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OPERATIONS RESEARCH:

INTRODUCTION TO OR:

What is Operations Research

Operations Research is a discipline that deals with the application of advanced analytical methods to help make better
decisions.

Operations Research is the application of scientific methods, techniques and tools , it is a collection of different
quantitative methods which can be used for solving problems in various functional ( operations of systems) areas such
as: production, transportation, physical distribution, project management etc.

Example: A automobile manufacturer puts together an motorcycle in 10seconds, an electronics company assembles a
refrigerator in 5 seconds, Tata’s is able to manufacture a low-cost ‘people’s car’ .

All the above is accomplished by division of labour through segmentation of departments, development of vendors,
efficient manufacturing processes, etc.

In all these cases our objective is to maximize the profits and minimize the costs of all allocable resources. Since the
resources are scarce, our objective is to efficiently allocate the scarce resources.

During the Second World War, Operations Research was used to find solutions on how to use scarce military resources
to fight war.

OPRERATIONS RESEARCH TECHNIQUES:

Quantitative techniques can be classified in two groups, Statistical techniques and programming
techniques.

 Statistical techniques: Statistical techniques are applied in Statistics for data collection,
data organization and data analysis. It’s a collection of methods with the help of which you
can describe, display the data that has been collected. Like
1. Mean, median and mode.
2. Mean deviation, standard deviation.
3. Theory of probability.
4. Correlation and Regression analysis.
5. Sampling techniques.
 Programming techniques: This is also a collection of methods or techniques which involve
in building mathematical models, formulation, substituting data in the mathematical
models, testing the model, using appropriate OR techniques to get optimal solution like:
1. Linear programming.
2. Transportation problems.
3. Assignment problems.
4. Critical path method.
5. Queuing Models.
6. Digital Simulation Concepts.
7. Replacement and Maintenance Models.
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8. Game Theory.
9. Inventory Management.

ASSIGNMENT PROBLEMS:

Assignment means one to one allocation, the assignment model essentially tries to address the
issue of getting the best from every allocation using Hungarian Assignment Method ( HAM ) and
the use of this method allows a manager to address the following questions:

1. How to assign jobs to workers according to their experience or, in other words, to ensure
the best efficiency of output.
2. How to deal with situations wherein some allocations are not possible due to technical
reasons, or in the case of absence of some workers which machines are to be kept idle and
which machines are to be allotted in the best interests of efficiency?
3. If the manager has to get the best out of the field staff, then which staff should be allotted
to which territory in order to maximize the returns.
4. How to get the best schedule for inbound and outbound transport combinations where the
least crew layover time is an important decision criterion?
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Q1). Consider the following matrix shown which shows the time taken in minutes by 4
workers to the jobs A, B, C and D

Worker Job
A B C D
1 45 40 51 67
2 57 42 63 55
3 49 52 48 64
4 41 45 60 55
Solution:
Step 1: Ensure the given problem is a minimization problem.
Step 2: Ensure that the given matrix is a square matrix.
Step 3: Perform the row operation in the non-zero rows, means identifying the lowest cost
cell in each row and subtracting this element from all the elements in the corresponding
row.
Matrix after row operation

Worker Job
A B C D
1 5 0 11 27
2 15 0 21 13
3 1 4 0 16
4 0 4 19 14

Step 4: Perform the column operation in the non-zero columns, means identifying the lowest
cost cell in each column and subtracting this element from all the elements in the
corresponding column. Columns that have a zero would remain unaffected.

