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Ans:
Operations Research is an interdisciplinary branch of applied mathematics
and formal science that uses methods such as mathematical modelling, statistics,
and algorithms to arrive at optimal or near optimal solutions to complex problems.
It is typically concerned with optimizing the maxima (profit, assembly line
performance, crop yield, bandwidth, etc) or minima (loss, risk, etc.) of some
objective function. Operations research helps management achieve its goals using
scientific methods. The terms operations research and management science are
often used synonymously. When a distinction is drawn, management science
generally implies a closer relationship to the problems of business management.
The field of operations research is closely related to Industrial engineering.
Industrial engineers typically consider Operations Research (OR) techniques to be a
major part of their toolset. Some of the primary tools used by operations
researchers are statistics, optimization, probability theory, queuing theory, game
theory, graph theory, decision analysis, and simulation. Because of the
computational nature of these fields, OR also has ties to computer science, and
operations researchers use custom-written and off-the-shelf software. Operations
research is distinguished by its frequent use to examine an entire management
information system, rather than concentrating only on specific elements (though
this is often done as well). An operations researcher faced with a new problem is
expected to determine which techniques are most appropriate given the nature of
the system, the goals for improvement, and constraints on time and computing
power. For this and other reasons, the human element of OR is vital. Like any other
tools, OR techniques cannot solve problems by themselves.
Scope of operation Research:
Examples of applications in which operations research is currently used include:
1.Y critical path analysis or project planning: identifying those processes in a
complex project which affect the overall duration of the project.
2.Y Designing the layout of a factory for efficient flow of materials.
3.Y constructing a telecommunications network at low cost while still
guaranteeing QoS (quality of service) or QoS (Quality of Experience) if
particular connections become very busy or get damaged.
4.Y Road traffic management and 'one way' street allocations i.e. allocation
problems.
5.Y Determining the routes of school buses (or city buses) so that as few
buses are needed as possible.
6.Y Designing the layout of a computer chip to reduce manufacturing time
(therefore reducing cost) Managing the flow of raw materials and products
in a supply chain based on uncertain demand for the finished products.
7.Y Efficient messaging and customer response tactics.
 !.Y Robotizing or automating human-driven operations processes.
9.Y Globalizing operations processes in order to take advantage of cheaper
materials, labour, land or other productivity inputs Managing freight
transportation and delivery systems (Examples: LTL Shipping, intermodal
freight transport).
10.Scheduling.
11.Personnel staffing.
12.Manufacturing steps.
13.Project tasks.
14.Network data traffic: these are known as queuing models or queueing
systems.
15.Sports events and their television coverage blending of raw materials in
oil.
16.Refineries determining optimal prices, in many retail and B2B settings,
within the disciplines of pricing science.
Operations research is also used extensively in government where
evidence-based policy is used.

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Operation Research is a scientific method of providing executive departments with a

quantitative basis for decisions regarding the operations under their control. Morse
& Kimball Operations research is a scientific approach to problem solving for
executive management. ± H.M. Wagner Operations research is an aid for the
executive in making these decisions by providing him with the needed quantitative
information based on the scientific method of analysis. The mission of Operations
Research is to serve the entire Operations Research (OR) community, including
practitioners, researchers, educators, and students. Operations Research, as the
flagship journal of our profession, strives to publish results that are truly insightful.
Each issue of Operations Research attempts to provide a balance of well-written
articles that span the wide array of creative activities in OR. Thus, the major criteria
for acceptance of a paper in Operations Research are that the paper is important to
more than a small subset of the OR community, contains important insights, and
makes a substantial contribution to the field that will stand the test of time.
Operational research, also known as operations research, is an interdisciplinary
branch of applied mathematics and formal science that uses advanced analytical
methods such as mathematical modelling, statistical analysis, and mathematical
optimization to arrive at optimal or near-optimal solutions to complex decision-
making problems. It is often concerned with determining the maximum (of profit,
performance, or yield) or minimum (of loss, risk, or cost) of some real-world
objective. Originating in military efforts before World War II, its techniques have
grown to concern problems in a variety of industries. Operational research, also
known as OR, is an interdisciplinary branch of applied mathematics and formal
science that uses advanced analytical methods such as mathematical modelling,
statistical analysis, and mathematical optimization to arrive at optimal or near-
optimal solutions to complex decision-making problems. It is often concerned with
determining the maximum (of profit, performance, or yield) or minimum (of loss,
risk, or cost) of some real world objective. Originating in military efforts before
World War II, its techniques have grown to concern problems in a variety of
industries.
Operational research encompasses a wide range of problem-solving techniques and
methods applied in the pursuit of improved decision-making and efficiency. Some of
the tools used by operational researchers are statistics, optimization, probability
theory, queuing theory, game theory, graph theory, decision analysis,
mathematical modelling and simulation.
Because of the computational nature of these fields, OR also has strong ties to
computer science. Operational researchers faced with a new problem must
determine which of these techniques are most appropriate given the nature of the
system, the goals for improvement, and constraints on time and computing power.

