Discuss the methodology of Operations Research.

Explain in brief the phases of

Operations Research.

Meaning of Operations Research
o The application of scientific methods, techniques and tools to the
operation of a system with optimum solutions to the problems.
o You can also define operations research as The use of scientific methods
to provide criteria for decisions regarding man, machine, and systems
involving repetitive operations.
Methodology of Operations Research
o The basic dominant characteristic feature of operations research is that it
employs mathematical representations or models to analyze problems.
This distinct approach represents an adaptation of the scientific
methodology used by the physical sciences. The scientific method
translates a given problem into a mathematical representation which is
solved and retransformed into the original context.
Phases of Operations Research
Below is the OR approach to problem solving described in 5 steps
Problem Definition
The first and the most important step in the OR approach of
problem solving is to define the problem.
Description of Goal and Objective of study
Identification of the decision alternative to the system
Recognition of limitation and restriction
Construction
Based on the problem definition, you need to identify and select
the most appropriate model to represent the system. While
selecting a model, you need to ensure that the model specifies
quantitative expressions for the objective and the constraints of
the problem in terms of its decision variables.
Solution
After deciding on an appropriate model, you need to develop a
solution for the model and interpret the solution in the context of
the given problem
Validation
A model is a good representation of a system. However, the
optimal solution must work towards improving the systems
performance. You can test the validity of a model by comparing
its performance with some past data available from the actual
system.
Implementation
You need to apply the optimal solution obtained from the model
to the system and note the improvement in the performance of the
system.







a. Explain the graphical method of solving Linear Programming Problem.
b. A paper mill produces two grades of paper viz., X and Y. Because of raw material restrictions, it cannot produce more
than 400 tons of grade X paper and 300 tons of grade Y paper in a week. There are 160 production hours in a week. It
requires 0.20 and 0.40 hours to produce a ton of grade X and Y papers. The mill earns a profit of Rs. 200 and Rs. 500 per
ton of grade X and Y paper respectively. Formulate this as a Linear Programming Problem.
Meaning of Linear programming problem and explanation of graphical method of solving Linear Programming Problem
Linear Programming (LP) is a mathematical technique designed to help managers in their planning and decision-
making. It is usually used in an organization that is trying to make the most effective use of its resources.
Resources typically include machinery, manpower, money, time, warehouse space, and raw materials. Linear
Programming (LP) is one way through which the operations managers can determine how best to allocate their
scarce resources.
Graphical Method: The graphical solution procedure is one of the methods of solving two variable linear
programming problems. While obtaining the optimal solution to an LPP by the graphical method, the statement
of the following theorems of linear programming is used:
The collection of all feasible solutions to an LPP constitutes a convex set whose extreme points
correspond to the basic feasible solutions.
There are a finite number of basic feasible regions within the feasible solution space.
If the convex set of the feasible solutions of the system of simultaneous equation is a convex
polyhedron, then at least one of the extreme points gives an optimal solution.
If the optimal solution occurs at more than one extreme point, the value of the objective function will be
the same for all convex combination of these extreme points.
Working rule for Graphical Method: The method of solving an LPP on the basis of the above analysis is known
as the graphical method. The working rule for the method is as follows.
Step 1: Formulate the problem in terms of a series of mathematical equations representing objective
function and constraints of LPP.
Step 2: Plot each of the constraints equation graphically. Replace the inequality constraint equation to
form a linear equation. Plot the equations on the planar graph with each axis representing respective
variables.
Step 3: Identify the convex polygon region relevant to the problem. The area which satisfies all the
constraints simultaneously will be the feasible region. This is determined by the inequality constraints.
Step 4: Determine the vertices of the polygon and find the values of the given objective function Z at
each of these vertices. Identify the greatest and the least of these values. These are respectively the
maximum and minimum value of Z.
Step 5: Identify the values of (x1, x2) which correspond to the desired extreme value of Z. This is an
optimal solution of the problem.






