MB0048-OPERATIONS RESEARCH

1Q. Discuss the various stages involved in the methodology of Operations Research. Briefly

explain the techniques and tools of Operations Research.

Ans: The basic dominant characteristic feature of operations research is that it employs mathematical representations or models to analyse problems. This distinct approach represents an adaptation of the scientific methodology used by the physical sciences. The scientific method translates a given problem into a mathematical representation which is solved and retransformed into the original context.
Steps in the OR methodology

Definition The first and the most important step in the OR approach of problem solving is to define the problem. One needs to ensure that the problem is identified properly because this problem statement will indicate the following three major aspects: Description of the goal or the objective of the study Identification of the decision alternative to the system Recognition of the limitations, restrictions, and requirements of the System Construction Based on the problem definition, you need to identify and select the most appropriate model to represent the system. While selecting a model, you need to ensure that the model specifies quantitative expressions for the objective and the constraints of the problem in terms of its decision variables. A model gives a perspective picture of the whole problem and helps in tackling it in a well-organised manner. Therefore, if the resulting model fits into one of the common mathematical models, you can obtain a

convenient solution by using mathematical techniques. Solution After deciding on an appropriate model, you need 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. An optimum solution is one which maximises or minimises the performance of any measure in a model subject to the conditions and constraints imposed on the model. Validation A model is a good representation of a system. However, the optimal solution must work towards improving the systems performance. You can test thevalidity of a model by comparing its performance with some past dataavailable from the actual system. If under similar conditions of inputs, your model can reproduce the past performance of the system, then you can be sure that your model is valid. Implementation We need to apply the optimal solution obtained from the model to the system and note the improvement in the performance of the system. You need to validate this performance check under changing conditions.

Operations Research Techniques and Tools

The different techniques and tools used in OR are as follows: Linear programming You can use linear programming to find a solution for optimising a given objective. The objective may be to maximise profit or to minimise cost. You need to ensure that both the objective function and the constraints can be expressed as linear expressions of decision variables. You will learn about the various uses of linear programming in Unit 2. Inventory control methods The production, purchasing, and material managers are always confronted with questions, such as when to buy, how much to buy, and how much to keep in stock. The inventory model aims at optimising these inventory levels. Goal programming In linear programming, you take a single objective function and consider all other factors as constraints. However, in real life there may be a number of important objective functions. Goal programming has several objective functions, each having a target value. Programming models are developed to minimise deviations from these targets. Queuing model The queuing theory is based on the concept of probability. It indicates the capability of a given system and the changes possible in the system when you modify the system. In formulating a queuing model, you need not take into account all the constraints. There is no maximisation or minimisation of an objective function. Therefore, the application of queuing theory cannot be viewed as an optimisation process. You can use the queuing theory to estimate the required balance between customer waiting time and the service capability of the system.

Transportation model The transportation model is an important class of linear programs. The model studies the minimisation of the cost of transporting a commodity from a number of sources to several destinations.

2Q. a. Explain the steps involved in linear programming problem formulation. Discuss in

brief the advantages of linear programming. b. Alpha Limited produces & sells two different products under the brand names black & white. The profit per unit on these products in Rs. 50 & Rs. 40 respectively. Both the products employ the same manufacturing process which has a fixed total capacity of 50,000 man-hours. As per the estimates of the marketing research department of Alpha Limited, there is a market demand for maximum 8,000 units of Black & 10,000 units of white. Subject to the overall demand, the products can be sold in any possible combination. If it takes 3 hours to produce one unit of black & 2 hours to produce one unit of white, formulate the model of linear programming. 2Ans:a. Linear Programming (LP) is a mathematical technique designed to help
managers in their planning and decision-making. It is usually used in an organisation that is trying to make the most effective use of its resources. A few examples of problems in which LP has been successfully applied are: Developments of a production schedule that will satisfy future demands for a firms product and at the same time minimise total production and inventory costs. Establishment of an investment portfolio from a variety of stocks or bonds that will maximise a companys return on investment.

Mathematical Formulation of LPP

The procedure for mathematical formulation of a linear programming problem consists of the following major steps:
Procedure of mathematical formulation of a linear programming problem

Advantages of LPP
The advantages of linear programming techniques may be outlined as follows: Linear programming technique helps in making the optimum utilisation of productive resources. It also indicates how decision makers can employ productive factors most effectively by choosing and allocating these resources. The quality of decisions may also be improved by linear programming techniques. The user of this technique becomes more objective and less subjective. Linear programming technique provides practically applicable solutions because there might be other constraints operating outside the problem. These constraints must also be taken into consideration. Just because so many units must be produced does not mean that all those can be sold. So the necessary modification of its mathematical solution is required for the sake of convenience to the decision maker. In production processes, high lighting of bottlenecks is the most significant advantage of this technique. For example, when bottlenecks occur, some machines cannot meet the demand while others remain idle for some time.

