0% found this document useful (0 votes)

42 views88 pages

Operations Research Bba 2018 21 VTH Semester

The document outlines the course structure for 'Introduction to Operations Research' for BBA students at Bharati Vidyapeeth University. It includes course objectives, learning outcomes, modules covering topics such as Linear Programming, Transportation Problems, and Simulation, as well as evaluation criteria and recommended readings. The course aims to equip students with analytical methods to improve decision-making in various business contexts.

Uploaded by

phateh.krishanamba.ba24

We take content rights seriously. If you suspect this is your content, claim it here.

Available Formats

Download as PDF, TXT or read online on Scribd

0% found this document useful (0 votes)

42 views88 pages

Operations Research Bba 2018 21 VTH Semester

Uploaded by

phateh.krishanamba.ba24

We take content rights seriously. If you suspect this is your content, claim it here.

Available Formats

Download as PDF, TXT or read online on Scribd

You are on page 1/ 88

lOMoARcPSD|51814596

OPERATIONS RESEARCH (BBA 2018-21) Vth SEMESTER

Operations Research (Bharati Vidyapeeth University)

Scan to open on Studocu

Studocu is not sponsored or endorsed by any college or university

Downloaded by Phateh Agrawal ([email protected])
lOMoARcPSD|51814596

COURSE PACK
FOR
INTRODUCTION
TO
OPERATIONS RESEARCH
BBA V SEM

Course Instructors: Dr. Parul Agrawal

Mrs. Bhawna Duggal
Dr. Nancy Goel
Course Leader: Mrs. Bhawna Duggal

Bharati Vidyapeeth University Institute of Management & Research, New Delhi

An ISO 9001:2015 Certified Institute
“A+” Grade Re-Accreditation by NAAC

------------------------ ------------------------ ------------------------

Forwarded by
Forwarded by
Program Coordinator Approved by Director
HOD

1|Page For Internal Circulation

Downloaded by Phateh Agrawal ([email protected])
lOMoARcPSD|51814596

Index

Unit Topic Page No.

Course Outline
 Course Overview
 Learning Outcomes
 List of Modules
 Evaluation Criteria 1-14
 Books Recommendation
 Session Plan
 Mapping lecture with course learning outcomes
 Contact Details

Introduction to Operations Research

 Definition of Operations Research
 History of Operations Research
 Characteristics of Operations Research
1 15-19
 Application/ Scope of Operations Research
 Process of Operations Research
 Advantages of Operations Research
 Limitations of Operations Research

Linear Programming Problem (LPP)

 Definition
 Components of LPP
 Assumptions underlying LPP
 Graphic Solution to LPP
 Advantages of LPP
2 20 – 31
 Limitations of LPP
 Practice Questions
Formulation
Graphical Method
 Practice Questions
 Additional Notes (if any)

2|Page For Internal Circulation

Downloaded by Phateh Agrawal ([email protected])
lOMoARcPSD|51814596

Transportation Problem
 Inputs
 Objective
 Transportation Methods
 North-West Corner Rule
 Least Cost Method
3 32 – 42
 Vogel’s Approximation Method
 Test for optimality
 Special Cases in Transportation Problems
 Flow Charts
 Practice Questions
 Additional Notes (if any)

Assignment Problem
 Hungarian Assignment Method
 Variations of the Assignment Problem
 Multiple Optimal Solutions:
 Maximization Case in Assignment Problem:
4. 43 – 51
 Unbalanced Assignment Problem
 Prohibition in Assignment Problem
 Flow Chart
 Practice Questions
 Additional Notes (if any)

Simulation
 Process of Simulation
5.  Monte Carlo Simulation 52 – 57
 Practice Questions
 Additional Notes (if any)

6. 58 - 68
Network Analysis
 Rules of Network Construction
 Floats
 PERT
3|Page For Internal Circulation
Downloaded by Phateh Agrawal ([email protected])
lOMoARcPSD|51814596

 Difference between PERT & CPM

 Practice Questions
 Additional Notes (if any)

Z Table
Random No. Table
7. 69-87
Previous year Question Papers (Internal)
Previous year Question Papers (University)

4|Page For Internal Circulation

Downloaded by Phateh Agrawal ([email protected])
lOMoARcPSD|51814596

BHARATI VIDYAPEETH DEEMED UNIVERSITY

INSTITUTE OF MANAGEMENT AND RESEARCH
Course Outline
BBA-Sem V
ACADEMIC YEAR 2019-20

1. Course Code: J010330 Credits: 4

2. Course Title: Introduction to Operations Research
3. Course Overview:
An operation research (OR) is the discipline of applying advanced analytical methods to help make better
decisions. It uses mathematical modeling, analysis, and optimization in a holistic approach to improving our
knowledge of systems and designing useful, efficient systems. Its applications range from engineering to
management and from industry to the public sector.

Operations Research (OR) is the application of mathematical techniques and analysis to problem solving in
business and industry, in particular to carrying out more efficiently tasks such as scheduling, or optimizing
the provision of services. OR is an interdisciplinary topic drawing from mathematical modeling,
optimization theory, game theory, decision analysis, statistics, and simulation to help make decisions in
complex situations. This course in OR concentrates on mathematical modeling and optimization: for
example maximizing production capacity, or minimizing risk. The course covers a variety of mathematical
techniques for linear optimization, and the theory behind them. Examples will be presented from important
application areas, such as the emergency services, telecommunications, transportation, and manufacturing.
This module aims to introduce students to use quantitative methods and techniques for effective decisions–
making; model formulation and applications that are used in solving business decision problems.

1. To provide students with basic skills and knowledge of operations research and its application.
2. To make students Understand how to translate a real-world problem, given in words, into a
mathematical formulation.
3. To introduce the students how to use variables for formulating complex mathematical models in
management science.
4. To introduce the students to the use of basic methodology for the solution of LPP, Transportation,
Assignment, PERT/CPM, Simulation etc. and Critically analyzing and interpreting results.
5. Students must be able to apply the techniques used in operations research to solve real life problems.

The students are expected to review the course readings and the indicated portion of the prescribed
text for class discussions prior to attending each session.

5|Page For Internal Circulation

Downloaded by Phateh Agrawal ([email protected])
lOMoARcPSD|51814596

4. Learning Outcomes:

After undergoing this course, the student will be able to:

1. Understand how to translate a real-world problem, given in words, into a mathematical formulation.
2. How to use different models of OR to solve real life problems.
3. How the scarce resources can be utilized in an efficient manner.
4. Find the ways to achieve the organization objectives: minimizing cost & maximizing profit/output.
5. Critically analyze and interpret results.
Specific knowledge:
(a) Formulate a Linear Program (LP) or translate into standard form, and use the Graphical Method to
solve.
(c) Formulation and solution of network problems using PERT and CPM.
(d) How to solve transportation & Assignment Problems for time cost & distance optimization.
(e) Better understand the topic of Simulation and its use in practical problems.

5. List of Topics/ Modules:

Topic/ Module Contents/ Concepts

 History

Module I: Introduction to Operations  Meaning & Significance

Research  Scope and Limitations
 Applications of OR in Business & Management
Module II: Linear Programming  Definition and Components of LPP
Problem
 Formulation of LPP model,

 Solution

 Max/Min Problems, Graphical Method

 Application and Limitation

 Sensitivity Analysis

6|Page For Internal Circulation

Downloaded by Phateh Agrawal ([email protected])
lOMoARcPSD|51814596

Module III: Transportation Problems  Formulation

 Initial Feasible Solution using North West Corner
Rule, Row Minima Method, Column Minima
Method, Matrix Minimum Method, VAM
 Optimality Check
 Finding optimal solution/s.
Module IV: Assignment Problem  Meaning, Definition and application of assignment
problem.
 Hungarian Method
 Assignment Problem for Max/ Min Cases.
Module V: Simulation  Introduction
 Monte Carlo Technique
 Business Application
 Limitations
Module VI: Network Analysis  PERT and CPM Techniques
 Introduction to Networks
 Key terms in Network Analysis, Network Models –
PERT/ CPM
 Network Components and Precedence
Relationships
 CPM, PERT
 Determination of PERT times
 Determining critical path
 Floats and Slacks

7|Page For Internal Circulation

Downloaded by Phateh Agrawal ([email protected])
lOMoARcPSD|51814596

6. Evaluation Criteria:

Component Description Weight

age for
100
marks

It will be based on conceptual questions and situation specific application

1.End Term oriented questions. End term exam will cover both pre mid-term and post 60 %
Exams
mid-term course coverage. Course readings are an integral component of
learning in this course.

There will be two Internal exams of 10 % weight age each. They will be
based on conceptual questions and situation specific application oriented
2.Mid Term
questions. Course readings are an integral component of learning in this 20 %
Exams
course. At least one of the questions will be based on these readings which
will not be specified to the students.

Students will be awarded marks for active and constructive participation

in class. Students are also required to submit reflective notes individually
3.Class
Participation & at the end of each class. (Reflective notes are collection of notes, 10%
Reflective Notes observation, thoughts and learning that the students have experienced
after attending the class. The reflective notes will include only the key
learning and key takeaways which the students got from the class.)

Students will be Evaluated 4 times through any of the CES activities

4. Continuous which includes Class test, Case Studies, Quiz on Moodle, Presentations
Evaluation System etc. Their knowledge may be tested through class tests at the end of each 10 %
(CES) module. They may also be asked to give presentations on the topics
allotted to them and at the end of the complete syllabus they will required
to appear in the quiz on moodle.

7. Recommended/ Reference Text Books and Resources:

8|Page For Internal Circulation

Downloaded by Phateh Agrawal ([email protected])
lOMoARcPSD|51814596

Text Books 1.Vohra, N. D, Quantitative Techniques in Management, 4th Ed, Tata McGraw Hill,
2010.
Course Reading 1. Gupta, P. K., & Hira, D. (2010). Operations Research. S. Chand & Company Ltd.
2. Sharma, J. K. (2013). Operations Research (5th ed.). Mcmillan Publishers India
Ltd.
3. Taha : An Introduction to Operations Research, PHI
You tube Links https://youtu.be/1CnFjNOewEU

https://youtu.be/ILWbaWrjgU4

https://youtu.be/-aIV14ZLqOM

8. Session Plan:

Reading Due
by the students
Schedule Topic to be discussed Learning Outcome
before coming
to the class
Quantitative Techniques in Management
Module I - Overview of Operation Research
by N.D.Vohra, 4th Edition
History of OR; Meaning & Significance of
OR Chapter-1 How to use different
1
Scope & Limitations of OR Page No. 3 - 12 models of OR to solve
Applications of OR in Business real life problems

Module II - Linear Programming

Theoretical concepts of Linear programming To develop the skill and

problems Chapter-2 ability to translate a
2 Page No. 19 - given real – life situation
Formulation of Linear programming 25 into a linear
problems programming format.

