Assignment On Operations Research by Rahul Gupta
Assignment On Operations Research by Rahul Gupta
ASSIGNMENT ON
OPERATIONS
RESEARCH
BY RAHUL GUPTA
Q.1: Describe in details the OR approach of problem solving. What are
the limitations of the Operations Research?
Answer:
Optimization is the act of obtaining the best result under any given circumstance. In
various practical problems we may have to take many technical or managerial decisions at
several stages. The ultimate goal of all such decisions is to either maximize the desired
benefit or minimize the effort required. We make decisions in our every day life without
even noticing them. Decision-making is one of the main activities of a manager or executive.
In simple situations decisions are taken simply by common sense, sound judgment and
expertise without using any mathematics. But here the decisions we are concerned with are
rather complex and heavily loaded with responsibility. Examples of such decision are finding
the appropriate product mix when there are large numbers of products with different profit
contributions and production requirement or planning public transportation network in a
town having its own layout of factories, apartments, blocks etc. Certainly in such situations
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ASSIGNMENT ON OPERATIONS RESEARCH
also decision may be arrived at intuitively from experience and common sense, yet they are
more judicious if backed up by mathematical reasoning.
The search of a decision may also be done by trial and error but such a search may be
cumbersome and costly. Preparative calculations may avoid long and costly research. Doing
preparative calculations is the purpose of Operations research. Operations research does
mathematical scoring of consequences of a decision with the aim of optimizing the use of
time, efforts and resources and avoiding blunders.
OR studies the problem from over all points of view of organizations or situations
since optimum result of one part of the system may not be optimum for some other part.
Since no single individual can have a thorough knowledge of all fast developing
scientific know-how, personalities from different scientific and managerial cadre form a
team to solve the problem.
The first and the most important requirement is that the root problem should be identified and
understood. The problem should be identified properly, this indicates three major aspects:
A description of the goal or the objective of the study.
An identification of the decision alternative to the system.
Recognition of the limitations, restrictions and requirements of the system.
Limitations of OR:
The limitations are more related to the problems of model building, time and money factors.
Magnitude of computation: Modern problem involve large number of variables and hence to
find interrelationship, among makes it difficult.
Non – quantitative factors and Human emotional factor cannot be taken into account.
There is a wide gap between the managers and the operation researches.
Time and Money factors when the basic data is subjected to frequent changes then
incorporation of them into OR models are a costly affair.
Implementation of decisions involves human relations and behavior
Introduction:
In mathematics, linear programming (LP) is a technique for optimization of a linear
objective function, subject to linear equality and linear inequality constraints. Informally, linear
programming determines the way to achieve the best outcome (such as maximum profit or lowest
cost) in a given mathematical model and given some list of requirements represented as linear
equations.
More formally, given a polyhedron (for example, a polygon), and a real-valued affine
function defined on this polyhedron, a linear programming method will find a point on the
polyhedron where this function has the smallest (or largest) value if such point exists, by
searching through the polyhedron vertices.
Maximize
Subject to
Represents the vector of variables (to be determined), while and are vectors of (known)
coefficients and is a (known) matrix of coefficients. The expression to be maximized or
minimized is called the objective function ( in this case). The equations are the
constraints which specify a convex polytope over which the objective function is to be optimized.
Linear programming can be applied to various fields of study. Most extensively it is used in
business and economic situations, but can also be utilized for some engineering problems. Some
industries that use linear programming models include transportation, energy, telecommunications,
and manufacturing. It has proved useful in modeling diverse types of problems in planning, routing,
scheduling, assignment, and design.
Uses:
Linear programming is a considerable field of optimization for several reasons. Many practical
problems in operations research can be expressed as linear programming problems. Certain special
cases of linear programming, such as network flow problems and multi commodity flow problems are
considered important enough to have generated much research on specialized algorithms for their
solution. A number of algorithms for other types of optimization problems work by solving LP
problems as sub-problems. Historically, ideas from linear programming have inspired many of the
central concepts of optimization theory, such as duality, decomposition, and the importance of
convexity and its generalizations. Likewise, linear programming is heavily used in microeconomics
and company management, such as planning, production, transportation, technology and other
issues. Although the modern management issues are ever-changing, most companies would like to
maximize profits or minimize costs with limited resources. Therefore, many issues can boil down to
linear programming problems.
Standard form:
Standard form is the usual and most intuitive form of describing a linear programming problem.
It consists of the following three parts:
E.g. maximize
Problem constraints of the following form
e.g.
Non-negative variables
e.g.
Maximize
Subject to
Other forms, such as minimization problems, problems with constraints on alternative forms, as
well as problems involving negative variables can always be rewritten into an equivalent problem in
standard form.
