1Q What is Linear Programming?

Linear programming is a technique that helps us to find the optimum solution

for a given problem, an optimum solution is a solution that is the best possible
outcome of a given particular problem. In simple terms, it is the method to find
out how to do something in the best possible way with given limited resources
you need to do the optimum utilization of resources to achieve the best
possible result in a particular objective. such as least cost, highest margin, or
least time.

Linear Programming Definition = Linear programming is the technique

used for optimizing a particular scenario. Using linear programming provides
us with the best possible outcome in a given situation. It uses all the available
resources in a manner such that they produce the optimum result.

Components of Linear Programming

A linear programming problem has two basic parts:
• First Part: It is the objective function that describes the primary
purpose of the formation to maximize some return or to minimize
some.
• Second Part: It is a constant set, It is the system of equalities or
inequalities that describe the condition or constraints of the restriction
under which Optimisation is to be accomplished.

Types of Linear Programming Problems

Basically, there are many different linear programming problems but we will
deal with three major linear programming problems in this article.

Manufacturing Problems
Manufacturing problems are a problem that deals with the number of units
that should be produced or sold in order to maximize profits when each
product requires fixed manpower, machine hours, and raw materials.
Diet Problems
It is used to calculate the number of different kinds of constituents to be
included in the diet in order to get the minimum cost, subject to the availability
of food and their prices.

Linear Programming Formula

A linear programming problem consists of,
• Decision variables
• Objective function
• Constraints
• Non-Negative restrictions
Decision variables are the variables x, and y, which decide the output of the
linear programming problem and represent the final solution.
The objective function, generally represented by Z, is the linear function that
needs to be optimized according to the given condition to get the final
solution.
The restrictions imposed on decision variables that limit their values are called
constraints.
Now, the general formula of a linear programming problem is,
Objective Function: Z = ax + by
Constraints: cx + dy ≥ e, px + qy ≤ r
Non-Negative restrictions: x ≥ 0, y ≥ 0
In the above condition x, and y are the decision variables.
It is used to determine the transportation schedule to find the cheapest way of
transporting a product from plants /factories situated at different locations to
different markets.
Linear Programming Methods
We use various methods for solving linear programming problems. The two
most common methods used are,
• Simplex Method
• Graphical Method
Linear Programming Simplex Method
One of the most common methods to solve the linear programming problem is
the simplex method. In this method, we repeat a specific condition ‘n’ number of
times until an optimum solution is achieved.
The steps required to solve linear programming problems using the simplex
method are,
Step 1: Formulate the linear programming problems based on the given
constraints.
Step 2: Convert all the given inequalities to equations or equalities of the linear
programming problems by adding the slack variable to each inequality where
ever required.
Step 3: Construct the initial simplex table. By representing each constraint
equation in a row and writing the objective function at the bottom row. The
table so obtained is called the Simplex table.
Step 4: Identify the greatest negative entry in the bottom row the column of the
element with the highest negative entry is called the pivot column
Step 5: Divide the entries of the right-most column with the entries of the
respective pivot column, excluding the entries of the bottommost row. Now the
row containing the least entry is called the pivot row. The pivot element is
obtained by the intersection of the pivot row and the pivot column.
Step 6: Using matrix operation and with the help of the pivot element make all
the entries in the pivot column to be zero.
Step 7: Check for the non-negative entries in the bottommost row if there are
no negative entries in the bottom row, end the process else start the process
again from step 4.
Step 8: The final simplex table so obtained gives the solution to our problem.

