Mba Operations Research

ReferenceBooks:
1. Operations Research an introduction IV Education Homdy A. Taha Macmillan Publishing

Company.
2. OperationsresearchtheoryandapplicationsJ.K.SharmaMacmillanIndiaLtd.
3. Problems in operations Research (Methods and Solutions) P. K. Gupta, Manmohan Sultan
ChandandSonsPublishers.
4 4. . T Th he eo or ry ya an nd dP Pr ro ob bl le em ms so of fO Op pe er ra at ti io on ns sR Re es se ea ar rc ch h R Ri ic ch ha ar rd dB Br ro on ns so oo on n S Sc ch ha au um m s sO Ou ut tl li in ne eS Se er ri ie es s
OPERATIONSRESEARCH
Subjectcode:MB0032
Contents
Unit1
IntroductiontoOR 1
Unit2
LinearProgrammingProblem 15
Unit3
SimplexMethod 39
Unit4
DualityinL.P.P 63
Unit5
TransportationProblem 77
Unit6
AssignmentProblem 98
Unit7
IntegerProgramming 112
Unit8
InfiniteQueuingModels 127
Edition:Fall2008
Contents
Unit9
FiniteQueuingModels 153
Unit10
Simulation 160
Unit11
ProjectSchedulingandPERTCPM 181
Unit12
GameTheory 199
Edition:Fall2008
BKIDB0661
Dr.K.Jayakumar
ViceChancellor
SikkimManipalUniversityofHealth,Medical,andTechnologicalsciences
Prof.NandagopalV.B.
DirectorandDean
SikkimManipalUniversityofHealth,Medical,and Technologicalsciences.
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Prof.ManipalUniversalLearning
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Asst.Prof.SikkimManipalUniversityofHealth,
MedicalandTechnologicalstudies.
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WiproTechnologiesLimited,Bangalore
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SenorManagerHR
MicrosoftIndiacorporation( Pvt)limited
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Chief FinancialOfficer
InfosysBPO,Bangalore
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Director,HR,FidelityMutualFund
ContentPreparationTeam PeerReviewBy
1.Prof.S.Santhanam,Faculty, Prof.K.C.S.Rao
MPBirlaInstituteofManagement Chairman,MBA(BT)
2.Mrs.SharadaRudramurthy,VisitingFaculty,SIETSchoolofManagementStudies
PondicherryUniversity,Pondicherry.
Edition:Fall2008
Thisbookisadistanceeducationmodulecomprisingofcollectionoflearningmaterialforourstudents.
Allrightsreserved.Nopartofthisworkmaybereproducedinanyformbyanymeanswithoutpermission
in writing from Sikkim Manipal University of Health, Medical and Technological Sciences, Gangtok,
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Printed and Published on behalf of Sikkim Manipal University of Health, Medical and Technological
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INTRODUCTION
OperationsResearchisanimportantcourseofstudyforamanagementstudent.Itisabranch
of applied mathematics and has diverse applications. This subject essentially deals with
problemsofchoicesandoptimizationofresourceutilization.
Thiscoursewarecomprises12units:
Unit1: Introduction
Definition,Scope,LimitationsofOR.
Unit2: LinearProgrammingProblem
Formulation&GraphicalSolutiontoL.P.P.
Unit3: SimplexMethod
SolutionbySimplexmethodtoL.P.P.
Unit4: DualityinL.P.P
Theeconomicinterpretationsofthefinalsimplextable.
Unit5: TransportationProblem
DistributionofResourcesthroughTransportationAlgorithm.
Unit6: AssignmentProblem
AllocationofResourcesthroughAssignmentAlgorithm.
Unit7: IntegerProgramming
MethodofSolvingL.P.Pforintegervalues.
Unit8: InfiniteQueuingModels
ThestudyofwaitinglineproblemsforinfiniteQueue.
Unit9: FiniteQueuingModels
ThestudyofwaitinglineproblemsforfiniteQueue.
Unit10: Simulation
NontechnicalmethodofdealingwithcomplexproblemsthroughSimulation.
Unit11: ProjectScheduling&PERTCPM
MethodsavailableforPlanning,Scheduling&MonitoringofProjects.
Unit12: GameTheory
DealswithcompetitivesituationsthroughGamesTheory.
OperationsResearch Unit1
SikkimManipalUniversity
1
Unit1 IntroductionToOR
Structure
1.1. Introduction
1.2 HistoricalBackground
1.3. ScopeofoperationResearch
1.4. ImportantFeaturesofOR
1.5. PhasesofOR
1.6. TypesofORModels
1.5.1AbroadclassificationofORmodels
1.7. MethodologyofOR
1.7.1Definitionoftheproblem
1.7.2Constructionofthemodel
1.7.3Solutionofthemodel
1.7.4Validationthemodel
1.7.5Implementationofthefinalresult
1.8. TechniquesorToolsofOR
1.9. ThestructureofMathematicalModel
1.9.1 Decisionvariablesandparameters
1.9.2 Objectivefunctions
1.9.3 Constraints
1.9.4 DietProblem
1.10. LimitationsofOR
1.11. Summary
TerminalQuestions
AnswersofSAQs&TQs
1.1Introduction
Optimization is the act of obtaining the best result under any given circumstance. In various
practical problems we may have to take many technical or managerial decisions at several
2
stages. The ultimate goal of all such decisions is to either maximize the desired benefit or
minimizetheeffortrequired.Wemakedecisionsinoureverydaylifewithoutevennoticingthem.
Decisionmaking is one of the main activity of a manager or executive. In simple situations
decisionsaretaken simply by common sense, soundjudgment andexpertise without usingany
mathematics. But here the decisions we are concerned with are rather complex and heavily
loaded with responsibility. Examples of such decision are finding the appropriate product mix
when there are large numbers of products with different profit contributions and productional
requirementorplanningpublictransportationnetworkinatownhavingitsownlayoutoffactories,
apartments,blocksetc.Certainlyinsuchsituationsalsodecisionmaybearrivedatintuitivelyfrom
experience and common sense, yet they are more judicious if backed up by mathematical
reasoning.Thesearchofadecisionmayalsobedonebytrialanderrorbutsucha searchmay
becumbersomeandcostly.Preparativecalculationsmayavoidlongandcostlyresearch.Doing
preparative calculations is the purpose of Operations research. Operations research does
mathematical scoring of consequences of adecision with the aim of optimizingthe use oftime,
effortsandresourcesandavoidingblunders.
Learning Objectives:
Afterstudyingthisunit,youshouldbeabletounderstandthefollowing.
1. KnowthesignificantfeaturesinO.R.
2. UnderstandtheMethodologyofO.R.
3. DefinethestructureofamathematicalmodelinO.R.
4. KnowthesignificanceoftheObjectivefunction
1.2HistoricalBackground
During Second World War in United Kingdom a team of scientists from different disciplines
studied the strategic and tactical problems associated with air andland defence of the country.
Theirobjectivewastodeterminethemosteffectiveutilizationoflimitedmilitaryresourcestowin
the battle andthe techniquethey developed was namedas Operations research. After the war,
Operations research techniques rapidly developed in the fields of industrial, academic and
governmentorganizations.
Theapplication of Operations research methodshelpsin makingdecisionsin suchcomplicated
situations. Evidently the main objective of Operations research is to provide a scientific
basistothedecisionmakersforsolvingtheproblemsinvolvingtheinteractionofvarious
componentsoforganization,byemployingateamofscientistsfromdifferentdisciplines,
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all working together for finding a solution which is the best in the interest of the
organizationasawhole.Thesolutionthusobtainedisknownasoptimaldecision.
DefinitionofOperationsResearch:Churchman,AckoffandAruoffhavedefined Operations
research as the application of scientific methods, techniques and tools to operation of a
system with optimum solutions to the problems. Here Optimum implies the one, which is
bestof all possible alternatives. Another definition is that, Operations research is theuse of
scientific methods to provide criteria for decisions regarding man, machine, systems
involvingrepetitiveoperations.Thisdefinitionismoregeneralandcomprehensiveandseems
tobemoreexhaustivethanthepreviousdefinition.
SelfAssessmentQuestions1
1. ThemainobjectiveofO.Ristoprovidea_______________tothedecisionmakers.
2. O.Remploysateam_________from___________________
1.3ScopeofOperationsResearch(OR)
In general, whenever there is any problem simple or complicated, the OR techniques may be
appliedtofindthebestsolution.InthissectionweshalltrytofindthescopeofORbyseeingits
applicationinvariousfieldsofeverydaylife.
i) In Defence Operations: In modern warfare the defence operations are carried out by a
numberofindependentcomponentsnamelyAirForce,ArmyandNavy.Theactivitiesineach
of these components can be further divided in four subcomponents viz.: administration,
intelligence, operations and training, and supply. The application of modern warfare
techniquesineachofthecomponentsofmilitaryorganizationsrequiresexpertiseknowledge
in respective fields. Further more, each component works to drive maximum gains from its
operations and there is always a possibility that strategy beneficial to one component may
have anadverse effect on theother. Thus in defence operations there is anecessity to co
ordinate the activities of various components which gives maximum benefit to the
organization as a whole, having maximum use of the individual components. The final
strategy is formulated by a team of scientists drawn from various disciplines who study the
strategies of different components and after appropriate analysis of the various courses of
actions,thebestcourseofaction,knownasoptimumstrategy,ischosen.
ii) In Industry: The system of modern industries are so complex that the optimum point of
operation in its various components cannot be intuitively judged by an individual. The
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businessenvironmentisalwayschangingandanydecisionusefulatonetimemaynotbeso
good some time later. There is always a need to check the validity of decisions continually,
against the situations. The industrial revolution with increased division of labour and
introductionof management responsibilities hasmadeeach componentanindependentunit
havingtheirowngoals.Forexample:Productiondepartmentminimizecostofproductionbut
maximizes output. Marketing department maximizes outputbut minimizes costofunit sales.
Finance department tries to optimize capital investment and personneldepartment appoints
goodpeopleatminimumcost.Thuseachdepartmentplantheirownobjectivesandallthese
objectivesofvariousdepartmentorcomponentscometoconflictwitheachotherandmaynot
conformtotheoverallobjectivesoftheorganization.TheapplicationofORtechniqueshelps
inovercoming thisdifficulty by integrating the diversifiedactivities ofvarious components so
astoservetheinterestoftheorganizationasawholeefficiently.
OR methods in industry can be applied in the fields of production, inventory controls and
marketing,purchasing,transportationandcompetitivestrategiesetc.
iii) Planning: In modern times it has become necessary for every government to have careful
planning,foreconomicdevelopmentofthecountry.ORtechniquescanbefruitfullyappliedto
maximizethepercapitaincome,withminimumsacrificeandtime.Agovernmentcanthususe
ORforframingfutureeconomicandsocialpolicies.
iv) Agriculture: With increase in population there is a need to increase agriculture output. But
this cannot be done arbitrarily. There are a number of restrictions under which agricultural
productionistobestudied.Thereforethereisaneedtodetermineacourseofaction,which
servesthebestunderthegivenrestrictions.Theproblemcanbesolvedbytheapplicationof
ORtechniques.
v) In Hospitals: The OR methods can be used to solve waiting problems in outpatient
departmentofbighospitals.Theadministrativeproblemsofhospitalorganizationcanalsobe
solvedbyORtechniques.
vi) In Transport: Different OR methods can be applied to regulate the arrival of trains and
processing times, minimize the passengers waiting time and reduce congestion, formulate
suitabletransportationpolicy,reducingthecostsandtimeoftransshipment.
vii) ResearchandDevelopment:ControlofRandDprojects,productintroductionplanningetc.
andmanymoreapplications.
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1. MentiontwousesofO.R
2. How isitusedinhospital.
1.4 ImportantfeaturesofORare:
i. ItisSystemoriented:ORstudiestheproblemfromoverallpointofviewoforganizationsor
situationssinceoptimumresultofonepartofthesystemmaynotbeoptimumforsomeother
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
scientificandmanagerialcadreformateamtosolvetheproblem.
iii. ItmakesuseofScientificmethodstosolveproblems.
iv. ORincreasestheeffectivenessofamanagement Decisionmakingability.
v. Itmakesuseofcomputertosolvelargeandcomplexproblems.
vi. ItgivesQuantitativesolution.
vii. Itconsidersthehumanfactorsalso.
1. O.R________interdisciplinaryapproach.
2. ORincreasestheeffectivenessof________ability.
1.5 PhasesofOperationsResearch
ThescientificmethodinORstudygenerallyinvolvesthefollowingthreephases:
i) JudgmentPhase:Thisphaseconsistsof
a) Determinationoftheoperation.
b) Establishmentoftheobjectivesandvaluesrelatedtotheoperation.
c) Determinationofthesuitablemeasuresofeffectivenessand
d) Formulationoftheproblemsrelativetotheobjectives.
ii) ResearchPhase:Thisphaseutilizes
a) Operationsanddatacollectionforabetterunderstandingoftheproblems.
b) Formulationofhypothesisandmodel.
c) Observationandexperimentationtotestthehypothesisonthebasisofadditionaldata.
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d) Analysis ofthe availableinformation andverificationof thehypothesis usingpreestablished
measureofeffectiveness.
e) Predictionofvariousresultsandconsiderationofalternativemethods.
iii) Action Phase: It consists of making recommendations for the decision process by those
whofirstposedtheproblemforconsiderationorbyanyoneinapositiontomakeadecision,
influencingtheoperationinwhichtheproblemisoccurred.
StateTrue/False
1. O.Rgivesqualitativesolution.
2. OneofO.RphasesisActionphase
1.6TypesofoperationResearchModels
Amodelisarepresentationofthereality.Itisanidealizedrepresentationorabstractionofareal
lifesystem.Theobjectiveofthemodelistoidentifysignificantfactorsandtheirinterrelationship.
A model is helpfulin decision making asit provides a simplified description of complexities and
uncertaintiesofaprobleminlogicalstructure.Majoradvantageofmodelsisitdoesnotinterfere
withrealsystem.
1.6.1.AbroadclassificationofORmodels
a)PhysicalModel b)Mathematicalorsymbolicmodel c) Models by nature of Environment
and d)Modelsbytheextentofgenerality.
a. PhysicalModesincludeallformofdiagrams,graphsandcharts.Theyaredesignedtodeal
withspecificproblems.Theybringoutsignificantfactorsandinterrelationshipinpictorialfirm
soastofacilitateanalysis.Therearetwotypesi)Iconicmodelsandii)Analogmodels.
Iconicmodelisanimageofanobjectorsystem,representedonasmallscale.Thesemodels
cansimulatetheactualperformanceofaproduct.
Analog models are small physical systems that has similar characteristics and work l
ikeanobjectsitrepresentsEg:Toy
b. MathematicalModelorsymbolicmodelsemployasetofmathematicalsymbolstorepresent
the decision variable of the system. The variables are related by mathematical system Eg:
Allocation,sequencing,replacementmodelsetc.
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c. BynatureofEnvironment
We have i) Deterministic model in which every thingisdefinedandthe resultsare certain.
Eg:EOQmodel ii) Probabilistic Models in which the input and output variables follow a
probabilitydistributionEg:GamesTheory.
d. BytheextentofGenerality:Thetwomodelsbelongingtothisclassarei)Generalmodels
canbeappliedingeneralanddoesnotpertaintooneproblemonly.Eg:Linearprogramming
ii) Specific Model is applicable under specific condition only. Eg: Sales response curve or
equationasafunctionofadvertisingisapplicableinthemarketingfunctionalone.
StateTrue/False
1. Diagrambelongstophysicalmodel
2. Allocationproblemsarerepresentedbyiconicmodel.
1.7 MethodologyofOperationsResearch
Thebasicdominantcharacteristicfeatureofoperationsresearchisthatitemploysmathematical
representationsormodeltoanalyzeproblems.Thisdistinctiveapproachrepresentsanadaptation
of the scientific methodology used by the physical sciences. The scientific method translates a
realgivenproblemintoamathematicalrepresentationwhichissolvedandretransformedintothe
originalcontext.TheORapproachtoproblemsolvingconsistsofthefollowingsteps:
1. Definitionoftheproblem.
2. Constructionofthemodel.
3. Solutionofthemodel.
4. Validationofthemodel.
5. Implementationofthefinalresult.
1.7.1Definitionoftheproblem
The first and the most important requirement is that the root problem should be identified and
understood. Theproblemshouldbeidentifiedproperly,thisindicatesthreemajoraspects:(1)a
descriptionofthegoalortheobjectiveofthestudy,(2)anidentificationofthedecisionalternative
to the system, and (3) a recognition of the limitations, restrictions and requirements of the
system.
8
1.7.2Constructionofthemodel
Dependingonthedefinitionoftheproblem,theoperationsresearchteamshoulddecideonthe
most suitable model for representing the system. Such a model should specify quantitative
expressionsfortheobjectiveandtheconstraintsoftheproblemintermsofitsdecisionvariables.
A model gives a perspective picture of the whole problem and helps tackling it in a well
organized manner. If the resulting model fits into one of the common mathematical models, a
convenient solution may be obtained by using mathematical techniques. If the mathematical
relationshipsofthemodelaretoocomplextoallowanalyticsolutions,asimulationmodelmaybe
more appropriate. There are various types of models which can be constructed under different
conditions.
1.7.3Solutionofthemodel
Once an appropriate model has been formulated, the next stage in the analysis calls for its
solutionandtheinterpretationofthesolutioninthecontextofthegivenproblem.Asolutiontoa
modelimpliesdetermination ofa specific setofdecisionvariables that would yieldan Optimum
solution. An Optimum solution is one which maximize or minimize the performance of any
measureinamodelsubjecttotheconditionsandconstraintsimposedonthemodel.
1.7.4Validationthemodel
A model is a good representative of a system, then the Optimal solution must improve the
systems performance. A common method for testing the validity of a model is to compare its
performancewithsomepastdataavailablefortheactualsystem.Themodelwillbevalidifunder
similar conditions of inputs, it can reproduce the past performance of the system. The problem
here is that there is no assurance that future performance will continue to duplicate past
behaviour. Also, since the model is based on careful examination of past data, the comparison
should always reveal favorable results. In some instances this problem may be overcome by
using data from trial runs of the system. It must be noted that such a validation method is not
appropriatefornonexistentsystems,sincedatawillnotbeavailableforcomparison.
1.7.5Implementationofthefinalresult
The optimal solution obtained from a model should be applied practice to improve the
performance of the system and the validity of the solution should be verified under changing
conditions.Itinvolvesthetranslationoftheseresultsintodetailedoperatinginstructionsissuedin
an understandable form to the individuals who will administer and operate the recommended
system. Theinteraction between the operations research teamand the operating personnel will
reachitspeakinthisphase.
9
1.8.TechniquesorToolsofOR
1. LinearProgramming:
Itisusedtofindasolutionforoptimizingagivenobjective.Objectivesmaybeto maximize
profit or minimize cost. Both objective function and constraints must be capable of being
expressedaslinearexpressionofdecisionvariables.ItsvarioususewillbeseeninChapter
2.
2. InventorycontrolMethods:
The production, purchasing and material managers are always confronted with question of
when to buy, how much to buy and how much to keep in stock. Inventory models aims at
optimizinginventorylevels.
3. GoalProgramming
Single objective function is taken in the linear programming and all other factors are
consideredasconstraints,butinactualpracticetheremaybenumberofimportantobjective
functions.Goalprogramminghasseveralobjectivefunctions,eachhavingatargetvalueand
programmemodelsaredevelopedtominimizedeviationfromthesetargets.
4. The tools, namely, queuing model, sequence model, transportation and assignment model,
networkanalysisarediscussedindetailinlaterchapters.
StateTrue/False
1. O.Rmethodologyconsistsofdefinition,solutionandvalidationonly.
2. The interaction between O.R team and Management reaches peak level in implementation
phase.
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1.9TheStructureofMathematicalModel
Many industrial and business situations are concerned with planning activities. In each case of
planning,therearelimitedsources,suchasmen,machines,materialandcapitalatthedisposal
oftheplanner.Onehastomake decisionregardingtheseresourcesinordertoeithermaximize
production, or minimize the cost of production or maximize the profit etc. These problems are
referred to as the problems of constrained optimization. Linear programming is a technique for
determining an optimal schedule of interdependent activities, for the given resources.
Programming thus means planning and refers to the process of decisionmaking regarding
particularplanofactionamongstseveralavailablealternatives.
Anybusinessactivityofproductionactivitytobeformulatedasamathematicalmodelcanbestbe
discussedthroughitsconstituentstheyare:
- DecisionVariables,
- Objectivefunction,
- Constraints.
1.9.1Decisionvariablesandparameters
The decision variables are the unknowns to be determined from the solution of the model. The
parametersrepresentthecontrolledvariablesofthesystem.
1.9.2Objectivefunctions
Thisdefinesthemeasureofeffectivenessofthesystemasamathematicalfunctionofitsdecision
variables. The optimal solution to the model is obtained when the corresponding values of the
decision variable yield the best value of the objective function while satisfying all constraints.
Thustheobjectivefunctionactsasanindicatorfortheachievementoftheoptimalsolution.
While formulating a problem the desire of the decisionmaker is expressed as a function of n
decisionvariables.Thisfunctionisessentiallyalinearprogrammingproblem(i.e.,eachofitsitem
willhaveonlyonevariableraisetopowerone).SomeoftheObjectivefunctionsinpracticeare:
- Maximizationofcontributionorprofit
- Minimizationofcost
- Maximizationofproductionrateorminimizationofproductiontime
- Minimizationoflabourturnover
- Minimizationofovertime
- Maximizationofresourceutilization
- Minimizationofrisktoenvironmentorfactoryetc.
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1.9.3Constraints
To accountfor the physicallimitations ofthe system, the model must include constraints, which
limitthedecisionvariablestotheirfeasiblerangeorpermissiblevalues.Theseareexpressedin
theformofconstrainingmathematicalfunctions.
Forexample,inchemicalindustries,restrictionscomefromthegovernmentaboutthrowinggases
in the environment. Restrictions from sales department about the marketability of someproducts
are also treated as constraints. A linear programming problem then has a set of constraints in
practice.
The mathematical models in OR may be viewed generally as determining the values of the
decisionvariablesx
J
,J=1,2,3,n,whichwilloptimizeZ=f(x
1
,x
2
,x
n
).
Subjecttotheconstraints:
g
i
(x
1
,x
2
x
n
) ~ b
i
,i=1,2,m
andx
J
0j=1,2,3nwhere ~ is , or=.
Thefunctionfiscalledtheobjectivefunction,whereXj ~ b
i
,representthei
th
constraintfori=
1,2,3mwhereb
i
isaknownconstant.Theconstraintsx
j
0arecalledthenonnegativity
condition,whichrestrictthevariablestozeroorpositivevaluesonly.
1.9.4DietProblem
Formulatethemathematicalmodelforthefollowing:
VitaminAand VitaminB arefoundinfood1 and food2. One unitoffood1 contains 5
unitsofvitaminAand2unitsofvitaminB.Oneunitoffood2contains6unitsofvitamin
Aand3unitsofvitaminB.Theminimumdailyrequirementofapersonis60unitsofvitamin
Aand80unitsofVitaminB.Thecostperoneunitoffood1isRs.5/andoneunitoffood
2isRs.6/.Assumethatanyexcessunitsofvitaminsarenotharmful.Findtheminimumcostof
themixture(offood1andfood2)whichmeetsthedailyminimumrequirementsofvitamins.
MathematicalModeloftheDietProblem:Supposex
1
=thenumberofunitsoffood1inthemixture,
x
2
=thenumberofunitsoffood2inthemixture.
NowweformulatetheconstraintrelatedtovitaminA.Sinceeachunitoffood1contains5units
ofvitaminA,wehavethatx
1
unitsoffood1contains5x
1
unitsofvitaminA.Sinceeachunit
offood2contains6unitsofvitaminA,wehavethatx
2
2
unitsof
vitaminA. Therefore the mixture contains 5x
1
+ 6x
2
units of vitaminA. Since the minimum
12
requirement of vitaminA is 60 units, we have that
5x
1
+6x
2
60.
Now we formulate the constraint related to vitaminB. Since each unit of food1 contains 2
unitsofvitaminBwehavethatx
1
1
unitsofvitaminB.Sinceeach
unitoffood2contains3unitsofvitaminB,wehavethatx
2
2
units
of vitaminB. Therefore the mixture contains 2x
1
+ 3x
2
units of vitaminB. Since the
minimum requirement of vitaminB is 80 units, we have that
2x
2
+3x
2
80.
Nextweformulatethecostfunction.Giventhatthecostofoneunitoffood1isR's.5/andone
unit of food2 is R's. 6/. Therefore x
1
units of food1 costs Rs. 5x
1,
and x
2
units of food2
costsRs.6x
2
.ThereforethecostofthemixtureisgivenbyCost=5x
1
+6x
2
.Ifwewritezforthe
costfunction,thenwehavez =5x
1
+6x
2.
Sincecostistobeminimized,wewriteminz =5x
1
+
6x
2.
Since the number of units (x
1
or x
2
) are always nonnegative we have that
x
1
0, x
2
0.Thereforethemathematicalmodelis
5x
1
+6x
2
60
2x
1
+3x
2
80
x
1
0,x
2
0,minz =5x
1
+6x
2.
1.10 limitationsofOR
Thelimitationsaremorerelatedtotheproblemsofmodelbuilding,timeandmoneyfactors.
i) Magnitudeofcomputation: Modernprobleminvolvelargenumberofvariablesandhenceto
findinterrelationship,amongmakesitdifficult.
ii) NonquantitativefactorsandHumanemotionalfactorcannotbetakenintoaccount.
iii) Thereisawidegapbetweenthemanagersandtheoperationresearches
iv) Time and Money factors when the basic data is subjected to frequent changes then
incorporationofthemintoORmodelsisacostlyaffair.
v) Implementationofdecisionsinvolveshumanrelationsandbehaviour.
Fillintheblanks
i. ORimbibes_________teamapproach
ii. Linearprogrammingistoolof_______
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iii. ThethreephasesofORare________
iv. TosolveanyproblemthroughORapproachthefirststepis_______
v. _________representsareallifesystem
vi. _________representsthecontrolledvariablesofthesystem.
1.11.Summary
TheORapproachneedstobeequallydevelopedinvariousagriculturalproblemsonaregionalor
international basis. With the explosion of population and consequent shortage of food, every
country faces the problem of optimum allocation of land in various crops in accordance with
climate conditions and available facilities. The problem of optimal distribution of water from a
resourcelikeareservoirforirrigationpurposesisfacedbyeachdevelopingcountry,andagood
amountofscientificworkcanbedoneinthisdirection.
TerminalQuestions
1. DefineOR
2. WhatarethecharacteristicfeaturesofOR?
3. WhatisamodelinOR?DiscussdifferentmodelsavailableinOR
4. WriteshortnotesaredifferentphasesorOR
5. WhatarethelimitationsofOR
AnswerstoSelfAssessmentQuestions
1. Scientificbasis
2. Scientists,different,disciplines
1. Industry,Planning
2. Tosolvewaitingproblems
1. Imbibes
2. Decisionmaking
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1.True 2.True
1.True 2.False
1.False 2.False
1. Interdisciplinary
2. OR
3. Judgmentphase,ResearchphaseandActionphase
4. Definetheproblem
5. Model
6. Parameters.
AnswerforTerminalQuestions
1.Ref:See1.1.1
2.Ref:See1.3
3.Ref:See1.5
4.RefSee:1.4
5.Ref:See1.9
15
Unit2 LinearProgramming
Structure
2.1 Introduction
2.2. Requirements
2.2.1BasicassumptionsofL.P.P
2.3. LinearProgramming
2.3.1Canonicalforms
2.3.2Examplesofalinearprogrammingproblem
2.4. Graphicalanalysis
2.4.1Somebasicdefinitions
2.5 GraphicalMethodstosolveL.P.P
2.5.1 WorkingRule:
2.5.2 Examples6formixedconstraintsLPproblem
2.5.3 Examples9forUnboundedSolution
2.5.4 Examples10forInconsistent:
2.5.5 Examples11forredundantConstraint:
2.6. Summary
TerminalQuestions
AnswerstoSAQstoTQs
2.1 Introduction
One of the most important problems in management decision is to allocate limited and scarce
resourceamongcompetingagenciesinthebestpossiblemanner.Resourcesmayrepresentman,
money, machine, time, technology on space. The task of the management is to derive the best
possible output (or set of outputs) under given restraints on resources. The output may be
measured in the form of profits, costs, social welfare, effectiveness, etc. In many situations the
output (or the set of outputs) can be expressed as a linear relationship among a number of
variables.Theamountofavailableresourcescanalsobeexpressedasalinearrelationshipamong
somesystemvariables.Themanagementproblemmaybetooptimize(maximizeorminimize)the
outputortheobjectivefunctionsubjecttothesetofconstraintsAnoptimizationprobleminwhich
16
boththeobjectivefunctionandtheconstraintsarerepresentedbylinearformsisaprobleminlinear
programming.
LearningObjectives:
Afterstudyingthisunit,youshouldbeabletounderstandthefollowing
1. FormulatetheLPPandobservethefeasibleregion.
2. GraphicallyanalyzeandsolveaL.P.P.
2.2RequirementsofL.P.P
i. Decisionsvariablesandtheirrelationship
ii. Welldefinedobjectivefunction
iii. Existenceofalternativecoursesofaction
iv. Nonnegativeconditionsondecisionvariables.
2.2.1 BasicassumptionsofL.P.P
1.Linearity:Bothobjectivefunctionandconstraintsmustbeexpressedaslinearinequalities.
2.Deterministic:Allcoefficientofdecisionvariablesintheobjectiveandconstraintsexpressions
shouldbeknownandfinite.
3.Additivity:Thevalueofobjectivefunctionforthegivenvaluesofdecisionvariablesandthe
totalsumofresourcesused,mustbeequaltosumofthecontributionsearnedfromeach
decisionvariableandthesumofresourcesusedbydecisionvariablesrespectively.
4.Divisibility:Thesolutionofdecisionvariablesandresourcescanbeanynonnegativevalues
includingfractions.
Fillintheblanks
1. Bothobjectivefunctionandconstraintsareexpressedin_________forms.
2. L.P.Prequiresexistenceof____________________________________.
3. Solutionofdecisionvariablescanalsobe___________
2.3 LinearProgramming
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
17
mean either to maximize or minimize the objective functions. The general linear programming
modelisusuallydefinedasfollows:
MaximizeorMinimize
Z=c
1
x
1
+c
2
x
2
++c
n
x
n
subjecttotheconstraints,
a
11
x
1
+a
12
x
2
++a
1n
x
n
~ b
1
a
21
x
1
+a
22
x
2
++a
2n
x
n
~ b
2
a
m1
x
1
+a
m2
x
2
++a
mn
x
n
~ b
m
and x
1
0,x
2
0, x
n
0.
Where c
j
, b
i
and a
ij
(i = 1, 2, 3, .. m, j = 1, 2, 3 n) are constants determined from the
technologyof theproblemandx
j
(j=1,2,3 n)arethedecision variables.Here ~ iseither
(less than), (greater than) or = (equal). Note that, in terms of the above formulation the
coefficientc
j
,a
ij
,b
j
areinterpretedphysicallyasfollows.Ifb
i
istheavailableamountofresources
i,wherea
ij
istheamountofresourcei,thatmustbeallocatedtoeachunitofactivityj,theworth
perunitofactivityisequaltoc
j
.
2.3.1Canonicalforms:
ThegeneralLinearProgrammingProblem(LPP)definedabovecanalwaysbeputinthefollowing
formwhichiscalledasthecanonicalform:
Maximise Z=c
1
x
1
+c
2
x
2
++c
n
x
n
Subjectto
a
11
x
1
+a
12
x
2
++a
1n
x
n
b
1
a
21
x
1
+a
22
x
2
++a
2n
x
n
b
2
a
m1
x
1
+a
m2
x
2
++a
mn
x
n
b
m
x
1
,x
2
,x
3
,x
n
0.
Thecharacteristicsofthisformare:
1) alldecisionvariablesarenonnegative.
2) allconstraintsareof type.
18
3) theobjectivefunctionisofthemaximizationtype.
AnyLPPcanbeputinthecannonicalformbytheuseoffiveelementarytransformations:
1. The minimization of a function is mathematically equivalent to the maximization of the
negative expression of this function. That is, Minimize Z = c
1
x
1
+ c
2
x
2
+ . + c
n
x
n
is
equivalentto
MaximizeZ=c
1
x
1
c
2
x
2
c
n
x
n
.
2. Any inequality in one direction ( or ) may be changed to an inequality in the opposite
direction( or )bymultiplyingbothsidesoftheinequalityby 1.
Forexample2x
1
+3x
2
5isequivalentto2x
1
3x
2
5.
3. Anequationcanbereplacedbytwoinequalitiesinoppositedirection.Forexample,2x
1
+3x
2
=
5canbewrittenas2x
1
+3x
2
5and2x
1
+3x
2
5or2x
1
+3x
2
5and2x
1
3x
2
5.
4. Aninequality constraint with its lefthand sideintheabsoluteform can be changed into two
regularinequalities.Forexample:|2x
1
+3x
2
| 5isequivalentto2x
1
+3x
2
5and2x
1
+3x
2
5
or 2x
1
3x
2
5.
5. The variable which is unconstrained in sign (i.e., 0, 0 or zero) is equivalent to the
differencebetween2nonnegativevariables.Forexample,ifxisunconstrainedinsignthenx
=(x
+
x
)wherex
+
0, x

0.
2.3.2ExamplesOfALinearProgrammingProblem:
Example1:Afirmengagedinproducing2 models,viz.,Model AandModelB,performsonly3
operationspainting,assemblyandtesting.Therelevantdataareasfollows:
UnitSalePrice
Hoursrequiredforeachunit
Assembly Painting Testing
ModelARs.50.00
ModelBRs.80.00
1.0
1.5
0.2
0.2
0.0
0.1
Totalnumberofhoursavailableeachweekareasunderassembly600,painting100,testing30.
Thefirmwishestodeterminetheweeklyproductmixsoastomaximizerevenue.
Solution:Letusfirstwritethenotationsasunder:
Z : Totalrevenue
x
1
: NumberofUnitsofModelA
x
2
: NumberofUnitsofModelB
X
1
,X
2
:Areknownasdecisionvariables
b
1
: Weeklyhoursavailableforassembly
19
b
2
: Weeklyhoursavailableforpainting
b
3
: Weeklyhoursavailablefortesting.
Since the objective (goal) of the firm is to maximize its revenue, the model can be stated as
follows:
Theobjectivefunction,Z=50x
1
+80x
2
istobemaximizedsubjecttotheconstraints
1.0 x
1
+1.5x
2
600,(Assemblyconstraints)
0.2x
1
+0.2x
2
100,(Paintingconstaints)
0.0 x
1
+0.1x
2
30,(Testingconstraints)
and
x
1
0,x
2
0,TheNonnegativityconditions.
Example2:AmilkdistributorsuppliermilkinbottlestohousesinthreeareasA,B,Cinacity.His
deliverychargesperbottleis30paiseinareaA,40paiseinareaBand50paiseinareaC. He
hastospendonanaverage,1minutetosupplyonebottleinareaA,2minutesperbottleinarea
B and 3 minutes per bottle in area C. He can spare only 2 hours 30 minutes for this milk
distribution but not more than one hour 30 minutes for area A and B together. The maximum
numberofbottleshecandeliveris120.Findthenumberofbottlesthathehastosupplyineach
areasoastoearnthemaximum.Constructamathematicalmodel.
Solution:Thedecisionvariablesofthemodelcanbedefinedasfollows:
x
1
: NumberofbottlesofmilkwhichthedistributorsuppliesinAreaA.
x
2
: NumberofbottlesofmilkwhichthedistributorsuppliesinAreaB.
x
3
: NumberofbottlesofmilkwhichthedistributorsuppliesinAreaC.
Theobjective:
MaximizeZ=
3 2 1
x
100
50
x
100
40
x
100
30
+ + inrupees.
constraints:
1. Maximumnumberofmilkbottlesis120,thatisx
1
+x
2
+x
3
120.
2. Since he requires one minute per bottle in area A, 2 minutes per bottle in area B and 3
minutesperbottleinareaCandhecannotspendmorethan150minutesforthework,
1.x
1
+2.x
2
+3.x
3
150.
3. Further,sincehecannotspendmorethan90minutesforareasAandB.1.x
1
+2.x
2
90.
4. Nonnegativityx
1
0,x
2
0.
TheproblemcannowbestatedinthestandardL.P.formis
20
MaximizeZ=0.3x
1
+0.4x
2
+0.5x
3
Subjectto
x
1
+x
2
+x
3
120
x
1
+2x
2
+3x
3
150
x
1
+2x
2
90
and
x
1
0,x
2
0.
Example 3: An oil company has two units A and B which produce three different grades of oil
superfine,mediumandlowgradeoil.Thecompanyhastosupply12,8,24barrelsofsuperfine,
medium andlow gradeoils respectively per week. It costs the company Rs. 1,000and Rs. 800
perdaytoruntheunitsAand Brespectively.OnadayUnitAproduces6,2and4barrelsand
the unit B produces 2, 2 and 12 barrels of super fine, medium and low grade oil per day. The
manager has to decide on how many days per week should each unit be operated in order to
meettherequirementatminimumcost.FormulatetheLPPmodel.
Solution:Thegivendatacanbepresentedinsummaryasfollows:
Product Capacity Requirements
Superfine
Medium
Lowgrade
Cost
UnitA UnitB
12
8
24
6
2
4
Rs.1,000
2
2
12
Rs.800
Letx
1
andx
2
bethenumberofdaystheunitsAandBbeoperatedperweekrespectively.Then
theobjectiveofthemanageristo,
Minimizethecostfunction
Z=1000x
1
+800x
2
Subjecttotheconstraints6x
1
+2x
2
12(Superfine)
2x
1
+2x
2
8(medium)
4x
1
+12x
2
24(lowgrade)
andx
1
0,x
2
0.
StateTrue/False
a. Oneofthecharacteristicsofcanonicalformintheobjectivefunctionmustbeofmaximisation.
b. 2x3y 10canbewrittenas
21
2x+3y 10
2.4 GraphicalAnalysis
Linear programming with 2 decision variables can be analysed graphically. The graphical
analysisofaL.P.P.isillustratedwiththehelpofthefollowingexample:
MaximizeZ=700x
1
+500x
2
Subjectto4x
1
+3x
2
210
2x
1
+x
2
90
and
x
1
0,x
2
0.
Letthehorizontalaxisrepresentx
1
andtheverticalaxisx
2
.Firstwedrawtheline4x
1
+3x
2
=210.
(byreplacingtheinequalitysymbolsbytheequality)whichmeetsthex
1
axisatthepointA(52.50,
0)(putx
2
=0andsolveforx
1
in4x
1
+3x
2
=210)andthex
2
axisatthepointB(0,70)(putx
1
=0
in4x
1
+3x
2
=210andsolveforx
2
).
Anypointontheline4x
1
+3x
2
=210orinsidetheshadedportionwill satisfytherestrictionofthe
inequality,4x
1
+3x
2
210.Similarlytheline2x
1
+x
2
=90meetsthex
1
axisatthepointC(45,0)and
thex
2
axisatthepointD(0,90).
22
Combiningwecansketchtheareaasfollows:
The 3 constraints including nonnegativity are satisfied simultaneously in the shaded region
OCEB.Thisregioniscalledfeasibleregion.
2.4.1SomeBasicDefinitions
E
23
Definition:Anynonnegativevalueof(x
1
,x
2
)(i.e.:x
1
0,x
2
0)isafeasiblesolutionoftheLPP
if it satisfies all the constraints. The collection of all feasible solutions is known as the feasible
region.
Definition:AsetXisconvexifforanypointsx
1
,x
2
inX,thelinesegmentjoiningthesepointsis
alsoinX.
(Thatis,x
1
,x
2
X,0 l 1 lx
2
+(1l)x
1
X).Byconvention,asetcontainingonlyasingle
pointisalsoaconvexset.
lx
2
+(1l)x
1
(where0 l 1)iscalleda convexcombinationof x
1
andx
2
.
ApointxofaconvexsetXissaidtobeanextremepointiftheredonotexistx
1
,x
2
X(x
1
x
2
)
suchthatx= lx
2
+(1l)x
1
forsome l with0< l <1.
Definition:Alinearinequalityintwovariablesisknownasahalfplane.Thecorrespondingequalityor
thelineisknownastheboundaryofthehalf plane.
Definition: A convex polygon is a convex set formed by the intersection of finite number of
closedhalfplanes.
Convexregions
Nonconvexregions
Note:Theobjectivefunctionismaximizedorminimizedatoneoftheextremepointswhichisthe
Optimum solution. Extreme points are referred to as vertices or corner points of the convex
regions.
Definition:Aredundantconstraintisaconstraintwhichdoesnotaffectthefeasibleregion.
Definition: A basic solution of a system of m equations and n variables (m < n) is a
solutionwhereatleastnmvariablesarezero.
E E
E E
E
E E
E
E
E E
24
Definition: A basic feasible solution of a system of m equations and n variables (m < n) is a
solutionwheremvariablesarenonnegative( 0)andnmvariablesarezero.
Definition: Any feasible solution that optimizes the objective function is called an optimal
feasiblesolution.
Example:Findallbasicsolutionsforthesystemx
1
+2x
2
+x
3
=4, 2x
1
+x
2
+5x
3
=5.
Solution:HereA=

