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e-Notes by D.G.

Kantharaju, East Point College, Bangalore


Network Analysis Network is a graphical representation of all the Activities and Events arranged in a logical and sequential order. Network analysis plays an important role in project management. A project is a combination of interrelated activities all of which must be executed in a certain order for its completion. Activity: Activity is the actual performance of the job. This consumes resources (Time, human resources, money, and material) Event: An event refers to start or completion of a job. This does not consume any resources. Analyzing network, the planning, scheduling and control of a project becomes easier. PERT and CPM are the two most popular network analysis technique used to assist managers in planning and controlling large scale projects. PERT- (Programme Evaluation Review Technique) CPM - (Critical Path Method)

Applications: Construction of a Residential complex, Commercial complex, Petro-chemical complex Ship building Satellite mission development Installation of a pipe line project etc... Historical Evolution. Before 1957 there was no generally accepted procedure to aid the management of a project. In 1958 PERT was developed by team of engineers working on a Polaris Missile programme of the navy. This was a large project involved 250 prime contractors and about 9000 job contractors. It had about 19 million components. In such projects it is possible that a delay in the delivery of a small component might hold the progress of entire project. PERT was used successfully and the total time of completion was reduced from 7 years to 5 years. In 1958 Du Pont Company used a technique called Critical Path Method (CPM) to schedule and control a very large project like overhauling of a chemical plant, there by reducing the shutdown period from 130hrs to 90 hrs saving the company 1 million dollar. Both of these techniques are referred to as project scheduling techniques.

Differences between PERT & CPM PERT CPM

1. It is a technique for planning 1. It is a technique for planning scheduling & controlling of projects scheduling & controlling of projects whose activities are subject to whose activities not subjected to uncertainty in the performance time.any uncertainty and the Hence it is a probabilistic model performance times are fixed. Hence it is a deterministic model 2.It is an Event oriented system 3.Basically does not differentiate critical and non-critical activities 4. Used in projects where resources (men, materials, money) are always available when required. 5. Suitable for Research and Development projects where times cannot be predicted 2. It is an Activity oriented system Differentiates clearly the critical activities from the other activities. 4. Used in projects where overall costs is of primarily important. Therefore better utilized resources 5.Suitable for civil constructions, installation, ship building etc.

Rules for drawing the n


1 2

In a network diagram,

activities and circles re

The tail of an arrow rep


3

activity and the2 head re 1

Each defined activity is arrow in the network.

Determine which opera

immediately before oth


1 2
4

Determine which other

The basic network con systems

Network representation

AOA system (Activity on Arrow system)1. Problem In this activities are Construct an arrow diag represented by an Activities
5

B A C

Problem 2. Construct an arrow diag


6

A 14

Problem 3. Construct an arrow diag Job


7

A D

Problem 4. Construct an arrow diag


8

A B C

Problem 5. Construct an arrow diag Activity A B C D E F


B A

Predec A,B B,C A,B,C


10

Problem 6.

Draw the PERT networ

Event A is followed by Event D is preceded by

Event H is the success Event E is the success B Event F is the success


11

Event C is the predece

CRITICAL PATH Meaning: The longest path in a project network which determine the duration of the project is known as critical path.

Determination of Critica
2 1 4 3 5 2 3

2 Step 1. List all the possible sequ Path A : 1 2 5 8

Path B : 1 all 5 8 Step 1.List 3 the possible sequ 12 Path C : 1 3 6sequence determ Step 2.For each 7 8

Step 2.For each sequence determ required from start to finish. Path A : 2 + 3 + 4 = 9 days Path B : 4 + 5 + 4 = 13 days

Path C : 4 + 5 + 6 + 1 of Critica Determination = 16 days

Path D : 4 + 2 + 3 + 1 = 10 days 3 2 2 Path E : 4 + 2 + 2 + 6 + 1 = 10 day 1 Step 3.Identify the longest path ( 5 4 Path C : 4 + 5 + 6 + 1 = 1613days

Float (Slack) Float (Slack ) refers to the amount of time by which a particular event or an activity can be delayed without affecting the time schedule of the network. Float (Slack) Float (Slack) is defined as the difference between latest allowable and the earliest expected time. Event Float/Slack = LS ES Where LS = Latest start time ES = Early start time. Earliest start : Denoted as ES Earliest start time is the earliest possible time by which the activity can be started. Early finish time : Denoted as EF Early finish time is the earliest possible time by which the activity can be completed. Latest start time : Denoted as LS Latest start time is the latest possible time by which the activity can be started Late finish time : Denoted as LS Late finish time is the latest possible time by which the activity can be completed Total float (TF) / Total slack (TS) Total float of the job is the differences between its Late start and Early start or Late finish and Early finish i.e. TF( CA) = LS (CA) - ES (CA) Or TF( CA) = LF (CA) - EF (CA) CA = Current activity Free float (FF) Free float is the amount of time a job can be delayed without affecting the Early start time of any other job. FF(CA) = ES(SA) EF (CA) CA = Current Activity SA = Succeeding Activity Independent Float (IF) Independent Float is the amount of time that can be delayed without affecting either predecessor or successor activities. IF = ES(SA) LF(PA) - Duration of CA ES = Early Start LF = Late Finish SA = Succeeding Activity PA = Preceding Activity CA = Current Activity

14

Example 1 Construct the Network for the following Project and determine the following i) Critical Path ii) ES,EF,LS,LF iii) TF,FF Activity 1-2 1-4 2-3 2-4 3-5 4-5 5-6 Duration 14 3 7 0 4 3 10

Construction of the Network


4
B
3

C
3

G 0

15

Determination of TF and
1) )(1 9) 3 0, ( )(1 2 B ,2 19 3(
A( 0, 14 14 )(0 (0 ) ,1 4) (0 Activity Duration ) 2

C(14 ,

3(2 2,2

G(14,14)

0(22,22)

ES D(14,21

7(14,21

TF( CA) = LS (CA) - ES (CA) 1-2 14 0

1-4

16 FF(CA) = ES(SA) EF (CA)

Example 2 Construct the Network for the following Project and determine the following i) Critical Path ii) ES,EF,LS,LF iii) TF,FF Activity 1-2 2-3 2-4 3-5 3-6 4-6 4-7 5-8 6-8 7-8 Duration 2 3 5 4 1 6 2 8 7 4

17

0)

Activity

Duration

ES

1-2 2-3 2-4 3-5 3-6 4-6 4-7 5-8 6-8

2 3 5 4 1 6 2 8 7

0 2 2 5 5 7 7 9

In PERT model, 3 time values are associated with each activity. They are i) Optimistic time = to ii) Pessimistic time = tp iii) Most likely time = tm These three times provide a measure of uncertainty associated with that activity Optimistic Time: This is the shortest possible time in which the activity can be finished. It assumes that every thing goes well. Pessimistic Time: This is the longest time that an activity could take. It assumes that every thing goes wrong. Most likely Time: It is the estimate of the normal time that an activity would take. This assumes normal delays. Expected Time ( te): te can be calculated by the following formula te = (to + 4tm + tp) / 6 Example. If a job has to = 5 days, tp = 17 days, tm = 8 days Then Expected time for the job would be