Linear Programming Graphical Method

Graphical Method is another method than the Simplex method which is used to
solve linear programming problems. As the name suggests this method uses
graphs to solve the given linear programming problems. This is the best method
to solve linear programming problems and requires less effort than the simplex
method.
While using this method we plot all the inequalities that are subjected to
constraints in the given linear programming problems. As soon as all the
inequalities of the given LPP are plotted in the XY graph the common region of
all the inequalities gives the optimum solution. All the corner points of the
feasible region are calculated and the value of the objective function at all those
points is calculated then comparing these values we get the optimum solution
of the LPP.
Example: Find the maximal and minimal value of z = 6x + 9y when the
constraint conditions are,
• 2x + 3y ≤ 12
• x and y ≥ 0
• x+y≤5
Solution:
Step 1: First convert the inequations into normal equations. Hence the equations
will be 2x+3y = 0, x = 0, y = 0 and x + y = 5.
Step 2: Find the points at which 2x + 3y and x + y = 5 cut the x-axis and y-axis.
To find the point of intersection of the x-axis put y = 0 in the respective equation
and find the point. Similarly for y-axis intersection points put x = 0 in the
respective equation.
Step 3: Draw the two lines cutting the x-axis and y-axis. We find that the two
axes cut each other at (3,2).
Step 4: For x ≥ 0 and y ≥ 0, we find that both inequations are followed. Hence
the region will include an area region enclosed by two axes and both lines
including the origin. The plotted region is shown below in the figure.
Step 5: Find Z for each point and maxima and minima.

Coordinates Z = 6x + 9y

(0,5) Z = 45

(0,4) Z = 36

(5,0) Z = 30

(6,0) Z = 36
Coordinates Z = 6x + 9y

(3,2) Z = 36

Hence, we find that Z = 6x + 9y is maximum at (0,5) and minimum at (5,0).

3rd Question
Meaning of Assignment Problem:
An assignment problem is a particular case of transportation
problem where the objective is to assign a number of resources to
an equal number of activities so as to minimise total cost or
maximize total profit of allocation.

The problem of assignment arises because available resources

such as men, machines etc. have varying degrees of efficiency for
performing different activities, therefore, cost, profit or loss of
performing the different activities is different.

Thus, the problem is “How should the assignments be made so as

to optimize the given objective”. Some of the problem where the
assignment technique may be useful are assignment of workers to
machines, salesman to different sales areas.
Definition of Assignment Problem:
Suppose there are n jobs to be performed and n persons are
available for doing these jobs. Assume that each person can do
each job at a term, though with varying degree of efficiency, let
cij be the cost if the i-th person is assigned to the j-th job. The
problem is to find an assignment (which job should be assigned to
which person one on-one basis) So that the total cost of
performing all jobs is minimum, problem of this kind are known as
assignment problem.

Mathematical Formulation of the Assignment Problem:

Hungarian Method for Solving Assignment Problem:

The Hungarian method of assignment provides us with an efficient
method of finding the optimal solution without having to make a-
direct comparison of every solution. It works on the principle of
reducing the given cost matrix to a matrix of opportunity costs.

Opportunity cost show the relative penalties associated with

assigning resources to an activity as opposed to making the best or
least cost assignment. If we can reduce the cost matrix to the
extent of having at least one zero in each row and column, it will
be possible to make optimal assignment.

The Hungarian method can be summarized in the following

steps:

Step 1: Develop the Cost Table from the given Problem:

If the no of rows are not equal to the no of columns and vice versa,
a dummy row or dummy column must be added. The assignment
cost for dummy cells are always zero.

Step 2: Find the Opportunity Cost Table:

(a) Locate the smallest element in each row of the given cost table
and then subtract that from each element of that row, and

(b) In the reduced matrix obtained from 2 (a) locate the smallest
element in each column and then subtract that from each element.
Each row and column now have at least one zero value.

Step 3: Make Assignment in the Opportunity Cost Matrix:

(a) Examine rows successively until a row with exactly one

unmarked zero is obtained. Make an assignment single zero by
making a square around it.

(b) For each zero value that becomes assigned, eliminate (Strike
off) all other zeros in the same row and/ or column

(c) Repeat step 3 (a) and 3 (b) for each column also with exactly
single zero value all that has not been assigned.
(d) If a row and/or column has two or more unmarked zeros and
one cannot be chosen by inspection, then choose the assigned zero
cell arbitrarily.

(e) Continue this process until all zeros in row column are either
enclosed (Assigned) or struck off (x)

Step 4: Optimality Criterion:

If the member of assigned cells is equal to the numbers of rows

column then it is optimal solution. The total cost associated with
this solution is obtained by adding original cost figures in the
occupied cells.