3.a.Explain how to solve the degeneracy in transportation problems.
A basic solution to an m-origin, n destination transportation problem can have at the most m+n-1 positive basic
variables (non-zero), otherwise the basic solution degenerates. It follows that whenever the number of basic
cells is less than m + n 1, the transportation problem is a degenerate one.
The degeneracy can develop in two ways:
Case 1 - The degeneracy develops while determining an initial assignment via any one of the initial assignment
methods discussed earlier.
To resolve degeneracy, you must augment the positive variables by as many zero-valued variables as is
necessary to complete the required m + n 1 basic variable. These zero-valued variables are selected in such a
manner that the resulting m + n 1 variable constitutes a basic solution. The selected zero valued variables are
designated by allocating an extremely small positive value to each one of them. The cells containing these
extremely small allocations are then treated like any other basic cells. The s are kept in the transportation
table until temporary degeneracy is removed or until the optimum solution is attained, whichever occurs first.
At that point, we set each = 0.
Case 2 - The degeneracy develops at the iteration stage. This happens when the selection of the entering
variable results in the simultaneous drive to zero of two or more current (pre-iteration) basic variables.
To resolve degeneracy, the positive variables are augmented by as many zero-valued variables as it is necessary
to complete m+n-1 basic variables. These zero-valued variables are selected from among those current basic
variables, which are simultaneously driven to zero. The rest of the procedure is exactly the same as discussed in
case 1.
Note - The extremely small value is infinitely small and it never affects the value it is added to or subtracted
from. Introduce in unallocated minimum cost cell to avoid forming a loop.
3.b. Explain the procedure of MODI method of finding solution through optimality test.
A feasible solution has to be found always. Rather than determining a first approximation by a direct application
of the simplex method, it is more efficient to work with the transportation table. The transportation algorithm is
the simplex method specialized to the format of table involving the following steps:
1. Finding an initial basic feasible solution
2. Testing the solution for optimality
3. Improving the solution, when it is not optimal
4. Repeating steps (1) and (2) 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 using any of the following methods:
North-west corner rule
Matrix minima method or least cost method
Vogels approximation method.
In the second stage, we test the basic feasible solution for its optimality by MODI method.



4.a. Explain the steps involved in Hungarian method of solving Assignment problems.
Hungarian method algorithm is based on the concept of opportunity cost and is more efficient in solving
assignment problems. The following steps are adopted to solve an AP using the Hungarian method algorithm.
Step 1: Prepare row ruled matrix by selecting the minimum values for each row and subtract it from the other
elements of the row.
Step 2: Prepare column-reduced matrix by subtracting minimum value of the column from the other values of
that column.
Step 3: Assign zero row-wise if there is only one zero in the row and cross (X) or cancel other zeros in that
column.
Step 4: Assign column wise if there is only one zero in that column and cross other zeros in that row.
Step 5: Repeat steps 3 and 4 till all zeros are either assigned or crossed. If the number of assignments is equal to
number of rows present, you have arrived at an optimal solution, if not, proceed to step 6.
Step 6: Mark () the unassigned rows. Look for crossed zero in that row. Mark the column containing the crossed
zero. Look for assigned zero in that column. Mark the row containing assigned zero. Repeat this process till all
the makings are done.
Step 7: Draw a straight line through unmarked rows and marked column. The number of straight line drawn will
be equal to the number of assignments made.
Step 8: Examine the uncovered elements. Select the minimum.
Subtract it from the uncovered elements.
Add it at the point of intersection of lines.
Leave the rest as is.
Prepare a new table.
Step 9: Repeat steps 3 to 7 till optimum assignment is obtained.
Step 10: Repeat steps 5 to 7 till number of allocations = number of rows. The assignment algorithm applies the
concept of opportunity costs. The cost of any kind of action or decision consists of the opportunities that are
sacrificed in taking that action.










6.a. Explain the dominance principle in game theory.
In a rectangular game, the pay-off matrix of player A is pay-off in one specific row ( r
th
row ) exceeding the
corresponding pay-off in another specific row( s
th
row ). This means thatwhatever course of action is adopted by
player B, for A, the course of action A yields greater gains than the course of action A. Therefore, A is a better
strategy than As irrespective of Bs strategy. Hence, you can say that A dominates As .
Alternatively, if each pay-off in a specific column ( p column ) th is less than the corresponding pay-off in another
specific column( q
th
column ), it means strategy Bp offers minor loss than strategy Bq irrespective of As strategy.
Hence, you can say that Bp dominatesBq . Therefore, you can say that:
a) In the pay-off matrix, if each pay-off in r
th
row is greater than (or equal to) the corresponding pay-off in the s
th

row, A dominates As .
b) In the pay-off matrix, if each pay-off in p
th
column is less than (or equal to) the corresponding pay-off in the
q
th
column, Bp dominatesBq .
At times, a convex combination of two or more courses of action may dominate another course of action.
Whenever a course of action (say As or Bq ) is dominated by others, then that course of action ( As or Bq ) can be
deleted from the pay-off matrix. Such a deletion will not affect the choice of the solution, but it reduces the
order of the pay-off matrix. Successive reduction of the order using dominance property helps in solving games.