13
18

te = (to + 4tm + tp) / 6 = (5 + 4 x 8 + 17) / 6 = 9 days Variability of activity times Standard deviation and Variance are commonly used in statistics to measure the variability of number. In PERT model, to measure the variability of an activity time duration standard deviation and variance are used. A large standard deviation represents high variability and vice-versa. Calculation of Standard Deviation and Variance Variance = (Standard deviation )2 Standard deviation =(t p t o) / 6 Expected length of the Critical Path = te of all the activities along the Critical Path Probability of completing the project within a given date Z = (TS TE ) / Where TS = Scheduled time for project completion TE = Expected time for the project completion = Standard deviation for the Network Network = Sum of variances along the Critical Path = ( i-j )2 Where i-j is the variance of a activity i-j along the critical path Example 1 Construct the Network for the following project and calculate the probability of completing the project in 25 days Activity 1-2 1-3 2-3 2-4 3-4 3-5 4-6 5-6 to 2 4 2 2 0 3 6 1 tm 6 8 4 3 0 6 10 3 tp 10 12 6 4 0 9 14 5

19

1.Construction of the Ne
-10 6

2
-4-6 2

2-3

2-

4-

8-

12

2. Calculation of Expected
2-10 6 6

2
-6
20

2-3

3. Determination of Criti
2Activity 1-2 1-3 2-3 2-4 3-4 3-5 4-6 5-6 to 2 4 2 2 0 3 6 1 tm

-10 6
Critical activities

2
2 = ((t p t o) / 6)2 1.78

2-3

3
4

1 6
8 4 3 0 6

tp 10 12 6 4 0 9 14 5

1-2 4-8 2-3 8 3-4 4-6 -

-4-6 2

12

0.44

10 3

1.78

2 = 4.00 Network = Sum of variances along the Critical Path = (Network )2 21

=4 =2 Probability of completing the project within a given date Z = (TS TE ) / Where TS = Scheduled time for project completion TE = Expected time for the project completion = Standard deviation for the Network = (25 20) / 2 = + 2.5 From the Normal distribution Table, we get the probability of completing the project in 25 days is 99.4%

Example 2. The following table lists the jobs of a network along with their time estimates. Activity 1-4 1-3 1-2 4-5 3-5 3-6 5-6 2-6 to 3 3 6 1 3 2 6 4 tm 9 6 12 4 9 5 12 19 tp 27 15 30 07 27 08 30 28

a) Draw the project network. b) What is the probability that the job will be completed in 35 days? c) What due date has 90% chance of being met? 22

1.Construction of the Ne
- 30 -12

3 - 6 - 15
9

2. Calculation of Expect 3 -2 7
30 2 -4 1 614

23

3 - 6 - 15

3. Determination of Criti
30 -

-12 6
Path A Activity 1-2 2-6

14

As there are two Critical Paths, the path which gives more variance(2) is taken as Critical Path 2 = ((t p t o) / 6)2 ((30 6)/6)2 ((28 4)/6)2

3 - 6 - 15
2

Path B Activity 1-3 3-5 5-6 ((15 3)/6)2 ((27 3)/6)2 ((30 6)/6)2

11 - 27
2 4 16 16 2= 36.00

-9

16 16

2 = 32.00

2 = ((t p t o) / 6)2

4
24

= 2 = 36

=6

Therefore the Critical Path is 1 - 3 - 5 - 6 b) Probability of completing the project within a given date Z = (TS TE ) / Where TS = Scheduled time for project completion TE = Expected time for the project completion = Standard deviation for the Network = (35 32) / 6 = + 0.5 From the Normal distribution Table, we get the probability of completing the project in 35 days is 69.15% c) The due date for 90% chance of being met. Probability of completing the project within a given date Z = (TS TE ) / The value of Z from the table for a 90% probability is +1.28 TS = ? (to be calculated) ,TE = 32, = 6 i.e. 1.28 = (TS 32) / 6 TS = 39.68 days CPM Model In 1958 Du Pont Company used a technique called Critical Path Method (CPM) to schedule and control a very large project like overhauling of a chemical plant, there by reducing the shutdown period from 130hrs to 90 hrs saving the company 1 million dollar. Both of these techniques are referred to as project scheduling techniques. Cost considerations in PERT / CPM The total cost of any project comprises of two costs. Direct cost - material cost, manpower loading Indirect cost - overheads such as managerial services, equipment rent, building rent etc.

25

Indirect cost

Direct cost

Crash

Norm

Job duration Shorter the duration higher will be the D

Job duration Example 1. Shorter the duration lesser will be the Indir
26

Crash

Norm

To

Find the lowest cost and optimum cost schedule for the following project, given the over head expenses as Rs.45/-day. Activity Normal duration Crash duration 1 2 3 2 Cost of crashing per day Rs.40 Rs.40 Rs.10 Rs.20

1-2 2-3 2-4 3-4

3 4 7 5

1.Construction of the Ne

3 -1 40
27

1.Determination of Critic

3 -1 40

Step 1.
1 3 -1 40 2
28

Step 2.
1 3 -1 40 2

10 days
Activity crashed Days saved Project duration

Co

Step 3.
None

13-4
3-4 &2-4 1-2

0 3 -1

12

40
1 2

2 10
9
29

Step 3.
1 3 -1 40 2

9 days
Activity crashed Days saved Project duration

Co

None 3-4 3-4 &2-4 1-2

0 2 1 2

12 10 9
30

Step 4.
1 1 -1 40 2

Activity crashed

Step 5.
1
None 3-4 1-2

7 days
Days saved 3 -1 Project duration

Co

40
0 2 2

2
12 10 9
31

3-4 &2-45 days 1

SIMULATION Simulation is to imitate reality to represent reality. Simulation is a technique for conducting experiments Simulation is descriptive and not optimizing technique Simulation is a process often consists of repetition of an experiment in many, many times to obtain an estimate of the overall effect of certain actions. Simulation is usually called for only when the problem under investigation is too complex to be treated by analytical models or by numerical optimization techniques. In a simulation, a given system is copied and the variables and constants associated with it are manipulated in that artificial environment to examine the behaviour of the system. In general terms, Simulation involves developing a model of some real life phenomenon and then performing experiments on the model evolved. Often we do not find a mathematical technique that; a model once constructed may permit us to predict what will be the consequences of taking a certain action. In particular we could experiment on the model by trying alternative actions or parameters and compare their consequences. This experimentation allow us to answer what if questions relating the effects of your assumption on the model response. The availability of the computers makes it possible for us to deal with an extraordinary large quantity of details which can be incorporated into a model and the ability to manipulate the model over many experiments (i.e. replicating all the possibilities that may be imbedded in the external world and events would seem to recur). For example, Testing of an aircraft model in a wind tunnel to test the aerodynamic properties of an the model A model of a traffic signal system Military war games Business games for training Planetarium etc. 32

Simulation defined A simulation of a system or an organism is the operation of a model or simulator which is a representation of the system or organism. The model is amenable to manipulation which would be impossible, too expensive or unpractical to perform on the entity it portrays. The operation of the model can be studied and for it, properties concerning the behaviour of the actual system can be inferred. -Shubik Simulation is the process of designing a model of a real system and conducting the experiments with this model for the purpose of understanding the behaviour (within the limits imposed by a criterion or set of criterion) for the operation of the system. Shannon Steps of Simulation process Step 1: Identify the problem. If an inventory system is being simulated, then the problem may concern the determination of the size of the order (number of units to be ordered) when the inventory falls up to the reorder level (point). Step 2: Identify the decision variables, performance criterion (objective) and the decision rules. In the context of the above defined inventory problem, the demand (consumption rate), lead time and safety stock are identified as the decision variable. These variables shall be responsible to measure the performance of the system in terms of total inventory cost under the decision rule- when to order. Step 3: Construct a numerical model. Numerical model is constructed to be analyzed on the computer. Some times the model is written in a particular simulation language which is suited for the problem under the analysis. Step 4: Validate the model Validation is necessary to ensure whether it is truly representing the system being analyzed and the results will be reliable. Step 5: Design the experiments

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Conduct experiments with the simulation model by listing specific values of variables to be tested (i.e. list courses of action for testing) at each trail (run). Step 6: Run the simulation model. Run the model on the computer to get the results in form of operating characteristics. Step 7: Examine the results. Examine the results of the problem as well as their reliability and correctness. If the simulation is complete, then select the best course of action (or alternative) otherwise make the desired changes in the model decision variables, parameters or design and return to step 3. Advantages of simulation 1. Simulation is a straight forward and simple technique 2. The technique is very useful to analyze large and complex problems which are not amenable to mathematical or quantitative methods. 3. It is an interactive method, which enables the decision maker to study the changes and their effects on the performance of the system. 4. The experiments in a simulation are run on the model and not on the system itself. Limitations of simulation 1. At times simulation models can be very costly and expensive 2. It is trail and error technique to produce different solutions in repeated runs. 3. The solution obtained from the simulation may not be optimal. 4. The simulation model needs to be examined and analyzed for decision making. It only creates an alternative and not an optimal solution by itself.