5 1 2
1 2 1
,X=

3
2
1
x
x
x
andb=

5
4
.
i) Ifx
1
=0,thenthebasismatrixis B=

5 1
1 2
.Inthiscase2x
2
+x
3
=4,x
2
+5x
3
=5.
If we solve this, then x
2
=
3
5
and x
3
=
3
2
. Thereforex
2
=
3
5
, x
3
=
3
2
is a basicfeasible
solution.
ii) If x
2
=0,thenthebasismatrixis B=

5 2
1 1
.Inthiscase,x
1
+x
3
=4,2x
1
+5x
3
=5.Ifwe
solvethis,thenx
1
=5and x
3
=1.Thereforex
1
=5,x
3
=1isabasicsolution.(Notethat
thissolutionisnotfeasible,becausex
3
=1<0).
iii) Ifx
3
=0,thenthebasismatrixisB=

1 2
2 1
.Inthiscase,x
1
+2x
2
=4.
2x
1
+ x
2
= 5. If we solve this, then x
1
= 2, and x
2
= 1. Therefore x
1
= 2, x
2
= 1is abasic
feasiblesolution.
Therefore(i)(x
2
,x
3
)=(5/3,2/3),(ii)(x
1
,x
3
)=(5,1),and
(iii)(x
1
,x
2
)=(2,1)areonlythecollectionofallbasicsolutions.
a. Thecollectionofallfeasiblesolutionsisknownasthe_________region.
b. Alinearinequalityintwovariablesisknownasa_________.
25
2.5 GraphicalMethods To SolveTheLinearProgrammingProblems
ALPPwith2decisionvariablesx
1
andx
2
canbesolvedeasilybygraphicalmethod.Weconsider
the x
1
x
2
plane where we plot the solution space, which is the space enclosed by the
constraints. Usually the solution space is a convex set which is bounded by a polygon since a
linearfunctionattainsextreme(maximum orminimum)valuesonlyonboundaryoftheregion,itis
sufficienttoconsidertheverticesofthepolygonandfindthevalueoftheobjectivefunctionin these
vertices.Bycomparingtheverticesofthe objectivefunctionatthesevertices, weobtaintheoptimal
solutionoftheproblem.
The method of solving a LPP on the basis of the above analysis is known as the graphical
method.Theworkingruleforthemethodisasfollows:
2.5.1 WorkingRule:
StepI: Writedowntheequationsbyreplacingtheinequalitysymbolsbytheequalitysymbolinthe
givenconstraints.
StepII:PlotthestraightlinesrepresentedbytheequationsobtainedinstepI.
Step III: Identify the convex polygon region relevant to the problem. We must decide on which
sideoftheline,thehalfplaneislocated.
StepIV:Determinetheverticesofthepolygonandfindthevaluesofthegivenobjectivefunction
Z at each of these vertices. Identify the greatest and least of these values. These are
respectivelythemaximumandminimumvalueofZ.
StepV:Identifythevaluesof(x
1
,x
2
)whichcorrespondtothedesiredextremevalueofZ.Thisis
anoptimalsolutionoftheproblem.
Example4:WecansolvetheL.P.P.discussedinExampleI.
MaximizeZ=50x
1
+80x
2
Subjecttotheconstraints
1.0x
1
+1.5x
2
600
0.2x
1
+0.2x
2
100
0.0x
1
+0.1x
2
30
andx
1
0,x
2
0
Let the horizontal axis represent x
1
and the vertical axis x
2
. Plot the constraint lines and mark the
feasibilityregionashasbeenshowninthefigure.
26
FeasibleregionofthetwodimensionalLPP
Any point on the thick line or inside the shaded portion will satisfy all the restrictions of the
problem. Then ABCDE is the feasibility region carried out by the constraints operating on the
objective function. This depicts the limits within which the values of the decision variables are
permissible. The intersection points C and D can be solved by the linear equations
x
2
=30x
1
+1.5x
2
=600,and0.2x
1
+0.2x
2
=100andx
1
+1.5x
2
=600i.e.C(150,300)
andD(300,180).
After doing this, the next step is to maximise revenues subject to the above shaded area. We
workouttherevenuesatdifferentcornerpointsastabulatedbelow:
At
point
Feasiblesolutionofthe
productmix
Corresponding
revenue
Total
revenue
x
1
x
2
Fromx
1
Fromx
2
A
B
C
D
E
0
0
150
300
500
0
300
300
180
0
0
0
7500
15000
25000
0
2400
24000
14,400
0
0
24000
31500
29400
25,000
From the above table we find that revenueis maximumat Rs.31,500 when 150unitsof x
1
and
300unitsofx
2
areproduced.
Example 5: For conducting a practical examination, the chemistry department of a college
requires10,12and7unitsofthreechemicalsX,Y,Zrespectively.Thechemicalsareavailablein
twotypesofboxes:BoxA,BoxB.BoxAcontains3,2and1unitsofX,Y,Zrespectivelyand
costsRs.300.BoxBcontains1,2and2unitsofX,Y,ZrespectivelyandcostsRs.200.Find
27
how many boxes of each type should be bought by the department so that the total cost is
minimum.
Solution:First,wesummarizethegivendatainthefollowingtable:
Units UnitsinBoxA UnitsinBoxB Unitsrequired
X
Y
Z
3
2
1
1
2
2
10
12
7
Cost Rs.300 Rs.200
Letx
1
bethenumberofboxesofAtypetobebought andx
2
bethenumberofboxesofBtype.
Thenthetotalcostis,
Z=300x
1
+200x
2
.
Obiviouslyx
1
0,x
2
0.
From the details tabulated in the table, we find that x
1
and x
2
are subject to the following
constraints:
3x
1
+x
2
10
2x
1
+2x
2
12
x
1
+2x
2
7
Now,weconsiderthelinesL
1
:3x
1
+x
2
=10,L
2
:2x
1
+2x
2
=12L
3
:x
1
+2x
2
=7.These
linesareshowninfig.
We note that for the coordinates (x
1
, x
2
) of a point satisfy the inequalities. The convex region
bounded by theselines and the coordinate axes is an unbounded region, thisis shaded infig.
28
Wecheckthatapoint(x
1
,x
2
)thatliesinsideorontheboundarylinesofthisregionsatisfiesthe
conditionsx
1
0,x
2
0andtheconstraints.
We find that the vertices for the region of interest here are P, Q, R, S. Where P is the point at
which L meets the x
2
axis, Q is the point of intersection of L
1
and L
2
, R is the point of inter
sectionofL
2
andL
3
andSisthepointatwhichL
3
meetsthex
1
axis.WefindthatP(0,10),Q(2,
4),R(5,1)andS(7,0).:
AtP(0,10),Z=300 0+200 10=2000
AtQ(2,4),Z=300 2+200 4=1400
AtR(5,1),Z=300 5+200 1=1700
AtS(7,0),Z=300 7+200 0=2100
Evidently,ZisminimumattheverticesQ(2,4)forwhichx
1
=2,x
2
=4.Thusthecostisminimum
if2boxesoftypeAand4boxesoftypeBarebought.TheminimumcostisRs.1400.
2.5.2Examples6onmixedconstraintsLPproblem:Byusinggraphicalmethod,findthe
maximumandminimumvaluesofthefunctionZ=x3ywherexandyarenonnegativeandare
subjecttothefollowingconditions:
3x+4y 19,
2xy 9
2x+y 15
xy 3
Solution: First, we write the constraints (conditions) to be satisfied by x, y in the following
standard(lessthanorequal)form:
3x4y 19
2xy 9
2x+y 15
x+y 3
Now,considertheequations:
3x4y= 19,2xy=9,2x+y=15, x+y=3 whichrepresentsstraightlinesinthexy
plane.LetusdenotethembyL
1
,L
2
,L
3
andL
4
respectively.Theseareshowninfig.:
29
Fromthefigure,wenotethatthelinesL
1
,L
2
,L
3
andL
4
formaquadrilateralABCDthatliesinthe
first quadrant of the xy plane. We readily see that the region bounded by this quadrilateral is
convex. As such, the points (x, y) that lie within or on the boundary lines of this quadrilateral
satisfytheinequalitiesx 0,y 0andtheconstraints.ThecoordinatesoftheverticesA,B,C,D
ofthequadrilateralareobtainedbysolvingequationstakentwoofthematatime,wefindthatA
(1,4),B(5,1),C(6,3),D(4,7)
wegetthesolution
Z
atA(1,4)
=134=11
Z
atB(5,1)
=531=2
Z
atC(6,3)
=633=3
Z
atD(4,7)
=437=17
Evidently,ZismaximumatthevertexBandminimumatthevertexD.ThemaximumvalueofZis
Z
at B(5, 1)
=2, which corresponds to x = 5, y = 1,and the minimumvalues of Zis 17 at D(4,7)
whichcorrespondstox=4,y=7.
Examples7:UsethegraphicalmethodtosolvethefollowingLPproblem:
MaximizeZ=7x
1
+3x
2
30
x
1
+2x
2
3
x
1
+x
2
4
0 x
1

0 x
2

andx
1
,x
2
0
Solution:Rewritingthegivenconstraintsasfollows:
1
x
1
x
1
4
x
4
x
1
x
3
x
2
3
2
2
5
1
2 1
2
3
2 1

+
+
Note: Theequation 1
b
y
a
x
= + is called interceptform of the straight line. Hereaandb are the
distancefromorgintotheintersectionpointsonthecoordinateaxes.
Grapheachconstraintbyfirsttreatingitasalinearequation.Thenusetheinequalityconditionof
eachconstrainttomakethefeasibleregionasshowninfig.:
2
5
2
3
31
The coordinates of the extreme points of the feasible region are

4
1
,
2
5
A

2
3
,
2
5
B and

2
3
, 0 C .Thevalueoftheobjectivefunctionateachoftheseextremepointsisasfollows:
Extremepoint Coordinates(x
1
,x
2
)
Objectivefunction
value
Z=7x
1
+3x
2
A
B
C

4
1
,
2
5

2
3
,
2
5

2
3
, 0
7
22
9/2
The maximum value of the objective function Z= 22 occurs at the extreme points

2
3
,
2
5
B .
HencetheoptimalsolutiontothegivenLPproblemis
2
3
x ,
2
5
x
2 1
= = andMax.Z=22.
Inlinearprogrammingproblemsmayhave:
i) auniqueoptimalsolutionor
ii) manynumberofoptimalsolutionsor
32
iii) anunboundedsolutionor
iv) nosolutions.
Example8:MaximizeZ=100x
1
+40x
2
Subjectto
10x
1
+4x
2
2000
3x
1
+2x
2
900
6x
1
+12x
2
3000
andx
1
,x
2
0
Solutions:Thegivenconstraintscanberewrittenas
1
250
x
500
x
1
450
x
300
x
1
500
x
200
x
2 1
2 1
2 1
+
+
+
Thevaluesof(x
1
x
2
)atthepointsare0(0,0),A(200,0)B(125,187.5)andC(0,250).Thefeasible
regionisOABC.ThevaluesofZatthepointsare
Z
atO(00)
=0
Z
atA(200,0)
=20000
Z
atB(125,187.5)
=20000
Z
atC(0,250)
=10,000
33
ThusthemaximumvalueofZoccursat2verticesatAandB.AnypointonthelinejoiningAand
B will also give the same maximum value of Z. Therefore, there are infinite number of feasible
solutionswhichyieldthesamemaximumvalueofZ.
Supposealinearprogrammingproblemhasanunboundedfeasiblesolutionspace.
Ifthesetofallvaluesoftheobjectivefunctionatdifferentfeasiblesolutionsisnotboundedabove
(respectively, bounded below), and if the problem is a maximization (respectively, minimization)
problem,thenwesaythatthegivenproblemhasanunboundedsolution.
Inthefollowing,wepresentanexamplewithunboundedsolution.
2.5.3Example9forUnboundedSolution:
MaximizeZ=2x
1
+3x
2
Subjectto
x
1
x
2
2
x
1
+x
2
4
andx
1
,x
2
0
The intersection point A of the straight lines x
1
x
2
= 2 and x
1
+x
2
= 4 is A(3, 1). Here the
solutionspaceisunbounded.TheverticesofthefeasibleregionareA(3,1)andB(0,4).Valueof
objectiveattheseverticesare
Z
atA(31)
=23+31=9
34
Z
atB(0,4)
=20+43=12.
ButtherearepointsintheconvexregionforwhichZwillhavemuchhighervalues.ForexampleE
(10,9)liesintheshadedregionandthevalueofZthereat47.Infact,themaximumvaluesofZ
occursatinfinity.Thustheproblemhasanunboundedsolutions.
2.5.4Example10forInconsistent:
MaximizeZ=4x
1
+3x
2
Subjectto
x
1
x
2
1
x
1
+x
2
0
andx
1
,x
2
0.
There being no point (x
1
, x
2
) common to both the shaded regions, the LPP cannot be solved.
Hencethesolutiondoesnotexist,sincetheconstraintsareinconsistent.
2.5.5Example11forredundantConstraint:
A company making cold drinks has 2 bottling plants located at towns T
1
and T
2
. Each plant
producesthreedrinksA,BandCandtheirproductioncapacityperdayisshownbelow:
Colddrinks
Plantat
T
1
T
2
A
B
C
6000
1000
3000
2000
2500
3000
35
The marketing department of the company forecasts a demand of 80,000 bottles of A, 22,000
botles of B and 40,000 bottles of C during the month of June. The operating costs per day of
plantsat T
1
andT
2
areRs.6,000andRs. 4,000respectively.Findthenumberofdaysforwhich
each plant must be runin June so as to minimize theoperating costs while meeting the market
demand.
Solution:LettheplantsatT
1
andT
2
berunforx
1
andx
2
days.
Thentheobjectiveistominimizetheoperationcosts.
MinimumofZ=6000x
1
+4000x
2
.
Constraintsonthedemandforthe3colddrinksare
6000x
1
+2000x
2
80,000(i)
1000x
1
+2500x
2
22000(ii)
3000x
1
+3000x
2
40000(iii)
also x
1
,x
2
0
ThustheLPPistominimizetheobjectivefunctionsubjecttotheconstraints(i),(ii)and(iii).The
solution space is unbounded. The constraint (iii) is dominated by the constraints (i) and (ii) and
hencedoesnotaffectthe solutionspace.Suchaconstraint 3000x
1
+3000x
2
40000iscalled
theredundantconstraint.
ThevaluesoftheconvexregionA, B, CareA(22,0),B(12,4)andC(0,40).Thevalues
oftheobjectivefunctionZattheverticesare
Z
atA
=132000
Z
atB
=88,000
Z
at C
=1,60,000
36
ThustheminimumvalueofZisRs.80,000anditoccursatB.Hencetheoptimalsolutiontothe
problemisx
1
=12days,x
2
=4days.
Example12:FinalthemaximumandminimumvalueofZ=2x+3y
Subjectto x+y 30
xy 0
y 3
0 x 20
0 y 12.
Solution:Anypoint(x,y)satisfiestheconditionsx 0,y 0liesinthefirstquadrantonly.
Thedesiredpoint(x,y)lieswithinthefeasibleconvexregionABCDE.
ItsverticesareA(3,3)B(10,3)C(20,10),D(18,12)andB(12,12).ThevaluesofZatthe
fiveverticesare
Z
at A(3,3)
=2 3+3 3=15
Z
atB(20,3)
=49
Z
atC(20,10)
=70
Z
atD(18,12)
=72
Z
ztE(12,12)
=60
SincethemaximumvalueofZis72whichoccursatthevertixD(18,12).Thereforethesolution
37
oftheLPPisx=18,y=12andtheminimumvalueofzis15atx=3,y=3.
StateTrue/False
1. Thefeasibleregionisaconvexset.
2. Theoptimumvalueoccursanywhereinfeasibleregion.
2.6Summary
In LPP we first identify the decision variables which are some economic or physical quantities
whose values are of interest to the management. The problems must have a welldefined
objectivefunctionexpressedintermsofthedecisionvariable.Theobjectivefunctionmayhaveto
bemaximizedwhenitexpressestheprofitorcontribution.Incasetheobjectivefunctionindicates
a cost, it has to be minimized. The decision variables interact with each other through some
constraints. These constraints occur due to limited resources, stipulation on quality, technical,
legalorvarietyofotherreasons.Theobjectivefunctionandtheconstraintsarelinearfunctionsof
the decision variables. A LPP with two decision variables can be solved graphically. Any non
negativesolutionwhichsatisfiesalltheconstraintsisknownasafeasiblesolutionoftheproblem.
Thecollectionofallfeasiblesolutionsisknownasafeasibleregion.ThefeasibleregionofaLPP
is a convex set. The value of the decision variables which maximise or minimize the objectives
function is located on the extreme point of the convex set formed by the feasible solutions.
Sometimes the problem may be infeasible indicating that no feasible solution of the problem
exists.
TerminalQuestions.
1. UsegraphicalmethodandsolvetheL.P.P.
MaximizeZ=5x
1
+3x
2
subjectto: 3x
1
+5x
2
15
5x
1
+2x
2
10
x
1
,x
2
0
2. Mathematically formulate the problem. A firm manufactures two products the net profit on
product1isRs.3perunitandthenetprofitonproduct2isRs.5perunit.Themanufacturing
38
processissuchthateachproducthastobeprocessedintwodepartments D
1
andD
2
.Each
unit of product 1 requires processing for 1 minute at D
1
and 3 minutes at D
2
Each unit of
product2requiresprocessingfor2minuteatD
1
and2minutesatD
2
.
Machine timeavailableperday is860 minutesat D
1
and 1200 minutesat D
2
. How much of
products1and2shouldbeproducedeverydaysothattotalprofitismaximum.Formulatethis
asaprobleminL.P.P.
AnswersToSelfAssessmentQuestions
1. Linear
2. Alternatecourseofactions
3. Fractious
1. True
2. True
1. Feasible
2. Halfplan
1. True
2. False
1.
19
5
Z max
19
45
x
19
20
x
2 1
= = =
2. Maximize3x
1
+5x
2
Subjecttox
1
+2x
2
800(minutes)
3x
1
+2x
2
1200(minutes)
x
1
,x
2
0
39
Unit3 SimplexMethod
Structure
3.1. Introduction
3.2. StandardformofL.P.P
3.2.1ThestandardformoftheLPP
3.2.2FundamentalTheoremofL.P.P.
3.3. SolutionofL.P.PSimplexmethod
3.3.1InitialbasicfeasiblesolutionofaLPP
3.3.2ToSolveproblembySimplexMethod
3.4. TheSimplexAlgorithm
3.4.1Steps
3.5. PenaltycostmethodorBigMmethod
3.6. Twophasemethod
3.7. MaximisationExamples
3.8. Summary
TerminalQuestions
AnswerstoSAQs&TQs
3.1Introduction
ThesimplexmethodprovidesanefficienttechniquewhichcanbeappliedforsolvingLPPofany
magnitudeinvolvingtwoormoredecisionvariables.Inthismethodtheobjectivefunctionusedto
controlthedevelopmentandevaluationofeachfeasiblesolutiontotheproblem.
The simplex algorithm is an iterative procedure for finding the optimal solution to a linear
programming problem. In the earlier methods, if a feasible solution to the problem exists, it is
locatedatacornerpointofthefeasibleregiondeterminedbytheconstraintsofthesystem.The
simplexmethod,accordingtoitsiterativesearch,selectsthisoptimalsolutionfromamongtheset
offeasiblesolutionstotheproblem.Theefficiencyofthisalgorithmis,becauseitconsidersonly
thosefeasiblesolutionswhichareprovidedbythecornerpoints,andthattoonotallofthem.We
consideraminimumnumberoffeasiblesolutionstoobtainanoptimalsolution.
40
LearningObjectives:
1. TowritethestandardformofLPPfromthegivenhypothesis
2. Applythesimplexalgorithmtothesystemofequations
3. UnderstandthebigMtechnique
4. Knowtheimportanceofthetwophasemethod.
5. Formulatethedualfromtheprimal(andviceversa).
3.2 TheStandardFormOfLPP
Thecharacteristicsofthestandardformare:
1. Allconstraintsareequationsexceptforthenonnegativityconditionwhichremaininequalities
(,0)only.
2. Therighthandsideelementofeachconstraintequationisnonnegative.
3. Allvariablesarenonnegative.
4. Theobjectivefunctionisofthemaximizationorminimizationtype.
The inequality constraints can be changed to equations by adding or substracting the lefthand
side of each such constraintsby a nonnegativevariable. The nonnegativevariablethathas to
be added to a constraint inequality of the form to change it to an equation is called a slack
variable.Thenonnegativevariablethathastobesubstractedfromaconstraintinequalityofthe
form tochangeittoanequationiscalledasurplusvariable.Therighthandsideofaconstraint
equationcanbemadepositivebymultiplyingbothsidesoftheresultingequationby(1)wherever
necessary. The remaining characteristics are achievedby using theelementary transformations
introducedwiththecanonicalform.
3.2.1 TheStandardFormOfTheLPP
AnystandardformoftheL.P.P.isgivenby
MaximizeorMinimize
i
x
i
C z
n
1 i
=
=
Subjectto: . m . .......... 2 , 1 i ) 0 b ( b S x a
i i i j ij
n
1 j
= =
=
&x
j
0,j=1,2,n.
S
i
0,i=1,2,m.
41
3.2.2 FundamentalTheoremOfL.P.P.
Givenasetofmsimultaneouslinearequationsinnunknowns/variables,n m,AX=b,with r(A)
=m.IfthereisafeasiblesolutionX 0,thenthereexistsabasicfeasiblesolution.
StateTrue/False
1. Weaddsurplusvariableforofconstraint
2. Therighthandsideelementofeachconstraintisnonnegative.
3.3 Solution OfThe LinearProgrammingProgram SimplexMethod
ConsideraLPPgiveninthestandardform,
Tooptimizez=c
1
x
1
+c
2
x
2
++c
n
x
n
Subjectto
a
11
x
1
+a
12
x
2
++a
n
x
n
S
1
=b
1
a
21
x
1
+a
22
x
2
++a
2n
x
n
S
2
=b
2
.
.
a
m1
x
1
+a
m2
x
2
+ +a
mn
x
n
S
m
=b
m
x
1
,x
2
,x
n
,S
1
,S
2
,S
m
0.
To each of the constraint equations add a new variable called an artificial variable on the left
hand side of every equation which does not contain a slack variable. Then every constraint
equationcontainseitheraslackvariableoranartificialvariable.
The introduction of slack and surplus variables do not alter either the constraints or the objective
function. So such variables can be incorporated in the objective function with zero coefficients.
However,theartificialvariablesdochangetheconstraints,sincetheseareaddedonlytooneside
i.e.,tothelefthandsideoftheequations.Thenewconstraintequationssoobtainedisequivalent
to the original equations if and only if all artificial variables have value zero. To guarantee such
assignmentsintheoptimalsolutions,artificialvariablesareincorporatedintotheobjectivefunction
withverylargepositivecoefficientMintheminimizationprogramandverylargenegativecoefficient
M in the maximizationprogram.These coefficients representthepenalty incurredin makingan
unitassignmenttotheartificialvariable.
ThusthestandardformofLPPcanbegivenasfollows:
Optimize Z=C
T
X
42
Subjectto AX=B,
and X 0
Where Xis a columnvector with decision, slack, surplus andartificial variables, C is the vector
corresponding to the costs, A is the coefficient matrix of the constraint equations and B is the
columnvectoroftherighthandsideoftheconstraintequations.
Example1: ConsidertheLPP
Minimize Z=4x
1
+x
2
Subjectto 3x
1
+x
2
=3
4x
1
+3x
2
6
x
1
+2x
2
3,
x
1
,x
2
0
Rewritinginthestandardform,
Minimize Z=4x
1
+x
2
+0.S
1
+0.S
2
+M(A
1
+A
2
)
Subjectto 3x
1
+x
2
+A
1
=3
4x
1
+3x
2
S
1
+A
2
=6
x
1
+2x
2
+S
2
=3
x
1
,x
2
,S
1
,S
2
,A
1
,A
2
0
WhenS
2
isslackvariable,S
1
isasurplusvariableandA
1
&A
2
anartificialvariables.
Representingthisprograminmatrixes,wehave
MinimizeZ=(4100MM)

2
1
2
1
2
1
A
A
S
S
x
x
Subjectto

-
0 0 1 0 2 1
1 0 0 1 3 4
0 1 0 0 1 3

2
1
2
1
2
1
A
A
S
S
x
x
=

3
6
3
and

2
1
2
1
2
1
A
A
S
S
x
x
0
43
3.3.1 InitialbasicfeasiblesolutionofaLPP
Considerasystemofmequationsinnunknownsx
1
,x
2
x
n
,
a
11
x
1
+a
12
x
2
++a
1n
x
n
=b
1
a
21
x
1
+a
22
x
2
++a
2n
x
n
=b
2
a
m1
x
1
+a
m2
x
2
++a
mn
x
n
=b
n
Where m n.
Tosolvethissystemofequations,wefirstassignanyofnmvariableswithvaluezero.These
variables which have assigned value zero initially are called the nonbasic variables, the
remaining variables are called basic variables. Then the system can be solved to obtain the
values of thebasicvariables.Ifone or morevalues of thebasicvariablesarealso zerovalued,
then solution of the system is said to degenerate. If all basic variable, have nonzero values,
thenthesolutioniscalledanondegeneratesolution.
Abasicsolutionissaidtobefeasible,ifitsatisfiesallconstraints.
Example2: Considerthesystemofequations
2x
1
+x
2
x
3
=2
3x
1
+2x
2
+x
3
=3
where x
1
,x
2
,x
3
0.
Sincethereare3variablesandtwoequations,assign32=1variable,thevaluezeroinitially.
Case(i):Letx
3
=0i.e.,x
3
beanonbasicvariable,thenequationbecomes
2x
1
+x
2
=2
3x
1
+2x
2
=3
Solving,weget
x
1
=1,x
2
=0.
\ Thesolutiondegenerates,butisfeasible.
Case(ii):Letx
2
beanonbasicvariablei.e.,x
2
=0,thensolutionis
x
1
=1andx
3
=0
Herealsothesolutiondegeneratesbutfeasible.
Case(iii):Letx
1
benonbasici.e.,x
1
=0
Solutionisx
2
=
3
1
,x
3
=
3
1
.
Thesolutionnondegenerates,butisnotfeasible.
44
ConsideraLPPgiveninthestandardform
Optimize Z=C
T
X
Subjectto AX=B,
X 0.
Theinitialsolutionof suchaproblemdenoted byX
0
,isobtainedbytreatingalldecisionandsurplus
variablesasnonbasicvariablesi.e.,theyhaveassigned valuezero,allslackand,artificialvariablesas
basic variables and have assigned values which are on R.H.S. of the corresponding constraint
equations.
3.3.2 ToSolveproblembySimplexMethod
1. Introducestackvariables(S
i
s)for typeofconstraint.
2. Introducesurplusvariables(S
i
s)andArtificialVariables(A
i
)for typeofconstraint.
3. IntroduceonlyArtificialvariablefor=typeofconstraint.
4. Cost(C
j
)ofslackandsurplusvariableswillbezeroandthatofArtificialvariablewillbeM
FindZ
j
C
j
foreachvariable.
5. Slack and Artificial variables will form Basic variable for the first simplex table. Surplus
variablewillneverbecomeBasicVariableforthefirstsimplextable.
6. Z
j
= sum of [cost ofvariable xits coefficientsin the constraints Profitor cost coefficientof
thevariable].
7. Select the most negative value of Z
j
C
j
. That column is called key column. The variable
correspondingtothecolumnwillbecomeBasicvariableforthenexttable.
8. Divide the quantities by the corresponding values of the key column to get ratios select the
minimumratio.Thisbecomesthekeyrow.TheBasicvariablecorrespondingtothisrowwill
bereplacedbythevariablefoundinstep6.
9. TheelementthatliesbothonkeycolumnandkeyrowiscalledPivotalelement.
10. Ratioswithnegativeandavaluearenotconsideredfordeterminingkeyrow.
11. Once an artificialvariableis removedasbasicvariable,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
ascomparedtoobjectivefunction.
45
13. Values of artificial variables will always is M for both maximisation and minimization
problems.
14. TheprocessiscontinuedtillallZ
j
C
j
0.
StateTrue/False
1. Abasicsolutionissaidtobeafeasiblesolutionifitsatisfiesallconstraints.
2. Ifoneormorevaluesofbasicvariablearezerothensolutionissaidtobedegenerate.
3.4 TheSimplexAlgorithm
To test for optimality of the current basic feasible solution of the LPP, we use the following
algorithmcalledsimplexalgorithm.Letusalsoassumethattherearenoartificialvariableexisting
intheprogram.
3.4.1Steps
1) Locatethemostnegativenumberinthelast(bottom)rowofthesimplextable,excludingthat
oflastcolumnandcallthecolumninwhichthisnumberappearsastheworkcolumn.
2) Form ratios by dividing each positive number in the work column, excluding that of the last
row into the element in the same row and last column. Designate that element in the work
column that yields the smallest ratio as the pivot element. If more than one element yields
thesamesmallestratiochoosearbitrarilyoneofthem.Ifnoelementintheworkcolumnisnon
negativetheprogramhasnosolution.
3) Use elementary row operations to convert the pivot element to unity (1) and then reduce all
otherelementsintheworkcolumntozero.
4) Replace the x variable in the pivot row and first column by xvariable in the first row pivot
column. The variable which is to be replaced is called the outgoing variable and the variable
that replaces is called the incoming variable. This new first column is the current set of basic
variables.
5) Repeat steps 1 through 4 until there are no negative numbers in the last row excluding the
lastcolumn.
6) Theoptimalsolutionisobtainedbyassigningtoeachvariableinthefirstcolumnthatvaluein
thecorresponding row andlast column. Allother variables are considered as nonbasicand
have assigned value zero. The associated optimal value of the objective function is the
number in the last row and last column for a maximization program but the negative of this
numberforaminimizationproblem.
46
Examples:
3) Maximize z=x
1
+9x
2
+x
3
Subjectto x
1
+2x
2
+3x
3
9
3x
1
+2x
2
+2x
3
15
x
1
,x
2
,x
3
0.
Rewritinginthestandardform
Maximize z=x
1
+9x
2
+x
3
+0.S
1
+0.S
2
Subjecttotheconditions
x
1
+2x
2
+3x
3
+S
1
=9
3x
1
+2x
2
+2x
3
+S
2
=15
x
1
,x
2
,x
3
,S
1
,S
2
0.
WhereS
1
andS
2
aretheslackvariables.
TheinitialbasicsolutionisS
1
=9,S
2
=15
\ X
0
=

2
1
S
S
,C
0
=

0
0
Theinitialsimplextableisgivenbelow:
x
1
1
x
2
9
x
3
1
S
1
0
S
2
0
Ratio
S
1
0
S
2
0
1
3
2*
2
3
2
1
0
0
1
9
15 2
9
=4.5
2
15
=7.5
Z
j
c
j
1 9
-
1 0 0
Workcolumn
*pivotelement.
S
1
outgoing variable,x
2
incomingvariable.
SincetherearethreeZ
j
C
j
whicharenegative,thesolutionisnotoptimal.
Wechoosethemostnegativeofthesei.e.9,thecorrespondingcolumnvectorx
2
entersthe
basisreplacingS
1
,sinceratioisminimum.Weuseelementaryrowoperationstoreducethe
pivotelementto1andotherelementsofworkcolumntozero.
FirstIterationThevariablex
1
becomesabasicvariablereplacingS
1
.Thefollowingtableis
obtained.
47
x
1
x
2
x
3
S
1
S
2
1 9 1 0 0
X
2
9
2
1
1
2
3
2
1
0
2
9
S
2
0 2 0 1 1 1 6
2
9
0
2
25
2
9
0
2
81
Since all elements of the last row are nonnegative the optimal solution is obtained. The
maximumvalueoftheobjectivefunctionZis
2
81
whichisachievedforx
2
=
2
9
S
2
= 6 which
arethebasicvariables.Allothervariablesarenonbasic.
4) UseSimplexmethodtosolvetheLPP
Maximize Z=2x
1
+4x
2
+x
3
+x
4
Subjectto x
1
+3x
2
+x
4
4
2x
1
+x
2
3
x
2
+4x
3
+x
4
3
x
1
,x
2
,x
3
,x
4
0
Rewritinginthestandardform
Maximize Z=2x
1
+4x
2
+x
3
+x
4
+0.S
1
+0.S
2
+0.S
3
Subjectto x
1
+3x
2
+x
4
+S
1
=4
2x
1
+x
2
+S
2
=3
x
2
+4x
3
+x
4
+S
3
=3
x
1
,x
2
,x
3
,x
4
,S
1
,S
2
,S
3
0.
TheinitialbasicsolutionisS
1
=4,S
2
=3,S
3
=3
\X
0
=

3
2
1
S
S
S
=

3
3
4
C
0
=

0
0
0
48
Theinitialtableisgivenby
X
1
x
2
x
3
x
4
S
1
S
2
S
3
Ratio
2 4 1 1 0 0 0
S
1
0 1 3* 0 1 1 0 0 4
3
4

S
2
0 2 1 0 0 0 1 0 3
1
3
S
3
0 0 1 4 1 0 0 1 3
1
3
Z
j
c
j
2 4 1 1 0 0 0 0
-
workcolumn *pivotelement
S
1
istheoutgoingvariable,x
2
istheincomingvariabletothebasicset.
Thefirstiterationgivesthefollowingtable:
x
1
x
2
x
3
x
4
S
1
S
2
S
3
Ratio
2 4 1 1 0 0 0
x
2
4
3
1
1 0
3
1
3
1
0 0
3
4
S
2
0
3
5
0 0
3
1
3
1
1 0
3
5
S
3
0
3
1
0 4*
3
2
3
1
0 1
3
5
12
5