Work in operational research and management science may be characterized as

one of three categories:
Fundamental or foundational work takes place in three mathematical disciplines:
probability, optimization, and dynamical systems theory.
Modelling work is concerned with the construction of models, analyzing them
mathematically, implementing them on computers, solving them using software
tools, and assessing their effectiveness with data. This level is mainly instrumental,
and driven mainly by statistics and econometrics. Application work in operational
research, like other engineering and economics' disciplines, attempts to use models
to make a practical impact on real-world problems.
‡ The major sub disciplines in modern operational research, as identified by the
journal Operations Research, are:
‡ computing and information technologies
‡ Decision analysis
‡ Environment, energy, and natural resources
‡ Financial engineering
‡ Manufacturing, service sciences, and supply chain management
‡ Policy modelling and public sector work
‡ Revenue management
‡ Simulation
‡ Stochastic models
‡ Transportation


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1.Systems approach:
The term system approach implies that each problem should be examined in its
entirely to the extent possible and economically feasible from the point of view of
the overall system of which the problem under consideration is one part. Under
those approaches a manager makes conscious attempt to understand the
relationships among various parts of the organisation and their role in supporting
the overall performance of the organisation. Operations objective of operations
research is to provide managers of the organisation with a scientific basis for
solving problems involving the interaction of components of the organisation as a
whole. The decision which is best for the organisation as a whole is called an
optimal decision. Operations research tries to find the best decision relative to a
large portion of the total organisation. Hence in operations research every problem
is considered in its totality, i.e. O.R. adopts systems approach for solving the
problem. In other words, ³Operations Research is the scientific study of large
systems with a view to identify problem areas and provide the mangers with a
quantitative basis for decisions which will enhance their effectiveness in achieving
the specified objectives.´

2. Inter-disciplinary Team Approach:

It is an important characteristic of O.R. According to this characteristic, no single
individual can be an expert on all aspects of a problem under consideration. Thus,
O.R. utilizes the inter disciplinary team approach. Under this approach, a team
comprising experts from different disciplines such as mathematics, statistics,
economics, management, computer science, engineering and psychology, etc. is
constituted. Such a team when confronted with a problem determines its solution
by utilizing the diverse background and skills of the teammates. Every expert of the
team, while solving the problem, tries to abstract the essence of the problem and
then determines whether a similar type of problem has been dealt by his team or
not. If the answer is yes, then it is solution of the current problem. In this way,
each member of the team, by utilizing his experience and expertise, may be in a
position to suggest an approach to overcome a problem that otherwise may not be
possible for an individual to tackle.
3. Methodological Approach:
O.R. utilizes scientific methods for solving a problem. Specifically, the process
begins with the careful observation and formulation of the problem. The next step is
to construct a scientific model (typically a mathematical model) that attempts to
abstract the essence of the real problem. From this model, conclusions or solutions
are obtained which are also valid for the real problem. In an interactive fashion, the
model is then verified through appropriate experiments to determine the best or
optional solution to the problem under consideration.
4. Operations economy:
O.R. is a problem solving and a decision making science. Whenever we have
conflicts, uncertainty and complexity in any situation, O.R. can help in the end to
reduce costs and improve profits and effects substantial ³Operations Economy´.
Once the old approach of management by intuit is buried, a scientific approach to
decision making is bound to help. Often the conflicts are so tangled that they defy
any intuitive solution, viz., the marketing function frequently caught up in recoiling
the following conflicting objectives: i) product innovation, ii) high scale volume, iii)
increasing market share, iv) flexibility in the market place, and v)entry into new
markets and revenue markets. It is here that O.R. is likely to convincingly optimize
the total effectiveness.