If a zero cell was chosen arbitrarily in step (3), there exists an

alternative optimal solution. But if no optimal solution is found,
then go to step (5).

Step 5: Revise the Opportunity Cost Table:

Draw a set of horizontal and vertical lines to cover all the zeros
in the revised cost table obtained from step (3), by using the
following procedure:

(a) For each row in which no assignment was made, mark a tick (√)

(b) Examine the marked rows. If any zero occurs in those columns,
tick the respective rows that contain those assigned zeros.

(c) Repeat this process until no more rows or columns can be

marked.

(d) Draw a straight line through each marked column and each
unmarked row..
Step 6: Develop the New Revised Opportunity Cost Table:

(a) From among the cells not covered by any line, choose the
smallest element, call this value K

(b) Subtract K from every element in the cell not covered by line.

(c) Add K to very element in the cell covered by the two lines, i.e.,
intersection of two lines.

(d) Elements in cells covered by one line remain unchanged.

Step 7: Repeat Step 3 to 6 Unlit an Optimal Solution is

Obtained:

The flow chart of steps in the Hungarian method for solving an

assignment problem is shown in following figures:
Unbalanced Assignment Problem: = Any assignment problem
is said to be unbalanced if the cost matrix is not a square matrix,
i.e. the no of rows and the no of columns are not equal. To make it
balanced we add a dummy row or dummy column with all the
entries is zero.

Example 3:

There are four jobs to be assigned to the machines. Only one job
could be assigned to one machine are given in following matrix.
Find an optimum assignment of jobs to the machines to minimize
the total processing time and also find for which machine no job is
assigned. What is the total processing time to complete all the
jobs.

Solution:

Since the cost matrix is not a square matrix the problem is

unbalanced. We add a dummy job 5 with corresponding entries

zero. Modified matrix

Step 1 & 2:

We subtract the smallest element from all the elements in the

respective row and column.

Step 3 & 4:
Now we give the zero assignment in our usual manners & get the
following matrix.

Step 5:

In this step we draw minimum no. of lines to cover all zeros.

The no of lines to cover all zeros = 4 < the order of matrix. We

form the 2nd modified matrix by subtracting the smallest
uncovered element (i) from the remaining uncovered elements and
add to the element at the point of intersection of lines.

Step 6:

Again Repeat step (3) & (4) and find following matrix.

Here total no of assignment (= 5) which is equal to no of rows or

no of columns. Then this is optimal solution
The pattern of assignment is given below:

For machines E no job is assigned, optimum (minimum)

Cost = 10 + 3 + 6 + 1

= Rs.20

2Q Transportation problem
Transportation problem is a special kind of Linear Programming Problem
(LPP) in which goods are transported from a set of sources to a set of
destinations subject to the supply and demand of the sources and destination
respectively such that the total cost of transportation is minimized. It is also
sometimes called as Hitchcock problem.
Types of Transportation problems:
Balanced: When both supplies and demands are equal then the problem is
said to be a balanced transportation problem.
Unbalanced: When the supply and demand are not equal then it is said to be
an unbalanced transportation problem. In this type of problem, either a dummy
row or a dummy column is added according to the requirement to make it a
balanced problem. Then it can be solved similar to the balanced problem.
Types of Transportation Problems
Transportation problems are broadly classified into balanced and
unbalanced, depending on the source’s supply and the requirement at the
destination.
Balanced Transportation Problem

Unbalanced Transportation Problem

PHASES OF SOLUTION OF TRANSPORTATION PROBLEM•

Phase I- obtains the initial basic feasible solution

Phase II-obtains obtains the optimal optimal basic solution solution

Optimality condition: m+n-1 no of allocation

INITIAL BASIC FEASIBLE SOLUTION = The following methods are
to find the initial basic feasible solution for the transportation problems.

