Question 1

Explain the types of Operations Research Models.

Operations Research.

Briefly explain the phases of

Answer
Operations research
Churchman, Aackoff, and Aruoff defined operations research as the application of scientific
methods, techniques and tools to the operation of a system with optimum solutions to the
problems where 'optimum' refers to the best possible alternative.
Also operations research can be defined as The use of scientific methods to provide criteria
for decisions regarding man, machine, and systems involving repetitive operations.
Phases of Operations Research
The scientific method in OR study generally involves three phases. Figure depicts the three
phases of OR.

Judgment phase
This phase includes the following activities:
Determination of the operations
Establishment of objectives and values related to the operations
Determination of suitable measures of effectiveness
Formulation of problems relative to the objectives
Research phase
This phase utilises the following methodologies:
Operation and data collection for a better understanding of the problems
Formulation of hypothesis and model
Observation and experimentation to test the hypothesis on the basis of additional
data
Analysis of the available information and verification of the hypothesis using preestablished measure of effectiveness
Prediction of various results and consideration of alternative methods
Action phase
This phase involves making recommendations for the decision process. The
recommendations can be made by those who identify and present the problem or by anyone
who influences the operation in which the problem has occurred.

Types of Operations Research Models

A model is an idealised representation or abstraction of a real-life system. The objective of a
model is to identify significant factors that affect the real life system and their
interrelationships. A model aids the decision-making process as it provides a simplified
description of complexities and uncertainties of a problem in a logical structure. The most
significant advantage of a model is that it does not interfere with the real-life system.
Classification of OR models

Physical models
These models include all forms of diagrams, graphs, and charts. They are designed to tackle
specific problems. They bring out significant factors and interrelationships in pictorial form to
facilitate analysis. There are two types of physical models. They are:
Iconic models
Analogue models
Iconic models are primarily images of objects or systems, represented on a smaller scale.
These models can simulate the actual performance of a product.
Analogue models are small physical systems having characteristics similar to the objects
they represent, such as toys.
Mathematical or symbolic models
These models employ a set of mathematical symbols to represent the decision variable of
the system. The variables are related by mathematical systems.
By nature of environment
These models can be further classified as follows:
Deterministic models - These are the models in which everything is defined and the
results are certain, such as an EOQ model.
Probabilistic models - These are the models in which the input and output
variables follow a defined probability distribution, such as the games theory.
By the extent of generality: These models can be further classified as follows
General models These are the models which you can apply in general to any
problem. For example, linear programming.

Specific models - These are the models that you can apply only under specific
conditions. For example, you can use the sales response curve or equation as a
function in the marketing function.
Question-2
a. Explain the graphical method of solving Linear Programming Problem.
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
Linear Programming Problem
Linear Programming (LP) is a mathematical technique designed to help managers in their
planning and decision-making. It is usually used in an organisation that is trying to make the
most effective use of its resources. Resources typically include machinery, manpower,
money, time, warehouse space, and raw materials.
Graphical Methods to Solve LPP
Working rule
The method of solving an LPP on the basis of the above analysis is known as the graphical
method. The working rule for the method is as follows.
Step 1: Formulate the problem in terms of a series of mathematical equations representing
objective function and constraints of LPP.
Step 2: Plot each of the constraints equation graphically. Replace the inequality constraint
equation to form a linear equation. Plot the equations on the planar graph with each axis
representing respective variables.
Step 3: Identify the convex polygon region relevant to the problem. The area which satisfies
all the constraints simultaneously will be the feasible region. This is determined by the
inequality constraints.
Step 4: Determine the vertices of the polygon and find the values of the given objective
function Z at each of these vertices. Identify the greatest and the least of these values.
These are respectively the maximum and minimum value of Z.
Step 5: Identify the values of (x1, x2) which correspond to the desired extreme value of Z.
This is an optimal solution of the problem.

