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Q1. Describe in Details The Different Scopes of Application of Operations Research
Q1. Describe in Details The Different Scopes of Application of Operations Research
Q1. Describe in Details The Different Scopes of Application of Operations Research
Q1.
Ans:
1. In defense Operation: In modern warfare the defense operations are carried out by
independent components namely Air Force, Army and Navy. Activities of each of
these components can be further divided in to sub components namely
Administration, Intelligence, Operations, Supplies, Training etc. The application of
modern warfare technique in each of these components requires expertise in
respective field. Further, each component works to derive maximum gains from it
operation. There is always a possibility that strategy beneficial to one component
may have an adverse effect on the other. In view of this, in defense operation there
is a necessity to co ordinate the activities of various components which gives
maximum benefit to the defense force as a whole having maximum use of individual
components. The final strategy is therefore prepared by a team of experts drawn
from various disciplines who studies the strategies of different components and after
appropriate analysis of various course of action, the best course of action (known as
optimum strategy) is chosen.
2. In Industry: The systems of modern industries are so complex that the optimum
point of operation in its various components cannot be accurately judged by
individuals. In view of the changing business environment any business decision
suitable at one time may not be so good some time. There is always a need for to
check the validity of a decision continually, against the given situation. The industrial
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3. Planning : Careful planning has become imperative for governments in the modern
times to ensure economic development of the nation. Since the requirement and
resources are diverse and at time one requirement is not in agreement with some
other requirement sacrifices of some factors becomes inevitable. OR techniques
can effectively be employed to maximize the per capita income with minimum
sacrifice and time. Thus a government can use OR for charting its economic
decisions and social policies in an optimum way with best use of the resources at its
commend.
Q2.
Ans:
2. Requirement of L.P.P.
3. Additivity: The value of the object function for the given values of decision
variable and the total sum of resources used, must be equal to the sum of the
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contributions earned from each decision variable and sum of the resources used
by decision variable respectively.
4. Divisibility: The solution of decision variables and resource can be any non-
negative values including fractions.
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2. Introduce surplus variable (S1S ) and artificial Variable (A) for > or = type of
constraints.
4. Cost (C1) of slack and surplus variable will be zero and that of artificial
variable will be “M”
6. Slack and Artificial variables will form basic variable for the first Simplex
Table. Surplus variable will never become the basic variable for the for the
first simplex table.
8. Select the most negative value of the Zj-Cj. That column is called the key
column. The variable corresponding to this column will become the basic
variable for the next table.
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9. Divide the quantities by corresponding values of the key column to get ratios
and select the minimum ratio. This becomes the key row. The basic variable
corresponding to this row will be replaced by the variable fond in step 6
10. The element that lies both in key column and key row is called Pivotal
Element
11. Ratio with negative values and “ α ” are not considered for determining the
key row.
12. Once an artificial variable is removed as basic variable, its column will be
deleted from the next iteration.
The economic interpretation of the dual problem depends on the economic situation
embodied in the primal problem. Therefore, we can only explore an approach for
developing an economic interpretation.
Thus, consider profit-maximization, product-mix, primal example:
Find x1 , x 2 , x 3 and z to :
Maximize z =1000 x1 +1200 x 2 + 900 x3
s u b je c t :to 3x1 + 5 x2 + 4 x3 ≤ 8 0
5 x1 + 6 x2 + 4 x3 ≤ 4 8 0
1x1 + 0.5 x2 + 0.7 x3 ≤ 1 0
x j ≥ 0 fo r j = 1,2,3
And its dual:
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Find u1 , u 2 , u 3 and v to :
Minimize v = 80 u1 + 480 u 2 +10 u3
subject to:
3( mhr / up1) x1 (up1 / wk ) + 5( mhr / up 2 ) x2 (up 2 / wk ) + 4( mhr / up 3) x3 (up 3 / wk ) ≤ 80 ( mhr / wk )
5(lhr / up1) x1 (up1 / wk ) + 6(lhr / up 2 ) x2 (up 2 / wk ) + 4(lhr / up 3) x3 (up 3 / wk ) ≤ 480 (lhr / wk )
1(tons / up1) x1 (up1 / wk ) + 0.5(tons / up 2 ) x2 (up 2 / wk ) + 0.7(tons / up 3) x3 (up 3 / wk ) ≤10 (tons / wk )
x j ≥ 0 for j = 1,2,3
Now consider the first constraint of the dual problem with dimensional units placed on
the data only.
