Quantitative Techniques

A PROJECT ON

LPP
GAME THEORY
QUEUING THEORY
TRANSPORTATION

Under the guidance of

Prof. Shagun Srivastava

BY:
Ananya Sampat | K040
Prasad Sawant | K043
Ayush Sinha | K054
Harsh Bhatia | K066
Odyel Pereira | K068
LPP
Linear Programming Problems (LPP) are problems that are focused with
determining the best value for a given linear function. The optimal value
can be either the maximum or the minimum. The supplied linear function
is regarded as an objective function in this context. The objective function
might have several variables that are subject to conditions, and it must
meet a set of linear inequalities known as linear constraints. Linear
programming problems can be utilised to find the best answer for a variety
of circumstances, including production challenges, diet problems,
transportation problems, allocation problems, and so on.

In a daily diet problem, A mother wishes to mix two types of biscuits Parle
G and Marie in such a way that the vitamin contents of the mixture contain
at least 8 units of vitamin A and 11 units of vitamin B. Food Parle G Costs
Rs 60/Kg and Marie costs Rs 80/kg. Food parle G contains 3 units/kg of
vitamin A and 5 units/kg of vitamin B while Food Marie contains 4 units/kg
of vitamin A and 2 units/kg of vitamin B. We formulated this problem as a
linear programming problem to minimize the cost of the mixtures.

Food (in KG)

Vitamin Content Requirement (in units)
Parle G Marie
Vitamin A 3 4 8
Vitamin B 5 2 11
Cost (Rs/Kg) 60 80

Constraints & Formulation

1. The kgs of the PARLE G and MARIE in the mixture are our decision variables.
Suppose the mixture has X Kg of Food PARLE G and Y Kg of food MARIE.

2. The constraints are the minimum requirements of the vitamins. The minimum
requirement of vitamin A is 8 units. Therefore 3X + 4Y ≥ 8. Similarly, the
minimum requirement of vitamin B is 11 units. Therefore, 5X + 2Y ≥ 11

3. The cost of purchasing 1 Kg of food PARLE G is Rs 60. The cost of purchasing

1 Kg of Marie is Rs 80. The total cost of purchasing X Kg of food Parle and Y Kg
of food MARIE is C = 60X + 80Y, which is the objective function.

4. The non-negativity conditions are X ≥ 0, Y ≥ 0

Interpretation of The Solution
The mother to meet the given needs should use 2 Units of Parle G and half
a unit of Marie biscuits. So that she can attain the goal of 8 units of Vitamin
A and 11 Units of Vitamin B
Transportation
The transportation problem is a special type of linear programming problem
where the objective is to minimise the cost of distributing a product from a
number of sources or origins to a number of destinations. Because of its
special structure the usual simplex method is not suitable for solving
transportation problems. These problems require a special method of
solution. The origin of a transportation problem is the location from which
shipments are despatched. The destination of a transportation problem is
the location to which shipments are transported. The unit transportation
cost is the cost of transporting one unit of the consignment from an origin
to a destination.
Here
The Kimley Company has three plants located throughout a state with
production capacity 50, 75 and 25 gallons of water. Each day the firm must
furnish its four retail shops R1, R2, R3, & R4 with at least 20, 20, 50 and
60 gallons respectively. The transportation costs (in Rs.) are given below.

The economic problem is to distribute the available product to different

retail shops in such a way so that the total transportation cost is minimum?
Queueing Theory
Queuing theory is a branch of mathematics that studies how lines form,
how they function, and why they malfunction. Queuing theory examines
every component of waiting in line, including the arrival process, service
process, number of servers, number of system places, and the number of
customers—which might be people, data packets, cars, or anything else.
Real-life applications of queuing theory cover a wide range of businesses.
Its findings may be used to provide faster customer service, increase
traffic flow, improve order shipments from a warehouse, or design data
networks and call centres.
Here we have taken the example of Garys car wash station
We examine a double-server system. At Gary’s Car Wash the average
time to wash a car is eight minutes, and the time is exponentially
distributed. Cars arrive at a rate of 2 every five minutes and the number
of arrivals per time period is described by the Poisson distribution.
First, we examine our times and see if they are given in rates. They must
be given in units per measure of time, a rate. If a car arrives every five
minutes, we need to convert that over to an arrival rate – in this case if a
car arrives every five minutes, we know that 24 will arrive in an hour
(60/2.5 = 24). Now we had our arrival rate in terms of units per measure
of time, or in this case, units per hour. Similarly, we examine our time to
wash a car (our service time) and ensure it is reflected in the same
manner. If we wash a car in four minutes, we know that we can wash 30
in an hour (60/2 = 30). Now we have our service rate in terms of units
per measure of time, or in this case, units per hour
Game Theory
Game theory analyzes strategic interactions in which the outcome of one's
choices depends upon the choices of others. For a situation to be
considered a game, there must be at least two rational players who take
into account one another's actions when formulating their own strategies.
If one does not consider the actions of other players, then the problem
becomes one of standard decision analysis, and one is likely to arrive at a
strategy that is not optimal.
For example, a company that reduces prices to increase sales and
therefore increase profit may lose money if other players respond with
price cuts. As another example, consider a risk averse company that
makes its decisions by maximizing its minimum payoff (maxmin strategy)
without considering the reactions of its opponents. In such a case, the
minimum payoff might be one that would not have occurred anyway
because the opponent might never find it optimal to implement a strategy
that would make it come about.
In many situations, it is crucial to consider the moves of one's
opponent(s). Game theory assumes that one has opponents who are
adjusting their strategies according to what they believe everybody else is
doing. The exact level of sophistication of the opponents should be part of
one's strategy. If the opponent makes his/her decisions randomly, then
one's strategy might be very different than it would be if the opponent is
considering other's moves.
To analyze such a game, one puts oneself in the other player's shoes,
recognizing that the opponent, being clever, is doing the same. When this
consideration of the other player's moves continues indefinitely, the result
is an infinite regress. Game theory provides the tools to analyze such
problems. Game theory can be used to analyze a wide range of strategic
interaction environments including oligopolies, sports, and politics. Many
product failures can be attributed to the failure to consider adequately the
responses of competitors. Game theory forces one to consider the range
of a rival's responses
Here we Consider a modified form of " matching dies" game problem. The
matching player is paid Rs. 16.00 if the two coins turn both 6s and Rs.
2.00 if the coins turn both 1s. The non-matching player is paid Rs. 6.00
when the two dies do not match. Given the choice of being the matching
or non-matching player, which one would one choose