A.1.

a. Linear Programming Problem(LPP) is a mathematical technique designed to help managers in their planning and decision making. It is usually used in an organisation that is trying to make the most effective use of its resources. Resources typically include machinery, manpower, money, time, warehouse space and raw materials. A few examples of problems in which LP has been successfully applied are: Developments of a production schedule that will satisfy future demands for a firms product and at the same time minimize total production and inventory costs. Establishment of an investment portfolio from a variety of stocks or bonds that will maximize a companys return on investment. Allocation of a limited advertising budget among radio, TV, and newspaper spots in order to maximize advertising effectiveness. THE PROCEDURE FOR MATHEMATICAL FORMULATION OF A LINEAR PROGRAMMING PROBLEM CONSISTS OF THE FOLLOWING MAJOR STEPS: STEP 1: study the given situation to find the key decisions to be made STEP 2: Identify the variables involved and designate them by symbols Xj ( j= 1,2.) STEP 3: State the feasible alternatives which generally are : Xj > 0 , for all j STEP 4: Identify the constraints in the problem and express them as linear inequalities or equations, LHS of which are linear functions of the decision variables. STEP 5: Identify the objective function and express it as a linear function of the decision variables. b. Decision variables: let it be x1 and x2 be the number of two grades of paper of x and y. Objective function Since, the profit for two grades of paper x and y are given, the objective function is to maximize the profit. Max Z = 200 x1 + 500 x2 Constrains: There are two constraints, one with respect to raw material and the other with reference to production hours. Maximize z = 200 x1 + 500 x2 Subject to x1 < or = 400 and x2 < or = 300 0.2x1 + 0.4x2 < or = 160 x1,x2 > or = to 0

A2.

a) The Steps of Methodology of operation research(OR) is as follows: DEFINITION: The first and the most important step is to define the problem. It indicates the following three major aspects: Description of the goal or the objective of the study Identification of the decision alternative to the system Recognition of the limitations , restrictions and requirements of the system CONSTRUCTION : Based on the problem definition , you need to identify and select the most appropriate model to ensure that the model specifies quantitative expressions for the

objective and the constraints of the problem in terms of its decision variables . A model gives a perspective picture of the whole problem and helps in tackling it in a well- mannered. SOLUTION: After deciding on an appropriate model, you need to develop a solution for the model and interpret the solution in the context of the given problem. A model solution implies determination of specific set of decision variables that can give an optimum solution. VALIDATION: A model is good representation of a system. However, the optimal solution must work towards improving the systems performance. You can test the validity of a model by comparing its performance with some past data available from the actual system. However, you will still have no assurance that future performance will continue to duplicate the past behavior. IMPLEMENTATION: You need to apply the optimal solution obtained from the model to the system and note the improvement in the performance of the system. You need to validate this performance check under changing conditions. A.2 b). PHASES OF OPERATIONS RESEARCH: JUDGEMENT PHASE : This phase includes the following activities : o Determination of the operations o Establishment of objectives and values related to the operations o Determination of suitable measures of effectiveness o Formulation of problems relative to the objectives RESEARCH PHASE: This phase utilizes the following methodologies: o Operation and data collection for a better understanding of the problems o Formulation of hypothesis and model o Observation & experimentation to test the hypothesis using additional data o Analysis of the available information & verification o Prediction of various results and consideration of alternative methods. ACTION PHASE: This phase involves making recommendations for the decision process. The recommendations can be made by those who identify and present the problem or by anyone who influences the operation in which the problem has occurred.

A3.

S1 0 S2 0 Zj-Cj

S1 0 X1 3

Re-writing in the standard form as Maximize Z = 3x1 + 2x2 + 0s1 + 0s2 Subject to x1 + x2+ s1= 4 x1 x2 + s2= 2 x1 0, x2 0, s1 0, s2 0 The initial table will be X1 X2 S1 S2 3 2 0 0 1 1 1 0 4 1* -1 0 1 2 -3 -2 0 0 Pivot column * Pivot element Further improvement of solution is needed. S2 is the outgoing variable and X1 is incoming variable. The first iteration table will be X1 is the incoming variable X1 X2 S1 S2 3 2 0 0 0 2* 1 -1 2 1 -1 0 1 2

Ratio 4/1 2/1

Pivot row

Ratio 2/2 2/-1 Pivot row Neglected because it is negative

Zj-Cj

-5 0 0 Pivot column * Pivot element Further improvement of solution is needed. S1 is the outgoing variable and X2 is incoming variable. The second iteration table will be X2 is the incoming variable X1 X2 S1 S2 3 2 0 0 X2 2 0 1 1/2 -1/2 X1 3 1 0 1/2 1/2 Zj-Cj 0 0 5/2 1/2 Since all Zj-Cj are more than equal to 0, hence optimal solution is X1=3, X2=2 and Z = 13.