Formulation of Linear programming Page No. 19 -

3
problems 25
Enhancement of
4 Discussion/Evaluation on Assignment given -
analytical skills
How to minimizing cost
Solution by graphical methods-
5 Page No. 25-29 & maximizing
Maximization Problem
profit/output.
Solution by graphical methods-Minimization
6 Page No. 29-32
Problem
Example 2.11-
7 Solution by graphical methods-Mix Problem
2.21

9|Page For Internal Circulation

Downloaded by Phateh Agrawal ([email protected])
lOMoARcPSD|51814596

Special Cases in LPP (Multiple & Enhancement of

8 Page No. 32-37
Unbounded) analytical skills

9 Discussion/Evaluation on Assignment given -

Sensitivity analysis(theory) Notes given

10
Doubts handling -

Module III - Transportation Problems

Introduction about transportation problem Chapter-5 How OR model is used

11 Page No. 204- to optimize the
Solution by North West Corner Method 209 transportation cost

Page No. 210-

Solution by Least Cost Method Enhancement of Problem
211
12 solving and analytical
Solution by Row Minima , column Minima
Notes given skills
Method
How OR model is used
Page No. 211-
13 Solution by Vogel's Approximation Method to optimize the
214
transportation cost
Page No. 211-
14 Solution by Vogel's Approximation Method
214
Enhancement of Problem
Optimum Solution by Stepping stone Page No. 214-
15 solving and analytical
method 220
skills
Page No. 220-
16 Optimum Solution by Modi method
224
Special Cases – Unbalanced, Maximization, Page No. 224- Enhancement of
17
Restricted 235 analytical skills
18 Special Cases-Degeneracy in T. Problems P. No. 224-235
Enhancement of
19 Discussion/Evaluation on Assignment given -
analytical skills

20 Class Test-1 -

Module IV - Assignment Problems

Chapter-6 How to use different

Assignment problem-Theoretical
Page No. 288 - models of OR to solve
Background
298 real life problems
21
Page No. 288 -
Hungarian Method of solution
298

10 | P a g e For Internal Circulation

Downloaded by Phateh Agrawal ([email protected])
lOMoARcPSD|51814596

How this method is used

to minimize the time,
Page No. 288 -
22 Hungarian Method of solution cost & distance while
298
assigning/allocating
work
Page No. 299 -
23 Special Cases – Maximization, Restriction
305
Enhancement of
Page No. 299 -
24 Special Cases – Multiple Solutions analytical skills
305
Enhancement of
Applications of Assignment Problem Notes Given analytical skills
25
Discussion/Evaluation on Assignment given -

26 Class Test-2 -

Module V - Simulation

Chapter-17
27 Introduction to Simulation Page No. 878- How to use different
888 models of OR to solve
Page No. 878- real life problems
Monte Carlo Method-Practical Problems
888

Page No. 889- Enhancement of

28 Monte Carlo Method-Practical Problems
905 analytical skills

How OR models are

Page No. 878-
29 Business Applications & Limitations used to solve the
888
business problems

Enhancement of
Discussion/Evaluation on Assignment given -
analytical skills

30 Class Test-III -

Module VI - Network Analysis

Chapter-12 How to achieve time and

31 Page No. 608 - cost optimization by
Introduction to Networks 616 using this model of OR
in projects

Network Models-PERT/CPM

Network components & precedence

11 | P a g e For Internal Circulation

Downloaded by Phateh Agrawal ([email protected])
lOMoARcPSD|51814596

relationship

Page No. 617 -

32 Representing a Project as a Network
619

Page No. 619 -

33 Critical Path Method
620

Page No. 621 -

34 Floats –Total, Free & Independent Floats
624

Page No. 638 -

35 PERT-project completion time with three 643
time estimates Enhancement of
analytical skills

Page No. 638 -

36 PERT-calculation of probability & 643
completion time

37 Discussion/Evaluation on Assignment given -

38 Quiz on Moodle -

9. MAPPING LECTURE WITH COURSE LEARNING OUTCOMES

LO1 LO2 LO3 LO4 LO5

LECTURE1
High
LECTURE2
High Medium
LECTURE3
High Medium

12 | P a g e For Internal Circulation

Downloaded by Phateh Agrawal ([email protected])
lOMoARcPSD|51814596

LECTURE4
High Medium
LECTURE5
High Medium
LECTURE6
High Medium
LECTURE7
High Medium
LECTURE8
High Medium
LECTURE9
High Medium
LECTURE10
High
LECTURE11
High Medium Low
LECTURE12
High Medium
LECTURE13
High Medium
LECTURE14
High Medium
LECTURE15
High Medium
LECTURE16
High Medium
LECTURE17
High
LECTURE18
High
LECTURE19
High
LECTURE20
High
LECTURE21
High Medium Low
LECTURE22
High Medium
LECTURE23
High Medium
LECTURE24
High Medium
LECTURE25
High
LECTURE26
High Medium Low
LECTURE27
High Medium
LECTURE28
High
LECTURE29
High

13 | P a g e For Internal Circulation

Downloaded by Phateh Agrawal ([email protected])
lOMoARcPSD|51814596

LECTURE30
High
LECTURE31 High Medium
LECTURE32
High Medium
LECTURE33
High Medium
LECTURE34
High Medium
LECTURE35
High Medium
LECTURE36
High Medium
LECTURE37
High
LECTURE38
High

10. Contact Details:

Name of the Instructor: Mrs. Bhawna Duggal; Dr. Parul Agrawal, Ms. Nisha Nandal

Office Location: Paschim Vihar

Telephone: 011-25285808, ext. 274, 221

Email: [email protected], [email protected]

14 | P a g e For Internal Circulation

Downloaded by Phateh Agrawal ([email protected])
lOMoARcPSD|51814596

Unit 1 – Introduction to Operations Research

Operations

The activities carried out in an organization.

Research

The process of observation and testing characterized by the scientific method.

Operations Research is a quantitative approach to decision making based on the scientific method of problem
solving.

Definitions of Operations Research

 Operations research is the application of the methods of science to complex problems in the direction
and management of large systems of men, machines, materials and money in industry, business,
government and defence. The distinctive approach is to develop a scientific model of the system
incorporating measurements of factors such as chance and risk, with which to predict and compare the
outcomes of alternative decisions, strategies or controls. The purpose is to help management in
determining its policy and actions scientifically.
—Operational Research Society, UK

 Operations research is concerned with scientifically deciding how to best design and operate man–
machine systems usually requiring the allocation of scarce resources.
—Operations Research Society, America

 It is the use of scientific knowledge through interdisciplinary team effort for the purpose of
determining the best utilization of limited resources.
—Hamdy A Taha

 The application of scientific method to study of operations of large complex organizations or

activities. It provides top level administrators with a quantitative basis for decisions that will increase
the effectiveness of such organizations in carrying out their basic purpose.
—Committee on OR of National Research Council

15 | P a g e For Internal Circulation

Downloaded by Phateh Agrawal ([email protected])
lOMoARcPSD|51814596

History of Operations Research

 Strategic and tactical problems – World war-II

The term ‘operations research’ was coined as a result of research on military operations during
World War II. Since expecting adequate solutions from individuals or specialists in a single discipline
was unrealistic, groups of individuals who collectively were considered specialists in mathematics,
economics, statistics and probability theory, engineering, behavioural, and physical science were
formed. In Britain, Col. P. M. S. Blackett was assigned the problem of analysing the coordination of
radar equipment at gun sites

 Adoption in other fields

After the war, scientists who had been active in the military operations research (OR) groups made
efforts to apply operations research approach to civilian problems, related to business, industry,
research and development, etc.

 Economic and industrial boom

After World War II, economic and industrial boom resulted in continuous mechanization,
automation, decentralization of operations and division of management functions. Therefore
application of operations research to managerial decision-making became popular.

Characteristics of Operations Research

 Use of Scientific Methods

 Use of Models to represent the complex relationship

 Interdisciplinary approach

 Provision of a quantitative basis for decision making

 Methodological Approach

 Decision-making

 Operations Economy

Applications/Scope of Operations Research

 Areas

• Finance

• Production

• Marketing

• Personnel

16 | P a g e For Internal Circulation

Downloaded by Phateh Agrawal ([email protected])
lOMoARcPSD|51814596

 Techniques

• Linear Programming

• Decision Models

• Network Theory

• Inventory Control

• Queuing Theory

• Sequencing

• Game Theory

• Simulation

17 | P a g e For Internal Circulation

Downloaded by Phateh Agrawal ([email protected])
lOMoARcPSD|51814596

Process of Operations Research

18 | P a g e For Internal Circulation

Downloaded by Phateh Agrawal ([email protected])
lOMoARcPSD|51814596

Advantages of Operations Research

 Better Decision-making

 Better control

 Better Co-ordination

 Helpful in complex situations

 Resolve conflicts

 Improves Productivity

Limitations of Operations Research

 Magnitude of Computation

 Non-Quantifiable Factors

 Distance between User and Analyst

 Time and Money Costs

 Implementation

19 | P a g e For Internal Circulation

Downloaded by Phateh Agrawal ([email protected])
lOMoARcPSD|51814596

Unit 2- Linear Programming Problem

Definitions

Linear programming is a mathematical technique useful for allocation of ‘scarce’ or ‘limited’ resources, to
several competing activities on the basis of a given criterion of optimality.

The word ‘linear’ refers to linear relationship among variables in a model. That is, a change in one variable
causes a resulting proportional change in other variable. The word ‘programming’ refers to the solution of a
problem that involves the economic allocation of limited resources, by choosing a particular course of action
or strategy among various alternative strategies in order to achieve a desired objective.

Components of an LPP

• Decision Variables

• Objective Function

 To maximize or minimize

• Constraints

 Involving ≤, =, or ≥ sign

• Non-negativity Condition

 Variables to be non-negative

Assumptions underlying Linear Programming

 Proportionality

 Additivity

 Continuity

 Certainty

 Finite Choices

20 | P a g e For Internal Circulation

Downloaded by Phateh Agrawal ([email protected])
lOMoARcPSD|51814596

Graphic Solution to LPPs

 Plot constraints

 Mark feasible region which should be a convex set

 Evaluate corner points/use iso-profit or iso-cost lines to get optimal solution

 Redundant constraints

 Binding constraints

 Non-binding constraints

Solutions to LPPs

• Unique Optimal Solution

• Multiple Optimal Solutions

• Infeasibility: No feasible solution

• Unbounded Solution

Advantages of Linear Programming

• Linear programming helps in attaining the optimum use of productive resources. It also indicates the
use of productive factors effectively by selecting and distributing (allocating) these resources.
• Linear programming technique improves the quality of decisions. In other words, decision-making
approach becomes more objective and less subjective.
• Linear programming technique provides possible and practical solutions by taking into account the
constraints operating outside the problem.
• Linear programming also helps in re-evaluation of the outcome due to a course of action under
changing conditions. This helps to adjust the remainder of the decision process for best results.

21 | P a g e For Internal Circulation

Downloaded by Phateh Agrawal ([email protected])
lOMoARcPSD|51814596

Limitations of Linear Programming

• Linear programming treats all relationships among decision variables as linear. However, in real life
neither the objective function nor the constraints concerning business and industrial problems are
linearly related to the variables.
• While solving an LP model, there is no guarantee to get an integer valued solution. Rounding off the
solution to the nearest integer will not yield an optimal solution. In such cases, integer programming is
used to ensure integer value to the decision variables.
• Linear programming model does not take into consideration the effect of time and uncertainty.
• Parameters of LP model are assumed to be constant but in real-life situations, they are neither known
nor constant.
• A LP model has single objective function, whereas in real-life situations we may come across
conflicting multi-objective problems. In such cases, a goal programming model is used to get
satisfactory value of such objectives.