2b.

3Q. a. What is degeneracy in transportation problem? How it can be resolved?

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

Distribution Centers Factories C1 C2 C3 C4 Supply F1 3 2 7 6 50 F2 7 5 2 3 60 F3 2 5 4 5 25 Requirements 60 40 20 15 3.a.Ans: Degeneracy in transportation problem 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 whenever 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 - The degeneracy develops while determining an initial assignment via any one of the initial assignment methods discussed earlier. To resolve degeneracy, you must augment the positive variables by as many zero-valued variables as is necessary to complete the required m + n 1 basic variable. These zero-valued variables are selected in such a manner that the resulting m + n 1 variable constitutes a basic solution. The selected zero valued variables are designated by allocating an extremely small positive value to each one of them. The cells containing these extremely small allocations are then treated like any other basic cells. The s are kept in the transportation table until temporary degeneracy is removed or until the optimum solution is attained, whichever occurs first. At

that point, we set each = 0. Case 2 - The degeneracy develops at the iteration stage. This happens when the selection of the entering variable results in the simultaneous drive 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 it 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. The rest of the procedure is exactly the same as discussed in case 1. Note - The extremely small value is infinitely small and it never affects the value it is added to or subtracted from. Introduce in unallocated minimum cost cell to avoid forming a loop. 3.b. F1 F2 F3 Req 3 7 2 60 2 5 5 40 0 7 2 4 20 6 3 5 15 50 10 60 25

3 7 2 60 50

7 2 4 20

6 3 5 15

10 0 60 25

7 2 50

2 4 20

3 5 15

60 25 0

7 25

2 20 0

3 15

60 40

7 25

3 15 0

40 25

7 25 0

25

=2*40+10*3+25*2+20*2+15*3+25*7=420 4Q. a. Explain the steps in Hungarian method. Differentiate between Transportation and

Assignment problem. b. Find the optimal assignment of four jobs and four machines when the cost of assignment is given by the following table:
J1 J2 J3 J4

M1 10 9 8 7 M2 3 4 5 6 M3 2 1 1 2 M4 4 3 5 6 4.Ans.a. Hungarian method algorithm is based on the concept of opportunity cost and is more

efficient in solving assignment problems. The following steps are adopted to solve an AP using the Hungarian method. Step1: Prepare row ruled matrix by selecting the minimum values for each row and subtract it from the other elements of the row. Step2: Prepare column reduced matrix by subtracting minimum value for the column from the other values of that column. Step3: Assign zero row-wise if there is only one zero in the row and cross (X) or cancel other zeros in that column Step4: Assign column wise if there is only one zero in that column and cross other zeros in that row. Step5: Repeat steps 3 and 4 till all zero 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 Step6: Mark () the unassigned rows. Look for crossed zero 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 makings are done. Step7: 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.

Step8: Examine the uncovered elements. Select the minimum. Subtract it from the uncovered elements. Add it all the point of intersection of lines. Leave the rest as is. Prepare a new table.

Step9: Repeat steps 3 to 7 till optimum assignment is obtained. Step 10: Repeat steps 5 to 7 till number of allocations = number of rows. Difference between transportation and assignment
The transportation problem is a special type of linear programming problem in which the objective is to transport a homogeneous product manufactured at several plants (origins) to a number of different destinations at a minimum total cost. The assignment problem is a special case of transportation problem, where the objective is to minimise the cost or time of completing a number of jobs by a number of persons, and to maximise revenue and sales efficiently. 4b. 5Q. Define Simulation. Explain the Simulation procedure. Discuss the use of Simulation

with an example.
5.Ans:A definition of simulation as given by Shannon: Simulation is the process of defining a model of a real system and conducting experiments with this model for the purpose of understanding the behaviour (within the limits imposed by a criterion or a set of criteria) for the operation of a system. Simulation procedure: In any simulation problem, the variables to be studied will be given with associated probabilities. The initial conditions will also be specified. You can choose random numbers from table. However, to get uniform results, the random numbers will be specified. The first step involves coding the data that is, you assign random numbers to the variable. Then you identify the relationship between the variables and run the simulation to get the results

simple example of a queuing process. A sample of 100 arrivals of customers at a retail sales depot is according to the following distribution: Samples of 100 Arrivals of Customers Time between Arrivals (min) Frequency

