Unit-4

1. Introduce the Liner Programing.

Ans. linear programming, mathematical modelling technique in which a linear

function is maximized or minimized when subjected to various constraints. 
Linear programming is a method to achieve the best outcome in a mathematical
model 
 Components of Linear Programming:-

The normal components of Linear Programming are pointed out below:

 Decision Variables
 Constraints
 Data
 Objective Functions

 Characteristics of Linear Programming:-

Given below are the five characteristics of linear programming problem:

 Constraints- The limitations should be put up in the mathematical form,
regarding the given resource.
 Objective Function- In a problem, the objective function should be mentioned
in a quantitative way.
 Linearity- The relationship between two or more variables in the function
should be linear. 
 Finiteness-  There always should be finite and infinite input and output
numbers. If the function has infinite factors, the optimal solution will not be
feasible. 
 Non-Negativity- The value of the variable should be positive or zero. It should
not be negative.

 Different Types of Linear Programming

The different types of linear programming are as follows:
1. Solving linear programming by Simplex method
2. Solving linear programming using R
3. Solving linear programming by graphical method
1. Linear Programming Method (Simplex)

The simplex method is one of the most popular methods to solve linear programming
problems. It is an iterative process to get the feasible optimal solution. In this
method, the value of the basic variable keeps transforming to obtain the maximum
value for the objective function.

2. Graphical Method

The graphical method is used to optimize the two-variable linear programming. If the
problem has two decision variables, a graphical method is the best method to find
the optimal solution. In this method, the set of inequalities are subjected to
constraints. Then the inequalities are plotted in the XY plane. Once, all the
inequalities are plotted in the XY graph, the intersecting region will help to decide the
feasible region. The feasible region will provide the optimal solution as well as
explains what all values our model can take.

2. What is the meaning of two variable LPP Model.

 Ans. In a linear program, the variables are a set of quantities to be determined
for solving the problem.
 The Duality in Linear Programming states that every linear programming problem
has another linear programming problem related to it and thus can be derived
from it.
 The original linear programming problem is called “Primal,” while the derived
linear problem is called “Dual.”
 the primal, is a maximization problem and the other, the dual, is a minimization
problem.
 This type of variable is called two variable LPP Model.
 Which type of LPP can be solved using graphical method?
 Linear programming problems which involve only two variables can be solved by
graphical method.

3. Why Linear Programing is application in Operation Management?

 Linear programming (LP) is a mathematical modelling technique used in
operations management to determine optimal solutions and make decision of
problems.
 It is also a technique that organizations can use to achieve profit by reducing the
costs of any price.
 There are two functions that are used in linear programming, namely, the objective
and restraint functions.
 With the help of linear programming, manufacturers can manage their capabilities in
terms of production volumes and determine the optimum workload that would yield
maximum profitability and effectiveness.
 The method is used for determining the optimum level of service for a determined
problem.
 Many decisions faced by an operations manager are centred around the best
way to achieve the objectives of the firm subject to the constraints of the
operating environment. These constraints can be limited resources, such as time,
labour, energy, materials, or money.
 The decision-making based on linear modelling can influence the number of products
being manufactured for the purpose of maximizing profit on the basis of optimizing
the use of raw materials as well as times needs for their processing.
 manufacturing requires the transformation of raw materials into specific products
intended for maximizing their revenue. each step of the manufacturing process must
work as efficiently and effectively as possible.
 when dealing with raw materials, manufacturers pass them through different
machines in an assembly line linear programming operations management is
required.

4. What is the Simplex Method explain in your words?

Ans. Introduction
The Simplex method is an approach to solving linear programming models by hand
using slack variables, tableaus, and pivot variables as a means to finding the optimal
solution of an optimization problem. A linear program is a method of achieving the
best outcome given a maximum or minimum equation with linear constraints. Most
linear programs can be solved using an online solver such as MatLab, but the
Simplex method is a technique for solving linear programs by hand. To solve a
linear programming model using the Simplex method the following steps are
necessary:
● Standard form
● Introducing slack variables
● Creating the tableau
● Pivot variables
● Creating a new tableau
● Checking for optimality
● Identify optimal values

This document breaks down the Simplex method into the above steps and follows
the example linear programming model shown below throughout the entire document
to find the optimal solution.
Step 1: Standard Form
Step 2: Determine Slack Variables
Step 3: Setting up the Tableau
Step 4: Check Optimality
Step 5: Identify Pivot Variable
Step 6: Create the New Tableau
Step 7: Check Optimality
Step 8: Identify New Pivot Variable
Step 9: Create New Tableau
Step 10: Check Optimality
Step 11: Identify Optimal Values

The Simplex method is an approach for determining the optimal value of a linear
program by hand. The method produces an optimal solution to satisfy the given
constraints and produce a maximum zeta value.
Unit-5
1. Explain the primal dual relationship in detail.
Ans.
 One part of a Linear Programming Problem (LPP) is called the Primal and the
other part is called the Dual In other words, each maximization problem in LP has
its corresponding problem, called the dual, which is a minimization problem.
 Similarly, each minimization problem has its corresponding dual, a maximization
problem.

 if the primal is concerned with maximizing the contribution from the three
products A, B, and C and from the three departments X, Y, and Z, then the dual
will be concerned with minimizing the costs associated with the time used in the
three departments to produce those three products.

