207 – OPERATIONS RESEARCH WINGS BUSINESS SCHOOL, TIRUPATI

UNIT-1 What is Unbounded Solution?

1. What is linear programming? Explain the Unbounded Solution:
graphical method of solving an LP Problem?
Linear programming:
Linear programming is a widely used mathematical
modelling technique to determine the optimum
allocation of scarce resources among competing
demands. Resources typically include raw materials,
manpower, machinery, time, money and space.
What is Linear programming:
LPP is a mathematical technique for maximizing (or) UNIT-2
minimizing a linear function of several variables such 2. What is Transportation problem? Explain any
as profit (or) cost. two methods of Initial Basic Feasible Solutions?
Graphical Method: It is a special kind of LPP in which goods are
Step 1: Convert the inequality constraint as equations transported from set of sources to a set of destinations
and find co-ordinates of the line. subject to the supply and demand of the sources and
Step 2: Plot the lines on the graph. (Note: If the destination respectively, such that to minimize the
constraint is ≥ type, then the solution zone lies away transportation cost and maximize the profits.
from the centre. Types of Transportation problem:
If the constraint is ≤ type, then solution zone is 1. Balanced transportation problems (S = D)
towards the centre.) If the sum of the supplies of all the sources is
Step 3: Obtain the feasible zone. equal to the sum of the demands of all the
Step 4: Find the co-ordinates of the objectives destinations, then the problem is termed as
function (profit line) and plot it on the graph balanced transportation problem.
representing it with a dotted line. It may be represented by the relation: Total Supply =
Step 5: Locate the solution point. (Note: If the given Total Demand.
problem is maximization, z max then locate the 2. Un Balanced transportation problem (S ≠ D)
solution point at the far most point of the feasible
If the sum of the supplies of all the sources is
zone from the origin and if minimization, Z min then
locate the solution at the shortest point of the solution not equal to the sum of the demands of all the
zone from the origin). destinations, then the problem is termed as
Step 6: Solution type
unbalanced transportation problem.
i. If the solution point is a single point on the line,
take the corresponding values of x1 and x2. That means, for any unbalanced transportation
ii. If the solution point lies at the intersection of two problem, we have Total Supply ≠ Total Demand.
equations, then solve for x1 and x2 using the two Initial Basic Feasible Solutions:
equations.
iii. If the solution appears as a small line, then a
multiple solution exists.
iv. If the solution has no confined boundary, the 1. North West Corner Cell Method (NWCM)
solution is said to be an unbound solution. 2. Least Cost Cell Method (LCM)
3. VAM (Vogel’s Approximation Method)
North West Corner Cell Method (NWCM):
 First we have check whether the given
transportation problem is balanced or not.
 Balanced transportation problem then we
have find out the initial basic feasible
solution. other wise