• North West Corner Rule (NWCR)

• Least Cost Method

• Vogle’s Approximation Method(VAM)

METHOD 1: NORTH-WEST CORNER RULE

Step 1: The first assignment is made in the cell occupying the upper left-
hand (north-west) corner of the transportation table. The maximum
possible amount is allocated there. That is, x11 = min {a1, b1}.

i. If min {a1, b1} = a1, then put x11= a1, decrease b1 by a1 and
move vertically to the 2 nd row (to the cell (2, 1)) and cross out
the first column. ii. If min {a , b } = b , then put x = b , decrease a
by b and move horizontally 13K.BHARATHI, Assistant Professor
of Mathematics, SCSVMV

ii. If min {a1, b1} = b1, then put x11= b1, decrease a1 by b1 and
move horizontally right (to the cell (1, 2)) and cross out the first
column.

iii. If min {a1, b1} = a1 = b1, then put x11= a1 = b1 and move
diagonally to the cell (2, 2) cross out the first row and the first
column.

Step 2: Repeat the procedure until all the rim requirements are satisfied.

METHOD 2: LEAST COST METHOD (OR) MATRIX MINIMA METHOD

(OR) LOWEST COST ENTRY METHOD
Step 1: Identify the cell with smallest cost and allocate xij = min {ai, bj}.

i. If min {ai, bj} = ai, then put x11= ai, cross out the i th row and
decrease bj by ai and go to step (2).

ii. If min {ai, bj} = bj, then put x11= bj, cross out the j th column and
decrease ai by bj, K.BHARATHI, Assistant Professor of
Mathematics, SCSVMV 14and go to step (2).

iii. If min {ai, bj} = ai = bj, then put x11 = ai = bj, cross out either ith
row or jth column but not both and go to step (2).

Step 2: Repeat step (1) for the resulting reduced transportation table
until all the rim requirements are satisfied.

METHOD 3: VOGEL’S APPROXIMATION METHOD (OR) UNIT COST

PENALTY METHOD

Step1: Find the difference (penalty) between the smallest and next
smallest costs in each row (column) and write them in brackets against
the corresponding row (column).

Step 2: Identify the row (or) column with largest penalty. If a tie occurs
break the tie arbitrarily. Choose the cell with smallest cost in that
selected row or column and allocate as much as possible to
K.BHARATHI, Assistant Professor of Mathematics, SCSVMV 15this cell
and cross out the satisfied row or column and go to step (3).

Step 3: Again compute the column and row penalties for the reduced
transportation table and then go to step (2). Repeat the procedure until
all the rim requirements are satisfied.

OPTIMAL BASIC SOLUTION - MODI METHOD - MODIFIED

DISTRIBUTION METHOD
Step 1: Find the initial basic feasible solution of the given problem by
Northwest Corner Rule (or) Least Cost Method (or) VAM.

Step 2: Check the number of occupied cells. If there are less than m + n
– 1, there exists degeneracy and we introduce a very small positive
assignment of in suitable independent positions, so that the number of
occupied cells is exactly equal to m + n – 1.

Step 3: Find the set values ui , vj (i = 1, 2, …m ; j = 1, 2, …n) from the

relation cij = ui + vjfor each occupied cell (i, j), by starting initially with ui
= 0 or vj = 0 preferably for which the corresponding row or column has
maximum number of individual allocations.

Step 4: Find ui + vj for each unoccupied cell (i, j) and enter at the upper
right corner of thecorresponding cell (i, j).

Step 5: Find the cell evaluations dij = cij – (ui + vj) for each unoccupied
cell (i, j) and enterat the upper left corner of the corresponding cell (i, j)

Step 6: Examine the cell evaluations dij for all unoccupied cells (i, j) and
concludethat,

•If all dij> 0, then the solution under the test is optimal and unique.

•If all dij> 0, with at least one dij = 0, then the solution under the test is
optimal and analternative optimal solution exists.

•If at least one dij< 0, then the solution is not optimal. Go to the next
step.

