-In this step not only the problem is defined but also uses, objectives and limitations of the study that are stressed in the light of the problem. The end results of this step are clear grasp of need for a solution and understanding of its nature. Develop a Model-The next step is to develop model, which is representation of same real or abstract situation. OR models are basically mathematical models representing systems, process or environment in form of equations, relationships or formulae. The activities in this step is to defining interrelationships among variables, formulating equations, using known OR models or searching suitable alternate models. The proposed model may be field tested and modified in order to work under stated environmental constraints. A model may also be modified if the management is not satisfied with the answer that it gives. Selection of Data Input-It is a established fact that without authentic and appropriate data the results of the OR models cannot be trusted. Hence, taping right kind of data is a vital step in OR process. Important activities in this step are analysing internal-external data and facts, collecting opinions and using computer data banks. The purpose of this step is to have sufficient input to operate and test the model. Solution and Testing-In this step the solution of the problems is obtained with the help of model and data input. Such a solution is not implemented immediately and this solution is used to test the model and to find itslimitations if any. If the solution is not reasonable or if the model is not behaving properly, updating andmodification of the model is considered at

this stage. The end result of this step is solution that is desirable and supports current organisational objectives. Implementation of the Solution-This is the last phase of the OR study. In OR the decisionmaking is scientific but implementation of decision involves many behavioural issues. Therefore, implementation authority has to resolve the behavioural issues, involving the workers and supervisors to avoid further conflicts. The gap between management and OR scientist may offer some resistance but must be eliminated before solution is accepted in totality. Both the parties should play positive role, since the implementation will help theorganisation as a whole. A properly implemented solution obtained through OR techniques results in improved working conditions and wins management support.

Step I. Observe Q3. Solve the following Linear Programming Problem using Simple method. Maximize Z= 3x1 + 2X2 Subject to the constraints: X1+ X2 4 X1+ X2 2 X1, X2 0 Answer : Max 10 marks

Q4. Explain the procedure of MODI method of finding solution through optimality test. 10 marks(300 - 350 words each)

Answer :Transportation Algorithm for Minimization Problem (MODI Method) Step 1 Make the transportation table entering the origin capacities ai, the cost cij and destination requirement bj Q5. a. Explain the steps in Hungarian method. Answer : The Hungarian algorithm allows a "minimum matching" to be found. This can be used in instances where there are multiple quotes for a group of activities and each activity must be done by a different person, to find the minimum cost to complete all of the activities.

b. Solve the following assignment problem.

5 +5 = 10 marks(200 - 250 words each)

Machine A B C D Answer :

1 60 40 55 45

2 50 45 70 45

Operators 3 45 55 60 40

4 45 35 50 45

Q6. a. Explain the steps involved in Vogels approximation method (VAM) of solving Transportation Problem. 5 +5 = 10marks(200 - 250words each) Answer :Vogel's Approximation Method (VAM) This method is based on the 'difference' associated with each row and column in the matrix giving unitcost of transportation cij. This 'difference' is defined as the arithmetic difference between the smallest and nextto the smallest element in that row or column. This difference in a row or column indicates the minimum unitpenalty incurred in failing to make an allocation to the smallest cost cell in that row or column. Thisdifference also provides a measure of proper priorities for making allocations to the respective rows and

b. Solve the following transportation problem using Vogels approximation method.

Factories

Distribution Centres C1 C2 C3 C4

Supply

F1

50

F2 F3 Requirements

7 2 60

5 5 40

2 4 20

3 5 15

60 25

Answer : 1. Put vogel's approximation method for determining the initial basic feasible solution