MB0048 –Operations Research

Assignment Set- 2

Q1. Explain how to transform an unbalanced

transportation problem into a balanced transportation
problem where the demand of warehouses is satisfied by
the supply of factories.

If the total supply is more than the total demand, we introduce an

additional column, which will indicate the surplus supply with
transportation cost zero. Similarly, if the total demand is more than
the total supply, an additional row is introduced in the table, which
represents unsatisfied demand with transportation cost zero. The
balancing of an unbalanced transportation problem is illustrated in
the following example.

Example

Warehouse
Plant Supply
W1 W2 W3
A 28 17 26 500
B 19 12 16 300
Deman 25 25 50
d 0 0 0

Solution:

The total demand is 1000, whereas the total supply is 800.

Si < Dj
Total supply < total demand.
To solve the problem, we introduce an additional row with
transportation cost zero indicating the unsatisfied demand.

Warehouse
Plant Supply
W1 W2 W3
 A 28 17 26 500
B 19 12 16 300
Unsatisfie
0 0 0 200
d demand
25 25 50
Demand 1000
0 0 0

Using matrix minimum method, we get the following allocations.

Warehouse
Plant Supply
W1 W2 W3
A 17 500

B 19 300
Unsatisfie
0 0 200
d demand
Demand 250 250 500 1000

Initial basic feasible solution

50 X 28 + 450 X 26 + 250 X 12 + 50 X 16 + 200 X 0 = 16900.

2. Explain how the profit maximization transportation

problem into a balanced transportation problem where the
demand of warehouses is satisfied by the supply of
factories

A firm has three factories located in city A, B & C and

supplies goods to four dealers, dealer 1, 2, 3 & 4, spread all
over the country. The production capacities of these factories
are 1000, 700 & 900 units per month respectively. The
monthly orders from the dealers are 900, 800, 500 & 400
units respectively. Per unit return (excluding transportation
costs) are Rs. 8, 7 & 9 at the three factories. Unit
transportation costs from the dealers are given below:
Factory Dealers
1 2 3 4
 City - A 2 2 2 4
City - B 3 5 3 2
City - C 4 3 2 1
Optimal distribution system to maximize the total r eturn to
be determined.

From the given data, we compute a matrix of net returns as

done in table below;
(Transportation matrix (Net return) for the
Maximization problem)
Factor Dealers Factor
y 1 2 3 4 y
capaci
ty
City - 6 6 6 4 1000
A
City - 4 2 4 5 700
B
City - 5 6 7 8 900
C

To convert the given maximization problem to an equivalent

minimization problem, we identify the cell (element) which has the
highest contribution per unit (in this problem C-4 has highest per
unit contribution, Rs.8), and subtract all elements from this highest
element. The resultant matrix is a transportation problem with
minimizing objective function. This has been given in the following
table.
(Transportation matrix for the Minimization problem)
Factory Dealers Factory
1 2 3 4 capacity

City - A 2 2 2 4 1000
City - B 4 6 4 3 700
City - C 3 2 1 0 900
Dealer 90 80 50 40 2600
requirem 0 0 0 0
ent

The minimization problem is solved as a usual transportation

problem. The resulting optimal solution is also the optimal solution
to the original (maximization) problem. The value of the objective
function is computed by referring the matrix of the maximization
problem. It should be noted that the converted minimization
problem will have at least one element with zero value.

3. Illustrate graphically the following special cases of

Linear programming problems:

i) Multiple optimal solutions, ii) No feasible solution, iii)

Unbounded problem

1. Multiple Optimal Solutions

The linear programming problems discussed in the previous

section possessed unique solutions. This was because the optimal
value occurred at one of the extreme points (corner points). But
situations may arise, when the optimal solution obtained is not
unique. This case may arise when the line representing the
objective function is parallel to one of the lines bounding the
feasible region. The presence of multiple solutions is

Maximize z = x1 + 2x2

subject to

x1  80
x2  60
5x1 + 6x2  600
x1 + 2x2  160

x1, x2  0.
In the above figure, there is no unique outer most corner cut by
the objective function line. All points from P to Q lying on line PQ
represent optimal solutions and all these will give the same
optimal value (maximum profit) of Rs. 160. This is indicated by the
fact that both the points P with co-ordinates (40, 60) and Q with
co-ordinates (60, 50) are on the line x1 + 2x2 = 160. Thus, every
point on the line PQ maximizes the value of the objective function
and the problem has multiple solutions.

