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OPERATIONS
RESEARCH(MB0032)
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MBA,SMU,Sem-2,Assignment-02

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5/20/2010

Robin Smith
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 1. What are the important features of Operations Research? Describe in details the different
phases of Operations Research.
Answer: Important features of Operations research is as follows:-

1. It is system oriented: OR studies the problem from over all point of view of organizations or
situations since optimum result of one part of the system may not be optimum for some
other part.
2. It imbibes Inter-disciplinary team approach. Since no single individual can have a thorough
knowledge of all fast developing scientific know-how, personalities from different scientific
and managerial cadre from a team to solve the problem.
3. It makes use of scientific methods to solve problem.
4. OR increases the effectiveness of a management Decision making ability.
5. It makes use of computers to solve large and complex problems.
6. It gives Quantitative solution.
7. It considers the human factors also.

The scientific method in OR study generally involves the following three phases:

i) Judgment Phase: This phase consists of

a) Determination of the operation.
b) Establishment of the objectives and values related to the operation.
c) Determination of the suitable measures of effectiveness and
d) Formulation of the problems relative to the objectives.

ii) Research phase: This phase utilizes

a) Operations and data collection for a better understanding of the problems.

b) Formulation of hypothesis and model.
c) Observation and experimentation to test the hypothesis on the basis of
additional data.
d) Analysis of the available information and verification of hypothesis using
pre-established measure of effectiveness.
e) Prediction of various results and consideration of alternative methods.
iii) Action Phase: It consist of making recommendations for the decision process by
those who first posed the problem for consideration or by anyone in a position to
make a decision, influencing the operation in which the problem is occurred.
 1. Describe a Linear Programming Problem in details in canonical form.
Ans:
Linear Programming
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
mean either to maximize or minimize the objective functions. The general linear programming
model is usually defined as follows:

Maximize or Minimize

Z = c1 x1 + c2 x 2 +………….. +cn x n

subject to the constraints,

a11 x1 + a12 x2 + …………….+ a1n xn ~ b1
a21 x1 + a22 x2 +……………..+ a2n xn ~ b2
……………………………………………
……………………………………………
am1x1 + am2 x2 +……………. +amn xn ~ bm
and x1 > 0, x2 > 0, xn > 0.

Where cj, bi and aij (i = 1, 2, 3, ….. m, j = 1, 2, 3…….. n) are constants determined from the
technology of the problem and xj (j = 1, 2, 3 n) are the decision variables. Here ~ is either < (less
than), > (greater than) or = (equal). Note that, in terms of the above formulation the coefficient cj,
aij, bj are interpreted physically as follows. If bi is the available amount of resources i, where aij
is the amount of resource i, that must be allocated to each unit of activity j, the “worth” per unit of
activity is equal to cj.

Canonical forms:

The general Linear Programming Problem (LPP) defined above can always be put in the
following form which is called as the canonical form:
Maximise Z = c1 x1+c2 x2 + …….+cn xn
Subject to
a11 x1 + a12 x2 +…………….. +a1n xn < b1
a21 x1 + a22 x2 +…………….. +a2n xn < b2
……………………………………………
……………………………………………
am1x1+am2 x2 + …… + amn xn < bm
x1, x2, x3, … xn > 0.
The characteristics of this form are:

1) all decision variables are nonnegative.

2) all constraints are of < type.
3) the objective function is of the maximization type.
Any LPP can be put in the canonical form by the use of five elementary transformations:

1. The minimization of a function is mathematically equivalent to the maximization of the

negative expression of this function. That is, Minimize Z = c1 x1 + c2x2 + ……. + cn xn is
equivalent to
Maximize – Z = – c1x1 – c2x2 – … – cnxn.
2. Any inequality in one direction (< or >) may be changed to an inequality in the opposite
direction (> or <) by multiplying both sides of the inequality by –1.
For example 2x1+3x2 > 5 is equivalent to –2x1–3x2 < –5.
3. An equation can be replaced by two inequalities in opposite direction. For example, 2x1+3x2
= 5 can be written as 2x1+3x2 < 5 and 2x1+3x2 > 5 or 2x1+3x2 < 5 and – 2x1 – 3x2 < – 5.
4. An inequality constraint with its left hand side in the absolute form can be changed into two
regular inequalities. For example: | 2x1+3x2 | < 5 is equivalent to 2x1+3x2 < 5 and 2x1+3x2 > –
5 or – 2x1 – 3x2 < 5.
5. The variable which is unconstrained in sign (i.e., > 0, < 0 or zero) is equivalent to the
difference between 2 nonnegative variables. For example, if x is unconstrained in sign then x
= (x + – x – ) where x + > 0, x – <
 2. What are the different steps needed to solve a system of equations by the simplex method?

