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MB0048 Q1. A. What do you mean by linear programming problem?

Explain the steps involved in linear programming problem formulation? Ans. 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. 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. Advantages 1. It helps in attaining the optimum use of productive factors. 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 non linear condition usually results in an incorrect soIution 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 can not 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.

Q2. A. Discuss the methodology of Operations Research. Ans. The scientific method in OR study generally involves the following three phases: Judgment Phase: This phase includes the following activities: a) Determination of the operations b) Establishment of the objectives and values related to the operations c) Determination of the suitable measures of effectiveness d) Formulation of the problems relative to the objectives

Research Phase: This phase utilises the following methodologies: 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 Action Phase: The action phase involves making recommendations for the decision process. The recommendations can be made by those who identified and presented the problem or anyone who influences the operation in which the problem has occurred.

B. Explain in brief the phases of Operations Research Ans. Step I. Observe the Problem Environment The first step of OR study is the observation of the environment in which the problem exists. The activities 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. Step II. 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. Step III. 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. Step IV. 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. Step V. 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 its limitations if any. If the solution is not reasonable or if the model is not behaving properly, updating and modification of the model is considered at this stage. The end result of this step is solution that is desirable and supports current organisational objectives. Step VI. 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 the organisation as a whole. A properly implemented solution obtained through OR techniques results in improved working conditions and wins management support

Q4. Explain the procedure of MODI method of finding solution through optimality test. Ans. Modified Distribution Method (MODI Method) or u-v Method: This method follows the following steps: Step-1: Take the costs only that cells where allocations have. It is called cost matrix for allocated cells.. Step-2:On the above of each column we put v1 , v2 , v3,.etc and at the same time on the left of each row we put u1 , u2 , u3 , etc so that the sum of corresponding us and vs in every allocated cell is equal to above cost. Then by algebraic calculation, the values of each us and vs are to be found out. It is called ui + vj matrix for allocated cells. Step-3:The empty cells are filled up by the sum results of corresponding us and vs. It is called ui + vj matrix for vacant cells.. Step-4: Subtract the above matrixs cells from the corresponding cells of original matrix. It is called cell evaluation matrix. Step-5: If the above cell evaluation matrix contains only non-negative cells , then the basic feasible solution is optimal. On the other hand, if the above cell evaluation matrix contains any ve cell , then the basic feasible solution is not optimal. For optimal solution the following iteration should be run: Step-1: Select the most negative cell from the above cell evaluation matrix. If there have more than one equal cell, then any one can be chosen. Step-2: Write the initial basic feasible solution. Give a tick () at the most negative entry cell. It is called identified cell. Step-3: Trace or draw a path in this matrix consisting of a series of alternatively horizontal and vertical lines. The path begins and terminates in the identified cell. All corners of the path lie in the cells for which allocations have been made. The path may skip over any number of occupied or vacant cells. Step-4:Mark the identified cell as +ve and each occupied cell at the corners of the path alternatively ve , +ve , -ve and so on. Step-5: Make a new allocation in the identified cell by entering the smallest allocation on the path that has been assigned a vesign. Add and subtract this new allocation from the cells at the corners of the path , maintaining the row and column requirements. This causes one basic cell to become zero and other cells remain nonnegative. The basic cell whose allocation has been made zero , leaves the solution. VAM-MODI process: VAM-MODI process indicates, initial basic feasible solution is calculated by Vogels Approximation Method first then optimality test can be checked out by Modified Distributive Method.

Q5. A. Explain the steps in Hungarian method. Ans. For example: cij = is the wage paid to the ith worker for the jth task. We want to hire n workers to complete n tasks with minimun costs, i.e., we have to pick exactly one element from each row and from each column of the cost matrix C in such a way that the sum of these elements is as small as possible. Hungarian method: the algorithm 1. Subtract the entries of each row by the row minimum. => Each row has at least one zero => All entries are positive or zero.

2. Subtract the entries of each column by the column minimum. => Each row and each column has at least one zero. 3. Select rows and columns across which you draw lines, in such a way that all the zeros are covered and that no more lines have been drawn than necessary. 4. A test for optimality. (i) If the number of the lines is n, choose a combination from the modified cost matrix in such a way that the sum is zero. (ii) If the number of the lines is < n, go to 5. 5. Find the smallest element which is not covered by any of the lines. Then subtract it from each entry which is not covered by the lines and add it to each entry which is covered by a vertical and a horizontal line. Go back to 3. If we have, instead of a minimization problem, a maximization problem, multiply the matrix C by -1 and proceed as above. If C is not a square matrix (there are more tasks than workers or conversely), we have to augment C into a square matrix by adding zero rows or columns.

Q6. A. Explain the steps involved in Vogels approximation method (VAM) of solving Transportation Problem. Ans. In addition to the northwest corner and intuitive lowest-cost methods of setting an initial solution to transportation problems, we introduce one other important techniqueVogels approximation method (VAM). VAM is not quite as simple as the northwest corner approach, but it facilitates a very good initial solutionas a matter of fact, one that is often the optimal solution. Vogels approximation method tackles the problem of finding a good initial solution by taking into account the costs associated with each route alternative. This is something that the northwest corner rule did not do. To apply the VAM, we first compute for each row and column the penalty faced if we should ship over the second best route instead of the leastcost route. The six steps involved in determining an initial VAM solution are illustrated on the Arizona Plumbing Corporation data. VAM Step 1: For each row and column of the transportation table, find the difference between the two lowest unit shipping costs. These numbers represent the difference between the distribution cost on the best route in the row or column and the second best route in the row or column. (This is the opportunity cost of not using the best route.) VAM Step 1 The numbers at the heads of the columns and to the right of the rows represent these differences. For example, in row E the three transportation costs are $8, $4, and $3. The two lowest costs are $4 and $3; their difference is $1. VAM Step 2: Identify the row or column with the greatest opportunity cost, or difference. In the case of Table T4.5, the row or column selected is column A, with a difference of 3.

VAM Step 3: Assign as many units as possible to the lowest cost square in the row or column selected. VAM Step 3 has been done in Table T4.6. Under Column A, the lowest-cost route is DA (with a cost of $5), and 100 units have been assigned to that square. No more were placed in the square because doing so would exceed Ds availability. VAM Step 4: Eliminate any row or column that has just been completely satisfied by the assignment just made. This can be done by placing Xs in each appropriate square. VAM Step 4 has been done in Table T4.6 D row. No future assignments will be made to the DB or DC routes. VAM Step 5: Recompute the cost differences for the transportation table, omitting rows or columns crossed out in the preceding step. This is also shown in Table T4.6. As, Bs, and Cs differences each change. Ds row is eliminated, and Es and Fs differences remain the same as in Table T4.5. VAM Step 6: Return to step 2 and repeat the steps until an initial feasible solution has been obtained.