Question -3
a. Explain how to solve the degeneracy in transportation problems.
b. Explain the procedure of MODI method of finding solution through optimality test.
Answer
a. Degeneracy in transportation problem
A basic solution to an m-origin, n destination transportation problem can have at the most
m+n-1 positive basic variables (non-zero), otherwise the basic solution degenerates. It
follows that whenever the number of basic cells is less than m + n 1, the transportation
problem is a degenerate one.
The degeneracy can develop in two ways:
Case 1
The degeneracy develops while determining an initial assignment via any one of the initial
assignment methods. To resolve degeneracy, augment the positive variables by as many
zero-valued variables as is necessary to complete the required m + n 1 basic variable.
These zero-valued variables are selected in such a manner that the resulting m + n 1
variable constitutes a basic solution.
The selected zero valued variables are designated by allocating an extremely small positive
value to each one of them. The cells containing these extremely small allocations are then
treated like any other basic cells. The s are kept in the transportation table until temporary
degeneracy is removed or until the optimum solution is attained, whichever occurs first. At
that point, we set each = 0.
Case 2
The degeneracy develops at the iteration stage. This happens when the selection of the
entering variable results in the simultaneous drive to zero of two or more current (preiteration) basic variables.
To resolve degeneracy, the positive variables are augmented by as many zero-valued
variables as it is necessary to complete m+n-1 basic variables. These zero-valued variables
are selected from among those current basic variables, which are simultaneously driven to
zero. The rest of the procedure is exactly the same as discussed in case 1.
The extremely small value is infinitely small and it never affects the value it is added to or
subtracted from. Introduce in unallocated minimum cost cell to avoid forming a loop

b) Transportation Algorithm (MODI Method)

A feasible solution has to be found always. Rather than determining a first approximation by
a direct application of the simplex method, it is more efficient to work with the transportation
table.
The transportation algorithm is the simplex method specialised to the format of table
involving the following steps:
i) Finding an initial basic feasible solution
ii) Testing the solution for optimality
iii) Improving the solution, when it is not optimal
iv) Repeating steps (ii) and (iii) until the optimal solution is obtained
The solution to transportation problem is obtained in two stages In the first stage,find the
basic feasible solution using any of the following methods:
North-west corner rule
Matrix minima method or least cost method
Vogels approximation method.
In the second stage, test the basic feasible solution for its optimality by MODI method.
After evaluating an initial basic feasible solution to a transportation problem, the next
question is how to get the optimum solution.
The basic techniques are illustrated as follows:
Step 1 Determine the net evaluations for the nonbasic variables (empty cells)
Step 2 Determine the entering variable
Step 3 Determine the leaving variable
Step 4 Compute a better basic feasible solution
Step 5 Repeat steps (1) to (4) until an optimum solution has been obtained
Modified distribution method/MODI method/UV method

Question-4
a. Explain the steps involved in Hungarian method of solving Assignment problems.
b. What do you mean by unbalanced assignment problem? How do you overcome it?
Answer
a. Hungarian Method Algorithm
Hungarian method algorithm is based on the concept of opportunity cost and is more
efficient in solving assignment problems. The following steps are adopted 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 the 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 (X) or cancel
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, proceed to step 6.
Step 6: Mark
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 the makings are done.
Step 7: Draw a straight line through unmarked rows and marked column. The number of
straight line drawn will be equal to the number of assignments made.
Step 8: Examine the uncovered elements. Select the minimum.
Subtract it from the uncovered elements.
Add it at the point of intersection of lines
Leave the rest as is.
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.

The assignment algorithm applies the concept of opportunity costs. The cost of any kind of
action or decision consists of the opportunities that are sacrificed in taking that action.

b. Unbalanced Assignment problem

Unbalanced assignment problem is an assignment where the number of rows is not equal to
the number of columns and vice versa. For example, the number of machines may be more
than the number of jobs or the number of jobs may be more than the number of machines. In
such a situation, you have to introduce dummy rows or columns in the matrix. The dummy
rows or columns will contain all cost elements as zero. This balances the problem and then
you can use Hungarian method to find the optimal assignment.
Unbalanced assignment problem: No. of rows No. of columns.

Question-5
a. Write a short note on Monte Carlo Simulation.
b. A Company produces 150 cars. But the production rate varies with the distribution.

