Operation Research is a scientific method of providing executive departments

with a quantitative basis for decision regarding the operation under their control.
OR is a scientific approach to problem solving for executive management.

OR is the application of scientific methods, techniques and tools to problems

involving the operation systems to as to provide these in control of the operations
with optimum solutions to the problem.

Management Applications of OR

1. Finance-Budgeting and Investments

2. Purchasing, Procurement and Exploration
3. Production Management
i) Physical Distribution
ii) Facilities Planning
iii) Manufacturing
iv) Maintenance and project scheduling
4. Marketing
5. Personnel Management
6. Research and Development

Main Characteristics of Operation Research

1. Inter-Disciplinary team approach

2. Wholistic approach to the system
3. Imperfectness of solutions
4. Use of scientific research
5. To optimize the total output.

Scientific Method in OR

The scientific method in OR study generally involves the three phases

1.Judgement phase - This includes a determination of the operation,

establishment of the objectives and values related to the operation,
determination of the suitable measures and effectiveness, formulation of the
problems relative to the objectives

2. Research Phase - This includes observations and data collection for better
understanding of what the problem is, formulation of hypothesis and models,
observations and experimentation to test the hypothesis and verification of
the hypothesis using pre-established measures of effectiveness, predictions
of various results from the hypothesis, generalization of the result and
consideration of alternative methods.
 3. Action Phase- This includes making recommendations for decision process
by those who first posed the problem for consideration to make a decision
influencing the operations in which the problem occurred.

The main phases through which the OR team would proceed to effect an
OR study include

i) Definition of the problem

ii) Construction of the model
iii) Solution of the model
iv) Validation of the model
v) Implementation of the final results
vi)
The first Phase of the study deals with the problem definition. From the viewpoint
of operation research, this indicates three major aspects

i) A description of the goal or the objective of the study

ii) An identification of the decision alternatives of the system
iii) A recognition of the limitations, restrictions and requirements of the
system..

The Second phase of the study deals with the model construction. Depending on
the definition of the problem, the operation research team should decide on the
most suitable model for representing the system. Such a model should specify
quantitative expressions for the objective and the constraints of the problem in
terms of its decision variables.

The third phase of the study deals with the model solution. In mathematical
models, this is achieved by using well-defined optimization techniques and the
model is said to yield an optimum solution.

The fourth phase calls for checking the model validity. A model is valid if despite
its in exactness in representing the system, it can give a reasonable prediction of
the system’s performance. A common method for using for tests the validity of
the model is to compare its performance with the some past data available for
the actual system.

The final phase of the study deals with the implementation of the tested results of
the model. The burden of executing these results lies primarily with the operation
researchers. It involves the translation of these results into detailed operating
instructions issued in an understandable from the individuals who will administer
and operate the recommended system.
The action phase in OR consists of making recommendations for decision
process by those who first posed the problem for consideration, or by anyone in
a position to make a decision influencing the operation in which the problem
occurred.

Scope of Operation Research

1. In Agriculture:

With the explosion of population and consequent shortage of food, every country
is facing the problem of

i) Optimum allocation of land to various crops in accordance with

the climatic conditions and
ii) Optimum distribution of water from various resources like canal
for irrigation purposes
2. In Finance
To maximize Per capita income with minimum resources
To find out the profit plan for the company
To determine the best replacement policies
3.In Industry

4. In Marketing: With the help of OR technique marketing administrator can

decide
i) Size of the stock to meet the future demand
ii) How to select, the best advertising media with respect to time, cost
etc
iii) Minimum per unit sale price.

5.In Personnel Management

i) A personnel manager can use OR technique

ii) To appoint the most suitable person on minimum salary
iii) To determine the best age of retirement for the employees

7.In Production Management

i) To find out the number and size of the items produced

ii) In calculating optimum mix
iii) To select, locate and design the sites for the production plans

8. In LIC

i) What should be premium rates for various models of policies

ii) How best the profits could be distribution in the cases of with profit
policies, etc
Role of Operation Research in Decision making

1. Better control: The management of big concerns finds it much

costly to provide continuous executive supervisors over routine
decisions.
2. Better Co-ordination: Sometimes OR has been very useful in
maintaining the low and order situation out of chaos
3. Better System: OR study is also initiated to analyze a particular
problem of decision making such as establishing a new
warehouse
4. Better Decisions: OR models frequently yield actions that do
improve an initutive decision making.

Modelling in Operation Research

It is defined as a representation of an actual object or situation.It shows the

relationships and inter- releationship of action and reaction in terms of cause and
effect.
Various models expressed as
1) Classification by structure
2) Classification by purpose
3) Classification by Nature and Environment
4) Classification by Behavior
5) Classification by method solution
6) Classification by use of digital computers

What is LPP and what are the assumptions.

LP is a general technique of optimum allocation of scarce or limited resources,

such as labour,material,machine,capital etc to several competing activities, such
as products,services,jobs etc on the basis of a given criterion of optimality.

Assumptions of Linear programming

Four basic assumptions of LPP are

1. Certainty: In all LP models it is assumed that all model parameters such as

availability of resources, profit contribution of a unit of decision variable and
consumption of resources by a unit of decision variable must be known and
constant.