Step 7: Form a new BFS by giving maximum allocation to the cell for
whichdij is most negative by making an occupied cell empty. For that
draw a closed path consisting of horizontal and vertical lines beginning
and ending at the cell for which dij is most negative and having its
other corners at some allocated cells. Along this closed loop indicate
 +θ and –θ alternatively at the corners. Choose minimum of the
allocations from the cells K.BHARATHI, Assistant Professor of
Mathematics, SCSVMV 23and –θ alternatively at the corners. Choose
minimum of the allocations from the cell shaving –θ. Add this minimum
allocation to the cells with +θ and subtract this minimum allocation
from the allocation to the cells with –θ.

Step 8: Repeat steps (2) to (6) to test the optimality of this new basic
feasible solution.

Step 9: Continue the above procedure till an optimum solution is

attained.

PART =2

Q1 What Is Game Theory?

Game theory is a theoretical framework for conceiving social
situations among competing players. In some respects, game theory is the
science of strategy, or at least the optimal decision-making of independent
and competing actors in a strategic setting.

Game theory is used in various fields to lay out various situations and predict
their most likely outcomes. Businesses may use it, for example, to set prices,
decide whether to acquire another firm, and determine how to handle a
lawsuit.

Types of Game Theories

Cooperative vs. Non-Cooperative Games
Although there are many types of game theories, such as
symmetric/asymmetric, simultaneous/sequential, and so on, cooperative and
non-cooperative game theories are the most common. Cooperative game
theory deals with how coalitions, or cooperative groups, interact when only
the payoffs are known. It is a game between coalitions of players rather than
between individuals, and it questions how groups form and how they allocate
the payoff among players.
Non-cooperative game theory deals with how rational economic agents deal
with each other to achieve their own goals. The most common non-
cooperative game is the strategic game, in which only the available strategies
and the outcomes that result from a combination of choices are listed. A
simplistic example of a real-world non-cooperative game is rock-paper-
scissors.

Zero-Sum vs. Non-Zero Sum Games

When there is a direct conflict between multiple parties striving for the same
outcome, it is often called a zero-sum game. This means that for every
winner, there is a loser. Alternatively, it means that the collective net benefit
received is equal to the collective net benefit lost. Lots of sporting events are
a zero-sum game as one team wins and another team loses.

A non-zero-sum game is one in which all participants can win or lose at the
same time. Consider business partnerships that are mutually beneficial and
foster value for both entities. Instead of competing and attempting to "win,"
both parties benefit.

Simultaneous Move vs. Sequential Move Games

Many times in life, game theory presents itself in simultaneous move
situations. This means each participant must continually make decisions at
the same time their opponent is making decisions. As companies devise their
marketing, product development, and operational plans, competing
companies are also doing the same thing at the same time.

In some cases, there is an intentional staggering of decision-making steps,

enabling one party to see the other party's moves before making their own.
This is usually present in negotiations; one party lists their demands, then the
other party has a designated amount of time to respond and list their own.

One Shot vs. Repeated Games

Game theory can begin and end in a single instance. Like much of life, the
underlying competition starts, progresses, ends, and cannot be redone. This
is often the case with equity traders, who must wisely choose their entry point
and exit point as their decision may not easily be undone or retried.

On the other hand, some repeated games continue on and seamlessly never
end. These types of games often contain the same participants each time,
and each party has the knowledge of what occurred last time. For example,
consider rival companies trying to price their goods. Whenever one makes a
price adjustment, so may the other. This circular competition repeats itself
across product cycles or sale seasonality.

