Optimization 1.0 2.0 Optimization: Optimization is a process of achieving optimum results which are best and most favorable.

An optimum result may represent a maximum or minimum position. Operations research: Operations research is the organized application of modern science, mathematics and computer techniques to find solutions for complex problems arising in the direction and management of large systems of men, materials, money and machines. 2.1 Techniques used in OR: 1. Linear programming Graphical solutions Assignment method Transportation method Simplex method 2. Queuing theory 3. Dynamic programming 4. Game theory Linear programming: It is a technique which allocates scarcely available resources under conditions of certainty in an optimum manner. It can be applied where 1. Objectives can be stated mathematically 2. Resources can be measured as quantities 3. There are too many alternate solutions to be evaluated Graphical method: Two dimensional linear programming can be easily and rapidly solved by this method. Steps: 1. Formulate the mathematical model from the given data. 2. Write the constraints as inequalities. 3. Convert inequalities into equations temporarily. 4. Axes are marked on the graph paper and label with the variables x1 & x2. 5. Plot the straight lines on the graph using the constraint equations. Shade the possible solution area partially. 6. Draw the straight line (Dotted) representing the optimizing equation assuming a suitable value 7. A parallel line to the optimizing line at the farthest point of feasible solution evident from the constraint equations. 8. As the point is on the line parallel to the optimizing, the point satisfies the equation. Hence substitute the values of x1 & x2 of this point and obtain the optimum value.

2.2

2.3

Example 1: 30 lathes and 30 drilling m/cs are awaiting repair in a workshop. Lathe requires 10 hrs. of mechanics effort and 2 hrs. of electricians. Drilling machine needs 4 hrs. and 3hrs. respectively. Repair of lathe is considered to be 2 units of output and drilling machine to be of one unit. Availability of mechanics time is 360 hrs. and electricians time is 120 hrs. In order to maximize output in a given period, determine the No. of laths and drilling machines to be repaired. Solution: Lathes 30 10 2 2 Drilling machines 30 4 3 1 Capacit.y 360 120

Mechanics time in hrs. Electricians time in hrs. Output

Let x1 & x2 be the lathes and drilling machines to be repaired. Constraint inequalities: 10 x1 + 4x2 360 2x1 + 3x2 120 x1 30 x2 30 x1 0 x2 0 Converting inequalities into equalities temporarily 10 x1 + 4x2 = 360 -- 1 2x1 + 3x2 =120 --2 x1 =30 --3 x2 = 30 --4 x1 = 0 --5 x2 = 0 --6

Optimizing equation Z = 2x1 + x2 2.4

Let us assume initially Z=20

Simplex method: Realistic linear programming problems often have several decision variables and several constraint equations. Such problems can not be solved by graphical method. Simplex method is useful in such cases. It is an iterative procedure which progressively approaches and finally reaches an optimum solution. Initial solution: The simplex method begins with a statement of objective function and constraint equations. In maximization problems, the constraint inequalities are converted into equalities by adding slack variables to each constraint. The slack represents an unused amount of the resources and does not contribute to the profit. Steps: 1. Express the problem as objective function. 2. Express the constraints as inequalities. 3. Convert inequality to equality by adding slack variables. 4. Enter the variables, coefficients, and objective function ie. cost coefficients into the simplex table. 5. Calculate the contribution lost (or Opportunity cost) Z and net contribution (C-Z) and enter in the table. The Z values of each column are obtained by multiplying the elements of the column by the contribution in the C column and adding them. 6. Identify the key column in decision variables corresponding to the highest value of net contribution (C-Z) 7. Calculate capacity/replacement ratio by dividing the capacity by the corresponding No. in the key column. 8. Identify the key row corresponding to the lowest value of capacity/replacement ratio. The intersection No. of key column and key row is the key No. 9. The slack variable in the solution variables column is replaced by the corresponding decision variable along with its cost coefficient against the key column. 10. To get the new row, divide the key row values by the key No. 11. Obtain the new values of the other rows also as given below. New row value = Old row value corresponding value in key row X Fixed ratio. Fixed ratio = Corresponding value in key column / key No. 12. Calculate the values of Z and (C-Z) values. 13. Repeat the steps 6 to 12 untill all the values in the (C-Z) row are less than or equal to zero.