 An optimal solution from the primal and the dual problem would be same as they
both originate from the same set of data.

 There are a number of relationships between primal and dual, depending upon
whether the primal problem is a maximization or a minimization problem and
upon the types of constraints and restrictions on the variables.

Primal Dual Relationship

 The number of constraints in the primal problem is equal to the number of dual
variables, and vice versa.
 If the primal problem is a maximization problem, then the dual problem is
a minimization problem and vice versa.
 If the primal problem has greater than or equal to type constraints, then the dual
problem has less than or equal to type constraints and vice versa.
 The profit coefficients of the primal problem appear on the right-hand side of the
dual problem.
 The rows in the primal become columns in the dual and vice versa.

2. According to you how Economic Interpretation of dual variable can be

applicable?
Ans. Economic interpretation of the dual LP

• Suppose an entrepreneur wants to purchase all of Fulkerson’s resources (lumber,

finishing, carpentry)
• What prices should she offer for the resources that will entice Fulkerson to sell?

• Define decision variables:

y1 = price of 1 sq. ft. lumber

y2 = price of 1 hour of finishing
y3 = price of 1 hour of carpentry

• To buy all of Fulkerson’s resources, entrepreneur pays:

• Entrepreneur wants to minimize costs
• Entrepreneur needs to offer resource prices that will entice Fulkerson to sell

• One desk uses

– 8 sq. ft. of lumber
– 3 hours of finishing
– 2 hours of carpentry
– One desk has profit of $60
⇒Entrepreneur should pay at least $60 for this combination of resources

• One table uses

– 6 sq. ft. of lumber
– 2 hours of finishing
– 2 hours of carpentry
– One table has profit of $30
⇒Entrepreneur should pay at least $30 for this combination of resources

• One table uses

– 2 sq. ft. of lumber
– 1 hours of finishing
– 2 hours of carpentry
– One table has profit of $20

⇒Entrepreneur should pay at least $20 for this combination of resources

• Increasing the availability of the resources potentially increases the maximum
profits Fulkerson can achieve

⇒Entrepreneur should pay nonnegative amounts for each resource:

• Putting this all together, we get:
min 48y1 + 20y2 + 8y3
s.t. 8y1 + 3y2 + 2y3 ≥ 60 (x1 : desks)
6y1 + 2y2 + 2y3 ≥ 30 (x2: tables)
2y1 + y2 + y3 ≥ 20 (x3: chairs)
y1 , y2, y3 ≥ 0
• this is the dual of Fulkerson’s LP!

• Strong duality
– maximum revenue from selling furniture = minimum cost of purchasing resources
⇒ equilibrium between market for furniture and market for resources
• this kind of economic interpretation is trickier for LPs with different types of
constraints and variable bound

Complementary slackness
• Optimal solution to Fulkerson’s LP: x1 = 4, x2 = 0, x3 = 0

• Resources used: lumber: 32 < 48, finishing: 12 < 20, carpentry: 8 = 8

Primal complementary slackness: either

– the primal optimal solution makes a main inequality constraint active, or
– the corresponding dual variable has optimal value = 0
• Same logic applies to the dual
• Dual constraints ⇔ Primal decision variables

• Dual complementary slackness: either

– primal decision variable has optimal value = 0, or
– the corresponding dual constraint is active in a dual optimal solution

OR(Theory)

The optimal solution to a linear model determines the optimal resource allocation to
maximize revenue, when resources are limited.
In this section we will see that the optimal solution to the dual model gives us useful
information about the convenience of changing the amount of resources available
(the right-hand-side of the constraints).
We now introduce the concept of shadow price, which helps to make interesting
economic interpretations.

3. Write short note on Queuing Theory

Queuing theory is an area of mathematics that analyses and models the act of
queueing. It is essentially the study of how people act when they have to wait in line
to make a purchase or receive a service, as well as How queue structure moves
people through lines the most efficiently, and how many people can a specific
queuing arrangement process through the line in a particular time frame.

The queuing models have two aspects at its core.

 The customer, job, or request are all terms used to describe someone or
something who demands a service.
 The server refers to the person or thing that completes or provides the
services.