Monte-Carlo techniques or Monte-Carlo simulation. The Monte-Carlo method is a simulation technique in which statistical distribution functions are created by using series of random numbers Random numbers. The underlying theory in random number is that, each number has an equal opportunity of being selected.

34

There are various ways in which random numbers may be generated. These could be: result of some device like coin or die; published table of random numbers, mid-square method, or some other sophisticated method. It may be mentioned here that random numbers generated by some method may not be really random in nature. In fact such numbers are called pseudo-random-numbers. Rand corporation (of USA): A million random digits, is a random number table used in simulation situations. The numbers in these tables are in random arrangement. The Monte-Carlo simulation technique consists of the following steps. 1. Setting up a probability distribution for variables to be analyzed. 2. Building a cumulative probability distribution for each random variable. 3. Generating random numbers. Assign an appropriate set of random numbers to represent value or range (interval) of values for each random variable. 4. Conduct the simulation experiment by means of random sampling 5. Repeat Step 4 until the required number of simulation runs has been generated. 6. Design and implement a course of action and maintain control. Example 1. A bakery keeps stock of popular brand of cake. Previous experience shows the daily demand pattern for the item with associated probabilities, as given below: Daily demand(number) Probability 0 0.01 10 0.20 20 0.15 30 0.50 40 0.12 50 0.02

Use the following sequence of random numbers to simulate the demand for next 10 days. Random Numbers 40 19 87 83 73 84 29 09 02 20

Also estimate the daily average demand for the cakes on the basis of simulated data. Solution: Using the daily demand distribution, we obtain a probability distribution as shown in the following Table.

Daily demand distribution

35

Daily Demand 0 10 20 30 40 50

Probability 0.01 0.20 0.15 0.50 0.12 0.02

Cumulative Probability 0.01 0.21 0.36 0.86 0.98 1.00

Random Number Interval 00 01-20 21-35 36-85 86-97 98-99

By conducting the simulation experiment for demand by taking a sample of 10 random numbers from the table of random numbers we get, Days 1 2 3 4 5 6 7 8 9 10 Random Number 40 19 87 83 73 84 29 09 02 20 Total Demand 30 10 40 30 30 30 20 10 10 10 = 220 Because 0.36 < 0.40 < 0.85 Because 0.01 < 0.19 < 0.20 and so on

Expected demand = 220/10 = 22 units per day.

Example 2. XYZ spare parts company wishes to determine the level of stock it should carry for items in its range. Demand is not certain and there is a lead time for stock replenishment. For one item X, the following information is obtained. Demand (Units/day) 3 4 5 6 7

36

Probability Carrying cost(Per unit per day) Ordering cost(per order) Lead time for

0.10

0.20

0.30 Rs.2

0.30

0.10

Rs.50

3 days

replenishment Stock on hand at the beginning of the simulation exercise was 20 units. Carry out a simulation run over a period of 10 days with the objective of evaluating the inventory rule: Order 15 units when present inventory plus outstanding falls below 15 units. The sequence of random numbers to be used is :0,9,1,1,5,1,8,6,3,5,7,1,1,2,9 using the first number for day one. Solution: Let us begin the simulation by assuming that i) orders are placed at the end of the day and received after 3 days at the end of the day. ii) back orders are accumulated in case of short supply and are supplied when stock is available. The cumulative probability distribution and the random number range for daily demand is shown in the table.

Daily Demand Distribution Daily Demand Probability Cumulative Random Number Probability Range 3 0.10 0.10 00 4 0.20 0.30 01-02 5 0.30 0.60 03-05 6 0.30 0.90 06-08 7 0.10 1.00 09 The results of the simulation experiment conducted are as shown below. Days Opening Random Resulting Closing Order Order Average stock

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Stock Number Demand Stock 1 20 0 3 17 2 17 9 7 10 3 10 1 4 6 4 6 1 4 2 5 2 5 5 0(-3)* 6 12 1 4 8 7 8 8 6 2 8 2 6 6 0(-4)* 9 11 3 5 6 10 6 5 5 1 *Negative figure indicates back orders. Average ending stock = 73/10 = 7.3 units/day

Placed 15 15 15 -

Delivered 15 15 -

in the evening 18.5 13.5 8 4 1 10 5 1 8.5 3.5

Daily ordering cost = (Cost of placing one order) x (Number of orders placed per day) = 50 x 0.3 = Rs.15 Daily carrying cost = (Cost of carrying one unit per day) x (Average ending stock) = 2 x 7.3 = Rs.14.6 Total daily inventory cost = Daily ordering cost + Daily carrying cost = 15 + 14.6 = Rs.29.6 Example 3. A small retailer deals in a perishable commodity, the daily demand and supply of which are random variables. The past 500 days data show the following: Supply Demand Available ( kg ) Number of Days Demand (kg ) Number of Days 10 40 10 50 20 50 20 110 30 190 30 200 40 150 40 100 50 70 50 40 The retailer buys the commodity at Rs.20 per kg and sells at Rs.30 per kg. If any commodity remains at the end the day it has no resale value and is a dead loss. Moreover, the loss on any unsatisfied demand is Rs.8 per kg Given the following random numbers. Simulate six day sales. 31 18 63 84 15 79 07 32 43 75 81 27

38

Using the random numbers alternatively, for example, first pair (31) to simulate supply and second pair (18) to simulate demand, etc. Solution: Probability and Random Number Interval for Daily Demand and Supply Available (kg) 10 20 30 40 50 Probability Random Demand (kg) 10 20 30 40 50 Probability Random Number 40/500=0.08 00-07 50/500=0.10 08-17 190/500=0.38 18-55 150/500=0.30 56-85 70/500=0.14 85-99 Number 50/500=0.10 00-09 110/500=0.22 10-31 200/500=0.40 32-71 100/500=0.20 72-91 40/500=0.08 92-99

Simulation Experimentation Sheet Day 1 2 3 4 5 6 Random Supply Number 31 63 15 07 43 81 (kg) 30 40 20 10 30 40 Random Demand Cost Number 18 84 79 32 75 27 (kg) 20 40 40 30 40 20 (Rs) 600 800 400 200 600 800 Revenue Shortage Profit (Rs) 600 1,200 600 300 900 600 (Loss) 160 160 80 400 40 -60 220 -200

The above table shows that during these six days period retailer makes a net profit of Rs.400. Example 4. A sample of 100 arrivals of a customer at a retail sales depot is according to the following distribution. Time between arrival(Minutes) 0.5 1.0 1.5 2.0 2.5 Frequency 2 6 10 25 20 39