From all above areas of applications, one may conclude that operations
research can be widely advocate a systems approach for making timely
management decisions and also used as a corrective measure. O.R. encourages
systems approach which concerned with the cost optimization, and hence we can
say: O



  

 


     
 

 
 


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Operations research is today recognised as an applied science concerned with large
number of diverse human activities. To be precise an operation uses some valuable
resources like men, money, machines, time, effort, etc. The outcome of the
operation has also some value. An operations research worker is required: i) to
minimize the input value for a specific output, or /and ii) to maximize the output
value for a specific input, or /and iii) maximize some function of these values, e. g.
the profit function (difference between output & input values) or return-on-
investment function (ratio of output and input values), etc.

Some of the areas of management where techniques of operations research are

applied are listed below:

1. Finance, Budgeting and Investments:

a) cash flow analysis, long range capital requirements, investment

portfolios, dividend policies, etc.

b) credit policies, credit risks and delinquent account procedures.

c) claim and complaint procedures.

d) Dividend policies, investment and portfolio management, balance

sheet and cash flow analysis.

2. Purchasing, procurement and Exploration:

a) Determining the quality and timing of purchase of raw materials,

machinery, etc.

b) Rules for buying and supplies under varying prices.

c) Bidding policies.

d) Equipment replacement policies.

e) Determination of quantities and timings of purchases.

f) Strategies for exploration and exploitation of new material source.

3. Production Management:

a) Î  

i) Location and size of warehouses, distribution centres, retail outlets,

etc.

ii) Distribution policy

b)  

 i) Production scheduling and sequencing

ii) Product scheduling and allocation of resources

iii) Selection & location of factories, warehouses and their sizes

iv) Determining the optimal production mix.

v) Maintenance policies & preventive maintenance.

vi) Scheduling & sequencing the production run by proper allocation

of machines.

4. Marketing Management:

a) Product selection, timing, competitive actions.

b) Advertising strategy & choice of different media of advertising.

c) Number of salesman, frequency of calling of accounts, etc.

d) Effectiveness of market research.

e) Size of the stock to meet the future demand.

5. Personnel Management:

a) Recruitment policies & assignment of jobs.

b) Selection of suitable personnel with due consideration for age and

skills, etc.

c) Establishing equitable bonus systems.

6. Research & Development:

a) Determination of areas of concentration of research and development.

b) Reliability & evaluation of alternative designs.

c) control of development projects.

d) coordination of multiple research projects.

e) Determination of time & cost requirements.

From all above areas of applications, one may conclude that operations
research can be widely used in taking timely management decisions and also used
as a corrective measure. The application of this tool involves certain data and not
merely a personality of decision maker, and hence we can say: O














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How to convert profit maximization transportation problem to an equivalent cost
minimization transportation problem can be understood by following Illustration as:
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, !00, 500 & 400 units respectively. Per unit return
(excluding transportation costs) are Rs. !, 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;
v 
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Factory Dealers Factory
capacity
1 2 3 4
city - A 6 6 6 4 1000
city - B 4 2 4 5 700
city - c 5 6 7 ! 900

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.!), 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.

v 

 

Factory Dealers Factory
capacity
1 2 3 4
city - A 2 2 2 4 1000
city - B 4 6 4 3 700
 city - c 3 2 1 0 900
Dealer 900 !00 500 400 2600
requirement

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.

4. Write the difference in the simplex solution procedure for a maximization

problem and a minimization problem of linear programming.

The difference in the simplex solution procedure for a maximization problem and a
minimization problem of linear programming can be explained by the steps followed
to solve the minimization/ minimization problem as follows ;

1. Introduce stack variables (Si¶s) for ³£´ type of constraint.

2. Introduce surplus variables (Si¶s) and artificial variables (Ai) for ³³´ type of
constraint.

3. Introduce only Artificial variable for ³=´ type of constraint.

4. cost (cj) of slack and surplus variables will be zero and that of artificial
variable will be M´

5. Find Zj ± cj for each variable.

6. Slack and artificial variables will form basic variable for the first simplex
table. Surplus variable will never become basic variable for the first simplex
table.