22 | P a g e For Internal Circulation

Downloaded by Phateh Agrawal ([email protected])
lOMoARcPSD|51814596

Practice Questions

Q-1 A firm produces three products A, B & C each of which passes through three departments: Fabrication,
Finishing & Packaging. Each unit of product A requires 3, 4 & 2; a unit of product B requires 5, 4 & 4 while
each unit of product C requires 2, 4 & 5 hours respectively in the three departments. Every day 60 hrs are
available in the fabrication department, 72 hrs in the finishing department and 100 hrs in the packaging
department. The unit contribution of product A is Rs. 5, of product B is Rs. 10 and of product C is Rs. 8.
Formulate the problem as LPP.

Q-2 The agricultural research institute suggested the farmer to spread out at least 4800 kg of special
phosphate fertilizer and not less than 7200 kg of a special nitrogen fertilizer to raise the productivity of crops
in his fields. There are two sources for obtaining these – mixtures A and mixtures B. Both of these are
available in bags weighing 100kg each and they cost Rs.40 and Rs.24 respectively. Mixture A contains
phosphate and nitrogen equivalent of 20kg and 80 kg respectively, while mixture B contains these ingredients
equivalent of 50 kg each. Write this as an LPP and determine how many bags of each type the farmer should
buy in order to obtain the required fertilizer at minimum cost.

Q-3 Chocolate India Ltd. produces three varieties of Chocolates – Hard, mild & soft from three different
inputs I1, I2 & I3. One unit of Hard requires 2 units of I 1 and 4 unit of I2. One unit of mild requires 5 units of I 1,
4 units of I2 and 3 units of I3 and one unit of soft requires 10 units of I 1 & 15 units of I3. The total available of
inputs in the company’s warehouse is as under:
I1 - 100 units
I2 - 400 units
I3 - 50 units
The profit per unit for hard, mild & soft are Rs. 20, Rs. 30 and Rs. 40 respectively. Formulate the problem so
as to maximize the total profit by using linear programming.
Q-4 Safe & sound Investment Ltd. wants to invest up to Rs. 10 lakhs into various bonds. The ma nagement
is currently considering four bonds, the detail on return & maturity of which are as follows:

Bonds Types Returns Maturity Time

α Govt. 22% 15 years
β Govt. 18% 5 years
γ Industrial 28% 20 years
θ Industrial 16% 3 years

The company has decided not to put less than half of its investment in the government bonds and that the
average age of the portfolio should not be more than 6 years. The investment should be such which maximizes
the return on investment, subject to the above restriction. Formulate the above as a LP problem.

Q-5 To maintain good health, a person must fulfill certain minimum daily requirements of several kinds of
nutrients. For the sake of simplicity let us assume that only three kinds of these needs to be considered
calcium, protein vitamin A. also assume that the person’s diet is to consist of only 2 food items, I & II; whose
23 | P a g e For Internal Circulation
Downloaded by Phateh Agrawal ([email protected])
lOMoARcPSD|51814596

prices & nutrient content’s are given in the following table. Find out the optimal combination of the two food
items that will satisfy the daily requirements & entail the least cost.

Foods Calcium Protein Qty Vitamin A Qty Cost per Unit

F1 10 5 2 6
F2 4 5 6 1
Daily Min. Requirements 20 20 12

Q-6 A steel plant manufactures two grades of steel S 1 & S2. Data given below shows the total resources
consumed & profit per unit associated with S1 & S2 .iron and labor are the only resources which are consumed
in the manufacturing process. The manager of the firm wishes to determine the different units of S 1 & S2 which
should be manufactured to maximize the total profit.

Resource utilized Unit-requirement Amount Available

S1 S2
Iron (kg) 30 20 300
labour (Hours) 5 10 110
Profit (Rs.) 6 8

Q-7 A manufacturer produces two types of models M1 and M2.Each model of the type M1 requires 4
hours of grinding and 2 hours of polishing; whereas each model of M2 requires 2 hours of grinding and 5
hours of polishing. The manufacturer has 2 grinders and 3 polishers. Each grinder works for 40 hours a week
and each polisher works 60 hours a week. Profit on M1 model is Rs.3.00 and on model M2 is
Rs.4.00.Whatever produced in a week is sold in the market. How should the manufacturer allocate his
production capacity to the two types of models, so that he makes maximum profit in a week? = 3
X
Q-8 Alpha Limited produces & sells 2 different products under the brand name black & white. The profits
per unit on these products are Rs. 50 & Rs. 40 respectively. Both black & white employ the same
manufacturing process which has a fixed total capacity of 50,000 man-hours. As per the estimates of the
marketing research department of Alpha Limited, there is a market demand for maximum 8,000 units of Black
& 10,000 units of white. Subject to the overall demand, the products can be sold in any possible combination.
If it takes 3 hours to produce one unit of black & 2 hours to produce one unit of white, formulate the about as
a linear programming model.
4X1 + 2X2 < 80 2X1 + 5X2 < 180 X1, X2 > 0

Q-9 A person wants to decide the constituents of a diet which will fulfill his daily requirements of proteins,
Fats & carbohydrates at the minimum cost. The choice is to be made from four different types of
foods. The yield per unit of these foods is:

24 | P a g e For Internal Circulation

Downloaded by Phateh Agrawal ([email protected])
lOMoARcPSD|51814596

Yield Per Unit Cost per Unit

Food Type
Proteins Fats Carbohydrates (Rs.)

1 3 2 6 45

2 4 2 4 40

3 8 7 7 85

4 6 5 4 65

Minimum
800 200 700
Requirement

Formulate the linear programming model for the problem.

Q-10 High Quality furniture Ltd. manufactures two products, tables & chairs. Both the products have to be
processed through two machines Ml & M2 the total machine-hours available are: 200 hours ofM1 and 400
hours of M2 respectively. Time in hours required for producing a chair and a table on both the machines is as
follows:

Time in Hours

Machine Table Chair

M1 7 4

M2 5 5

Profit from the Sale of table is Rs. 40 and that from a chair is Rs. 30, determine optimal mix of tables & chairs
so as to maximize the total profit.

Q-11 Good Results Company manufactures & sells in the export market three different kinds of products P1,
P2 & P3. The anticipated sales for the three products are 100 units of P1, 200 units of P2 & 300 units of P3. As
per the terms of the contract Good results must produce at least 50 units of P 1 & 70 units of P3. Following is
the break – up of the various production lines:

25 | P a g e For Internal Circulation

Downloaded by Phateh Agrawal ([email protected])
lOMoARcPSD|51814596

Product Production Hours per Unit Unit Profit

(Rs.)

Department Department Department Department

(A) (B) (C) (D)

P1 0.05 0.06 0.07 0.08 15

P2 0.10 0.12 0.30 20

P3 0.20 0.09 0.07 0.08 25

Available 40.00 45.00 50.00 55.00

hours

Management is free to establish the production schedule subject to the above constraints.

Formulate as a linear programming model assuming profit maximization criterion for Good Results Company.

Q-12 The management of Surya Chemicals is considering the optimal mix of two possible processes. The values of
input & output for both these process are given as follows:

Process Inputs Units Outputs Units

I1 I2 O1 O2

X 2 6 3 7

Y 4 8 5 9

Maximum 500 units of Input I1 and 300 units of I2 are available to Surya Chemicals in the local market. The
forecasted demand for outputs OI & O2 are at least 5,000 units & 7,000 units respectively. The respective
profits from process X & Y are Rs. 1,000 & Rs. 2,000 – per production run. You are required to formulate the
above as a linear programming model.

Solve using Graphical Method

Q-13 A small scale industry manufactures electrical regulators, the assembly of which is being
accomplished by a small group of skilled workers, both men and women. Due to the limitations of space and

26 | P a g e For Internal Circulation

Downloaded by Phateh Agrawal ([email protected])
lOMoARcPSD|51814596

finance, the number of workers employed cannot exceed 11 and their salary bill not more than Rs. 60,000 per
month. The male members of the skilled workers are paid Rs. 6000 per month, while the female worker doing
the same work as the male member get Rs. 5000 member contributes Rs. 10,000 per month to total return of
the industry, while the female worker contributes Rs. 8500 per month. Determine the number of male and
female workers to be employed in order to maximize the monthly total return.(maximization- bounded-
unique)

Q-14 Maximize: z=2x1 + x2 (Bounded- Unique)

Constraints:

x1 + 2x2 ≤ 360

x1 + x2 ≤ 6

x1 - x2 ≤ 2

x1 - 2x2 ≤ 1

x1, x2 ≥ 0

Q-15 MD Ltd. has two bottling plants, one located at Solan and the other at Mohan Nagar. Each plant
produces three drinks; whisky, beer and fruit juices name A, B, C respectively. The number of bottles
produced per day is as follows:

Plant at
Solan Mohan Nagar
Whisky 1500 1500
Beer 3000 1000
Fruit Juices 2000 5000

A market survey indicates that during the month of April, there will be a demand of 20,000 bottles of whisky,
40,000 bottles of beer and 44,000 bottles of fruit juices. The operating costs per day for plants at Solan and
Mohan Nagar are 600 & 400 monetary units. For how many days each plant is run in April so as to minimize
the production cost while still meeting the market demand?(Unbounded- Minimization- Unique)

Q-16 Use the graphical method to solve the LP problem. (Minimize- Bounded with negative coordinates-
Unique (negative) solution)

Minimize Z = − x1 + 2x2

Subject to the constraints

−x1 + 3x2  10

27 | P a g e For Internal Circulation

Downloaded by Phateh Agrawal ([email protected])
lOMoARcPSD|51814596

x1 + x2  6

x1 − x2  2

And x1, x2 ≥ 0.

Q-17 Solve the following problem graphically (Maximize- Unbounded- Infinite)

Max Z= 5X1+4X2

Subject to X1-2X2 ≤ 1

X1+2X2 ≥ 3

X1, X2 ≥ 0

Q-18 Solve the following problem graphically: (Maximize- Bounded- Unique)

Max Z= -X1+2X2

Subject to

X1-X2≤ -1

-0.5 +X2 ≤ 2

X1, X2 ≥ 0

Q-19 Maximize Z=4x1 + 3x2 (Bounded- Multiple optimal)

Subject to the constraints

3x1 + 4x2 ≤ 24

8x1 + 6x2 ≤ 48

x1 ≤ 5

x2 ≤ 6

x1, x2 ≥ 0

Q-20 Maximize: z=4x1 + 2x2 (Unbounded- Infeasible)

Constraints:

2x1 + 3x2 ≤ 18

x1 + x2 ≥ 10

x1, x2 ≥ 0

28 | P a g e For Internal Circulation

Downloaded by Phateh Agrawal ([email protected])
lOMoARcPSD|51814596

Q-21 An advertising firm desires to reach two types of audiences- customers with annual income of more
than Rs. 40,000 (target audience A) and customers with annual income of less than Rs. 40,000 (target
audience B). The total advertising budget is Rs.2, 00,000. One programme of T.V advertising costs Rs.50, 000
and one programme of radio advertising costs Rs. 20,000. Contract conditions ordinarily require that there
should be atleast3 programmes on T.V and the number of programmes on Radio must not exceed 5. Survey
indicates that a single T.V programme reaches 7, 50,000 customers in target audience A and 1, 50,000 in target
audience B. One Radio programme reaches 40,000 customers on target audience A and 2, 60,000 in target
audience B. Formulate this as a LPP and determine the media mix to maximize the total reach using graphic
method. (Maximize- Bounded- Unique)

29 | P a g e For Internal Circulation

Downloaded by Phateh Agrawal ([email protected])
lOMoARcPSD|51814596

NOTES

__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________

30 | P a g e For Internal Circulation

Downloaded by Phateh Agrawal ([email protected])
lOMoARcPSD|51814596

NOTES

__________________________________________________________________________________

31 | P a g e For Internal Circulation

Downloaded by Phateh Agrawal ([email protected])
lOMoARcPSD|51814596

Unit III: Transportation Problems

Inputs:

 Sources with availability

 Destinations with requirements

 Unit cost of transportation from various sources to destinations

Objective:

 To determine schedule of transportation to minimize total transportation cost

Transportation Method

Step 1

Balance the problem if Aggregate Demand and Aggregate Supply are unequal; place an M in the cost cell if
some route is prohibited; and convert into equivalent minimization problem if it is a maximization problem.

