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MB0048
The environment
The objectives
The decision maker
The alternative courses of action and constraints.
Out of the above four components environment is most comprehensive as it provides a setting for the
remaining three. The operation researcher shall attend conferences, pay visits, send observation and
perform research work thus succeeds in getting sufficient data to formulate the problems.
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Rajiv Kalia
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MB0048
Linear programming can be applied if certain requirements are met. These requirements are as
follows:
The objective function should be clearly defined and measurable in quantitative terms; for
e.g. maximization of profits and minimization of costs.
The activities to be included should be clear and quantitative in nature; for e.g. products to
be included in production scheduling should be clearly defined.
The graphic method of solving linear programming problems consists of the following steps :
Step 1: Plot the Constraints: - To plot the constraints, treat each constraint as equalities so as it
represents a straight line. Because of Non-negativity constraints the graph will be in the first
quadrant. Depending upon inequalities mark the regions either below or above the line.
Step 2: Identify the feasible region: - The feasible region is the region in which all the
constraints are satisfied. In other words, it is the common portion of all the regions represented
by all the constraints of the problem.
Step 3: Locate the solution points: - The feasible region contains an infinite number of points.
In this step, search those points which will make objective function optimum. Note that such
points will be only from corner points of the solution space. This is because of extreme point
theorem. Let the solution space of an L.P.P. be a complex region bounded by lines in the plane.
Then the objective function of L.P.P. attends its maximum (or minimum) at the vertices (corners
of the feasible space region).
Step 4 : Select any of the following two methods :(a)
Choose a convenient profit (or cost) and draw as iso profit (or iso cost) line so that it
falls within shaded region.
Move this iso profit (or iso cost) line parallel to itself further (closer) from (to) the
origin.
Identify the optimum solution as the co ordinate of that point on the feasible region
touched by the highest possible iso profit line (or lower possible iso cost) line.
Read the co ordinates of optimum point either directly from the graph or by
simultaneous solution two lines intersecting at that point.
Compute the optimum profit (or cost) values
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(b)
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Identifying each of the corner or extreme points of the feasible regions either directly
from the graph or by method of simultaneous equation.
Evaluate the objective function at each of the corner points of the feasible region.
Identify the optimum solution which corresponds to those corner points which gives the
optimum values of the objective function.
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?
Solution:Let x1 and x2 be the numbers of units of two grades of X and Y Since the profit for the two
grades of paper X and Y are given, the objective function is to maximize the profit.
MAX (Z) =200X1+500X2
There are 2 constrains one w.r.t. to raw materials and the other w.r.t to production hours. The
complete LPP is Max (Z) =200X1=500x2; Subject to
X1<=400
X2<=300
0.20x1+0.40x2<=160
x1 >=0 , x2 >=0
x1 = 200 tons
x2 = 300 tons
Profit = 190000.
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D1
C11
C21
C31
:
Cm1
d1
D2
C12
C22
C32
:
Cm2
d2
D3
C13
C23
C33
:
Cm3
d3
Dn
C1n
C2n
C3n
:
Cmn
dn
Supply
s1
s2
s3
:
sm
If all dij > 0, then the current basic feasible solution is optimal and unique.
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If all dij = 0, then the current basic feasible solution is optimal and an alternate
solution also exists.
If one or more dij < 0, then the current basic feasible solution is not optimal.
2) Finding out the opportunity cost table: it involves identifying the minimum element
from each row or column of the cost matrix and subtracting it from all the elements of
that row or column. The resultant matrix would contain one zero in every column and
row. Such a matrix is called a reduced matrix.
3) Making assignments in the opportunity cost matrix: it involves the following steps:
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Examine the rows sequentially and select those that contain only single zeroes.
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Make a box on this zero and cross all the zeroes of the columns and rows in which
this boxed zero is lying.
Examine other rows for single zeroes, and then repeat the process.
Repeat the process till all the zeroes in the rows and columns are either boxed or
crossed in the cross in the cross matrix; if not repeat the process.
4) Finding the optimality criterion: It refers to the selection criteria of an optimal solution.
An optimal solution of an assignment is obtained if the number of assigned cells equals
the number of rows and columns. The total cost involved in the optimal assignment is
calculated by adding the original cost figures in the occupied cells. In the case the optimal
solution is not obtained, proceed to the step 5.
5) Revising the opportunity cost table: It involves drawing the least number of vertical
and horizontal lines required to shield all the zeroes in the reduced matrix, which is
obtained from the step 3 by implementing the following procedures:
Examine the marked rows. If any zero cells occur in those rows, mark a tick on
the respective columns containing those zeroes.
Examine the marked columns. If any assigned zero occurs in those columns, tick
the respective rows that contain those assigned zeroes.
Draw a straight line through each marked column and each unmarked row.
