NAME :

ROLL NUMBER :

CLASS : MBA

ASSIGNMENT : MBA – 205 – OPERATIONS RESEARCH

MUJ MAIL ID : @mujonline.edu.in

Assignment _- Set 1 Answers

Q1) What is Operations Research (OR)? Discuss the significance and scope of Operation
Research.

Ans) Operations Research is the application of scientific methods, techniques and tools
to the operation of a system with optimum solutions to the problems where optimum
refers to the best possible alternative where the objective is to provide a scientific basis
to the decision makers for solving problems involving interaction with various
components of the organization which can be achieved by employing a team of scientists
from different disciplines to work together for finding the best possible solution in the
interest of the organization as a whole where the solution is obtained which is known as
optimal decision where the use of scientific methods to provide criteria for decisions
regarding man, machine and systems involving repetitive operations.The scope of
operation research is that it is used in defense operations wherein modern warfare the
three major military components namely Air Force,Army, and Navy carry out the defense
operations where the activities in each of these components can be further divided into
four sub-components which is administration,intelligence,operations,training and supply
where the application of modern warfare techniques in each of the components of
military organizations require expert knowledge in respective fields where furthermore
each component works to drive maximum gains from its operations where there is
always a possibility that the strategy beneficial to one component may be unfeasible to
another component where in defense operations there is a requirement to coordinate the
activities of various components which gives maximum benefit to the organization as a
whole having the maximum use of individual components where a team of scientists
from various disciplines get together to study the strategies of different components
where after appropriate analysis of the various courses of actions the team selects the
best course of action which is known as the optimum strategy.For industrial purpose the
system of modern industries is so complex that an individual cannot intuitively judge the
optimum point of operation in its various components where the business environment
is always changing and my decision useful at one time may not be suitable for other time
because there is always a need to check the validity of decisions continuously against
the situations where the industrial revolution has increased division of labour and
introduction of management responsibilities has made each component an independent
unit having its own goals like for instance the production department minimizes the cost
of production but maximizes cost of unit sales where finance department tries to
optimize the capital investment and personnel department appoints good people at
minimum cost where each department plans its own objectives and all these objectives
of various departments or components come to conflict with one another which may not
agree to the overall objectives of the organization where the application of operation
research techniques helps in overcoming this difficulty by integrating the diversified
activities of various components to efficiently serve the interest of the organization
completely where methods in industry can be applied in the fields of
production,inventory controls and marketing,purchasing, transportation and competitive
strategies. Planning wherein modern times it has become necessary for every
government to carefully plan for the economic development of the country where
techniques can be fruitfully applied to maximize the per capita income with minimum
sacrifice and time where a government can use future framing economic and social
policies.Operation research has a scope in agriculture also since with increase in
population there is a need to increase agricultural output where this cannot be done
arbitrarily where there are several restrictions that need to determine a course of action
that serves the best under the given restrictions where we can solve the problem by
applying operation research techniques.Operation research methods are also used in
hospitals as it can solve waiting problems in outpatient department of big hospitals and
administrative problems of the hospital organisations.Different Operation Research
methods can be applied in transport to regulate the arrival of trains and processing times
to minimize the passengers waiting time and reduce congestion by formulating suitable
transportation policy hence reducing costs and time of transshipment.Operation
research methodologies are used in research and development as it can be applied in the
field of R&D for several purposes such as to control and plan product introductions.

Q2)
Solve the following linear programming problem Max Z =20x1 +10x Subject
to: x1+x2
x1<40
x2>20
where x1,x2>0
Ans 2 (a) :

Graphical solution of solved linear programming problem

x1+x2=150

x1 150 0

x2 0 150

Feasible region ABCD

Coordinate
A=(0,20)
B=(40,20)
C=(40,110)
D=(0,150) Z=20x1+10x2
Za=20 x 0 +10 x 20
=0+200= 200

Zb=20 x 40 + 10 x 20
= 800+200=1000

Zc=20 x 40 + 10 x 110
=800+1100+1900

Zd=20 x 0 +10 x 150

= 0+1500=1500

We choose point C(40,110) as the final solution which maximizes

The given problem

Q2 ( b ) Discuss in brief duality in linear programming problem.How to interpret the

primal dual relationship?