Matrix after row and column operations:

Worker Job
A B C D
1 5 0 11 14
2 15 0 21 0
3 1 4 0 3
4 0 4 19 1

Step 5: Draw minimum number of ( horizontal and vertical ) lines covering maximum number
of zeros. First cover those row/columns which contain larger number of zeros.( No diagonal
lines ).
Reduced cost table

Worker Job
A B C D
Draw
lines
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1 5 0 11 14
2 15 0 21 0
3 1 4 0 3
4 0 4 19 1
Step 6: Since the number of lines drawn = rank of the matrix ( here rank of the matrix is 4 ),
then this stage represents the optimal stage and we can start making allocations.
Start making allocations. We prefer to go row-wise for the allocations but a similar process
can also be followed column-wise with suitable modifications. Consider the row with the
least number of zeros and make the first allocation here. The zeros represent the possible
allocations, and once the allocation is made, all the other zeros in the corresponding row
and column have to be blocked off, in our problem, row 1 has the least number of zeros.
Hence, make the first allocation in row 1, which happens to be the allocation of worker 1 to
job B. Once this allocation has been made, the other zero(s) in column 1 must be struck off
as they cannot be considered for further allocation.

Assignments of Jobs

Worker Job
A B C D
1 5 0 11 14
2 15 0 21 0
3 1 4 0 3
4 0 4 19 1

Step 7: After every allocation it is important to know its cost. The allocation and the cost
of this allocation ( obtained from the initial data ) are as follows:
1. Worker 1 to Job B = 40 minutes.
2. Worker 2 to Job D = 55 minutes.
3. Worker 3 to Job C = 48 minutes.
4. Worker 4 to Job A = 41 minuutes.

Total = 184 minutes is the optimal solution.

Worker Job Time

1 B 40
2 D 55
3 C 48
4 A 41
Total
184minutes
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Q2). Using the following cost matrix, determine:

a). Optimal Job assignment.
b). The cost of assignments.

Machinist
J1
A 10
B 9
C 7
D 3
E 9
Job
J2 J3 J4 J5
3 3 2 8
7 8 2 7
5 6 2 4
5 8 2 4
10 9 6 10

Solution:
The given matrix is a square matrix, hence it is an balanced Assignment problem.
The problem is of cost the given problem is of minimization. [ HAM can be applied only on
minimization problems]
Matrix after row operation

Machinist
J1
A 8
B 7
C 5
D 1
E 3
Job
J2 J3
1 1
5 6
3 4
3 6
4 3
J4 J5
0 6
0 5
0 2
0 2
0 4

Matrix after row and column operation

Machinist
J1
A 7
B 6
C 4
D 0
E 2
Job
J2 J3
0 0
4 5
2 3
2 5
3 2
J4 J5
0 4
0 3
0 0
0 0
0 2

Reduced cost table

Draw Machinist Job

llllines J1 J2 J3 J4 J5
A 7 0 0 0 4
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B 6 4 5 0 3
C 4 2 3 0 0
D 0 2 5 0 0
E 2 3 2 0 2

The minimum number of lines drawn covering all zeros is = 4 which is not equal to the order
of the matrix ( order of the matrix = 5 ). So this stage does not represent the optimal stage,
we need to improve the solution. In order to do so, identify the smallest uncovered element.
In this case, it is = 2. Subtract this element from all the uncovered elements and add it to
the element at the intersection of the straight lines.
Reduced cost table

Machinist
J1
A 7
B 4
C 2
D 0
E 0
Job
J2 J3
0 0
2 3
0 1
2 5
1 0
J4 J5
2 6
0 3
0 0
2 2
0 2

Since the minimum number of lines drawn to cover all zeros = rank of the matrix, this stage
represents the optimal stage and we can start making allocations.

Assignment of jobs

Machinist
J1
assign
A 7
B 4
C 2
D 0
E 0
Job
J2 J3
0 0
2 3
0 1
2 5
1 0
J4 J5
2 6
0 3
0 0
2 2
0 2

The Assignment Pattern

Machinist Job Cost

A J2 3
B J4 2
C J5 4
D J1 3
E J3 9
Total Rs. 21
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SPECIAL CASES IN AP:

i).Maximization case:
Q3). A sales manager has to assign salesmen to four territories. He has four candidates of
varying experience and capabilities. The manager assesses the possiblr profit for each
salesmen in each territory as given below:

Salesmen Territory
T1 T2 T3 T4
S1 35 27 28 37
S2 28 34 29 40
S3 35 24 32 33
S4 24 32 25 28
Find the assignment of salesman to the territories so that total profit is maximum.
Solution:
The problem is balanced and is of Maximization type.
Highest profit in the table is = 40
TO SOLVE MAXIMIZATION PROBLEM BY HAM, WE SHOULD FIRST CONVERT THE PROBLEM
INTO MINIMIZATION. THE CONVERSION IS DONE BY FINDING THE REGRET MATRIX.
From the highest profit value of the original matrix, we subtract all profit values. The
resulting matrix is called regret matrix or opportunity loss matrix. Then we solve the
problem by using HAM.
Regret Matrix

Salesmen Territory
T1 T2 T3 T4
S1 5 13 12 3
S2 12 6 11 0
S3 5 16 8 7
S4 16 8 15 12

Row Minimization

Salesmen Territory
T1 T2 T3 T4
S1 2 10 9 0
S2 12 6 11 0
S3 0 11 3 2
S4 8 0 7 4
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Column Minimization

Salesmen Territory
T1 T2 T3 T4
S1 2 10 6 0
S2 12 6 8 0
S3 0 11 0 2
S4 8 0 4 4

Minimum number of lines drawn = 3

Order of the matrix =4
Not optimal
Least uncovered element = 2, i.e change = 2
Reduced cost table

Salesmen Territory
T1 T2 T3 T4
S1 0 8 4 0
S2 10 4 6 0
S3 0 11 0 4
S4 8 0 4 6
Minimum number of lines drawn = 4 = order of matrix
Optimal solution.
Assignment

Salesmen Territory
T1 T2 T3 T4
S1 0 8 4 0
S2 10 4 6 0
S3 0 11 0 4
S4 8 0 4 6

Assignment Schedule

Salesma Territory Profits

n
S1 T1 35
S2 T2 40
S3 T3 32
S4 T4 32
Total Rs. 139
Optimal profit = Rs. 139
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ii) MAXIMIZATION CASE PLUS ALTERNATE OPTIMAL SOLUTION.: The AP is of maximization

type if it involves profit, sales, revenue or production output data. In such cases
assignment would be made in such a way that the total expected revenue is maximized.
Q4).A company plans to assign 5 salesmen to 5 districts in which it operates. Estimates of
sales revenue in thousands of rupees for each salesman in different districts are given in
the following table. In your opinion, what should be the placement of the salesmen if the
objective is to maximize the expected sales revenue?

Expected sales data

Salesmen District
D1 D2 D3 D4 D5
S1 40 46 48 36 48
S2 48 32 36 29 44
S3 49 35 41 38 45
S4 30 46 49 44 44
S5 37 41 48 43 47
So this a maximization and balanced AP.
For solving the maximization problem by HAM, we have to first convert the maximization
problem into minimization problem, this conversion is done by finding the regret matrix.
Step 1: Identify the highest profit value of the original profit matrix, subtract each of the
entries in the matrix from the largest one. In this case it is = 49. The resulting matrix is
called Regret matrix or Opportunity loss matrix.

Salesmen District
D1 D2 D3 D4 D5
S1 9 3 1 13 1
S2 1 17 13 20 5
S3 0 14 8 11 4
S4 19 3 0 5 5
S5 12 8 1 6 2

Step 2: Now solve the problem normally using Hungarian assignment method.
Matrix row operation.

Salesmen District
D1 D2 D3 D4 D5
S1 8 2 0 12 0
S2 0 16 12 19 4
S3 0 14 8 11 4
S4 19 3 0 5 5
S5 11 7 0 5 1
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Matrix row and column operation.

Salesmen District
Draw lines
D1 D2 D3 D4 D5
S1 8 0 0 7 0
S2 0 14 12 14 4
S3 0 12 8 6 4
S4 19 1 0 0 5
S5 11 5 0 0 1
minimum number of lines drawn is =4 which is not = to the rank of the matrix( i.e 5)
Solution not optimal. The least uncovered element = 4

Reduced cost table.