2. Infeasible Problem

In some cases, there is no feasible solution area, i.e., there are no

points that satisfy all constraints of the problem. An infeasible LP
problem with two decision variables can be identified through its
graph. For example, let us consider the following linear
programming problem.

Minimize z = 200x1 + 300x2

subject to
2x1 + 3x2  1200
x1 + x2  400
2x1 + 1.5x2  900

x1, x2  0

The region located on the right of PQR includes all solutions, which
satisfy the first and the third constraints. The region located on the
left of ST includes all solutions, which satisfy the second constraint.
Thus, the problem is infeasible because there is no set of points
that satisfy all the three constraints.

3. Unbounded Solutions

It is a solution whose objective function is infinite. If the feasible

region is unbounded then one or more decision variables will
increase indefinitely without violating feasibility, and the value of
the objective function can be made arbitrarily large. Consider the
following model:

Minimize z = 40x1 + 60x2

subject to

2x1 + x2  70
x1 + x2  40
x1 + 3x2  90
x1, x2  0

The point (x1, x2) must be somewhere in the solution space as

shown in the figure by shaded portion.

The three extreme points (corner points) in the finite plane are:
P = (90, 0); Q = (24, 22) and R = (0, 70)
The values of the objective function at these extreme points are:
Z(P) = 3600, Z(Q) = 2280 and Z(R) = 4200

In this case, no maximum of the objective function exists because

the region has no boundary for increasing values of x1 and x2.
Thus, it is not possible to maximize the objective function in this
case and the solution is unbounded.

The assignment problem can be stated as a problem where

different jobs are to be assigned to different machines on the basis
of the cost of doing these jobs. The objective is to minimize the
total cost of doing all the jobs on different machines

4. How would you deal with the Assignment problems,

where a) the objective function is to be maximized? b)
Some Assignments are prohibited?

The peculiarity of the assignment problem is only one job can be

assigned to one machine i.e., it should be a one-to-one assignment
The cost data is given as a matrix where rows correspond to jobs
and columns to machines and there are as many rows as the
number of columns i.e. the number of jobs and number of
Machines should be equal

This can be compared to demand equals supply condition in a

balanced transportation problem. In the optimal solution there
should be only one assignment in each row and columns of the
given assignment table. one can observe various situations where
assignment problem can existing., assignment of workers to jobs
like assigning clerks to different counters in a bank or salesman to
different areas for sales, different contracts to bidders.

Assignment becomes a problem because each job requires

different skills and the capacity or efficiency of each person with
respect to these jobs can be different. This gives rise to cost
differences. If each person is able to do all jobs equally efficiently
then all costs will be the same and each job can be assigned to any
person.

When assignment is a problem it becomes a typical optimization

problem it can therefore be compared to a transportation problem.
The cost elements are given and is a square matrix and
requirement at each destination is one and availability at each
origin is also one.

In addition we have number of origins which equals the number of

destinations hence the total demand equals total supply . There is
only one assignment in each row and each column .However If we
compare this to a transportation problem we find that a general
transportation problem does not have the above mentioned
limitations. These limitations are peculiar to assignment problem
only.

The assignment problem is a special type of transportation

problem, where the objective is to minimize the cost or time of
completing a number of jobs by a number of persons. In other
words, when the problem involves the allocation of n different
facilities to n different tasks, it is often termed as an assignment
problem. The model's primary usefulness is for planning. The
assignment problem also encompasses an important sub-class of
so-called shortest- (or longest-) route models. The assignment
model is useful in solving problems such as, assignment of
machines to jobs, assignment of salesmen to sales territories,
travelling salesman problem, etc.

