ASSIGNMENT

Name

: ZAMEENA K.A

Registration No

: 1205004751

Learning centre

: AABASOFT-ACME

Learning Centre Code

: 03378

Course

: MBA

Subject

: MB0048 Operations Research

Semester

: 2nd

Date of Submission

: 15-02-2013

Marks Awarded

Directorate of Distance Education

Sikkim Manipal University
2nd Floor, Syndicate House
Manipal 576104

Signature of the Coordinator

Signature of the Centre

Signature of the Evaluator

ASSIGNMENT SET - 1

aabasoft college OF MANAGEMENT OF TECHNOLOGY (03378)

MB0048 OPERATIONS RESEARCH

Q1. a. What do you mean by linear programming problem? Explain the steps involved
in linear programming problem formulation?
Answer:
Linear programming (LP, or linear optimization) is a mathematical method for determining a
way to achieve the best outcome (such as maximum profit or lowest cost) in a given
mathematical model for some list of requirements represented as linear relationships. The
procedure for mathematical formulation of a linear programming problem consists of the
following major steps:
Step 1: Study the given situation to find the key decision variables to be made.
Step 2: Identify the variables involved and designate them by x j(j=1,2...)
Step 3: State the feasible alternatives which generally are: x j 0, for all j.
Step 4: Identify the constraints in the problem and express them as linear inequalities or
equations, LHS of which are linear functions of the decision variables.
Step 5 : Identify the Objective function and express it as a linear function of the decision
variables.
Q1.b. A paper mill produces two grades of paper viz., X and Y. Because of raw material
restrictions, it cannot produce more than 400 tons of grade X paper and 300 tons of
grade Y paper in a week. There are 160 production hours in a week. It requires 0.20
and 0.40 hours to produce a ton of grade X and Y papers. The mill earns a profit of Rs.
200 and Rs. 500 per ton of grade X and Y paper respectively. Formulate this as a
Linear Programming Problem.
Answer:
Let x1 and x2 be the number of units of two grades of paper of X and Y
Since the profit for the two grades of paper X and Yare given, the objective
function is to maximize the profit Max (Z) = 200x 1 + 500x2 ,
There are 2 constraints one w.r t. to raw material, and the other w.r t .to production hours.
The complete LPP is
Max (Z) = 200x1 + 500x2
Subject to
x1 400
x 2 300
0.2x1 + 0.4x2 160
x1 0, x2 0
Q2. a. Discuss the methodology of Operations Research.
Answer:
The basic dominant characteristic feature of operations research is that it employs
mathematical representations or models to analyse problems. This distinct approach
represents an adaptation of the scientific methodology used by the physical sciences. The
scientific method translates a real given problem into a mathematical representation which is
solved and retransformed into the original context. The OR approach to problem solving

aabasoft college OF MANAGEMENT OF TECHNOLOGY (03378)

consists of the following steps: Defining the problem, Constructing the model, Solving the
model, Validating the model and Implementing the final result.
Definition
1) A description of the goal or the objective of the study
2) An identification of the decision alternative to the system
3) The recognition of the limitations, restrictions and requirements of the system.
Construction : Based on the problem definition, you need to identify and select the most
appropriate model to represent the system. While selecting a model, you need to ensure that
the model specifies quantitative expressions for the objective and the constraints of the
problem in terms of its decision variables. A model gives a perspective picture of the whole
problem and helps tackling it in a well-organised manner. Therefore, if the resulting model
fits into one of the common mathematical models, you can obtain a convenient solution by
using mathematical techniques. If the mathematical relationships of the model are too
complex to allow analytic solutions, a simulation model may be more appropriate. There are
various types of models which you can construct under different conditions.
Solution : After deciding on an appropriate model you need to develop a solution for the
model and interpret the solution in the context of the given problem. A solution to a model
implies determination of a specific set of decision variables that would yield an optimum
solution. An optimum solution is one which maximises or minimises the performance of any
measure in a model subject to the conditions and constraints imposed on the model.
Validation : A model is a good representation of a system. However, the optimal solution
must work towards improving the systems performance. You can test the validity of a model
by comparing its performance with some past data available from the actual system. If under
similar conditions of inputs, your model can reproduce the past performance of the system,
then you can be sure that your model is valid. However, you will still have no assurance that
future performance will continue to duplicate the past behaviour. Secondly, since the model
is based on careful examination of past data, the comparison should always reveal
favourable results. In some instances, this problem may be overcome by using data from
trial runs of the system.
Implementation : Apply optimal solution obtained from the model to the system and note
the improvement in the performance of the system. Validate this performance check under
changing conditions.The interaction between the operations research team and the
operating personnel reaches its peak in this phase.
b. Explain in brief the phases of Operations Research.
Answer:
Phases of Operations Research
The scientific method in OR study generally involves the following three phases.
1. Judgment Phase: This phase includes the following activities:
a) Determination of the operations
b) Establishment of the objectives and values related to the operations
c) Determination of the suitable measures of effectiveness