Two-person Game Theory

Games of perfect information
The simplest game of any real theoretical interest is a two-person
constant-sum game of perfect information. Examples of such games
include chess, checkers, and the Japanese game of go. In 1912 the German
mathematician Ernst Zermelo proved that such games are strictly
determined; by making use of all available information, the players can
deduce strategies that are optimal, which makes the outcome preordained
(strictly determined).
In chess, for example, exactly one of three outcomes must occur if the
players make optimal choices:
(1) White wins (has a strategy that wins against any strategy of Black);
(2) Black wins; or
(3) White and Black draw. In principle, a sufficiently
powerful supercomputer could determine which of the three outcomes
will occur. However, considering that there are some 1043 distinct 40-
move games of chess possible, there seems no possibility that such a
computer will be developed now or in the foreseeable future. Therefore,
while chess is of only minor interest in game theory, it is likely to remain a
game of enduring intellectual interest.
Games of imperfect information
A “saddlepoint” in a two-person constant-sum game is the outcome that
rational players would choose. (Its name derives from its being the minimum of
a row that is also the maximum of a column in a payoff matrix—to be illustrated
shortly—which corresponds to the shape of a saddle.) A saddlepoint always
exists in games of perfect information but may or may not exist in games of
imperfect information. By choosing a strategy associated with this outcome,
each player obtains an amount at least equal to his payoff at that outcome, no
matter what the other player does. This payoff is called the value of the game;
as in perfect-information games, it is preordained by the players’ choices of
strategies associated with the saddlepoint, making such games strictly
determined.

Mixed strategies and the minimax theorem

When saddlepoints exist, the optimal strategies and outcomes can be easily
determined, as was just illustrated. However, when there is no saddlepoint the
calculation is more elaborate, as illustrated in Table 2.

A guard is hired to protect two safes in separate locations: S1 contains $10,000

and S2 contains $100,000. The guard can protect only one safe at a time from a
safecracker.

In such a game, game theory does not indicate that any one particular strategy
is best. Instead, it prescribes that a strategy be chosen in accordance with
a probability distribution, which in this simple example is quite easy to calculate.
In larger and more complex games, finding this strategy involves solving a
problem in linear programming, which can be considerably more difficult.

Utility theory
In the previous example it was tacitly assumed that the players were
maximizing their average profits, but in practice players may consider other
factors. For example, few people would risk a sure gain of $1,000,000 for an
even chance of winning either $3,000,000 or $0, even though the expected
(average) gain from this bet is $1,500,000. In fact, many decisions that people
make, such as buying insurance policies, playing lotteries, and gambling at a
casino, indicate that they are not maximizing their average profits. Game theory
does not attempt to state what a player’s goal should be; instead, it shows how
a player can best achieve his goal, whatever that goal is.
PURE & MIXED
Dominance Method. Dominance method is also applicable to pure strategy and
mixed strategy problem. In pure strategy the solution is obtained by itself while in
mixed strategy it can be used for simplifying the problem.
Principle of Dominance. The Principle of Dominance states that if the strategy
of a player dominates over the other strategy in all condition then the later strategy is
ignored because it will not effect the solution in any way. For the gainer point of view if
a strategy gives more gain than another strategy, then first strategy dominates over
the other and the second strategy can be ignored altogether. Similarly from loser point
of view, if a strategy involves lesser loss than other in all condition then second can be
ignored. So determination of superior or inferior strategy is based upon the objective of
the player. Since each player is to select his best strategy, the inferior strategies can be
eliminated. In other words, ineffective rows & column can be deleted from the game
matrix and only effective rows & columns of the matrix are retained in the reduced
matrix.

For deleting the ineffective rows & columns the following general rules are to be
followed.

1) If all the elements of a row (say ith row) of a pay off matrix are less than or
equal to ( ) the corresponding each element of the other row (say jth row) then
the player A will never choose the ith strategy OR ith row is dominated by j th
row. Then delete ith row.

2) If all the elements of a column (say jth column are greater than or equal to the corresponding
elements of any other column (say jth column) then ith column is dominated by jth column. Then
delete ith column

Graphical method
The graphical method is used to solve the games whose payoff matrix has
• Two rows and n columns (2 x n)
• m rows and two columns (m x 2)
Algorithm for solving 2 x n matrix games
• Draw two vertical axes 1 unit apart. The two lines are x1 = 0, x1 = 1
• Take the points of the first row in the payoff matrix on the vertical line x1 =
1 and the points of the second row in the payoff matrix on the vertical line
x1 = 0.
• The point a1j on axis x1 = 1 is then joined to the point a2j on the axis x1 = 0
to give a straight line. Draw ‘n’ straight lines for j=1, 2… n and determine
the highest point of the lower envelope obtained. This will be the maximin
point.
• The two or more lines passing through the maximin point determines the
required 2 x 2 payoff matrix. This in turn gives the optimum solution by
making use of analytical method.
Example 1
Solve by graphical method