Z
j
C
j
3
2
0 1
3
1
3
4
0 0
3
16
-
Workcolumn
49
x
3
entersthenewbasicsetreplacingS
3
,theseconditerationgivesthefollowingtable:
x
1
x
2
x
3
x
4
S
1
S
2
S
3
Ratio
2 4 1 1 0 0 0
x
2
4
3
1
1 0
3
1
3
1
0 0
3
4
4
S
2
0
3
5
*
0 0
3
1
3
1
1 0
3
5 1
x
3
1
12
1
0 1
6
1
12
1
0
4
1
12
5
Z
j
C
j
4
3
0 0
6
1
4
5
0
4
1
4
23
1/2
-
Workcolumn
x
1
entersthenewbasicsetreplacingS
2
,thethirditerationgivesthefollowingtable:
x
1
x
2
x
3
x
4
S
1
S
2
S
3
2 4 1 1 0 0 0
x
2
4 0 1 0
5
2
5
2
5
1
0 1
x
1
2 1 0 0
5
1
5
1
5
3
0 1
x
3
1 0 0 1
20
3
10
1
20
1
4
1
2
1
Z
j
C
j
0 0 0
20
7
10
11
20
9
4
1
2
13
Sinceallelementsofthelast rowarenonnegative, theoptimalsolutionisZ=
2
13
whichis
achievedforx
2
=1,x
1
=1,x
3
=
2
1
andx
4
=0.
5) A manufacturing firm has discontinued production of a certain unprofitable product line.
This created considerable excess production capacity. Management is considering to
devotethisexcesscapacitytooneormoreofthreeproducts:callthemproduct1,2and3.
Theavailablecapacityonthemachineswhichmightlimitoutputaregivenbelow:
50
MachineType AvailableTime
(inmachinehoursperweek)
MillingMachine 250
Lathe 150
Grinder 50
Thenumberofmachinehoursrequiredforeachunitoftherespectiveproductisgivenbelow:
Productivity(inMachine
hours/Unit)
MachineType Product1 Product2 Product3
MillingMachine 8 2 3
Lathe 4 3 0
Grinder 2 1
TheunitprofitwouldbeRs.20,Rs.6andRs.8forproducts1,2and3.Findhowmuchof
eachproductthefirmshouldproduceinordertomaximizeprofit?
Letx
1
,x
2
,x
3
unitsofproducts1,2and3areproducedinaweek.
Thentotalprofitfromtheseunitsis
Z=20x
1
+6x
2
+8x
3
Toproducetheseunitsthemanagementrequires
8x
1
+2x
2
+3x
3
machinehoursofMillingMachine
4x
1
+3x
2
+0x
3
machinehoursofLathe
and 2x
1
+x
3
machinehoursofGrinder
Sincetime availablefor these three machines are 250,150 and 50hours respectively, we
have
8x
1
+2x
2
+3x
3
250
4x
1
+3x
2
150
2x
1
+x
3
50.
Obviously x
1
,x
2
,x
3
0
Thustheproblemisto
Maximize Z=20x
1
+6x
2
+8x
3
Subjectto 8x
1
+2x
2
+3x
3
250
4x
1
+3x
2
150
2x
1
+x
3
50,
x
1
,x
2
,x
3
0.
51
Maximize Z=20x
1
+6x
2
+8x
3
+0S
1
+0S
2
+0S
3
Subjectto 8x
1
+2x
2
+3x
3
+S
1
=250
4x
1
+3x
2
+S
2
=150
2x
1
+x
3
+S
3
=50,
x
1
,x
2
,x
3
,S
1
,S
2
,S
3
0.
Theinitialbasicsolutionis
X
0
=

3
2
1
S
S
S
=

50
150
250
Theinitialsimplextableisgivenby
x
1
x
2
x
3
S
1
S
2
S
3
Ratio
20 6 8 0 0 0
S
1
0 8 2 3 1 0 0 250
31
8
250
=
S
2
0 4 3 0 0 1 0 150
4
150
=37.5
S
3
0 2* 0 1 0 0 1 50
2
50
=25
Z
J
C
j
20 6 8 0 0 0 0
-
Workcolumn *pivotelement
x
1
enters the basic set of variables replacing the variable s
3
. The first iteration gives the
followingtable:
x
1
x
2
x
3
s
1
s
2
s
3
Ratio
20 6 8 0 0 0
s
1
0 0 2 1 1 0 4 50
2
50
=25
52
s
2
0 0 3* 2 0 1 2 50
3
50
x
1
20 1 0
2
1
0 0
2
1
25
Z
j
C
j
0 6 2 0 0 10 500
-
Workcolumn*pivotelement
x
2
enters the basic set of variables replacing the variable s
2
. The second iteration gives the
followingtable:
x
1
x
2
x
3
S
1
S
2
S
3
Ratio
20 6 8 0 0 0
S
1
0 0 0
3
1
1 2/3
3
8
3
50
50
X
2
6 0 1
3
2
0
3
1
3
2
3
50
X
1
20 1 0
2
1
*
0 0
2
1
25 50
Zj
Cj
0 0 2 0 2 6 600
-
workcolumn*pivotelement.
x
3
entersthebasicsetofvariablesreplacingthevariablex
1
.Thethirditerationyieldsthefollowing
table:
x
1
x
2
x
3
S
1
S
2
S
3
20 6 8 0 0 0
S
1
0
3
2
0 0 1
3
2
3 0
X
2
6
3
4
1 0 0
3
1
0 50
X
3
8 2 0 1 0 0 1 50
Z
j
c
j
4 0 0 0 2 8 700
Sinceallz
j
c
j
0inthelastrow,theoptimumsolutionis700.
53
i.e.,themaximumprofitisRs.700/whichisachievedbyproducing50unitsofproduct2and
50unitsofproduct3.
3.4.2. SelfAssessmentQuestions3
StateYes/No
1. ThekeycolumnisdeterminedbyZ
j
C
j
row.
2. Pivotalelementliesonthecrossingofkeycolumnandkeyrow
3. Theveandinfiniteratiosareconsideredfordeterminingkeyrow.
3.5 PenaltyCostMethodOrBigMMethod
ConsideraL.P.P.whenatleastoneoftheconstraintsisofthetype or=.Whileexpressingin
thestandardform,addanonnegativevariabletoeachofsuchconstraints.Thesevariablesare
called artificial variables. Their addition causes violation of the corresponding constraints, since
theyareaddedtoonlyonesideofanequation,thenewsystemisequivalenttotheoldsystemof
constraints if and only if the artificial variables are zero. To guarantee such assignments in the
optimalsolution,artificialvariablesareincorporatedintotheobjectivefunctionwithlargepositive
coefficients in a minimization program or very large negative coefficients in a maximization
program.Thesecoefficientsaredenotedby M.
Whenever artificial variables are part of the initial solution X
0
, the last row of simplex table will
contain the penalty cost M. The following modifications are made in the simplex method to
minimizetheerrorofincorporatingthepenaltycostintheobjectivefunction.Thismethodiscalled
BigMmethodorPenaltycostmethod.
1) The last row of the simplex table is decomposed into two rows, the first of which involves
thosetermsnotcontainingM,whilethesecondinvolvesthosecontainingM.
2) TheStep1ofthesimplexmethodisappliedtothelastrowcreatedintheabovemodification
andfollowedbysteps2,3and4untilthisrowcontainsnonegativeelements.Thenstep1of
simplex algorithm is applied to those elements next to the last row that are positioned over
zerointhelastrow.
3) Whenever anartificialvariable ceasesto bebasic,itis removedfrom thefirst column of the
table as a result of step 4, it is also deleted from the top row of the table as is the entire
columnunderit.
4) Thelastrowisremovedfromthetablewheneveritcontainsallzeroes.
54
5) If non zero artificial variables are present in the final basic set, then the program has no
solution.Incontrast,zerovaluedartificialvariablesinthefinalsolutionmayexistwhenoneor
moreoftheoriginalconstraintequationsareredundant.
Examples:
6) UsePenaltyCostmethodto
Maximize z=2x
1
+3x
2
Subjectto x
1
+2x
2
2
6x
1
+4x
2
24,
x
1
,x
2
0.
Rewritinginthestandardform,wehave
Maximize z=2x
1
+3x
2
+0S
1
+0S
2
MA
1
Subjectto x
1
+2x
2
+S
1
=2
6x
1
+4x
2
S
2
+A
1
=24,
x
1
,x
2
,S
1
,S
2
,A
1
0.
Theinitialsimplextableis
x
1
x
2
S
1
S
2
A
1
2 3 0 0 M Ratio
S
1
0 1* 2 1 0 0 2
1
2
=2
A
1
M 6 4 0 1 1 24
6
24
=4
2 3 0 0 0 0
6M 4M 0 M M 24M
-
Workcolumn
x
1
x
2
S
1
S
2
A
1
2 3 0 0 M
x
1
2 1 2 1 0 0 2
A
i
M 0 8 3 1 1 12
0 1 2 0 0 4
55
0 8M 6M 1M 0 12M
Since all elements of the last two rows are non negative, the procedure is complete. But
existence of non zero artificial variable in the basic solution indicates that the problem has no
solution.
3.5.1 SelfAssessmentQuestions4
StateYes/No
1. ThevalueofartificialvalueisM
2. ArtificialvariablesentersasBasicVariable.
3.6 TwoPhaseMethod
The drawback of the penalty cost method is the possible computational error that could result
fromassigningaverylargevaluetotheconstantM.Toovercomethisdifficulty,anewmethodis
considered,wheretheuseofMiseliminatedbysolvingtheproblemintwophases.Theyare
PhaseI:Formulatethenewproblembyeliminatingtheoriginalobjectivefunctionbythe sumof
the artificial variables for a minimization problem and the negative of the sum of the artificial
variablesforamaximizationproblem.Theresultingobjectivefunctionisoptimizedbythesimplex
method with the constraints of the original problem. If the problem has a feasible solution, the
optimalvalueofthenewobjectivefunctioniszero(whichindicatesthatallartificialvariablesare
zero).ThenweproceedtophaseII.Otherwise,iftheoptimalvalueofthenewobjectivefunction
isnonzero,theproblemhasnosolutionandthemethodterminates.
PhaseII:UsetheoptimumsolutionofthephaseIasthestartingsolutionoftheoriginalproblem.
Then the objective function is taken without the artificial variables and is solved by simplex
method.
Examples:
7) Usethetwophasemethodto
Maximise z=3x
1
x
2
Subjectto 2x
1
+x
2
2
x
1
+3x
2
2
x
2
4,
x
1
,x
2
0
56
Maximize z=3x
1
x
2
+0S
1
MA
1
+0.S
2
+0.S
3
Subjectto 2x
1
+x
2
S
1
+A
1
=2
x
1
+3x
2
+S
2
=2
x
2
+S
3
=4,
x
1
,x
2
,S
1
,S
2
,S
3
,A
1
0.
PhaseI:
Considerthenewobjective,
Maximize Z*=A
1
Subjectto2x
1
+x
2
S
1
+A
1
=2
x
1
+3x
2
+S
2
=2
x
2
+S
3
=4,
x
1
,x
2
,S
1
,S
2
,S
3
,A
1
0.
SolvingbySimplexmethod,theinitialsimplextableisgivenby
x
1
x
2
S
1
A
1
S
2
S
3
0 0 0 1 0 0 Ratio
A
1
1 2* 1 1 1 0 0 2
2
2
=1
S
2
0 1 3 0 0 1 0 2
1
2
=2
S
3
0 0 1 0 0 0 1 4
2 1 1 0 0 0 2
- Workcolumn*pivotelement
x
1
entersthebasicsetreplacingA
1
.
x
1
x
2
x
1
A
1
S
2
S
3
0 0 0 1 0 0
X
1
0 1
2
1
2
1
2
1
0 0 1
S
2
0 0
2
5
2
1
2
1 1 0 1
S
3
0 0 1 0 0 0 1 4
0 0 0 1 0 0 0
57
PhaseIiscomplete,sincetherearenonegativeelementsinthelastrow.
TheOptimalsolutionofthenewobjectiveisZ*=0.
PhaseII:
Considertheoriginalobjectivefunction,
Maximize z=3x
1
x
2
+0S
1
+0S
2
+0S
3
Subjectto x
1
+
2
x
2
2
S
1
=1
2
5
x
2
+
2
S
1
+S
2
=1
x
2
+S
3
=4
x
1
,x
2
,S
1
,S
2
,S
3
0
withtheinitialsolutionx
1
=1,S
2
=1,S
3
=4,thecorrespondingsimplextableis
x
1
x
2
S
1
S
2
S
3
3 1 0 0 0 Ratio
x
1
3 1
2
1
2
1
0 0 1
S
2
0 0
2
5
2
1
*
1 0 1
2
1
1
=2
S
3
0 0 1 0 0 1 4
0
2
5
2
3
0 0 3
- Workcolumn*pivotelement
Proceedingtothenextiteration,wegetthefollowingtable:
x
1
x
2
S
1
S
2
S
3
3 1 0 0 0
x
1
3 1 3 0 1 0 2
S
1
0 0 5 1 2 0 2
S
3
0 0 1 0 0 1 4
0 10 0 3 0 6
58
Sinceallelementsofthelastrowarenonnegative,thecurrentsolutionisoptimal.
Themaximumvalueoftheobjectivefunction
Z=6whichisattainedforx
1
=2,x
2
=0.
8) Maximize z=3x
1
+2x
2
,
subjectto 2x
1
+x
2
2,
3x
1
+4x
2
S
2
+A
1
12,
x
1
,x
2
0.
Maximize z=3x
1
+2x
2
+0S
1
+0.S
2
MA
1
Subjectto 2x
1
+x
2
+S
1
=2
3x
1
+4x
2
S
2
+A
1
=2
x
1
,x
2
,S
1
,S
2
,A
1
0.
Solvingbytwophasemethod.
PhaseI:
Considerthenewobjectivefunction
Maximize z*=A
1
Subjectto 2x
1
+x
2
+S
1
=2
3x
1
+4x
2
S
2
+A
1
=12,
x
1
,x
2
,S
1
,S
2
,A
1
0.
TheinitialSimplextableisgivenby
x
1
x
2
S
1
S
2
A
1
Ratio
0 0 0 0 1
S
1
0 2 1* 1 0 0 2
1
2
=2
A
1
1 3 4 0 1 1 12
4
12
=3
3 4 0 1 0 12
- Workcolumn
59
x
1
x
2
S
1
S
2
A
1
0 0 0 0 1
X
2
0 2 1 1 0 0 2
A
1
1 5 0 4 1 1 4
5 0 4 1 0 4
Sinceallelementsofthelastrowannonnegative,theprocedureiscomplete.
Buttheexistenceofnonzeroartificialvariableinthebasicsetindicatesthattheproblemhasno
solution.
3.7 MinimizationExamples
Example10
Minimize=Z=3x
1
+8x
2
Subjectto
x
1
+x
2
=200
x
1
80
x
2
60
x
1
,x
2
0
Solution
Inastandardform
MinimizeZ=3x
1
+8x
2
+MA
1
+OS
1
+MA
2
+OS
2
Subjectto
x
1
+x
2
+A
1
=200
x
1
S
1
+A
2
=80
x
2
+S
2
=60
S
1
,S
2
,A
1
,A
2
0
SimplexTable1
C
j
3 8 0 0 M M
C.B B.V x
1
x
2
S
1
S
2
A
1
A
3
Qty Ratio
M A
1
1 1 0 0 1 0 200 200
M A
2
1
P.E
0 1 0 0 0 80 80 KR
60
0 S
2
0 1 0 1 0 1 60 a
Z
j
C
j
2M+3 - KC M+8 M 0 0 0
SimplexTable2
C
j
3 8 0 0 M
C.B B.V x
1
x
2
S
1
S
2
A
1
Qty Ratio Transformation
M A
1
0 1 1 0 1 120 120 R
1
1
=R
1
R
2
1
3 x
1
1 0 1 0 0 80 a R
2
1
=R
2
0 S
2
0 1
P.E
0 1 0 60 60 K
R
R
3
1
=R
3
Z
j
C
j
0
M+8-
KC
M+
3
0 0
SimplexTable3
C
j
3 8 0 0
C.B B.V x
1
x
2
S
1
S
2
A
1
M A
1
0 0 1
P.E
1 1 60 60
R
1
1
=R
1
3 x
1
1 0 1 0 0 80 ve R
2
1
=R
2
8 x
2
0 1 0 1 0 60 a R
3
1
=R
3
R
1
1
Z
j
C
j
0 0
M+3 -
KC
M8 0 0
SimplexTable4
C
j
3 8 0 0
C.B B.V x
1
x
2
S
1
S
2
0 S
1
0 0 1 1 60 ve R
1
1
=R
1
3 x
1
1 0 0 1 140 ve R
2
1
=R
2
+R
1
1
8 x
2
0 1 0 1
P.E
60 80 K
R
R
3
1
=R
1
1
Z
j
C
j
0 0 0 5
SimplexTable5
61
C
j
3 8 0 0
C.B B.V x
1
x
2
S
1
S
2
0 S
1
0 1 1 0 120 R
1
1
=R
1
+R
3
1
3 x
1
1 1 0 0 200 R
2
1
=R
2
+R
3
1
0 S
2
0 1 0 1 60 R
3
1
=R
3
Z
j
C
j
0 4 0 0
SinceallZ
j
C
j
0,theoptimumsolutionisx
1
=200 x
2
=0
MinZ=60
3.8. Summary
InthisunitwesolvedtheL.P.Pbysimplexmethod.Theconstraintsforwhichslack,surplusand
artificialvariablestobeintroducedandthemethodofsolvingL.P.Pisexplainedwithexamples.
TerminalQuestions
1. Maximize z=3x
1
x
2
Subjectto2x
1
+x
2
2
x
1
+3x
2
3
x
2
4,
x
1
,x
2
0.
2. MinimizeZ=6x
1
+7x
2
x
1
+3x
2
12
3x
1
+x
2
12
x
1
+x
2
8
x
1
+x
2
0
1.False 2.True
1.True 2.True
62
1.Yes 2.Yes 3.No
1.Yes 2.Yes
AnswerForTerminalQuestions
1. Z=9 x
1
=3 x
2
=0
2. Z=5.8 x
1
=8/3 x
2
=6
63
Unit4 DualityinL.P.P
Structure
4.1 Introduction
4.2. Importanceofdualityconcept
4.3. FormulationofDualconcept
4.4. EconomicinterpretationofDuality
4.3.1EconomicinterpretationofDualvariables:
4.5. Sensitivityanalysis
4.4.1ChangesinC
j
ofanonbasic variable
4.4.2ChangeinC
j
ofaBasicvariable
4.4.3Changeinavailableresources
4.4.4Calculatingtherange
4.6. Summary
TerminalQuestions
AnswertoSAQsandTQs
4.1 Introductions
Every linear programming problem has associated with it, another linear programming
probleminvolvingthesamedataandcloselyrelatedoptimalsolutions.Suchtwoproblemsare
saidtobedualsofeachother.Whileoneoftheseiscalledtheprimal,theotherthedual.
LearningObjectives:
1. Understandthedualityconcept
2. Writethedualproblem
3. Understanditseconomicalinterpretation
4. Applysensitivityanalysis
64
4.2. TheImportanceOfDualityConceptIsDueToTwoMainReasons
i) If theprimal containsalarge number of constraintsand a smaller number ofvariables, the
labour of computation can be considerably reduced by converting it into the dual problem
andthensolvingit
ii) The interpretation of the dual variable from the loss or economic point of view proves
extremelyusefulinmakingfuturedecisionsintheactivitiesbeingprogrammed.
StateYesorNo
1. DualL.P.Palwaysreducestheamountofcomputation.
2. ItispossibletoreversethedualL.P.PtoprimalL.P.P.
4.2. Formulationofdualproblem
ConsiderthefollowingL.P.P
MaximizeZ=c
1
x
1
+c
2
x
2
+...+c
n
x
n
a
11
x
1
+a
12
x
2
+...+a
1n
x
n
b
1
a
21
x
1
+a
22
x
2
+...+a
2n
x
n
b
2
a
m1
x
1
+a
m2
x
2
+...+a
mn
x
n
b
m
x
1,
x
2,...,
x
n
0.
Toconstructadualproblem,weadoptthefollowingguidelines:
i) The maximization problem in the primal becomes a minimization problem in the dual and
viceversa
ii) () type of constraints in the primal becomes () type of constraints in the dual and vice
versa.
iii) Thecoefficientsc
1,
c
2,
...,c
n
intheobjectivefunctionoftheprimalbecomeb
1
,b
2
,,b
m
inthe
objectivefunctionofthedual.
iv) The constants b
1
, b
2
,,b
m
in the constraints of the primal becomes c
1,
c
2,
. . .,c
n
in the
constraintsofthedual
v) If the primal has n variables and m constraints the dual will have m variables and n
constraints
vi) Thevariablesinboththeprimalanddualarenonnegative
Thenthedualproblemwillbe
MinimizeW=b
1
y
1
+b
2
y
2
+...+b
m
y
m
subjecttotheconstraints
65
a
11
y
1
+a
21
y
2
+...+a
m1
y
m
c
1
a
12
y
1
+a
22
y
2
+...+a
m2
y
m
c
2
a
1n
y
1
+a
2n
y
2
+...+a
mn
y
m
c
n
y
1,
y
2,...,
y
m
0.
The standard form of L.P.P for maximization must contain type of constraints and for
minimizationproblemitmustcontaintypeofconstraints.ThenitiseasytoformdualL.P.P
Example1:Writedualof
maxZ=4x
1
+5x
2
subjectto 3x
1
+x
2
15
x
1
+2x
2
10
5x
1
+2x
2
20
x
1
,x
2
, 0
Solution: Thegivenproblemisinitsstandardform:
\ Itsdualis
MiniW=15y
1
+10y
2
+20y
3
Subjectto 3y
1
+y
2
+5y
3
4
y
1
+2y
2
+2y
3
5
y
1
,y
2
,y
3
, 0
Example2:Writethedualof
minZ=10x
1
+12x
2
subjectto 2x
1
+3x
2
10
5x
1
+6x
2
20
x
1
+2x
2
15
2x
1
+3x
2
12
x
1
,x
2
, 0
Solution:Thegivenproblemisinitsstandardform.Thereforeitsdualproblemis
MaxW=10y
1
+20y
2
+15y
3
+12y
4
Subjectto 2y
1
+5y
2
+y
3
=2y
4
12
6y
1
+2y
2
+3y
3
10
y
1
,y
2
,y
3
, 0
66
Example3:Writethedualof
maxZ=100x
1
+200x
2
subjectto 3x
1
10x
2
15
+4x
1
+15x
2
20
x
1
,x
2
, 0
Solution:First3x
1
10x
2
15isconvertedtotypeas3x
1
+10x
2
15
Thereforeitsdualis
MiniZ=15y
1
+20y
2
Subjectto 3y
1
+4y
2
100
10y
1
+15y
2
200
y
1
,y
2
, 0
Example4: Whentheconstraintscontain=Sign.
WritethedualofMaxZ=40x
1
+30x
2
subjectto 10x
1
+6x
2
15
5x
1
+6x
2
10
x
1
+x
2
=9
x
1
+x
2
10
x
1
,x
2
, 0
Solution: First5x
1
7x
2
10
Isrewrittenas5x
1
+7x
2
10
Secondlyx
1
+x
2
=9iswrittenas
x
1
+x
2
9
x
1
+x
2
9thisissameas
x
1
x
2
9
ThereforeGivenproblemis
maxZ=40x
1
+30x
2
subjectto 10x
1
+6x
2
15
5x
1
+7x
2
10
x
1
+x
2
9
x
1
x
2
9
67
x
1
,x
2
, 0
Thereforeitsdualis
MiniW=15y
1
+10y
2
+9y
3
1
9y
3
11
Subjectto 10y
1
5y
2
+y
3
1
y
3
11
40
6y
1
+7y
2
+y
3
1
y
3
11
30
y
1
,y
2
,y
3
1
y
3
11
0
Lety
3
1
y
3
11
=y
3
Thenthedualbecomes
MaxW=15y
1
5y
2
+y
3
Subjectto 10y
1
5y
2
+y
3
40
6y
1
+7y
2
+y
3
30
y
1
,y
2
, 0
y
3
isunrestrictedinsign
Example5:
Writethedualof
maxZ=12x
1
+15x
2
subjectto 5x
1
+36x
2
10
x
1
+x
2
5
x
1
0
x
2
isunrestrictedinsign
Solution:
Let x
2
=x
2
1
x
2
11
0
\ Itsstandardformis
maxZ=12x
1
+15x
2
1
15x
2
11
subjectto 5x
1
+3(x
2
1
x
2
11
)10
[x
1
+(x
2
1
x
2
11
)]5
Orx
1
x
2
1
+x
2
11
5
x
1
,x
2
1
,x
2
11
0
Thereforedualis
5y
1
y
2
12(1)
3y
1
y
2
15(2)
3y
1
+y
2
15(3)
68
No.3constraintis3y
1
y
2
15(4)
ConstraintsNo.2andNo.4gives
3y
1
y
2
=15
Thedualproblemis
MaxW=10y
1
15y
2
Subjectto
5y
1
y
2
12
3y
1
y
2
=15
y
1
0y
2
unrestrictedinsign
Example6:WritethedualofthefollowingL.P.P
minimizeZ=3x
1
2x
2
+4x
3
subjectto 3x
1
+5x
2
+4x
3
7
6x
1
+x
2
+3x
3
4
7x
1
2x
2
x
3
10
x
1
2x
2
+5x
3
3
4x
1
+7x
2
2x
3
2,
x
1
,x
2
,x
3
0
Solution:Sincetheproblemisof minimizationallconstraintsshouldbeoftype.Wemultiply
thethirdconstraintthroughoutby1sothat7x
1
+2x
2
+x
3
10
Lety
1
,y
2
,y
3
,y
4
andy
5
bethedualvariablesassociatedwiththeabovefiveconstraints.Thenthe
dualproblemisgivenby:
MaximizeW=7y
1
+4y
2
10y
3
+3y
4
+2y
5
Subjectto 3y
1
+6y
2
7y
3
+y
4
+4y
5
3
5y
1
+y
2
+2y
3
2y
4
+7y
5
2
4y
1
+3y
2
+y
3
+5y
4
2y
5
4
y
1
,y
2
,y
3
,y
4
,y
5
0
Fillintheblanks
1. The coefficients of decision variable sin the objective function becomes quantities on right
handsideof___________________.
2. constraintschangesto________typeindualL.P
69
3. ForeveryL.P.Pthereexistsaunique________problem.
4.4 Economicinterpretationofduality
Thelinearprogrammingproblem canbethoughtof as a resourceallocation modelin whichthe
objective is to maximize revenue or profit subject to limited resources. Looking at the problem
fromthispointofview,theassociateddualproblemoffersinterestingeconomicinterpretationsof
theL.Presourceallocationmodel.
We consider here a representation ofthe general primal and dualproblems in which theprimal
takestheroleofaresourceallocationmodel.
Primal Dual
Maximize Minimize
=
=
n
1 j
j j
x . c z
=
=
m
1 i
i i
y . b w
subjectto subjectto
=
=
n
1 j
i j ij
. m ..., , 2 , 1 i , b x a
=
=
m
1 i
i i ij
. n ..., , 2 , 1 j , c y a
x
j
0,j=1,2,.,n y
j
0,i=1,2,.,m
From theabove resourceallocation model, theprimal problemhasn economic activities and m
resources.Thecoefficientc
j
intheprimalrepresentstheprofitperunitofactivityj.Resourcei,
whosemaximumavailabilityisb
i
,isconsumedattheratea
ij
unitsperunitofactivityj.
4.4.1 EconomicinterpretationofDualvariables:
Foranypairoffeasibleprimalanddualsolutions,
(Objectivevalueinthemaximizationproblem)(Objectivevalueintheminimizationproblem)
Attheoptimum,therelationshipholdsasastrictequation.
Note:Herethesenseofoptimizationisveryimportant.
Henceclearlyforanytwoprimalanddualfeasiblesolutions,thevaluesoftheobjectivefunctions,
whenfinite,mustsatisfythefollowinginequality.
70

= -
= =
n
1 j
m
1 i
i i j j
w y b x c z
Thestrictequality,z=w,holdswhenboththeprimalanddualsolutionsareoptimal.
Consider the optimal condition z=w first given that the primal problem represents a resource
allocationmodel, wecanthinkofzasrepresentingprofitinRupees.Becauseb
i
representsthe
number ofunitsavailableof resourcei, theequation z=w can be expressed asprofit (Rs) =
(unitsofresourcei)x(profitperunitofresourcei)
Thismeansthatthedualvariablesy
i
,representtheworth perunitofresourcei [variablesy
i
are
alsocalledasdualprices,shadowpricesandsimplexmultipliers].
With the same logic, the inequality z<w associated with any two feasible primal and dual
solutionsisinterpretedas(profit)<(worthofresources)
Thisrelationshipimpliesthataslongasthetotalreturnfromalltheactivitiesislessthantheworth
of the resources, the corresponding primal and dual solutions are not optimal. Optimality is
reachedonly whentheresourceshavebeenexploitedcompletely, whichcanhappenonly when
theinputequalstheoutput(profit).
Economically the system is said to remain unstable (non optimal) when the input (worth of the
resources)exceedstheoutput(return). Stabilityoccursonlywhenthetwoquantitiesareequal.
StateTrueorFalse
1. Dualvariablesrepresenttheworth/unitofresource.
2. Optimalityisreachedwhentheresourcesarenotfullyutilized.
3. Atoptimum,therelationshipholdsasastrictequation.
4.5 Sensitivityanalysis
In linear programming, all model parameters are assumed to be constant but in real life
situations, the decision environment is always dynamic. Therefore, it is important for the
management to knowhow profit wouldbe affected by an increase or decrease in the resource
level, by a change in the technological process, and by a change in the cost of raw materials
.SuchaninvestigationisknownasSensitivityanalysisor postoptimalityanalysis.Theresultsof
71
sensitivityanalysisestablishupperandlowerboundsforinputparametervalueswithinwhichthey
canvarywithoutcausingmajorchangesinthecurrentoptimalsolution.
Fore.g.:luminouslampsproducesthreetypesoflampsA,BAndC.Theselampsareprocessed
onthreemachinesX,YandZ.thefulltechnologyandinputrestrictionsaregiveninthefollowing
table
Product
Machine
ProfitPerUnit
M1 M2 M3
A 10 7 2 12
B 2 3 4 3
C 1 2 1 1
Availabletime 100 77 80
TheLinearProgrammingmodelfortheaboveproblemcanbewrittenas
Maximize Z=12x
1
+3x
2
+x
3
subjectto
10x
1
+2x
2
+x
3
100
7x
1
+3x
2
+2x
3
77
2x
1
+4x
2
+x
3
80
x
1
,x
2
,x
3
0
Solvingtheaboveproblembythesimplexmethod
x
1
=
8
73
,x
2
=
,
8
35
x
3
=0
andtheoptimalvalueoftheobjectivefunctionis
8
981
First we find out whether a previously determined optimal solution remains optimal if the
contributionrateischanged.AnincreaseinC
j
ofavariablewouldmeanthatresourcesfromother
productsshouldbedivertedtothismoreprofitableproduct.Thereverseistrueforaminimization
problem
72
4.5.1 ChangesinC
j
ofanonbasic variable:
Anonbasicvariablecanbebroughtintothebasisonlyifitscontributionratebecomesattractive.
Hence, we need to determine the upper limit of the profit contribution (C
j
) of each non basic
variable.Thereverseistrueforaminimizationproblem.
Considerthefinalsimplextableoftheaboveproblem
C
j
12 3 1 0 0 0
C
B
Basic
variables
B
x
1
x
2
x
3
X
4
x
5
x
6
Solution
values
b(=x
B
)
12
x
1
1 0
16
1
16
3
8
1
0
8
73
3 x
2
0 1
16
13
16
7
8
5
0
8
35
0 x
6
0 0
8
17
8
11
4
9
1
4
177
z
j
12 3
16
27
16
15
8
3
0
z
j
c
j
0 0
16
11
16
15
8
3
0
Fromtheabovefinalsimplextable,wenotethatprofitcontributionforproductCisRs1,whichis
notgreaterthanitsz
j
.Thustobringx
3
intothebasis,itsprofitcontributionratec
j
mustexceed
Rs
16
27
tomakez
j
c
j
valuenegativeorzero.(i.e.z
j
c
j
0)
Specifically
Ifc
j*
c
j
>z
j
c
j
,thenanewoptimalsolutionmustbederived
Ifc
j*
c
j
=z
j
c
j
,thenalternativeoptimalsolutionexist.
Ifc
j*
c
j
<z
j
c
j
,thencurrentoptimalsolutionremainsunchanged
Inthiscasec
3
=1andz
3
c
3
=
16
11
then
C
3*
1
16
11
C
3*
16
11
+1=
16
27
73
x
3
can be introduced into the basis if its contribution rate c
3
increase upto atleast Rs
16
29
, if it
increasesbeyondthatthenthecurrentsolutionwillnolongerbeoptimal.
4.5.2 ChangeinC
j
ofaBasicvariable
LetusconsiderthecaseofproductA(x
1
column)anddivideeachz
j
c
j
entryintheindexrowbythe
correspondingcoefficientsinthex
1
rowasshownbelow
Minimum

<
-
-

>
-
0 y
y
C 2
Minimum 0 y
y
C 2
ij
ij
j j
1 ij
ij
j j
D
Referringtothefinalsimplextable, weobservethatcorrespondingtothenonbasicvariablesx
3
andx
5
,y
13
,y
15
<0
Hence,minimum

- -

- -
8
1
8
3
,
16
1
16
11
=minimum(11,3)=3
Correspondingtothenonbasicvariablex
4
,y
14
>0.
Hence,minimum

16
3
16
15
=5
Hence5 c
1
*
12 3i.e.7 c
1
*
15
Thus the optimal solution is insensitive so long as the changed profit coefficient c
1
*
varies
betweenRs7andRs.15
4.5.3 Changeinavailableresources
Now we investigate whether a previous optimal solution remains feasible if the available
resources change. For long term planningitis important to know the bounds within whicheach
available resource (e.g. machine hours) canvary without causingviolentchangesin the current
optimal solution. To illustrate divide each quantity in the X
B
column by the corresponding
coefficientintheX
4
columnoftable
X
B
X
4
X
X
4
B
8
73
16
3
3
146
74
8
35
16
7 -
10
4
177
8
11
11
354
The least positive ratio

11
354
indicates to how the number of hours of machine M
1
can be
decreased.Theleastnegativeratio(10)indicatestohowmuchthenumberofhoursofmachine
M
1
canbeincreased
4.5.4 Calculatingtherange:
Lowerlimit=100
11
354
=
11
746
Upperlimit=100(10)=110
HencetherangeofhoursforM
1
is
11
746
to110,Bythesamewaytherangeofhoursformachine
M
2
andM
3
canbecalculated
Themanagementofa companyrarelyrestrictsitsinteresttothenumericalvaluesofanoptimal
solution.Actuallyitisinterestedinknowingtheimpactofchangesintheinput parametervalues
ontheoptimalsolution.Suchaprocessisknownassensitivityanalysis.
Fillintheblanks
1. Sensitivityanalysisiscarriedouton__________simplextable.
2. Ithelpsustostudytheeffectofchangesin__________________onobjectivefunction.
3. Theresultsofsensitiveanalysisestablishes_____________and____________________
forinputparametersvalue.
4.6.Summary
For every linear programming problem there exists a Dual liner programming
problems.TheyhelpustoreducetheamountofcalculationinvolvedinoriginalL.P.P.Theyalso
helpustointerprettheeconomicvariablesmoreeffectively.
75
TerminalQuestions
1. Writethedualof.
Maximize 2=7x
1
+5x
2
Subjectto Constraints
x
1
+2x
2
6
4x
1
+3x
2
12
x
1
x
2
0
2. Maximizez=3x
1
+4x
2
subjectto5x
1
+4x
2
2003x
1
+5x
2
1505x
1
+4x
2
1008x
1
+4x
2
80,x
1
0,x
2
0.
3. Maximizez=2x
1
+x
2
subjectto4x
1
+3x
2
12,4x
1
+x
2
8,4x
1
x
2
8,x
1
,x
2
0.
1.No 2.Yes
1.Dual 2. 3.Dual
SelfAssessmentQuestions 3
1.True 2.False 3.True
1.Final
2.Resource,levels
3.Upper,lower,bounce
AnswerstoTerminalQuestions
1. MinimiseW=6y
1
+12y
2
s.ty
1
+4y
2
7
2y
1
+3y
2
5
y
1
+y
2
0
2. Minimisew=200y
1
+150y
2
100y
3
80y
4
S.t5y
1
+3y
2
5y
3
8y
4
3
76
4y
1
+5y
2
4y
3
4y
4
4
y
1
,y
2
,y
3
,y
4
0
3. Minimisew=12y
1
+8y
2
+8y
3
S.t4y
1
+4y
2
+4y
3
2
3y
1
+y
2
y
3
1
y
1
,y
2
,y
3
, 0
77
Unit5 TransportationProblem
Structure
5.1. Introduction
5.2. FormulationofT.P
5.3. TransportationAlgorithm
5.4. Theinitialbasicfeasiblesolution
5.4.1NorthWestCornerRule
5.4.2MatrixMinimumMethod
5.4.3Vogelsapproximationmethod
5.5. Movingtowardsoptimality
5.5.1Improvingthesolution
5.5.2 ModifiedDistributionMethod/MODIMethod/UVmethod.
5.5.3 Degeneracyintransportationproblem
5.6. Summary
5.7. TerminalQuestions
5.8. AnswerstoSAQsandTQs
5.1Introduction
Herewestudyanimportantclassoflinearprogramscalledthetransportationmodel.Thismodel
studies the minimization of the cost of transporting a commodity from a number of sources to
severaldestinations.Thesupplyateachsourceandthedemandateachdestinationareknown.
The transportation problem involvesm sources,each of which has availablea
i
(i = 1,2, ..,m)
unitsofhomogeneousproductandndestinations,eachofwhichrequiresb
j
(j=1,2.,n)unitsof
products.Herea
i
andb
j
arepositiveintegers.Thecostc
ij
oftransportingoneunitoftheproduct
from thei
th
source to thej
th
destinationis givenfor each i and j. The objectiveis to develop an
integral transportation schedule that meets all demands from the inventory at a minimum total
transportationcost.
Itisassumedthatthetotalsupplyandthetotaldemandareequal.
i.e.