2. Divisibility: The solution values of decision variables and resources are

assumed to have either whole numbers or mixed numbers.
3. Additivity: The value of the objective function for the given values of decision
variables and the total sum of resources used must be equal to the sum of the
contributions earned from each decision variable and the sum of the resources
used by each decision variable respectively.

4. Linearity: All relationships in the LP model must be linear. In otherwords for

any decision variable the amount of particular resources say k used and its
contribution to the cost in objective function must be proportional to its amount.

Applications of Linear Programming

Main applications are

i) Assignment Problem
ii) Transportation Problem
iii) Efficiency on operation system of dams
iv) Optimum estimation of executive compensation
v) Agricultural applications
vi) Military applications
vii) Production management
viii) Marketing management
ix) Manpower management
x) Physical Distribution

Advantages of LPP

Linear programming technique helps in making the optimum utilization of

productive resources. It also indicates how a decision makes can empty has
productive factors most effectively by choosing and allocating these resources.
The quantity of decisions may also be improved by linear programming of
techniques. The user of this technique becomes more objective and less
subjective. Linear programming technique provides practically applicable
solutions since there might be other constraints operating outside the problem
which must also be taken into consideration just because, so many units must be
produced does not mean that all those can be sold. In production process, high
lighting of bottlenecks is the most significant advantage of this technique.

Two Phase Method

Linear programming problems in which constraint may also have > and = signs
after ensuring that all considered. In such problems basis matrix is not
obtained as an identity matrix in the starting simplex table. Therefore we
introduce a new type of variable called the artificial variable. These variables are
fictious and cannot have any physical meaning. The artificial variable technique
is merely a device to get the starting basic feasible solution, so that simplex
procedure may be adopted as usual until the optimal solution is obtained.
Artificial variables can be eliminated from the simplex table as and when they
become from the simplex table as and when they become zero. The process of
eliminating artificial variables is performed in phase I of the solution and phase II
is used to get an optimal solution. Since the solutions of the LP problem is
completed in two phases it is called “Two Phase simplex Method”.

What is meant by Degeneracy

At the state of improving the solution during simplex procedure, minimum ratio of
Xb/Xi is determined in the last column of simplex table to find out the key row, but
the ratio sometimes may not be unique. I.e., key element is not uniquely
determined or at the first iterations, the value of one or more basic variables in
the Xb column become equal to zero, this causes the problem of degeneracy.

Slack and Surplus variables:

The non-negative variables which is added to the left hand side of the constraint
to convert it into equation is called the slack variable.

The Positive variable is subtracted from left hand side of the constraint to convert
it into equation is called the surplus variable.

Solution to LPP: Any set X= x1,x2,x3,x4,x5………of variables is called a

solution to LP problem, if it satisfies the set of constraints only.

Feasible solution: Any set X= x1,x2,x3,x4,x5………of variables is called a feasible

solution of LP problem, if it satisfies the set of constraints and non-negativity
restrictions also.

Basic solution: A basic solution to the set of constraint is a solution obtained by

setting any variables(among n+m variables) equal to zero and solving for
remaining m variables, provided the determinant of the coefficients of these m
variables is non-zero, such m variables are called basic variables and remaining
n zero valued variables are called non-basic variables.

Basic Feasible Solution: A basic feasible solution is a basic solution which also
satisfies the non-negativity restrictions i.e. all basic variables are non-negative.

Basic Feasible solution is of two types:

1. Non-degenerate Basic feasible solution: A non-degenerate

basic feasible solution is the basic feasible solution which has
exactly m positive. In other words all m basic variables are
positive and the remaining n variables will be all zero.
 2. Degenerate Basic Feasible solution: A basic feasible solution is
called degenerate if one or more basic variables are zero
valued.

Optimum Basic Feasible solution: A basic feasible solution is said to be

optimum if it also optimizes the objective function.

Unbounded solution: If the value of the objective function Z can be increased or

decreased in definitely, such solutions are called bounded solutions. Otherwise
they are unbounded solutions.

Define Artificial Variable technique and Big-M method

LPP in which constraints may also have > and = signs after ensuring that all bi>0
are considered. In such cases basis matrix cannot be obtained as an identity
matrix in the starting simplex table, therefore we introduce a new type of variable
called artificial variable.

Two methods to LPP under such situations are

1. Big M method or Method of Penalties
2. The Two phase simplex method

Big M method

The following steps are involved in solving LPP using Big M method

Step 1. Express the problem in the standard form

Step 2. Add non-negative artificial variables to the left side of each of the
equations corresponding to constraints of the type > or =. However, addition of
this artificial variable causes violation of the corresponding constraints. This is
achieved by assigning a very large penalty (M for maximization or –M for
minimization)
Step3. Solve the modified LPP by simplex method, until any one of the three
cases may arise.

1. If no artificial variable appears in the basis and the optimality conditions

are satisfied, then the current solution is an optimal basic feasible solution
2. If at least one artificial variable in the basis at zero level and the optimality
condition is satisfied then the current solution is an optimal basic feasible
solution
3. If at least one artificial variable appears in the basis at positive level and
the optimality condition is satisfied, then the original problem has no
feasible solution. The solution satisfies the constraints but does not
optimize the objective function, since it contains a very large penalty M
and is called Pseudo Optimal solution.
What are the steps involved in solving two-phase simplex method

Phase 1
In this phase, we construct an auxiliary LPP leading a final simplex table
containing a basic feasible solution to the original problem.