Ans2 (b) - The dual formulation is derived from the same data and solved in a manner
similar to the original primal formulation where we can say that dual is the inverse of the
primal formulation because of the following reasons when the primal objective function
is maximization function then the dual objective function is minimisation function and
vice versa and when the column coefficient in the primal constraint is the row coefficient
in the dual constraint and when the coefficients in the primal objective function are in the
right hand side constraint in the dual constraint then the right hand side column of
constraints of the primal constraints becomes the coefficient of the dual objective
function where the concept of duality is used to obtain dual additional information about
variation in optimal solution where these changes could be affected in the constraint
coefficient in resource availabilities and objective function coefficient where this effect is
termed as post optimality or sensitivity analysis where the primal contains a large
number of constraints and a smaller number of variables then the labour of computation
can be considerably reduced by converting it into the dual problem and then solving it
where the interpretation of dual variable from the loss or economic point of view proves
extremely useful in planning future decisions. If the primal problem possesses a unique
non-degenerate,optimal solution then the optimal solution to the dual is unique but
however dual solutions arise under a number of other conditions which are as follows
where one is when the primal problem has a degenerate optimal solution then the dual
has multiple optimal solutions,the second is when the primal problem has multiple
optimal solutions then the optimal dual solution is degenerate,the third is when the
primal problem is unbounded then the dual is infeasible,the fourth is when the primal
problem is infeasible then the dual is unbounded or infeasible.The economic
interpretation of primal dual relationship is done in such a way where the linear
programming is thought of as a resource allocation model where the objective is to
maximize revenue or profit subject to limited resources where the associated dual
problem offers interesting economic interpretations of the linear programming resource
allocation model where considering a representation of the general primal and dual
problems takes the role of a resource allocation model and for any pair of feasible primal
and dual solutions the objective value in the maximization problem is less than the
objective value in the minimisation problem where at the optimum the relationship holds
a strict equation hence the sense of optimisation is important therefore for any two
primal and dual feasible solutions the values of the objective functions when finite must
satisfy the inequality where variables are also called dual prices, shadow prices and
simplex multipliers and with the same logic the inequality associated with any two
feasible primal and dual solutions is interpreted as profit which is worth of resources
where this relationship implies that as long as the total return from all the activities is
less than the worth of the resources the corresponding primal and dual solutions are not
optimal where optimality is achieved only when the resources have been exploited fully
which can happen when the input equals the output profit where economically the
system is said to be disequilibrium and non optimal when the input worth of the
resources exceeds the output and the return where equilibrium occurs only when the two
quantities are equal.

Ans 3 (a) In the given assignment problem,the number of rows equals the number of
columns so the problem is balanced and we can get an optimal solution

a b c d e

A 30 0 45 60 70

B 15 0 10 40 55

C 30 0 45 60 75

D 0 0 30 30 60

E 20 0 35 45 70

We have subtracted the minimum distance of each row from all elements of that row

a b c d e

A 30 0 35 30 15

B 15 0 0 10 0

C 30 0 35 30 20

D 0 0 20 0 5
 E 20 0 25 15 15

We have subtracted the minimum distance of each column from all elements of that
column

We are not able to assign depots for C and E so we proceed as below

We have drawn a minimum number of lines to cover all zeros and now 15 is the smallest
element from all uncovered elements and we subtract this from all uncovered elements
and add it to the elements which lie at the intersection of two lines where we obtain the
following reduced matrix for fresh assignment.
Assignment schedule

Towers Depots Distance

A e 200

B c 130

C b 110

D a 50

E d 80

Total 570

Thus the minimum distance is 570 miles

Ans 3 (b) (1) - The smallest in the row and column will be considered for calculating the
penalty clause until its demand meets the supply
2)Maximum point in penalty is taken
3.As the demand meets the supply so it is a balanced problem

Destination Row penalty

D1 D2 D3 D4 Sup P1 P2 P3 P4 P5
 ply

Sour S1
ce 7✔ 3(50) 8✔ 6(10) 60 3 3 3 2 6

S2 4(20) 2✔ 5(50) 100 2 2 3 5 10

10(30)