=
=
=
n
1 j
m
1 i
i
bj a (1)
78
Thecondition(1)isguaranteedbycreatingeitherafictitiousdestinationwithademandequalto
thesurplusiftotaldemandislessthanthetotalsupplyora(dummy)sourcewithasupplyequal
to the shortage if total demand exceedstotalsupply.Thecostoftransportationfromthefictitious
destinationtoallsourcesandfromalldestinationstothefictitioussourcesareassumedtobezero
sothattotalcostoftransportationwillremainthesame.
LearningObjectives:
1. Toformulatethetransportationproblem.
2. Findtheinitialbasicfeasiblesolution
3. Comparetheadvantagesofvariousmethodsoffindinginitialbasicfeasiblesolution.
4. Handleandsolvethedegeneracyinthetransportationproblem.
5. Applythemodeltominimizethecostoftransportingacommodity.
5.2 FormulationOfTransportationProblem
Thestandardmathematicalmodelforthetransportationproblemisasfollows.
Let x
ij
be number of units of the homogenous product to be transported from
sourceitothedestinationj
Thenobjectiveisto
Minimizez=
ij
m
1 i
n
1 j
ij
x C

= =
Subjectto

= =
= =

=
=
n ., .......... , 2 , 1 ij bj x
m , ...... , 2 , 1 i , a x
m
1 i
ij
n
1 j
i ij
(2)
withallx
ij
0andintegrals
Theorem: A necessary and sufficient condition for the existence of a feasible solution to the
transportationproblem(2)isthat
79

= =
=
n
1 j
m
1 i
i
bj a
Fillintheblanks
1. Transportationproblemsareaspecialtypeof___________.
2. Thenumberofrowsandcolumnsneednotalwaysbe___________.
3. Transportationproblemdevelopsascheduleat__________________.
5.3 TheTransportationAlgorithm(MODIMethod)
Thefirstapproximationto(2)isalwaysintegralandthereforealwaysafeasiblesolution.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
algorithmisthesimplexmethodspecializedtotheformatoftableitinvolves:
i) findinganintegralbasicfeasiblesolution
ii) testingthesolutionforoptimality
iii) improvingthesolution,whenitisnotoptimal
iv) repeatingsteps(ii)and(iii)untiltheoptimalsolutionisobtained.
ThesolutiontoT.Pisobtainedintwostages.InthefirststagewefindBasicfeasiblesolutionby
any one of the following methods a) Northwest corner rale b) Matrix Minima Method or least
cost method c) Vogels approximation method. In the second stage we test the B.Fs for its
optimalityeitherbyMODImethodorbysteppingstonemethod.
D
1
D
2
D
n
Supply u
i
S
1
x
11
x
12
x
1n
a
1
u
1
S
2
x
21
x
22
x
2n
a
2
u
2
S
3
x
31
x
32
x
3n
a
3
u
3
C11
C21
C31
Cm1
C12
C22
C32
Cm2
C1n
C2n
C3n
Cmn
80
S
m
x
m1
x
m2
x
mn
a
m
u
m
Demand b
1
b
2
b
n a
i
= b
i
v
j
v
1
V
2
v
m
TransportationTable
StateYesorNo
1. InT.P a
i
= b
j
forgettingafeasiblesolution.
2. T.Pcanalsobesolvedbysimplexmethod.
3. Matrixminimamethodgivesoptimumsolution.
5.4 TheInitialBasicFeasibleSolution
Letus consider a T.Pinvolving morigins andndestinations. Sincethe sumof 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 afeasible solution to a T.P can have at the most only m+n 1
strictlypositivecomponents,otherwisethesolutionwilldegenerate.
It isalwayspossibletoassignaninitialfeasiblesolutiontoaT.P.insuchamannerthattherim
requirementsaresatisfied.Thiscanbeachievedeitherbyinspectionorbyfollowingsomesimple
rules. We begin by imagining that the transportation table is blank i.e. initially all x
ij
= 0. The
simplestproceduresforinitialallocationdiscussedinthefollowingsection.
5.4.1 NorthWestCornerRule
Step1: Thefirstassignmentismadeinthecelloccupyingtheupperlefthand(northwest)corner
of the transportation table. The maximum feasible amount is allocated there, that is x
11
= min
(a
1
,b
1
)
SothateitherthecapacityoforiginO
1
isuseduportherequirementatdestinationD
1
issatisfied
orboth.Thisvalueofx
11
isenteredintheupperlefthandcorner(smallsquare)ofcell(1,1)inthe
transportationtable
Step2: Ifb
1
>a
1
thecapacityoforiginO,isexhaustedbuttherequirementatdestinationD
1
is
81
stillnotsatisfied,sothatatleastonemoreothervariableinthefirstcolumnwillhavetotakeona
positive value. Move down vertically to the second row and make the second allocation of
magnitude
x
21
=min(a
2
,b
1
x
21
)inthecell(2,1).ThiseitherexhauststhecapacityoforiginO
2
orsatisfies
theremainingdemandatdestinationD
1
.
If a
1
> b
1
the requirement at destination D
1
is satisfied but the capacity of origin O
1
is not
completelyexhausted.Movetotherighthorizontallytothesecondcolumnandmakethesecond
allocation of magnitude x
12
= min
(a
1
x
11
,b
2
)inthecell(1,2).ThiseitherexhauststheremainingcapacityoforiginO
1
orsatisfies
thedemandatdestinationD
2
.
If b
1
= a
1
, the origin capacity of O
1
is completely exhausted as well as the requirement at
destination is completely satisfied. There is a tie for second allocation, An arbitrary tie breaking
choiceismade.Makethesecondallocationofmagnitudex
12
=min(a
1
a
1
,b
2
)=0inthecell(1,
2)orx
21
=min(a
2
,b
1
b
2
)=0inthecell(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
rightcornerofthetransportationtableuntilalltherimrequirementsaresatisfied.
Example 1: Determine an initial basic feasible solution to the following transportation problem
usingthenorthwestcornerrule:
D
1
D
2
D
3
D
4
0
1
6 4 1 5 14
0
2
8 9 2 7 16 Availability
0
3
4 3 6 2 5
6 10 15 4 35
Requirements
WhereO
i
andD
j
representthei
th
originandthej
th
destinationrespectively.
Solution: ThetransportationtableofthegivenT.P.has12cells.
Followingnorthwestcornerrule,the
Firstallocationismadeinthecell
(1,1),themagnitudebeing
x
11
=min(14,6)=6
Thesecondallocationismade
inthe610154cell(1,2)andthe
14
16
5
610154
82
magnitudeofallocationisgivenby
x
12
=min(146,10)=8
Thethirdallocationismadeinthecell(2,2),themagnitudebeingx
22
=min(16,10
8) = 2. The magnitude of fourth allocation, in the cell
(2, 3) is given by x
23
= min (16 2, 15) = 14. The fifth allocation is made in the cell (3, 3), the
magnitudebeingx
33
=min(5,1514)=1.Thesixthallocationinthecell(3,4)isgivenbyx
34
=min
(51,4)=4.
NowalltherimrequirementshavebeensatisfiedandhenceaninitialfeasiblesolutiontotheT.P.
hasbeenobtained.Thesolutionisdisplayedas
D
1
D
2
D
3
D
4
0
1
0
2
0
3
6
6
8
4 4 5
14
8
2
9
14
2
16
4 3
1
6
4
2
5
6 10 15 4
Clearly,thisfeasiblesolutionisnondegeneratebasicfeasiblesolutionfortheallocatedcellsdo
notformaloop.Thetransportationcostaccordingtotheaboveloopisgivenby.
Z=x
11
c
11
+x
12
c
12
+x
22
c
22
+x
23
c
23
+x
33
c
33
+x
34
c
34
= 6 6 + 4 8 + 9 2 + 2 14 + 2 4 6 1 +
=128
5.4.2MatrixMinimumMethod
Step 1: Determine the smallest cost in the cost matrix of the transportation table. Let it be c
ij
,
Allocatex
ij
=min(a
i
,b
j
)inthecell(i,j)
Step2: Ifx
ij
=a
i
crossoffthei
th
rowofthetransportationtableanddecreaseb
j
bya
i
gotostep3.
ifx
ij
=b
j
crossoffthei
th
columnofthetransportationtableanddecreasea
i
byb
j
gotostep3.
ifx
ij
=a
i
=b
j
crossoffeitherthei
th
roworthei
th
columnbutnotboth.
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
amongtheminima.
83
Example2:ObtainaninitialbasicfeasiblesolutiontothefollowingT.P.usingthematrixminima
method.
D
1
D
2
D
3
D
4
0
1
1 2 3 4 6
0
2
4 3 2 0 8 Capacity
0
3
0 2 2 1 10
4 6 8 6 24
Demand
Where0
i
andD
i
denotei
th
originandj
th
destinationrespectively.
Solution: The transportationtable of thegivenT.P.has12 cells. Followingthe matrix minima
method.
The first allocation is made in the cells (3,1) the magnitude being x
21
= 4. This satisfies the
requirement at destination D
1
and thus we cross offthefirst columnfrom the table. The second
allocationismadeinthecell(2,4)magnitudex
24
=min(6,8)=6.Crossoffthefourthcolumnof
thetable.Thisyieldsthetable(i)
1 2 3 4
4 3 2 8
0 2 2 2
(i) (ii)
There is again a tie for the third allocation. We choose arbitrarily the cell
(1,2)andallocatex
12
=min(6,6)=6there.Crossoffeitherthesecondcolumnofthefirstrow
.Wechoosetocrossoffthefirstrowofthetable.Thenextallocationofmagnitudex
22
=0ismade
inthecell(3,2)crossoffthesecondcolumngettingtable(ii)
(iii) (iv)
2
1 2 3 4
4 3 2 0
0 2 2 1
4
6
6 4 0 0
6
2
6
2
6
2
2
2
4
6
6
6
0 4
6
2
6
6
8
10
4 6 8 6 6 8
6
6
84
Wechoosearbitrarilyagaintomakethenextallocationincell(2,3)ofmagnitudex
23
=min(2,8)
=2crossoffthesecondrowthisgivestable(iii).Thelastallocationofmagnitudex
23
=min(6,
6)=6ismadeinthecell(3,3).
Nowalltherimrequirementshavebeen satisfied andhenceaninitialfeasiblesolutionhasbeen
determined.Thissolutionisshownintable(iv)
Sincethecellsdonotformaloop,thesolutionisbasicone.Moreoverthesolutionisdegenerate
also.Thetransportationcostaccordingtotheaboverouteisgivenby
Z= 2 6 + 2 2 + 0 6 + 0 4 + 2 6 2 0 +
=28
5.4.3VogelsApproximationMethod
TheVogelsApproximationMethodtakesintoaccountnotonlytheleast cost c
ij
butalsothecost
thatjustexceedsc
ij
.Thestepsofthemethodaregivenbelow.
Step 1: For each row of the transportation table identify the smallest and the nest to smallest
costs. Determine the difference between them for each row. Display them alongside the
transportation table by enclosing them in parenthesis against the respective rows. Similarity
computethedifferencesforeachcolumn.
Step2: Identifytheroworcolumnwiththelargestdifferenceamongalltherowsandcolumns.If
atieoccurs,useanyarbitrarytiebreakingchoice,letthegreatestdifferencecorrespondtothei
th
rowandletC
ij
bethesmallestcostinthei
th
row.Allocatethemaximumfeasibleamountx
ij
=min
(a
i
,b
j
)inthe(i,j)
th
cellandcrossoffthei
th
roworthej
th
columnintheusualmanner.
Step3: Recomputethecolumnandrowdifferencesforthereducedtransportation tableandgo
tostep2.Repeattheprocedureuntilalltherimrequirementsaresatisfied.
Remarks:
1. Aroworcolumndifferenceindicatestheminimumunitpenaltyincurredbyfailingtomakean
allocationtothesmallestlostcellinthatroworcolumn.
2. It is clear that VAM determines an initial basic feasible solution which is very close to the
optimum solution, that is, the number of iterations required to reach the optimal solution is
smallinthiscase
85
Example3:
Obtain an initial basic feasible solution to the following T.P using the Vogels approximation
method:
Warehouses
Stores
Availability
I II III IV
A 5 1 3 3 34
B 3 3 5 4 15
C 6 4 4 3 12
D 4 1 4 2 19
Requirement 21 25 17 17 80
Solution: The transportation table of the given T.P has 16 cells. The differences between the
smallest and next to smallest costs in each row and each column are computed and displayed
insidetheparenthesisagainsttherespectivecolumnsandrows.Thelargestofthesedifferences
is(3)andisassociatedwiththefourthrowofthetransportationtable.
TheminimumcostinthefourthrowisC
42
=1.Accordinglyweallocatex
42
=min(19,25)=19in
thecell(4,2).ThisexhauststheavailabilityatwarehouseD.Crossoffthefourthrow.Therow
andcolumndifferencesarenowcomputedfortheresultingreducedtransportationtable(ii).
5 1 3 3
3 3 5 4
6 4 4 3
4
19
1 4 2
thelargestofthisis(2)andisassociatedwiththefirstrowaswellasthefirstandsecondcolumn.
Weselectarbitrarilythefirstrow whoseminimumcostisC
12
=1. Thusthesecondallocationof
magnitudex
12
=min(34,6)=6ismadeinthecell(1,2)Crossoffthesecondcolumnfromthe
table. Continuing inthis way, the subsequent reducedtransportationtablesandthe differences
forthesurvivingrowsandcolumnsareshowninfig(iii)
56
1
3 3
3 3 5 4
6 4 4 3
19
34(2)
15(0)
12(1)
19(3)
34(2)
15(0)
12(1)
21 25 17 17
(1) (2) (1) (1)
(i)
21 6 17 17
(2) (2) (1) (0)
(ii)
86
28
(0)
15
(1)
12(1)
21
(2)
17
(1)
17
(0)
Fig(iii)
Eventually,thebasicfeasiblesolutionisobtainedasshownintable(iv)below:
Table(iv)
Thetransportationcostaccordingtotheaboverouteisgivenby:
Z=6x5+6x1+17x3+5x3+15x3+12x3+19x(1)=164.
StateTrueorFalse
1. InMatrixminimamethodwestartallocatingfromlefttopcellofthetable.
2. Invogelsapproximationmethodwefirstconstructpenaltyandthenstartallocating.
3. NorthwestcornerRulegivesoptimumsolution.
4. Vogelapproximationmethodgivessolutionneartotheoptimumsolution
5.5MovingTowardsOptimality
AfterevaluatinganinitialbasicfeasiblesolutiontoaTransportationproblem,thenextquestionis
howtogettheoptimumsolution.Thebasictechniquesare:
5 3 3
3 5 4
6
4 3
15
5
1 3
6 6 5
3
17
3 3 4
15
5
6 4 3
12
4
4 1 2
18
4
5 3 3 28(0)
6 4
12
3 12(1)
6 17 17
(1) (1) (0)
6
5
17
3
5
3
6 17 5
87
1. Determiningthenetevaluationsforthenon basicvariables(emptycells)
2. Determiningtheenteringvariable
3. Determiningtheleavingvariable
4. Computingabetterbasicfeasiblesolution
5. Repeatingsteps(1)to(4)untilanoptimumsolutionhasbeenobtained.
5.5.1 Improvingthesolution
Definition: Aloopisthesequenceofcellsinthetransportationtablesuchthat:
i) Eachpairofconsecutivecellslieeitherinthesameroworsamecolumn
ii) Nothreeconsecutivecellsliesinthesameroworsamecolumn
iii) Thefirstandthelastcellsofthesequenceliesinthesameroworcolumn
iv) Nocellappearsmorethanonceinthesequence
Considerthenonbasicvariablecorrespondingtothemostnegativeofthequantities.
c
ij
u
i
v
j
.Calculatedinthetestforoptimalityitismadetheincomingvariable.Constructa
loopconsistingexclusivelyofthisincomingvariable(cell)andcurrentbasicvariables(cells).
Then allocate to the incoming cell as many units as possible such that, after appropriate
adjustments have been made to the other cells in the loop, the supply and demand
constraints are not violated, all allocations remain nonnegative and one of the old basic
variableshasbeenreducedtozero.(whereuponitceasestobebasic)
ModifiedDistributionMethod/ModiMethod/UVMethod.
Step1:Underthismethodweconstructpenaltiesforrowsandcolumnsbysubtractingtheleast
valueofrow/columnfromthenextleastvalue.
Step 2: We select the highest penalty constructed for both row and column. Enter that row /
columnandselecttheminimumcostandallocatemin(a
i
,b
j
)
Step3:Deletetheroworcolumnorbothiftherimavailability/requirementsismet.
Step4:Werepeatsteps1to2totillallallocationsareover.
Step5:Forallocationallformequationu
i
+v
j
=c
j
setoneofthedualvariableu
i
/v
j
tozeroand
solveforothers.
Step6:Usethesevaluetofind D
ij
=c
ij
u
i
v
j
ofall D
ij
,thenitistheoptimalsolution.
88
Step7:Ifany D
ij
0,selectthemostnegativecellandformloop.Startingpointoftheloopis+ve
andalternativelytheothercornersoftheloopareveand+ve.Examinethequantitiesallocated
atveplaces.Selecttheminimum.Additat+veplacesandsubtractfromveplace.
Step8:Formnewtableandrepeatsteps5to7till D
ij
0
BalancedT.P
Example4:
Solvethefollowingtransportationproblem withcostcoefficientsdemandsandsuppliesasgiven
inthefollowingtable:
Destinations
A B C Supply
SourcesI
II
III
6 8 4 14
12
5
4 9 8
1 2 6
Demand 6 10 15
Sincetotaldemand=31=Totalsupply,theproblemisbalanced.
TheinitialbasicfeasiblesolutionisobtainedbyVogelsapproximationmethod.Thefollowing
tablegiventheinitialsolution:
Supply
6 8 4
14 14
12
5
4
6
9
5
8
1
1 2
5
6
Demand 6 10 15
Destination
89
D
1
D
2
D
3
Sources
The optimum allocations are x13 = 14, x21 = 6, x22 = 5, x23 = 1, x32 = 5. The minimum
transportationcostis144+64+59+18+52=143.
Forallocatedcells.
u
1
+v
3
=4 u
1
=4
PSetu
2
=0
Pu
1
+v
3
=4 u
1
=4
Pu
2
+v
2
=9 v
1
=4
Pu
2
+v
3
=8 v
2
=9
u
3
+v
2
=5 v
3
=8
Forunallocatedcells D
ij
=c
ij
u
i
v
j
D
11
=6(4)4=6
D
12
=8(4)9=3
D
31
=1(4)4=1
D
33
=6(4)8=2
Sinceall D
ij
0theoptimumsolutionu
X
13
=14x4=56
X
21
=6x4=24
X
22
=5x9=45
1 6 8 4
14
14
2 4
6
9
5
8
1
12
3 1 2
5
6 5
6 10 15
Supply
Note:
Selectthatvariableu
i
/v
i
isrepeatedvery
oftenforeasycalculation.Hereu
2
is
repeatedoften
90
X
23
=1x8=8
X
32
=5x2=10
Totalcost=143
UnbalancedT.P
Example5
A car company is faced with an allocation problem resulting from rental agreement that allow
cars to be returned to locations other than those which they were originally rented. At the
presenttimetherearetwocarswith15and13simplexcarsrespectivelyand4locationsrequiring
9,6,7and9carsrespectively.Theunittransportationcosts(indollars)betweenthelocationsan
givenbelow:
Destinations
D1 D2 D3 D4
Sources S1 45 17 21 30
S2 14 18 19 31
Obtainaminimumcostschedule.
Solution:
SincethesupplyandrequirementsarenotequalitiscalledanunbalancedT.P.ingeneralif
Sa
i
Sb
j
thenitiscalledanunbalancedT.P.weintroducedeitheradummyroworadummy
column with cost zero an quantity Sb
i
Sa
j
respectively. Applying VAM Method we find
B.F.SasDestinations
D1 D2 D3 D4 P
1
P
2
P
3
P
4
45 17
6
21
3
30
6
15/9/6
44411

14
9
18 19
4
31
13/4
44112

0 0 0 0
3
3
0
9/0 6 7/3 9/6
P
1
14171930-
S1
Sources S2
S3
1
st
Cancel
Demand
91
P
2
31- 121
P
3
121
P
4
21
X
34
=Min[3,9]=3x10 = 0
X
21
=Min[13,9]=9x14 = 126
X
12
=Min[15,6]=6x17 = 102
X
23
=Min[4,7]=4x9 = 76
X
14
=Min[6,6]=6x30 = 180
TotalCost547
Testingforoptimality
Pu
1
+v
2
=17 PSetu
1
=0
Pu
1
+v
3
=21 u
1
=2
Pu
1
+v
4
=30 u
3
=30
Pu
2
+v
1
=14 v
1
=16
Pu
2
+v
3
=19 v
2
=17
Pu
3
+v
4
=0 v
3
=21
v
4
=30
Forunallocatedcells D
ij
=c
ij
u
i
v
j
D
11
=45016=29
D
22
=8+217=3
D
24
=31+230=3
D
31
=0+3026=4
D
32
=0+3017=13
D
33
=0+3021=9
For nonallocated cells determine c
ij
u
I
v
i
. Since all then quantities are nonnegative, the
current solution is optimal. The minimum transportation cost is =
617+321+630+914+419+3.0=470.
92
Whichachievedbytransportingx12=6carsfromsources1todentition2,x13=3,x14=6cars
fromsources1todestinations3and4respectivelyx21=9andx33=4carsfromsources2to
destinations1and3respectively.
5.5.3 DegeneracyInTransportationProblem
Itwasshownthatabasicsolutiontoanmorigin,ndestinationTransportationproblemcanhave
at most m+n1 positive basic variables (nonzero) and so that otherwise the basic solution
degenerates. It follows that whenever the number of basic cells is less than m+n1, the
transportationproblemisadegenerateone.Thedegeneracycandevelopintwoways:
Case 1: The degeneracy develops while determining an initial assignment via any one of the
initialassignmentmethodsdiscussedearlier.
Toresolvedegeneracy, we augmentthepositivevariablesbyasmanyzerovaluedvariablesas
isnecessarytocompletetherequiredm+n1basicvariables.Thesezerovaluedvariablesare
selectedinsuchamannerthattheresultingm+n1variablesconstituteabasicsolution.The
selectedzerovaluedvariablesaredesignatedbyallocatinganextremelysmallpositivevalueto
each one of them. The cells containing these extremely small allocations are then treated like
any otherbasic cells. The sare keptin the transportation table until temporary degeneracy is
removedoruntiltheoptimumsolutionisattained,whicheveroccursfirst.
Atthatpoint,weseteach=0.
Case2: Thedegeneracydevelopsatsomeiterationstage.Thishappenswhentheselectionof
the entering variable results in the simultaneous drive to zero of two or more current (pre
iteration)basicvariables.
To resolve degeneracy, thepositivevariablesare augmentedby as many zerovaluedvariables
as is necessary to complete m+n1 basic variables. These zerovalued variables are selected
from among those current basicvariables which are simultaneously driven to zero. The rest of
theprocedureisexactlythesameasdiscussedincase1above.
Note: Theextremelysmallvalueisinfinitesimallysmallanditneveraffectsthevalueitisadded
toorsubtractedfrom.
Weintroduceinunallocatedminimumcostcellsuchthatwecannotformaloop
Example: ObtainanoptimumbasicfeasiblesolutiontothefollowingdegenerateT.P.
93
7 3 4 2
From 2 1 3 3 Available
3 4 6 5
4 1 5 10
Demand
Solution:FollowingtheNorthWestCornerrule,aninitialassignmentismadeasshownintable
1. Sincethe basic cellsdonotform aloop, the solutionisbasic. However, since the numberof
basiccellsis4whichislessthan5.(=m+n1)thebasicsolutiondegenerates.
7 3 4
2
2 1 3
3
3 4 6
5
Table1
(Initialassignment)
In order to complete the basis and thereby remove degeneracy, we require only one more
positivebasicvariable.Weselectthevariablex
23
andallocateanegligiblysmallpositivequantity
inthecells(2,3)asshownintable2.
7 3 4
2
2 1 3
3+ =3
3 4 6
5
4 15+ =5
Table2
2
2
1
5
1
2 1
5
94
(Augmentedsolution)
Noticethatevenaftertheinclusionofcell(2,3)inthebasisthebasiccellsdonotformaloop.i.e.
the augmented solution remains basic. The net evaluations can now be computed and the
solutionistestedforoptimality
Startingtable:
Sinceallthenetevaluationsforthenonbasicvariablesarenotnonpositive,theinitialsolutionis
notoptimum.Thenonbasiccell(1,3)mustenterthebasis.Theexitcriterion
removesthebasiccell(2,3)fromthebasismax e q = .
u
I
Firstiteration:
Introducethecell(1,3)intothebasisanddropthecell(2,3)fromit.Determinethecurrentnet
evaluations.Sinceallofthemarenotnonpositivethecurrentsolutioncanbeimproved.
SecondIteration:
Introduce the cell (3,1) and drop the cell (1,1) from the basis. Since some of the current net
evaluationsarestillpositive,thecurrentsolutioncanfurtherbeimproved.
U
i
(6)
7
(3)
3 4
1
q
2 1
q
(2)
3
0
q
7
(3)
3
q
(4)
4
5
+q
2
1
q
3
0
(2)
3
(0)
4 6
8
q
7
(3)
3
+q
4
0
2 1
(4)
3
e
q
(6)
3
(4)
4
q
6
2
2
2 1 e
2
1
5
2
6
5
ui
Vi 2 1 3 Vj 7 6 4
Startingtable Firstiteratedtable
2 1
2
95
+q
3
(2)
4
q
6
1
v
j
2 1 5
(SecondIteratedTable)
u
i
(6)
7
(1)
3 4
4
(2)
2 1 3
3
3
(0)
4 6
6
V
j
3 2 0
(Optimumtable)
Thirditeration:
Introducethecell(2,3)anddropthecell(2,1)fromthebasis.Sinceallthecurrentnetevaluations
arenonpositive,thecurrentsolutionisanoptimumone
Thetransportationcostaccordingtotheaboverouteisgivenby
6 1 3 4 3 2 1 1 4 2 z + + + + =
=33
Fillintheblanks
1. All thevalues of DC
ij
u
i
v
j
should be __________ or _________for the solution to be
optimum.
2. InunbalancedT.P a
i
is____________________to b
j
.
3. Ifthenumberofallocationislessthan_________thenitissaidtobeadegenerateT.P
5.6. Summary
Thetransportationproblemisaspecialtypeoflinearprogrammingprobleminwhichtheobjective
is totransport a homogeneousproduct manufactured at severalplants (origins)toanumberof
different destinations at a minimum total cost. In this chapter, you learned several different
techniques for computing an initial basic feasible solution to a transportation problem such as
north west corner rule, matrix minimum method and vogel approximation method. Further we
1
1
2
2
4
3 2
96
studiedthe degeneracy in transportation problem with examples onobtaininganoptimum basic
feasiblesolution.
TerminalQuestions
1. Solvethefollowingtransportationproblem
Destination
A B C D
21 16 25 13 11
17 18 14 23 13
32 27 18 41 19
6 10 12 15
43
2. A company has three cement factories located in cities 1,2,3 which supply cement to four
projects located in towns 1,2,3,4. Each plant can supply daily 6,1,10 truck loads of cement
respectively and the daily cement requirementsof the projectsare respectively 7,5,3,2 truck
loads. The transportation cost per truck load of cement ( in hundreds of rupees) from each
planttoeachprojectsiteareasfollows.
Factories
Determinetheoptimaldistributionforthecompanysoastominimizethetotaltransportation
cost.
1 2 3 4
1
2 3 11 7
2
1 0 6 1
3
5 8 15 9
Availability
Source I
II
III
Requirement
97
3. Solvethefollowingtransportationproblem
To
Answer ToSelfAssessmentQuestions
1. L.P.P
2. equal
3. minimumcost
a)Yesb)Yesc)No
a)False b)True c)False d)True
1. zero
2. Notequalto
3. m+n1
TerminalQuestions
1. TheoptimaltransportationcostisRs.796
2 OptimaltransportationcostisRs.10,000
3 TheminimumtransportationcostisRs.112as 0 e
9 12 9 6 9 10 5
7 3 7 7 5 5 6
6 5 9 11 3 11 2
6 8 11 2 2 10 9
4 4 6 2 4 2 22
98
Unit6 AssignmentProblem
Structure
6.1. Introduction
6.2. Mathematicalformulationoftheproblem
6.3. Hungarianmethodalgorithm
6.4. Routingproblem
6.4.1.UnbalancedA.P
6.4.2 InfeasibleAssignments
6.4.3 MaximizationinA.P
6.5. Travelingsalesmenproblem
6.6. Summary
TerminalQuestions
AnswerstoSAQsandTQs
6.1Introduction
Theassignmentproblemisaspecialcaseofthetransportationproblem,wheretheobjectiveisto
minimizethe cost ortimeofcompletinganumberofjobsbyanumberofpersonsandMaximize
efficiently Revenue, sales etc In other words, when the problem involves the allocation of n
differentfacilitiestondifferenttasks,itisoftentermedasanassignmentproblem.Thismodelis
mostly used for planning. The assignment model is also useful in solving problems such as,
assignmentofmachinestojobs,assignmentofsalesmantosalesterritories,travelingsalesman
problemetc.Itmaybenotedthatwithnfacilitiesandnjobs,therearen!possibleassignments.
One way of finding an optimal assignment is to write all the n! possible arrangement ,evaluate
theirtotalcostandselecttheassignmentwithminimumcost.Butbecauseofmanycomputational
procedures this method is not possible. In this unit we study an efficient method for solving
assignmentproblems.
Therearenjobsforafactoryandfactoryhasnmachinestoprocessthejobs.Ajobi(=1,,n),
when processed by machine j(=1,,n) is assumed to incur a cost C
ij.
The assignment is to be
madein sucha way that eachjob can associate with oneand only one machine Determinean
assignmentofjobstomachinessoastominimizetheoverallcost.
99
LearningObjectives
1. AttheendofthisunitthestudentsformulateaassignmentproblemMathematically.
2. Solvesaroutingproblem.
3. Analysisatravelingsalesmanproblem.
4. Knowthesignificanceoftheassignmentproblem.
5. ApplytheHungarianmethodtosolvetheproblem.
6. Solvethepracticalproblemslikeroutingproblemandtravelingsalesmanproblem.
6.2 MathematicalFormulationOfTheProblem
Letx
ij
beavariabledefinedby

=
. machine j the to assigned is job i the if 1
machine j the to assigned not is job i the if 0
x
th th
th th
ij
Then,sinceonlyonejobistobeassignedtoeachmachinewehave
=
n
1 i
x
ij
=1and
=
n
1 j
x
ij
=1
Alsothetotalassignmentcostisgivenby
z=
= =
n
1 i
n
1 j
x
ij
c
ij
Thustheassignmentproblemtakesthefollowingmathematicalform
Determine x
ij
0(i,j=1,,n)
Soastominimize
z=

= =
n
1 j
n
1 i
x
ij
c
ij
=
n
1 i
x
ij
=1j=1,2,,n
100
and
=
n
1 j
x
ij
=1i=1,2,,n
withx
ij
=0or1
Note: Inanassignmentproblemifweadd(orsubtract)arealnumberto(from)everyelementof
aroworcolumnofthecostmatrix,thenanassignmentwhichisoptimumforthemodifiedmatrix
isalsooptimumfortheoriginalone.
StateTrueorFalse
1. InA.Ptheconstraintsareofequalitytype.
2. Theno.offacilitiesshouldbeequaltono.ofresources.
3. Thedecisionvariablescantakeanyvalue.
6.3 HungarianMethod:Algorithm
Step1:PrepareRowruledMatrixbyselectingtheminimumvaluesforeachrowandsubtractit
fromotherelementsoftherow
Step 2: Prepare column reduced Matrix by subtracting minimumvalue of the column from the
othervaluesofthatcolumn
Step 3: First rowwise assign a zero by if thereis only one zero in the row and cross (X)
otherzerosinthatcolumn.
Step4: Nowassigncolumnwiseifthereisonlyonezerointhatcolumnandcrossotherzerosin
thatrow.
RepeatStep3and4tillallzerosareeitherassignedorcrossed.Ifthenumberofassignments
made is equal to number of rows present, then it is the optimal solution otherwise proceed as
follows.
Step 5: Mark (P) the row which is not assigned. Look for crossed zero in that row. Mark the
column containing the crossed zero. Look for assigned zero in that column. Mark the row
containingassignedzero.Repeatthisprocesstillallmakingsareover.
Step6: Drawstraightlinethroughunmarkedrowsandmarkedcolumn.Thenumberofstraight
linedrawnwillbeequaltonumberofassignmentsmade.
Step7:Examinetheuncoveredelements.Selecttheminimum.
101
a. Subtractitfromuncoveredelements.
b. Additatthepointofintersectionoflines.
c. Leavetherestasitis.
PrepareaNewTable.
Step8:RepeatSteps3to7tillnumberofallocations=Numberofrows.
Example1:Findtheoptimumassignmentsoastominimizethecost.
Persons Jobs
12345
A
B
C
D
E
84261
09554
38926
43103
95 895
Example:
Consider theproblem of assigningfivejobs tofive persons. Theassignment costsare given as
follows.
Persons
Job
1 2 3 4 5
A 8 4 2 6 1
B 0 9 5 5 4
C 3 8 9 2 6
D 4 3 1 0 3
E 9 5 8 9 5
Determinetheoptimumassignmentschedule.
Solution:
Persons Jobs
12345
A
B
C
73150
09554
16704
102
D
E
4310 3
40340
Solution:ApplyingHungarianMethod
RowreducedMatrix
Persons Jobs
12345
A
B
C
D
E
73150
09554
1 6704
43103
40340
Column reduced Matrix: Will be same as each columns minimum value is zero. We start
assigningthejobs
Jobs P
Persons 12345
A
B
PC
PD
E
7305
9454
1664
4 3x3
424x
Sincethenumberofassignments=5.Itistheoptimumsolution.
Optimumsolution
Ato51
Bto10
Cto42
Dto31
Eto25
9Totalcost
0
0
0
0
0
103
StateYes/No
1. InHungarianmethodfirstwepreparerowreducedmatrix
2. Thenumberofassignmentsshouldbeequaltonumberofrowsforoptimumsolution.
3. Therecanbemorethanoneallocationinarow.
6.4 RoutingProblem
Network scheduling is a technique for planning and scheduling of large projects. It has
successfully been applied in transportation and communication problems .A typical network
problem consists of finding route from one node(origin) to another (destination) between which
alternativepathsareavailableatvariousstagesofthejourney.Theproblemistoselecttheroute
that yields minimumcost.Anumberofdifferentconstraintsmaybeplacedonacceptableroutes
e.g.:not returning to the nodealready passed through orpassing through every node once and
onlyonce.Problemsofsuchtypearecalledasroutingproblems.
Althoughawidevarietyofproblemsotherthanroutingmaybedevelopedinconnectionwiththe
constructionandutilizationofnetworks.Hereweconsiderthespecialtypeofroutingproblemthat
occursfrequentlyinO.R.thetravellingsalesmanproblem.
6.4.1. UnbalancedA.P
If thenumber of rows numberof column then it is an unbalanced A.P.Weintroduce eithera
dummyrowordummycolumnandproceedasusual.
Example2:
Operations Machines
M
1
M
2
M
3
M
4
0
1
0
2
0
3
10151211
910912
15161617
Solution: IntroducingadummyrowandapplyingHungarianmethod,wehave
Operations Machines
M
1
M
2
M
3
M
4
0
1
10151211
104
0
2
0
3
0
4
910912
15161616
0000
RowreducedMatrixandassigning
Operations Machines
M
1
M
2
M
3
M
4
0
1
0
2
0
3
0
4
521
x13
x111
xxx
Iteration1
Operations Machines
M
1
M
2
M
3
M
4
0
1
0
2
0
3
0
4
41x
113
xxx
1xx
HungarianMethodleadstoMultiplesolution.Selecting(0
3
,M
2
)arbitrarily
Theoptimumsolutionis
0
1
toM
1
10
0
2
toM
3
9
0
3
toM
2
16
0
4
toM
4
0
35TotalWastages
0
0
0
0
0
0
0
105
6.4.2. InfeasibleAssignments
Certainjobs cannotbeassigned to certain Machinesor operators. Weinsert ahighvalue a at
thesecellsandApplyHungarianMethod.
Example3:
SolvethefollowingA.P
Territory P
1
P
2
P
3
P
4
T
1
T
2
T
3
T
4
20 3227
15201718
1618 20
201824
Solution:IntroducingaatdashesplacesandapplyingHungarianMethod.Wehave
P
1
P
2
P
3
P
4
T
1
T
2
T
3
T
4
20 a 3227
15201718
1618 a 20
a 201824
RowreducedMatrix
P
1
P
2
P
3
P
4
T
1
T
2
T
3
T
4
0 a 127
0523
02 a 4
a 206
ColumnreducedMatrix
P
1
P
2
P
3
P
4
T
1
T
2
T
3
T
4
a 124
x32
x a 1
a x3
\Optimumassignmentis
0
0
0
0
106
T
1
toP
1
20
T
2
toP
4
18
T
3
toP
2
18
T
4
toP
3
18
74TotalCost
6.4.3. MaximizationInA.P
Hungarian Method cannot be applied to maximization problems. Therefore we reduce it to
maximization problem by subtracting every value form the highest value of the Matrix and then
proceedasusual.
Example4: SolvethefollowingA.PEfficiencyMatrix
Classes Professors
P
1
P
2
P
3
P
4
C
1
C
2
C
3
C
4
70758065
80706575
75768580
60657090
Solution:SinceitisaMaximizationproblemwesubtracteveryvaluefromthemaximumvalueof
90.Wehave.
Professors
P
1
P
2
P
3
P
4
C
1
C
2
C
3
C
4
20151025
10202515
1520510
30 25200
RowreducedMatrix
P
1
P
2
P
3
P
4
C
1
C
2
C
3
105015
010155
101505
107
C
4
3025200
ColumnReducedMatrix
P
1
P
2
P
3
P
4
C
1
C
2
C
3
C
4
10124
5155
10105
302020
\ OptimumSolution
C
1
P
2
75
C
2
P
1
80
C
3
P
3
85
C
4
P
4
90
330MaxEfficiency
Fillintheblanks
1. InunbalancedT.Pnumberofrows__________tonumberofcolumn.
2. Hungarianmethodcannotbeapplieddirectlyto_________problem.
3. IfsomejobscannotbeassignedtosomeM/csthenitiscalled_________assignment
problem.
6.5 TravelingSalesmanProblem
Supposethesalesmanhastovisitncities.Hewishestostartfromaparticularcity,visiteachcity
once, and then return to his starting point. The objective is to select the sequence in which the
cities arevisitedin such a way that histotal travelingtimeis minimized. .Clearly startingfroma
givencity,thesalesmanwillhavetotalof(n1)!differentsequences.Further,sincethesalesman
has to visit all the n cities the optimal solution remains independent of selection of the starting
point.
Theproblemcanberepresentedasanetworkwherethenodesandarcsrepresentthecitiesand
the distance between them respectively. Assume that in a five city problem, a round trip of the
0
0
0
0
108
salesmanisgivenbythefollowingarcs.
(3,1),(1,2),(2,4),(4,5),(5,3)
These arcs taken in order are the first, second, third, fourth and fifth directed arcs for the trip.
Generallythek
th
directedarcrepresentsthek
th
legofthetrip.i.e.onlegk
Thesalesmantravelsfromcityitocityj
(i,j=1,2,,n j i )
To formulate the problem whose solution will yield the minimum traveling time ,let the
variablesx
ijk
bedefinedas