Step 1 Assign cost –1 to each artificial variable and a cost 0 to all other variables
and get a new objective function Z*= A1+A2+A3………… where A is artificial
variable

Step 2. Write down the auxiliary LPP in which the new objective function is to be
maximized subject to the given set of constraints.

Step 3. Solve the auxiliary LPP by simplex method until either of the following
three cases arise:
i) Max Z*<0 and at least one artificial variable appears in the Optimum
basis at positive level
ii) Max Z*=0 and at least one artificial variable appears in the optimum
basis at zero level.
iii) Max Z*=0 and no artificial variable appears in the optimum basis.

In case (i), given LPP does not possess any feasible solution, where as in case
(ii) and (iii) we go to Phase II

Phase II

Use the optimum basic feasible solution of phase I as a starting solution for the
original LPP. Assign the actual costs to the variable in the objective function and
a zero cost to every artificial variable in the basis at zero level. Delete the artificial
variable column from the table which is eliminated from the basis in Phase I.
Apply simplex method to the modified simplex table obtained at the end of Phase
I till an optimum basic feasible is obtained or till there is an indication of
unbounded solution.

What is meant by Degeneracy and How to resolve it

The phenomenon of obtaining a degenerate basic feasible solution in a LPP is

known as Degeneracy. Degeneracy in LPP may arise

i) At the initial state

ii) At any subsequent iteration stage

Step1. First find out the rows for which the minimum non-negative ratio is the
same (tie), suppose there is a tie between first and third row.
Step2. Now rearrange the columns of the usual simplex table so that the columns
forming the original unit matrix come first in proper order.
Step 3. Find the minimum of the ratio

Elements of the first column of the unit matrix / Corresponding elements of the
key column

Only for the tied rows, i.e. for the first third rows.
If the third row has the minimum ratio then this row will be the key row and
key element can be determined by intersecting the key row with any key
column.

Step 4. Now find the minimum of the ratio, only for the tied rows. If this minimum
ratio is unique for the first row, then this row will be the key row for determining
the key element by intersecting with key column.
If the minimum is also not unique, then go to the next step.

Step 5. Find the minimum of the ratio. The above step is repeated till the
minimum ratio is obtained so as to resolve the degeneracy. After the resolution
of this tie, simplex method is applied to obtain the optimum solution.

Duality in Linear Programming

Every LPP(Primal) is associated with another LPP (called its dual). Either of the
problem can be considered as primal with the other one as dual.

i) If the primal contains a large number of constraints and a smaller

number of variables, the labour of computation can be considerably
reduced by converting it in to the dual problem and then solving it.
ii) The interpretation of the dual variables from the cost or economic point
of view proves extremely useful in making future decisions in the
activities being programmed.

Formulation of the dual problems

1. Change the objective function of maximization in the primal into

minimization one in the dual and vice versa.
2. The number of variable in the primal will be the number of
constraints in the dual vice versa.
3. The cost coefficients C1, C2, C3 ………….. in the objective
function of the primal will be the RHS constant of the constraints in
the dual and vice versa
4. In forming the constraints for the dual, we consider the transpose of
the body matrix of the primal problem.
5. The variables in both problems are non-negative.
 6. If the variable in the primal is unrestricted in sing, the corresponding
constraint in the dual will be an equation and vice versa.

Discuss the limitations of Operation Research

Opearation Research has few limitations viz., data dependency,model

assumptions,complexity of real time problems,Implementation challenges,Limited
scope models,time consuming process,Resource intensive,Senstivity to input
changes,Short term focus,Inflexibility in dynamic environments, Ethical
considerations,ete.

Write the general format of LPP

The general form of LPP is to maximize or minimize the objective function

Z= c1x1+ c2x2+c3x3………

Subject to a1x1+a2x2+………<K1
b1x1+b2x2+………<K2
c1x1+c2x2+………<K3

x1,x2,x3…..≥0

Assignment Problem

The name assignment problem originates from the classical problems where the
objective is to assign number of origins to the equal number of destinations at a
minimum cost.

Suppose there are n jobs to be performed and n persons are available for doing
these jobs. Assume that each person can do job at a time, though with varying
degree of efficiency. Let Cij be the cost of the ith person is assigned the jth job.
The problem is to find out assignment so that the total cost for performing all jobs
minimum.

n n
Min Total cost = Z=  Cij Xij
i=1 j=1

i=12……..n, j=1,2,………….n

Transportation Problem: It is to transport various amounts of a single

homogeneous commodity that are initially stored at various origins to different
destinations in such a way that the total transportation cost minimum. Let C ij be
the cost of shipping one unit product from i th origin to jth destination and Xij be the
amount to be shipped from ith origin to jth destination.
It is also assumed that total availabilities ai satisfy the total requirements bj

ai=bj (I=1,2………m, j=1,2……..n)

Feasible solution: A set of non-negative individual allocation which

simultaneously removes deficiencies is called feasible solution.