Since the dimensional units on the left hand side of a constraint must match the
dimensional units on the right hand side of the constraint, then it is easily seen that the
dimensional units for u i must be $/mhr when i = 1, $/lhr when i = 2, and $/ton when i =
3.
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It is now possible to interpret the dual problem and its variables in the context of a
product mix primal problem. Each dual variable decides on a monetary value for one
unit of each of the resources consumed in the production of our products. In deciding
on these values the dual problem seeks to minimize the total value (in profit $) of all the
resources that are available each week. Each structural dual constraint ensures that
the total value assigned to the resources used by each unit of a product is at least as
large as the profit earned by a unit of that product. The value assigned by the dual
problem to the resources is an internal value determined only by the profit that can be
generated by producing the products. In other words it is not a real value such as the
cost of buying the resource on the open market. The actual cost of the resources is
determined in the market places for labor, machines, and the raw material and has
nothing to do with the internal value decided by the dual problem.
Suppose that another manufacturer wants to rent our machinery, rent our labor force,
and buy our raw materials from us. The manufacturer may prefer to buy the raw
materials on the open market, but since we have a long-term contract to take delivery of
the raw material supply every week, we would insist that he buy them from us as part of
the rental deal. Similarly, he may prefer to hire his own labor force, but out of loyalty to
our employees we would insist that we keep them on payroll and he simply rent the
labor from us. A key question is what weekly rate above our direct costs should the
other manufacturer pay for the equipment, the labor and the materials? In other words,
what is the total direct profit we should receive from renting our resources instead of
using them to produce our products? The dual variables, then, are the decision
variables to answer that question. The dual objective function: v = 80 u1 + 480 u 2 +10 u3
represents the total amount of profit, in excess or our direct cost, the manufacturer
would pay to rent our equipment, labor, and to buy our materials. Naturally, the other
manufacturer would like to minimize that total amount as is done in the dual problem.
Now consider the dual constraints:
3u1 + 5u 2 + 1u3 ≥ 1 0 0 0
5u1 + 6u 2 + 0.5u3 ≥ 1 2 0 0
4u1 + 4u 2 + 0.7u3 ≥ 9 0 0
ui ≥ 0 fo ri = 1,2,3
The left hand side of the first constraint represents the profit (from renting) that would be
made on exactly those resources required to for us to manufacture one unit of product
1. The right hand side of the constraint is the amount of profit we make from selling one
unit of product 1. So the constraint indicates that the vector of profits per unit of
resource, (u1 , u 2 , u3 ) , must earn at least as much profit on the resources required to
make product 1 as the profit on product 1 — otherwise, we would prefer not to rent out
equipment and labor and sell the raw materials. Similarly, constraints 2 and 3 ensure
that the profit on renting resources needed to manufacture products 2 and 3 is at least
as good as the profit from selling the products.
Thus, the dual problem belongs to the other manufacturer who is trying to figure out
what monetary offer she should make to rent our property, our labor, and buy our
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supplies in order to minimize the profit we would make (and her costs) while at the
same time knowing that the offer is constrained to be good enough to encourage us to
take the offer instead of manufacturing our own products.
Q5. How can you use the Matrix Minimum method to find the initial basic
feasible solution in the transportation problem.
Ans:
Step 1 : Determine the smallest cost in the cost matrix of the transportation table.
Let it be cij. Allocate xij = min (a,b) in the cell (I,j)
Step 2 : If xij=ai cross off the ith row of the transportation table and decrease aj by
bj go to step 3.
If xij = aj = bj cross off either the ith row or the ith column, but not both.
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Step 3: Repeat steps1 and 2 for the resulting reduced transportation table until
all the rim requirement are satisfied whenever the minimum cost is not unique
make an arbitrary choice amoung the minima.
Q6. Describe the Integer Programming Problem. Describe the Gomory’s All-
I.P.P. method for solving the I.P.P. problem.