It may be noted that with n facilities and n jobs, there are n!

possible assignments. One way of finding an optimal assignment is
to write all the n! possible arrangements, evaluate their total cost,
and select the assignment with minimum cost. But, due to heavy
computational burden this method is not suitable.

The objective of this section is to examine a computational method

- an algorithm - for deriving solutions to the assignment problems.
The following steps summarize the approach:

Steps

1. Identify the minimum element in each row and

subtract it from every element of that row.
2. Identify the minimum element in each column and
subtract it from every element of that column.
3. Make the assignments for the reduced matrix obtained
from steps 1 and 2 in the following way:
i. For each row or column with a single zero value
cell that has not be assigned or eliminated, box that
zero value as an assigned cell.
ii. For every zero that becomes assigned, cross out
(X) all other zeros in the same row and the same
column.
iii. If for a row and a column, there are two or more
zeros and one cannot be chosen by inspection, then
you are at liberty to choose the cell arbitrarily for
assignment.
iv. The above process may be continued until every
zero cell is either assigned or crossed (X).
4. An optimal assignment is found, if the number of
assigned cells equals the number of rows (and columns). In
 case you have chosen a zero cell arbitrarily, there may be
alternate optimal solutions. If no optimal solution is found, go
to step 5.
5. Draw the minimum number of vertical and horizontal
lines necessary to cover all the zeros in the reduced matrix
obtained from step 3 by adopting the following procedure:
i. Mark all the rows that do not have assignments.
ii. Mark all the columns (not already marked) which
have zeros in the marked rows.
iii. Mark all the rows (not already marked) that have
assignments in marked columns.
iv. Repeat steps 5 (i) to (iii) until no more rows or
columns can be marked.
v. Draw straight lines through all unmarked rows
and marked columns.
6. Select the smallest element from all the uncovered
elements. Subtract this smallest element from all the
uncovered elements and add it to the elements, which lie at
the intersection of two lines. Thus, we obtain another
reduced matrix for fresh assignment.
7. Go to step 3 and repeat the procedure until you arrive
at an optimal assignment.

There are different methods of solving an assignment problem:

1)Complete Enumeration Method: This method can be used in case

of assignment.
problems of small size. In such cases a complete enumeration and
evaluation of all
combinations of persons and jobs is possible.

One can select the optimal combination. We may also come across
more than one optimal combination The number of combinations
increases manifold as the size of the problem increases as the total
number of possible combinations depends on the number of say,
jobs and machines. Hence the use of enumeration method is not
feasible in real world cases.
2) Simplex Method: The assignment problem can be formulated as
a linear programming
problem and hence can be solved by using simplex
method.However solving the problem using simplex method can
be a tedious job.

3)Transportation Method: The assignment problem is comparable

to a transportation problem hence transportation method of
solution can be used to find optimum allocation. However the
major problem is that allocation degenerate as the allocation is on
basis one to one per person per person per job Hence we need a
methodspecially designed to solve assignment problems.

4 )Hungarian Assignment Method (HAM):

This method is based on the concept of opportunity cost and is
more efficient in solving assignment problems.
Method in case of a minimization problem.

As we are using the concept “opportunity this means that

the cost of any opportunity that is lost while taking a particular
decision or action is taken into account while making assignment.
Given below are the steps involved to solve an assignment
problem by using Hungarian method

Maximization method

In order to solve a maximization type problem we find the regret

values instead of opportunity cost. the problem can be solved in
two ways

The first method is by putting a negative sign before the values in

the assignment matrix and then solves the sum as a minimization
case using Hungarian methods as shown above.

Second method is to locate the largest value in the given matrix

and subtract each element in the matrix from this value. Then one
can solve this problem as a minimization case using the new
modified matrix.
Hence there are mainly four methods to solve assignment problem
but the most efficient
and most widely used method is the Hungarian method

Prohibited Assignment

Sometimes it may happen that a particular resource (say a man or

machine) cannot be assigned to perform a particular activity. In
such cases, the cost of performing that particular activity by a
particular resource is considered to be very high (written as M or
∞) so as to prohibit the entry of this pair of resource-activity into
the final solution.