Basic Feasible Solution (BFS): A feasible solution to m- origin n-destinations

problem is said to be basis if the number of positive allocations are m+n-1. i.e.
one less than sum of rows and columns. If the number of allocations in a basic
feasible solution is less than m+n-1, it is called degenerate basic feasible
solution.

Optimal Solution:

A feasible solution is said to be optimal if it minimizes the total transportation

cost.

North West Corner Rule

The first assignment is made in the cell occupying the uppar left hand (Noth-
west) corner of the transportation table. The maximum possible amount is
allocated therein. Ie.x11=min (a1,b1). This value of x11 is then entered in the cell
(1,1) of the transportation table.

Step 2. If b1>a1, move vertically downwards to the second row and make the
second allocation of amount x21=min (a1,b1-x11) in the cell (2,1).

If b1<a1, move horizontally right side to the such row and make the
second allocations of amount x12=min (a1-x11,b2) in the cell (1,2).

If b1=a1, there is a tie for the second allocation. One can make the second
allocation of magnitude x12=min (a1-b1,b2) =0 in the cell (1,2) or x21=min(x2,b1-
b1)=0 in the cell (2,1)

Step 3: Start from the new north-west corner of the transportation table and
repeats above steps until all the requirements are satisfied.

Matrix –Minima method

Step 1: Determine the smallest cost in the cost matrix of transportation table. Let
it be Cij
Allocate xij

Step2: If xij=ai, cross out the ith row of the transportation table and decrease bj by
ai

If xij=bi, cross out the jth column of the transportation table and decrease
ai by bj go to step 3

If xij=ai=bj,cross out either the ith row or jth column but not both

Step 3 Repeat steps 1 and 2 for the resulting reduced transportation table until all
requirements are satisfied.

Vogel’s approximation method

Step1 For each row of the transportation table identify the smallest cost.
Determine the difference between for each row. These are called penalties. Put
them along side the transportation table by enclosing them in the parenthesis
against the respective rows. Similarly compute these penalties for each column.

Step 2. Identify the row or column with the largest penalty among the rows and
columns. If a tie occurs use any arbitrary tie breaking choice. Let the largest
penalty correspond to ith row and let cij be the smallest cost in the ith row.
Allocate the largest possible amount xij=min(ai, bj) in the cell (I,j) and cross out
the ith row and jth column in the usual manner.

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
requirements are satisfied.

What do you mean by unbalanced Transportation problem.

A Transporation problem is said to be unbalanced if total supply is not equal to

total demand. i.e. Row constraint is not equal to column constraint.

What is meant by Degeneracy in Transporation problem and how do you resolve

it.
Transportation problem is said to be degenerate if number of basic feasible
solution is not equal to R+C-1 (R: Rows,C: coloums).
To resolve degeneracy, allocate an extremely small amount of goods(close to
zero say 0) to one or more of the empty cells so that a number of occupied cells
becomes R+C-1. The cell containing this extremely small allocation is,
considered to be an occupied cell.
Small item can be denoted as θ, if necessary two or more θ can be introduced in
the least and second least cost independent cells.
 1) If θ < xij for xij>0
2) Xij+θ=xij-θ if xij>0
3) θ+0=θ
4) If there are more than one θ in the solution , θ< θ1 if θ> θ1

PERT and CPM:

A project defines a combination of interrelated activities that must be

executed in a certain order before the entire task can be completed. The
activities are interrelated in a logical sequence in the sense that some activities
cannot start until others are complete.

An activity in a project is viewed usually as a job requiring time and

resources for its completion. Project management has evolved as a new
(technique) field with the development of two analytic techniques for planning,
scheduling and controlling of projects. These are called Critical Path method and
the project evaluation and review technique (PERT). PERT and CPM are
basically time-oriented method in the sense that they both lead to the
determination of a time-schedule. They consist of three phases.

Planning, Scheduling, Controlling

The Planning phase is initiated by breaking down the project into distinct
activities. The time estimates for the activities are the determined and a network
diagram is constructed with each of its areas representing the activity. The entire
arrow diagram gives a graph representation of the interdependence between the
activities of the project. The ultimate objective of the scheduling phase is to
construct a time chart showing the start and finish times for each activity as well
as its relationship to other activities in the project. In addition the schedule must
pinpoint the critical activities that require special attention if the project is to be
completed on time. For the non-critical activities the schedule must show the
amount of slack or float times that can be used advantageously when such
activities are delayed or when limited resources are to be used effectively.

The final phase in project management is controlling. Critical path method

facilitates the applications of the principle management by expectation to
identifying areas that are critical to the completion of the project. By having
progress reports from time to time and updating the network continuously a
better financial as well as technical control over the project is exercised. Arrow
diagrams and time charts are used for making periodic progress reports.

What are the rules of network construction (Fulkerson’s Rule)\

1. Try to avoid arrows which cross each other

2. Use straight arrows
3. No event can occur until every activity preceding it has been completed.
4. An event cannot occur twice. I.,e there must be no loops.
5. An activity succeeding an event cannot be started until the event has
occurred
6. Use arrows from left to right. Avoid mixing tow directions, vertical and
standing arrows may be used if necessary.
7. Dummies should be introduced if it is extremely necessary.
8. The network has only one entry point called the start event and one point
of emergence called the end or terminal point..