Queuing theory is primarily a tool for calculating costs. Most firms would find it
excessively expensive, or symptomatic of a lack of customers, to run in such a way
that none of their customers or clients ever had to wait in line.
To give a simple example, a movie theatre would need to add fifty to one hundred
ticket booths to avoid the situation of people needing to wait in line to purchase a
movie ticket. The theatre, on the other hand, could clearly not afford to compensate
a hundred ticket salespeople. As a result, businesses employ queuing theory
information to set up their operational operations in order to strike a balance between
the cost of supplying clients and the difficulty caused by having to wait in line.

Queuing theory problems are commonly divided into four groups in studies on the
subject:
 Arrival: The procedure for getting customers to the front of the line or a
queue.
 Queue: That is, the character or operation of the queue itself. How does the
line advance?
 Service: The process of providing a customer with the service they have
requested. For example, when being seated and then served in a restaurant,
the restaurant must consider the dynamics of two independent queues: the
line of people waiting to be seated and the line of people who have already
been seated and are waiting to be served. The latter can be divided into two
lines: the line to have your order taken and the line to have your food
delivered to your table.
 Leaving: The act of departing from a queue position. Businesses that provide
a drive-through service, for example, must consider how customers exiting the
drive-through may affect customers entering the parking lot.

Applications of Queuing Theory

Queuing theory finds its application in various sectors. Few are listed below:
 Telecommunications
 Transportation
 Logistics
 Finance
 Emergency services
 Computing
 Industrial engineering
 Project management

4. Why Queuing Theory is Important in Corporate?

 Waiting in line is a common occurrence in everyday life because it serves

various key functions as a process. When there are limited resources, queues
 are a fair and necessary manner of dealing with the flow of clients. If there
isn't a queuing process in place to deal with overcapacity, bad things happen.
 For example, if a website has too many visitors, it will slow down and fail if it
does not include a mechanism to adjust the speed at which requests are
processed or a mechanism to queue visitors. Consider planes waiting to land
on a runway. When there are too many planes to land at once, the lack of a
queue has actual safety issues when jets try to land at the same time.
 Queuing theory is Important in Corporate because it helps to describe queue
characteristics such as average wait time and gives tools for queue
optimization. 
 Queuing theory provides the design of efficient and cost-effective workflow
systems from a commercial standpoint.

Queueing theory can help your business reduce costs, drive up efficiency, and
provide better service for your customers.

Specifically, queueing theory can help take the guesswork out of the decision-
making process in multiple areas of your business:

 Product development: Queueing theory can help you accurately forecast lead

time on new product orders by calculating the total time spent on each phase in
the production process (including the ordering of raw materials).
For manufacturing businesses, queueing theory can also be used to determine
the most efficient use of floor space and equipment.

 Supply chain management: Applying queueing theory to your supply chain

management can help you pinpoint bottlenecks in your shipping and
warehousing.
-Once you know where those hang-ups are, you can implement solutions that
speed up your fulfilment time, reduce storage space, and lower costs associated
with shipping and storing your product.

 Inventory management: Queueing theory can help you forecast customer

demand, which in turn helps you determine how much stock to keep on hand at
any given time.
-Queueing theory can also help you when considering the best inventory
management techniques for your business(e.g. first in,first out vs. last in,first out).

 Customer service: You can use queueing theory to determine the best balance
of on-the-clock employees, equipment (like cash registers), and queueing
methods (like multiple lines or windows) that keeps your customers happy while
minimizing costs.

5. How Queuing is used in supply chain management?

A company may operate in different manufacturing environments such as make-to-

stock, make-to-order, or manufacture-to-order.
 In a make-to-stock system, the company reduces the time to fill customer orders
by holding inventory. its has advantage but holding of inventory also increases
the costs and also other problems may occurs with keeping stock.

 If the company operates on a make-to-order basis, no inventory is held and a

customer order triggers the manufacturing process. the delay in filling the
customer orders is larger process than make-to-stock system and it also
consume much time to full fill customer order.

 manufacture-to-order is a hybrid manufacturing strategy, in which the inventories

for parts and semi-finished products. however, the final products are
manufactured after receiving the customer orders.

Compared with the other two systems, a manufacture-to-order system leads to lower
holding costs than a make-to-stock system and shorter lead times than a make-to-
order system.
Backorders are allowed in the system and the capacity of the backlog queue at each
supplier is infinite.
To handle the queue at every stage of supply chain management Queuing is
required.
The aim is to model the supply chain as a queuing system and to obtain the
performance measures.
which are the average of outstanding backorders and the average inventory level of
the suppliers, the average number of semi-finished products in the manufacturer’s
system.
After obtain those data queuing of pending order, finished products, inventory stock
in supply chain is easy to handle.