aabasoft college OF MANAGEMENT OF TECHNOLOGY (03378)

d) Formulation of the problems relative to the objectives

2. Research Phase: This phase utilises the following methodologies:
a) Operations and data collection for a better understanding of the problems
b) Formulation of hypothesis and model
c) Observation and experimentation to test the hypothesis on the basis of additional data
d) Analysis of the available information and verification of the hypothesis using preestablished measure of effectiveness
e) Prediction of various results and consideration of alternative methods
3. Action Phase: The action phase involves making recommendations for the decision
process. The recommendations can be made by those who identified and presented the
problem or anyone who influences the operation in which the problem has occurred.
Q3. Solve the following Linear Programming Problem using Simple method.
Maximize Z= 3x1 + 2X2
Subject to the constraints:
X1+ X2 4
X1 - X 2 2
X1, X2 0
Answer:
Maximize Z = 3x1 + 2x2 + 0S1 + 0S2
Subject to
x 1 + x2+ S1= 4
x1 x2 + s2= 2
x1 0, x2 0, s1 0, s2 0

Z= CB XB
= 0 *4 + 0 * 2 = 0
j = Zj Cj
= CB Xj Cj
1 = CB X1 Cj = 0 * 1 + 0 * 1 3 = -3
2 = CB X2 Cj = 0 * 1 + 0 * -1 2 = -2
3 = CB X3 Cj = 0 * 1 + 0 * 0 0 = 0
4 = CB X4 Cj = 0 * 0 + 0 * 1 0 = 0

aabasoft college OF MANAGEMENT OF TECHNOLOGY (03378)

Since all j 0, optimal basic feasible solution is obtained.

Therefore the solution is Max Z = 11, X1 = 3, X2 = 2.
Q4. Explain the procedure of MODI method of finding solution through optimality
test.
The MODI (modified distribution) method allows us to compute improvement indices quickly
for each unused square without drawing all of the closed paths. Because of this, it can often
provide considerable time savings over other methods for solving transportation problems.
MODI provides a new means of finding the unused route with the largest negative
improvement index. Once the largest index is identified, we are required to trace only one
closed path. This path helps determine the maximum number of units that can be shipped
via the best unused route.
STEPS
1.Construct a transportation table with the given cost of transportation and rim requirement.
2.Determine IBFS.
3.For current basic feasible solution check degeneracy and non-degeneracy.
4.Find occupied matrix.
5.Find unoccupied matrix.
6.Find opportunity cost of unoccupied cells using formula:

aabasoft college OF MANAGEMENT OF TECHNOLOGY (03378)