Define Activity, Dummy activity, Event,Critical path

Activity: Any individual operation, which utilizes resources and has an end
and a beginning is called activity. An arrow is commonly used to represent an
activity with its head indicating the direction of progress in the project.
Dummy Activity: An activity which does not consume any kind of resource but
merely depicts the technological dependence is called dummy activity.

Event: An event represents a point in time signifying the completion of some

activities and the beginning of new ones. This is usually represented by a
circle O in a network which is also called a node or connector

Define Optimistic time and most likely time, and pessimistic time

Optimistic time: It is the shortest possible time in which the activity can be
finished. This is denoted by t0

Most likely time: It is the estimate of the normal time the activity would take.
This assumes normal delays. It is denoted as tm.
Pessimistic time: It represents the longest time the activity could take if
everything goes wrong. It is denoted as tp

Application area of PERT/CPM techniques

It has wide application in the areas of

1) Building construction
2) Administration
3) Manufacturing
4) Maintenance Planning
5) Research and Development
6) Inventory planning
7) Marketing

Critical path and how it helps project manager: The sequence of critical
activities in a network is called the critical path. Critical path is the longest
path in the network from the starting event to the ending event and defines
the minimum time required to complete the project
 It helps project managers find the most important tasks in a project that critically
affect how long a project will take. It helps project managers make an efficient
schedule so they can finish the entire project on time and within budget.

Define Different types of floats:

The float of an activity is the amount of time by which it is possible to delay its
completion time without affecting the total project completion time.

Total Float: It is the difference between the time available to perform the activity
and the expected completion time of the activity.

Free Float: It is the time by which the completion of an activity can be delayed
beyond its earliest finish time without affecting the earliest start time of a
succeeding activity is called free float.

Independent float: It is the amount of time by which it is possible to delay the

completion of an activity so that it neither affects the predecessor nor the
successor activities.

Critical Path: The critical path is the continuous chain of critical activities in a
network diagram. It is the longest path starting from time to the last event and is
shown by the thick line or double lines in the network diagram. The length of the
critical path is the sum of the individual time of all the critical activities lying on it
and defines the minimum time required to complete the project.

What do you mean by crashing

Total cost comprising of direct and indirect cost. Direct cost is associated with
manpower,leading equipment utilization, materials consumed directly etc, in
respect of various activities. The indirect cost are those expenditures which
cannot be allocated to individual activities of the project. These may include
administration or supervision costs, loss of revenue, fixed overheads etc, while
indirect cost allocated for a project goes up with the increase in project duration.
Direct cost go high as the time for individual activity is reduced, such deliberated
reduction of activity turns by putting extra effort is called crashing of an activity.

What is AOA network and AON

Project networks for planning and scheduling are based on two representation
types: Activities on Arcs (AOA) and Activities on Nodes (AON). Each
representation type (AOA or AON) has desirable features that are unique to their
type [16] (see next section for a comparison of AOA to AON). For example,
some advantages of Activities on Arcs (AOA) networks for project network
planning are: (1) each AOA arc has its origin and destination node, conforming
with a "from-to" matrix (incidence matrix), or with variables in a node arc matrix.
(2) AOAnetworks could be arranged in a total unimodular "node-arc" matrix that
ensures an integer solution for integer data. (3) AOA is suitable for some popular
formulations that use pairwise subtractions of AOA node variables.

Differentiate between activity and node

An activity is a task or item of work to be done where as node represents start or

end of an activity, it doesnot consume time

Define Strategy, Saddle point in game theory

The strategy for a player is the list of all possible actions (moves or courses of
action) that he will take for every payoff (outcome) that might arise. It is assumed
that the rules governing the choices are known in advance to the players. There
are two types: Pure strategy, mixed strategy

Pure Strategy: It is decion rule which is always used by the player to select the
particular course of action. Thus each player knows in advance of all strategies
out of which he always selects only one particular strategy irrespective of the
strategy others may choose and the objective of the players is to maximize gains
or minimize losses.

Mixed Strategy: When both the players are guessing as to which course of action
is to be selected on a particular occasion with some fixed probability, it is a mixed
strategic game. Thus, there is a probabilistic situation and objective of the
players is to maximize expected gains or to minimize expected gains or to
minimize expected losses by making a solution among pure strategies with fixed
probabilities.

Pay off Matrix:

The payoffs in terms of gains or losses, when players select their particular
strategies, can be represented in the form of a matrix, called the payoff matrix.
Saddle Point (Optimal Strategy): It is a point at which both row minima and
column maxima interests or meets.

Maximin Principle: It is the point at which the player select the strategy that gives
largest gain among the row minimum values.

Minimax principle: It is the point at which the player select the strategy that gives
minimum loss among the column maximum values.

Two person, Zero sum games: A game with only two players is called a two
person game. If the value of the game is zero when two players are playing is
called zero sum game.
A game said to be fair if the value of the game is zero.

Value of the game: The payoff at the saddle point is called value of the game; it
is equivalent to maximin or minimax value of the game

Write the four characteristics of two person zero sum game.