S3 2✔ 6✔ 5✔ 1(40) 40 1 – – – –

Dem 20 50 50 80 200/
and 200

Colu P1 2 1 0 5
mn
Pena
lty

P2 3 1 3 0

P3 – 1 3 0

P4 – – 3 0

P5 – – – 6

VGM=50X3+10X6+20X4+50X5+30X10+40X1
=150+60+80+250+300+40
=880

Assignment Set 2 Answers

Answer 4 (a) Let us find the optimal solution by simplex method

First we have to convert the inequality constraints to equality

constraints by adding slack or surplus variables.
-2x1+3x2 < 6, Add slack variable s1>0, we have -2x1+3x2+s1=6,
6x1+ x2 <30, Add slack variable s2<0, we have 6x1+ x2+s2=30,
We have to add the slack variables in the objective function with zero
coefficients.
Max Z=5x1+7x2+0s1 +0s2
Initial Basic feasible solution
Let x1=0 and x2=0 (non Basic variables) substitute in the given
problem, we have s1=6 , s2=30 (basic variables)and Max z=0.

Cj 5 7 0 0 Minimum
of ratios
 CBj Basic x1 x2 s1 s2
variables

0 S1=6 -2 (3) 1 0 2

0 S2=30 6 1 0 1 30

z=0 Zj 0 0 0 0

Zj-Cj -5 -7 0 0

The diagonal element is 3.( x2 enters the basis and s1 leaves the basis)
Simplex iteration Rule:
(i) Divide the entire selected row by its diagonal element
(ii) All element of the selected column are zero except diagonal entry
(ii) Remaining all the position values using the formula
present position value - (corresponding selected row value) x
(corresponding selected column value)/(diagonal element)

First row values for the new table

6/3=2 -2/3 3/3=1 1/3 0/3=0

Second row values for the new table

30-(6)(1)=28 6(-2)(1)=-20/3 0=-(1)(1)=-1/3 1-(0)(0)=1
3 3 3 3
First simplex table

Cj 5 7 0 0

CBj Basic x1 x2 s1 s2 Minimum

variables of ratios

7 x2=2 -2/3 1 1/3 0 —

0 s2=28 {20/3} 0 -1/3 1 21/5

z=14 Zj -14/3 7 7/3 0

Zj-cj -29/3 0 7/3 0

Max Z=5.0+7.2+0s1 +0s2=14

x1 enters the basis and s2 leaves the basis, the diagonal element is 20/3
First row values for the new table
2-(28)(-2/3)=24. 1- (0)(-2/3)=1 1–(-2/3)(-1/3)=3/10 0-(-2/3)(1)=1
(20/3). 5 20/3 3 (20/3) (20/3) 10

Second row values for the new table

28 =21/5 (20/3)=1 0=0 (-1/3)=1/20 1=3/20
(20/3) (20/3) (21/3) (20/3) (20/3)

Second simplex table

Cj 5 7 0 0

CBj Basic x1 x2 s1 s2 Minimum

variables of ratios

7 x2=24/5 0 1 3/10 1/10

5 x1=21/5 1 0 -1/20 3/20

z=273/5 Zj 5 7 37/20 29/20

Zj-Cj 0 0 37/20 29/20

Max Z=5x(21/5)+7x(24/5)+0s1 +0s2=273/5

Since Zj-Cj > 0 for all j=1,2,3,4, therefore by the simplex procedure the above table is optimum,
and the optimum solution is given by x1=21/5,x2=24/5 and Max z=273/5.In the current optimal
solution all the basic variables in the basis are not integers.Therefore the above solution is
not desirable.Since x1 is the only basis variable whose value is non-negative fraction, so we
consider the first row for generating Gomory fractional cut[Rule:- Each non integer
coefficient is factorized into integer and fractional part in such a way that fractional part is
positive.]
0+24/5 =0. x1+x2+(3/10)s1+(1/10)s2
4+4/5 =(0+0). x1+(1+0)x2+(0+3/10)s1+(0+1/10)s2
Therefore the Gomory's fractional cut -I is written as follows
(4/5)<(3/10) s1+(1/10)s2
(4/5)= (3/10) s1+(1/10)s2 -sg1 (ADD Gomory surplus variable Sg1)
(-4/5)= (-3/10) s1+(-1/10)s2 +sg1
(Multiply by -1, so that coefficient of sg1 is positive)
Let us add the above equation in the last row of the optimum table
and apply dual simplex method

