Since C_Z is non negative under all columns so optimality test passed since A1appears in he basis at a

positive value, the given problem has no feasible solution

Solution:
1.

Make a transportation model

1.
2.

Find basic feasible solution (VAM method)

Solution : 1. Reduced matrix

3. Check if optimal assignment can be made in the current solution or not

Capital cost C = 6000/-. Let it be profitable to replace the. machine after n

years. Then n should be determined by the minimum value of Tav

We observe from the table that avg. annual cost is minimum (Rs. 2700/-). Hence the m/c should replace
at the end of 5th year.
Q.Give any four definitions of OR.
Ans. Operation Research:
1. OR is an aid for the executive in making decisions by providing him with the quantitative
information, based on the scientific method analysis.
2. OR is the art of giving bad answers to problems, to which, otherwise worse answers are given.
3.OR is the art of wining wars without actually fighting them.
4.OR is the application of scientific methods by interdisciplinary teams to problems involving the
control of organised (man-machine) systems so as to provide solutions which best serve the purpose of
the organisation as a whole.
Q. What is an OR Model ? What are the characteristics of OR Model?
Ans. A model is defined as idealised representation of the real life situation. It represents one or few
aspects of reality.
Characteristics of OR
1. The number of simplifying assumption should be as few as possible.
2. Model should be simple but close to reality.
3. It should be adaptable to parametric type of treatment.
4. It should be easy and economical to construct.
Q.Give the main advantage and limitation of OR model.
Ans. Advantage
1 It provides a logical and systematic approach to the problem.
2. It indicate the scope .as well as limitation of a problem.
3. It makes the overall structure of the problem more comprehensible and helps in dealing with problem
in its entirety.
Limitations
Models are only idealised representation Of reality and should not be regarded as absolute in any case.
The validity of a model for a particular situation can be ascertained only by conducting experiments on
it.
Q.Distinguish between:

(i) Iconic or Physical Model and Analogue or schematic model.

(ii) Deterministic and Probabilistic model.
Ans.
(i) Iconic ModelIt represent the system by enlarging or reducing the size on some scale. In other
words it is an image.
Example-toy aeroplane, photographs, drawings, maps etc.
Schematic ModelThe models, in which one set of properties is used to
represent, another set of properties are called schematic or analogue models.
For example-graphs used to show different quantities.
(ii) Deterministic modelSuch models assume conditions of complete certainty and perfect knowledge.
Example-LPP, transportatiOn, assignment etc.
Probabilistic (or stochastic) ModelThese type of mOdels usually handle such
situation in which the consequences or payoff of managerial actions cannot be predicted with certainty.
However it is possible to forecast a pattern of events, based on which managerial decision can be made.
For example insurance companies are willing to insure against risk of fire, accident, sickness and so on.
Here the pattern of events have been compiled in the form of probability distribution.
Q. What is the objective of operation Research?
Ans. The object,ive of OR is to provide a scientific basis to the managers of an organisation for solving
problems involving interaction of the components of the system, by employing a system approach by a
team of scientists drawn from different disciplines, for finding a solution which is in the best interest of
the organisation as a whole.
Q. List the characteristics of operation research.
Ans. 1. System Orientation
2. Use of interdisciplinary teams
3. Application of Scientific methOds
4. Uncovering of new problems
5. Improvement in the quality of decisions
6. Use of computer
7. Quantitative solutions
8. Human factors
Q. Write a short note on Heuristic Programming?
Ans. Heuristic programming uses rules of thumb or intuitive rule to find the problem solution. Thus
checking all the alternatives so as to obtain the optimum one, is not required. They bridge the gap
between strictly analytical formulation and operating principles which manager are habitual to use. They
involve step by step search towards the optimal solution when a problem cannot be expressed in
mathematical programming form. It does not provide optimum solution but very near to it.
Q. What are the various phases of operation research problems?
Or
Explain the methodology of operation research
Or
Explain the steps involved in the solution of OR Problem.
Ans. Operation research is based on scientific methodology which proceeds as:

1. Formulating the problem.

2 Constructing a model to represent the system under study
3. Deriving a solution from the model.
4. Testing the model and the solution derivq4 from it.
5. Establishing controls over the solution.
6. Putting the solution to work i.e. implementation.
Applications
(i) Assignment of job to machine
(ii) Product mix
(iii) Advertising media selection
(iv) Transportation.
2. Dynamic programming
(i) Capital budgeting
(ii) Employment smoothening
(iii) Cargo loading.
3. Inventory control
(i) Economic order quantity
Q. What is the importance of OR in decision making?
Ans. 1. Better control
2. Better coordination
3. Better system
4. Better decision
Q. Explain briefly the applications of operation research.
Or
Explain the scope of operation research.
Or
What are the areas of applications of OR.
Ans. ApplicationsOperation research at present finds extensive application in industry, business,
government, military and agriculture. Wide variety of. industries namely airlines, automobile,
transportation, petroleum, coal, chemical, mining, paper, communication, computer, electronics etc. have
made extensive use of OR techniques.Applications of Various OR Techniques:
1. Linear programming
(ii) Safety stocks
(iii) Reorder level,
4. Queuing theory
(i) Traffic congestion
(ii) Repair and maintenance of broken down rn/c.
(iii) Hospital operations etc.
5. Network techniques
(i) Planning, scheduling and controlling of construction of dams, bridges, roads, highways etc.
6;Replacement theory
(i) Optimum replacement interval of items.
(ii) Staff replacement and recruitment. Scope and areas of applications:

1. Agriculture
2. Finance
3. Industry
4. Marketing
5. Personal Management
6. Production Management
7. L.I.C. schemes
8. Research and Development
9. Allocation and Distribution
Q What are the limitations of using results from a mathematical model to make decisions about
operations.
Or
What are the limitations of operation research?
Ans.
1. Mathematical models, do not take into account qualitative factors or emotional factors which are quite
real. All influencing factors which cannot
be quantified find no place in mathematical models.
2 Mathematical models are applicable to only specific categories of problems
3. Present day problems involve numerous factors; expressing them in quantity and establishing
relations among them require huge calculation
4. Management, who has to implement the advised proposals, may itself offer a lot of resistance due to
conventional thinking
Q. What are the advantages of using results from the mathematical model to make decision about
operations?
Ans. The mathematical models provides the management a quantitative basis for
decision making. For example it will give answer like, The cast to the company, if decision A is taken is
X, if decision B is taken is Y, etc
Hence it improve the quality of decision making.
It provide a way to represent the reality in the mathematical from.
It highlights the bottlenecks in production system.
Q. Define LPP.
Ans. A problem consists of a linear function of variable called objective function subject to set of linear
equation or inequalities called constraints, are known as linear programming problem.
Q. Why LP models are called deterministic in nature.
Ans. (i) In LP model the various parameters namely the objective function coefficients, R.H.S,
coefficients of the constraints and resource values are certainly known and their value do not change
with time. Thus the profit or cost per unit of product, availability of labour and material, market demand
is known with certainty.
Thats why it is called deterministic in nature.
Q. What are the assumptions of Linear programming Models?
Ans. 1. Proportionality
2. Additivity

3. Continuity
4. Certainty.
Q. Enumerate few application of linear programming.
Ans. Industrial Applications
1. Product Mix problem
2. Blending problem
3. Production Scheduling problem
4. Trim loss problem
5. Sub contract problem.
Management Problems
1. Media selection problem
2. Transportation problem
3. Assignment problem
4. Man power scheduling problem
Agricultural Applications
Military Applications.
Q. What are the advantages and limitations of linear programming methods?
Ans. Advantages
1. It helps in attaining the optimum use of productive factors.
2. It improves the quality of decisions. The individual who makes use of linear programming methods
becomes more objective than subjective.
3. It also helps in providing better tools for adjustment to meet changing conditions.
4. It highlights the bottlenecks in the production processes.
5. Most business problems involve constraints like raw materials availability, market demand etc. which
must be taken into consideration. Just we can produce so many units of product does not mean that they
can be sold. Linear programming can handle such situation also.
Limitations
1. In some problems objective functions and constraints are not linear. LPP under non linear condition
usually results in an incorrect soIution
2. LPP deals with problems that have a single objective. Real life problem may involve multiple
objectives.
3. Parameters appearing in the model are assumed to be constant. But in real life situation they are
neither constant nor deterministic.
4. It is applicable to only static situations since it does not take into account the effect of time.
5. LPP can not be used efficiently for large scale problems, the computational difficulties are enormous,
even when the large digital computer is available.
6. LPP may get fractional valued answers for the decision variables, whereas it may happen that only
integer values of the variable are logical.
Q. Define:
(i) Solution to LPP
(ii) Feasible solution
(iii) Basic solution

(iv) Basic feasible solution

(v) Optimum basic feasible solution
(vi) Unbounded Solution.
Ans. (i) Solution to LPP- A set of variable [x1x2,....x,J is called a solution to LI?
if it satisfy the given constraints
(ii) Feasible solutionA set of variable is called a feasible solution to LPP if it satisfy the given
constraints as well as non negativity restrictions
(iii) Basic solution-A solution obtained by setting any n variables equal to zero
and solvmg for remainmg m variables is called basic solution
(iv) Basic feasible solution-It is a basic solution that also satisfy the non negativity
restrictions.
(v) Optimum basic feasible solutionIt is the basic feasible solution thafalso optimize the objective
function.
(vi) Unbounded solution-If the value of the objective function can be increased
or decreased indefinitely the solution is called unbounded solution
Q What is redundant constraint?
Ans A constraint, which does not affect the solution space, is known as redundant Constraint
Q Distinguish between slack, surplus and Artificial variable
Ans SlackThe positive variable, which is added to the left hand side of the
constraint to convert it into equation, is called the slack variable
Surplus-The positive variable, which is subtracted from the left hand side of the
constraint to convert it into equation, is called the surplus variable.
Artificial VariableLPP in which one or more constraints are of or = type (after ensuring that all
all bs are non negative)in such cases we introduce another type of variable known as artificial variables
in order to get the initial basic feasible solution
Q What is the physical meaning of artificial variable?
Ans These variables are fictitious and have no physical meaning They are merely a device to get the
starting basic feasible solution so that simplex algorithm may be applied. These variables are required
because in such problems the basic matrix is not obtained as identity matrix in the starting simplex table.
determme the basic variable that should leave the basis This happens when there is no minimum non
negative replacement ratio.
Infeasible solution-When optimality condition is satisfied and artificial variable is
present at some positive level The problem does not have any feasible solution