When there are two competitors playing a game it is called a two person game.
In case the number of competitors exceeds two say n then the game is termed
as n person game. Games having the zero sum character that the algebraic sum
of gains and losses of all the players is zero are called zero sum games. The
play does not add a single paise to the total wealth of all the players it merely
results in a new distribution of initial money among them. Zero sum games with
two players are called two person zero sum games. In this case the loss(gain) of
one player is exactly equal to the gain(loss) of the other. If the sum of gains or
losses is not equal to zero, then the game is of non-zero sum character or simply
a non-zero sum game.

What is Job Sequencing?

It is the method to find a sequence among (n!)^m number of all possible

sequences for processing the jobs so that total elapsed time for all the jobs will
be minimum.

What are the principles assumptions of Job sequencing

1) No machine can process more than one operation at a time

2) Each operation once started must be performed till completion
3) A job is an entity i.e even though the job represents a lot of individual
parts.
4) Each operation must be completed before any other operation which it
must preceded can begin
5) Time intervals for processing are independent of order in which operations
are performed
6) There is only one of each type of machine
7) A job is processed as soon as possible subject to ordering requirements
8) All jobs are known and are ready to start processing before the period
under consideration begins
9) The time required to transfer jobs between machines is negligible.

Write down Johnson Algorithem for n jobs 2 machines

1) Examine Ai and Bi for i=1,2,3…n and find out min(A,B)

2) If this minimum be Ak for some i=k do the kth job first of all
3) If this minimum be Br for some i=r, do the rth job last of all
 4) If there is tie for minimum Ak=Br, process the kth job first of all and rth
job is the last.
5) If the tie for the minimum occurs among the Ai, select the job
corresponding to the minimum of Bi and process it first of all.
6) If the tie for minimum occurs among the Bi select the job
corresponding to the minimum of Ai and process it in the last. Go to
next step
7) Cross the job already assigned and repeat steps 1 to 3 arranging the
jobs next to first or next to last, unitl all the jobs have been assigned

What are the Essential features of Queuing systems

The essential features of queuing systems are
1. Input source
2. Queue configuration
3. Queue Discipline
4. Service mechanism

What are the various characteristics of any queuing model, In M/M/1

system give the expression for average queue length.

Essential features of queuing systems are 1. Input source 2. Queue configuration

3. Queue discipline 4) Service mechanism.

Operating characteristics of queuing system;

1.Expected waiting time in queue

2.Expected waiting time in system

3.Expected number of customers in the queue(Queue length)

4.Expected number of customers in the system

5.Server utilization.

Model M/M/1 is derived based on certain assumptions.

1.Exponential distribution of inter-arrival times or poison distribution of arrival

rate.

2.Single waiting line with no restriction on length of queue and no balking or

renaging.

3. Queue discipline is first-come first-serve.

4.single server with exponential distribution of service times

Average queue length or expected number of customers waiting in the queue

Lq=λ2/µ(µ-λ)

Expected number of customers in the system is

Ls=λ/(µ-λ)

How do you describe a queuing system

The Mechanism of a queueing system is very simple,customers arrive a service

counter and are attended by one or more of the servers . Queuing system can be
described as consisting of customers arriving for service,waiting for service if it is
not immediate and leaving the system after being serviced.

Explain the various characteristics of interesting any queuing model

Various characteristics of Model is

1.Average number of customers in the system

2.Average queue length

3. Average Waiting time of the customers in the queue

4. Average waiting time of the customers in the system

5. Probability of the queue size being greater than n customers

What is transshipment problem

A transshipment problem in which available commodity frequently moves from

source to another source or destination before reaching its actual destination is
called a transshipment problem.
 ASSIGNMENTS
Solve following Graphically as well by simplex method

1) Max Z= 5x1+3x2 subject to 3x1+5x2≤ 15, 5x1+2x2≤10, x1,x2≥0 Ans:

x1=20/19, x2=45/19 Max Z= 235/19
2) Min Z= 20x1+10x2 subject to x1+2x2≤40, 3x1+x2≥30, 4x1+3x2≥60. X1,x2≥0
Ans: x1=6, x2=12, Min Z=240
3) Max Z= 2x1+x2 subject to x1+2x2≤10, x1+x2≤6, x1-x2≤2, x1-2x2≤1, x1,x2≥0
Ans: x1=4, x2=10 Max Z =10
4) Min Z=20x1+10x2 subject to x1+2x2≤40, 3x1+x2≥30, 4x1+3x2≥60, x1x2≥0 Ans
x1=6, x2=12 Min Z =240
5) Max Z= 7x1+3x2 subject to x1+2x2≤3, x1+x2≤4, x1≤5/2, x2≤3/2 , x1,x2≥0 Ans
x1=5/2, x2=3/2 Max Z=22
6) Max Z= 2x1+x2 subject to x1+2x2≤10, x1+x2≤6, x1-x2≤2, x1-2x2≤1, x1,x2≥0
Ans x1=4, x2=2 Max Z =10