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 It has Un balanced transportation problem Step 1: Locate the smallest cost element in each row
we have convert into the un balanced of the cost table. Now subtract this smallest element
transportation problem into balanced from each element in that row. As a result, there shall
transportation problem. be at least one zero in each row of the new table,
 It has added either dummy row or dummy called the Reduced cost table.
column after we have find out initial basic Step 2: In this reduced cost table obtained, consider
feasible solution. each column and locate the smallest element in it.
Least Cost Cell Method (LCM): Subtract the smallest value from every other entry in
Step: - 1 the column. As a result, there would be at least one
Find the minimum of the (undeleted) values zero in each of the rows and columns of the second
in the cost matrix (i.e. find the matrix minimum). reduced cost table.
Step: - 2 Step 3: Draw the minimum number of horizontal and
Find the minimum of the supply and demand vertical lines that are required to cover all the ‘Zero’.
values (x) with respect to the cell corresponding to If the number of lines drawn is equal to n (the
the matrix minimum. number of rows/columns) the solution is optimal, and
Step: - 3 proceeds to step 6. If the number of lines drawn is
Allocate x units to the cell with the matrix minimum. smaller than n, go to step 4.
Also, subtract x units from the supply and the Step 4: Select the smallest uncovered (by the lines)
demand values corresponding to the cell with the cost element.
matrix minimum. Subtract this element from all uncovered elements
Step: - 4 including itself and add this element to each value
Check whether exactly one of the located at the intersection of any two lines.
row/column corresponding to the cell with the matrix Step 5: Repeat steps 3 and 4 until an optimal solution
minimum has zero supply/zero demand, respectively. is obtained.
If yes go to step-5 otherwise, go to step-6. Step 6: Make the job assignments to ‘Zero’ elements.
Step: - 5 a) Locate a row which contains only one ‘zero’
Delete that row/column with respect to the element. Assign the job corresponding to this
cell with the matrix minimum which has the zero element. Cross out the zeros, if any, in the column
supply/zero demand and go to step-7. corresponding to the element
Step: - 6 b) Repeat (a) for each of such rows which contain
Delete the both row and column with respect only one zero.
to the cell with the matrix minimum. Similarly, perform the same operation in respect of
Step: - 7 each column containing only one ‘zero’, crossing out
Check whether exactly one row or column is the zero, if any, in the row
left out. if yes go to step-8 otherwise, go to step-1 c) If there is no row or column with only a single
Step: - 8 ‘Zero’ left, then select a row/column arbitrarily and
Match the supply/demand of that row/column choose one of the jobs and make the assignment.
with the remaining demands/supplies of the Now cross the remaining zeros in the column and
undeleted columns/rows. row in respect of which the assignment is made.
Step: - 9 d) Repeat steps (a) through (c) until all assignments
Go to phase 2. are made.
3. Explain the procedure of Hungarian Method in e) Determine the total cost with reference to the
solving an Assignment Problem? original cost table
Assignment Problem:
It is a special kind of transportation problem in which
each source should have the capacity of the
destination.
Procedure of Hungarian Assignment Method:

Prepared by: B.CHENNA KESAVA, B.Tech, MBA., | Assistant Professor, 8977730772 2

207 – OPERATIONS RESEARCH WINGS BUSINESS SCHOOL, TIRUPATI

UNIT-3
Dynamic programming: Dynamic Linear
The mathematical technique of optimizing a Programming Programming
sequence of inter-related decisions over a period of 1. It is a multistage 1. It gives a solution
time is called dynamic programming. decision making process that will pertain only
that spans time to one time period
Bellman’s Principle of Optimality: intervals. Intervals may with in given
Bellman’s principle of optimality is the principle consist only of stages in capacity, quantity and
which guides the solution of a problem using which the problem is cost constraints.
dynamic programming. solved.
It states: 2. It is similar to
Regardless of the decisions taken to enter a particular solving set of
2. It is similar to simultaneous linear
state in a particular stage, the remaining decisions
calculus. equations.
made for leaving that stage must constitute an 3. It permits one to 3. It requires constant
optimal policy” determine optimal updating of any value
Steps in Dynamic Programming: decisions for future time obtained in order to
1. Divide the original problem into sub- periods, regardless of reflect the current
problems called stages. any earlier decisions. constraints necessary
2. Solve the last stage of the problem for all for an optimal answer.
4. Computation 4. Computation
possible conditions or states.
technique is not easy. technique is easier.
3. Working backward from that last stage, solve
UNIT-4
each intermediate stage.
What is Goal Programming? Explain in detail.
4. Obtain the optimal solution for the original Goal programming is an off shoot of multi-objective
problem by solving all stages sequentially. optimization. This is inter connected to the branch of
Terminology of Dynamic Programming multi-objective decision analysis, which is also known
1. Stage: a period or a logical sub-problem. as multi- criteria decision making.
2. State variables: possible beginning situations or
Concepts of Goal Programming:
conditions of a stage.
 Goal programming was first introduced by
3. Decision variables: alternatives or possible
Charnes, Copper and Ferguson in 1995.
decisions that exist at each stage.
 It was only in 1961 that the actual name
4. Decision criterion: a statement concerning the
appeared in a text.
objective of the problem.
 Goal programming is used to widely in
5. Optimal policy: a set of decision rules developed
planning resource allocation policy analysis and
as a result of the decision criteria that give optimal
functional management issues.
decisions for any entering condition at any stage.
 The first application of goal programming was
6. Transformation: normally, an algebraic statement
done on an engineering application for design
that reveals the relationship between stages.
and placement of the antennas.
 In most applications, dynamic programming
 Objectives: are referred to the optimization of
obtains solutions by working backward from
the measure of performance of a decision, such
the end of the problem toward the beginning,
as profit maximization or cost minimization.
thus breaking up a large, unwieldy problem
into a series of smaller, more tractable  Goals: state target value i.e the minimum
problems acceptable level of performance of any decision
Difference between Dynamic Programming and taken by the decision maker.
Linear Programming:  Constraints:
Are similar to goals in terms of their
mathematical formulation.