=
otherwise 0,
j city to i city from is are directed k if 1,
x
th
ijk
Wherei,jandkareintegersthatvarybetween1andn.
Followingaretheconstraintsoftheproblem.
(a) Onlyonedirectedarcmaybeassignedtoaspecifick,
Thus

j k
x
ijk
=1 k=1,2,3n
j i
(b) Onlyoneothercitymaybereachedfromaspecificcityi,thus

j k
x
ijk
=1,i=1,2,n
(c) Onlyoneothercitycaninitiateadirectarctoaspecifiedcityj,thus

i k
x
ijk
=1,j=1,2,..,n
(d) Giventhe k
th
directed arcendsat some specificcity j,the (k+1)
th
directedarc must startat
thesamecityjthus
i
x
ijk
=
r
x
jr
(k+1)foralljandk.
j i j r
Theseconstraintsensurethattheroundtripwillconsistofconnectedarcs.Theobjectivefunction
istominimize
z=
i

j k
d
ij
x
ijk
j i
109
Whered
ij
isthedistancefromcityitocityj.
Fillintheblanks
1. Intravelingsalesmenproblemtheobjectiveistovisiteachcities__________________.
2. Salesmanhas________differentsequencesifnisthenumberofcitiestobevisited.
6.6 Summary
In this unit, we focused on a special type oftransportation problem. where the objective was to
allocate n different facilities to n different tasks .Although an assignment problem can be
formulated as alinear programmingproblem,itis solvedby special methodknow as Hungarian
method.Ifthenumberofpersonsisthesameasthenumberofjobs,theassignmentproblemis
saidtobebalanced.Lastlyabriefintroductionwasgivenaboutthetravelingsalesmanproblem.
TerminalQuestions
1. Fourjobsaretobedoneonfourdifferentmachines. Thecostin(rupees) ofproducingi
th
on
thej
th
machineisgivenbelow:
Machines
M
1
M
2
M
3
M
4
J
1
15 11 13 15
J
2
17 12 12 13
J
3
14 15 10 14
J
4
16 13 11 17
Assignthejobstodifferentmachinessoastominimizethetotalcost.
2. Amarketingmanagerhas5salesmenand5salesdistricts.consideringthecapabilitiesofthe
salesmanand the natureofdistricts, the marketing manager estimates that salesper month
(inhundredrupees)foreachsalesmanineachdistrictwouldbeasfollows.
Jobs
110
SalesDistricts
A B C D E
1 32 38 40 28 40
2 40 24 28 21 36
3 41 27 33 30 37
4 22 38 41 36 36
5 29 33 40 35 39
Findtheassignmentofsalesmantodistrictsthatwillresultinmaximumsales.
3. Inaplantlayouttherearefivevacantplaces.TheplantordersfourMachinestobeinstalled
intheseplaces.Thecostofinstallingisasfollowsfindtheoptimumassignment.
M/G A B C D E
M
1
9 11 15 10 11
M
2
12 9 10 9
M
3
11 14 11 7
M
4
14 8 12 7 8
4. Findtheassignmentthatmaximizesthetotalsale.
Zone
Salesmen 1 2 3 4
M
1
42 35 28 21
M
2
30 25 20 15
M
3
30 25 20 15
M
4
24 20 16 12
AnswersForSelfAssessmentQuestions
1.True 2.True 3.False
Salesman
111
1.
2. Maximisationproblem
3.Infeasible
1.Onlyonce 2. (n1)!
AnswertoTerminalQuestions
(1) Theoptimumassignmentpolicyis
Job1tomachine2,Job2tomachine4
Job3tomachine1,Job4tomachine3.
andtheminimumassignmentCost=Rs.(11+13+14+11)=Rs.49.
(2) Optimalassignmentpolicyissalesman1todistrictB,2toA,3toE,4toCand5toD.
Hence the maximum sales = Rs. (38+40+37+41+35)100 =
Rs.19,100.
(3) M
1
A
2
M
2
BM
3
EM
4
D Total38
(4) M
1
1M
2
2M
3
3M
4
4 Total99
112
Unit7 IntegerProgrammingProblem
Structure
7.1.Introduction
7.2.AllandmixedI.P.P
7.3GomorysallI.P.Pmethod
7.3.1ConstructionofGomorysConstraints
7.4.AllI.P.Palgorithm
7.5.BranchandBoundtechnique
7.5.1Branchandboundalgorithm
7.6.Summary
TerminalQuestions
.AnswerstoSAQsandTQs
7.1 Introduction
TheIntegerProgrammingProblemIPPisaspecialcaseofLPP whereallorsomevariables
are constrained to assume nonnegative integer values. This type of problem has lot of
applicationsinbusinessandindustrywherequiteoftendiscretenatureofthevariablesisinvolved
inmanydecisionmakingsituations.
Eg. In manufacturingtheproductionisfrequently scheduled intermsofbatches,lotsor runs In
distribution,ashipmentmustinvolveadiscretenumberoftrucksoraircraftsorfreightcars
LearningObjectives
1. Attheendofthisunitastudent:
2. FramesaI.P.P.
3. SolvesaI.P.P.duringGomorysmethod.
4. Appliesthebranchandlandtechnique.
113
7.2 AllAndMixedIPP
Anintegerprogrammingproblemcanbedescribedasfollows:
Determinethevalueofunknownsx
1
,x
2
,,x
n
soastooptimizez=c
1
x
1
+c
2
x
2
+...+c
n
x
n
subjecttotheconstraints
a
i1
x
1
+a
i2
x
2
+...+a
in
x
n
=b
i,
i=1,2,,m
andx
j
0j=1,2,,n
wherex
j
beinganintegralvalueforj=1,2,,k n.
Ifallthevariablesareconstrainedtotakeonlyintegralvaluei.e.k=n,itiscalledanall(orpure)
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
knownasmixedintegerprogrammingproblem.
StateTrue/False
1. Integerprogrammingisappliedtoproblemsthatinvolvediscretevariables.
2. IfsomevariablescantakenonnegativevaluesthenitisknownaspureI.P.P
7.3Gomorys All IPPMethod
AnoptimumsolutiontoanI.P.P.isfirstobtainedbyusingsimplexmethodignoringtherestriction
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
insertinganewconstraintcalledGomorysorsecondaryconstraintwhichrepresentsnecessary
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 thevalues of thevariablesin this solution are
integers, an optimum intersolution is obtained, otherwise another new constrained is added to
the modified L P Pand the procedureis repeated. An optimum integer solution will be reached
eventually after introducing enough new constraints to eliminate all the superior non integer
solutions.Theconstructionofadditionalconstraints,calledsecondaryorGomorysconstraints,
issoveryimportantthatitneedsspecialattention.
7.3.1.ConstructionOfGomorysConstraints
ConsideraLPPforwhichanoptimumnonintegerbasicfeasiblesolutionhasbeenattained.
114
Withusualnotations,letthissolutionbedisplayedinthefollowingsimplextable.
Clearly the optimum basicfeasiblesolutionis
given by x
B
= [ ]
3 2
, x x = ] , [
20 10
y y maxz=y
00
Since x
B
is a non integer solution. We
assume that y
10
is fractional.
Theconstraintequationis
y
10
=y
11
x
1
+y
12
x
2
+y
13
x
3
+y
14
x
4 ( ) 0
4 1
= = x x
reducesto
y
10
=y
11
x
1
+x
2
+y
14
x
4 ( ) 0
4 1
= =x x
(1)
because x
2
and x
3
arebasicvariables(whichimpliesthat y
12
=1 andy
13
=0)
Theaboveequationcanberewrittenas
x
2
=y
10
y
11
x
1
y
14
x
4
Whichisalinearcombinationofnonbasicvariables.
Now,sincey
10
0thefractionalpartofy
10
mustalsobenonnegative.Wesplitovereachofy
ij
in
(1)intoanintegralpartI
ij
,andanonnegativefractionalpart,f
1j
forj=0,1,2,3,4.Afterthisbreak
up(1)maybewrittenas
I
10+
f
10
=(I
11
+f
11
)x
2
+(I
14
+f
14
)x
4
Or
f
10
f
11
x
2
f
14
x
4
=x
2
+I
11
x
1
+I
14
x
4
I
10
(2)
Comparing(1)and(2)wecometoknowthatifweaddanadditionalconstraintinsuchawaythat
the L.H.S. of (2) is an integer, then we shall be forcing the noninteger y
10
towards an integer.
Thisiswhatisneeded.
ThedesiredGomorysconstraintisf
10
f
11
x
1
f
11
x
4
0.
Letitbepossibletohavef
10
f
11
x
1
f
11
x
4
=h whereh>0isaninteger.Then f
10
=h+f
11
x
1
+
f
14
x
4
isgreaterthanone.Thiscontradictsthat0<f
ij
<1forj=0,1,2,3,4.
ThusGomorysconstraintis
y
B
x
B
y
1
y
2
y
3
y
4
y
2
y
10
y
11
y
12
y
13
y
14
y
3
y
20
y
21
y
22
y
23
y
24
y
00
y
01
y
02
y
03
y
04
115
10 sla
4 , 1 j
j ij
4 , 1 j
10 j ij
4 , 1 j
10
j ig
f ) 1 ( G x f or
f x . f or f x f
- = + -
- -

=
= =
WhenG
sla
(1)isslackvariableintheabovefirstGomoryconstraint.
This additional constraint is to be included in the given L.P.P. in order to move further towards
obtaining an optimum all integer solution. After the addition of this constraint, the optimum
simplextablelookslikeasgivenbelow
y
B
x
B
y
1
y
2
y
3
y
4
G
sla
(1)
y
1
y
10
y
11
y
12
y
13
y
14
0
y
2
y
20
y
21
y
22
y
23
y
24
0
G
sla
(1) f
10
f
11
0 0 f
14
1
y
00
y
01
y
02
y
03
y
04
y
05
Sincef
10
isnegative.Theoptimalsolutionisinfeasibleandthusthedualsimplexmethodisto
be applied for obtaining an optimum feasible solution. After obtaining this solution, the above
referred procedureis appliedfor constructing second Gomorys constraint. Theprocessis tobe
continuedsolongasanallintegersolutionhasnotbeenobtained.
Fillintheblanks
1. AnoptimumsolutiontoI.P.Pisfirstobtainedbyusing_________________.
2. With the addition of Gomorys constraint the problem is solved by _______ _________
_________.
7.4 AllI.P.P.Algorithm
Theiterativeprocedureforthesolutionofanallintegerprogrammingproblemisasfollows:
Step1:ConverttheminimizationI.P.P.intothatofmaximization,ifitisintheminimizationform.
Theintegralityconditionshouldbeignored.
Step2: Introducethe slackor surplusvariables,wherever necessary to convert theinequations
intoequationsandobtaintheoptimumsolutionofthegivenL.P.P.byusingsimplexalgorithm.
Step3:Testtheintegralityoftheoptimumsolution
116
a) Iftheoptimumsolutioncontainsallintegervalues,anoptimumbasicfeasibleintegersolution
hasbeenobtained.
b) Iftheoptimumsolutiondoesnotincludeallintegervaluesthenproceedontonextstep.
Step 4: Examine the constraint equations corresponding to the current optimum solution. Let
theseequationsberepresentedby
) m ........, , 2 , 1 , 0 i ( , b x , y
1
i
j
1
n
0 j
ij
= =
=
Where n denotesthenumberofvariablesand m thenumberofequations.
Choosethelargestfractionof s b
i
ietofind { }
i
i
b
i
max
Letitbe
i
1
k
b

orwriteisas
o
k
f
Step5:Expresseachofthenegativefractionsifany,inthek
th
rowoftheoptimumsimplextable
asthesumofanegativeintegerandanonnegativefraction.
Step6: FindtheGomorianconstraint
=

1
n
0 j
ko
j kj
f x , f
andaddtheequation
=
+ - =
1
n
0 j
j kj ko
sla
x . f f ) 1 ( G
tothecurrentsetofequationconstraints.
Step7:Starting withthisnewsetofequationconstraints,findthenewoptimumsolutionbydual
simplexalgorithm.
(SothatG
sla
(1)istheinitialleavingbasicvariable).
Step 8: If this new optimum solution for the modified L.P.P. is an integer solution. It is also
feasibleandoptimumforthegivenI.P.P.otherwisereturntostep4andrepeattheprocessuntil
anoptimumfeasibleintegersolutionisobtained.
117
Example:
FindtheoptimumintegersolutiontothefollowingallI.P.P.
Maximize z=x
1
+2x
2
x
1
+x
2
7
2x
1
11
2x
2
7
x
1
,x
2
>0 andareintegers
Solution:
Step1:Introducingtheslackvariables,weget
2x
2
+x
3
=7
x
1
+x
2
+x
4
=7
2x
1
+x
5
=11
x
1
,x
2
,x
3
,x
4
,x
5
>0.
Step2:Ignoringtheintegercondition,wegettheinitialsimplextableasfollows:
C
j
1 2 0 0 0
Basic
variabl
e
C
B
X
B
X
1
X
2
X
3
X
4
X
5
Miniratio
2
B
x
x
x
3
0 7 0 1 0 0
2
7
x
4
0 7 1 1 0 1 0
1
7
x
5
0 11 2 0 0 0 1
Z=0 1
2
0 0
j
D
2
118
Introducingx
2
andleavingx
3
fromthebasis,weget
C
j
1 2 0 0 0
Basic
variabl
e
C
B
X
B
X
1
X
2
X
3
X
4
X
5
Miniratio
1
B
x
x
x
2
2
2
1
3 0 1
2
1
0 0
x
4
0
2
1
3 0
2
1
- 1 0
1
2
1
3
x
5
0 11 2 0 0 0 1
2
11
Z=C
B
X
B
=7
1
0 1
0
j
D
( ) ( ) 1 1 2 , 1 , 0 0 , 0 , 2
1 1 1
- = - = - = D C X C
B
( ) 1 0 0 ,
2
1
,
2
1
0 , 0 , 2
3 3 3
= -

- = - = D C X C
B
IntroducingX
1
andleavingX
4
wegetthefollowingoptimumtable.
Optimumtable
C
j
1 2 0 0 0
Basic
variabl
e
C
B
X
B
X
1
X
2
X
3
X
4
X
5
x
2
2
2
1
3 0 1
2
1
0 0
x
1
1
2
1
3 1 0
2
1
- 1 0
x
5
0 4 0 0 1 2 1
Z=
2
1
10 0 0
2
1
1 0
j
D
( ) 0 1 ,
2
1
,
2
1
0 , 1 , 2 C X C
3 3 B 3
-

- = - = D
1
119
2
1
0
2
1
1 =

+ - =
( ) ( ) 1 0 2 , 1 , 0 0 , 1 , 2 C X C
4 4 B 4
= - - = - = D
Theoptimumsolutionthesegotis:
2
1
10 ,
2
1
3 ,
2
1
3
2 1
= = = z x x .
Step3:Sincetheoptimumsolutionobtainedaboveisnotanintegersolution,wemustgotonext
step.
Step4:Nowweselecttheconstraintcorrespondingtothecriterion
maxi(f
Bi
)=max(f
B1
,f
B2
,f
B3
)
=max
2
1
0 ,
2
1
,
2
1
=

Sincein this problem, the x
2
equation and x
1
equation both have the samevalue off
Bi
ie
2
1
,
eitheroneofthetwoequationscanbeused.
Now consider the first row of the optimum table . The Gomorys constraint to be added is

=
- = + - - - = + -
4 , 3
1 4 14 3 13 1 1 1
1
j
B B j j
f g x f x f or f g x f
( ) 0
2
1
2
1
2
1
0
2
1
4 3 1 3 1 4 3
= = - = + - - = + - - x x g x or g x x
Addingthisnewconstrainttotheoptimumtableweget
C
j
1 2 0 0 0 0
Basic
variable
C
B
X
B
X
1
X
2
X
3
X
4
X
5
G
1
X
2
2
2
1
3 0 1
2
1
0 0 0
X
1
1
2
1
3 1 0
2
1
- 1 0 0
X
5
0 4 0 0 1 2 1 0
G
1
0
2
1
- 0 0
2
1
- 0 0 1
Z=C
B
X
B
=
0 0
2
1
1 0
0
j
D
120
2
1
10
Step 5: Toapply dual simplex method. Now, inorder to remove theinfeasibility of the optimum
solution:
2
1
, 4 ,
2
1
3 ,
2
1
3
1 5 2 1
- = = = = g x x x ,weusethedualsimplexmethod.
i) leavingvectorisG
1
(i.e.
4
b )
4 = \r
ii) Enteringvectorisgivenby

=

< =
43
3
j 4
j 4
j
k 4
k
x
max 0 x ,
x
max
x
D
D
D
=
43
3
x
2
1
2
1
max
D
=

-
Thereforek=3.Sowemustentera
3
correspondingtowhichx
3
isgivenintheabovetable.Thus
droppingG
1
andintroducingx
3
. Wegetthefollowingdualsimplextable.
C
j
1 2 0 0 0 0
Basic
variable
C
B
X
B
X
1
X
2
X
3
X
4
X
5
G
1
X
2
2 3 0 1 0 0 0 1
X
1
1 4 1 0 0 1 0 1
X
5
0 3 0 0 0 2 1 2
X
3
0 1 0 0 1 0 0 2
Z=C
B
X
B
=10 0 0 0 1 0 1
j
D
( ) ( ) 1 0 0 , 2 , 1 , 0 0 , 0 , 1 , 2 C X C
4 4 B 4
= - - = - = D
( ) ( ) 1 0 2 , 2 , 1 , 1 0 , 0 , 1 , 2 C G C
6 1 B 6
= - - - = - = D
Thusclearlytheoptimumfeasiblesolutionisobtainedinintegers.
121
FinallywegettheintegeroptimumsolutiontothegivenIPPasx
1
=4,x
2
=3andmax z=10.
IdentifywhetherthefollowingstatementsareTrueorFalse
1. WeselectthatvariableforGomorysconstraintwhosefractionalvalueismore.
2. OptimumvaluesinanpureI.P.Pcanbex=2andy=3.5.
7.5TheBranchAndBoundTechnique
SometimesafeworallthevariablesofanIPPareconstrainedbytheirupperorlowerboundsor
byboth.Themostgeneraltechniqueforthesolutionofsuchconstrainedoptimizationproblemsis
the branch and bound technique. The technique is applicable to both all IPP as well as mixed
I.P.P.thetechniqueforamaximizationproblemisdiscussedbelow:
LettheI.P.P.be
Maximize
=
=
n
1 j
j j
x c z (1)
m ...., , 2 , 1 i b x a
n
1 j
i j ij
=
=
(2)
x
j
isintegervalued, j=1,2,..,r(<n)(3)
x
j
>0.j=r+1,..,n(4)
Furtherletussupposethatforeachintegervaluedx
j
,wecanassignlowerandupperboundsfor
theoptimumvaluesofthevariableby
L
j
x
j
U
j
j=1,2,.r (5)
Thefollowingideaisbehindthebranchandboundtechnique
Consideranyvariablex
j
,andletIbesomeintegervaluesatisfyingL
j
I U
j
1.Thenclearlyan
optimumsolutionto(1)through(5)shallalsosatisfyeitherthelinearconstraint.
x
j
I+1 (6)
Orthelinearconstraintx
j
I...(7)
To explain how this partitioning helps, let us assume thatthere were no integer restrictions (3),
andsupposethatthisthenyieldsanoptimalsolutiontoL.P.P.(1),(2),(4)and(5).Indicatingx
1
= 1.66 (for example). Then we formulateand solve twoL.P.Pseach containing (1), (2)and (4).
122
But(5)forj=1ismodifiedtobe2x
1
U
1
inoneproblemandL
1
x
1
1intheother.Further
eachoftheseproblemsprocessanoptimalsolutionsatisfyingintegerconstraints(3)
ThenthesolutionhavingthelargervalueforzisclearlyoptimumforthegivenI.P.P.However,it
usuallyhappensthatone(orboth)oftheseproblemshasno optimalsolutionsatisfying(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
optimumsolution.
Westartwithaninitiallowerboundforz,sayz
(0)
atthefirstiterationwhichislessthanorequalto
theoptimalvaluez*,thislowerboundmaybetakenasthestartingL
j
forsomex
j
.
Inadditiontothelowerboundz
(0)
,wealsohavealistofL.P.Ps(tobecalledmasterlist)differing
only in the bounds (5). To start with (the 0
th
iteration) the master list contains a single L.P.P.
consistingof(1),(2),(4)and(5).Wenowdiscussbelow,thestepbystepprocedurethatspecifies
how the partitioning (6) and (7) can be applied systematically to eventually get an optimum
integervaluedsolution.
7.5.1 BranchAndBoundAlgorithm
Atthet
th
iteration(t=0,1,2,)
Step0:Ifthemasterlistisnotempty,chooseanL.P.P.outofit.Otherwisestoptheprocess,Go
tostep1.
Step1:Obtaintheoptimumsolutiontothechosenproblem.Ifeither
i) Ithasnofeasiblesolutionor
ii) Theresultingoptimumvalueoftheobjectivefunctionzislessthanorequaltoz
(t)
,thenletz
(t+1)
=
z
(t)
andreturntostep0otherwisegotostep2.
Step2:Ifthesoobtainedoptimumsolutionsatisfiestheintegerconstraints(3)thenrecordit.Let
z
(t+1)
beassociatedoptimumvalueofzreturntostep0.Otherwisemovetostep3.
Step3:Selectanyvariablex
j
,j=1,2,.,p.thatdoesnothaveanintegervalueintheobtained
optimum solutiontotheL.P.P.choseninstep0.Let
*
j
x denotethisoptimalvalueof x
j
.Addtwo
L.P.Pstothemasterlist:theseL.P.PsareidenticalwiththeL.P.P.choseninstep0,exceptthat
inone,thelowerboundonx
j
isreplacedby [ ]
*
j
x +1.Letz
(t+1)
=z
(t)
returntostep0.
123
Note:Attheterminationofthealgorithm,ifafeasibleintegervaluedsolutionyieldingz
(t)
hasbeen
recordeditisoptimum,otherwisenointegervaluedfeasiblesolutionexists.
Example:
UsebranchandboundtechniquetosolvethefollowingI.P.P.
Maximize z=7x
1
+9x
2
(1)
x
1
+3x
2
<6 (2)
7x
1
+x
2
<35
0<x
1
,x
2
<7 (3)
x
1
,x
2
areintegers(4).
Solution:
At the startingiteration we can consider z
(0)
=0 to be thelower bound,for x,since all x
j
=0is
feasible.ThemasterlistcontainsonlytheL.P.P.(1)(2)and(3).whichisdesignatedasproblem
1.Chooseitinstep0,andinstep1determinetheoptimumsolution.
z
0
=63
2
7
x ,
2
9
x
2 1
= = (Solutiontoproblem1)
Sincethesolutionisnotintegervalued,proceedfromstep2tostep3,andselectx
1
.Thensince
4
2
9
x
*
1
=

=

,placeonthemasterlistthefollowingtwoadditionalproblems.
Problem2: (1)(2)and5x
1
70x
2
7
Problem3: (1)(2)and0x
1
40x
2
7
Returningtostep0:withz
(1)
=z
(0)
=0,
Wechooseproblem2,Step1establishesthatproblem2hasthefeasiblesolution
z
0
=35,x
1
=5x
2
=0 [solutiontoproblem(2)](5)
Since this satisfies the integer constraints, therefore at step 2 we record it by enclosing in a
rectangleandletz
(2)
=35.
Returning to step 0 with z
(2)
= 35, we find that problem 3 is available. Step 1 determines the
followingoptimumfeasiblesolutiontoit
Z
0
=58,x
1
=4,
3
10
x
2
= (Problem3)
Since the solution is not integer valued, proceed from step 2 to step 3 and select x
2
. Then
124
[ ]

=
3
10
*
2
x =3.Weaddthefollowingadditionalproblemsonthemasterlist:
Problem4:(1)(2)and 7 4 4 0
2 1
x x
Problem5:(1)(2)and0x
1
40x
2
3
Returningtostep0withz
(3)
=z
(2)
=35,chooseproblem4fromstep1weknowthatproblem4has
no feasible solution and so we again return to step 0 with z
(4)
= z
(3)
= 35. Only problem 5 is
availableinthemasterlist.Instep1wedeterminethefollowingoptimumsolutiontothisproblem.
z
0
=55x
1
=4x
2
=3(solutiontoproblems)(6)
Sincethissatisfiestheintegerconstraints,thereforeatstep2.Werecorditbyenclosinginsidea
rectangleandletz
(5)
=55.
Returningtostep0,wefindthatthemasterlistisemptyandthusthealgorithmterminates.
Now,onterminatingwefindthatonlytwofeasibleintegersolutionnamely(5)and(6)havebeen
recorded. The best of these gives the optimum solution to the given I.P.P. Hence the optimum
integersolutiontothegivenI.P.P.is
Z
0
=55,x
1
=4,x
2
=3.
Treediagramofaboveexample
Z*=63

= =
2
1
3 x ,
2
1
4 x
2 1
Z*=58

= =
3
1
3 x , 4 x
2 1
Z*=35
(x
1
=5,x
2
=0)
Z*=55
(x
1
=4,x
2
=3)
Optimalsolution
Nosolution
x
1
<4 x
1
>5
Node(3) Node(2)
x
2
<3 x
2
>4
Node(5) Node(4)
Node(1)
125
Node
Solution
Additional
Constraints
Typeofsolution
x
1
x
2
z*
(1)
2
9
2
7
63 __
Noninteger(Original
problem)
(2) 5 0 35 5
1
x Integerz*
(1)
(3) 4
3
10
58 4
1
x Noninteger
(4) .. .. 4 , 4
2 1
x x Nosolution
(5) 4 3 55 3 , 4
2 1
x x Integerz*
(2)
(Optimal)
StateTrueorFalse
1. Branch and Bound Technique is applied when some variables have upper or lower
bounds.
2. Westartthetechniquewithlowerbound.
7.7 Summary
This chapter investigated the programming model in which the assumption of divisibility was
weakened. You learned two algorithms to determine the optimal solution for an integer
programmingproblem.OneofthesewasthecuttingplanealgorithmdevisedbyGomoryandthe
otherwasthebranchandboundalgorithmdevelopedbylandandDoig.
TerminalQuestions
1. UseBranchandBoundtechniquetosolvethefollowingproblem
Maxz=3x
1
+3x
2
+13x
3
subjectto
3x
1
+6x
2
+7x
3
8
6x
1
3x
2
+7x
3
8
0x
j
5
andx
j
areintegerj=1,2,3
2. Whatisintegerprogramming?
126
3. ExplaintheGomoryscuttingplaneallintegeralgorithmofanI.P.P.?
1. True 2. False
1.Simplexmethod
2.Dualsimplexmethod
1.Correct 2.Wrong
1.True 2.False
Answer ToTerminalQuestions
1. Attheendofthe8
th
iterationwegettheoptionalsolutiontotheI.P.P.isx
1
=x
2
=0,x
3
=1,z*
=13.
2. RefertoSection7.2
127
Unit8 InfiniteQueuingModels
Structure
8.1. Introduction
8.2. Queuingtheory
8.3. AnalysisofQueuingprocess
8.4. ConstituentsofQueuingsystem
8.4.1ArrivalPattern
8.4.2CompletelyRandomArrivals
8.5. Servicefacility
8.6. Queuingdiscipline
8.6.1CustomerBehaviour
8.6.2ServerBehaviour
8.7. MathematicalanalysisofQueuingprocess
8.7.1PropertiesoftheSystem
8.7.2Notations
8.8. Singlechannelmodels
8.9. Multipleservicechannels
8.10. Erlangfamilyofdistributionofservicetimes
8.11. Summary
TerminalQuestions
AnswerstoSAQsandTQs
8.1 Introduction
Wearealltoofamiliar withqueuesinourdaytodayexistenceandperhapsthereisnoneedto
definewhataqueueis.Onthewaytoplaceofworkoftenwehavetowaitforabus,forthetraffic
lights to turn green and then at the office premises for the lift. Cars waiting at petrol pumps for
service, customers waiting at the bank, telephone subscribers waiting for connections are all a
commonsight.Aircraftsgetdelayedforwantofafreerunway.Nosofamiliartoall,arethecases
ofbrokendownmachineswaitingforrepairs,workmenwaitingfortools,andgoodsinproduction
128
shops waitingforcranes. Eveninventory situations may be regarded as queues notonly in that
customerswaitinlineforgoods,butalsothatgoodsformawaitinglineawaitingconsumption.
Alltheaboveexampleshaveonecommonfeature.Customersarriveataservicecentreandwait
forservice.Thearrivalofcustomersisnotnecessarilyregularandsoisthetimetakenforservice
not uniform. Queues build up during hours of demand and disappear during the lull period.
Personallywedonotliketowait.
Inthecommercialorindustrialsituations,itmaynotbeeconomicaltohavewaitinglines. Onthe
other hand, it may not be feasible or economical to totally avoid queues. An executive dealing
withthesystemthenwouldliketofindtheoptimalfacilitiestobeprovided
LearningObjectives
1. UnderstandtheQueuingprocess
2. AnalyzetheQueuingprocessmathematically
3. Applydifferentmodelstopracticalproblems
8.2QueuingTheory
Queuing theory based on probability concepts gives an indication of the capability of a given
system and of the possible changes in its performance with modification to the system. All the
constraintsoftheprocessarenottakenintoaccountintheformulationofaqueuingmodel.There
isnomaximizationorminimizationofanobjectivefunction.Thereforetheapplicationof queuing
theory cannot be viewed as an optimization process. With the help of queuing theory the
executive can at best make an informed guess of what the balance between customer waiting
time and service capability could be. He first considers several alternatives, evaluates through
queuingmodels,theireffectonthesystem,andmakeshischoice.Thecriteriaforevaluationwill
bemeasuresofefficiencyofthesystemliketheaveragelengthofaqueue,expectedwaitingtime
of a customer and the average time spent by the customer in the system. In this approach, his
success primarily depends on the alternatives considered and not so much on the queuing
modelsdeveloped.
It is essential for the executive to have a succinct understanding of the process so that he will
considertherightalternativesandformulatethecorrectmodels.
129
StateTrue/False
1. CustomersarriveataBankatregularinterval.
2. Queuingidentifiestheoptimalservicefacilitiestobeprovided.
3. Queuingtheoryisbasedondeterministicmodel.
8.3AnalysisofaQueuingProcess
Very often, the management is interested in finding out the quality of service rendered to the
customers.Oneoftheindictorsofefficiencyofasysteminvolvingflowofcustomersforserviceis
how fast they are served. Augmenting the physical facilities to provide service will in general
improveserviceleadingto customersatisfaction.However,suchfacilitiescannotbeindiscriminately
increasedastheycouldbequiteexpensive.Ifthequeuingprocessinvolveswaitingofmachinesfor
service,it may be possible tofindthe economic levelof the maintenancefacilitiesby balancing the
cost of machine downtime against the cost of maintenance facilities. Such evaluation in monetary
termsmaynotalwaysbepossiblewherethecustomersarepeople.
Thensomemeasuresofefficiencyofthesystemasmentionedabovemayprovehelpful.
Atypicalinvestigationofaqueuingsystemwouldcomprisethefollowingsteps:
Step1:Preliminarystudy
Atthisstage,ananalysisoftheprocessismade usually withthehelpofaflowdiagramandan
attemptis made to identify thepoints which restrict service or the characteristics which indicate
scopeforimprovement.
Step2:Explorationofthevariousalternatives
Byintroducingchangesintheconstituentsofthequeueingsystem,itshouldbepossibletoeffect
improvement. The arrival pattern may be altered by withdrawing service facilities to certain
categories of customers or by introducing an appointment system. The time taken for providing
servicemaybeimprovedbyincreasingthecapacityofthesystemi.e.byincreasingthenumber
of service channels or the working hours. It is also not uncommon to provide additional service
facilities to relieve congestion during peak periods. Modifying the queue discipline may also
changethecharacteristicsofthesystem.
Priority may be given to arrivals involving high cost of waiting time. In multi channel queues,
separatechannelsofservicemaybeprovidedfordifferenttypesofcustomers.Thefixedchange
counterprovidedattheChurchgateRailwayStationbytheWesternRailwayissaidtohavecut
130
downthewaitingtimeforamajorityofcustomers.
Step3:Collectionofdataandanalysis
Directobservationofthesystemintermsofarrivaltimeofcustomers,servicerate,lengthofqueue
and waiting time is done at this stage. The data is analyzed in sufficient detail to determine the
statisticalpatternofthevariables.The measuresofefficiency ofthesystemarecomputedonthe
basis of queuing theory. These are counterchecked with the results obtained through direct
observationtoconfirmthevalidityoftheformulaeapplied.Itmaysometimesbenecessarytocollect
additionaldataregardingtheprocess.
Step4:Evaluationofalternatives
Effect of modifying the constituents of the system on the basis of the selected alternatives is
evaluated through application of queuing theory. Simulation technique can also be used for the
purpose.Basedontheresultsobtained,thebestcombinationofthe changestobemadeinthe
existingsystemareselected.
Step5:Implementation
The proposals formulated are implemented on a small scale and tested. If necessary, further
changes are made and rechecked before implementing them on full scale. It is advisable to
observe the functioning of the system periodically to ensure that the results desired are
maintained.
Fillintheblanks
1. Oneoftheindicatorsofefficiencyofasystemis__________factor.
2. AnalysisofQueuingsystemexplores__________________.
3. __________techniquecanalsobeusedforanalysis.
8.4ConstituentsOfAQueuingSystem
Inspecifyingaqueuingprocessoneshouldknowthefollowing:
(a) ArrivalPattern: Theaveragerateatwhichcustomersarriveaswellasthestatisticalpattern
ofarrivals
(b) Servicefacility: When service is available, number of customers that can be served at a
timeandthestatisticalpatternoftimetakenforservice
(c) Queuediscipline: Method of choosing a customer for service from amongst those
131
waiting for service. (First come First served is a common basis but there are also other
methods.)
Weshallnowexamineeachoftheseconstituents.
8.4.1ArrivalPattern
Thearrivalofcustomerscanberegularasinthecaseofanappointmentsystemofadentistwhichis
closelyadheredto,orliketheflowofcomponentsfromaconveyor.Theregularpatternofarrivalsis
notverycommonnorisveryeasytodealwithmathematically.Weshallbeprimarilyconcernedwitha
patternofcompletelyrandomarrivals,asithasusefulapplications.
8.4.2CompletelyRandomArrivals
If the number of potential customers is infinitely large, the probability of an arrival in the next
interval of time will not depend upon the number of customers already in the system. (The
assumptionisvalidbyandlarge,exceptforqueuesinvolvingasmallfinitenumberofcustomers.)
Wherethearrivalsarecompletelyrandom,theyfollowPoissondistributionwithmeanequaltothe
averagenumberofarrivalsperunittime.
When dealing with arrivals it might sometimes be necessary to distinguish between groups of
customerslikemaleandfemalecallers,orlargeandsmallaircraft.
There are several other types of arrival patterns which we shall not deal with due to their
restrictedapplications.
StateYes/No
1. Queuingprocesshasarrivalpattern,servicefacilityandQueuedisciplineasitsconstituents.
2. Ifthearrivalsarecompletelyrandom,thenitfollowspoissondistribution.
8.5ServiceFacility
i) Availabilityofservice
Apart from specifying the time span over which service is available it is also necessary to
examine if there are any constraints which reduce the number of customers that can be
served at a time. For instance, in a waiting line for a suburban train, the probability
distributionofthenumberofpassengersthatcanbeaccommodatedinatrainthatarrivesis
relevantapartfromthetimingsofthetrainservices.
ii) NumberofServiceCenters
132
If there is only one service centre referred to as a service channel, obviously only one
customercanbeservedatatime.Oftentherewillbemorethanoneservicecentreandthe
behaviourofthequeueswillvarywiththenumberofchannelsavailableforservice.
Multipleservicechannelsmaybearrangedinseriesorinparallel.Ifthecustomerhastogo
through several counters one after the other each providing a different part of the service
required,thearrangementissaidtobeinseries.
Normallyforwithdrawalsinabank,thecustomerhastogotoatleasttwocountersinseries.
Provision of several counters offering the same type of service is a common approach to
reducecongestion.Ticketboothsinarailwaystationhavethistypeofmultiplechannelswith
parallelarrangement.
iii) Durationofservice
Thisisthelengthoftimetakentoserveacustomer.Thiscanbeconstantorvarying.
(a) Constantservicetime
Thisisnotstrictlyrealizedinpractice,butanassumptionthatservicetimeisconstant
holdstrueifthepatternofarrivalsisveryirregular
(b) Completelyrandomservicetime
The service time can be considered completely random where the server does not
distinguishbetweenthevariousarrivals,andhedoesnotchangedeliberatelytheduration
ofserviceonthebasisofthetimetakentoservethepreviousarrival.Theserverforgets
thetimefor whichhehasbeenservingacustomer.Undertheseconditions,theservice
timefollowsexponentialdistributionwithmeanequalto reciprocaloftheaveragerateof
service.
(c) ServicetimefollowingErlangDistribution
In cases where the assumption of an exponential distribution for service time is not
valid,Erlangfamilyofservicetimedistributionsisused.
S.
No
.
Situation
Arriving
Customers ServiceFacility
1 Passageofcustomersthrough
supermarketcheckout
Shoppers Checkout
counters
2. Flowofautomobiletrafficthrough
aroadnetwork.
Automobiles RoadNetwork
3. Transferofelectronicmessages Electronic Transmission
133
messages lines
4. Bankingtransactions Bankpatrons Banktellers
5. Flowofcomputerprogrammers
throughacomputersystem.
Computer
Programmers
Central
processingunit
6. Saleoftheatretickets Theatregoers Ticketbooking
windows
7. Arrivaloftruckstocarryfruitsand
vegetablesfromacentralmarket
Trucks Loadingcrews
andfacilities
8. Registrationofunemployedat
employmentexchange
Unemployed
personnel
Registration
assistants
9. Occurrencesoffires Fires Firemenand
equipment
10.Flowofshipstotheseashore ships Harborand
dockingfacilities
11 Callsatpolicecontrolroom Servicecalls policemen
Fillintheblanks
1. Multipleservicechannelsmaybearrangedin___________orin_________.
2. Theservicetimecanbe__________or__________.
8.6QueueDiscipline
The pattern of selection for service from the pool of customers is of two types. The common
pattern is to select in the order in which the customers arrive. First come first served is a
commonexample.Inissuingmaterialsfromastoresinventorysometimesthestorekeeperfollows
theLastInFirstOutprinciplebecauseoftheconvenienceitoffersforremovalfromstocksand
handling.
There canalso bequeues which accord priority to certain types of customers. Here again there
can be two approaches. In case of non preemptive priority the customer getting service is
allowedtocontinuewithservicetillcompletion,evenifaprioritycustomerarrivesmidwayduring
hisservice.Thisisacommonformofpriority.Preemptivepriorityinvolvesstoppingtheserviceof
thenonprioritycustomersassoonastheprioritycustomerarrives.Prioritygiventorepairsofa
productionholdingmachineoveranauxiliaryunitforallocationofmaintenancelabourforceisa
134
typicalexample.Preferenceisgiventolargershipsoverthesmalleronesirrespectiveoftheorder
inwhichtheyarriveforallocationofberths.
8.6.1CustomerBehaviour
a) Balking: Arriving customers are said to balk if they do not join a queue because of their
reluctancetowait.
b) Collusion: Customers may bein collusionin the sense that only oneperson wouldjoin the
queuebutwoulddemandserviceonbehalfofseveralcustomers.
c) Reneging: Impatient customers who would not wait beyond a certain time and leave the
queuearesaidtorenege.
d) Jockeying:Somecustomerskeeponswitchingoverfromonequeuetoanotherinamultiple
servicecentre.Thisiscalledjockeying.
8.6.2 ServerBehaviour
Althoughthetimingsforservicemighthavebeenspecified,theservermaynotbeavailable
through the entire span of time. For instance, after every hour, he may leave the service
centrefor5minutes,toattendtohispersonalneeds.
Fillintheblanks
1. Whencustomerskeepinswitchingoverfromonequeuetoanotherthenitiscalled________
2. _______________________________arethetypesofcustomerbehaviour.
8.7.MathematicalAnalysisOfQueuingProcess
Statistical Equilibrium: In analyzing the queuing process, we are interested in developing
mathematical model which represent the system for a major part of the time. This implies that
changesoccurringinthecharacteristicsofthesystemarenottobeconsiderediftheyareofshort
durations. When specifying the statistical distributions of the arrivals or service times, we are
interestedinanequilibriumstate.
Inaqueuingprocess,ateachpointoftime,thereisaprobabilitydistributionforthelengthofthe
queue.Thenumberofcustomerswillbeverymuchdifferent15minutesafteropeningthecounter
inapostofficefromthatafteronehour.Aftertheinitialrush,onemightreasonablyexpecttofind
thesystemwiththesametypeofprobabilitiesofarrivals.
The probability distribution of the arrivals will then be different from that of the initial state. The
135
stateduringwhichtheprobabilitydistributionremainsthesame,iscalledthesteadystateandthe
systemissaidtohaveacquiredastateofstatisticalequilibrium.
In the steady state, there will be variations in the queue from time to time but the probability
distributionsrepresentingthequeueingprocesswillremainthesameandareindependentofthe
timeatwhichthesystemisexamined.
8.7.1PropertiesoftheSystem
In developing queuing models, we shall confine our discussion to queuing systems with the
followingproperties.
Arrivals
Customersarediscreteentities
PopulationFinite/Infinite
Nosimultaneousarrivals
Patternofarrivalsinatimeperiodt
0
followsPoissondistributionwithaveragearrivalrate
[ ]
( )
! x
t e
x arrivals of number Prob
x
0
0
t -
= =
x=0,1,2..
Service
Singleservechannel/Multiplechannels
Singlequeue/Infinitecapacity
Patterndiscipline
FirstcomeFirstserved
ItmaybenotedthatwhenthenumberofarrivalsfollowsPoissondistribution(discrete),theinter
arrivaltimei.e.,thetimebetweenarrivalsfollowsexponentialdistribution(continuous).
8.7.2Notations
TheQueuingSystemswithwhichweareconcernedaredenotedbyM/M/1andM/M/cwhereMs
standfor exponentialinter arrival and exponential service timedistributions, and the thirdfigure
indicatesthenumberofchannels(orservers)available(1orc).
l = Averagenumberofarrivalsperunittime
m = Averagenumberofcustomersservedperunittime
r = Trafficintensity=
c = Numberofservicechannels
136
m = Numberofcustomersinthequeueorthelengthofthequeue
n = numberofcustomersinthesystem
= numberofcustomersinthequeue+numberofcustomersbeingserved
P
n
= Steadystate probabilityoffindingnpeopleinthesystem
E(m) = Averagelengthofqueue
E(m/m>0) = Averagelengthofanonemptyqueue
E(n) = Averagenumberofcustomersinthesystem
W = Steadystatewaitingtimeofacustomer
E(w) = Averagewaitingtimeofacustomer
P(w=0) = Probabilityofnothavingtowaitinthequeue
E(w/w>0) = Averagewaitingtimeofacustomergiventhatthereisaqueue
V = Timespentbyacustomerinthesysteminsteadystate
= Waitingtimeinthequeue+Servicetime
F(v) = Probabilitydensityfunctionofthetimespentbyacustomerinthesystem
E(v) = Averagetimespentbyacustomerinthesystem.
Fillintheblanks
1. E(m)refersto__________________________________.
2. Probability density function of the time spent by a customer in the system is denoted by
_____________.
3. ___________Arrivalsareallowed.
8.8SingleChannelModels
The formulae are listed in Tables 1 and 2. The examples which follow not only illustrate the
computationofvariousmeasuresofefficiencyofaqueuingsystembutgiveanideaoftheareas
ofapplicationaswell.
Table1
FormulaeforPoissonArrivals,ExponentialService,SingleChannelQueuingModels Infinite
Population
137
) ( v e ) ( ) v ( f
) ( w e ) 1 ( ) w ( f
1
) v ( E
1 ) o w ( P
1
) 0 w / w ( E
) (
) w ( E
) n ( E
) 0 m / m ( E
) (
) m ( E
1 P
) 1 ( pn P
2
n
n
l m l m
l m r l
l m
r
l m
l m m
l
l m
l
l m
m
l m m
l
r
r
- - - =
- - - =
-
=
- = =
-
= >
-
=
-
=
-
= >
-
=
- =
- =
Table2
FormulaeforPoissonArrivals,exponentialService,SingleChannel
QueuingModelsNumberofcustomerslimitedtoN
pn
p 1
p 1
P
p 1
p 1
P
1 n
n
1 n
o