3.0 3.5 4.0 4.5 5.0

14 10 7 4 2

A study of the time required to service customers by adding up the bills, receiving payments and placing packages, yields the following distribution Time between service(Minutes) 0.5 1.0 1.5 2.0 2.5 3.0 Frequency 12 21 36 19 7 5

Estimate the average percentage of customer waiting time and average percentage of idle time of the server by simulation for the next 10 arrivals. Solution: Arrival Arrivals 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 Frequency 2 6 10 25 20 14 10 7 4 Probability 0.02 0.06 0.10 0.25 0.20 0.14 0.10 0.07 0.04 Cumulative Probability 0.02 0.08 0.18 0.43 0.63 0.77 0.87 0.94 0.98 Random No. Interval 00-01 02-07 08-17 18-42 43-62 63-76 77-86 87-93 94-97

40

5.0

0.02

1.00

98-99

Service Time between service(Minutes) 0.5 1.0 1.5 2.0 2.5 3.0 Arrival Random Inter No. No. Time 1 2 3 4 5 6 7 8 9 10 93 22 53 64 39 07 10 63 76 35 (Mins.) 4.0 2.0 2.5 3.0 2.0 1.0 1.5 3.0 3.0 2.0 12 21 36 19 7 5 0.12 0.21 0.36 0.19 0.07 0.05 Frequency Probability Cumulative Probability 0.12 0.33 0.69 0.88 0.95 1.00 Random No. Interval 00-11 12-32 33-68 69-87 88-94 95-99 Wt.time of the Server 4.0 0.5 1.5 0.5 0.5 7.0

Arrival Random Service Service Service Wt.time No. Time (Mins) 78 76 58 54 74 92 38 70 96 92 2.0 2.0 1.5 1.5 2.0 2.5 1.5 2.0 3.0 2.5 4 6 8.5 11.5 13.5 15.5 18.0 19.5 22.0 25.0 6 8 10.0 13 15.5 18 19.5 21.5 25.0 27.5 Total Start End of the end customer 1.0 2.0 0.5 1.0 4.5 (Mins) 4.0 6.0 8.5 11.5 13.5 14.5 16.0 19.0 22.0 24.0

Arrival Time

Average waiting time per customer is 4.5/10 = 0.45 minutes Average waiting time or idle time of the server = 7.0/10 = 0.7 minutes.

41

Example 5. A tourist car operator finds that during the past few months the cars use has varied so much that the cost of maintaining the car varied considerably. During the past 200 days the demand for the car fluctuated as below. Trips per week 0 1 2 3 4 5 Frequency 16 24 30 60 40 30

Using the random numbers simulate the demand for a 10 week period. Solution: Trips per week/ Demand per week 0 1 2 3 4 5 16 24 30 60 40 30 0.08 0.12 0.15 0.30 0.20 0.15 0.08 0.20 0.35 0.65 0.85 1.00 Frequency Probability Cumulative Probability Random Number Interval 00-07 08-19 20-34 35-64 65-84 85-99

The simulated demand for the cars for the next 10 weeks period is given in the table below

42

Week 1 2 3 4 5 6 7 8 9 10

Random Number 82 96 18 96 20 84 56 11 52 03 Total

Demand 4 5 1 5 2 4 3 1 3 0 28

Average Demand = 28/10 = 2.8 cars per week

Example 6. An automobile production line turns out about 100 cars a day, but deviations occur owing to many causes. The production is more accurately described by the probability distribution given below. Production per day 95 Probability 0.03

43

96 97 98 99 100 101 102 103 104 105 Finished cars are transported

0.05 0.07 0.10 0.15 0.20 0.15 0.10 0.07 0.05 0.03 across the bay at the end of each day by the ferry. If the

ferry has space for only 101 cars, what will be the average numbers of waiting to be shipped and what will be the average number of empty space on the ship? Solution: Production per day 95 96 97 98 99 100 101 102 103 104 105 Probability 0.03 0.05 0.07 0.10 0.15 0.20 0.15 0.10 0.07 0.05 0.03 0.03 0.08 0.15 0.25 0.40 0.60 0.75 0.85 0.92 0.97 1.00 Cumulative Probability 00-02 03-07 08-14 15-24 25-39 40-59 60-74 75-84 85-91 92-96 97-99 Random Number Interval

The simulated production of cars for the next 15 days is given in the following table. Day Random Number 1 2 3 4 5 6 7 8 9 97 02 80 66 96 55 50 29 58 105 95 102 101 104 100 100 99 100 Production per day 4 1 3 No. of cars waiting 6 1 1 2 1 44 No. of empty space in the ship

10 11 12 13 14 15

51 04 86 24 39 47

100 96 103 98 99 100 Total

2 10

1 5 3 2 1 23

Average number of cars waiting to be shipped = 10/15 = 0.67 per day Average number of empty space on the ship = 23/15 = 1.53 per day

Example 7. A company manufactures 30 units per product. The sale of these items depends upon demand which has the following distribution. Sale (units) 27 28 29 30 31 32 Probability 0.10 0.15 0.20 0.35 0.15 0.05

The production cost and sale price of each unit are Rs.40 and Rs.50 respectively. Any unsold product is to be disposed off at a loss of Rs.15 per unit. There is a penalty of Rs.5 per unit if the demand is not met. Using the following random numbers, estimate the total profit/loss for the company for the next 10 days. Random Numbers: 10, 99, 65,99,95,01,79,11,16 and 20. If the company decides to produce 29 units per day, what is the advantage or disadvantage to the company? Sale (units) 27 28 Probability 0.10 0.15 Cumulative Probability 0.10 0.25 Random Number Interval 00-09 10-24

45

29 30 31 32

0.20 0.35 0.15 0.05

0.45 0.80 0.95 1.00

25-44 45-79 80-94 95-99

Set up the simulation for next 10 days Day 1 2 3 4 5 6 7 8 9 10 Random Number 10 99 65 99 95 01 79 11 16 20 Total Simulated Sales 28 32 30 32 32 27 30 28 28 28 Number of units Unsold 30-28=2 0 0 0 0 30-27=3 0 30-28=2 2 2 11 Number of units short 0 32-30=2 0 2 2 0 0 0 0 0 6

At the production rate of 30 per day, total number of units produced in 10 days = 30 X 10 = 300 Nos, since the production cost is Rs.40 and the sales price is Rs.50, the per unit profit is Rs.10 Day Demand Actual Sales Profit on Actual sales 1 2 3 4 5 6 7 10 99 65 99 95 01 79 28 30 30 30 30 27 30 280 300 300 300 300 270 300 Loss due to the unsold units 2 X 15 = 30 3 X 15 = 45 0 Loss due to penalty for shortage 2 X 5 = 10 2 X 5 = 10 2 X 5 = 10 0 0

46

8 9 10

11 16 20

28 28 28 289

280 280 280 Rs.2890

2 X 15 = 30 2 X 15 = 30 2 X 15 = 30 Rs.165

0 0 0 Rs.30

(a) Total profit for next 10 days when production is 30 units per day = (2890) (165 +30) = 2890-195 = 2695 (b) If the company decides to produce 29 units per day. The calculation of profit and loss is as shown below. Day Demand Production units 1 2 3 4 5 6 7 8 9 10 28 32 30 32 32 27 30 28 28 28 29 29 29 29 29 29 29 29 29 29 Total Actual Sales 28 29 29 29 29 27 29 28 28 28 284 Profit on Actual sales 280 290 290 290 290 270 290 280 280 280 Rs.2840 Loss due to the unsold units 1 X 15 = 15 0 0 0 0 1 X 15 = 15 0 1 X 15 = 15 1 X 15 = 15 1 X 15 = 15 Rs.90 Loss due to penalty for shortage 0 3 X 5= 15 1X5=5 3 X 5= 15 3 X 5= 15 0 1X5=5 0 0 0 Rs.55

Total profit for next 10 days when production is 29 units per day = (2840) (90 + 55) = Rs.2695 Since the profit is same for both the cases there is no disadvantage to the company.