First dual simplex table

Cj 5 7 0 0 0

CBj Basic x1 x2 s1 s2 sg1

variables

7 x2=24/5 0 1 3/10 1/10 0

5 x1=21/5 1 0 -1/20 3/20 0

0 sg1=-4/5 0 0 [-3/10] -1/10 1

z=273/5 Zj 5 7 37/20 29/20 0

 Cj-Zj 0 0 -37/20 -29/20 0

Ratio – – 37/6 29/2 –

Ratio=(Cj-Zj)/y3j, calculate for all y3j<0
Since the values of the ratio row are positive , therefore the above table is not
optimum.Always we have to select the row that contain Gomory's slack variable and column
with least positive ratio value.Sg1 leaves the basis, s1 enters the basis, diagonal element is
-3/10.
First row of new table
24/5-(-4/5)(3/10)=4, 0-(0)(3/10)=0 1-(0)(3/10)=1 1/10-(3/10)(1/10)=0 0-(3/10)(1)=1
(-3/10) (-3/10) (-3/10) (-3/10) (-3/10)
Second row of new table
21/5– (-4/5)(-1/20)=13/3 1-(0)(-1/20)=1 0-(0)(-1/20)=0 3/20- (-1/20)(-1/10)=1/6 0-(1)(-1/20)-1/6
(-3/10) (-3/10) (-3/10) (-3/10) (-3/10)
Last row of the new table table(divide the entire row by -3/10)
(-4/5)=8/3 0=0 0=0 (-3/10)=1 (-1/10)=1/3 1=-10/3
(-3/10) (-3/10) (-3/10) (-3/10) (-3/10) (-3/10)

Second dual simplex table

Cj 5 7 0 0 0

Cbj Basic x1 x2 s1 s2 sg1

variables

7 x2=4 0 1 0 0 1

5 x1=13/3 1 0 0 1/6 -1/6

0 s1=8/3 0 0 1 1/3 -10/3

z=149/3 Zj 5 7 0 5/6 37/6

Cj-Zj 0 0 0 -5/6 -37/6

Since Cj -Zj<0 for some j=1,2,3,4,5,6. Therefore the above table is notoptimum.Since x1 is the
basis variable whose value is non-negative fraction, so we consider the second row for
generating Gomory fractional cut-II[Rule:- Each non integer coefficient is factorized into
integer and fractional part in such a way that fractional part is positive.]4+1/3 =1.
x1+0.x2+0.s1+(1/6)s2-1/6sg1
4+1/3 =(1+0). x1+(0+0)x2+(0+0)s1+(0+1/6)s2+(-1+5/6)sg1
Therefore the Gomory's fractional cut -I is written as follows
(1/3)< (1/6) s2+(5/6)sg1
(1/3)= (1/6) s2+(5/6)sg1 -sg2 (ADD Gomory surplus variable Sg2)
(-1/3)= (-1/6) s2+(-5/6)sg1 +sg2
(Multiply by -1, so that coefficient of sg2 is positive)
Let us add the above equation in the last row of the optimum table
and apply dual simplex method
Third dual simplex table
Cj 5 7 0 0 0 0