-
-
=
-
-
=
+
+
n=0,1,2.N
1 n
o
p 1
p 1
P ) 0 w ( P
+
-
-
= = =
Example1:
Patronsarriveatasmallpostofficeattherateof30perhour.Servicebytheclerkondutytakes
anaverageof1minutepercustomer
a) Calculatethemeancustomertime
(i) spentwaitinginline
(ii) spentreceivingorwaitingforservice
b) Findthemeannumberofpersons
138
(i) inline
(ii) receivingorwaitingforservice
Solution:
Meanarrivalrate l =30customersperhour
= 2
1
customerperminute
Meanservicerate l =1perminute
Trafficintensity
2
1
p = =
m
l
(a) (i) Meancustomertimespentwaitinginlineminute
ute min 1
) (
) w ( E
=
-
=
l m m
l
(ii) Meancustomertimereceivingorwaitingforservice
) (
1
) v ( E
l m -
=
=2minutes
(b) (i) Meannumberofpersonsinline
2
1
) (
) m ( E
2
=
-
=
l m m
l
customer
(ii) Meannumberofpersonsreceivingorwaitingforservice
1 ) n ( E =
-
=
l m
l
customer
Example2:
The Tool Companys Quality Control Department is manned by a single clerk, who takes an
average of 5 minutes in checking parts of each of the machines coming for inspection. The
machinesarriveonceinevery8minutesontheaverage.OnehourofmachineisvaluedatRs.15
andaclerkstimeisvaluedatRs.4perhour.Whataretheaveragehourlyqueuingsystemcosts
associatedwiththeQualityControlDepartment?
Solution:
Meanarrivalrate l =1/8perminute
=
8
60
perhour
Meanservicerate
5
1
= m
perminute
139
=12perhour
Averagetimespentbyamachineinthesystem E(v)=
) (
1
l m -
=
9
2
hours
Averagequeuingcostpermachineis
3
10
. Rs
9
2 15
=

Anaveragearrivalof
8
60
machinesperhourcosts
8
60
3
10

=Rs.25perhour
Averagehourlyqueuingcost =Rs.25
Averagehourlycostfortheclerk =Rs.4
Hencetotalhourlycostforthedepartment =Rs.29
Example3:
A hospital emergency room can accommodate at most M = 5 patients. The patients arrive at a
rate of 4 per hour. The single staff physician can only treat 5 patients per hour. Any patient
overflowisdirectedtoanotherhospital.
(a) Determinetheprobabilitydistributionforthenumberofpatientseitherwaitingfororreceiving
treatmentatanygiventime.
(b) Determine the mean values for the number of patients in the emergency room , and the
numberofpatientswaitingtoseethedoctor.
Solution:
M=Maximumnumberofcustomersinthesystem=5
l =4perhourand m =5perhour
8 . = =
m
l
r
Theprobabilitydistributionforthenumberofpatientsinthesystem
271 .
1
1
P
M n 0 for P P
1 x
o
o
n
n
=

-
-
=

=
+
m
l
m
l
m
l
The probability distribution for the number of patients either waiting for treatment or receiving
140
treatmentisasfollows.
n P
n
0 0.271
1 0.217
2 0.173
3 0.139
4 0.111
5 0.089
(b) (i) Themeanvaluefor thenumberofpatientsintheemergencyroom=0(0.271)+1
(0.217)+2(0.173)+3(0.139)+4(0.111)+5(0.089)=1.869
(ii) AveragenumberofpatientswaitingtoseethedoctorE(m)=00.271+00.217+1
0.173+20.139+30.111+40.089=1.140.
Example4:
CarsarriveatatollgateonafrequencyaccordingtoPoissondistributionwithmean90perhour.
Average time forpassing through the gate is 38 seconds. Drivers complain of long waiting time.
Authoritiesarewillingtodecreasethepassingtimethroughthegateto30secondsbyintroducing
new automatic devices. This can be justified only if under the old system, the number of waiting
cars exceeds 5. In addition the percentage of gates idle time under the new system should not
exceed10.Canthenewdevicebejustified?
Solution:
Intheoldsystem,
Meanarrivalrate=90perhour
=1.5perminute
Meanservicerate=
38
60
perminute
Trafficintensity =
20
19
60
38 5 . 1
=

Expectednumberofwaitingcars
18
1
2
=
-
=
r
r
Hencethenewsystemisjustifiedonthebasisoftheexpectednumberofwaitingcars.
Underthenewsystem,theprobabilityofdevicebeingidle
141
=P
0
=1 r
=1.75
=.25whichisgreaterthan10%requiredforthenewdevicetobeintroduced.
Asonlyoneofthestipulatedconditionsisfulfilledthenewautomaticdeviceisnotjustified.
Example5:
CustomersarriveataonewindowdriveinbankaccordingtoaPoissondistributionwithmean10
perhour.Servicetimepercustomerisexponentialwithmean5minutes.Thespaceinfrontofthe
window, including thatfor the serviced car can accommodate a maximum of3 cars. Other cars
canwaitoutsidethisspace.
(a) Whatistheprobabilitythatanarrivingcustomercandrivedirectlytothespaceinfrontofthe
window?
(b) What is the probability that an arriving customer will have to wait outside the indicated
space?
(c) Howlongisanarrivingcustomerexpectedtowaitbeforestartingservice?
(d) How many spaces should be provided in front of the window so that all the arriving
customerscanwaitinfrontofthewindow atleast20%ofthetime?
Solution:
(a) l =10 m =12 r =10/12=5/6 .
Theprobabilitythatanarrivingcustomercandrivedirectlytothespaceinfrontofthewindow
=P
0
+P
1
+P
2
=P
o
+pP
o
+p
2
P
o
=P
o
(1+p+p
2
)
= (1p)(1+p+p
2
)
Hencerequiredprobability=.42
(b) Theprobabilitythatanarrivingcustomerhastowaitoutsidetheindicatedspace=Probability
thatthereareatleast3customersinthespaceinfrontofthewindow
=1(P
0
+P
1
+P
2
+P
3
)
=1(1p)(1+p+p
2
+p
8
)
=.48
(c) Theaveragewaitingtimeofacustomerinqueue.
=
417 . 0
12
5
) (
= =
- l m m
l
(d) Theexistingspaceinfrontofthewindowcanaccommodateuptothreecars.Probabilitythata
142
customercanwaitinfrontofthewindowmustbeatleast0.20.Thisispossibleifthenumber
ofcustomersinthesystemis0,1or2foratleast20%ofthetime.
i.e.P
0
+P
1
+P
2
0.20
Itseenfrom(a)thatP
0
+P
1
+P
2
=0.42
Asevenwithonespaceinfrontofthewindow42%ofthetimesanarrivalanwaitinthespace,
thenumberofspacesrequiredisoneormore.
Writeonelineanswers
1. ExpectednumberofcustomersinnonemptyQueueisgivenby
2. Theprobabilitythatanarrivingcustomerhastowaitforreceivingservice.
8.9MultipleServiceChannels
The analysis of systems involving several service channels is more complex. However these
models are of major practical utility as one of the ways of improving service is to provide
additionalservicefacilities.ThelistofformulaetobeusedisgiveninTablebelowthisisfollowing
byafewexamples.
Table
FormulaeforPoissonArrivals,ExponentialService
MultichannelQueuingModelsInfinitePopulation
143
m
l m
m
l
m
l m
m
l
m
m
l
l m
m
l
lm
l m
m
l
lm
r
1
P
) c ( ! ) 1 c (
) v ( E
P
) c ( )! 1 c (
) n ( E
P
) c ( )! 1 c (
) n ( E
p
) c ( )! 1 c (
) m ( E
c
p
1 ! c
pe
! n
pn
1
P
c n for P
) c ( ! c
pu
c n for P
! n
u
P
o
2
c
o
2
c
o
2
c
o
2
c
1 c
0 n
o
u
c n
o n
+
- -

=
- -

=
+
- -

=
- -

=

-
+
=
=
< =

-
=
-
Example6:
Shipsarriveataportatarateofoneinevery3hours,withanegativeexponentialdistributionof
interarrival times. The time a ship occupies a berth for unloading and loading has a negative
exponential distribution with an average of 12 hours. If the average delay of ships waiting for
berthsistobekeptbelow6hours,howmanyberthsshouldtherebeattheport.
Solution:
l =1/3
m =1/12
r =
4 =
m
l
Formultichannelqueues,
m
l
c
<1,toensurethatthequeuedoesnotexplode.
\ c>4
Letuscalculatethewaitingtimewhenc=5
) c / p 1 ( 1 c
o
! n
n
P
1 c
0 n
1
o
-
+ =

-
=
-
r r
Substitutingforn,candp
231
3
P
o
=
144
Averagewaitingtimeofaship
o
2
P
1
) c ( )! 1 c (
1 pe
) w ( E
l
r - -
+
=
=6.65
Whichisgreaterthan6hoursandinadequate.
Whenc=6,P
o
=
899
15
AndaveragewaitingtimeofashipE(w)=1.71hours.
Hence6berthsshouldbeprovidedattheport.
Example7:
AtoolcribisoperatedbyMservers,anddemandsforservicearriverandomlyatmeanrateof1.4
per minute. The mean service time per server is 1.25 minutes, and times are exponentially
distributed.Finitepopulationeffectsmaybeignored.Iftheaveragehourlypayrateofatoolcrib
operatoris Rs. 2 per hourandtheaverage hourly pay rateof production employee is Rs. 4 per
hour,determinetheoptimumvalueofM.(Youmayassumean8hourworkingday).
l =1.4perminute
m =.80perminute

-
=

-
+
=
= =
1 c
0 n
o
e
p
1 ! c
pe
! n
pn
1
P
75 . 1
m
l
r
Substitutingforandc,
P
0
will be 0.067, 0.156 and 0.170 for c = 2, 3 and 4 respectively. Average waiting time of an
arrivalinthequeue.
o
2
c
P
) c ( )! 1 c (
) w ( E
l m
m
l
m
- -

=
Asthenumberofarrivalsisperminuteaveragewaitingtimeofproductionemployeeperday=E
(w) l 60 8
=E(v) 672
145
Foracchannelsystem,oneserverwillbeidleifn=c1,twowillbeidleforn=c2andso
on.Itcanbeshownthataverageidletimeofservicefacilities
m
l
- = c .
Forvariousvaluesofc,thecostimplicationsarepresentedintheTablebelow:
Table
c
Average
waiting
timeper
arrival
E(w)mts.
Average
waitingtime
ofallarrivals
perday
(E(w) 672
mts.perday)
Costof
production
employees
perday

60
4
(3)
(Rs.)
Average
idletime
oftoolcrib
operator
perday
=(cp)
hrs.
Costof
idletime
oftoolcrib
operator
perday
(5)28
(Rs.)
Total
costper
day
(4)+(6)
(Rs.)
(1) (2) (3) (4) (5) (6) (7)
2 4.08 2741.76 182.79 0.25 4 186.79
3 0.33 221.76 14.78 1.25 20 34.78
4 0.07 47.04 3.14 2.25 36 39.14
Theoptimalnumberofserversisseentobethree
Example8:
Abankhastwocountersforwithdrawals.CounteronehandleswithdrawalsofvaluelessthanRs.
300 andcountertwoRs. 300andabove.Analysisofservicetimeshowsanegativeexponential
distribution with mean service time of 6 minutes per customer for both the counters. Arrival of
customersfollowsPoissondistributionwithmeaneightperhourforcounteroneandfiveperhour
forcountertwo.
(a) Whataretheaveragewaitingtimespercustomerofeachcounter?
(b) If each counter could handle all withdrawals irrespective of their value how would the
averagewaitingtimechange?
Solution:
(a) Forcounterone m
1
=10perhour, l
1
=8perhour.
minutes 24
) (
E
1 1 1
1
)
1
n (
=
-
=
l m m
l
Forcountertwo, m
2
=10perhour,perhour, l
2
=5perhour
146
minutes 6
) (
) w ( E
2 2 2
2
2
=
-
=
l m m
l
(b) When each counter can handle all withdrawals irrespective of their value with an average
arrivalrateof13perhour,meanservicetimeof10perhourateachcounterandnumberof
channels=2,
21 . 0 P
71 . 4
) o / p 1 (
pe
! c
1
pn
! n
1
P
30 . 1
10
13
o
1 c
0 n
1
o
=
=
-
+ =
= =

-
=
-
r
AveragewaitingtimeE(w)=
0
2
c
P .
) c ( ! ) 1 c ( l m
m
l
m
- -

=4.2minutes
Example9:
St. Peters Public Library wants to improve its service facilities in terms of reducing the waiting
time of the borrowers. At present there are two counters in operation and the arrival of the
borrowers follows Poisson distribution with one arrivingevery 4 minutes on an average and the
servicetimefollowsPoissondistributionwithonearrivingevery4minutesonanaverageandthe
servicetimefollowsanegativeexponentialdistributionwithameanof5minutes.Thelibraryhas
relaxeditsmembershiprulesandasubstantialincreaseinthenumberofborrowersisexpected.
Find the number of additional counters to be provided if the present arrival rate is expected to
doubleandtheaveragewaitingtimeofaborroweristobehalfofthepresentvalue
Solution:
l =1/4 perminute, m =1/5perminute,
r =5/4
Thenumberofcountersatpresentc=2
) c / P 1 ( ! c
pc
! n
pn
P
1 c
0 n
1
o
-
+ =

-
=
-
=4.33
P
0
=.23
Averagewaitingtimeofacustomer
147
E(w)=
o
2
c
P
) c ( ! ) 1 c ( l m
m
l
m
- -

=3.19minutes.
As the arrival rate is expected to be doubled with the relaxation of membership rules, l =
2/4=1/2perminuteand m =1/5perminute.
Hence r =5/2
Weshallexaminetheaveragewaitingtimeofacustomerfordifferentnumberofcounters
Whenc=3
P
0
1
=22.25
P
0
=.04
E(w)=7.02minutes
Thisismorethanthepresentaveragewaitingtime.
Byaddingonemorecounter,c=4andE(w)=1.07minute.
Thisislessthanhalfofthepresentaverage waitingtime.Thusitwillbenecessarytoprovide2
additionalcounterstofulfillthestipulatedservicestandards.
Writetheformulafor.
1. Expectednumberofcustomerinthesystem.
2. AveragewaitingtimeofcustomerintheQueue.
8.10ErlangFamilyOfDistributionOfServiceTimes
Queuingprocessesdiscussedsofararemathematicallysimple.Whenassumingthattheservice
time follows negative exponential distribution, we were also taking that its standard deviation is
equal to its mean. As there would be situations where the mean and the standard deviation
substantially differ, the models have to be made more general by using a distribution which
conforms closely to the practical problems but yet retains the simplicity of the properties of
negativeexponentialdistribution.A.K.Erlanghadfirststudiedsuchadistribution.
Consider the distribution of a service time involving a fixed number of phases k, each phase
havinganegativeexponentialdistribution.Iftherearekphases,andtheaveragetimetakenbya
148
customerthrougheachphaseis
m k
1
units,theservicetimedistributionf(t)isgivenby
)! 1 k (
e j . ) k (
) t ( f
kt 1 k k
-
=
- - m
m
Themeanofthisdistributionis
m
1
andstandarddeviationis
k
1
m
If k=1, f (f)= me
m1
which is the negative exponential distribution same as the models
consideredearlier.
Fork=2,f(f)=4m
2
te
2 m f
andsoon.
Themodeislocatedatt=
k
1 k
m
-
.
If k = thevarianceis zeroand this corresponds to acase where the servicetimeis constant
andhasvalue
. 1
m
TheFigurebelowshowsthewaythedensityfunctionsvariesaskincreases.
Fig.7.1
The measures of efficiency should take into account the number of customers getting service,
number havingenteredany oneor more of the phases,and the number yet tojoin. For arrivals
following Poisson distribution, with mean l and service time following the k
th
Erlang distribution
withmean,
m
1
theformulaeapplicablearegiveninTablebelow
149
Table
FormulaeforPoissonArrivals,Servicewithkphases,eachphasehavinganegativeexponential
distribution
Averagequeuelength
) ( k 2
1 k
) m ( E
2
l m m
l
-
+
=
Averagenumberofunitsinthesystem
m
l
l m m
l
+
-
+
=
) ( k 2
1 k
) n ( E
2
Averagewaitingtime
) ( k 2
1 k
) w ( E
l m m
l
-
+
=
Averagetimespentinthesystem
m l m m
l 1
) ( k 2
1 k
) v ( E +
-
+
=
Forconstantservicetime,equatingkto
m l m m
l
l m m
l
m
l
l m m
l
l m m
l
1
) ( 2
) v ( E
) ( 2
) w ( E
) ( 2
) n ( E
) ( 2
) m ( E
2
2
+
-
=
-
=
+
-
=
-
=
Example10:
Inacafeteriaatabusdepotthecustomerswillhavetopassthroughthreecounters.Atthefirst
counterthecustomersbuyCouponsatthesecondtheyselectandcollectthesnackstobetaken,
and at the, third they collect coffee or tea as required. The server at each counter takes on an
averagetwominutesalthoughthedistributionofthetimeofserviceisapproximatelyexponential.
If the arrivals of customers to thecafeteria are approximately Poisson atan average rate of six
per hour, what is the average time spent by a customer waiting in the cafeteria ? What is the
averagetimeofgettingtheservice?Whatisthemostprobabletimespentingettingtheservice?
Solution
ThisisaqueuingprocesswithservicetimefollowingErlangdistribution.
No.ofphasesk=3
2
3
1
=
m
\m =1/6personsperminute
150
l =6personsperhour
=1/10personperminute
(i) Averagewaitingtime=
) ( k 2
1 k
l m m
l
-
+
=6minutes
(ii) Averagetimespentincollectingcoupons,snacks,etc
=
m
1
=6minutes
(iii) Mostprobabletimespentincollectingcoupons,snacksetc
=Modalvalue
=
k
1 k
m
-
=4minutes
Writeformulaforthefollowingcharacteristics.
1. E(m)
2. E(w)
8.11.Summary
Theflowofcustomersforminfinitepopulationtowardsaserviceformsecureonaccountoflackof
services facilities. The waiting line theory or Queuing Theory analysis the number of facilities
required and the cost of customers waiting time and suggest the optimum service level. It
contributes vital information required for balancing the cost of service and cost associated with
waiting time of the customer. There are different models which are used under different
conditionsallthesemodelswerediscussedinthisunit.
TerminalQuestions
1. Ifinaparticularsingleserver system,thearrivalrate, l =5perhourandservicerate, m =8
perhour.Assumetheconditionsforuseofthesinglechannelqueuingmodel,findout:
a. Theprobabilitythattheserverisidle.
151
b. Theprobabilitythatthereareatleasttwocustomersinthesystem.
c. Expectedtimethatacustomerisinthequeue.
2. CustomersarriveattheFirstClassTicketcounterofaTheateratarateof12perhour.There
isoneclerkservingthecustomersatarateof30perhour.Assumingtheconditionsforuse
ofthesinglechannelqueuingmodel,evaluate:
a. Theprobabilitythatanarrivingcustomerhastowaitfortheservice.
b. Theexpectedno.ofcustomersinthesystem.
c. Theaveragewaitingtimeofthecustomerinthesystem.
3. Inabankevery15minutesonecustomerarrivesforcashingthecheque.Theclerktakes10
minutestoservice.Assumingtheusualconditionsfind.
a. Theidealtimeoftheclerkin8workinghours.
b. Expectedno.ofcustomersinthequeue.
c. Theprobabilitythatacustomerhastowaitfor15minutesormoretoreceivetheservice.
1.False 2.True 3.False
1.Utilization
2.Variousalternatives
3.Simulation
1.Yes 2.Yes
1.Series,parallel
152
2.Constant,varying
1.Jockeying
2.Balancing
1.AveragelengthofQueue
2.F(m)
3.Simultaneous
1. m / m l
2. l / m
1. ReferSection8.9
1.ReferSection8.10
Answer ToTerminalQuestions
1. a)3/8 b)125/512c)12.5minutes
2. a)3/5b)2/3perhourc)10/3minutes
3. a)8/3hrsb)4/3c)0.4043
153
Unit9 FiniteQueuingModels
Structure
9.1 Introduction
9.2. FiniteQueuingTables
9.1.1FiniteQueuingTables
9.1.2MeasuresofSystemEfficiency
9.1.3UseofFiniteQueuingTables:
9.3. Summary
TerminalQuestions
AnswerstoSAQsandTQs
9.1 Introduction
The models discussed so far relate to situations involving infinite population of customers i.e. the
queuecanincreaseindefinitely.Therewillbecases,wherethepossiblenumberofarrivalsislimited
andisrelativelysmall.Inaproductionshop,ifthemachinesareconsideredascustomersrequiring
servicefromrepaircrewsoroperators,thepopulationisrestrictedtothetotalnumberofmachinesin
the shop. In a hospital ward, the probability of the doctors or nurses being called for service is
governedbythenumberofbedsintheward.Similarly,inanaircraftthenumberofseatsisfiniteand
the number of stewardesses provided by the airlines will be based on the consideration of the
maximumnumberofpassengerswhocandemandservice.Asinthecaseofaqueuingsystemwith
infinite population, the efficiency of the system can be improved in terms of reducing the average
lengthofqueues,averagewaitingtimeandtimespentbythecustomerinthesystembyincreasing
thenumberofservicechannels.However,suchincreasesmeanadditionalcostandwillhavetobe
balancedwiththebenefitslikelytoaccrue.Ifthequeuingsysteminamachineshopisunderstudy,
thecostofprovidingadditionalmaintenancecrewsoroperatorscanbecomparedwiththevalueof
additional production possible due to reduced downtime of the machines. In cases where it is not
possible to quantify the benefits, the management will have to base its decisions on the desired
standardsforcustomerservice.
154
LearningObjectives
1 TounderstandthedifferencebetweenfiniteandinfiniteQueuingmodels
2 Differentmathematicalmodelsavailable.
Thequeuedisciplineinafinitequeuingprocesscanbe:
(i) Firstcomefirstserved
(ii) Prioritye.g.:Machinesofhighcostmaybegivenpriorityformaintenancewhileothersmaybe
keptwaitingeveniftheyhadbrokendownbefore.
(iii) Random e.g.: in a machine shop if a single operator is attending to several machines and
severalmachinescallforhisattentionatatime,hemayattendfirsttotheonenearesttohim
TheanalysisofFiniteQueuingModelsismorecomplexthanthosewithinfinitepopulationalthough
theapproachissimilar.L.G.PeckandR.N.Hazelwoodhaveprovidedsolutionstosuchproblemsin
theirbookFiniteQueuingTables(JohnWiley&SonsInc1958)
9.2.1 FiniteQueuingTables
Notationsusedaredifferentandaregivenbelow:
N = Population(machines,customersetc.)
M = Servicechannels(repairmen,telephonelinesetc.)
T = Averageservicetime(repairtime,lengthofconversationonatelephoneetc.)
W = Averagewaitingtime
U = Averagerunningtime(ofmachines)ormeantimebetweencallsforserviceperunit
H = Averagenumberofunitsbeingserviced
L = Averagenumberofunitswaitingforservice
J = Averagenumberofunitsinoperation
F = EfficiencyFactor
X = ServiceFactor
D = Probabilitythatifaunitcallsforservice,itwillhavetowait.
Let us consider a machine shop with N machines. The inter breakdown time of these machines
followsanegativeexponentialdistributionwithmeanU.ThenumberofbreakdownsfollowsPoisson
155
distributionwithmean
U
1
= l
Itisassumedthatmachinesarekeptrunning(orinoperation)exceptwhentheyareunderrepairsor
waitingforrepaircrewtoattend.
IfMrepaircrewsareavailable,thetimetakenbyanycrewfollowsanegativeexponentialdistribution
withmeanT.Naturally,amachinewhichhasbrokendownwillhavetowaitforrepairsifalltherepair
crewsarebusy.
9.2.2 MeasuresOfSystemEfficiency
EfficiencyoftheRepairSystem
Foragivensetofmachines,theefficiencyoftherepairsystemmaybejudgedbytheextenttowhich
machines have to wait for repairs. If W is the average time for which a machine has to wait, the
efficiencyfactorFisdefinedas
W U T
U T
F
+ +
+
=
Atanypointoftime,amachinewilleitherberunningorunderrepairorwaitingforrepairs.Therefore,
thetotalnumberofmachinesN=J+H+L.
N
L
and
N
j
,
N
H
correspond to the probability that a machine is being
repaired,runningorwaitingforrepairsrespectively.
In the finite queuing tables, service factor X is defined as
U T
T
X
+
=
X is an indicator of the
utilisationofrepaircrew.
Theformulaeforotherpropertiesofthe.systemaregivenbelow:
W U T
U T
J L H
J H
F
) X 1 ( NF
U W T
NU
J
) F 1 ( N
U W T
NW
L
FNX
U W T
NT
H
+ +
+
=
+ +
+
=
- =
+ +
=
- =
+ +
=
=
+ +
=
9.1.3UseOfFiniteQueuingTables:
156
ThetablesgivethevaluesofFandDfordifferentvaluesofN,MandX.Theyarearrangedin
theascendingorderofthevaluesofthepopulation.ForeachN,thevalueofXincreasesfrom
.001to.950.ForagivenservicefactorX,severalvaluesofMcanbefound.
ForeachvalueofXandM,valuesofDandFaretabulated.
ThestepsintheuseofFiniteQueuingTablesmaybesummarisedasfollows:
(i) FindmeanservicetimeTandmeanrunningtimeU.
(ii) Computetheservicefactor
(iii) SelectthetablecorrespondingtothepopulationN.
(iv) Forthegivenpopulation,locatetheservicefactorvalue.
(v) Readofffromtables,valuesofDandFforthenumberofservicecrewsM.Ifnecessary,these
valuesmaybeinterpolatedbetweenrelevantvaluesofX.
(vi) CalculatetheothermeasuresL,W,H,andJfromtheformulaegiven.
TheoverallefficiencyFofthesystemwillincreasewiththenumberofservicechannels(M)provided.
As mentioned earlier, addition of service crews involves cost, which should be justified by the
increaseintheefficiencyofthesystemi.e.additionalrunningtimeofmachinespossible.However,it
will be seen from the tables that as M increases, the rate of increase in efficiency decreases. The
practical significance is that beyond a certain valueof M, it isnot worthwhile increasing M as there
wouldbenoappreciableincreaseintheefficiencyofthesystem.
Example1:
In a chemical factory there are five hoppers of identical size which feed material to grinding mills.
Duetochangesintherequirementofmaterial,therearevariationsinthetimetakenforemptyingthe
hoppers. On the basis of past experience this time was found to follow negative exponential
distributionwithanaverageof10hoursbetweengettingemptied.Wheneverahoppergetsemptyit
hastobefilledbyapayloader.Althoughthecapacityofthehoppersisthesame,thetimetakento
fillthehoppersvariesduetodifferentlocationsfromwhichthematerialistobeloaded.
The time for filling the hopper also was found to follow negative exponential distribution with an
averageof2.5hours.ThecompanyhiresthepayloadersatacostofRs.100perhourirrespectiveof
whetheritisoperatedornot.IfthemillhastobestoppedduetoitshoppergettingemptyitcostsRs.
1000perhour in terms of lossofprofits. Determine the numberofpay loaders whichthe company
shouldengagetominimizeoverallcost.
157
Solution:
SinceT=2.5andU=10
200 . 0
10 5 . 2
5 . 2
U T
T
X =
+
=
+
=
ForN=5,X=0.200wehavethefollowingvaluesfromthetables:
M D F
3 0.028 0.998
2 0.194 0.976
1 0.689 0.801
Wenowprepareatableasbelow:
Table
1. No.ofPayloaders 3 2 1
2. Overallefficiencyofsystem(F) 0.998 0.976 0.801
3. N(1X) 4.00 4.00 4.00
4.
AverageNumberofMillsrunningperhourJ=
NF(1X)
3.992 3.904 3.204
5. Expectedprofits@Rs.1000perhour 3,992 3,904 3,204
6.
Loading cost @ Rs. 100 per hour per pay
loader
300 200 100
7. Expectednetprofitsperhour(56) 3,692 3,704 3,104
As increasing the number of pay loaders beyond two reduces profits, the company should engage
onlytwopayloaders.
SelfAssessmentQuestions
StateTrueorFalse
1. WhenthepossiblenumberofarrivalsislimitedthenweapplyinfiniteQueuingModel.
2. TheQueuedisciplineinafiniteQueuingprocesscanberandom.
3. TheefficiencyfactorforthismodelisHJ/H+J+L.
158
9.3 Summary
Queuingtheorydealswithsituationswherecustomersarrive,waitfortheservice,gettheservice andleave
the system. Customers, human or nor human, may come individually or in groups from large/small
population, at known/variable times, from one or more queues and move in a certain order then to the
servicestation/sprovidingservicewhosespeedmaybefixedorvariable.Queuingsystemsareanalyzed
fordeterminingtheoptimalservicelevel,wherethetotalcostofprovidingserviceandwaiting,isminimized.
Anincreaseintheservicelevelincreasesthecostofprovidingservicebutreducesthe costofwaiting,while
adecreaseintheservicelevelinducesoppositechanges.
TerminalQuestions
1. Customers arrive at thefirst classticket counterof a theatre at a rateof12perhour. There isone
clerkservingthecustomersatarateof30per hour.
i) Whatistheprobabilitythatthereisnocustomerincounter(i.e.,thesystemisidle).
ii) Whatistheprobabilitythattherearemorethan2customersinthecounter?
iii) Whatistheprobabilitythatthereisnocustomerwaitingtobeserved?
iv) Whatistheprobabilitythatacustomerisbeingservedandnobodyiswaiting?
2. Assume that at a bank teller window the customers arrive in their cars at the average rate of
twenty per hour according to a poisson distribution. Assume also that the bank teller spends
averageoftwominutespercustomertocompleteaservice,andtheservicetimeisexponentially
distributed. Customers who arrive from an infinite population, are served on a first come first
servedbasisandthereisnolimittopossinlequeuelength.
i) Whatistheexpectedwaitingtimeinthesystempercustomer?
ii) Whatisthemeannumberofcustomerswaitinginthesystem?
iii) Whatistheprobabilityofzerocustomersinthesystem?
iv) Whatvalueistheutilizationfactor?
SelfAssessmentQuestions
1.False 2.True 3. False
AnswersforTerminalQuestions
1. i) P(thesystemisidle)=1 r =10.4=0.6.
ii) P(n>2)=1P(n 2)=1[P(0)+P(1)+P(2)]=10.936=0.064.
159
iii) P(nocustomerwaitingtobeserved)=P(0)+P(1)=0.84.
iv) P(acustomerisbeingservedandnoneiswaiting)=P(1)=0.24.
2. i) Expectedwaitingtimeinthesystempercustomer,
W
s
=1/(ml)=1/(3020)=1/10hr..
ii) Meannumberofcustomerswaitinginthesystem,
L
q
=
3
4
3
2
1
3
2
1
2
=
-
=
- r
r
.
iii) Probabilityofzerocustomersinthesystem,P(0)=
3
1
3
2
1 1 = - = - r
iv) Utilizationfactor,
3
2
= r
160
Unit10 Simulation
Structure
10.1. Introduction
10.2 Basicconcepts
10.3. Simulationprocedure
10.3.1.AllocationofRandomNumbers
10.3.2. UseofRandomNumberTables
10.4. SampleSize
10.5. Applicationofsimulation
10.5.1Limitations:
10.6. Summary
TerminalQuestion
AnswerstoSAQsandTQs
10.1 Introduction
Generallyindevelopingmathematicalmodelsofvarioussystemsorsituations,itisassumedthat
the statistical distribution of the variables conforms to a standard pattern. This, however, is not
always true. Ina typicalpricingproblem, the management cannot risk changing thepriceof the
productwithoutevaluatingthevariousalternatives.Also,representationoftherealityintermsofa
mathematicalmodelbecomesvirtuallyimpossiblebecauseofthecomplexityoftheinteractionof
several variables having a bearing on the final outcome. One approach to the problem is to
assign probabilities of achieving various sales targets under different conditions of completion
withchangesinprice,demand,etc.andchoosethealternativewhichgivesthemaximumprofit.
Where formulating a mathematical model is difficult, simulation is of great help for decision
making.
LearningObjectives
1. Whatissimulation
2. Howisitappliedinbusinessproblems
3. UseofMonteCarloMethod
161
10.2BasicConcepts
Simulation may be called experimentation in the management laboratory. In the context of
businessproblems,simulationisoftenreferredtoasMonteCarloAnalysis.Theexpressionmay
betracedtotwoAmericanmathematicians,VonNeumannandUlan,whointhelate1940sfound
aprobleminthefieldofnuclearphysicstoocomplexforanalyticalsolutionandtoodangerousfor
actual experimentation. Eventually they arrived at an approximate solution by sampling. The
method used by them somewhat resembles the manner in which gamblers develop betting
systemsontheroulettetableandthenameMonteCarlosstuck.
Imagine a betting game in which the stakes are based on correct prediction of the number of
headswhichoccurwhenfivecoinsaretossed.Ifitwereonlyaquestionofonecoinmostpeople
knowthatthereisanequallikelihoodofaheadoratailoccurring.i.e.,theprobabilityofaheadis
. However, without the application of probability theory, it would be difficult to predict the
chancesofgettingvariousnumbersofheadswhenfivecoinsaretossed.Wemaytakefivecoins
and toss them repeatedly. The outcomes may be noted for each toss and, say, after every ten
tossestheprobabilitiesofvariousoutcomesmaybeestimated.Asweknow,thevaluesofthese
probabilities will initially fluctuate but they would tend to stabilise as the number of tosses is
increased.Thisapproachineffectisamethodofsamplingbutisnotveryconvenient.Insteadof
actuallytossingthecoins,wemaycarryouttheexperimentbyusingrandomnumbers.Random
numbershavethepropertythatanynumberisequallylikelytooccurirrespectiveofthedigitthat
hasalreadyoccurred.
Let us estimate the probability of tossingofdifferent numbers of heads withfive coins.Westart
withsetrandomnumbersgivenbelow:
78466 71923
78722 78870
06401 61208
04754 05003
97118 95983
Byfollowingaconventionthatevendigitssignifyahead(H)andtheodddigitsrepresentatail
(T),thetossingofacoincanbesimulated.Theprobabilityofoccurrenceofthefirstsetofdigitsis
and that of the other set is also a condition corresponding to the probability of the
occurrenceofaheadandtheprobabilityofoccurrenceofatailrespectively.
Itisimmaterialwhichsetoffivedigitsshouldsignifyahead.Therulecouldbethatthedigits0,1,
2,3and4representaheadandthedigits5,6,7,8and9atail.Itisonlynecessarytotakecare
162
that theset of random numbers allotted to any event matches with itsprobability of occurrence.
For instance, if we are interested in allotting random numbers to three events A, B and C with
respectiveprobabilities0.24,0.36and0.40wechoosetwodigitrandomnumbers00to99.
Thenumbers 00to23signifyeventA,
24to59signifyBand
60to99signifyC.
Thefirst set offiverandomdigitsinthelist of random numbersimplies thatthe outcome of the
firsttossof5coinsisasfollows:
Coin 1 2 3 4 5
Randomnumber 7 8 4 6 6
Outcome T H H H H
Henceitis4headsand1tail.
Proceedinginthesameway,wecantabulatetheresultsofthefirsttentosses.
TABLE1
TossNo.
Heads Tails
1
2
3
4
5
6
7
8
9
10
4
3
4
3
1
1
3
4
3
1
1
2
1
2
4
4
2
1
2
4
Based on the ten tosses of the coins, the estimates of probabilities of occurrence of different
numbersofheadsare:
0Head 0
1Head
10
3
2Heads 0
Numberof
163
3Heads
10
4
4Heads
10
3
5Heads 0
As these estimates will come closer to the theoretical value with increasing sample size, the
experimentistobecontinuedfurther.
Theresultsforobtaining2headsand3tailsfor100throwsareshownbelow:
Inthefirst10throws 0
20throws 6
30throws 11
40throws 14
50throws 18
60throws 19
70throws 21
80throws 22
90throws 24
100throws 27
Table2comparesthefinalresultsattheendof100throwswiththetheoreticalprobabilities.
TABLE2
No.ofheads
Estimated
Probability
Theoretical
Probabilities
0
1
2
3
4
5
0.03
0.21
0.27
0.33
0.12
0.04
0.03
0.16
0.31
0.31
0.16
0.03
It is observed that the results obtained with the large sample of 100 compare more favourably
withthetheoreticalvalues,thanwithasampleoftensetsofnumbers.
Fillintheblanks
1. Simulationmaybecalledexperimentationinthe________________.
2. Randomnumbershavethepropertythatanynumberhas________________tooccur.
164
3. Thetotalityofprobabilityassignedtothevariableshouldalwaysbeequalto_________.
10.3SimulationProcedure
Theapproachadoptedforsolvingaproblemingamblingcanbeextendedtodecisionmakingin
businesswhereriskisacommonfeature.Theprobabilitiesassociatedwiththevariables canbe
estimatedonthebasisofpastdataifavailable,orbyinputtingsubjectivevalues.
Inanysimulationproblemsthevariablestobestudiedwillbegivenwithassociatedprobabilities.
Theinitialconditionswillalsobespecified.Wecanchooserandomnumberfromtable.However
togetuniformresultstherandomnumberstobeusedwillbespecified.Thefirststepiswecode
thedata,i,e,weassignrandomnumberstothevariable.Weidentifytherelationshipbetweenthe
variablesandrunthesimulationtogettheresults
Letusillustratethisbyasimpleexampleofaqueuingprocess.
Example1:
A sample of 100 arrivals of customers at a retail sales depot is according to the following
distribution:
Timebetween
Arrivals(mts.)
Frequency
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
5.0
2
6
10
25
20
14
10
7
4
2
A study of the time required to service customers by adding up the bills, receiving payment,
makingchangeandplacingpackagesinhandtrucks,yieldsthefollowingdistribution:
Servicetime(mts.) Frequency
.5
1.0
1.5
2.0
2.5
12
21
36
19
7
165
3.0 5
Estimatetheaveragepercentagecustomerwaitingtimeandaveragepercentageidletimeofthe
serverbysimulationforthenext10arrivals.
Solution:
Step1: Convert the frequency distributions of time between arrivals and service time to
cumulativeprobabilitydistributions.
Step2: Allocaterandomnumbers00to99foreachofthevaluesoftimebetweenarrivalsand
servicetime,therangeallocatedtoeachvaluecorrespondingtothevalueofcumulative
probability.(Tables123and124).
Step3: Using random numbers from table, sample at random the tome of arrival and service
timefortensetsofrandomnumbers.
Step4: Tabulate waiting time of arrivals and idle time of servers.
(Table125)
Step5: Estimate the percent waiting time of arrivals and percent idle time of servers
correspondingtothetensamples.
10.3.1.AllocationofRandomNumbers
TABLE3
AllocationofRandomNumberTimebetweenarrivals
Time
between
arrivals
(1)
Frequency
(2)
Cumulative
Frequency
(3)
Cumulative
Probability
100
(3)
(4)
Random
Number
Allocated
(5)
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
5.0
2
6
10
25
20
14
10
7
4
2
2
8
18
43
63
77
87
94
98
100
0.02
0.08
0.18
0.43
0.63
0.77
0.87
0.94
0.98
1.00
00to01
02to07
08to17
18to42
43to62
63to76
77to86
87to93
94to97
98and99
166
TABLE4
AllocationofRandomNumbers ServiceTime
Service
Time
(1)
Frequency
(2)
Cumulative
Frequency
(3)
Cumulative
Probability
(4)
Random
Nos.
Allocated
(5)
0.5
1.0
1.5
2.0
2.5
3.0
12
21
36
19
7
5
12
33
69
88
95
100
0.12
0.33
0.69
0.88
0.95
1.00
00to11
12to32
33to68
69to87
88to94
95to99
(Notethattheupperboundofrandomnumbersallocatedforeachvalueoftheparameterisone
less than the corresponding cumulative frequency since we have chosen a range of random
numbersform00to99)
TABLE5
Arrivals Service
Waitin
g
Time
of
Arrival
Idle
Time
of
Server
1
2
3
4
5
6
7
8
9
10
78
78
06
04
97
71
78
61
05
95
3.5
3.5
1.0
1.0
4.5
3.0
3.5
2.5
1.0
4.5
3.5
7.0
8.0
9.0
13.5
16.5
20.0
22.5
23.5
28.0
54
24
51
45
46
84
58
58
60
24
1.5
1.0
1.5
1.5
1.5
2.0
1.5
1.5
1.5
1.0
3.5
7.0
8.0
9.5
13.5
16.5
20.0
22.5
24.0
28.0
5.0
8.0
9.5
11.0
15.0
18.5
21.5
24.0
25.5
29.0
Total
0.5
0.5
3.5
2.0
2.5
1.5
1.5
1.0
2.5
1.0 14.5
The service facility is made available at clock time zero and the server has to be idle for 3.5
minuteswhentheserviceforfirstarrivalstarts.Theserviceiscompletedat5.0minutesandagain
theserverisidlefor2minutestillthesecondarrivaljoinsthesystem.Thefirstthreearrivalsget
immediateserviceandtheydonthavetowait,astheserverisidlewhen theyarrive.Thefourth
A
r
r
i
v
a
l
N
o
.
R
a
n
d
o
m
N
o
.
T
i
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167
arrival who joins at 9.0 minutes has to wait for .5 minute when the service for the third is
completed.Similarlythewaitingtimeandidletimecanbecomputedforfurtherarrivals.
Totalelapsedtime=29minutes
Waitingtimeofarrival=1minute
Percentageofwaitingtime= 4 . 3
29
10 1
=