Difference between Goal Programming and Linear

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207 – OPERATIONS RESEARCH WINGS BUSINESS SCHOOL, TIRUPATI

Programming:  Traffic control

 Determining the sequence of computer
Goal Programming Model Formulation:  operations
Goal Programming Linear Programming  Predicting computer performance
Has to handle multiple Has a single objective  Health services (e.g.. control of hospital bed
objective functions and function to be optimized, assignments)
attain optimization in like the profit  Airport traffic, airline ticket sales
multi-criteria decision maximization and cost
 Layout of manufacturing systems.
making. minimization
Effective analysis for a Effective only when Queuing System:
decision maker in a decision maker is  Model processes in which customers arrive.
complex system of looking for single  Wait their turn for service.
competing objectives. objective.  Are serviced and then leave.
Goal Programming Linear Programming
problems use ordinal problems are solved on
ranking of goal which is the basis of cardinal
decided on the basis of value(exact amount)
ordinal ranking of goals.
Ordinal value, which Cardinal value, which is
calculates goal the basis of calculation,
programming, is based on is expressed in exact
their significance or amount, i.e. profit or
impact on the loss.
organization.
What is simulation?
Goal Programming Model Formulation

Single goal with multiple sub goals

Ranking and Weighting of unequal multiple

goals

Equally ranked multiple goals

UNIT-5
What is Queuing theory?
 Queuing theory is the mathematics of waiting
lines.
Monte Carlo Simulation:
 It is extremely useful in prerding and
evaluating system performance. Statistical simulation technique that provides
 Queuing theory has been used for operations approximate solution to problems expressed
research, manufacturing and system analysis. mathematically.
 Traditional queuing theory problems refer to It utilize the sequence of random number to perform
customers visiting a sotre, analogous to the simulation.
requests arriving at a device.
 This techniques can be used in different
domain
 Complex Integral Computation
Applications of Queuing Theory:  Economics Specially in Risk Management
 Telecommunications  extensively used in financial institutions to
compute European prices,
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207 – OPERATIONS RESEARCH WINGS BUSINESS SCHOOL, TIRUPATI

 to evaluate sensitivities of portfolios to

various parameters and to compute risk
measurements
Steps for Monte Carlo Simulation:
Step: 1
 Setting up a probability distribution for
variables to be analysed.
Step: 2
 Builiding a cummulative probability
distribution for each random variables.
Step: 3
 Genareting the random numbers and then
assiging anappropriate set of random
numbers to represent value or range. (interval
of values for each random variables).
Step: 4
 Conducting the simulation expecteted using
ramdom samples.
Step: 5
 Repeat step no 4 until the required no of
simulation has been genareted.
Step: 6
 Designing and implementing a course of
action and maintaing control.

Prepared by: B.CHENNA KESAVA, B.Tech, MBA., | Assistant Professor, 8977730772 5