At present the track will hold 150 cars. Using the following random numbers
determine the average number of cars waiting for shipment in the company and
average number of empty space in the truck. Random Numbers 82, 54, 50, 96, 85,
34,30, 02, 64, 47.
Answer
Monte-Carlo Simulation
The Monte-Carlo method is a simulation technique in which statistical distribution functions
are created by using a series of random numbers. This approach has the ability to develop
many months or years of data in a matter of few minutes on a digital computer.
The method is generally used to solve the problems that cannot be adequately represented
by mathematical models or where solution of the model is not possible by analytical method.
The Monte-Carlo simulation procedure can be summarised in the steps depicted in figure.

Step 1: Define the problem:

a) Identify the objectives of the problem.
b) Identify the main factors that have the greatest effect on the objectives of the problem.
Step 2: Construct an appropriate model:
a) Specify the variables and parameters of the model.
b) Formulate the appropriate decision rules, i.e., state the conditions under which the
experiment is to be performed.
c) Identity the type of distribution that will be used. Models use either theoretical distributions
or empirical distributions to state the patterns of occurrence associated with the variables.
d) Specify the manner in which time will change.
e) Define the relationship between the variables and parameters.
Step 3: Prepare the model for experimentation:
a) Define the starting conditions for the simulation.
b) Specify the number of runs of simulation to be made.
Step 4: Using steps 1 to 3, experiment with the model:
a) Define a coding system that will correlate the factors defined in step 1 with the random
numbers to be generated for the simulation.
b) Select a random number generator and create the random numbers to be used in the
simulation.
c) Associate the generated random numbers with the factors identified in step1 and coded in
step 4(a).
Step 5: Summarise and examine the results obtained in step 4.
Step 6: Evaluate the results of the simulation.
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Step 7: Formulate proposals for advice to management on the course of action to be

adopted and modify the model, if necessary

b. Table 1 depicts the production rate and probability

Table 1

Table 2 depicts the simulation worksheet.

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TABLE 2

Therefore, average number of Cars waiting = 7/10 =0.7/day

Average number of empty space = 3/10 = 0.3/day

Question-6
a. Explain the dominance principle in game theory.
b. Describe the Constituents of a Queuing System.
c. Differentiate between PERT and CPM
Answer
a. Dominance Principle in Game Theory

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b. Constituents of queuing system

The constituents of a queuing system include arrival pattern, service facility and queue
discipline.
Arrival pattern: It is the average rate at which the customers arrive.
The arrival of customers can be regular as in case of an appointment system of a doctor or
flow of components on a conveyor belt. The regular pattern of arrivals is neither very
common nor very easy to deal with mathematically. The following are the important arrival
characteristics:
1. Size of the population: Unlimited (infinite) or limited (finite)
2. Pattern of arrivals (statistical distribution)
3. Behaviour of arrivals
Service facility: Examining the number of customers served at a time and the statistical
pattern of time taken for service at the service facility.

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Components of queuing system

Queue discipline: The common method of choosing a customer for service amongst those
waiting for service is First Come First Serve.

C.Difference between PERT and CPM

There are no essential differences between PERT and CPM as both of them share in
common the determination of a critical path. Both are based on the network representation
of activities and their scheduling, which determines the most critical activities to be controlled
in order to meet the completion date of the project.
PERT
Some key points of PERT are as follows:
1. PERT was developed in connection with an Research and Development (R&D) work.
Therefore, it had to cope with the uncertainties that are associated with R&D activities. In
PERT, the total project duration is regarded as a random variable. Therefore, associated
probabilities are calculated in order to characterise it.
2. It is an event-oriented network as in the analysis of a network, emphasis is given on the
important stages of completion of a task rather than the activities required to be performed to
reach a particular event or task.
3. PERT is normally used for projects involving activities of non-repetitive nature in which
time estimates are uncertain
4. It helps in pinpointing critical areas in a project, so that necessary adjustment can be
made to meet the scheduled completion date of the project.
CPM
1. CPM was developed in connection with a construction project, which consisted of routine
tasks whose resource requirements and duration were known with certainty. Therefore, it is
basically deterministic.
2. CPM is suitable for establishing a trade-off for optimum balancing between schedule time
and cost of the project.
3. CPM is used for projects involving activities of repetitive nature.

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