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Linear Programming Problems Formulation Linear Programming is a mathematical technique for optimum allocation of limited or scarce resources, such as labour, material, machine, money, energy and so on , to several competing activities such as products, services, jobs and so on, on the basis of a given criteria of optimality. The term Linear is used to describe the proportionate relationship of two or more variables in a model. The given change in one variable will always cause a resulting proportional change in another variable. The word , programming is used to specify a sort of planning that involves the economic allocation of limited resources by adopting a particular course of action or strategy among various alternatives strategies to achieve the desired objective. Hence, Linear Programming is a mathematical technique for optimum allocation of limited or scarce resources, such as labour, material, machine, money energy etc. Structure of Linear Programming model. The general structure of the Linear Programming model essentially consists of three components. i) The activities (variables) and their relationships ii) The objective function and iii) The constraints The activities are represented by X1, X2, X3 ..Xn. These are known as Decision variables. The objective function of an LPP (Linear Programming Problem) is a mathematical representation of the objective in terms a measurable quantity such as profit, cost, revenue, etc. Optimize (Maximize or Minimize) Z=C1X1 +C2X2+ ..Cn Xn Where Z is the measure of performance variable X1, X2, X3, X4..Xn are the decision variables And C1, C2, Cn are the parameters that give contribution to decision variables. The constraints These are the set of linear inequalities and/or equalities which impose restriction of the limited resources

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Assumptions of Linear Programming Certainty. In all LP models it is assumed that, all the model parameters such as availability of resources, profit (or cost) contribution of a unit of decision variable and consumption of resources by a unit of decision variable must be known and constant. Divisibility (Continuity) The solution values of decision variables and resources are assumed to have either whole numbers (integers) or mixed numbers (integer or fractional). However, if only integer variables are desired, then Integer programming method may be employed. Additivity The value of the objective function for the given value of decision variables and the total sum of resources used, must be equal to the sum of the contributions (Profit or Cost) earned from each decision variable and sum of the resources used by each decision variable respectively. /The objective function is the direct sum of the individual contributions of the different variables Linearity All relationships in the LP model (i.e. in both objective function and constraints) must be linear. General Mathematical Model of an LPP Optimize (Maximize or Minimize) Z=C1 X1 + C2 X2 ++CnXn Subject to constraints, a11X1+ a 12X2++ a 1nXn (<,=,>) b1 a21X1+ a 22X2++ a 2nXn (<,=,>) b2 a31X1+ a 32X2++ a 3nXn (<,=,>) b3 am1X1+ a m2X2++ a mnXn (<,=,>) bm and X1, X2 .Xn > Guidelines for formulating Linear Programming model i) Identify and define the decision variable of the problem ii) Define the objective function iii) State the constraints to which the objective function should be optimized (i.e. Maximization or Minimization) iv) Add the non-negative constraints from the consideration that the negative values of the decision variables do not have any valid physical interpretation

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Example 1. A manufacturer produces two types of models M1 and M2.Each model of the type M1 requires 4 hours of grinding and 2 hours of polishing; where as each model of M2 requires 2 hours of grinding and 5 hours of polishing. The manufacturer has 2 grinders and 3 polishers. Each grinder works for 40 hours a week and each polisher works 60 hours a week. Profit on M1 model is Rs.3.00 and on model M2 is Rs.4.00.Whatever produced in a week is sold in the market. How should the manufacturer allocate his production capacity to the two types of models, so that he makes maximum profit in a week? i) Identify and define the decision variable of the problem Let X1 and X2 be the number of units of M1 and M2 model. ii) Define the objective function Since the profits on both the models are given, the objective function is to maximize the profit. Max Z = 3X1 + 4X2 iii) State the constraints to which the objective function should be optimized (i.e. Maximization or Minimization) There are two constraints one for grinding and the other for polishing. The grinding constraint is given by 4X1 + 2X2 < 80 No of hours available on grinding machine per week is 40 hrs. There are two grinders. Hence the total grinding hour available is 40 X 2 = 80 hours. The polishing constraint is given by 2X1 + 5X2 < 180 No of hours available on polishing machine per week is 60 hrs. There are three grinders. Hence the total grinding hour available is 60 X 3 = 180 hours. Finally we have, Max Z = 3X1 + 4X2 Subject to constraints, 4X1 + 2X2 < 80 2X1 + 5X2 < 180 X1, X2 > 0 Example 2. A firm is engaged in producing two products. A and B. Each unit of product A requires 2 kg of raw material and 4 labour hours for processing, where as each unit of B requires 3 kg of raw materials and 3 labour hours for the same type. Every week, the firm has an availability of 60 kg of raw material and 96 labour hours. One unit of product A sold yields Rs.40 and one unit of product B sold gives Rs.35 as profit.

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Formulate this as an Linear Programming Problem to determine as to how many units of each of the products should be produced per week so that the firm can earn maximum profit. i) Identify and define the decision variable of the problem Let X1 and X2 be the number of units of product A and product B produced per week. ii) Define the objective function Since the profits of both the products are given, the objective function is to maximize the profit. MaxZ = 40X1 + 35X2 iii) State the constraints to which the objective function should be optimized (i.e. Maximization or Minimization) There are two constraints one is raw material constraint and the other one is labour constraint.. The raw material constraint is given by 2X1 + 3X2 < 60 The labour hours constraint is given by 4X1 + 3X2 < 96 Finally we have, MaxZ = 40X1 + 35X2 Subject to constraints, 2X1 + 3X2 < 60 4X1 + 3X2 < 96 X1,X2 > 0 Example 3. The agricultural research institute suggested the farmer to spread out atleast 4800 kg of special phosphate fertilizer and not less than 7200 kg of a special nitrogen fertilizer to raise the productivity of crops in his fields. There are two sources for obtaining these mixtures A and mixtures B. Both of these are available in bags weighing 100kg each and they cost Rs.40 and Rs.24 respectively. Mixture A contains phosphate and nitrogen equivalent of 20kg and 80 kg respectively, while mixture B contains these ingredients equivalent of 50 kg each. Write this as an LPP and determine how many bags of each type the farmer should buy in order to obtain the required fertilizer at minimum cost. i) Identify and define the decision variable of the problem Let X1 and X2 be the number of bags of mixture A and mixture B. ii) Define the objective function The cost of mixture A and mixture B are given ; the objective function is to minimize the cost Min.Z = 40X1 + 24X2 iii) State the constraints to which the objective function should be optimized. The above objective function is subjected to following constraints.