CBj Basic x1 x2 s1 s2 sg1 sg2

variables

7 x2=4 0 1 0 0 1 0

5 x1=13/3 1 0 0 1/6 -1/6 0

0 s1=8/3 0 0 1 1/3 -10/3 0

0 sg2=-1/3 0 0 0 [-1/6] -5/6 1

z=149/3 Zj 5 7 0 5/6 37/6 0

Cj-Zj 0 0 0 -5/6 -37/6 0

Ratio - - - 5 37/5
Since few values in the ratio row are positive, therefore it is not optimal, sg2 leaves the basis,
and s2 enters the basis, the diagonal element is -1/6.
First row values of new table.
4-(0(-1/3)=4 0-(0)(0)=0 1-(0)(0)=1 0-(0)(0)=0 1-(0)(-5/6)=1 0-(1)(0)=0
(-1/6) (-1/6) (-1/6) (-1/6) (-1/6) (-1/6)
Second row values of new table
13/3– (1/6)(-1/3)=4 1-(1/6)(0)=1 0-(1/6)(0)=0 0-(1/60(0)=0 -1/6-(1/6)(-5/6)=-1 0-(1)(1/6)=1
(-1/6) (-1/6) (-1/6) (-1/6) (-1/6) (-1/6)
Third row values of new table
8/3-(1/3)(-1/3)=2 0-(1/3)(0)=0 0-(1/3)(0)=0 1-(1/3)(0)=1 -10/3-(1/3)(-5/6)=-5 0-(1)(1/3)=2
(-1/6) (-1/6) (-1/6) (-1/6) (-1/6) (-1/6)
Last row values of new table
(-1/3)=2 0=0 0=0 0=0 (-1/6)=1 (-5/6)=5 1=-6 (-
1/6) (-1/6) (-1/6) (-1/6) (-1/6) (-1/6) (-1/6)
Fourth Dual Simplex Table

Cj 5 7 0 0 0 0

CBj Basic x1 x2 s1 s2 sg1 sg2

variables

7 x2=4 0 1 0 0 1 0

5 x1=4 1 0 0 0 -1 1

0 s1=2 0 0 1 0 -5 2

0 s2=2 0 0 0 1 5 -6

z=48 Zj 5 7 0 0 2 5
 Cj-Zj 0 0 0 0 -2 -5
Since all Cj -Zj are b 0 for all j, therefore the above solution is optimal.Hence the optimum
integer solution is x1=4, x2=4 and Max Z=48

Answer 4 (b)
B I II III
I 5 20✔ -10✔

A II 10 6 2✔

III 20✔ 15✔ 18✔

Since there is no saddle point,so we apply dominance method hence here row II dominates
row II so we will delete row II we get

B I II III
A I 5 20 -10

III 20 15 18

Since column III dominates column I ,we delete column I we get

B
II III Odds

A I 20 -10 3

III 15 18 30

Odds 28 5 33

Value of the game =20(3)+15(30)=510= 170

3+30 33 11
Probability of selecting strategies is given below
Player A Player B
I=3/33=1/11 I=0
II=0 II=28/33
III=30/33=10/11 III=5/33

Q 5) Write short notes on the following concepts:-

a) Erlang M/M/1 and FCFS Queuing Model
b)Program Evaluation and Review Technique [PERT]

Ans 5 (a) –
The Erlang M/M/1 queue is a discipline within the mathematical theory of probability which is
a multi server Queuing model wherein Kendall's notation it describes a system where arrivals
from a single queue is governed by a Poisson process where there are c servers and job
service times are exponentially distributed where it is a generalization of the M/M/1 queue
considers only a single server where the model will infinitely have many servers
in the M/M queue and an M/M/C queue is a stochastic process whose state space is the set
{0,1,2,3…} where the value corresponds to the number of customers in the system including
any currently in service where arrivals occur at a rate according to a Poisson process and it
moves the process from state i to I+1 where service times have an exponential distribution
with parameter u and if there are fewer than c jobs some of the servers will be idle and if
there are more than c jobs the jobs queue is in a buffer with the buffer being of infinite size
where there is no limit on the number of customers it can contain where the model can be
described as a continuous time Markov chain with transition rate matrix on the state space as
(0,1,2,3…) where the model is a type of birth and death process where for the server
utilization we require p<1 for the queue to be stable where p represents the average
proportion of time with each of the servers is occupied assuming jobs which is finding more
than one vacant server by choosing their servers randomly.In this model if the traffic
intensity is greater than one then the queue will grow without bound but in server utilization it
has a stationary distribution with probability mass function where the busy period of the
M/M/c queue can either refer to full busy period where the time period between an arrival
which finds c-1 customers in the system until a departure which leaves the system with c-1
customers and partial busy period where the time period between an arrival which finds the
system empty until a departure which leaves the system again empty.In FCFS Queuing Model
M denotes the Poisson arrival or exponential inter arrival time where second M denotes the
Poisson departure or exponential service time and S denotes the multiple server or channels
where service rate at each channel is the same as u and in this model the length of the
waiting time will depend on the number of occupied channels where if no of customer less
than no if server i.e n<S then there will be no customer waiting in queue,if no of customer is
equal to the no of servers i.e n=S then all service channels will be busy and if no of customer
is greater than the no of servers i.e n>S then all service channels will be busy while n-S will
be waiting in queue where mathematical derivation for different Queuing characteristics is
similar to the previous three models wherein step one first we find the system of steady state
equations where thereafter in step 2 we solve the steady state equations and find out the
result for probability function.In this model distribution of service time is exponential with
mean service time,queue length is unrestricted,queue discipline is first come first
serve,distribution of arrival is Poisson with arrival rate,distribution of departure is Poisson
with service rate,distribution of service time is exponential with mean service time,system
has single server.