7. Zj = sum of [cost of variable x its coefficients in the constraints ± Profit or

cost coefficient of the variable].

!. Select the most negative value of Zj ± cj. That column is called key column.
The variable corresponding to the column will become basic variable for the
next table.

9. Divide the quantities by the corresponding values of the key column to get
ratios; select the minimum ratio. This becomes the key row. The basic
variable corresponding to this row will be replaced by the variable found in
step 6.

10. The element that lies both on key column and key row is called Pivotal
element.

11. Ratios with negative and a´ value are not considered for determining
key row.
 12. Once an artificial variable is removed as basic variable, its column will be
deleted from next iteration.

13. For maximisation problems, decision variables coefficient will be same

as in the objective function. For minimisation problems, decision variables
coefficients will have opposite signs as compared to objective function.

14. Values of artificial variables will always is ± M for both maximisation

and minimisation problems.


15. The process is continued till all Zj ± cj 0.

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Every linear programming problem (LPP) is associated with another linear

programming problem involving the same data and optimal solutions. Such two
problems are said to be duals of each other. One problem is called the primal, while
the other problem is called the dual. The dual formulation is derived from the same
data and solved in a manner similar to the original 'primal' formulation. In other
words, you can say that dual is the 'inverse' of the primal formulation because of
the following reasons.

ƒY If the primal objective function is 'maximisation' function, then the dual

objective function is 'minimisation' function and vice-versa.

ƒY The column co-efficient in the primal constraint is the row co-efficient in the
dual constraint.

ƒY The co-efficients in the primal objective function are the RHS constraint in
the dual constraint.

ƒY The RHS column of constants of the primal constraints becomes the row of
co-efficient of the dual objective function.

The concept of duality is useful to obtain additional information about the variation
in the optimal solution. These changes could be effected in the constraint co-
efficient, in resource availabilities and/or objective function co-efficient. This effect
is termed as post optimality or sensitivity analysis.

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If the primal problem possesses a unique non-degenerate, optimal solution, then

the optimal solution to the dual is unique. However, dual solutions arise under a
number of other conditions. Several of the cases which can arise are:

ƒY When the primal problem has a degenerate optimal solution, the dual has
multiple optimal solutions.
 ƒY When the primal problem has multiple optimal solutions, the optimal dual
solution is degenerate.

ƒY When the primal problem is unbounded, the dual is infeasible.

ƒY When the primal problem is infeasible, the dual is unbounded or infeasible.


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consider the following LPP

Maximise ù !!  
Subject to the constraints
 !!  "
! !!!  !"!
 !!  "
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To construct a dual problem, you must adopt the following guidelines:

i. The maximisation problem in the primal becomes a minimisation problem in the

dual and vice versa

ii. (”) type of constraints in the primal become (•) type of constraints in the dual
and vice versa.

iii. The coefficients c1, c2, . . .,cn in the objective function of the primal become b1,
b2,«,bm in the objective function of the dual.

iv. The constants b1, b2,«,bm in the constraints of the primal become c1, c2, . .
.,cn in the constraints of the dual

v. If the primal has n variables and m constraints the dual will have m variables
and n constraints

vi. The variables in both the primal and dual are non-negative

Thus the dual problem will be

Minimise & !!  
Subject to the constraints
 !!  $
! !!!  !$!
 !!  $
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Formation of dual LPP is easier when the standard form of LPP for maximisation
problem must contain ³”´ type of constraints, while for minimisation problem, it
must contain ³$'type of constraints.

Two Phase Method:

Two-phase method for solving a given LPP can be divided in the two phses as
mentioned below:

Phase I: Formulate the new problem. Start by eliminating the original objective
function by the sum of the artificial variables for a minimisation problem and the
negative of the sum of the artificial variables for a maximisation problem. The
Simplex method optimizes the ensuing objective with the constraints of the original
problem. If a feasible solution is arrived, the optimal value of the new objective
function is zero (suggestive of all artificial variables being zero). Subsequently
proceed to phase -II. If the optimal value of the new objective function is non-zero,
it means there is no solution to the problem and the method terminates.