Idletimeforserver=14.5minutes
Percentageofidletime= 50
29
100 5 . 14
=

10.3.2.UseofRandomNumberTables
The random numbers could be selected by any random process, such as drawing numbered
chips from a hat. However, it is convenient to use a table of random numbers which in fact is
preparedonthebasisofsomesuchphysicalphenomenon.Thegroupingofrandomnumbersin
the tables hasno significanceandone shouldbe concerned with individual digits only. The first
randomnumbercouldbepickedatrandomfromanypointinthetablesandthesubsequentones
are to be selectedproceeding sequentially either inaverticalor horizontal direction. Depending
uponthenumberofdigitsrequired,therandomnumberswillbechoseninsetsofsingledigit,two
digitnumbers,etc.PseudoRandomNumbers
Truly random numbers cannot be produced by an algorithm and hence random numbers
generatedbyusingarecursiveequationarereferredtoaspseudoRandomNumbers.
Thereareseveralmethodsofgeneratingpseudorandomnumbersbutweshallbrieflydescribe
onlytheMidSquareMethod.Operationstartswithanarbitraryfourdigitintegercalledtheseed.
Toobtainthefirstrandomnumber,theseedissquaredandalldigitsexceptthemiddlefourare
ignored.Theprocessisthenrepeatedeachtimeusingthepreviousrandomnumberasthenew
seed.
Seed
0
U
=8695
( )
2 2
0
8695 U =
=75603025
Takingthemiddle4digits,
1
U =6030
2
1
U =36360900
2
U =3609
168
Repeatingtheaboveprocedure:
3035 U , 3782 U , 0615 U , 0248 U
6 5 4 3
= = = =
2436 U , 2063 U , 4605 U , 2112 U
10 9 8 7
= = = =
One of the basic disadvantages of the mid square method is that the generated numbers may
startcyclingafterashortsetofrandomnumbersisobtained.
There are methodsby which the seedcan be chosen, soas to obtainafairly long sequence of
numbersbeforecyclingstarts.Alsostatisticaltestsareavailabletocheckwhetherthegenerated
sequenceistrulyrandom.
ExaminewhetherthefollowingstatementsareTrueorFalse
1. Inanysimulationprobleminitialconditionsarestated.
2. Assignedrandomnumbersforcumulativeprobabilityvalues
3. Withoutidentifyinganyrelationshipbetweenvariableswecansolvethesimulationproblem.
10.4SampleSize
As we have seen with the coin tossing experiment, the larger the number of trials, the more
confidentwecanbeinourestimates.Thequestionthatarisesishowmanytrialsforsimulation?
If the experiment is as simple as tossing a coin involving only one variable, the sample size
requiredforagivenconfidencelevelataspecifieddegreeofaccuracycanbeworkedout.
Example2
Ifitisneededtobe95%certainofbeingcorrectinanexperimentwithmarginalerrorof1%ofthe
truevalue,whatshouldbethesamplesize?
Solution: Let p betheproportionaspercentofsuccess.
Standarderrorwillbe ( )
n
p 100 p -
Where n isthesamplesize.
Thestandardnormaldeviatevaluecorrespondingto95%confidencelevelfromnormaltablesis
1.96.
Marginoferror=1.96 1
n
) p 100 ( p
=
-
169
\ ( ) p 100 p 96 . 1 n
2
- =
( ) p 100 p - ismaximumfor p =50
Hence,thevalueof n =9600.
Usually,asimulationmodelinvolvesseveralvariablesanditmaynotbepossibletodeterminethe
numberoftrialsrequiredtoobtainthedesiredaccuracyataspecifiedconfidencelevel.
Onecanonlysaythattheaccuracyassociatedwithsimulationimprovesasthesquarerootofthe
numberoftrialsandhencethereisaneedforalargenumberoftrials.
This calls for a great deal of computational effort and for most real life problems, the use of
computer becomes inevitable. In fact, special simulation languages such as GPSS and
SIMSCRIPT have been developed to save time and effort required to structure and debug
simulationmodels.
A practical indicator of when to stop simulation trials is given by the fact that the results which
violently fluctuate initially tend to stabilize as the simulation is continued. If the successive
cumulativeresultstallyreasonablewell,thesimulationmaybestopped.Thedegreeofaccuracy
required,ofcourse,varieswiththeproblemonhandandcallsforthejudgmentoftheanalyst.
DoyouagreeorNotgiven:
1. Standarderrorforpercentageofsuccess=(P(1p)/n)
1/2
2. Itispossibletodeterminenumberoftrials.
3. Theaccuracyofresultsincreasesasthesquareofnumberoftrials.
10.5. ApplicationofSimulation
The range of application of simulation in business is extremely wide. Unlike the other
mathematical models, through abstract, simulation can be easily understood by the users and
therebyfacilitatestheiractiveinvolvement.This,inturn,makestheresultsmorereliableandalso
ensures easy acceptance for implementation. The degree to which a simulation model can be
made close to reality is dependent upon the ingenuity of the O.R team who should identify the
relevantvariablesaswellastheirbehaviour.
We have already seen by means of an example how simulation could be used in a queuing
system. It can also be employed for a wide variety of problems encountered in production
170
systems thepolicyforoptimal maintenancein terms offrequencyof replacement of spares or
preventive maintenance, number of maintenance crews, number of equipment for handling
materials,job shop scheduling, routingproblems, stockcontrol and soforth. Theother areas of
application include dock facilities, facilities at airports to minimize congestion, hospital
appointmentsystemsandevenmanagementgames.
As in the case of other O.R. models, with the help of simulation, the manager tries to strike a
balance between opposing costs of providing facilities (which usually mean long term
commitmentoffunds)andtheopportunityandothercostsofnotprovidingthem.
10.5.1Limitations:
Simulation approach is recognized as a powerful tool for management decision making. This
does not mean that one should ignore the cost associated with a simulation study for data
collection,formationofthemodelandthecomputertime.Oftenthisisquitesignificant.
Asimulationapplicationisbasedonthepremisethatthebehaviourpatternofrelevantvariables
is known, and this very premise sometimes becomes questionable. Not always can the
probabilitiesbeestimatedwitheaseordesiredreliability.Theresultsofsimulationshouldalways
be compared with solutions obtained by other methods wherever possible, andtempered with
managerialjudgment.
10.5.2SomeExamples
Example3
Abreadvendorbuyseverymorningloavesofbreadat0.45eachbyplacinghisorderonedayin
advance (at the time of receiving his previous order) and sells them at Rs. 0.70 each. Unsold
bread can be sold the next day at Rs. 0.20 per loaf and thereafter should be treated as of no
value.Thepatternofdemandforbreadisgivenbelow:
FreshBread OnedayoldBread
Daily
Sales
Probability
ofdemand
Daily
Sales
Probabilit
y
of
demand
50
51
52
53
54
55
0.01
0.03
0.04
0.07
0.09
0.11
0
1
2
3
0.10
0.20
0.08
0.02
171
56
57
58
59
60
0.15
0.21
0.18
0.09
0.02
Thevendoradoptsthefollowingorderrule.Ifthereisnostockwithhimattheendoftheprevious
day,heorders60units.Otherwiseheorders50or55whicheverisnearesttheactualfreshbread
saleonthepreviousday.Startingwithzerostockandapendingorderfor55loaves,simulatefor
10daysandcalculatethevendorsprofits.
Solution
TABLE6
Allocationofrandomnumbers
FreshBread Onedayoldbread
50
51
52
53
54
55
56
57
58
59
60
0.01
0.03
0.04
0.07
0.09
0.11
0.15
0.21
0.18
0.09
0.02
0.01
0.04
0.08
0.15
0.24
0.35
0.50
0.71
0.89
0.98
1.00
00
0103
0407
0814
1523
2434
3549
5070
7188
8997
9899
0
1
2
3
0.70
0.20
0.08
0.02
0.70
0.90
0.98
1.00
00to
69
70to
89
90to
97
98and
99
Wecannowconstructatabletosee,throughsimulationhowthestocksandsalesfluctuate.
D
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172
TABLE7
Resultsofsimulation
FRESHBREAD ONEDAYOLDBREAD
Day
Receipt
ofthe
Startof
day
Rando
mNo
Sale
Closin
g
stock
Order
for
next
day
Openi
ng
Stock
Rando
m
No
Sale
1
2
3
4
5
6
7
8
9
10
Total
55
60
60
50
55
60
60
55
55
60
570
72
06
12
14
79
70
85
71
21
98
15
58
52
53
50 5
8
55
58
57
58
55 5
8
54
60
549
0
8
7
0
0
3
2
0
1
0
60
60
50
55
60
60
55
55
60
55
0
0
8
7
0
0
3
2
0
1
21
86
54
88
58
48
0
0
1
0
0
0
1
0
0
0
2
* Representslostsalesasstockislimited
@previousdaysclosingstockiszero
Estimatedprofit=(549x0.70+2x0.20)570x0.45=Rs.128.20
Example4
Themaintenancemanagerofachemicalcompanyisinterestedindeterminingarationalpolicyfor
maintenanceofapneumaticconveyingequipment.Theequipmentisapartoftheprocesslineand
hence production holding. It has one bearing each on the inlet side (A) and the outlet side (B).
Wheneverthereisafailureofanybearing,ithastobereplacedimmediately.Thecompanyhasa
good system of maintaining records on performance of the equipment and the following data is
available:
173
No.offailures
Ageatfailure
(hours)
Inletside
bearing(A)
Outletside
bearing(B)
150
300
450
600
750
900
1,050
1,200
1,350
7
16
18
23
14
10
7
5
0
0
3
9
12
16
18
33
7
2
The cost of bearing is Rs. 300 each for A and Rs. 500 each for B. The cost of downtime of
equipmentisRs.700perhour,andittakes2hourstoreplaceonebearingeitheratinletoroutlet
sideand3hourstoreplaceboththebearings.
Thethreemaintenancepoliciestobeevaluatedare
i) replaceabearingonlywhenitfails,
ii) replaceboththebearingsifonefails,
iii) replacethebearingwhichfailsplustheotheroneifithasbeeninuseformorethanits
iv) estimatedaverageservicelifei.e.600hoursforbearingAand860hoursforbearingB.
Findthebestalternativethroughsimulation.
Solution
Itisassumedthatthefailureofabearingisindependentofthemaintenancepolicyfollowed.
Randomnumbersareallocatedfordifferentfailuretimes:
174
TABLE8
BearingA BearingB
Life(hrs)
Cumulative
probability
Random
Nos.
Cumulative
probability
Random
Nos.
150
300
450
600
750
900
1050
1200
1350
0.07
0.23
0.41
0.64
0.78
0.88
0.95
1.00
00to96
07to22
23to40
41to63
64to77
78to87
88to94
95to99
0.00
0.03
0.12
0.24
0.40
0.58
0.91
0.98
1.00
00to02
03to11
12to23
24to39
40to57
58to90
91to97
98and99
We can now select random numbersformthetablesandgenerate a setof12 bearing lives,for
eachofthebearings.
TABLE9
1 10 300 300 99 1350 1350
2 22 300 600 96 1200 2550
3 24 450 1050 18 600 3150
4 42 600 1650 36 750 3900
5 37 450 2100 50 900 4800
6 77 750 2850 79 1050 5850
7 99 1200 4050 80 1050 6900
8 96 1200 5250 96 1200 8100
9 89 1050 6300 34 750 8850
10 85 900 7200 07 450 9300
11 28 450 7650 62 1050 10,350
12 63 600 8250 77 1050 11,400
Letuscomparethecostsofthethreepoliciesforthefirst7200hours.
PolicyI. Replaceabearingonlywhenitfails.
Arequiresreplacement10times,andB7timesduringthis periodas seen
fromthelivesofsuccessivebearings.
Totalcost= Costofbearing+costofdowntime
= (300x10+500x7)+(17x2x700)
= Rs.30,300
PolicyII:Replaceboththebearingifonefails.
Serial
No.
RandomNo. BearingA Cum.Life RandomNo. BearingB Cum.Life
175
TABLE10
300 A3001200
600A450600
1050A600 750
1650A450900
2100A7501050
2850A1200 1050
3900B12001200
5100A&B1050750
5850B 900450
6300B4501050
6750A6001050
7350 A
Thereare11replacementsduringtheperiod.
Totalcost=11x(300+500)+11x3x700
=Rs.31,900
PolicyIII: Replacethebearingwhichfailsplustheotheroneinusefor600ormorehoursforA
and860ormorehoursincaseofB.
Table1211givestheanalysis.
Thereare4replacementsofAonlyonfailureand7replacementsbothbearings.
Totalcost=4(300+2x700)+7(800+3x700)
=Rs.27,100
PolicyIIIisthecheapest.
The simulation is limited to 7200 hours of operation since the purpose is only to illustrate the
method.Withsuchsmallnumberoftrialstheresultsmayturnouttobeerratic.ConsiderPolicyI
again.Withadifferentsetofrandomnumbersandextendedsimulationthere maybeoccasions
of both bearing failing at the same time, thus affecting the cost of downtime for replacement.
Simulationwithsufficientlylargenumberoftrialsonlycanleadtodependabledecisions.
Elapsedtime
(hrs)
Bearingwhich
failsfirst
Life(hrs)of
newlyfittedbearingA
(fromTable129)
Life(hrs)of
newlyfittedbearingB
(fromTable129)
176
TABLE11
(1) (2) (3) (4) (5) (6) (7) (8) (9)
0 300 1350 A 300 300 BNo 1050 Replace
A
300 300 1050 A 600 600 BNo 750 Replace
A
600 450 750 A 1050 1050 BYes Replace
A&B
1050 600 1200 A 1650 600 BNo 600 Replace
A
1650 450 600 A 2100 1050 BYes
ReplaceA&B
2100 750 600 B 2700 600 AYes Replace
A&B
27001200 750 B 3450 750 AYes Replace
A&B
34501200 900 B 4350 900 AYes Replace
A&B
43501050 1050 A&B 5400 Replace
A&B
5400 900 1050 A 6300 900 BYes Replace
A&B
6300 450 1200 A 6750 450 BNo 750 Replace
A
6750 600 750 A 7350 1050 BYes
ReplaceA&B
This will be the total life(from Table 12 9) if newly fitted. For survivors from previous
replacement,thiswillbethebalancelife(col.8)
Startofthe
period
Lifeofbearing
inservice
*
(hrs)
Bearing
which
failsfirst
Time
elapsed
(hrs)
Ageof
surviving
bearing
Didthesurviving
bearing(A|B)
completeits
estimated
averagelife?
IfNoin
col7balance
life
ofsurviving
bearing
Replacement
policy
A B
177
Example5:
Afactoryproduces150scooters.Buttheproductionratevarieswiththefollowingdistribution.
Production
Rate
147 148 149 150 151 152 153
Probability 0.05 0.10 0.15 0.20 0.30 0.15 0.05
Atpresentitcallsforatrackwhichwillhold150scooters.Usingthefollowingrandomnumbers
determine the average number of scooters waiting for shipment in the factory and average
numberofemptyspaceinthetruck.
RandomNumbers82,54,50,96,85,34,30,02,64,47
Solution:
ProductionRate Probability CumulativeProbability RandomNumberassigned
147 0.05 0.05 0004
148 0.10 0.15 0514
149 0.15 0.30 1529
150 0.20 0.50 3049
151 0.30 0.80 5079
152 0.15 0.95 8094
153 0.05 1.00 9599
Simulationworksheet
TrialNo
Random
No.
SimulatedProduction
Rate
ScooterWaitingin
thefactory
Numberof
examplespaces
inthetruck
1 82 152 2
2 54 150
3 50 150
4 96 153 3
5 85 152 2
6 34 150
7 30 150
8 02 147 3
9 64 151 1
10 47 150 2
Total 8 3
\ Averagenumberofscooterswaiting=8/10=0.8/day
Averagenumberofemptyspace=3/10=0.3/day
Example6:
Dr.Strung is a dentist. He givesappointment to patientsevery halfan hour. However he does
178
not know the nature if illness of patients arriving at this clinic. From past record he has the
followingprobabilitydistributionandalsoknowtheexacttreatmenttimings.Hestartshisclinicat
8.00amusingthefollowinginformationdeterminetheaveragewaitingtimeofthecustomersand
idletimeofthedoctor.
Natureofillness Probability Timetakenfor
treatment(mts)
Filling 0.10 50
Checkup 0.30 15
Crowning 0.15 40
Cleaning 0.30 15
Extraction 0.15 30
RandomNumbers56,40,26,66,87,48,17,22,04,15
Solution:
Illness Probability Cum.Prob RandomNo.assigned
Filling 0.10 0.10 0009
Checkup 0.30 0.40 1039
Crowning 0.15 0.55 4054
Cleaning 0.30 0.85 5584
Extraction 0.15 1.00 8599
Simulationworksheet
Trial
No
Random
No.
Natureof
illness
Time
Taken
Patients
Arrival
Time
Treatment Doctor
identification
Patients
waiting
time
Starts Finisher
1 56 Cleaning 15 8.00 8.00 8.15
2 40 Crowning 40 8.30 8.30 9.10 15
3 26 Checkup 15 9.00 9.10 9.25 10
4 66 Cleaning 15 9.30 9.30 9.45 5
5 87 Extraction 30 10.00 10.00 10.30 15
6 48 Crowing 40 10.30 10.30 11.10
7 17 Checkup 15 11.00 11.10 11.25 10
8 22 Checkup 15 11.30 11.30 11.45 5
9 04 Filling 50 12.00 12.00 12.50 15
10 15 Checkup 15 12.30 12.50 13.05 20
Total 45 40
Doctorsidletime=45mts
PatientsAveragewaitingtime=40/10=4mts
179
ExaminewhetherfollowingstatementsareTrueorFalse
1. Simulationgivesoptimumsolution.
2. Simulationinterruptsrealsystemactivities.
3. Thistechniquecanbeeasilyunderstoodbynontechnicalmangers.
10.6 Summary
In this unit we studied the basics concepts concerned with simulations and then we continued
furthertofindsimulationsprocedure.Theallocationofrandomnumberswasdiscussednextwith
theuseofrandomnumbertables.Westudiedthesamplesizeandtheapplicationofsimulationat
theend.
TerminalQuestions
1) Brieflywritedownthebasicconceptsconcernedwithsimulation.
2) Whatdoyoumeanbysimulationprocedure?
3) Brieflyexplaintheuseofrandomnumbertables.
4) Discussthedifferentapplicationsofsimulation.
5) TwocomponentshavetobeproducedinM/CAandM/CBandthenfinallyassembled.The
timetakentoassembleontwomachinesvarieswiththefollowingprobabilitydistribution.
Using simulation technique and theordered pairof randomnumbers,firstfor M/C A and
secondforM/CB.Findtheaveragetimetakentoproduced.
M/CA M/CB
Production
timeinmts
Probability Production
timeinmts
Probability
22 0.15 30 0.05
23 0.20 31 0.15
24 0.30 32 0.25
25 0.20 34 0.25
26 0.15 35 0.20
36 0.10
RandomNumbers(10,92)(25,83)(36,76)(44,15)(57, 25)(62,67)(04,99)(72,53)(81,
35)(94,07)
180
1.Managementlaboratory
2.Equallylikely
3.1
1.Agree 2.Agree 3.Disagree
1.False 2.False 3.True
AnswerForTerminalQuestions
1) ReferSection10.2
2) ReferSection10.3
3) ReferSection10.3.3
4) ReferSection10.5
5) 57.7minutes.
SikkimManipalUniversity 182
Unit11 ProjectSchedulingandPERTCPM
Structure
11.1.Introduction
11.2.BasicdifferencebetweenPERTandCPM
11.2.1 PERT
11.2.2 CPM
11.2.3 ProjectschedulingbyPERTCPM
11.3.PERT/CPMnetworkcomponentsandprecedencerelationship
11.3.1 CriticalPathCalculations
11.3.2 DeterminationoftheCriticalPath
11.3.3 DeterminationofFloats
11.4. ProjectManagementPERT
11.5.Summary
TerminalQuestions
AnswerstoSAQsandTQs
11.1. Introduction
Aprojectsuchasconstructionofabridge,highway,powerplant,repairandmaintenanceofanoil
refinery or an air plane design, development and marketing a new product, research and
developmentetc.,maybedefinedasacollectionofinterrelatedactivities(ortasks)whichmust
be completedina specifiedtimeaccording toaspecified sequenceandrequire resources such
aspersonnel,money,materials,facilitiesetc.
Thegrowingcomplexitiesoftodaysprojectshaddemandedmoresystematicandmoreeffective
planning techniques with the objective of optimizing the efficiency of executing the project.
Efficiencyhereimplieseffectingtheutmostreductioninthetimerequiredtocompletetheproject
whileaccountingfortheeconomicfeasibilityofusingavailableresources.
Projectmanagementhasevolvedasanewfieldwiththedevelopmentoftwoanalytictechniques
forplanning,schedulingandcontrolling projects.ThesearetheCriticalPathMethod(CPM)and
the Project Evaluation and Review Technique (PERT). PERT and CPM are basically time
orientedmethodsinthesensethattheybothleadtothedeterminationofatimeschedule.
LearningObjectives:
1. Whatisaproject?
2. Whatisprojectmanagement?
3. ApplicationofPERT/CPMmethodtonetworkanalysis
11.2. BasicdifferencebetweenPERTandCPM
Though there are no essential differences between PERT and CPM as both of them share in
common the determination of a critical path and are based on the network representation of
activitiesandtheirschedulingthatdeterminesthemostcriticalactivitiestobecontrolledsoasto
meetthecompletiondateoftheproject.
11.2.1 PERT
1. SincePERTwasdevelopedinconnectionwithanRandDwork,thereforeithadtocopewith
theuncertaintieswhichareassociatedwithRandDactivities.InPERT,totalprojectduration
isregardedasarandomvariableandthereforeassociatedprobabilitiesarecalculatedsoas
tocharacteriseit.
2. Itisaneventorientednetworkbecauseintheanalysisofnetworkemphasisisgivenanimportant
stages of completion of task rather than the activities required to be performed to reach to a
particulareventortask.
3. PERT is normally usedfor projects involving activities of nonrepetitive nature in which time
estimatesareuncertain.
4. Ithelpsinpinpointingcriticalareasinaprojectsothatnecessaryadjustmentcanbemadeto
meetthescheduledcompletiondateoftheproject.
11.2.2 CPM
1. Since CPM was developed in connection with a construction project which consisted of
routinetaskswhoseresourcesrequirementanddurationwasknown withcertainty,therefore
itisbasicallydeterministic.
2. CPMissuitableforestablishingatradeoffforoptimumbalancingbetweenscheduletimeand
costoftheproject.
3. CPMisusedforprojectsinvolvingactivitiesofrepetitivenature.
11.2.3ProjectschedulingbyPERTCPM
Itconsistsofthreebasicphases:planning,schedulingandcontrolling.
1. ProjectPlanning:Thevariousstepsinvolvedduringthisphasearegivenbelow:
i) Identifyvariousactivities(taskorworkelements)tobeperformedintheproject.
ii) Determiningrequirementofresourcessuchasmen,materials,machinesetc.,forcarrying
outactivitieslistedabove.
iii) Estimatingcostsandtimesforvariousactivities.
iv) Specifyingtheinterrelationshipamongvariousactivities.
v) Developing a network diagram showing the sequential interrelationships between the
variousactivities.
2. Scheduling:Oncetheplanningphaseisover,schedulingoftheproject,iswheneachofthe
activitiesrequiredtobeperformed,istakenup.Thevariousstepsinvolvedduringthisphase
arelistedbelow:
1. Estimatingthedurationsofactivities,takingintoconsiderationstheresourcesrequiredfor
theseexecutioninmosteconomicmanner.
2. Basedonthesetimeestimates,preparingatimechartshowingthestartandfinishtimes
for each activity, and hence calculation of total project duration by applying network
analysis techniques such as forward (backward) pass and floats calculation identifying
the critical path carrying out resource smoothing (or levelling) exercise for critical or
scarce resources including recosting of the schedule taking into account resource
constraints.
3. Project Control: Project control refers to revaluatingactualprogress against the plan.If
significantdifferencesareobservedthenreschedulingmustbedonetoupdate
andrevisetheuncompletedpartoftheproject.
VerifywhetherthefollowingstatementsareTrueorFalse
1. Projectconsistsofinterrelatedactivities.
2. Projectactivitiesaretobecompletedinaspecifiedtimeaccordingtospecifiedsequence.
3. PERTandCPMidentifiesnoncriticalactivities.
4. PERTisactivityorientednetwork.
5. CPMisusedforprojectsthatarerepetitiveinnature.
11.3 PERT/CPMNetworkComponents And PrecedenceRelationship
PERT/CPMnetworksconsistsoftwomajorcomponentsasdiscussedbelow:
a) Events: An event represents a point in time that signifies the completion of some activities
and the beginning of new ones. The beginning and end points of an activity are thus
described by 2 events usually known as the Tail and head events. Events are commonly
represented by circles (nodes) in the network diagram. They do not consume time and
Resource
b) Activities:Activitiesofthenetworkrepresentprojectoperationsortasktobeconducted.An
arrow is commonly used to represent an activity, with its head indicating the direction of
progress in the project. Activities originating from a certain event cannot start until the
activities terminating at the same event have been completed. They consume time and
Resource.
Eventsinthenetworkdiagramareidentifiedbynumbers.Numbersaregiventoeventssuchthat
arrowheadnumbermustbegreaterthanarrowtailnumber.
Activitiesareidentifiedby thenumbers of their starting (tail)eventand ending (head) event.An
arrow(i.J)extendedbetweentwoevents,thetaileventirepresentsthestartoftheactivityand
theheadeventJrepresentsthecompletionoftheactivityasshowninFig.9.1:
Fig.9.1
J i
Startingevent CompletionEvent
Activity
Figure9.2showsanotherexample, whereactivities(1,3)and(2,3) mustbe completedbefore
activity(3,4)canstart.
Fig.9.2
Therulesforconstructingthearrowdiagramareasfollows:
1. Eachactivityisrepresentedbyoneandonlyonearrowinthenetwork.
2. Notwoactivitiescanbeidentifiedbythesameheadandtailevents.
3. Toensurethecorrectprecedencerelationshipinthearrowdiagram,thefollowingquestions
mustbeansweredaseveryactivityisaddedtothenetwork:
a) Whatactivitiesmustbecompletedimmediatelybeforetheseactivitycanstart?
b) Whatactivitiesmustfollowthisactivity?
c) Whatactivitymustoccurconcurrentlywiththisactivity?
This rule is selfexplanatory. It actually allows for checking (and rechecking) the precedence
relationshipsasoneprogressesinthedevelopmentofthenetwork.
Example1:ConstructthearrowdiagramcomprisingactivitiesA,B,C..andLsuchthatthe
followingrelationshipsaresatisfied:
1) A,BandCthefirstactivitiesoftheproject,canstartsimultaneously.
2) AandBprecedeD.
3) BprecedesE,FandH.
4) FandCprecedeG.
5) EandHprecedeIandJ.
6) C,D,FandJprecedeK.
7) KprecedesL.
8) I,GandLaretheterminalactivitiesoftheproject.
1
2
3 4
Fig.9.3
The dummy activities D
1
and D
2
are used (dotted lines) to establish correct precedence
relationships.D
3
isusedtoidentifyactivitiesEandHwithuniqueendevents.Theeventsofthe
projectarenumberedsuchthattheirascendingorderindicatesthedirectionoftheprogressinthe
project.
Note:Adummyactivityinaprojectnetworkanalysishaszeroduration.
11.3.1. CriticalPathCalculations
The application of PERT/CPM should ultimately yield a schedule specifying the start and
completiontimeofeachactivity.Thearrowdiagramisthefirststeptowardsachievingthatgoal.
The start and completion times are calculated directly on the arrow diagrams using simple
arithmetic.Theendresultistoclassifytheactivitiesascriticalornoncritical.Anactivityissaid
tobecriticalifadelayinthestartofthecoursemakesadelayinthecompletiontimeoftheentire
project. A noncritical activity is such that the time between its earliest start and its latest
completiontimeislongerthanitsactualduration.Anoncriticalactivityissaidtohaveaslackor
floattime.
11.3.2. DeterminationoftheCriticalPath
A critical pathdefinesa chainof critical activitiesthat connects the start andend events of the
arrowdiagram.Inotherwords,thecriticalpathidentifiesallthecriticalactivitiesoftheproject.
The critical path calculations include two phases. The first phase is called the Forward Pass
where all calculations begin from the start node and move to the end node. At each node a
numberiscomputedrepresentingtheearliestoccurrencetimeofthecorrespondingevent.These
J
numbersareshowninsquares.Inforwardpasswenotethenumberofheadsjoiningtheevent.
We take the maximum earliest timing through these heads.The second phase called the
Backwards Pass, begins calculations from the end node and moves to the start node. The
numbercomputedateachnodeisshowninatriangle D nearendpointwhichrepresentthelatest
occurrencetimeofthecorrespondingevent.ConsidertheforwardpassInbackwardpasswesee
thenumberoftailsandtakeminimumvaluethroughthesetails.
LetES
i
betheearlieststart timeofalltheactivitiesemanatingfromeventi,i.e.ES
i
represents
the earliest occurrence time of event i, if i = 1 is the start event then conventionally, for the
critical path calculations, ES
i
= 0 , Let D
ij
be the duration of the activity (i, j). Then the forward
passcalculationsaregivenbytheformula:
ES
i
=max
i
{ES
i
+D
ij
},foralldefined(i,j)activitieswithES
i
=0.Thusinorder tocomputeEs
J
for
eventj,Es
i
forthetaileventsofalltheincomingactivities(i,j)mustbecomputedfirst.
WiththecomputationofallES
j
,theforwardpasscalculationsarecompleted.Thebackwardpass
starts from the end event. The objective of this phase to calculate LC
i
, the latest completion
timeforalltheactivitiescomingintotheeventi.Thusifi=nistheendeventLC
n
=ES
n
initiates
thebackwardpass.
Ingeneralforanynodei,LC
i
=min{LC
j
D
ij
}foralldefinedactivitiesarecalculated, whichends
thecalculationofbackwardpass.
Thecriticalpathactivitiescannowbeidentifiedbyusingtheresultsoftheforwardandbackward
passes.Anactivity(i,j)liesonthecriticalpathifitsatisfiesthefollowingconditions.
A) ES
I
=LC
i
B) ES
J
=LC
J
C) ES
J
ES
I
=LC
J
LC
I
=D
iJ
These conditionsactually indicate thatthereis nofloat or slack time between the earliest stand
and thelateststartoftheactivity.Thustheactivitymustcritical.Inthearrowdiagramtheseare
characterisedbynumbersinand D arethesameateachofthe headandtaileventsandthe
differencebetweenthenumberin(or D)attheheadeventandthenumberin(or D)atthetail
eventinequaltothedurationoftheActivity.
Thuswe willgetacriticalpath,whichischainofconnectedactivities,whichspansthenetwork
formstarttoend.
Example 2: Consider a network which stands from node 1 and terminate at node 6, the time
requiredtoperformeachactivityisindicatedonthearrows.
Fig.9.4
LetusstartwithforwardpasswithES
i
=0.
Sincethereisonlyoneincomingactivity(1,2)toevent2withD
12
=3.
ES
2
=ES
1
+DS
2
=0+3=3.
Letusconsidertheend3,sincethereonlyoneincomingactivity(2,3)toevent3,withD
23
=3.
ES
3
=ES
2
+D
23
=3+3=6.
ToobtainES
4
,sincetherearetwoactivitiesA(3,4)and(2,4)totheevent4withD
24
=2andD
34
=0.
ES
4
=max
i=2,3
{ES
i
+De
4
}
=max{ES
2
+D
24
,ES
3
+D
34
}
=max{3+2,6+0}=6
SimilaryES
5
=13andES
6
=19
Whichcompletedfirstphase.
Inthesecondphasewehave
LC
6
=19=ES
6
LC
5
=196=13
LC
4
=min
J=5,6
{LC
J
D
4J
}=6
LC
3
=6,LC
2
=3andLC
1
=0
\ activities(1,2),(2,3)(3,4)(4,5)(5,6)arecriticaland(2,4)(4,6),(3,6),arenoncritical.
Thustheactivities(1,2)(2,3)(3,4)(4,5)and(5,6)definethecriticalpathwhichistheshortest
possibletimetocompletetheproject.
11.3.3. DeterminationofFloats
Following the determination of the critical path, the floats for the noncritical activities must be
computed. Note that for the critical activities this float is zero. Before showing how floats are
determined,itisnecessarytodefinetwonewtimesthatareassociatedwitheachactivity.There
areLatestStart(LS)andtheEarliestCompletion(EC)times,whicharedefinedactivity(i,J)by
LS
eJ
=LC
J
D
iJ
andEC
eJ
=ES
i
+D
iJ
Thereare two important types offloatsnamely, Total Float (TF) and Free Float (FF). The total
float TF
iJ
foractivity (i, J)is the difference between the maximumtime available to perform the
activity(=LC
J
ES
i
)anditsduration(=D
iJ
)
Thatis,
TF
iJ
=LC
J
ES
I
D
iJ
=LC
J
EC
iJ
=LS
iJ
ES
i
Thefreefloatisdefinedbyassumingthatalltheactivitiesstartasearlyaspossible.Inthiscase
FF
iJ
foractivity(i,J)istheexcessofavailabletime(=ES
i
ES
i
)overitsdeviation(=D
iJ
)
thatis,FF
iJ
=ES
i
ES
i
=D
iJ
.
Note that onlyfor a critical activity must have zero total float. The free float must also be zero
when the total float is zero. The converse is not true, that is in the sense that a noncritical
activitymayhavezerofreefloats.
Letusconsidertheexampletakenbeforethecriticalpathcalculationstogetherwiththefloatsfor
thenoncriticalactivitiescanbesummarizedintheconvenientformshowninthefollowingtable:
Activit
y
(iJ)
Duration
D
iJ
Earliest Latest
Table
Float
TF
iJ
Free
Float
FF
iJ
Start
ES
i
Completio
n
EC
iJ
Start
LS
ij
Completio
n
DLC
J
(1,2)
(2,3)
(2,4)
(3,4)
(3,5)
(3,6)
(4,5)
(4,6)
(5,6)
3
3
2
0
3
2
7
5
6
0
3
3
6
6
6
6
6
13
3
6
5
6
9
8
13
11
19
0
3
4
6
10
17
6
14
13
3
6
6
6
13
19
13
19
19
0*
0*
1
0*
4
11
0*
8
0*
0
0
1
0
4
11
0
8
0
Note:Totalfloat=ES
ij
=LF
ij
ES
ij
Freefloat=TotalfloatHeadslack
*Criticalactivity*
Example3:AprojectconsistsofaseriesoftasksA,B,C,D,E,F,G,H,Iwiththefollowing
relationships. (W < X,Y means X and Y cannot starts until W is completed, X,Y < W means W
cannotstartuntilbothXand Yarecompleted).Withthisnotationconstructthenetworkdiagram
havingthefollowingconstraintsA<D,EB,D<FC<G,B<HF,G<I.
Find also the minimum time of completion ofthe project, the critical path, and the totalfloats of
eachtask,whenthetime(indays)ofcompletionofeachtaskisasfollows:
Task: A B C D E F G H I
Time: 23 8 20 16 24 18 19 4 10
Fig.9.5
ES
1
=0,ES
2
=20,ES
3
=23,ES
4
=59,ES
5
=39,ES
6
=57,ES
7
=67
Activity
(iJ)
Durati
on
D
iJ
Earliest Latest Table
Float
TF
iJ
Free
Float
FF
iJ
Start
ES
e
Finish
Ee
ij
Start
LJD
iJ
Finish
L
J
(1,2)
(1,3)
(1,4)
(2,5)
(3,4)
(3,7)
(4,5)
(4,6)
(5,6)
(5,7)
(6,7)
20
23
8
19
16
24
0
18
0
4
10
0
0
0
20
23
23
39
39
39
39
37
20
23
8
39
39
47
39
57
39
43
67
18
0
31
38
23
43
57
39
57
63
57
38
23
39
57
39
67
57
57
57
67
67
18
0*
31
18
0*
20
10
0*
18
24
0*
0
0
31
0
0
20
0
0
18
24
0
Criticalpathis13467.
Fillintheblanks
1. Eventsdonotconsume________and_________.
2. Arrowsheadnumberis_________thanitstailnumber.
3. Dummyactivityinnetworkisintroducedtkeepproper_________relationship.
4. Criticalpathcalculationincludeboth_________and_________.
11.4 ProjectManagementPERT
ProbabilityandCostConsiderationinProjectScheduling
TheanalysisinCPMdoesnottakeintothecasewheretimeestimatesforthedifferentactivities
areprobabilistic.Alsoitdoesnot considerexplicitlythecostofschedules.Herewe willconsider
bothprobabilityandcostaspectsinprojectscheduling.
Probability considerations are incorporated in project scheduling by assuming that the time
estimateforeachactivityisbasedon3differentvalues.Theyare
a= The optimistsic time, which will be required if the execution of the project goes extremely
well.
b= Thepessimistictime,whichwillberequiredifeverythinggoesbad.
m= Themostlikelytime,whichwillberequiredifexecutionisnormal.
Themostlikelyestimatemneednotcoincidewithmidpoint
2
b a +
ofaandb.Thenthe
expected duration of each activity D can be obtained as the mean of
2
b a +
and 2 m. i.e.
6
m 4 b a
3
m 2
2
b a
D
+ +
=
+
+
= .
ThisestimatecanbeusedtostudythesingleestimateDinthecriticalpathcalculation.
ThevarianceofeachactivitydenotedbyVisdefinedby
varianceV=
2
6
a b