If the number of lines drawn is equal to the number of rows or columns, the
current solution is the optimal solution; otherwise go to next step 6.
6) Developing the new revised opportunity cost table: it includes the following steps;
Select the smallest element from all the uncovered elements and term this element
k.
Subtract this smallest element (k) from all the elements not covered by a line.
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MB0048
10
5
5
2
J2
9
8
4
3
J3
7
7
6
4
J4
8
7
5
5
Answer:First, the minimum element in each row is subtracted from all the elements in that row. This
gives the following reduced-cost matrix.
J1
J2
J3
J4
M1
3
2
0
1
M2
0
3
2
2
M3
1
0
2
1
M4
0
1
2
3
Since both the machines M2 and M4 have a zero cost corresponding to job J1 only, a feasible
assignment using only cells with zero costs is not possible. To get additional zeros subtract the
minimum element in the fourth column from all the elements in that column. The result is shown
in the table below.
J1
J2
J3
J4
M1
3
2
0
0
M2
0
3
2
1
M3
1
0
2
0
M4
0
1
2
2
Only three jobs can be assigned using the zero cells, so a feasible assignment is still not possible.
In such cases, the procedure draws a minimum number of lines through some selected rows and
columns in such a way that all the cells with zero costs are covered by these lines. The minimum
number of lines needed is equal to the maximum number of jobs that can be assigned using the
zero cells.
J1
J2
J3
J4
M1
4
2
0
0
M2
0
2
1
0
M3
2
0
2
0
M4
0
0
1
1
A feasible assignment is now possible and an optimal solution is assigned
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M1 to J3
M2 to J1
M3 to J4
M4 to J2
The total cost is given by: 7 +5+ 5+ 3 = 20
An alternate optimal solution is:
M1 to J3
M2 to J4
M3 to J2
M4 to J1
In case a feasible set could not be obtained at this step, one has to repeat the step of drawing lines
to cover the zero and continue until a feasible assignment is obtained.
Setting random number intervals: Implies that after determining the cumulative
distribution for each variable, a set of numbers to represent each possible outcome is
assigned. The set of numbers is also known as random number intervals.
Generating random numbers: Implies that a random number is a series of two digit or
three digit numbers. A random number can be generated through many ways.
Simulating the experiment through random sampling: Involves repeating the process till
the required number of simulation runs has been generated.
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b. Hindustan Bakery is popular for its delicious fruit cakes. The table below
shows the daily demand for the bakerys cakes.
Daily
0
15
25
35
45
50
demand
Probability 0.01
0.15
0.2
0.5
0.12
0.02
Simulate the demand for cakes for 10 days using the following sequence of
random numbers: 22, 26, 48, 53, 93, 89, 42, 91, 25, 20 If 35 cakes are baked
every day in Hindustan Bakery, determine the inventory stock. In addition,
estimate the daily average demand for cakes on the basis of simulated data.
Solution:Probability Distribution for the Production of Cakes
Daily
Probability
Cumulative
Random
Demand
Probability
Numbers
0
.01
.01
0
15
.15
.16
1 - 15
25
.2
.36
16 - 35
35
.5
.86
36 - 85
45
.12
.98
86 - 97
50
.02
1
98 - 99
At the start of simulation, the first random number 22 generates the demand of 25 cakes. The
demand is determined from the cumulative probability values given in above table. At the end of
the first day, the closing quantity is 10 (35-25) cakes. Similarly we calculate daily demand.
Calculation of Daily Demand for Cakes
Days
Demand
1
2
Random
Number
22
26
25
25
+10
+20
3
4
5
6
7
8
9
10
48
53
93
89
42
91
25
20
35
35
45
45
35
45
25
25
+20
+20
+10
0
0
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0
+10
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Total
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340
From the above table, it can be observed that the total demand is 340. Therefore, the daily
average demand of cakes would be:
Average demand = Total demand/ number of days =340/10 = 34 cakes.
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MB0048
First Come First Served (FCFS): Refers to the rule of priority in which job orders are
processed on the basis of their order of arrival in a production department.
Shortest Operating Time (SOT): In this jobs are sequenced on the basis of their processing
time. If the processing time of the job is less as compared to others, it would be run first.
Earliest Due Date (EDD): Refers to the rule of priority that classifies and sequences jobs on
the basis of their due dates. In EDD, a job having the nearest due date is processed first.
Stack Time Remaining (STR): Refers to another important rule of priority. STR can be
determined by using the following formula:
STR = Time left before due date Time left in completing the process.
Critical Ratio (CR): Refers to a ratio that determined by subtracting the due data from the
current date, and then dividing the resultant value by the value number of remaining working
days.
Last Come First Serve (LCFS): refers to the rue of priority that is adopted by the
purchasing department of an organization by default. When the department receives orders,
they are located on the top of the pile.
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