A usual assignment problem presumes that all jobs can be

performed by all individuals there can be a free or unrestricted
assignment of jobs and individuals. A prohibited assignment
problem occurs when a machine may not be in, a position to
perform a particular job as there be some technical difficulties in
using a certain machine for a certain job. In such cases the
assignment is constrained by given facts.

To solve this type problem of restriction on job assignment we will

have to assign a very high cost M This ensures that restricted or
impractical combination does not enter the optimal assignment
plan which aims at minimization of total cost.

5. Simulation is an especially valuable tool in a situation

where the mathematics needed to describe a system
realistically is too complex to yield analytical solutions”.
Elucidate.

Shortcomings of taking a simulation approach to solve an O.R.

problem The range of application of simulation in business is
extremely wide. Unlike other mathematical models, simulation can
be easily understood by the users and thereby facilitates their
active involvement. This makes the results more reliable and also
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 OR team who identifies the relevant variables
as well as their behavior.

In case of other OR models, simulation helps the manager to strike

a balance between opposing costs of providing facilities (usually
meaning long term commitment of funds) and the opportunity and
costs of not providing them.

The simulation approach is recognized as a powerful tool for

management decision-making. Shortcoming of taking a simulation
approach to solve O. R. problems are as follows;

1. It does not produce optimal results. Solutions are

approximate, and it is some less than formal but
‘satisfactory’ approach to problem-solving only.
2. To be able to simulate systems, a fairly good knowledge of
the parts or components of the system and their
characteristics is required. The desire is to understand,
explain and predict the dynamic behavior of the system or
the sum total of these parts. Adequate knowledge of the
system behavior.
3. Each simulation run like a single experiment conducted
under a given set of conditions as defined by a set of values
for the input solution. A number of simulation runs will be
necessary and thus can be time consuming. As the number
of variables increases in terms of input, the difficulty in
finding the optimum values increases considerably.
4. Since simulation involves repetitions of the experiment, it is
a time consuming task when manually done.
5. As a number of parameters, increase, the difficulty in finding
the optimum values increases to a considerable extent.
6. Because of the simplicity in adoption of simulation process,
one may develop to rely on this technique too often,
although mathematical model is more suitable to the
situation.
7. One should not ignore the cost associated with a simulation
study for data collection, formation of the model. A good
 simulation model may be very expensive. Often it takes
years to develop a usable corporate planning model.
8. The computer time as it is fairly significant.
9. A simulation application is based on the premise that the
behavior pattern of relevant variables is known, and this very
premise sometimes becomes questionable.
10. Not always can the probabilities be estimated with ease or
desired reliability. The results of simulation should always be
compared with solutions obtained by other methods
wherever possible, and “tempered” with managerial
judgment.

6. Describe Gomorys method of solving an all-integer

programming problem.

An integer programming problem can be described as follows:

Determine the value of unknowns X1, X2, …, Xn
So as to optimize z = C1X1 + C2X2 + … CnXn

Subject to the constraints

ai1 X1 + ai2 X2 + … + ain Xn = bi, i = 1,2, …, m
and xj ≥ 0 j = 1, 2, …, n
where xj being an integral value for j = 1, 2, …, k ≤ n.

If all the variables are constrained to take only integral value

i.e. k = n, it is called an all (or pure) integer programming
problem. In case only some of the variables are restricted to
take integral value of rest (n – k) variables are free to take any
one negative values, then the problem is known as mixed
integer programming problem.

Gomory’s All – IPP Method:

An optimum solution to an I. P. P. is first obtained by using

simplex method ignoring the restriction 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 inserting a new
constraint called Gomory’s or secondary constraint which
represents necessary 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 the values of the variables in this solution are
integers, an optimum inter-solution is obtained, otherwise
another new constrained is added to the modified L P P and the
procedure is repeated.

An optimum integer solution will be reached eventually after

introducing enough new constraints to eliminate all the superior
non integer solutions. The construction of additional constraints,
called secondary or Gomory’s constraints is so very important
that it needs special attention.