0.5 2 1 6 1.5 10 2 25 2.5 20 3 14 3.5 10 4 7 4.5 4 5 2 Study of the time required to service customers by adding up the bills, receiving payment, making change and placing packages in hand trucks, yields the distribution depicted below:

Frequency 0.5 12 1 21 1.5 36 2 19 2.5 7 3 5 Estimate the average percentage customer waiting time and average percentage idle time of the server by simulation for the next 10 arrivals. Solution: Step 1: Convert the frequency distributions of time between arrivals and service time to cumulative probability distributions. Step 2: Allocate random numbers 00 to 99 for each of the values of time between arrivals and service time. The range allocated to each value corresponds to the value of cumulative probability. Step 3: Using random numbers from table, sample the random time of arrival and service time for ten sets of random numbers. Step 4: Tabulate waiting time of arrivals and idle time of servers. Step 5: Estimate the percentage waiting time of arrivals and percentage idle time of servers corresponding to the ten samples. The service facility is made available at clock time zero and the server has to be idle for 3.5 minutes, when the service for first arrival starts. The service is completed at 5.0 minutes and again the server is idle for 2 minutes till the second arrival joins the system. The first three arrivals get immediate service and they dont have to wait, as the server is idle when they arrive. The fourth arrival that joins at 9.0 minutes has to wait for 0.5 minute, while the service to the third is completed. Similarly the waiting time and idle time can be computed for further arrivals. Total elapsed time = 29 minutes Waiting time of arrival = 1 minute Percentage of waiting time = ( 1 x 100) / 29 = 3.4 Idle time for server = 14.5 minutes Percentage of idle time = ( 14.5 x 100) / 29 =50% 6Q. Explain the following: a. Integer programming model b. PERT and CPM c. Operating Characteristics of a Queuing System

Service time (min)

Ans.a. The IPP is a special case of Linear Programming Problem (LPP), where all or some variables are constrained to assume non-negative integer values. In LPP, the decision variables as well as slack or surplus variables were allowed to take any real or fractional value. However, there are certain real life problems in which the fractional value of the decision variables has no significance. For example, it does not make sense saying 1.5 men working on a project or 1.6 machines in a workshop. The integer solution to a problem can, however, be obtained

by rounding off 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 this solution may not satisfy all the given constraints. Secondly, the value of the 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 (or discrete) values. An integer LP problem has important applications. Capital budgeting, construction scheduling, plant location and size, routing and shipping schedule, batch size, capacity expansion, fixed charge, etc are few problems which demonstrate the areas of application of integer programming. b. PERT and CPM PERT Some key points of PERT are as follows: PERT was developed in connection with an Research and Development (R&D) work. Therefore, it had to cope with the uncertainties that are associated with R&D activities. In PERT, the total project duration is regarded as a random variable. Therefore, associated probabilities are calculated in order to characterise it. It is an event-oriented network as in the analysis of a network, emphasis is 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. PERT is normally used for projects involving activities of non-repetitive nature in which time estimates are uncertain. It helps in pinpointing critical areas in a project, so that necessary adjustment can be made to meet the scheduled completion date of the project. CPM CPM was developed in connection with a construction project, which consisted of routine tasks whose resource requirements and duration were known with certainty. Therefore, it is basically deterministic. CPM is suitable for establishing a trade-off for optimum balancing between schedule time and cost of the project. 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: Queue length: The number of customers in the waiting line reflects one of the two conditions. Short queues could mean either good customer service or too much capacity. Similarly, long queues could indicate either low server efficiency or the need to increase capacity Number of customers in system: The number of customers in queue

and also those being served in the queue relates to the service efficiency and capacity. Large values imply congestion, potential customer dissatisfaction and a need for more capacity. Waiting time in queue: Long lines do not reflect long waiting times if the service rate is fast. However, when waiting time seems long to customers, they perceive that the quality of service is poor. Long waiting times may indicate a need to adjust the service rate of the system or change the arrival rate of customers. Waiting time in system: The total elapsed time from entry into the system until exit from the system may indicate problems with customers, server efficiency or capacity. If some customers are spending too much time in the service system, there may be a need to change the priority discipline, increase productivity or adjust capacity in some way. Service facility utilisation: The collective utilisation of the service facilities reflects the percentage of time the facilities are busy. Management is interested in maintaining high utilisation but this objective may adversely impact the other operating characteristic.