opportunity cost = actual cost-implied cost

dij= cij - (ri+kj)
7.Unoccupied cell evaluation:
(a) if dij>0 then cost of transportation unchanged.
(b) if dij=0 then cost of transportation unchanged.
(c) if dij<0 then improved solution can be obtain and go to next step. closed path for the
occupied cells determined in step
8.Select an unoccupied cell with largest ve opportunity cost among all unoccupied cell.
9.Construct closed path for the occupied cells determined in step 8.
10.Assign as many as units as possible to the unoccupied cell satisfying rim conditions.
11.Go to step 4 and repeat procedure until All dij>=0 i.e reached to the optimal solution
Q5. a. Explain the steps in Hungarian method.
Answer:
Hungarian method algorithm is based on the concept of opportunity cost and is more
efficient in solving assignment problems. Adopt the following steps mentioned below to solve
an AP using the Hungarian method algorithm:
Step 1: Prepare row ruled matrix by selecting the minimum values for each row and subtract
it from other elements of the row.
Step 2: Prepare column reduced matrix by subtracting minimum value of the column from
the other values of that column.
Step 3: Assign zero row-wise if there is only one zero in the row and cross (cancel) (X) other
zeros in that column.
Step 4: Assign column wise if there is only one zero in that column and cross other zeros in
that row.
Step 5: Repeat steps 3 and 4 till all zeros are either assigned or crossed. If the number of
assignments is equal to number of rows present, you have arrived at an optimal solution, if
not, then proceed to step 6.
Step 6: Mark (P) the unassigned rows. Look for crossed zero in that row. Mark the column
containing the crossed zero. Look for assigned zero in that column. Mark the row containing
assigned zero. Repeat this process till all makings are over.
Step 7: Draw straight line through unmarked rows and marked column. The number of
straight line drawn will be equal to number of assignments made.
Step 8: Examine the uncovered elements. Select the minimum.
a) Subtract it from uncovered elements.
b) Add it at the point of intersection of lines.
c) Leave the rest as it is.
d) Prepare a new table.
Step 9: Repeat steps 3 to 7 till optimum assignment is obtained.
Step 10: Repeat steps 5 to 7 till number of allocations = number of rows.
b. Solve the following assignment problem.
Machine

Operators
1

60

50

45

45

40

45

55

35

55

70

60

50

45

45

40

45

aabasoft college OF MANAGEMENT OF TECHNOLOGY (03378)

Answer :
Row operation:
Machine

Operators
1

15

10

20

20

10

Column operation:
Machine

Operators
1

10

20

15

10

Since no of assignment is 4:
Therefore the optimum assignment schedule is A to 3 45 B to 4 35 C to 1 55 D to 2
45, Total 180
Q6. a. Explain the steps involved in Vogels approximation method (VAM) of solving
Transportation Problem.
Answer:
Vogels approximation method tackles the problem of finding a good initial solution by taking
into account the costs associated with each route alternative.
The steps of the method are given below.
Step 1:
For each row of the transportation table, identify the smallest and the next to smallest costs.
Determine the difference between them for each row. Display them alongside the
transportation table by enclosing them in parenthesis against the respective rows. Similarly,
compute the differences for each column.
Step 2:
Identify the row or column with the largest difference among all the rows and columns. If a tie
occurs, use any arbitrary tie breaking choice. Let the greatest difference correspond to the i th
row and let Cij be the smallest cost in the ith row.

aabasoft college OF MANAGEMENT OF TECHNOLOGY (03378)

Allocate the maximum feasible amount,

xij = min (ai, b j) in the (i, j)th cell and cross off the ith row or the jth column in the usual manner.
Step 3:
Recompute the column and row differences for the reduced transportation table and go to
step 2. Repeat the procedure until all the requirements are satisfied.
b. Solve the following transportation problem using Vogels approximation method.
Distribution Centres

Factories

Supply

C1

C2

C3

C4

F1

50

F2

60

F3

25

Requirements

60

40

20

15

Answer:
Factories
F1

C1
3 (10)

C3
7

C4
6

Supply
50

10

10

10

7(25)

C2
2(40
)
5

F2

2(20)

3(15)

60

60

40

15

F3

2(25)

25

25

25

25

Requirement
s

60

40

20

15

50
25
25

40
40
40

20
20
20

15
15
15

Total Minimum Cost = 40 2 + 20 2 + 10 3 + 25 2 + 25 7 + 15 3 = 420

aabasoft college OF MANAGEMENT OF TECHNOLOGY (03378)