Salesmen Districts
D1 D2 D3 D4 D5
S1 12 0 0 7 0
S2 0 10 8 10 0
S3 0 8 4 2 0
S4 23 1 0 0 5
S5 15 5 0 0 1
Check the minimum number of lines drawn is = to the rank of the matrix = 5
Therefore optimal solution.
Hence Optimal assignment can be made.
NOTE: Here various rows and columns, where assignments are yet to be done, have all
multiple zeros, therefore there is more than one optimal assignments possible.

Reduced cost table.

Salesmen Districts
D1 D2 D3 D4 D5
S1 12 0 0 7 0
S2 0 10 8 10 0
S3 0 8 4 2 0
S4 23 1 0 0 5
S5 15 5 0 0 1
One of the assignment is:

Salesmen Districts Profit

S1 D2 46
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S2 D1 48
S3 D5 45
S4 D3 49
S5 D4 43
Total 231
Total sales = 231 thousands of Rupees.

iii). Unbalanced AP:

Q5). A company has 4 machines to do 3 jobs. Each job can be assigned to only one
machine. The cost of each job-machine combination is given in the table below in Rupees.

Job Machines
M1 M2 M3 M4
J1 9 12 14 18
J2 4 6 8 9
J3 5 7 9 11
Find the optimal assignment which will minimize the cost.
Solution:
It is an unbalanced ( number of rows is not equal to the number of columns) minimization
AP.
In such cases of unbalanced AP, dummy columns/rows which ever is smallest in number
are inserted with zeros as the cost elements. Then the problem is solved in the usual
manner.
Number of rows is < number of columns. So we add a dummy row with all entries as zeros.

Job Machines
M1 M2 M3 M4
J1 9 12 14 18
J2 4 6 8 9
J3 5 7 9 11
J4(dummy) 0 0 0 0

Matrix row operation

Job Machines
M1 M2 M3 M4
J1 0 3 5 9
J2 0 2 4 5
J3 0 2 4 6
J4(dummy) 0 0 0 0

Matrix row and column operation

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Job Machines
M1 M2 M3 M4
J1 0 3 5 9
J2 0 2 4 5
J3 0 2 4 6
J4(dummy) 0 0 0 0

NOTE: Matrix row operation and Matrix row and column operation matrices are same
because the there is at least one zero in each column. So the minimum value in each
column is = 0.
In the above matrix itself you can draw minimum number of lines to cover maximum zeros.
Check whether number of lines drawn is = the order of the matrix.
Number of lines drawn = 2 which is not equal to the order of the matrix ( order of the matrix
= 4). Therefore not optimal
The least uncovered element = 2, hence change = 2

Reduced cost table

Job Machines
M1 M2 M3 M4
J1 0 1 3 7
J2 0 0 2 3
J3 0 0 2 4
J4(dummy) 2 0 0 0
Minimum number of lines drawn = 3 which is not equal to the order of the matrix(i.e 4 )
Not optimal. The least uncovered element = 2
Reduced cost table

Job Machines
M1 M2 M3 M4
J1 0 1 1 5
J2 0 0 0 1
J3 0 0 0 2
J4(dummy) 4 2 0 0

Assignment

Job Machines
M1 M2 M3 M4
J1 0 1 1 5
J2 0 0 0 1
J3 0 0 0 2
J4(dummy) 4 2 0 0
Minimum number of lines drawn = 4 which is equal to the order of the matrix ( i.e 4 )
Therefore optimal solution. You can give the assignments.
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Assignment Schedule

Job Machine Cost in Rs.

A I 9
B II 6
C III 9
D IV Zero
Total Rs. 24
Optimal Cost = Rs. 24

Q6). Iv). Prohibited AP

The following information is available regarding four different jobs to be performed and
about the clerks capable of performing the jobs. Cost of each assignment is given in the
table below:

Clerks Jobs( cost in hundred rupees )

A B C D
I 4 7 5 6
II ------ 8 7 6
III 3 ------ 5 3
IV 8 6 4 2
Clerk II cannot be assigned to job A and Clerk III cannot be assigned to job B. You are
required to find out the optimal assignment schedule and the total minimum cost of
performing the jobs by using HAM.