SOLUTION
Determinants and Matrices
Determinants and matrices, in linear algebra, are used to solve linear equations by
applying Cramer’s rule to a set of non-homogeneous equations which are in linear
form. Determinants are calculated for square matrices only. If the determinant of a
matrix is zero, it is called a singular determinant and if it is one, then it is known
as unimodular. For the system of equations to have a unique solution,
the determinant of the matrix must be nonsingular, that is its value must be
nonzero. In this article, let us discuss the definition of determinants and matrices,
different matrices types, properties, with examples.

Matrices Definition
Matrices are the ordered rectangular array of numbers, which are used to
express linear equations. A matrix has rows and columns. we can also
perform the mathematical operations on matrices such as addition,
subtraction, multiplication of matrix. Suppose the number of rows is m and
columns is n, then the matrix is represented as m × n matrix.

Types of Matrices
There are different types of matrices. Let’s see some of the examples of
different types of matrices

• Zero Matrix: [000]

• [000]
• [000]
• Identity Matrix: [100]
• [010]
• [001]
 • Symmetric Matrix = [2 3 -1]
• [3 0 6]
• [-1 6 5]
• Diagonal Matrix: [6 0 0]
• [0 9 0]
• [0 0 2]
• Upper Triangular Matrix: [6 −1 5]
• [0 4 2]
• [0 0 2]

Lower Triangular Matrix: = [6 0 0]

[2 4 0]

[8 -1 2]

Inverse of a Matrix
Inverse of a matrix is defined usually for square matrices. For every m × n
square matrix, there exists an inverse matrix. If A is the square matrix then A-1 is
the inverse of matrix A and satisfies the property:

AA-1 = A-1A = I, where I is the Identity matrix.

Also, the determinant of the square matrix here should not be equal to zero.

Transpose of Matrix
The transpose of a matrix can be determined by rows for the columns. If A is a
matrix, then the transpose of a matrix is represented by AT.

For example, let us assume a 3×3 matrix, Say A, then the transpose of A, i.e.
AT is given by
In case, if the given square matrix is a symmetric matrix, then the matrix A
should be equal to AT.

Definition of Determinant
A determinant can be defined in many ways for a square matrix.

The first and most simple way is to formulate the determinant by taking into
account the top row elements and the corresponding minors. Take the first
element of the top row and multiply it by it’s minor, then subtract the product
of the second element and its minor. Continue to alternately add and
subtract the product of each element of the top row with its respective minor
until all the elements of the top row have been considered.

For example let us consider a 4×4 matrix A.

Determinant of a Matrix
To solve the system of linear equations and to find the inverse of a matrix, the
determinants play an important role. Now, let us discuss how to find the
determinant of 2×2 matrix and 3×3 matrix. If A is a matrix, then the
determinant of a matrix A is generally represented using det (A) or |A|.

Finding Determinants for 2×2 matrix:

Let us assume a 2×2 square matrix

REPLACEMENT THEORY
The Replacement Theory in Operations Research is used in the decision making
process of replacing a used equipment with a substitute; mostly a new equipment
of better usage. The replacement might be necessary due to the deteriorating
property or failure or breakdown of particular equipment. The „Replacement
Theory‟ is used in the cases like; existing items have out-lived, or it may not be
economical anymore to continue with them, or the items might have been
destroyed either by accident or otherwise.
The above discussed situations can be solved mathematically and categorized on
some basis like:
• Items that deteriorate with time e.g. machine tools, vehicles, equipment
buildings etc.
• Items becoming out-of-date due to new developments like ordinary weaving
looms by automatic, manual accounting by tally etc.
• Items which do not deteriorate but fail completely after certain amount of use
like electronic parts, street lights etc (Group Replacement) and
• The existing working staff in an organization gradually diminishing due to death,
retirement, retrenchment & otherwise (Staff Replacement).