Step 2

Obtain initial solution

 North-West Corner Rule: considers only demand and availability

 Least Cost Method: considers unit cost, demand and availability

 Vogel’s Approximation Method: considers cost differences, demand and availability

Step 3

Test for optimality

For this, check if the number of occupied cells = m + n – 1

If yes, obtain ui and vj values and calculate ∆ij values for unoccupied cells

 If all ∆ij values are ≤ 0, it is optimal solution

 If all ∆ij values are negative, it is unique optimal solution

 If some ∆ij value/s = 0 while others are negative, there are multiple optimal solutions

In case of non-optimal solution go to step 4

32 | P a g e For Internal Circulation

Downloaded by Phateh Agrawal ([email protected])
lOMoARcPSD|51814596

Step 4

Improve non-optimal solution

(a) Begin with cell having largest ∆ij, draw a closed path:

 Move alternately between rows and columns

 Stop only at occupied cells

 Start with a + sign in the cell of origin, place – and + signs alternately on cells on the
path

(b) Consider cells with – sign, choose the least quantity in them, add it to each cell with + sign and subtract it
from each cell with – sign

(c) Obtain revised solution and go back to step 3

Special Cases in Transportation Problem

Unbalanced Transportation Problem

A problem is known to be unbalanced problem if Aggregate Demand and Aggregate Supply are unequal; the
first step is to make it balanced by adding a dummy row or dummy column as per the requirement & placing
zero in all the cost cells of that dummy row or dummy column.

Transportation Problem of Maximization

If a problem is of maximization (instead of cost profit /saving is given) then convert it into equivalent
minimization problem by subtracting all the values from the highest value.

Prohibition in Transportation Problem

If some routes are prohibited in the problem then place an M (which denotes vary high cost) in the cost cell
which is prohibited and then solve in usual manner.

Degeneracy in Transportation Problem

If the basic feasible solution of a transportation problem with m origins and n destinations has fewer than
m+n-1 positive cij (Occupied cells), the problem is said to be a degenerate transportation problem.

Degeneracy occurs at two stages:

1) Initial Stage
2) During testing the optimal solution. (Prevents testing optimality of the solution)

Degeneracy is removed by placing an infinitesimally small value ε (Epsilon) in each of the required number
of independent cells

33 | P a g e For Internal Circulation

Downloaded by Phateh Agrawal ([email protected])
lOMoARcPSD|51814596

34 | P a g e For Internal Circulation

Downloaded by Phateh Agrawal ([email protected])
lOMoARcPSD|51814596

Practice Questions

Q-1 Find out the initial feasible solution using:

i) North West Corner Method,

ii) Least Cost Method/ Matrix Minima Method
iii) Row Minima method
iv) Column Minima Method
v) Vogel’s Approximation Method

Distribution Centers

A B C D Supply

Plants P 2 3 11 7 6
Q 1 0 6 1 1
R 5 8 15 9 10

Requirements 7 5 3 2

Q-2 Find the optimal transportation cost using: MODI Method

P Q R S Supply
A 12 10 12 13 500
B 7 11 8 14 300
C 6 16 11 7 200
Demand 180 150 350 320 1000

Q-3 Given the following transportation problem:

Market
Warehouse Supply
A B C
1 10 12 7 180
2 14 11 6 100
3 9 5 13 160
4 11 7 9 120
Demand 240 200 220

It is known that currently nothing can be sent from warehouse 1 to market A and from warehouse 3 to market
C. Solve the problem and determine the least cost transportation schedule. Is the optimal solution obtained by
you is unique? If not, what is/ are the other optimal solution/s?

Q-4 The following matrix gives the distance in kms, from source of supply to the destination. The shipping cost
is Rs. 10per km. What shipping schedule should be used to minimize total cost?
35 | P a g e For Internal Circulation
Downloaded by Phateh Agrawal ([email protected])
lOMoARcPSD|51814596

D1 D2 D3 D4 D5 Supply
S1 5 8 6 6 3 8
S2 4 7 7 6 5 5
S3 8 4 6 6 4 9
Demand 4 4 5 4 8

Q-5 Determine a transportation schedule to minimize cost using NWC Rule.

D1 D2 D3 Supply
S1 8 5 6 120
S2 15 10 12 80
S3 3 9 10 80
Demand 150 80 50

Q-6 There are four warehouses located at A, B, C and D with capacity of 90, 50, 80 and 60 tons
respectively. A supply has to be made in 3 cities P, Q and r with a demand of 120, 100 and 110 tons
respectively. The shipping cost per ton is given below:-

P Q R
A 7 10 5
B 12 9 4
C 7 3 11
D 9 5 7
 Shipments are prohibited from A to P. Find out the minimum cost.

Q-7 A company supplies the product from its warehouses to 4 cities. The profit per unit is given below.

Warehouse/City 1 2 3 4 Supply
A 6 6 11 15 80
B 4 6 10 12 120
C 6 4 7 6 150
D 4 10 14 14 70
E 8 8 7 9 90
Demand 100 200 120 80

36 | P a g e For Internal Circulation

Downloaded by Phateh Agrawal ([email protected])
lOMoARcPSD|51814596

Q-8 The table below records transportation costs per unit of a product from origins O1, O2, O3 and O4 to
destinations D1, D2, D3, D4 and D5. The capacities of the four origins are respectively 55, 45, 30 and 50
while the requirements of the five destinations are respectively 40, 20, 50, 30 and 40.Employing Vogel’s
Approximation Method, or otherwise, make the initial allocations to the origins to satisfy the requirements of
the destinations and test the optimality of these allocations. Use Modified Distribution Method (MODI) for
obtaining an optimal solution that would minimize the total cost of transportation.

Destination
Origin Capacity
D1 D2 D3 D4 D5
O1 12 4 9 5 9 55
O2 8 1 6 6 7 45
O3 1 12 4 7 7 30
O4 10 15 6 9 1 50
Requirement 40 20 50 30 40

Find the total cost implied by the solution. Is the solution unique? If not, find an alternative solution as
well.

Q-9 A company has four warehouses and six stores. The warehouses altogether have a surplus of 22 units of a
given commodity, divided among them as follows:

Warehouses 1 2 3 4
Surplus 5 6 2 9

The six stores altogether need 22 units of the commodity. Individual requirements at stores 1, 2,3,4,5 and 6 are
4, 4, 6, 2, 4 and 2 units respectively.

Cost of shipping one unit of commodity from warehouse to stores in rupees is given in the matrix below:

Stores
Warehouses
1 2 3 4 5 6
1 9 12 9 6 9 10
2 7 3 7 7 5 5
3 6 5 9 11 3 11
4 6 8 11 2 2 10

How the products should be shipped from the warehouses to the stores so that the transportation cost is
minimum?

37 | P a g e For Internal Circulation

Downloaded by Phateh Agrawal ([email protected])
lOMoARcPSD|51814596

Q-10 A company has received a contract to supply gravel to three new construction projects located in towns A, B
and C. The construction engineers have estimated that the required amounts of gravel which will be needed at these
construction projects are:

Project Location Weekly Requirements

(Truckloads)
A 72
B 102
C 41
The company has 3 gravel pits located in towns X, Y and Z. The gravel required by the construction project can be
supplied by three pits. The amount of gravel that can be supplied by each pit is as follows:

Plant: X Y Z
Amount Available 76 82 77
(Truckloads)

The company has computed the delivery cost from each pit to each project site. These costs (in Rs.) are shown in the
following table:

Project Location

A B C
Pit
4 8 8
16 24 16
8 16 24

Schedule the shipment from each pit to each project in such a manner that it minimizes the total transportation
cost within the constraints imposed by pit capacities and project requirements. Also find the minimum cost.

Q-11 Find the optimum solution to the following transportation problem in which the cells contain the
transportation cost in rupees.

W1 W2 W3 W4 W5 Available
F1 7 6 4 5 9 40
F2 8 5 6 7 8 30
F3 6 8 9 6 5 20
F4 5 7 7 8 6 10
Required 30 30 15 20 5 100

38 | P a g e For Internal Circulation

Downloaded by Phateh Agrawal ([email protected])
lOMoARcPSD|51814596

Q-12 XYZ tobacco Company purchases tobacco and stores in warehouses located in the following four
cities:

Warehouse Location(City) A B C D

Capacity (Tons) 90 50 80 60

The warehouse supply tobacco to cigarette companies in three cities that have the following demand:

Cigarette Company Demand (Tons)

Bharat 120
Janta 100
Red Lamp 110

The following railroad shipping costs per tonne (in hundred rupees) have been determined:

Warehouse Location Bharat Janta Red Lamp

A 7 10 5
B 12 9 4
C 7 3 11
D 9 5 7

Because of railroad construction, shipments are temporarily prohibited from warehouse at city A to Bharat
Cigarette Company.

a) Find the optimum distribution for XYZ Tobacco Company.

b) Are there multiple optimum solutions? If yes, identify them.

Q-13 Find the initial solution for the transportation problem by VAM method. Also obtain the optimum solution by
MODI Method.

Market
Plant Supply
M1 M2 M3 M4
P1 6 4 9 1 40
P2 20 6 11 3 40
P3 7 1 0 14 50
P4 7 1 12 6 30
Demand 90 30 50 30

39 | P a g e For Internal Circulation

Downloaded by Phateh Agrawal ([email protected])
lOMoARcPSD|51814596

Q-14 A company manufacturing air – coolers has two plants located at Mumbai and Kolkata with a capacity of 200
units and 100 units per week respectively. The company supplies the air – coolers to its four showrooms situated at
Ranchi, Delhi, Lucknow and Kanpur which have a maximum demand of 75, 100, 100 and 30 units respectively. Due to
the differences in raw material cost and transportation cost, the profit per unit in rupees differs which is shown in the
table below:

Ranchi Delhi Lucknow Kanpur

Mumbai 90 90 100 110
Kolkata 50 70 130 85

Plan the production program so as to maximize the profit. The company may have its production capacity at
both plans partly or wholly unused.