Solve by Simplex method/Big M method/Two-phase method

1) Max Z =3x1+5x2 + 4x3 subject to 2x1+3x2≤8, 2x2+5x3≤10, 3x1+2x2+4x3≤15,

x1,x2,x3≥0 Ans x1=89/41, x2=50/41, x3=62/41 Max Z =765/41
2) Max Z = 2x+4y+3z subject to 3x+4y+2z≤60, 2x+y+2z≤40, x+3y+2z≤80,
x,y.z≥0 Ans: x=0, y=20/3, z=50/7 Max Z= 250/3
3) Max Z = 30x1+23x2+29x3 subject to 6x1+5x2+3x3≤52, 6x1+2x2+5x3≤14 ,
x1,x2,x3≥0 Ans x1=0, x2=7, x3=0 Max Z =161
4) Min Z=x1+x2+3x3 subject to 3x1+2x2+x3≤3, 2x1+x2+2x3≥3, x1,x2,x3≥0 Ans:
x1=3/4, x2=0, x3=3/4 Min Z= 3
5) Max Z= 500x1+1400x2+900 x3 subject to x1+x2+x3=100,
12x1+30x2+15x3≥25, 8x1+3x2+4x3≥6, x1,x2,x3≥0 Ans x1=23/3, x2=5, x3=0
Max Z= 85/3
6) Max Z= 2x1+3x2+10x3 subject to x1+2x3=0, x2+x3=1 x1,x2,x3≥0 Ans: x1=0,
x2=1, x3=0 Max Z =3
Solve by Dual simplex method
Min Z =2x1+2x2 subject to x1+2x2≥1, 2x1+x2≥1, x1,x2≥0 x1=1/3, x2=1/3 Min Z = 4/3

Formulate the following LPP and solve by graphical/simplex/two phase or Big M

method

1) A manufacturer of leather belts makes three types of belts A,B, C which

are processed on three machines M1,M2,M3. Belt A requires 2 hours on M1,
3 hours on M3. Belt B requires 3 hours on M1, 2 hours on Machine M2 and
2 hours on M3 and Belt C requires 5 hours on machine M2 and 4 hours on
M3. There are 8 hours of time per day available on machine M1, 10 hours
per day available on M2, and 15 hours on M3. The profits gained from Belt
A is Rs. 3 per unit from Belt B Rs. 5 per unit and from Belt C Rs. 4 per
 unit, what should be the daily production of each type of belts so that profit
is maximum.
2) A farmer has 1000 acres of land on which he can grow corn,wheat or
soyabeans. Each acre of corn costs Rs.100 for preparation, requires 7
man days of work and yields a profit of Rs.30. An acre of wheat costgs
Rs.120 to prepare requires 10 man days of work and yields a profit of
Rs.40. An acre of soyabeans costs Rs. 70 to prepare requires 8 man days
of work and yields a profit of Rs. 20. If the farmer has Rs.1,00,000 for
preparation and can count on 8000 man days of work, how many acres
should be allocated to each crop to maximize profit. Ans x1=250, x2=625,
x3=0 Max Z =32,500
3) A teacher gives his students three long lists of problems with the
instruction to submit not more than 100 of them correctly solved, for credit.
The problems in he first list are of 5 points each, in second 4 points each
and in third 6 points each. On an average 3 minutes are required to solve
a problem from first list, 2 minutes for problem from the second and 4
minutes for a problem from third. The student devote more than 3.5 hours
for mathematics. The first two list of problems involve numerical
calculations and the students cannot do more than 2.5 hours of numerical
work. How many problems from each list a student should solve so as to
get maximum credit.
4) The xyz company manufactures two products A and B. These products
are processed on the same machine. It takes 25 minutes to process on
unit of product A and 15 minutes for each unit of product B and the
machine operates for a maximum of 35 hours in a week. Product A
requires 1 kg of the raw material per unit, the supply of which is 170 kgs
per week. If the net income from the products are Rs.100 and rs.450 per
unit respectively and manufacturing costs are proportional to the square of
the quantity made for each product, find how much of each product should
be produced per week in order to maximize profits. Ans B=68, A=0 Max
Z= 30600
5) A manufacturer has two products P1 and P2, both of them are produced in
two steps by machines M1 and M2. The process times per hundred for the
products on the machines are:
M1 M2 Contribution (per
hundred)
P1 4 5 10
P2 5 2 5
Available(hours) 100 80