Ans- The different steps needed to solve a system of equations by the simplex method is as follow:
i) Locate the most negative number in the last (bottom) row of the simplex table, excluding
that of last column and call the column in which this number appears as the work column.
ii) From ratios by dividing each positive number in the work column, excluding that of 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 ratios as the pivot element. If more than one element
yields the same smallest ratio choose arbitrarily one of them. If no element in the work
column is non negative the program has no solution.
iii) Use elementary row operations to convert the pivot element to unity (i) and then reduce all
other elements in the work column to zero.
iv) Replace the x-variable in the pivot row and first column by x-variable 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.
v) Repeat steps 1 through 4 until there are no negative numbers in the last row excluding the
last column.
vi) The optimal solutions is obtained by assigning to each variable in the first column that value
in the corresponding row and last column. All other variables are considered as non-basic
and 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
number for a minimization problem.
4. What do you understand by the transportation problem? What is the basic assumption behind
the transportation problem? Describe the MODI method of solving transportation problem.
Ans- Transportation problem is an important model of linear programming. This model studies the
minimization of the cost of transporting a commodity from a number of sources to several destinations.
The supply at each source and the demand at each destination are known. The transportation problem
involves m sources, each of which has available ai (i =1,2….m) units of homogeneous product and n
destinations, each of which requires bj (j=1,2,…..n) units of products. Here ai and bj are positive
integers. The cost cij of transporting one unit of the product from the ith source to jth destination is given
for each I and j.

The objective is to develop integral transportation schedule that meets all demands from the inventory
at a minimum total transportation cost.

Assumption:

It is assumed that the total supply and the total demand are equal.

i.e.,i=1nai = j=1nbj ------------- (1)

The condition (1) is guaranteed by creating either a fictitious destination with a demand equal to the
surplus if total demand is less than the total supply or a (dummy) source with a supply equal to the
shortage if the total demand exceeds total supply. The cost of transportation from the fictitious
destination to all sources and from the destinations to the fictitious sources are assumed to be zero so
that the total cost of transportation will remain the same.

Formulation of Transportation Problem:

The standard mathematical model for the transportation problem is as follows:

Let xij be the number f units of the homogenous product to be transported from source I to destination j.

The objective is to

Minimize

i=1mj=1nCij Xij

Subject to

j=1nXij=ai, i = 1,2,3…..m (2)

j=1mXij=bj, j = 1,2,3….n

With all xij > 0 and integrals

MODI method of solving transportation problem

The first approximation to (2) is always integral and therefore always a feasible solution. 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 algorithm is the
simplex method specialized to the format of table it involves:

• Finding the integral basic feasible solution

• Testing the solution for optimality.
• Improving the solution, when it is not optimal.
• Repeating steps above until the optimal solution is obtained.
The solution to transportation problem is obtained in two stages. In the first stage we find the basic
feasible solution by any one of the following methods.

a. North-west corner method

b. Matrix minima method
c. Vogel’s approximation method.
In the second stage we test the B.Fs for its optimality either by MODI method or by stepping stone
method.

D1 D2 Dn Supply ui
S1 C11 C12 C1n a1 u1

X11 X12 X2n

S2 C21 C22 C3n a1 u2

X21 X22 X3n

S3 C31 C32 C4n a1 u3

X31 X32 X4n

Sm Cm1 Cm2 Cmn am um

Xm1 Xm2 Xmn

Demand b1 b2 bn ai = bi

Vj v1 v2 vm
5. Describe the North-West Corner rule for finding the initial basic feasible solution in the
transportation problem.
Ans-

Let us consider a T.P. involving m-origins and n-destinations. Since the sum of origin capacities equals
to the sum of requirements, a feasible solution always exists. Any feasible solution satisfying m+n-1 of
the m+n constraints is a redundant one an hence can be deleted. This also means that a feasible solution
to a transportation problem can have at the most only m+n-1 strictly positive compliments, otherwise
the solution will degenerate.

It is always possible to assign an initial feasible solution to a transportation problem in such a manner
that the rim requirements are satisfied. This can be achieved either by inspection or by following some
simple rules.

North-West corner rule is one of the simplest procedures for initial allocation of feasible solution.