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20X1 + 50X2 >4800 80X1 + 50X2 >7200 X1, X2 >0

Phosphate requirement Nitrogen requirement

Finally we have, Min.Z = 40X1 + 24X2 is subjected to three constraints 20X1 + 50X2 >4800 80X1 + 50X2 >7200 X1, X2 >0

Example 4. A firm can produce 3 types of cloth, A , B and C.3 kinds of wool are required Red, Green and Blue.1 unit of length of type A cloth needs 2 meters of red wool and 3 meters of blue wool.1 unit of length of type B cloth needs 3 meters of red wool, 2 meters of green wool and 2 meters of blue wool.1 unit type of C cloth needs 5 meters of green wool and 4 meters of blue wool. The firm has a stock of 8 meters of red, 10 meters of green and 15 meters of blue. It is assumed that the income obtained from 1 unit of type A is Rs.3, from B is Rs.5 and from C is Rs.4.Formulate this as an LPP.( December2005/January 2006) i) Identify and define the decision variable of the problem Let X1, X2 and X3 are the quantity produced of cloth type A,B and C respectively. ii) Define the objective function The incomes obtained for all the three types of cloths are given; the objective function is to maximize the income. Max Z = 3X1 + 5X2 + 4X3 iii) State the constraints to which the objective function should be optimized. The above objective function is subjected to following three constraints. 2X1 + 3X2 < 8 2X2 + 5X3 < 10 3X1 + 2X2 + 4X3 < 15 X1, X2 X3 >0 Finally we have, Max Z = 3X1 + 5X2 + 4X3 is subjected to three constraints 2X1 + 3X2 < 8 2X2 + 5X3 < 10 3X1 + 2X2 + 4X3 < 15 X1, X2 X3 >0

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Example 5. A Retired person wants to invest upto an amount of Rs.30,000 in fixed income securities. His broker recommends investing in two Bonds: Bond A yielding 7% and Bond B yielding 10%. After some consideration, he decides to invest at most of Rs.12,000 in bond B and atleast Rs.6,000 in Bond A. He also wants the amount invested in Bond A to be atleast equal to the amount invested in Bond B. What should the broker recommend if the investor wants to maximize his return on investment? Solve graphically. (January/February 2004) i) Identify and define the decision variable of the problem Let X1 and X2 be the amount invested in Bonds A and B. ii) Define the objective function Yielding for investment from two Bonds are given; the objective function is to maximize the yielding. Max Z = 0.07X1 + 0.1X2 iii) State the constraints to which the objective function should be optimized. The above objective function is subjected to following three constraints. X1 + X2 < 30,000 X1 > 6,000 X2 < 12,000 X1 -- X2 >0 X1, X2 >0 Finally we have, MaxZ = 0.07X1 + 0.1X2 is subjected to three constraints X1 + X2 < 30,000 X1 > 6,000 X2 < 12,000 X1 -- X2 >0 X1, X2 >0 Minimization problems Example 5. A person requires 10, 12, and 12 units chemicals A, B and C respectively for his garden. A liquid product contains 5, 2 and 1 units of A,B and C respectively per jar. A dry product contains 1,2 and 4 units of A,B and C per carton. If the liquid product sells for Rs.3 per jar and the dry product sells for Rs.2 per carton, how many of each should be purchased, in order to minimize the cost and meet the requirements? i) Identify and define the decision variable of the problem Let X1 and X2 be the number of units of liquid and dry products. ii) Define the objective function The cost of Liquid and Dry products are given ; the objective function is to minimize the cost

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Min. Z = 3X1 + 2X2 iii) State the constraints to which the objective function should be optimized. The above objective function is subjected to following three constraints. 5X1 + X2 >10 2X1 + 2X2 >12 X1 + 4X2 >12 X1, X2 >0 Finally we have, Min. Z = 3X1 + 2X2 is subjected to three constraints 5X1 + X2 >10 2X1 + 2X2 >12 X1 + 4X2 >12 X1, X2 >0 Example 6. A Scrap metal dealer has received a bulk order from a customer for a supply of atleast 2000 kg of scrap metal. The consumer has specified that atleast 1000 kgs of the order must be high quality copper that can be melted easily and can be used to produce tubes. Further, the customer has specified that the order should not contain more than 200 kgs of scrap which are unfit for commercial purposes. The scrap metal dealer purchases the scrap from two different sources in an unlimited quantity with the following percentages (by weight) of high quality of copper and unfit scrap Source A Copper Unfit Scrap 40% 7.5% Source B 75% 10%

The cost of metal purchased from source A and source B are Rs.12.50 and Rs.14.50 per kg respectively. Determine the optimum quantities of metal to be purchased from the two sources by the metal scrap dealer so as to minimize the total cost (February 2002) i) Identify and define the decision variable of the problem Let X1 and X2 be the quantities of metal to be purchased from the two sources A and B. ii) Define the objective function The cost of metal to be purchased by the metal scrap dealer are given; the objective function is to minimize the cost Min. Z = 12.5X1 + 14.5X2 iii) State the constraints to which the objective function should be optimized. The above objective function is subjected to following three constraints. X1 + X2 >2,000 0.4X1 + 0.75X2 >1,000 0.075X1 + 0.1X2 + 4X3 < 200 X1, X2 >0

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Finally we have, Min. Z = 12.5X1 + 14.5X2 is subjected to three constraints X1 + X2 >2,000 0.4X1 + 0.75X2 >1,000 0.075X1 + 0.1X2 + 4X3 < 200 X1, X2 >0 Example 7. A farmer has a 100 acre farm. He can sell all tomatoes, lettuce or radishes and can raise the price to obtain Rs.1.00 per kg. for tomatoes , Rs.0.75 a head for lettuce and Rs.2.00 per kg for radishes. The average yield per acre is 2000kg.of tomatoes, 3000 heads of lettuce and 1000 kgs of radishes. Fertilizers are available at Rs.0.50 per kg and the amount required per acre is 100 kgs for each tomatoes and lettuce and 50kgs for radishes. Labour required for sowing, cultivating and harvesting per acre is 5 man-days for tomatoes and radishes and 6 man-days for lettuce. A total of 400 man-days of labour are available at Rs.20.00 per man-day. Formulate this problem as LP model to maximize the farmers profit. i) Identify and define the decision variable of the problem Let X1 and X2 and X3 be number acres the farmer grows tomatoes, lettuce and radishes respectively. ii) Define the objective function The objective of the given problem is to maximize the profit. The profit can be calculated by subtracting total expenditure from the total sales Profit = Total sales Total expenditure The farmer produces 2000X1 kgs of tomatoes, 3000X2 heads of lettuce, 1000X3 kgs of radishes. Therefore the total sales of the farmer will be = Rs. (1 x 2000X1 + 0.75 x 3000X2 + 2 x 100X3) Total expenditure (fertilizer expenditure) will be = Rs.20 ( 5X1 + 6X2 + 5X3 ) Farmers profit will be Z = (1 x 2000X1 + 0.75 x 3000X2 + 2 x 100X3) { [0.5 x 100 x X1+0.5 x 100 x X2 + 50X3]+ [20 x 5 x X1+20 x 6 x X2 + 20 x 5 x X3]} =1850X1 + 2080X2 + 1875X3 Therefore the objective function is Maximise Z = 1850X1 + 2080X2 + 1875X3 iii) State the constraints to which the objective function should be optimized. The above objective function is subjected to following constraints. Since the total area of the firm is 100 acres X1 + X2 + X3 < 100 The total man-days labour is 400 man-days

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5X1 + 6X2 + 5X3 < 400 Finally we have, Maximise Z = 1850X1 + 2080X2 + 1875X3 is subjected to three constraints X1 + X2 + X3 < 100 5X1 + 6X2 + 5X3 < 400 X1, X2 X3 >0 Example 8. An electronics company produces three types of parts for automatic washing machines .It purchases castings of the parts from a local foundry and then finishes the part on drilling, shaping and polishing machines. The selling prices of parts A, B, and C respectively are Rs 8, Rs.10 and Rs.14.All parts made can be sold. Castings for parts A, B and C respectively cost Rs.5, Rs.6 and Rs.10. The shop possesses only one of each type of machine. Cost per hour to run each of the three machines are Rs.20 for drilling, Rs.30 for shaping and Rs.30 for polishing. The capacities (parts per hour) for each part on each machine are shown in the following table. Capacities Per Hour Part A 25 25 40 Part B 40 20 30 Part C 25 20 40