Q-15 A product is manufactured at four factories A, B, C and D. Their unit production costs are Rs. 2, Rs. 3, Re 1 and
Rs. 5, respectively. Their production capacities are 50, 70, 30 and 50 units, respectively. These factories supply the
product to four stores, demands of which are 25, 35, 105 and 20 units respectively. Unit transportation cost in rupees
from each factory to each store is given in the table below:

Stores
Factories I II III IV
A 2 4 6 11
B 10 8 7 5
C 13 3 9 12
D 4 6 8 3

Determine the extent of deliveries from each of the factories to each of the stores, so that the total production
and transportation cost is the minimum.

Q-16 A company has factories at F1, F2 and F3 that supply products to warehouses at W1, W2 and W3. The weekly
capacities of the factories are 200, 160 and 90 units, respectively. The weekly warehouse requirements are 180, 120
and 150 units, respectively. The unit shipping costs (in rupees) are as follows:

Warehouse
Factory Supply
W1 W2 W3
F1 16 20 12 200
F2 14 8 18 160
F3 26 24 16 90
Demand 180 120 150 450

Determine the optimal distribution for this company in order to minimize its total shipping cost.

40 | P a g e For Internal Circulation

Downloaded by Phateh Agrawal ([email protected])
lOMoARcPSD|51814596

NOTES

________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________

41 | P a g e For Internal Circulation

Downloaded by Phateh Agrawal ([email protected])
lOMoARcPSD|51814596

NOTES

________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________

42 | P a g e For Internal Circulation

Downloaded by Phateh Agrawal ([email protected])
lOMoARcPSD|51814596

Unit IV: Assignment Problem

Assignment problem arises when each assignee (workers, salesmen, vehicles, contracts, etc.) is to be assigned
to exactly one task (sales regions, machines, checkout counters, routes, bidders, etc.) with an objective to
minimize the total cost/time/distance or to maximize total profit.

The problem of assignment arises because resources that are available have varying degree of efficiency for
performing different tasks. The cost, profit or time of performing different tasks is also different.

Assignment Problem

• Can be solved by complete enumeration

• Can be formulated and solved as a transportation problem

• Can be formulated and solved an LPP (a 0-1 IPP)

• Can be solved by Hungarian Assignment Method (HAM)

• HAM is most efficient of all methods

Hungarian Assignment Method

Step 1

 Balance the problem if it is unbalanced

 Place an M as the cost element if some assignment is prohibited

 Convert into equivalent min problem if it is a max problem

Step 2

Obtain zeros in every row and column by row reductions and column reductions

Step 3

Cover all zeros by least number of horizontal/ vertical lines

If number of lines = n move to step 4 else make adjustment: select least uncovered value; subtract it from
every uncovered value; and add to each one at intersection of lines

Again cover zeros with lines to find if you could go to 4

Step 4

Make assignments by considering zeros

43 | P a g e For Internal Circulation

Downloaded by Phateh Agrawal ([email protected])
lOMoARcPSD|51814596

Variations of the Assignment Problem

Multiple Optimal Solutions:

While making assignments, it is possible to have two or more ways to strike off a certain number of
zeros. This indicates that there are multiple optimal solutions with the same optimal value of objective
function.

Maximization Case in Assignment Problem:

If an assignment problem is for maximization of profit/revenue, then such problems are solved by
converting given data on profit/revenue into cost data as follows:

Locate largest payoff element in the assignment table and then subtract all elements of the table from
this element. The new assignment problem, so obtained, can be solved by using the Hungarian
method.

Unbalanced Assignment Problem

Hungarian method requires that the number of columns and rows in the assignment matrix be equal.
Otherwise, assignment problem is called an unbalanced problem. To make given matrix a square
matrix, dummy row(s) or column(s) are added (with zeros cost elements).

Prohibition in Assignment Problem

If some routes are prohibited in the problem then place an M (which denotes vary high cost) in the
cost cell which is prohibited and then solve in usual manner.

44 | P a g e For Internal Circulation

Downloaded by Phateh Agrawal ([email protected])
lOMoARcPSD|51814596

45 | P a g e For Internal Circulation

Downloaded by Phateh Agrawal ([email protected])
lOMoARcPSD|51814596

Practice Questions

Q-1 To stimulate interest and provide an atmosphere for intellectual discussion, the finance faculty in
management school decides to hold special seminars on 4 contemporary topics- leasing, portfolio
management, mutual funds and swaps & options. Such seminars would be held once per week in the
afternoons. However, scheduling these seminars (1 for each topic and not more than 1 seminar in the
afternoon) has to be carefully done so that the number of students unable to attend is kept minimum. A
study indicates that the number of students who cannot attend a particular seminar on a specific day is as
follows:

Swaps &
Leasing Portfolio Management Mutual Funds
Options
Monday 50 40 60 20
Tuesday 40 30 40 30
Wednesday 60 20 30 20
Thursday 30 30 20 30
Friday 10 20 10 30

Find an optimal schedule of the seminars. Also find out the total number of students who will be missing at
least 1 seminar.

Q-2 A solicitor’s firm employs typists on hourly piece-rate basis for their daily work. There are 5 typists
and their charges and speed are different. According to an earlier understanding, only 1 job is given to 1
typist and the typist is paid for a full hour even when he works for a fraction of an hour. Find the least cost
allocation for the following data:

No. of pages
Typist Rate/hr (Rs) Job No. of pages
typed/hr

A 5 12 P 199
B 6 14 Q 175
C 3 8 R 145
D 4 10 S 298
E 4 11 T 178

Q-3 In a multi-storied building, there are 5 rooms to be assigned to 5 managers. Each room has its own
advantages and disadvantages. They are all of different shapes and sizes. Each of the 5 managers was
asked to rank their preferences amongst the rooms. Their preferences are recorded in the below table:

46 | P a g e For Internal Circulation

Downloaded by Phateh Agrawal ([email protected])
lOMoARcPSD|51814596

Manager

M1 M2 M3 M4 M5

302 302 303 302 301

303 304 301 305 302

304 305 304 304 304

301 305 303

302

Most of the managers did not list all the 5 rooms since they were not satisfied with some of these rooms.
Assuming that their preferences can be quantified in numbers, find out as to which manager should be
assigned to which room so that their total preference ranking is minimum.

Q-4 A firm produces 4 products. There are 4 operators capable of producing any of these 4 products. The
firm records 8 hrs a day and allows 30 min for lunch. The processing time in minutes and profit for
each of the products is given below. Find the optimal assignment of products to operators.

Operator A B C D

1 15 9 10 6

2 10 6 9 6

3 25 15 15 9

4 15 9 10 10

Profit/Unit 8 6 5 4

Q-5 A company has 4 sales representatives who are to be assigned 4 sales territories. The monthly sales
increase estimated for each sale representatives are shown below. Suggest optimal assignment so as to
maximize total sales per month.

47 | P a g e For Internal Circulation

Downloaded by Phateh Agrawal ([email protected])
lOMoARcPSD|51814596

Sales Sales Territories

Representatives I II III IV

A 200 150 170 220

B 160 120 150 140

C 190 195 190 200

D 180 175 160 190

If for certain reasons, sales representative B cannot be assigned to sales territory III, will the optimal
assignment schedule be different? If so, find that schedule and its effect on sales.

Q6. An airline, operating 7 days a week, has given the following schedule of its flights between New Delhi
and Mumbai. The crews should have a minimum of 5 hours between the flights. Obtain the pairing of
flights that minimizes layover time away from home. For any given pairing, the crew will be based at the
city that results in the smallest layover.

New Delhi-Mumbai Mumbai-New Delhi

Flight No. Departure Arrival Flight No. Departure Arrival

101 5 A.M. 7 A.M. 201 7 A.M. 9 A.M.

102 7 A.M. 9 A.M. 202 8 A.M. 10 A.M.

103 1 P.M. 3 P.M. 203 1 P.M. 3 P.M.

104 7 P.M. 9 P.M. 204 6 P.M. 8 P.M.

Q-7 A company proposes to undertake a national promotional campaign for its newly developed product. It
has decided to schedule a series of 1 minute commercials during peak audience viewing hours of 1 P.M. - 5
P.M. To reach the widest possible audience the company wants to schedule 1 commercial on each of the
networks & to have only 1 commercial appear during each of the 4 one-hour time blocks. The exposure
ratings for each hour, which represent the number of of viewers per Rs. 10,000 spent, are given below:

48 | P a g e For Internal Circulation

Downloaded by Phateh Agrawal ([email protected])
lOMoARcPSD|51814596

Network
Viewing Hours A B C D
1-2 P.M. 27.1 18.1 11.3 9.5
2-3 P.M. 18.9 15.5 17.1 10.6
3-4 P.M. 19.2 18.5 9.9 7.7
4-5 P.M. 11.5 21.4 16.8 12.8

a) Which network should be scheduled each hour to provide maximum audience exposure?
b) How would schedule change if it is decided not to use network A between 1-3 P.M.?

49 | P a g e For Internal Circulation

Downloaded by Phateh Agrawal ([email protected])
lOMoARcPSD|51814596

NOTES

50 | P a g e For Internal Circulation

Downloaded by Phateh Agrawal ([email protected])
lOMoARcPSD|51814596

NOTES

51 | P a g e For Internal Circulation

Downloaded by Phateh Agrawal ([email protected])
lOMoARcPSD|51814596

Unit 5- Simulation

It is the imitation of the operation of a real-world process or system over time. The act of simulating
something first requires that a model be developed; this model represents the key characteristics or
behaviors/functions of the selected physical or abstract system or process.

The model represents the system itself, whereas the simulation represents the operation of the system over
time.

Simulation is used in many contexts, such as simulation of technology for performance optimization, safety
engineering, testing, training, education, and video. Often, computer experiments are used to study simulation
models. Simulation is also used with scientific modeling of natural systems or human systems to gain insight
into their functioning.[2] Simulation can be used to show the eventual real effects of alternative conditions and
courses of action. Simulation is also used when the real system cannot be engaged, because it may not be
accessible, or it may be dangerous or unacceptable to engage, or it is being designed but not yet built, or it
may simply not exist.[3]

Key issues in simulation include acquisition of valid source information about the relevant selection of key
characteristics and behaviors, the use of simplifying approximations and assumptions within the simulation,
and fidelity and validity of the simulation outcomes.

The most commonly used method for simulation is Monte Carlo Method. 'Monte Carlo Simulation' A
problem solving technique used to approximate the probability of certain outcomes by running multiple trial
runs, called simulations, using random variables.

Process of Simulation
 Simulation: a descriptive method
 To simulate is to replicate a system
 Phases of simulation process:
 Definition of the problem and statement of objectives
 Construction of an appropriate model
 Experimentation with the model constructed
 Evaluation of the results of simulation
Monte Carlo Simulation
• Uses random numbers to generate data
• Process calls for:
 Determination of random number intervals
 Obtaining random numbers and finding the input values corresponding to them
 Carrying out needed simulation
• Is used extensively in areas like capital budgeting; inventory control; queuing analysis; and
project management.

52 | P a g e For Internal Circulation

Downloaded by Phateh Agrawal ([email protected])
lOMoARcPSD|51814596

Practice Questions
Que.1 The weekly demand for laptops at a dealer’s shop is as follows:

Demand 0 1 2 3 4 5 6

No of Days 5 16 28 12 14 15 10

Simulate the demand for the next two weeks using the following random numbers.