-
.
Theearliest expected timesforthenodei denotedby E(m
i
) for each node iisobtainedby
taking the sum of expected times of all activities leading to the node i, when more than one
activityleadstoanodei,thengreatestofallE(m
i
)ischosen.Let m
i
bethe earliestoccurrence
time of the event i, we can consider m
i
as a random variable. Assuming that all activities of the
network are statistical independent, we can calculate the mean and the variance of the m
i
as
follows E{m
i
} = ES
I
and Var{m
i
} =
k
k
V . Where K defines the activities along the largest path
leadingtoi.
For the latest expected time, we consider the last node. Now for each path move backwords,
substitutingthe
eJ
D foreachactivity(ij).ThuswehaveE(L
J
)=E(m
a
)andE(m
i
)=L(L
J
)
iJ
D ifonly
onepatheventsfromJtoioritistheminimumof{E[L
J
)
iJ
D ]forallJforwhichtheactivities(i,j)
isdefined.
Note: The probability distribution of times for completing an event can be approximated by the
normaldistributionduetocentrallimittheorem.
Since m
i
represents the earliest occurrence time, event will meet a certain schedule time ST
i
(specifiedbyananalyst)withprobability
P
r
(m
i
ST
i
)=P
r

m
m -

m
m - m
) ( V
) ( E ST
) ( V
) ( E
i
i i
i
i i
=P
r
(Z K
i
)
whereZ ~N(01)andK
i
=
) ( V
) ( E ST
i
i i
m
m -
.Itiscommonpracticetocomputetheprobabilitythateventi
willoccurnolaterthanitsLC
e
suchprobabilitywillthenrepresentthechancethatthesucceeding
eventswilloccurwithinthe(ES
e
, LC
e
)duration.
Example4:Aprojectisrepresentedbythenetworkshownbelowandhasthefollowingdata.
Task A B C D E F G H I
OptimisticTime 5 18 26 16 15 6 7 7 3
PessimisticTime 10 22 40 20 25 12 12 9 5
MostLikelyTime 8 20 33 18 20 9 10 8 4
Determinethefollowing:
a) Expectedtasktimeandtheirvariance.
b) Theearliestandlatestexpectedtimestoreacheachevent.
c) Thecriticalpath.
Fig.9.6
d) Theprobabilityofaneventoccurringattheproposed completiondataif theoriginalcontract
timeofcompletingtheprojectis41.5weeks.
e) Thedurationoftheprojectthatwillhave96%channelofbeingcompleted.
Solution:
a) Usingtheformulawecancalculateexpectedactivitytimesandvarianceinthefollowingtable
2
6
a b
V ) m 4 b a (
6
1
D

-
= + + =
b)
Activity a B m v
12
13
14
25
26
36
47
57
67
5
18
26
16
15
6
7
7
3
10
22
40
20
25
12
12
9
5
8
20
33
18
20
9
10
8
4
78
2000
330
180
200
90
98
80
40
0.696
0.444
5.429
0.443
2.780
1.000
0.694
0.111
0.111
ForwardPass:
E
1
=0E
2
=7.8E
3
=20E
4
=33E
5
=258E
6
=29E
7
=42.8
BackwardPass:
L
7
=42.8L
6
=38.8L
5
=34.8L
4
=33.0L
3
=29.8L
2
=16.8L
1
=0.
TheEvaluesandLvaluesareshowninFig.
Fig.9.7
c) The critical path is shown by thick line in fig. The critical path is 147 and the earliest
completiontimefortheprojectis42.8weeks.
d) The last event 7 will occur only after 42.8 weeks. For this we require only the duration of
criticalactivities.Thiswillhelpusincalculatingthestandarddurationofthelastevent.
Expectedlengthofcriticalpath=33+9.8=42.8
Varianceofarticlepathlength=5.429+0.694=6.123
ProbabilityofmeetingthescheduletimeisgivenbyP
i
(Z K
i
)=
P
i
(Z0.52)=0.30(Fromnormaldistributiontable)
Thustheprobabilitythattheprojectcanbecompletedinlessthanorequalto41.5weeksis
0.30.Inotherwordsprobablythattheprojectwillgetdelayedbeyond41.5weeksis0.70.
e) GiventhatP(Z K
i
)=0.95.ButZ0.9S=1.6u,fromnormaldistributiontable.Then1.6u=
or
47 . 2
8 . 42 ST
u 6 . 1 is
) ( V
) ( E ST
i
i
i
i
-
=
m
m -
Sji=1.642.47+42.8=46.85weeks.
I) TrueorFalse
1) Inaprojectnetwork,asequenceofactivitiesmayformaloop.
2) Acriticalactivitymusthaveitstotalandfreefloatsequaltozero.
3) Anoncriticalactivitycannothavezerototalfloat.
4) Thecriticalpathofprojectnetworkrepresentstheminimumdurationneededtocomplete
thenetwork.
5) Anetworkmayincludemorethanonecriticalpath.
11.5. Summary
Critical Path computations are quite simple, yet they provide valuable information that
simplifies the scheduling of complex projects. The result is that PERTCPM techniques
enjoy tremendous popularity among practitioners in the field. The usefulness of the
techniques is further enhanced by the availability of specialized computer systems for
executing,analyzingandcontrollingnetworkprojects.
TerminalQuestions
1. WritedownthebasicdifferencebetweenPERTandCPM.
2. ExplainProjectManagement(PERT)
3. Aprojecthas10activities.Thefollowingtableshowstheinformationabouttheactivities.
Activity Precedingactivity Durationinweeks
A 6
B 3
C A 5
D A 4
E A 3
F C 3
G D 5
H B,D,E 5
I H 2
J I,G,F 3
a. Drawthenetwork
b. Findtheprojectduration
c. IdentifytheCPM
d. Preparetheschedule
4. Asmallprojectconsistingofeightactivitieshasthefollowingcharacteristics:
TIMEESTIMATES(INWEEKS)
Activity Precedingactivity Mostoptimistic
time(a)
Mostlikelytime
(m)
Mostpessimistic
time(b)
A None 2 4 12
B None 10 12 26
C A 8 9 10
D A 10 15 20
E A 7 7.5 11
F B,C 9 9 9
G D 3 3.5 7
H E,F,G 5 5 5
a. DrawthePERTnetworkfortheproject.
b. Determinethecriticalpath.
c. Ifa30weekdeadlineisimposed,whatistheprobabilitythattheprojectwillbefinishedwithin
thetimelimit?
d. If the project manager wants to be 99% sure that the project is completed on this schedule
date,howmanyweeksbeforethatdateshouldhestarttheprojectwork?
1.True 2.True 3.True 4.False 5.True
1.Time,resource
2.Greaterthan
3.Precedence
4. Forwardpass&backwardpass
1)False 2)True 3)True 4)True 5)False
3.b)20 weeks c) ADHIJ
4.b)ADGHc)0.6591d)34.7weeks
199
Unit12 GameTheory
Structure
12.1. Introduction
12.2. Competitivesituations
12.2.1. Marketingdifferentbrandsofacommodity
12.2.2. Campaigningforelections
12.2.3. Fightingmilitarybattles
12.3. Characteristicsofcompetitivegames
12.3.1 nPersonGame
12.3.2 ZeroSumGame
12.3.3 TwoPersonZeroSumGame(RectangularGame).
12.3.4 Strategy
12.3.5 PureStrategy
12.3.6 MixedStrategy
12.4. MaximinMinimaxprinciple
12.4.1. SaddlePoint
12.4.2. SolutiontoaGamewithSaddlePoint
12.5. Dominance
12.5.1 SolvingGamesUsingDominance
12.6. Summary
TerminalQuestions
AnswerstoSAQsandTQs
12.1 Introduction
GametheorywasdevelopedbyJohnVonNewman.Heworkedongametheoryrightfrom1928.
But,itgainedprominenceonlyafter1944whenhepublished(alongwithMrogenstren)thework
Theoryofgamesandeconomicbehaviour.Thisfield ofstudyisfastdevelopinganditishighly
resourceful.
200
LearningObjectives
1. Thecompetitivesituations
2. ApplicationofGameTheorytosuchsituations
3. FindasolutionusingSaddlepointandDominanceprinciple
12.2 CompetitiveSituations
Competitive situations occur when two or more parties with conflicting interests operate. The
situationsmayoccurasfollows.
12.2.1. Marketingdifferentbrandsofacommodity.
Two (or more) brands of detergents (soaps) try to capture the market by adopting various
methods (courses) such as advertising through electronic media, providing cash discounts to
consumersorofferinglargersalescommissiontodealers.
12.2.2. Campaigningforelections.
Two(ormore)candidateswhocontestanelectionstrytocapturemorevotesbyadoptingvarious
methods (courses) such as campaigning through T.V., door to door campaigning or
campaigningthroughpublicmeetings.
12.2.3. Fightingmilitarybattles.
Twoforcesfightingawartrytogainsupremacyoveroneanotherbyadoptingvariouscoursesof
actionsuchasdirectgroundattackonenemycamp,groundattacksupportedbyaerialattackor
playingdefensivebynotattacking.
We consider each ofthe above situations to bea competitive game where theparties (players)
adoptacourseofaction(playthegame).
Fillintheblanks
1. Competitive situation occur when ______ or ________ parties with ______ _________
operates.
2. Incompetitivegameprayershave_________numberofcoursesofactionavailabletothem.
12.3CharacteristicsofaCompetitiveGame
201
Acompetitivegamehasthefollowingcharacteristics.
1. Thenumberofplayers(competitors)isfinite.
2. Eachplayerhasfinitenumberofcoursesofaction(moves).
3. Thegameissaidtobeplayedwheneachplayeradoptsoneofhiscourseofaction.
4. Everytimethegameisplayed,thecorrespondingcombinationofcoursesofactionleadstoa
transaction (payment) to each player. Thepaymentis calledpayoff (gain). The payoff may
bemonetary(money)orsomesuchbenefitasincreasedsales,etc.
5.Theplayersdonotcommunicatetoeachother.
6.Theplayersknowtherulesofthegamebeforestarting.
12.3.1nPersonGame
Agameinwhichnplayersparticipatesiscallednpersongame.
Agameinwhichtwoplayersparticipateiscalled2person game(twopersongame).
12.3.2ZeroSumGame
Ifagameissuchthatwheneveritisplayedthesumofthegains(payoff)oftheplayersiszero,it
iscalledzerosumgame.
A zerosum game which has two players is called twoperson zerosum game. It is called
rectangulargame.
Inatwopersonzerosumgame,thegainoftheoneplayerisequaltothelossoftheother.
12.3.3TwoPersonZeroSumGame(RectangularGame).
Atwopersonzerosumgameisagameinwhich
i) twoplayersparticipate
ii) thegainofoneplayeritthelossoftheother.
Inatwopersonzerosumgame,lettheplayersbeAandB.Let
m 2 1
A ,... A , A bethemcourses
of action for player A. Let
n , 2 , 1
B ... B B be the n courses of action for player B. Let
) n .... , 2 , 1 j m ..... , 2 , 1 i ( a
ij
= = bethepayoff(gain)ofplayerAwhenheplaysthecourseofaction,
i
Aand player B plays the course of action
j
B . Then, thefollowing matrix is the payoff (gain)
matrixofplayerA.
202
PlayerB
n 2 1
B .......... .......... B B
PlayerA
m
2
A
.
.
.
A
A
Thisisa n m (readasmbyn)game.
Here,
ij
a isthegainofA.Also,
ij
a isthelossofB.Therefore,(
ij
a )isthegainofB.Andso,the
payoff matrix ofB isobtainedby writing (
ij
a ) in the place of
ij
a in theabove matrixand then
writingthetransposeofthematrix.
12.3.4Strategy
Inagame,thestrategyofaplayeristhepredeterminedruleby whichhechooseshis courseof
actionwhileplayingthegame.
Thestrategyofaplayermaybepurestrategyormixedstrategy.
12.3.5 PureStrategy
Whileplayingagame,purestrategyofaplayerishispredecisiontoadopta
specifiedcourseofaction(say
r
A )irrespectiveofthestrategyoftheopponent.
12.3.6MixedStrategy
Whileplayingagame,mixedstrategyofaplayerishispredecisiontochoosehiscourseofaction
accordingtocertainpreassignedprobabilities.
Thus,ifplayerAdecidestoadoptcoursesofaction
2
1
A and A withperspective probabilities0.4
and0.6,itismixedstrategy.
Example1:(2fingermorragame).
Two persons A and B play a game they should simultaneously raise their hand and exhibit
either one finger or two fingers. If both of them show one finger or if both show two fingers, A
shouldpay Rs. 10toB.On the other hand, ifone player shows onefingerand the other player
mn 2 m 1 m
n 2 22 21
n 1 12 11
a .......... .......... a a
. . .
. . .
. . .
a .......... .......... a a
a .......... .......... a a
203
showstwofingers,BshouldpayRs.5toA.
Here,thepayoffmatrixofAis
PlayerB
B1(onefinger) B2 (two
fingers)
PlayerA
A
1
(onefinger)
A
2
(twofingers)
10 5
5 10
Here, suppose player A decides to show one finger ) A (
1
, his strategy is pure strategy. On the
other hand, suppose A decides to play
1
A with probability 0.5 and
2
A with probability 0.5, his
strategyismixedstrategy.(Thismeans,ifheistoplayrepeatedly,sometimesheshouldplay
1
A
and at other times he should play
2
A . He should mix
1
A and
2
A randomly almost equal
numberoftimes.)
Writeonelineanswer
1. Stateanyonecharacteristicsofacompetitivegame.
2. WhendowecallagameasZerosumgame.
3. Whatisarectangulargame?
4. Whatispurestrategy?
12.4MaximinMinimaxPrinciple
(ofsolvingatwopersonzerosumgame)
SupposeplayerAandplayerBaretoplayagamewithoutknowingwhatthe
otherplayerwoulddo.However,playerAwouldliketomaximizehisprofitandplayerBwouldlike
tominimizehisloss.Andthus,eachplayerwouldexpecthisopponenttobecalculative.
Supposeplayer A plays
1
A .Then,hisgainwouldbe
n 1 12 11
a ,... a , a according
asBschoiceis
n 2 1
B ,... B , B .Let } a ,... a , a { min
n 1 12 11 1
= a .Then,
1
a istheminimumgainofA
whenheplays
1
A .(Here,
1
a istheminimumpayoffinthefirstrow.)Similarly,ifAplays
2
A ,his
minimumgainis
2
a whichistheleastpayoffinthesecondrow.Thusproceeding,wefindthat
corresponding to As play
m 2 1
A ,...... A , A , the minimum gains are the row
minimums
m 2 1
,.. , a a a .SupposeAchoosesthatcourseofwhich
i
a ismaximum.Thismaximum
204
oftherowminimuminthepayoffmatrixiscalledmaximin.Themaximinis

= ) a (
j
min
i
max
ij
a
Similarly,whenBplays,hewouldminimizehismaximumloss.ThemaximumlosstoBwhen
j
B
is ) a (
ij
max
i
j
= b .Thisisthemaximumpayoffinthe
th
j column.Theminimumofthecolumn
maximumsinthepayoffmatrixiscalledminimax.Theminimaxis

= ) a (
i
max
j
min
ij
b
Forsomegames,themaximinandtheminimaxareequal.Thatis,
) say ( v = =b a .Suchgamesaresaidtohavesaddlepoint.
On the other hand, if b a < , the game does not have saddle point.
(Notethat a cannotbegreaterthan b ).
12.4.1.SaddlePoint
Inatwopersonzerosumgame,ifthemaximinandtheminimaxareequal,wesaythatthegame
hassaddlepoint.
Saddlepointisthepositionwherethemaximin(maximumoftherow
minimums)andminimax(minimumofthecolumnmaximums)coincide.
Ifthemaxminoccursinthe
th
r rowandiftheminimaxoccursinthe
th
s column,theposition(r,s)
isthesaddlepoint.Here,
rs
a v = isthecommonvalueofthemaximinandtheminimax.Itiscalled
thevalueofthegame.
ThevalueofagameistheexpectedgainofplayerAwhenboththeplayersadoptoptimal
strategy.
Note1: If agame has saddlepoint, andif (r, s) is the saddlepoint,suggested solutiontoboth
theplayersispurestrategy.ForplayerA,thesuggestedsolutionis
r
A .ForplayerB,the
suggestedsolutionis
s
B .
Note2: Ifagamedoesnothavesaddlepoint,thesuggestedsolutionismixedstrategy.
Note3:Agameissaidtobefairifitsvalueiszero.
205
12.4.2.SolutiontoaGamewithSaddlePoint
ConsideratwopersonzerosumgamewithplayersAandB.Let
m 2 1
A ,... A , A bethecoursesof
actionforplayerA.Let
n 2 1
B ,..... B , B bethecoursesofactionforplayerB.
Thesaddlepointofthegameisfoundasfollows.
1. Theminimumpayoffineachrow ofthepayoffmatrixiscircled(markedwith)
2. Themaximumpayoffineachcolumnisboxed(markedwith)
3. Intheaboveprocess,ifanypayoffiscircledaswellasboxed,thatpayoffisthevalueofthe
game.Thecorrespondingpositionisthesaddlepoint.
Let (r, s) be the saddle point. Then, the suggested pure strategy for player A is
r
A . The
suggestedpurestrategyforplayerBis
s
B .Thevalueofthegameis
rs
a .
Note: However, in the above procedure, if none of the payoff is circled as well as boxed, the
gamedoesnothavesaddlepoint.Andso,thesuggestedsolutionfortheplayersismixed
strategy.
Example2:
Verify whether the 2finger morragameexplained earlierhas saddlepoint.Ifso, writedown the
solutionforthegame.
Solution:
ThepayoffmatrixofplayerAis
PlayerB
B
1
(onefinger)B
2
(twofingers)
A
1
(onefinger)
PlayerA
A
2
(twofingers)
1. Theminimumpayoffineachrowiscircled.
2. Themaximumpayoffineachcolumnisboxed.
3. Since noneofthepayoffis circled as well asboxed, the gamedoesnot have saddlepoint.
Andso,thesolutionforthegameismixedstrategyforboththeplayers.
10
10
5
5
206
Example3:
TwopersonsAandB,withoutshowingeachother,placeacoineachonthe
table.Ifthecoinshappentobeofthesamedenomination,playerAwilltakebothofthem.Ifthey
happentobeofdifferentdenominations,playerBwilltakebothofthem.SupposeplayerAhasa
few onerupee coins and tworupee coins. And suppose player B has a few onerupee, two
rupeeandfiverupeecoins.
i) WritedownthepayoffmatrixofA.Doesthegamehavesaddlepoint?Ifso,writedownthe
solution.
ii) What happens to the game if both the players play only with onerupee and tworupee
coins?
Solution:
i) ThepayoffmatrixofAis
PlayerB
B
1
(oneRs.)B
2
(twoRs)B
3
(fiveRs.)
A
1
(onerupee)
PlayerA
A
2
(tworupees)
1. Theminimumpayoffineachrowiscircled.(Here,theminimumsrepeat.)
3. Thepayoff1iscircledaswellasboxed.Therefore,thegamehasasaddlepoint.Itis
theposition(1,3).
Thesolutiontothegameis
a) StrategyforAis
1
A.
b) StrategyforBis
3
B .
c) Valueofthegameisv=1rupees.
ii) Ifboththeplayersplayonlywithonerupeeandtworupeecoins,thepayoffmatrixofAis
2
2
1
2
1 1
207
PlayerB
B
1
B
2
A
1
PlayerA A
2
Here,thegamedoesnothavesaddlepoint.Therefore,thesuggestedsolutionismixedstrategy
fortheplayers.
Example4:
A labour union of a firm is negotiating a new 5year settlement regarding payments with the
management. The options the union has are
1
A : Aggressive bargaining,
2
A : Bargaining with
reasoning and
3
A : Conciliatory approach. Thelikely modeof response fromthe management
are
1
B : Aggressivebargaining,
2
B : Bargaining with reasoning,
3
B :Legalisticapproach and
4
B :Conciliatoryapproach.Thegainstotheunionineachcaseareasfollows.
Union Management
B
1
B
2
B
3
B
4
A
1
20 15 12 35
A
2
25 14 8 10
A
3
5 4 11 0
Whatstrategywouldyousuggestforthetwosides?Whatisthevalueofthe
game?
2
1
2
1
208
Solution:
Union Management
B
1
B
2
B
3
B
4
A
1
20 15 12 35
A
2
25 14 8 10
A
3
5 4 11 0
3. The value 12 is circled as well as boxed. And so, the game has a saddle point. It is the
position(1,3).
Therefore,thesolutiontothegameis
a) Strategyfortheunionis
1
A :Aggressivebargaining.
b) Strategyforthemanagementis
3
B :Legalisticapproach.
c) Valueofthegameisv=12.
Example5:
Solvethegame
B
1
B
2
B
3
A
1
6 12 7
A
2
7 9 8
Isthegamefair?
Solution:
B
1
B
2
B
3
A
1
6 12 7
A
2
7 9 8
209
7
3. Thevalue7iscircledaswellasboxed.Andso,thegamehasasaddlepoint.Itistheposition
(2,1).
a) StrategyforAis
2
A .
b) StrategyforBis
1
B .
d) Thegameisnotfairbecausevisnotequaltozero.
Example6:
Atwopersonzerosumgame,hasthefollowingpayoffmatrix.Solvethegame.

- -
-
-
4 7
2 0
0 3
1 8
Isthegamefair?
Solution: B
1
B
2
A
1
8 1
A
2
3 0
A
3
0 2
A
4
4
3. Thevalue0iscircledaswellasboxed.Andso,thegamehasasaddlepoint.Itistheposition
(2,2).
a) Strategyfortheplayeris
2
A (secondcourseofaction).
210
b) Strategyfortheopponentis
2
B (secondcourseofaction).
d) Sincethevalueofthegameis0,thegameisfair.
ArethefollowingstatementsTrueorFalse
1. Saddlepointoccursatrowminimumandcolumnmaximum.
2. Ifthevalueofthegameiszerothenitiscalled0sumgame.
3. Thepayofmatrixrepresentsthegainfortopplayer.
12.5 Dominance
Inarectangulargame,supposeinthepayoffmatrixofplayerA,eachpayoffinonespecificrow
) row r (
th
exceeds the corresponding payoff in another specific row ) row s (
th
. This means,
whateverbethecourseofactionadoptedbyplayerB,forA,thecourseofaction
r
A yieldsgreater
gains than the course of action
s
A . Therefore,
r
A is a better strategy than
s
A irrespective of the
strategyofB.Andso,wesaythat
r
A dominates
s
A .
On the other hand, suppose each payoff in a specific column ) column p (
th
is less than the
corresponding payoff in another specific column ) column q (
th
. This means, for player B,
strategy
p
B has lesser loss than strategy
q
B irrespective of strategy of A. And so, we say that
p
B dominates
q
B .Thus,
a) In the payoff matrix, if each payoff in the row r
th
is greater than (or equal to ) the
correspondingpayoffinthe row s
th
,
r
A dominates
s
A .
b) In the payoff matrix, if each payoff in the column p
th
is less than
(orequalto)thecorrespondingpayoffinthe column q
th
,
p
B dominates
q
B .
Sometimes, a convex combination of two or more courses of action may dominate another
courseofaction.
Whenever a course of action (say
s
A or
q
B ) is dominated by others, that course of action
(
s
A or
q
B )canbedeletedfromthepayoffmatrix.Suchdeletionwillnotaffectthechoiceof
thesolution.
211
Suchdeletionofcoursesofactionreducestheorderofthepayoffmatrix.
Successivereductionoftheorderusingdominancepropertyhelpsusinsolvinggames.
12.5.1 SolvingGamesUsingDominance
(Solvingtwopersonzerosumgamewithsaddlepoint)
ConsideratwopersonzerosumgamewithplayersAand B.Let
m 2 1
A ,...... A , A be thecourses
ofactionforplayerA.Let
n , 2 , 1
B ... B B bethecoursesofactionforplayerB.
Suppose the game has saddle point. Then, using dominance property, it is possible to
successively delete the courses of action of A as well as B such that ultimately the pair
comprisingthesaddlepointaloneremains.Theprocedureinthisregardisasfollows.
a) In the payoff matrix, if each payoff in the row r
th
is greater than (or equal to ) the
correspondingpayoffinthe row s
th
,
r
A dominates
s
A .Andso,
s
A isdeleted.
b) In the payoff matrix, if each payoff in the column p
th
is less than (or equal to) the
correspondingpayoffinthe column q
th
,
p
B dominates
q
B .Andso,
q
B isdeleted.
c) The above steps are repeated in succession until the saddle point is reached. And
hence,thesolutionsiswrittendown.
Note: Sometimes,aconvexcombinationoftwoormorecoursesofactionmaydominateanother
courseofaction.
Example8:
Solvethefollowinggameusingdominanceproperty.
B
1
B
2
B
3
B
4
A
1
20 15 12 35
A
2
25 14 8 10
A
3
5 4 11 0
Solution:
Inthepayoffmatrix,eachpayoffinthefirstrowexceedsthecorrespondingpayoffinthethird
row.Therefore,
1
A dominates
3
A .Andso,
3
A isdeleted.Thereducedmatrixis
212
B
1
B
2
B
3
B
4
A
1
20 15 12 35
A
2
25 14 8 10
Here, each payoff in the third column is less than corresponding payoff in the first column.
Therefore,
3
B dominates
1
B . Similarly,
3
B dominates
2
B . Also,
3
B dominates
4
B . Thus, the
matrixreducesto
B
3
A
1
12
A
2
8
Here,since12>8,
1
Adominates
2
A .Andso,finallythematrixreducesto
B
3
A
1
(12)
Thus,(1,3)isthesaddlepoint.Andso,thesolutiontothegameis
a) StrategyforAis
1
A .
b) StrategyforBis
3
B .
c) Valueofthegameisv=12
Example9:
Solvethefollowingzerosumgameandfinditsvalue.
CompanyY
P Q R S
A 6 2 4 1
B6 1 12 3
CompanyX C 3 2 2 6
D 2 3 7 7
Solution:
In the payoff matrix, each payoff in the second column is less than (or equal to) the
correspondingpayoffinthethirdcolumn.Andso,thecourseofactionQdominatesR.
213
Similarly,QdominatesS.
AfterdeletingRandS,thereducedmatrixis
P Q
A 6 2
B 6 1
C 3 2
D 2 3
Here,payoffinthesecondrowisgreaterthan(orequalto)thecorrespondingpayoffsinthefirst,
thirdaswellasfourthrows.Therefore,BdominatesA,CandD.
AfterdeletingA,CandD,thereducedmatrixis
P Q
B[6 1]
Here,1<6.Therefore,QdominatesP.
AfterdeletingP,thereducedmatrixis
Q
B [1]
Thus,thesolutiontothegameis
a) StrategyforCompanyXisB.
b) StrategyforCompanyYisQ.
Example10.
Inatwopersonzerosumgame,thepayoffmatrixofAis
PlayerB
B
1
B
2
B
3
A
1
4 7 0
PlayerA
A
2
1 3 6
WritedownthepayoffmatrixofplayerB.
214
Solution:
ThepayoffmatrixofBis
PlayerA
A
1
A
2
B
1
4 1
PlayerB
B
2
7 3
B
3
0 6
Fillintheblanks
a. The row whose elements are less than the corresponding elements of another row is
__________.
b. If the average of any 2 columns is less than or equal to the corresponding elements of
anothercolumnis_________.
12.6. Summary
In this unit of game theory we studied the concept of competitive situations where the
characteristicsof competitive gameandits strategywe considered. The maximum minimum
principleisdiscussedbrieflysaddlepointandDominanceisexplainedwithclearcutexamples.
TerminalQuestions
1.Solvethefollowingrectangulargame.

- - -
- -
- -
2 3 4 5 0
2 4 0 3 1
2 2 1 2 3
8 5 0 2 2
215
2.Inarectangulargame,payoffmatrixofplayerAis
PlayerB
B
1
B
2
A
1
5 7
PlayerA A
2
4 0
i) Solvethegame.
ii) WritedownthepayoffmatrixofBandthen,solvethegame.
3. Brieflydescribecharacteristicsofcompetitivegame.
4. ExplainMAXIMINMINIMAXprinciple
1.Two,more,withconflicting,interest
2.Finite
1.Playersdonotcommunicatetoeachother
2.Whenthevalueofthegameis0.
3.Twopersonzerosumgame.
4.WhenaplayeralwaysplayonlyonestrategyirrespectiveofOpponentsmove
1.True 2.True c)False
1.Deleted 2.Deleted
1.Valueofthegameis1.AsStrategy(0,1,0,0) BsStrategy(0,0,1,0,0)
2.Valueis5.AsStrategy(1,0) BsStrategy(1,0)
3.ReferSection12.3
4.ReferSection12.4
.

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ReferenceBooks:

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