14. The Z value under the capacity column gives the optimum value of the objective function. The capacity values are given against the respective variable in the final iteration. Simplex table: Variables Cost C In Coefficient Solution s C S1 S2 S3 S4 0 0 0 0 Z C-Z capacity 360 120 30 30 0 2 x1 10 2 1 0 0 2 1 0 0 decision variables x2 s1 s2 4 3 0 1 0 1 1 0 0 0 0 0 0 1 0 0 0 0 0 s3 0 0 1 0 0 0 s4 0 0 0 1 0 0 0 capacity / replacement ratio 360/10 =36 120/2 = 60 30/1 =30 30/0 = -

Variables Cost C In Coefficient Solution s C S1 S2 X1 S4 0 0 2 0 Z C-Z capacity 60 60 30/1=1 30 60 -

2 x1 0 0 1 0 2 0

1 0 0 decision variables x2 s1 s2 4 3 0 1 0 1 1 0 0 0 0 0 0 1 0 0 0 0

0 s3 -10 -2 1 0 2 -2 s4

capacity / replacement ratio 60/4 =15 60/3 = 20 30/0 = 30/1 =30 -

0 0 0 1 0 0

Variables Cost C In Coefficient Solution s C X2 S2 X1 S4 1 0 2 0 Z C-Z capacity 60/4=15 15 30 15 75 -

2 x1 0 0 1 0 2 -2

1 0 0 decision variables x2 s1 s2 1 0 0 0 1 0 1/4 -3/4 0 -1/4 1/4 -1/4 0 1 0 0 0 0

0 s3 10/4 11/2 1 10/4 -1/2 -3/2 s4

capacity / replacement ratio

0 0 0 1 0 0

X1 = 30 2.5

X2 = 15

Z= 75

Assignment Method: This is a variation of transportation method. It is useful for assigning jobs to machines or work centers on the basis of some criterion such as cost, performance, quantity, time or efficiency. The method requires the No. of items to be assigned equal the No. of positions available. If the numbers are not equal a dummy row or column is added and assigned a zero criterion coefficient. Steps: 1. Enter the items and assignable positions in the rows and columns respectively. 2. Subtract the smallest no. in each row from all others in the row and enter the results in a new matrix. 3. Using the new row, subtract the smallest No. in each column from all others in the column and form a new matrix. 4. Check if there is a zero in each row and column, if so, draw minimum No. of lines necessary to cover all the zeros in the matrix. 5. If the lines required are less than the No. of rows, modify the matrix again by adding the smallest uncovered No. to all values at line intersections and subtracting it from each uncovered No. including itself. Leave the other(lined out) numbers unchanged. 6. Repeat step 5 until the optimal assignment is obtained. Example: A scheduler has 4 jobs that can be done on any of the 4 machines with respective times in minutes as shown. Determine the allocation of jobs to the machines which results in minimum time. Jobs Machines 1 2 3 4 A 5 6 8 7 B 10 12 11 7 C 10 8 13 6 D 8 7 4 3 Row subtraction: Column subtraction: Jobs Machines 1 2 3 4 A 0 1 3 2 B 3 5 4 0 C 4 2 7 0 D 5 4 1 0 Jobs Machines 1 2 3 4 A 0 0 2 2 B 3 4 3 0 C 4 1 6 0 D 5 3 0 0

Covering zeros: Jobs 1 A 0 B 3 C 4 D 5 Solution: A=1; b=4; C=2; D=3.

Machines 2 3 0 2 4 3 1 6 3 0

4 2 0 0 0

Modify matrix: Jobs Machines 1 2 3 A 0 0 2 B 2 3 2 C 3 0 5 D 5 3 0

4 3 0 0 1