39, 20, 19, 75, 82, 36, 05, 10, 90, 88, 64, 50, 57, 29

Que-2 The no. of Airhostesses reporting sick at a leading airline company is distributed as follows:

No of
0 1 2 3 4 5 6
Airhostesses
Probability .10 .17 .30 .20 .10 .08 .05

Simulate the absenteeism pattern of the airhostesses for the next two weeks using the following random
numbers.

10, 25, 36, 82, 79, 44, 75, 80, 19, 20, 66, 75, 99, 75

Que-3 At a bill counter customers arrival and service times are distributed as follows:

Inter Arrival Times (In Mins) Probability Service Times (In Mins) Probability
2 .05 2 .05
4 .25 3 .15
6 .45 4 .35
8 .15 5 .30
10 .10 6 .07
7 .08

Assuming that the counter opens at 8.00 AM, Simulate the arrival and Service pattern for the next 10
customers using the following random numbers.

For Inter arrival times: 21, 65, 75, 84, 35, 65, 72, 44, 90, 24

For Service times: 16, 75, 26, 44, 86, 95, 56, 28, 37, 29

Hence compute the waiting times of the customer & server.

53 | P a g e For Internal Circulation

Downloaded by Phateh Agrawal ([email protected])
lOMoARcPSD|51814596

Que-4 The occurrence of rain in a city on a day is dependent on whether it rained on the previous day: if it
rained on the previous day the rain distribution is given as follows:

Event No Rain 1 cm Rain 2 cm Rain 3 cm Rain 4 cm Rain 5 cm Rain

Probability .50 .25 .15 .05 .03 .02

If it did not rain on the previous day the rain distribution is given by:

Event No Rain 1 cm Rain 2 cm Rain 3 cm Rain

Probability .75 .15 .06 .04

Simulate the city’s whether for ten days & determine by simulation the total days without rain as well as the
total rain fall during the period using the following random numbers:

67, 63, 39, 55, 29, 78, 70, 6, 78, 76

Assume that for the first day of the simulation it had not rain the day before.

Que-5 Find out the total inventory cost for 15 weeks of a company whose demand during lead time as well as
lead time distribution are given as follows:

Demand 0 1 2 3
Probability .10 .45 .30 .15

Lead Time 2 3 4
Probability .20 .65 .15

The reorder point is 6 units & reorder quantity is 12 units. If the Ordering cost is Rs. 100 per order, holding
cost is Rs. 4/ unit, Shortage cost is Rs. 60 per unit. Assume initial inventory of 10 units.
Random No. (Lead Time): 47, 74
Random No. (Demand): 57, 77, 25, 99, 09, 79, 79, 48, 05, 24, 47, 65, 56, 52, 17,

54 | P a g e For Internal Circulation

Downloaded by Phateh Agrawal ([email protected])
lOMoARcPSD|51814596

Que-6 The manager of a warehouse is interested in designing an inventory control system for its products.
The demand of the products comes from various retail outlets & it receives its stock from a factory
whose lead time is not constant. The manager wants to determine best release orders so as to minimize
stock outs yet keeping the total inventory cost at acceptable levels. Based on the study following data
are available:

Demand 0 1000 2000 3000

Probability .20 .40 .30 .10

Lead Time 2 3 4

Probability .30 .40 .30

If the Ordering cost is Rs. 50 per order, holding cost is Rs. 2/ unit, Shortage cost is Rs. 10 per unit. Determine
10 simulation runs if the ordering policy suggests that whenever inventory level becomes less than or equal to
2000 units, an order equal to 4000 units is placed. Assume inventory of 3000 units in hand.
Random Nos. (Lead Time): 29, 33, 44, 57, 72
Random Nos. (Demand): 31, 70, 53, 86, 32, 78, 26, 64, 45, 12
Also find out total inventory cost if reorder level is 2000 units & reorder quantity is 3000 units.

Que-7 A company trading motor car spares wishes to determine the level of stock. The demand is not certain
& the lead time for stock replenishment is 2 days. Following data is also available:

Demand 3 4 5 6 7

Probability .10 .20 .30 .30 .10

Carry out simulation for a period of 10 days. The Ordering cost is Rs. 50 per order, holding cost is Rs. 2/ unit.
If the ordering policy is to order 20 units with reorder point at 15 units and inventory in hand is 20 units,
calculate total inventory cost using following Random Nos.
73, 44, 4, 39, 89, 8, 44, 74, 11, 64

55 | P a g e For Internal Circulation

Downloaded by Phateh Agrawal ([email protected])
lOMoARcPSD|51814596

NOTES

56 | P a g e For Internal Circulation

Downloaded by Phateh Agrawal ([email protected])
lOMoARcPSD|51814596

NOTES

57 | P a g e For Internal Circulation

Downloaded by Phateh Agrawal ([email protected])
lOMoARcPSD|51814596

Unit-6 Network Analysis

Rules of Network Construction

1. Each activity is represented by one arrow

2. An activity can begin only when all its predecessors are done

3. Length and bearing of arrows is of no consequence

4. Arrow direction indicates general progression in time – tail events represent start while head
events represent end of activities

5. Events are identified by numbers while activities are represented by their starting and ending
events

6. A network should have only one initial and one final node

7. Introduce as few dummy activities as may be necessary

8. Looping is not permitted

Floats

 Total float is the amount of time by which an activity may be delayed without delaying the
project completion

 Caution: interpret total floats of activities carefully - all cannot be used independently

 Free float is that part of total float which can be used without affecting floats of the succeeding
activities

 The part of total float which is not free is called interfering float

 Independent float is the amount of time which can be used without affecting the head and the
tail events

Total Float ≥ Free Float ≥ Independent Float

 Total float = Latest start time – Earliest start time

 Free float = Total float – Head event slack

 Interfering float = Total float – Free float

 Independent float = Free float – Tail event slack, or zero, whichever is higher

58 | P a g e For Internal Circulation

Downloaded by Phateh Agrawal ([email protected])
lOMoARcPSD|51814596

PERT (Program Evaluation & Review Technique)

 Uses three time estimates for every activity: optimistic (a), most likely (m) and pessimistic (b)

 They are used to obtain expected times and their variances

Expected time = (a+4×m+b)/6; and

Variance = [(b – a)/6]2

 Obtain critical path using expected times and identify critical activities

 Add variances for critical activities to get variance for completion time and find its square root
to get standard deviation

 With expected duration and standard deviation, calculate probabilities of project completion
using normal distribution

PERT/Cost

 A modification of PERT which allows planning, monitoring and controlling of project cost and
duration

 Budgeting process allows to determine how much money is to be spent every time unit
(week/month) over planned duration of project

 Budgets are prepared on the basis of earliest and latest start times of activities

 Comparisons are made continuously between the actual costs and budgeted amounts

 Comparisons are also made between percentage of work done and percentage of budgeted
amount spent: if former is smaller than the later, we have budget overrun

59 | P a g e For Internal Circulation

Downloaded by Phateh Agrawal ([email protected])
lOMoARcPSD|51814596

Practice Questions

Q-1 Draw the Network diagram.

Activity Immediate predecessor

A -
B -
C -
D A
E C
F A
G D,B,E

Q-2 Draw the Network diagram.

Activity Immediate predecessor

A -
B A
C A
D C
E B,D
F E
G B,D
H F,G

Q-3 Draw the Network diagram.

Activity Immediate predecessor

A -
B A
C A
D B,C
E C
F D
G E
H F,G

Q-4 Draw the Network diagram.

60 | P a g e For Internal Circulation

Downloaded by Phateh Agrawal ([email protected])
lOMoARcPSD|51814596

Activity Immediate predecessor

A -
B -
C Optimistic Time -
Most Likely Pessimistic
Activity Predecessor
D A,B
(WK) (WK) (WK)
A -E 2 4B,C 6
B -F 6 6A,B 6
C -G 6 12C 24
D AH 2 D,E,F
5 8
E AI 11 14D 23
F B, DJ 8 10 G 12
G B,DK 3 6G 9
H C, FL 9 15H,J 27
I EM 4 10K 16
N I,L

Q-5 Draw the Network diagram and calculate critical path.

Expected completion Time

Activity Immediate predecessor
(weeks)
A - 5
B A 2
C A 6
D B 12
E D 10
F D 9
G D 5
H B 9
I C,E 1
J G 2
K F,I,J 3
L K 9
M H,G 7
N M 8

Q-6 Draw the Network diagram and calculate the following:

61 | P a g e For Internal Circulation

Downloaded by Phateh Agrawal ([email protected])
lOMoARcPSD|51814596

What is the Probability of completing the project one week before the expected time?

Calculate the schedule time of completion with 95% probability

Q-7 Draw the Network diagram and calculate the following:

Activity Optimistic Time (Days) Most Likely (Days) Pessimistic (Days)

1-2 3 6 15
1-6 2 5 14
2-3 6 12 30
2-4 2 5 8
3-5 5 11 17
4-5 3 6 15
5-8 1 4 7
6-7 3 9 27
7-8 4 19 28

a. Calculate the critical path & expected completion time

b. Calculate the probability of completing the jobs in 41 days.

62 | P a g e For Internal Circulation

Downloaded by Phateh Agrawal ([email protected])
lOMoARcPSD|51814596

Q-8 Draw the Network diagram and calculate the following:

Optimistic Time Most Likely

Activity Pessimistic (Days)
(Days) (Days)

1-2 1 2 3
2-3 1 2 3
2-4 1 3 5
3-5 3 4 5
4-5 2 3 4
4-6 3 5 7
5-7 4 5 6
6-7 6 7 8
7-8 2 4 6
7-9 4 6 8
8-10 1 2 3
9-10 3 5 7

a. Calculate the critical path & expected completion time

b. Calculate the probability of completing the jobs in 30 days.

Q-9 Draw the Network diagram and calculate the following:

Optimistic Time Most Likely

Activity Pessimistic (Days)
(Days) (Days)

1-2 3 5 8
1-3 2 3 5
1-5 2 3 4
2-3 1 2 5
2-6 7 8 9
3-4 1 3 6
3-5 2 4 6
4-5 1 2 4
5-6 1 2 3

a. Calculate the critical path & expected completion time

b. Calculate the schedule time of completion with 98% probability

63 | P a g e For Internal Circulation

Downloaded by Phateh Agrawal ([email protected])
lOMoARcPSD|51814596

Q-10 Draw the Network diagram and calculate the following:

Optimistic Time Most Likely

Activity Pessimistic (Days)
(Days) (Days)
1-2 5 8 10
1-3 18 20 22
1-4 26 33 40
2-5 16 18 20
2-6 15 20 25
3-6 6 9 12
4-7 7 10 12
5-7 7 8 9
6-7 3 4 5

a. Calculate the critical path & expected completion time

b. Calculate the probability OF COMPLETING THE PROJECT IN 41.5 DAYS.