Phase II: Start phase II using the optimum solution of phase I as the base. Then
take the objective function without the artificial variables and solve the problem
using the Simplex method.

Why is it used?

The drawback of the penalty cost method is the possible computational error
resulting from assigning a very large value to the constant M. To overcome this
difficulty, Two - Phase Simplex method is considered where the use of M is
eliminated by solving the problem in two phases.

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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 recognised as a powerful tool for management decision-

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

1.YIt does not produce optimal results. Solutions are approximate, and it is
some less than formal but µsatisfactory¶ approach to problem-solving only.
2.YTo 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.YEach 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.YSince simulation involves repetitions of the experiment, it is a time
consuming task when manually done.
5.YAs a number of parameters, increase, the difficulty in finding the optimum
values increases to a considerable extent.
6.YBecause 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.YOne 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.
!.Y The computer time as it is fairly significant.
9.Y A simulation application is based on the premise that the behaviour 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 ³tempered´ with managerial
judgment


 

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1. 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.
Ans:-

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.
Ans : A fictive corporation A has a contract to supply motors for all tractors
produced
by a fictive corporation B. corporation B manufactures the tractors at four
locations around central Europe: Prague, Warsaw, Budapest and Vienna. Plans
call for the following numbers of tractors to be produced at each location:
Prague 9 000
Warsaw 12 000
Budapest 9 000
corporation A has three plants that can produce the motors. The plants and
production capacities are
Hamburg ! 000
Munich 7 000
Leipzig 10 000
Dresden 5 000
Due to varying production and transportation costs, the profit earns on each motor
depends on where they were produced and where they were shipped. The
following transportation table (Table 7.9) gives the accounting department
estimates of the euro profit per unit (motor).

] '3 $]

Applying the Stepping Stone method (modified for maximization purposes) to the
initial solution we can see that no other transportation schedule can increase the
profit and so the Highest ± Profit initial allocation is also an optimal solution of
this transportation problem.
÷
÷ 



: Pick any empty cell and identify the closed path leading to that cell. A
closed path consists of horizontal and vertical lines leading from an empty cell

back to itself (If assignments have been made correctly, the matrix has only one
closed path for each empty cell.) In the closed path there can only be one empty
cell that we are examining. The 90-degree turns must therefore occur at those
places that meet this requirement. Two closed paths are identified. closed path 
is required to evaluate empty cell A-E; closed path is required to evaluate empty
cell A-F

.Move one unit into the empty cell from a filled cell at a corner of the
closed path and modify the remaining filled cells at the other comers of the closed
path to reflect this move. (More than one unit could be used to test the desirability
of a shift. However, since the problem is linear, if it is desirable to shift one unit, it
is desirable to shift more than one, and vice versa.) Modifying entails adding to
and subtracting from filled cells in such a way that supply and demand constraints
are not violated. This requires that one unit always be subtracted in a given row or
column for each unit added to that row or column. Thus, the following additions
and subtractions would be required :

 .
‡ Add one unit to A-E (the empty cell).
‡ Subtract one unit from A-H.
‡ Add one unit to c-H.
‡ Subtract one unit from c-E.

  þ
‡ Add one unit to A-F (the empty cell).
‡ Subtract one unit from A-H.
‡ Add one unit to c-H.
‡ Subtract one unit from c-G.
‡ Add one unit to D-G.
‡ Subtract one unit from D-F.
8.Determine desirability of the move. This is easily done by (1) summing
the cost values for the cell to which a unit has been added, (2) summing the cost
values of the cells from which a unit has been subtracted, and (3) taking the
difference between the two sums to determine if there is a cost reduction. If the
cost is reduced by making the move, as many units as possible should be shifted
out of the evaluated filled cells into the empty cell. If the cost is increased, no
move should be made and the empty cell should be crossed.
5 %%'±þ%



3. Illustrate graphically the following special cases of Linear programming

problems:
i) Multiple optimal solutions, ii) No feasible solution, iii) Unbounded problem

Ans:- Solving a LPP with 2 decision variables x1 and x2 through graphical

representation is easy. consider x1 x2 ± the plane, where you plot the solution
space enclosed by the constraints. The solution space is a convex set bounded by a
polygon; since a linear function attains extreme (maximum or minimum) values
only on the boundary of the region. You can consider the vertices of the polygon
and find the value of the objective function in these vertices. compare the vertices
of the objective function at these vertices to obtain the optimal solution of the
problem.