The manufacturer is in a market upswing and can sell as much as he can

produce both products. Formulate the mathematical model and determine
optimum product mix using simplex method Ans; x1=20000/17, x2=18000/17
 6) A caterer knows that he will need 40 napkins on a given day and 70
napkins the day after. He can purchase napkins at 20 paise each and,
after they are purchased, he can have dirty napkins laundered at 5 paise
each for using the next day. In order to minimize the costs, how may
napkins should be purchased initially and how many dirty napkins should
have laundered. Max Z= 0.20 x1+0.05 x2 subject to x1≥70, x2≥40 , x1,x2≥0
Ans. X1=70 x2 = 40
7) A manufacturer makes two products P1 and P2 using two machines M1 and
M2. Product P1 requires 2 hours on machine M1 and 6 hours on M2.
Product P2 requires 5 hours on machine M1 and no time on machine M2.
There are 16 hours of time per day available on machine M1 and 30 hours
on M2. Profit margin from P1 and P2 is Rs. 2 and Rs.10 per unit
respectively. What should be the daily production mix to optimize the profit
Ans; P1=3.2, P2=0 Mx Z= 16
8) A company produces two types of leather belts say A and B. Belt A is
superior quality and belt B is of lower quality. Profits on two types of belts
are 40 and 30 paise per belt respectively. Each belt of type A requires
twice as much time as required by a belt of type B. If all belts of type B,
the company would produce 1000 belts per day. But the supply of leather
is sufficient only for 800 per day. Belt A requires a fancy buckle and 400
fancy buckles are available for this, per day. For belt of type B, only 700
buckles are available per day. How should the company manufacture the
two types of belt in order to have maximum overall profit. Max z= 0.40
x1+0.30x2 subject to x1+x2≤ 800, 2x1+x2 ≤1000, x1≤400 x2≤700 ans x1=200,
x2= 600 Max Z= 260.

Assignment on Transportation Problem

Mathematical form of Transportation is

Min Z = ∑ ∑ cij xij i= 1 to m j = 1 to n subject to

∑xij = aitotal supply i= 1 to m ∑ xij = bj total demandj=1 to n

Solve Transportation problem

1)

D1 D2 D3 D4 Supply
O1 5 3 6 2 19
O2 4 7 9 1 37
O3 3 4 7 5 34
Demand 16 18 31 25

Optimal solution, O1D2,O1D3,02D1,O2D4,O3D1,O3D3 Min cost =355

2) Solve TP

p q r s t Supply
a 2 3 5 7 5 17
b 4 1 2 1 6 13
c 2 8 6 1 3 16
d 5 3 7 2 4 20
Demand 15 16 15 10 10

3)Find IBFS by north west corner rule and find out optimal solution by MODI
p q r s Supply
a 10 7 3 6 3
b 1 6 7 3 5
c 7 4 5 3 7
demand 3 2 6 4

4) Find IBFS by north west corner rule and find optimal solution by MODI

p q r Supply
A 0 2 0 70
B 1 4 0 30
C 0 2 4 50
demand 70 50 30 150

5) Solve the following unbalanced TP

p q r Supply
A 4 3 2 10
B 2 5 6 13
C 3 8 6 12
demand 8 5 4

7) A leading firm has three auditors. Each auditor can work upto 160 hours
during the next month, during which time three projects must be
completed. Project I will take 130 hours, project 2 will take 140 hours,
project 3 will take 160 hours. The amount per hour that can be billed for
assigning each auditor to each project is given in the table.
Project
Auditor 1 2 3 Available
A 1200 1500 1900 160
B 1400 1300 1200 160
C 1600 1400 1500 160
Required 130 140 160
Find the optimum solution and also find out maximum total billings during the
next month.

Assignment Problem

The objective of the assignment problem is to assign the jobs/tasks to each

person to get minimum cost/time etc. Mathematical formulation of assignment
problem is

Min Z = ∑ ∑ cij xij i= 1 to m j = 1 to n subject to

∑ xij =1 I = 1 to m ∑ xij =1 j = 1to n
Solve the following assignment problem
1)
a b c d e
A 160 130 175 190 200
B 135 120 130 160 175
C 140 110 155 170 185
D 50 50 80 80 110
E 55 35 70 80 105

2)
a b c d e
A 45 30 65 40 55
B 50 30 25 60 30
C 25 20 15 20 40
D 35 25 30 30 20
E 80 60 60 70 50

3)
a b c d e
A 11 10 18 5 9
B 14 13 12 19 6
C 5 3 4 2 4
D 15 18 17 9 12
E 10 11 19 6 14

4)
W X Y Z
A 18 24 28 32
B 8 13 17 19
C 10 15 19 22
5) Solve the assignment problem to maximize the profit

a b c d e
A 5 11 10 12 4
B 2 4 9 3 5
C 3 12 5 14 6
D 6 14 4 11 7
E 7 9 8 12 5

Game Theory

Solve the following game

1) 2)
-1 -2 8 3 -1 1 2
7 5 -1 -2 3 2 3
6 0 12 2 -2 -1 1

3)

1 -1 -2
-1 1 1
2 -1 0

4)

5 -2 3
4 2 7
-4 5 -2

Solve by graphically
1)
B1 B2 B3 B4
A1 2 1 0 -2
A2 1 0 3 3

2)
B1 B2 B3
A1 -4 3 -1
A2 6 -4 -2

3)
B1 B2
A1 2 7
A2 3 5
A3 11 2
Job Sequencing

find the sequence which minimizes elapsed time and hence find idle time of
machines
1)

Jobs 1 2 3 4 5
M/A 3 7 4 5 7
M/B 6 2 7 3 4

2)
Jobs 1 2 3 4 5 6
M/A 5 9 4 7 8 6
M/B 7 4 8 3 9 5

3)
Jobs 1 2 3 4 5
M/A 4 9 8 6 5
M/B 5 6 2 3 4
M/C 8 10 6 7 11

4)
Jobs 1 2 3 4 5 6 7
M/A 12 6 5 11 5 7 6
M/B 7 8 9 4 7 8 3
M/C 3 4 1 5 2 3 4