Q-11 Draw the Network diagram and calculate the following:

Optimistic Time Most Likely

Activity Pessimistic (Days)
(Days) (Days)
1-2 1 2 9
2-3 1 4 7
2-4 2 4 12
3-4 0 0 0
3-5 2 3 4
3-7 6 8 16
4-5 4 6 8
4-6 3 5 7
5-6 ½ 1 3/2
5-7 5 7 15
6-7 3 5 13

a. Calculate the critical path & expected completion time

b. Calculate the probability OF COMPLETING THE PROJECT IN 25 DAYS.
c. Calculate the schedule time of completion with 98% probability

64 | P a g e For Internal Circulation

Downloaded by Phateh Agrawal ([email protected])
lOMoARcPSD|51814596

Q-12 Draw the Network diagram and calculate the following:

Optimistic Time Most Likely

Activity Pessimistic (Days)
(Days) (Days)
10-20 4 8 12
20-30 1 4 7
20-40 8 12 16
30-50 3 5 7
40-50 0 0 0
40-60 3 6 9
50-70 3 6 9
50-80 4 8 6
60-100 4 6 8
70-90 4 8 12
80-90 2 5 8
90-100 4 10 16

a. Calculate the critical path & expected completion time

b. Calculate the probability OF COMPLETING THE PROJECT IN 48 DAYS.
c. Calculate the schedule time of completion with 95% probability

Q-13 Draw the Network diagram and calculate the following:

Optimistic Time Most Likely

Activity Pessimistic (Days)
(Days) (Days)

1-2 2 4 6
1-3 6 6 6
1-4 6 12 24
2-3 2 5 8
2-5 11 14 28
3-4 15 24 45
3-6 3 6 9
4-6 9 15 27
5-6 4 10 16

a. Calculate the critical path & expected completion time

b. Calculate the probability OF COMPLETING THE PROJECT IN 60 DAYS.
c. Calculate the schedule time of completion with 90% probability

Q-14 Draw the Network diagram and calculate the following:

65 | P a g e For Internal Circulation

Downloaded by Phateh Agrawal ([email protected])
lOMoARcPSD|51814596

Optimistic Time
Activity Most Likely (Days) Pessimistic (Days)
(Days)

1-2 1 4 7

1-3 5 10 17
2-4 3 3 3

2-6 1 4 7

3-4 8 15 26

3-5 2 4 8

4-5 5 5 5

5-6 2 5 8

a. Calculate the critical path & expected completion time

b. Calculate the probability OF COMPLETING THE PROJECT IN 5 days more than the expected time.
c. Calculate the schedule time of completion with 95% probability

Q-15 Draw the Network diagram and calculate the following:

Activity Optimistic Time (Days) Most Likely (Days) Pessimistic (Days)

1-2 1 2 3
1-3 1 2 3
1-4 0 0 0
2-5 1 2 3
2-6 2 5 8
3-7 3 4 5
4-8 3 5 7
5-9 4 6 8
6-9 2 3 4
7-8 3 4 5
8-9 4 6 8

a. Calculate the critical path & expected completion time

b. Calculate the probability of completing the jobs in 19 days.
c. Calculate the schedule time of completion with 95% probability

66 | P a g e For Internal Circulation

Downloaded by Phateh Agrawal ([email protected])
lOMoARcPSD|51814596

NOTES

67 | P a g e For Internal Circulation

Downloaded by Phateh Agrawal ([email protected])
lOMoARcPSD|51814596

NOTES

68 | P a g e For Internal Circulation

Downloaded by Phateh Agrawal ([email protected])
lOMoARcPSD|51814596

69 | P a g e For Internal Circulation

Downloaded by Phateh Agrawal ([email protected])
lOMoARcPSD|51814596

70 | P a g e For Internal Circulation

Downloaded by Phateh Agrawal ([email protected])
lOMoARcPSD|51814596

71 | P a g e For Internal Circulation

Downloaded by Phateh Agrawal ([email protected])
lOMoARcPSD|51814596

72 | P a g e For Internal Circulation

Downloaded by Phateh Agrawal ([email protected])
lOMoARcPSD|51814596

73 | P a g e For Internal Circulation

Downloaded by Phateh Agrawal ([email protected])
lOMoARcPSD|51814596

Bharati Vidyapeeth Deemed University,

Institute of Management and Research (BVIMR), New Delhi
1st Internal Examination
Subject Introduction to Operations Research (BBA –V) Course Code: J010326
Max. Marks: 40 Max. Time: 2 Hours
Instructions: 1. Attempt all questions
2. Show the detailed calculations, wherever required
Q. 1 Attempt any five questions. Answer in 50 words [5 x 2]
a) Explain Unbalanced Transportation Problem with the help of an example.
b) Find the initial Basic Feasible Solution using NWC method:

P Q R SUPPLY

A 7 5 10 100

B 20 9 23 50

C 8 21 7 200

DEMAND 120 170 60

c) Find the initial Basic Feasible Solution using Least Cost method:

W1 W2 W3 SUPPLY

I 4 6 8 300

II 4 2 9 200

III 8 7 10 500

DEMAND 400 200 300

d) Write the applications of Linear Programming.

e) Explain infeasibility in LPP with example.
f) Write the various steps of solving transportation problem using Vogel’s Approximation Method.
g) Explain how to deal with Maximization case in transportation with a suitable example.
h) What is Degeneracy in transportation Problems?
Q. 2 Attempt any two questions. Answer in 200 words [2x 5]
a) Discuss the advantages & limitations of LPP.
b) Explain the graphical method of solving Linear Programming Problems?
c) What is the history of Operations Research?
Q.3 Attempt any two questions. Answer in 200 words [2 x 5]
a) A medical scientist claims to have found a cure for the common cold that consists of three drugs called
K, S and H. His results indicate that the minimum daily adult dosage for effective treatment is 10 mg.
of drug K, 6 mg. of drug S, and 8 mg. of drug H. Two substances are readily available for preparing
pills or drugs. Each unit of substance A contains 6 mg., 1 mg. and 2 mg. of drugs K, S and H
respectively, and each unit of substance B contains 2 mg, 3 mg, and 2 mg., of the same drugs.
Substance A costs Rs. 3 per unit and substance B costs Rs. 5 per unit. Find the least-cost combination
74 | P a g e For Internal Circulation
Downloaded by Phateh Agrawal ([email protected])
lOMoARcPSD|51814596

of the two substances that will yield a pill designed to contain the minimum daily recommended adult
dosage.

b) A car company is faced with an allocation problem resulting from rental agreement that allow cars to
be transported to locations other than those which they were originally rented. At the present time
there are two centers with 15 and 13 cars available respectively and 4 locations requiring 9, 6, 7 and 9
cars respectively. The unit transportation costs between the location are given below:-

Destinations/ Sources D1 D2 D3 D4

S1 45 17 21 30

S2 14 18 19 31

Obtain the minimum cost schedule.

c) Use the graphical method to solve the LPP.
Minimize Z = -X + 2Y
Subject to the constraints
-X+ 3Y ≤ 10
X+Y≤6
X–Y≤2
And X, Y ≥ 0

Q.4 Attempt any one. Answer in 600 words [10 x 1]

a) An airplane can carry a maximum of 200 passengers. A profit of Rs. 200 is made on each of the first class ticket
and a profit of Rs 300 is made on each of economy class ticket. The airline reserves at least 20 seats for first
class. However, at least 4 times as many passengers prefer to travel by economy class than by the first class.
How many tickets of each class must be sold in order to maximize profit for the airline? Formulate the problem
and find the solution using graphical method.

b) Consider the transportation Problem presented in the following table:-

Distribution Centre

Plant D1 D2 D3 D4 Supply

P1 19 30 50 12 7

P2 70 30 40 60 10

P3 40 10 60 20 18

Requirement 5 8 7 15 35

Determine the optimal solution of the above problem.

75 | P a g e For Internal Circulation

Downloaded by Phateh Agrawal ([email protected])
lOMoARcPSD|51814596

Bharati Vidyapeeth Deemed University,

Institute of Management and Research (BVIMR), New Delhi
2nd Internal Examination
Course BBA Semester V Subject: Introduction to Operations Research Course Code: J010330
Max. Marks: 40 Max. Time: 2:00 Hours
-----------------------------------------------------------------------------------------------------------------------------------
Instructions: - (use of Simple 10 digits Calculator is allowed)
Q. 1 Attempt any five questions: [5 x 2]
a) Draw the Network diagram

Activity A B C D E F G H I J
Predecessor - A - C B,C C F D,E,G D,E H,I

b) Define critical path.

c) Define Total Float.
d) What do you understand with expected time?
e) Define Independent Float
f) How do you balance an unbalanced assignment problem?
g) How do you handle maximization case in Assignment Problem? Show with example.
h) Discuss advantages & disadvantages of Monte Carlo Method.
Q. 2 Attempt any two questions: [2 x 5]
a) Differentiate between PERT & CPM
b) Write short note on simulation.
c) Discuss Hungarian method of solving assignment problem.
Q.3 Attempt any two questions: [2 x 5]
a) A Sales Manager wishes to assign four sales territories to four sales persons. The Sales person differ in
their Sales acumen and consequently the sales expected to be effected in each territory are different for
each sales person. The estimates of sales per month in thousands of rupees for each sales person in
each territory are given below:

Sales Person/Sales
T1 T2 T3 T4
territories
P 56 25 32 45
Q 45 21 54 26
R 21 54 36 45
S 34 35 28 52

Find an optimal schedule to maximize the total sales revenue.

b) A company selling water heaters examines it sales over the past 50 days and notes the following:

Hot Water Heater Sales per day No. of days this heater was sold
4 6
5 5
6 9
7 12
8 8
9 7
10 3
Using the following random numbers, simulate the demand for next 20 days and also calculate the
average demand per day?
76 | P a g e For Internal Circulation
Downloaded by Phateh Agrawal ([email protected])
lOMoARcPSD|51814596

10, 24, 03, 32, 23, 59, 95, 34, 34, 51, 08, 48, 66, 97, 03, 96, 46, 74, 77, 44
c) Complete the following table:

Activity Predecessor Duration ES EF LS LF TF HS FF TS IF

A I 12 12 24 0 0
B H,F 14 39 53 0 0
C D 20 19 42 3 10
D I 7 12 29 10 0
E C,G 11 39 53 0 3
F A,D 7 24 39 0 5
G A,D 13 24 42 3 5
H A 15 24 39 0 0
I - 12 0 12 0 0

Q.4 Attempt any one question: an [1 x 10]

a) Draw Network diagram, Calculate Critical path. Expected project Completion time. Also calculate the
probability of completing the project in less than 5 days & greater than 3 days of expected completion
time of the project.