Machine Drilling Shaping Polishing

The management of the shop wants to know how many parts of each type it should produce per hour in order to maximize profit for an hours run. Formulate this problem as an LP model so as to maximize total profit to the company. i) Identify and define the decision variable of the problem Let X1 and X2 and X3 be the number of types A, B and C parts produced per hour respectively . ii) Define the objective function With the information given, the hourly profit for part A, B, and C would be as follows Profit per type A part = (8 5) (20/25 +30/25 + 30/40) = 0.25 Profit per type B part = (10 6) (20/40 + 30/20 + 30/30) = 1 Profit per type C part = (14 10) (20/25 + 30/20 + 30/40) = 0.95 Then, Maximize Z = 0.25 X1 + 1X2 + 0.95X3 iii) State the constraints to which the objective function should be optimized. The above objective function is subjected to following constraints.

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i) The drilling machine constraint X1/25 + X2/40 + X3/24 < 1 ii) The shaping machine constraint X1/25 + X2/20 + X3/20 1 iii) The polishing machine constraint X1/40 + X2/30 + X3/40 1 X1, X2, X3 0 Finally we have, Maximize Z = 0.25 X1 + 1X2 + 0.95X3 Subject to constraints X1/25 + X2/40 + X3/24 < 1 ii) The shaping machine constraint X1/25 + X2/20 + X3/20 1 iii) The polishing machine constraint X1/40 + X2/30 + X3/40 1 X1, X2, X3 0 Example 9. A city hospital has the following minimal daily requirements for nurses. Period 1 2 3 4 5 6 Clock time (24 Minimum hours day) number of nurses required 6 a.m. 10 a.m. 2 10 a.m. 2 p.m. 7 2 p.m. 6 p.m. 15 6 p.m. 10 p.m. 8 10 p.m. 2 a.m. 20 2 a.m. 6 a.m. 6

Nurses report at the hospital at the beginning of each period and work for 8 consecutive hours. The hospital wants to determine the minimal number of nurses to be employed so that there will be a sufficient number of nurses available for each period. Formulate this as a linear programming problem by setting up appropriate constraints and objective function. i) Identify and define the decision variable of the problem Let X1, X2, X3, X4, X5 and X6 be the number of nurses joining duty at the beginning of periods 1, 2, 3, 4, 5 and 6 respectively. ii) Define the objective function Minimize Z = X1 + X2 + X3 + X4 + X5 + X6 iii) State the constraints to which the objective function should be optimized. The above objective function is subjected to following constraints. X1 + X2 7 57

X2 + X3 15 X3 + X4 8 X4 + X5 20 X5 + X6 6 X6 + X1 2 X1, X2, X3, X4, X5, X6 0 Linear Programming: Graphical Solution Example 1. Solve the following LPP by graphical method Maximize Z = 5X1 + 3X2 Subject to constraints 2X1 + X2 1000 X1 400 X1 700 X1, X2 0 Solution: The first constraint 2X1 + X2 1000 can be represented as follows. We set 2X1 + X2 = 1000 When X1 = 0 in the above constraint, we get, 2 x 0 + X2 = 1000 X2 = 1000 Similarly when X2 = 0 in the above constraint, we get, 2X1 + 0 = 1000 X1 = 1000/2 = 500 The second constraint X1 400 can be represented as follows, We set X1 = 400 The third constraint X2 700 can be represented as follows, We set X2 = 700

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The constraints are shown plotted in the above figure Point 0 A B C D X1 0 0 150 400 400 X2 0 700 700 200 0 Z = 5X1 +3X2 0 Z = 5 x 0 + 3 x 700 = 2,100 Z = 5 x 150 + 3 x 700 = 2,850* Maximum Z = 5 x 400 + 3 x 200 = 2,600 Z = 5 x 400 + 3 x 0 = 2,000

The Maximum profit is at point B When X1 = 150 and X2 = 700 Z = 2850 Example 2. Solve the following LPP by graphical method Maximize Z = 400X1 + 200X2 Subject to constraints 18X1 + 3X2 800 9X1 + 4X2 600 X2 150 X1, X2 0 Solution: The first constraint 18X1 + 3X2 800 can be represented as follows. We set 18X1 + 3X2 = 800 When X1 = 0 in the above constraint, we get, 18 x 0 + 3X2 = 800 X2 = 800/3 = 266.67 Similarly when X2 = 0 in the above constraint, we get, 18X1 + 3 x 0 = 800 X1 = 800/18 = 44.44 The second constraint 9X1 + 4X2 600 can be represented as follows, We set 9X1 + 4X2 = 600 When X1 = 0 in the above constraint, we get, 9 x 0 + 4X2 = 600 X2 = 600/4 = 150 Similarly when X2 = 0 in the above constraint, we get, 9X1 + 4 x 0 = 600 X1 = 600/9 = 66.67 The third constraint X2 150 can be represented as follows, We set X2 = 150

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Point 0 A B C

X1 0 0 31.11 44.44

X2 0 150 80 0

Z = 400X1 + 200X2 0 Z = 400 x 0+ 200 x 150 = 30,000* Maximum Z = 400 x 31.1 + 200 x 80 = 28,444.4 Z = 400 x 44.44 + 200 x 0 = 17,777.8

The Maximum profit is at point A When X1 = 150 and X2 = 0 Z = 30,000

Example 3. Solve the following LPP by graphical method Minimize Z = 20X1 + 40X2 Subject to constraints 36X1 + 6X2 108 3X1 + 12X2 36 20X1 + 10X2 100 X1 X2 0 Solution: The first constraint 36X1 + 6X2 108 can be represented as follows. We set 36X1 + 6X2 = 108 When X1 = 0 in the above constraint, we get, 36 x 0 + 6X2 = 108

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X2 = 108/6 = 18 Similarly when X2 = 0 in the above constraint, we get, 36X1 + 6 x 0 = 108 X1 = 108/36 = 3 The second constraint3X1 + 12X2 36 can be represented as follows, We set 3X1 + 12X2 = 36 When X1 = 0 in the above constraint, we get, 3 x 0 + 12X2 = 36 X2 = 36/12 = 3 Similarly when X2 = 0 in the above constraint, we get, 3X1 + 12 x 0 = 36 X1 = 36/3 = 12 The third constraint20X1 + 10X2 100 can be represented as follows, We set 20X1 + 10X2 = 100 When X1 = 0 in the above constraint, we get, 20 x 0 + 10X2 = 100 X2 = 100/10 = 10 Similarly when X2 = 0 in the above constraint, we get, 20X1 + 10 x 0 = 100 X1 = 100/20 = 5

Point 0 A B C D

X1 0 0 2 4 12

X2 0 18 6 2 0

Z = 20X1 + 40X2 0 Z = 20 x 0 + 40 x 18 = 720 Z = 20 x2 + 40 x 6 = 280 Z = 20 x 4 + 40 x 2 = 160* Minimum Z = 20 x 12 + 40 x 0 = 240