A.4

A feasible solution has to be found always. Rather than determining a first approximation by a direct application of the simplex method, it is more efficient to work with the transportation table. The transportation algorithm is the simplex method specialized to the format of table involving the following steps: 1. Finding an initial basic feasible solution 2. Testing the solution for optimality 3. Improving the solution , when it is not optimal 4. Repeating steps (ii) and (III) until the optimal solution is obtained. MOVING TOWARDS OPTIMALITY: After evaluating an initial basic feasible solution to a transportation problem, the next question is how to get the optimum solution. The basic techniques are illustrated as follows: 1. Determine the net evaluations for the non- basic variables 2. Determine the entering variable 3. Determine the leaving variable 4. Compute a better basic feasible solution 5. Repeat steps (1) to (4) until an optimum solution has been obtained. Improving the solution Definition - A loop is the sequence of cells in the transportation table such that: Each pair of consecutive cells lie either in the same row or same column No three consecutive cells lie in the same row or same column The first and the last cells of the sequence lie in the same row or column No cell appears more than once in the sequence Modified distribution method/MODI method/UV method Step 4 - You repeat steps 1 to 3 to till all allocations are over. Step 5 - For allocating all forms of equations ui+ vj = cj, set one of the dual variable ui / vj to zero and solve for others. Step 6 - Use this value to find ij = cij - ui - vj. If all ij0, then it is the optimal solution. Step 7 - If any ij0 select the most negative cell and form loop. Starting point of the loop is positive and alternative corners of the loop are negative and positive. Examine the quantities allocated at negative places. Select the minimum, add it to the positive places and subtract from the negative places. Step 8 - Form a new table and repeat steps 5 to 7 till ij0

A5.

The steps in Hungarian Method: STEP 1: Prepare row ruled matrix by subtracting the minimum value for each row from the other elements of the row. STEP 2: Prepare columnreduced matrix by subtracting minimum value of the column from the other values of that column. STEP 3: Assign zero row-wise if there is only one zero and cross (X) or cancel others in column. STEP 4: Assign column wise if there is only one zero in that column and cross other zeros in that row. STEP 5: Repeat steps 3 and 4 till all zeros are either assigned or crossed. If the number of assignments is equal to number of rows present, you have arrived at an optimal solution, if not, proceed to step 6. STEP 6: Mark the unassigned rows. Look for crossed zero in that row. Mark the column containing the crossed zero. Look for assigned zero in that column. Mark the row containing assigned zero. Repeat this process till all the markings are done. STEP 7: Draw a straight line through unmarked rows and marked column. The number of straight line drawn will be equal to the number of assignments made. STEP 8: Examine the uncovered elements. Select the minimum. Subtract it from the uncovered elements . Add I t at the point of intersection of lines. Leave the rest as is. Prepare a new table. STEP 9 : Repeat steps 3 to 7 till optimum assignment is obtained. STEP 10 : Repeat steps 5 to 7 till number of allocations = number of rows. Solution Applying Hungarian Method Row Reduced Matrix ( Optimum Assignment Schedule) we have below table Machine Operators 1 2 3 5 A 15 5 0 0 B 5 10 20 0 C 5 20 10 0 D 5 5 0 5 Applying column reduced matrix to above, we have Machine Operators 1 2 3 5 A 10 0 0 0 B 0 5 20 0 C 0 15 10 0 D 0 0 0 5

b.

Covering all zeros with minimum number of horizontal or vertical lines Machine Operators 1 2 3 5 A 10 0 0 0 B 0 5 20 0 C 0 15 10 0 D 0 0 0 5 Since the number of lines is 4, we have arrived to the solution. Below table highlighted in bold. Machine Operators 1 2 3 5 A 60 50 45 45 B 40 45 55 35 C 55 70 60 50 D 45 45 40 45 Hence optimum assignment schedule is A to 2, B to 1, C to 5 and D to 3. Total cost will be 40+50+40+50 =180. A6. a. The steps of the method are given as follows: STEP 1: For each row of the transportation table, identify the smallest and the next to smallest costs. Determine the differences between them for each row. Display them alongside the transportation table by enclosing them for each row. Display them alongside the transportation table by enclosing them in parenthesis against the respective rows . Similarly, compute the differences for each column. STEP 2: Identify the row or column with the largest difference among all the rows and columns. If a tie occurs, use any arbitrary tie breaking choice. Let the greatest difference correspond to the ith row and let Cij be the smallest cost in the ith row. Allocate the maximum feasible amount xij = min ( ai , bj ) in the ( I, j ) th cell and cross off the ith row or the jth column in the usual manner. STEP 3: Re-compute the column and row differences for the reduced transportation table and go to step 2. Repeat the procedure until all the rim requirements are satisfied. The differences (penalty costs) for each row and column have been calculated as depicted in below table: Factories Distribution Centres Supply Row difference C1 C2 C3 C4 F1 3(10) 2(40) 7 6 50 1 3 X X F2 7(25) 5 2(20) 3(15) 60 1 1 1 1 F3 2(25) 5 4 5 25 2 2 2 2 Requirements 60 40 20 15 135 Column 1 3 2 2 difference 1 X 2 2 5 X 2 2 X X 2 2

b.

In the first round, the maximum penalty, 3 occurs in column C2. Thus the cell (F1, C2) having the least transportation cost 2 is chosen for allocation. The maximum possible allocation in this cell is 40 and it satisfies demand in column C2. Adjust the supply of F1 from 50 to 10 (50-40). The new row and column penalties are calculated except column C2 because its demand has been satisfied. The second round allocation is made in row F1 with target penalty 3 in the same way as in the first round as depicted in cell (F1, C1) of the table. The new row and column penalties are calculated except row F1 because its supply capacity is exhausted. In the third round, the maximum penalty 5 occurs at column C1. Thus the cell (F3, C1) having the least transportation cost 2 is chosen for allocation. The maximum possible allocation in this cell is 25 and it is the full potential of factory F3. The new row and column penalties are calculated except row F3 because its supply capacity is exhausted. The process is continued with new allocations till a complete solution is obtained. The initial solution using Vogels approximation method is depicted in above table. The total transportation cost associated with this method is calculated as follows: Hence the total transportation cost will be 10x3+7x25+2x25+2x40+2x20+3x15 =420 Rs.