Activity Predecessor Optimistic time (Days) Most Likely time (Days) Pessimistic Time (Days)
A - 7 9 17
B A 5 7 15
C A 1 8 9
D B 9 13 23
E B 6 10 20
F B,C 10 15 20
G B,.C 5 6 13
H D,F 12 17 28

b) Inter arrival and service times studied over past few years for a single channel queuing system revealed the
following patterns:

Inter Arrival Times (In Mins) Probability Service Times (In Mins) Probability
2 .19 1 .15
4 .22 3 .28
6 .32 5 .30
8 .17 7 .17
10 .10 9 .10

Using the following random no, simulate the queue behavior for a period of 60 minutes. Also calculate
waiting time of server & customers.
Random No. for inter arrival time: 19 32 59 81 27 45 26 52 77 46 85 83 34 42 43 07 17 23
Random No for Service times: 08 27 74 96 48 07 65 78 92 49 12 63 10 06 97 53 48 7

77 | P a g e For Internal Circulation

Downloaded by Phateh Agrawal ([email protected])
lOMoARcPSD|51814596

78 | P a g e For Internal Circulation

Downloaded by Phateh Agrawal ([email protected])
lOMoARcPSD|51814596

79 | P a g e For Internal Circulation

Downloaded by Phateh Agrawal ([email protected])
lOMoARcPSD|51814596

80 | P a g e For Internal Circulation

Downloaded by Phateh Agrawal ([email protected])
lOMoARcPSD|51814596

81 | P a g e For Internal Circulation

Downloaded by Phateh Agrawal ([email protected])
lOMoARcPSD|51814596

82 | P a g e For Internal Circulation

Downloaded by Phateh Agrawal ([email protected])
lOMoARcPSD|51814596

83 | P a g e For Internal Circulation

Downloaded by Phateh Agrawal ([email protected])
lOMoARcPSD|51814596

84 | P a g e For Internal Circulation

Downloaded by Phateh Agrawal ([email protected])
lOMoARcPSD|51814596

85 | P a g e For Internal Circulation

Downloaded by Phateh Agrawal ([email protected])
lOMoARcPSD|51814596

86 | P a g e For Internal Circulation

Downloaded by Phateh Agrawal ([email protected])
lOMoARcPSD|51814596

87 | P a g e For Internal Circulation

Downloaded by Phateh Agrawal ([email protected])

Operation R Admas4.1
100% (1)
Operation R Admas4.1
193 pages
Operation Research
No ratings yet
Operation Research
4 pages
Bba Semiii or LTP
No ratings yet
Bba Semiii or LTP
4 pages
Operation Research
No ratings yet
Operation Research
180 pages
Ece 2311 Course Outline
No ratings yet
Ece 2311 Course Outline
2 pages
Operational Research
No ratings yet
Operational Research
4 pages
PGDM Programme (Full Time: 2 Year Course) : Operations Research
No ratings yet
PGDM Programme (Full Time: 2 Year Course) : Operations Research
4 pages
Syllabus
No ratings yet
Syllabus
2 pages
Oprm 521
100% (1)
Oprm 521
2 pages
Operations Research Syllabus
100% (1)
Operations Research Syllabus
1 page
EMT 2420 OR ECE 2311 COURSE OUTLINE Operation Research
No ratings yet
EMT 2420 OR ECE 2311 COURSE OUTLINE Operation Research
3 pages
Bma3201 Operations Research I
No ratings yet
Bma3201 Operations Research I
190 pages
Unit I: Introduction To OR and Linear Programming
No ratings yet
Unit I: Introduction To OR and Linear Programming
1 page
Sensitivity Analysis
No ratings yet
Sensitivity Analysis
3 pages
OR Question Papers
No ratings yet
OR Question Papers
14 pages
Course - Plan or 2023-2024
No ratings yet
Course - Plan or 2023-2024
12 pages
Black Power Movement Essay - Shorteneddocx
No ratings yet
Black Power Movement Essay - Shorteneddocx
2 pages
In An Unspoken Voice How The Body Releases Trauma and Restores Goodness No-Wait Download
95% (20)
In An Unspoken Voice How The Body Releases Trauma and Restores Goodness No-Wait Download
16 pages
Operation Research MB 301
No ratings yet
Operation Research MB 301
5 pages
Bma3201 Operations Research I
No ratings yet
Bma3201 Operations Research I
190 pages
OR Course Outline BA
No ratings yet
OR Course Outline BA
16 pages
MAT2004 Operations Research
No ratings yet
MAT2004 Operations Research
2 pages
BMA3201
No ratings yet
BMA3201
189 pages
LP - or
No ratings yet
LP - or
9 pages
Operation Research
No ratings yet
Operation Research
6 pages
LP A
No ratings yet
LP A
2 pages
Hepm3203 Operations Research
100% (1)
Hepm3203 Operations Research
95 pages
Operations Research Syllabus
No ratings yet
Operations Research Syllabus
2 pages
Operations Research - MBA - 2nd Sem
No ratings yet
Operations Research - MBA - 2nd Sem
225 pages
Operations Research
No ratings yet
Operations Research
5 pages
Operations Research Outline Updated
No ratings yet
Operations Research Outline Updated
8 pages
END331 Lecturenotes Week1
No ratings yet
END331 Lecturenotes Week1
79 pages
2024 - Handout - Operations Research
100% (1)
2024 - Handout - Operations Research
134 pages
OR Course Outline
No ratings yet
OR Course Outline
5 pages
5 Ways To Build Extraordinary Resilience, According To An Ex-Navy SEAL and Paralympic Champion - The Epoch Times
No ratings yet
5 Ways To Build Extraordinary Resilience, According To An Ex-Navy SEAL and Paralympic Champion - The Epoch Times
10 pages
Or Course Outline
No ratings yet
Or Course Outline
2 pages
Optimization Techniques All
No ratings yet
Optimization Techniques All
13 pages
Mee1024 Operations-Research TH 1.1 47 Mee1024 PDF
No ratings yet
Mee1024 Operations-Research TH 1.1 47 Mee1024 PDF
2 pages
Lecture 1 or
No ratings yet
Lecture 1 or
24 pages
604 Operation Research
No ratings yet
604 Operation Research
2 pages
Operations Research: Course Code: BBAOM 20301 Course Objective
No ratings yet
Operations Research: Course Code: BBAOM 20301 Course Objective
1 page
Module 1 - LPP
No ratings yet
Module 1 - LPP
111 pages
Operational Research EAC
No ratings yet
Operational Research EAC
5 pages
Course Pack OR-BBA 2020
No ratings yet
Course Pack OR-BBA 2020
88 pages
Course Pack OR-BBA 2020
No ratings yet
Course Pack OR-BBA 2020
80 pages
Revised OPERATIONS RESEARCH 2023
No ratings yet
Revised OPERATIONS RESEARCH 2023
4 pages
Mobile Industry Case Study
No ratings yet
Mobile Industry Case Study
15 pages
Course Outline
No ratings yet
Course Outline
14 pages
Ilovepdf Merged
No ratings yet
Ilovepdf Merged
15 pages
Operation Reaserch Concept
No ratings yet
Operation Reaserch Concept
2 pages
Placement Brochure - Compressed
No ratings yet
Placement Brochure - Compressed
47 pages
Detailed Lesson Plan Perfect Marzan Grade 9
No ratings yet
Detailed Lesson Plan Perfect Marzan Grade 9
8 pages
Or Course Outline - For Admas University College
100% (1)
Or Course Outline - For Admas University College
3 pages
Case Description - India
No ratings yet
Case Description - India
7 pages
? M - Merged
No ratings yet
? M - Merged
4 pages
80 Page Dissertation
100% (1)
80 Page Dissertation
7 pages
How Do You Write A Thesis For A Comparison Essay
100% (3)
How Do You Write A Thesis For A Comparison Essay
7 pages
Kabarak University School of Business Management Science Department BMGT 410: Operations Research Course Instructor: B. Chelangat
No ratings yet
Kabarak University School of Business Management Science Department BMGT 410: Operations Research Course Instructor: B. Chelangat
4 pages
Project 2 Solution Stanford Library Management System
88% (8)
Project 2 Solution Stanford Library Management System
15 pages
Holdeman
No ratings yet
Holdeman
3 pages
Chapter 7 Worksheet
No ratings yet
Chapter 7 Worksheet
4 pages
Operation Research-D.M.Marathe
No ratings yet
Operation Research-D.M.Marathe
7 pages
Archana MSC 4th Semester
No ratings yet
Archana MSC 4th Semester
2 pages
Operations Research For 8th Sem (Loser Boi)
100% (1)
Operations Research For 8th Sem (Loser Boi)
821 pages
Quantitative Analysis For Business Decisions
No ratings yet
Quantitative Analysis For Business Decisions
71 pages
Apexamhug
No ratings yet
Apexamhug
3 pages
Hepl3109 Quantitive Modeling
No ratings yet
Hepl3109 Quantitive Modeling
95 pages
Case Study Civics
No ratings yet
Case Study Civics
3 pages
Programme Educational Objectives:: Assoc - Professor
No ratings yet
Programme Educational Objectives:: Assoc - Professor
9 pages
Mat2004 Operation-Research LT 1.0 1 Mat2004
No ratings yet
Mat2004 Operation-Research LT 1.0 1 Mat2004
2 pages
On Lop 11
No ratings yet
On Lop 11
12 pages
Advanced Production and Operation Management
No ratings yet
Advanced Production and Operation Management
3 pages
Capital Budgeting - CASELET
No ratings yet
Capital Budgeting - CASELET
2 pages
ABP - MPDO Lakkireddy Palli Mandal Approved Letter
No ratings yet
ABP - MPDO Lakkireddy Palli Mandal Approved Letter
3 pages
Fortuna & Salem PPT Research 1
No ratings yet
Fortuna & Salem PPT Research 1
15 pages
Marketing The HRD Function
67% (3)
Marketing The HRD Function
14 pages
Gujarat Technological University: W.E.F. AY 2018-19
No ratings yet
Gujarat Technological University: W.E.F. AY 2018-19
3 pages
Unit 4 Assignment Brief Leadership 0 Management Latest
No ratings yet
Unit 4 Assignment Brief Leadership 0 Management Latest
12 pages
1
No ratings yet
1
4 pages
2171901
No ratings yet
2171901
4 pages
Course Outline Operations Research
No ratings yet
Course Outline Operations Research
3 pages
Operational Re
0% (1)
Operational Re
177 pages
Universiti Teknologi Mara Akademi Pengajian Bahasa ELC231/230 Integrated Language Skills Iii/ Integrated Language Skills: Writing
No ratings yet
Universiti Teknologi Mara Akademi Pengajian Bahasa ELC231/230 Integrated Language Skills Iii/ Integrated Language Skills: Writing
4 pages
A. Introduction
No ratings yet
A. Introduction
3 pages
FS2 Le9
No ratings yet
FS2 Le9
3 pages
Brochure
No ratings yet
Brochure
2 pages
Quiz #1 Marketing Management Section E and F: Circle The Correct Option
No ratings yet
Quiz #1 Marketing Management Section E and F: Circle The Correct Option
4 pages
Detailed Lesson Plan
No ratings yet
Detailed Lesson Plan
5 pages
Anglo Eastern RESUME
No ratings yet
Anglo Eastern RESUME
2 pages
CV PDF
No ratings yet
CV PDF
3 pages
Logan 6e ISM Chapter 02
No ratings yet
Logan 6e ISM Chapter 02
22 pages
Compliance Audit Report SNNHSBNCHSINAC
No ratings yet
Compliance Audit Report SNNHSBNCHSINAC
7 pages
Detailed Lesson Plan in Science 1
100% (2)
Detailed Lesson Plan in Science 1
7 pages
Operations Research Syllabus
No ratings yet
Operations Research Syllabus
1 page
Essential Guide to Operations Management: Concepts and Case Notes
From Everand
Essential Guide to Operations Management: Concepts and Case Notes
David Bamford
No ratings yet