North-West Corner Rule:

Step 1:

The first assignment is made in the cell occupying the upper left hand (north west) corner of the
transportation table. The maximum feasible amount is allocated there, that is x11 = min (a1,b1)

So that, either the capacity of origin O1 is used up; or the requirement at the destination D1 is satisfied or
both. This value of x11 is entered in the upper left hand corner (small square) of cell (1,1) in the
transportation table.

Step 2:

If b1>a1 the capacity of origin O, is exhausted but the requirement at destination D1 is still not satisfied,
so that one more other variable in the first column will have to take on a positive value. Move down
vertically to the second row and make the second allocation of magnitude

x21 = min (a2, b1-x21) in the cell (2,). This either exhausts the capacity of origin O 2 or satisfies the
remaining demand at destination D1.

If a1>b1 the requirement at destination D1 is satisfied but the capacity of origin O1 is no completely
exhausted. Move to the right horizontally to the second column and make the second allocation of
magnitude x12=min (a1-x11,b2) in the cell(1,2). This either exhausts the remaining capacity of origin O 1,
or satisfies the demand at destination D2.
If b1 =a1, the origin capacity of O1 is completely exhausted as well as the requirement at destination is
completely satisfied. There is a tie for second allocation. An arbitrary the breaking choice is made.
Make the second allocation of magnitude x12 =min (a1-a2,b2) =0 in the cell (1,2) or x21 = min(a2, b1-b2)
=0 in the cell (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 right corner of the
transportation table until al the rim requirements are satisfied.
6. Describe the Branch and Bound Technique to solve an I.P.P. problem.
Ans-

Sometimes a few or all variables of an IPP are constrained by their upper or lower bounds or by both.
The most general technique for the solution of such constrained optimisation problems is the branch
and bound technique. The technique is applicable to both all IPP as well as mixed IPP. The technique
for a maximisation problem is discussed below:

Let the IPP be

Maximise Z= j=1nCj Xj ---------------------- (1)

Subject to constraints

j=1naijxj < bi,i=1,2,.....m ---------------------(2)

Xj is integer valued j = 1,2,3....r (<n) --------(3)

Xj >0 j=r+1,......n--------------------------(4)

Further let us suppose that for each integer valued xj, we can assign lower and upper bounds for the
optimum values of the variable by

Lj<xj<Uj j = 1,2,....r ------------------------(5)

The following idea is behind “the branch and the bound technique”

Consider any variable xj, and let l be the some integer value satisfying Lj<l<Uj -1. Then clearly an
optimum solution to (1) through (5) shall also satisfy either the linear constraint.

Xj>l+1 -------------------------(6)

Or the linear constrain xj<l------(7)

To explain how this partition helps, let us assume that there were no integer restrictions (3), and
suppose that this then yields an optimal solution to LPP (1), (2), (4) and (5). Indicating, x1 =1.66 (for
example). Then we formulate and solve two LPP’s each containing (1), (2) and (4). But (5) for j =1 is
modified to be 2<x1<U1 in one problem and L1<x1<1 in the other. Further each of these problems
process an optimal solution satisfying integer constants (3).

Then the solution having the larger value for z is clearly the optimum solution for the given IPP.
However, it usually happens that one of these problems has no optima solution satisfying (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 optimum solution.

We start with an initial lower bound for z, say z(0), we also have a list of LPP’s differing only in the
bounds (5). Th start with the master list contains a single LPP, consisting of (1), (2), (4) and (5). We
now discuss below ,the step by step procedure that specifies how the partitioning (6) and (7) can be
applied systematically to eventually get an optimum integer – valued solution.

Branch & Bound Algorithm:

At the tth iteration (t=0,1, 2...)

Step 1:

If the master list is not empty, choose an LPP out of it. Otherwise stop the process, Go the step 1.

Step 2:

Obtain the optimum solution to the objective function z is less than or equal to z(t) , then let z(t+1) = z(t)
and return to step 0 otherwise go to step 3.

Step 3:

Select any variable xj, j = 1,2,...p. that does not have an integer value in the obtained optimum solution
to the LPP chosen in step 0. Let xj* denote his optimal value of xj. Add two LPP’s to the master list;
these LPP’s are identical with the LPP chosen in step 0, except that in one, the lower bound on xj is
replaced by [xj*] +1. Let z(t+1) = z(t) , return to step 0.

At the termination of algorithm, if feasible integer valued solution yielding z(t) has been recorded it is
optimum, otherwise no integer valued feasible solution exists.