Ans 5 (b) –
Program Evaluation and Review Technique was developed in connection with Research and
Development Work where it had to cope with the uncertainties that are associated with
Research and development activities and the total project duration is regarded as a random
variable where associated probabilities are calculated in order to characterize it where it is an
event oriented network as in the analysis of a network emphasis which is given on the
important stages of completion of a task rather than the activities required to be performed to
reach a particular event or task where PERT is normally used for projects involving activities
of non-repetitive nature in which time estimates are uncertain where it helps in pinpointing
critical areas in a project so that necessary adjustments can be made to meet the scheduled
completion date of the project.PERT is a technique where network is constructed on the
basis of event where it majorly focusses on time as meeting time target or estimation of
percent completion is more important where it is appropriate for high precision time
estimation and it has a non repetitive nature of job where there is no
chance of crashing as there is no certainty of time and it does not use any dummy activities
and PERT is majorly applied for scheduling, organization and integration of different tasks
within a project where it provides the blueprint of the project and it is an efficient technique
for project evaluation.Program Evaluation and Review technique is a method used to
examine tasks in a schedule and determine a critical path variation where it analyses the time
required to complete each task and its associated dependencies to determine the minimum
time to complete the project.PERT is a tool which is used to schedule,organize and map out
tasks within a project and it provides a visual representation of a project’s timeline and
breaks down individual tasks.

Answer ( 6 )
Production per day Probability Cumulative Random numbers
Probability Assigned

146 0.04 0.04 00-03

147 0.09 0.13 04-12

148 0.12 0.25 13-24

149 0.14 0.39 25-38

150 0.11 0.50 39-49

151 0.10 0.60 50-59

152 0.20 0.80 60-79

153 0.12 0.92 80-91

154 0.08 1.00 92-99

Using the given numbers the process is simulated with lorry capacity=150

Day Random Production Can be Scooters Cumulativ Scooters

number transporte waiting at e no of actually
d in lorry factory scooters transporte
waiting at d by lorry
factory

1 80 153 150 3 3 150

2 81 153 150 3 6 150

3 76 152 150 2 8 150

4 75 152 150 2 10 150

5 54 151 150 1 11 150

 6 43 150 150 0 11 150

7 18 148 148 -- 9 150

8 26 149 149 – 8 150

9 10 147 147 – 5 150

10 12 147 147 – 2 150

11 65 152 150 2 4 150

12 68 152 150 2 6 150

13 69 152 150 2 8 150

14 61 152 150 2 10 150

15 57 151 150 1 11 150

1. Average number of scooters waiting at the factory:

Total number of scooters waiting at the factory over the 15 day period:
3+3+2+2+1+2+2+2+2+1=20
Therefore average number waiting= 20/15 = 1.33/day
Or 20/15 day period.

2. Average number of empty spaces in the lorry:-

As evident from the table above,in any 15 day period, the lorry always goes full
Hence there is no empty space in the lorry.