The Minimum cost is at point C 61

When X1 = 4 and X2 = 2 Z = 160 Example 4. Solve the following LPP by graphical method Maximize Z = 2.80X1 + 2.20X2 Subject to constraints X1 20,000 X2 40,000 0.003X1 + 0.001X2 66 X1 + X2 45,000 X1 X2 0 Solution: The first constraint X1 20,000 can be represented as follows. We set X1 = 20,000 The second constraint X2 40,000 can be represented as follows, We set X2 = 40,000 The third constraint 0.003X1 + 0.001X2 66 can be represented as follows, We set 0.003X1 + 0.001X2 = 66 When X1 = 0 in the above constraint, we get, 0.003 x 0 + 0.001X2 = 66 X2 = 66/0.001 = 66,000 Similarly when X2 = 0 in the above constraint, we get, 0.003X1 + 0.001 x 0 = 66 X1 = 66/0.003 = 22,000 The fourth constraint X1 + X2 45,000 can be represented as follows, We set X1 + X2 = 45,000 When X1 = 0 in the above constraint, we get, 0 + X2 = 45,000 X2 = 45,000 Similarly when X2 = 0 in the above constraint, we get, X1 + 0 = 45,000 X1 =45,000

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Point 0 A B C D E

X1 0 0 5,000 10,500 20,000 20,000

X2 0 40,000 40,000 34,500 6,000 0

Z = 2.80X1 + 2.20X2 0 Z = 2.80 x 0 + 2.20 x 40,000 = 88,000 Z = 2.80 x 5,000 + 2.20 x 40,000 = 1,02,000 Z = 2.80 x 10,500 + 2.20 x 34,500 = 1,05,300* Maximum Z = 2.80 x 20,000 + 2.20 x 6,000 = 69,200 Z = 2.80 x 20,000 + 2.20 x 0 = 56,000

The Maximum profit is at point C When X1 = 10,500 and X2 = 34,500 Z = 1,05,300 Example 5. Solve the following LPP by graphical method Maximize Z = 10X1 + 8X2 Subject to constraints 2X1 + X2 20 X1 + 3X2 30 X1 - 2X2 -15 X1 X2 0 Solution: The first constraint 2X1 + X2 20 can be represented as follows. We set 2X1 + X2 = 20 When X1 = 0 in the above constraint, we get, 2 x 0 + X2 = 20 X2 = 20 Similarly when X2 = 0 in the above constraint, we get, 2X1 + 0 = 20 63

X1 = 20/2 = 10 The second constraint X1 + 3X2 30 can be represented as follows, We set X1 + 3X2 = 30 When X1 = 0 in the above constraint, we get, 0 + 3X2 = 30 X2 = 30/3 = 10 Similarly when X2 = 0 in the above constraint, we get, X1 + 3 x 0 = 30 X1 = 30 The third constraint X1 - 2X2 -15 can be represented as follows, We set X1 - 2X2 = -15 When X1 = 0 in the above constraint, we get, 0 - 2X2 = -15 X2 = -15/2 = 7.5 Similarly when X2 = 0 in the above constraint, we get, X1 2 x 0 = -15 X1 = -15

Point 0 A B C D

X1 0 0 3 6 10

X2 0 7.5 9 8 0

Z = 10X1 + 8X2 0 Z = 10 x 0 + 8 x 7.5 = 60 Z = 10 x 3 + 8 x 9 = 102 Z = 10 x 6 + 8 x 8 = 124* Minimum Z = 10 x 10 + 8 x 0 = 100

The Maximum profit is at point C When X1 = 6 and X2 = 8 Z = 124 Duality in Linear Programming

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Duality in Linear Programming For every LPP there is a unique LPP associated with it involving the same data and closely related optimal solution. The original problem is then called primal problem while the other is called its Dual problem Let the primal problem be Maximize Z = C1 X1 + C2 X2 + + CnXn Subject to constraints, a11X1+ a 12X2++ a 1nXn <, b1 a21X1+ a 22X2++ a 2nXn <,b2 a31X1+ a 32X2++ a 3nXn <,b3 am1 X1+ a m2X2++ a mnXn <,bm and X1, X2 .Xn > 0 Let the primal problem be Maximize Z = C1 X1 + C2 X2 + + CnXn Subject to constraints, a11X1+ a 12X2++ a 1nXn <, b1 a21X1+ a 22X2++ a 2nXn <,b2 a31X1+ a 32X2++ a 3nXn <,b3 am1 X1+ a m2X2++ a mnXn <,bm and X1, X2 .Xn > 0 Then its Dual is Minimize G = b1W1 + b2W2+ b3W3 + .......+ bmWm Subject to constraints, a11W 1 + a21W2 + a31W3 +................+ am1Wm > C1 a12W 1 + a22W2 + a32W3 +................+ am2Wm > C2 a13W 1 + a23W2 + a33W3 +................+ am3Wm > C3 a1nW 1 + a2nW2 + a3nW3 +................+ amnWm > Cn W 1, W2, W3 ......Wm > 0 Example.1 Write the Dual of the following LPP Min Z = 2X2+ 5X3 X1+ X2 > 2 2X1+ X2 + 6X3 < 6 X1- X2 +3X3 = 4 and X1, X2,X3 > 0 Rearrange the constraints into a standard form, we get Min Z = 0X1 + 2X2+ 5X3 Subject to constraints, X1+ X2 + 0X3> 2 -2X1- X2 - 6X3 > -6 X1- X2 +3X3 > 4

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-X1 + X2 -3X3 > -4 and X1, X2,X3 > 0 The Dual of the above primal is as follows Max.G = 2W1 -6W2+ 4W3 4W4 Subject to constraints, W 1 -2W2 + W3 W4< 0 W 1 - W2 - W3 + W4 < 2 0W 1 - 6W2 + 3W3- 3W4 < 5 W 1, W2, W3,W4 > 0 Max.G = 2W1 -6W2+ 4(W3 W4) Subject to constraints, W 1 -2W2 + (W3 W4 ) < 0 W 1 - W2 - W3 + W4 < 2 0W 1 - 6W2 3(W3- W4 ) < 5 W 1, W2, W3,W4 > 0 Max.G = 2W1 -6W2+ 4W5 Subject to constraints, W 1 -2W2 + W5 < 0 W 1 - W2 W5 < 2 0W 1 - 6W2 3W5 < 5 W 1, W2, > 0 , W5 is unrestricted in sign Example.2 Write the Dual of the following LPP Min Z = 4X1 + 5X2- 3X3 Subject to constraints, X1+ X2 + X3 = 22 3X1+ 5X2 - 2X3 < 65 X1+ 7X2 +4X3 > 120 X1 , X2 > 0 and X3 is unrestricted Since X3 is Unrestricted, replace X3 with (X4 - X5 ) and bring the problem into standard form Min Z = 4X1 + 5X2- 3(X4 - X5) Subject to constraints, X1+ X2 + (X4 - X5) >22 -X1- X2 - (X4 - X5) >- 22 -3X1- 5X2 + 2(X4 - X5) > -65 X1+ 7X2 +4(X4 - X5) > 120 X1 , X2 , X4 ,X5 > 0 The Dual of the above primal is as follows Max.G = 22(W1 -W2)- 65W3 + 120W4

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Subject to constraints, W 1 -W2 - 3W3 +W4< 4 W 1 - W2 - 5W3 + 7W4 < 5 W 1 - W2 + 2W3+ 4W4 < -3 -W 1 + W2 - 2W3- 4W4 < 3 W 1, W2, W3,W4 > 0 Max.G = 22W5 - 65W3 + 120W4 Subject to constraints, W 5- 3W3 +W4< 4 W5 -5W3 + 7W4 < 5 W 1 - W2 + 2W3+ 4W4 < -3 -W 1 + W2 - 2W3- 4W4 < 3 W 1, W2, W3,W4 > 0

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