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The method of solving a LPP on the basis of the above analysis is known as the
graphical method. The working rule for the method is as follows.
.1down the equations by replacing the inequality symbols by the
equality symbols in the given constraints.

.3% the straight lines represented by the equations obtained in step I.
8.7$+the convex polygon region relevant to the problem. Decide on
which side of the line, the half-plane is located.
.,the vertices of the polygon and find the values of the given
objective function Z at each of these vertices. Identify the greatest and least of
these values. These are respectively the maximum and minimum value of Z.
 0.7$+the values of (x1, x2) which correspond to the desired extreme
value of Z. This is an optimal solution of the problem
We can analyse linear programming with 2 decision variables graphically.
±(%
Let¶s look at the following illustration.
Maximise Z = 700 x1+500 x2
Subject to 4x1+3x2 210
2x1+x2 90
and x1 0, x2 0
Let the horizontal axis represent x1 and the vertical axis x2. First, draw the line 4x1
+ 3x2 = 210, (by replacing the inequality symbols by the equality) which meets the
x1-axis at the point A (52.50, 0) (put x2 = 0 and solve for x1 in 4x1 + 3x2 = 210)
and the x2 ± axis at the point B (0, 70) (put x1 = 0 in 4x1 + 3x2 = 210 and solve
for x2).

Suppose a linear programming problem has an unbounded

feasible solution space.
If the set of all values of the objective function at different
feasible solutions is not bounded above (respectively, bounded
below), and if the problem is a maximisation (respectively,
minimisation) problem, then we say that the given problem has
an

 %
 

Q4: 4. How would you deal with the Assignment problems, where a) the objective
function is to be maximized?
b) Some Assignments are prohibited?

Ans:- Let¶s say there are Än jobs in a factory having Än machines to process the
jobs. A job i (=1« n), when processed by machine j (=1« n) is assumed to incur a
cost cij. The assignment is to be made in such a way that each job can associate
with one and only one machine. You can then determine an assignment of jobs to
the machines to minimise the overall cost.
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. The number of
jobs and number of machines should be equal.
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 with same
efficiency 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.
Therefore, you can compare an assignment problem to a transportation problem.
The cost element is given and is a square matrix and requirement at each
destination is one and availability at each origin is also one.
Additionally, you have number of origins,

Which equal the number of destinations. Therefore, the total demand is equal to the
total supply. There is only one assignment in each row and each column. However if
you compare this to a transportation problem, you will find that a general
transportation problem does not have the above mentioned limitations. These
limitations are peculiar to assignment problems only.
An assignment problem can be either balanced or unbalanced. Let¶s first focus on a
balanced assignment problem. A balanced assignment problem is one where the
number of rows = the number of columns (comparable to a balanced transportation
problem where total demand =total supply).

Balanced assignment problem: No. of rows = No. of columns

A:- the objective function is to be maximized :-

Some assignment problems are phrased in terms of maximizing the profit or

effectiveness or payoff of an assignment of people to tasks or of jobs to machines.
You cannot apply the Hungarian method to such maximization problems. Therefore,
you need to reduce it to a minimization problem.
It is easy to obtain an equivalent minimization problem by converting every number
in the table to an opportunity loss. To do so, you need to subtract every value from
the highest value of the matrix and then proceed as usual
You will notice that minimizing the opportunity loss produces the same assignment
solution as the original maximization problem.

B:- b Some Assignments are prohibited

7$%
It is sometimes possible that a particular person is incapable of doing certain work
or a specific a specific job cannot be performed on a particular machine. The
solution of the assignment problem should take into account these restrictions so
that the infeasible assignment can be avoided. This can be achieved by assigning a
very high cost (say ’ or M) to the cells where assignments are prohibited, thereby,
restricting the entry of this pair of job ± machine or resource ± activity into the final
solution. After inserting a high value at the cell we need to apply Hungarian
method to solve the problem.
0! 
% %%+)%
% %

 -
 +%%%+  %( 
+%%+% %
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±%


Ans: 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.
Simulation is the imitation of some real thing, state of affairs, or
process. The act of simulating something generally entails
representing certain key characteristics or behaviours of a selected
physical or abstract system. Simulation is used in many contexts,
such as simulation of technology for performance optimization, safety
engineering, testing, training,education, and video games. Training
simulators include flight simulators for training aircraft pilots.
Simulation is also used for scientific modeling of natural systems or
human systems in order to gain insight into their functioning.
Simulation can be used to show the eventual real effects of
alternative conditions and courses of action. Simulation is also used
when the real system cannot be engaged, because it may not be
accessible, or it may be dangerous or unacceptable to engage, or it is
being designed but not yet built, or it may simply not exist.
Simulation can be used when the problem is too
complex for analytical solution and too dangerous for actual
experimentation. Key issues in simulation include acquisition of valid
source information about the relevant selection of key characteristics
 and behaviours, the use of simplifying approximations and
assumptions within the simulation, and fidelity and validity of the
simulation outcomes.

6,9  +:  $ %)%%'

  %
.An optimum solution to an IPP is obtained by using the 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 required optimum
integer solution.
Otherwise, the given IPP is modified by inserting a new constraint called
Gomory¶s constraint or secondary constraint. This constraint represents necessary
conditions for integrability and eliminates some non-integer solution without losing
any integral solution. On addition of the secondary constraint, the problem is solved
using dual simplex method to obtain an optimum integral solution. If all the values
of the variables in the solution are integers, then an optimum inter-solution is
obtained, or else a new constraint is added to the modified LPP and the procedure
is repeated till the optimum solution is derived. 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 important and needs special attention.
c 
  $9  +: 
consider a LPP or an optimum non±integer basic feasible solution. With the usual
notations, let the solution be displayed in the following simplex.

The optimum basic feasible solution is given by

xB = [x2, x3 ] = [y10, y20]; max z = y00
Since (is a non-integer solution, we can assume that %is fractional. The
constraint equation is
y10 = y11 x1 + y12 x2 + y13 x3+ y14 x4 0xx4 1
It reduces to
y10 = y11 x1 + x2 + y14 x4 _____ (1) 0xx4 1
Because x!and x)are basic variables (which implies that y12 = 1 and y13 = 0.
The above equation can be rewritten as
x2 = y10 - y11 x1 - y14 x4
This is a linear combination of non-basic variables.
Now, since y10 0 the fractional part of y10 must also be non-negative. You can split
each of *in (1) into an integral part +*#and a non-negative fractional part, *
*%##!#)#,After the breakup (1) above, you can write it as:
I10 + f10 = (I11 + f11) x2 + (I14 + f14) x4
Or
f10 - f11 x2 - f14 x4 = x2 + I11 x1 + I14x4 - I10 _
If you compare (1) and (2), you will see that if you add an additional constraint in
such a way that the left-hand side of (2) is an integer; then you will be forcing the
non-integer y10 towards an integer.
The desired Gomory¶s constraint is
f10 ± f11 x1 ± f11 x4 ” 0
It is possible to have f10 ± f11 x1 ± f11 x4 = h where h > 0 is an integer. Then f10
= h + f11 x1 + f14 x4 is greater than one. This contradicts that 0 < fij < 1 for j =
0, 1, 2, 3, 4.
Thus Gomory¶s constraint is
10 sla 4 ,1j j ij 4 , 1j 10 j ij 4 , 1j j ig f ) 1(G x f or f x . f or f x f 10 Where Gsla (1)
is a slack variable in the above first Gomory¶s constraint
The additional constraint to be included in the given LPP is towards obtaining an
optimum all integer solution. After adding the constraint, the optimum simplex
table looks like given below.

Since ± f10 is negative, the optimal solution is unfeasible. Thus the dual simplex
method is to be applied for obtaining an optimum feasible solution. After obtaining
this solution, the above referred procedure is applied for constructing second
Gomory¶s constraint. The process is to be continued till all the integer solution has
been obtained.