Example-
Suppose that a farmer has a piece of farm land, say A square kilometers large, to be planted with
either wheat or barley or some combination of the two. The farmer has a limited permissible amount
F of fertilizer and P of insecticide which can be used, each of which is required in different amounts
per unit area for wheat (F1, P1) and barley (F2, P2). Let S1 be the selling price of wheat, and S2 the
price of barley. If we denote the area planted with wheat and barley by x1 and x2 respectively, then
the optimal number of square kilometers to plant with wheat vs. barley can be expressed as a linear
programming problem:
(limit on insecticide)
(cannot plant a negative area)
Maximize
Subject to
Maximize Z in:
Where the newly introduced slack variables, and Z are is the variable to be maximized.
Example-
Where are (non-negative) slack variables, representing in this example the unused area,
the amount of unused fertilizer, and the amount of unused insecticide.
Maximize Z in:
Duality:
Every linear programming problem, referred to as a primal problem, can be converted into a
dual problem, which provides an upper bound to the optimal value of the primal problem. In matrix
form, we can express the primal problem as:
Maximize
Subject to
Minimize
Subject to
There are two ideas fundamental to duality theory. One is the fact that the dual of a dual
linear program is the original primal linear program. Additionally, every feasible solution for a linear
program gives a bound on the optimal value of the objective function of its dual. The weak duality
theorem states that the objective function value of the dual at any feasible solution is always greater
than or equal to the objective function value of the primal at any feasible solution. The strong
duality theorem states that if the primal has an optimal solution, x*, then the dual also has an
optimal solution, y*, such that cTx*=bTy*.
A linear program can also be unbounded or infeasible. Duality theory tells us that if the
primal is unbounded then the dual is infeasible by the weak duality theorem. Likewise, if the dual is
unbounded, then the primal must be infeasible. However, it is possible for both the dual and the
primal to be infeasible (See also Farkas' lemma).
Example-
Revisit the above example of the farmer who may grow wheat and barley with the set
provision of some A land, F fertilizer and P insecticide. Assume now that unit prices for each of
these means of production (inputs) are set by a planning board. The planning board's job is to
minimize the total cost of procuring the set amounts of inputs while providing the farmer with a
floor on the unit price of each of his crops (outputs), S1 for wheat and S2 for barley. This corresponds
to the following linear programming problem:
Minimize
Subject to
The primal problem deals with physical quantities. With all inputs available in limited
quantities, and assuming the unit prices of all outputs is known, what quantities of outputs to
produce so as to maximize total revenue? The dual problem deals with economic values. With floor
guarantees on all output unit prices, and assuming the available quantity of all inputs is known, what
input unit pricing scheme to set so as to minimize total expenditure? To each variable in the primal
space corresponds an inequality to satisfy in the dual space, both indexed by output type? To each
inequality to satisfy in the primal space corresponds a variable in the dual space, both indexed by
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input type? The coefficients that bound the inequalities in the primal space are used to compute the
objective in the dual space, input quantities in this example. The coefficients used to compute the
objective in the primal space bound the inequalities in the dual space, output unit prices in this
example. Both the primal and the dual problems make use of the same matrix. In the primal space,
this matrix expresses the consumption of physical quantities of inputs necessary to produce set
quantities of outputs. In the dual space, it expresses the creation of the economic values associated
with the outputs from set input unit prices. Since each inequality can be replaced by equality and a
slack variable, this means each primal variable corresponds to a dual slack variable, and each dual
variable corresponds to a primal slack variable. This relation allows us to complementary slackness.
Covering-Packing Dualities:
Covering-Packing Dualities
Covering problems Packing problems A covering LP is a linear program of the form
Minimum Set Cover Maximum Set Packing
Minimum Vertex Cover Maximum Matching Minimize
Minimum Edge Cover Maximum Independent Set Subject to
Such that the matrix and the vectors and are non-negative.
Maximize
Subject to
Such that the matrix and the vectors and are non-negative.
Examples-
Finding a fractional coloring of a graph is another example of a covering LP. In this case,
there is one constraint for each vertex of the graph and one variable for each independent set of the
graph.
Complementary slackness:
It is possible to obtain an optimal solution to the dual when only an optimal solution to the
primal is known using the complementary slackness theorem. The theorem states:
Suppose that x = (x1, x2, xn) is primal feasible and that y = (y 1, y2, . . . , ym) is dual feasible. Let
(w1, w2, . . ., wm) denote the corresponding primal slack variables, and let (z 1, z2, . . . , z n) denote the
corresponding dual slack variables. Then x and y are optimal for their respective problems if and
only if xjzj = 0, for j = 1, 2, . . . , n, wiyi = 0, for i = 1, 2, . . . , m.
So if the ith slack variable of the primal is not zero, then the ith variable of the dual is equal
zero. Likewise, if the jth slack variable of the dual is not zero, then the jth variable of the primal is
equal to zero.
This necessary condition for optimality conveys a fairly simple economic principle. In standard
form (when maximizing), if there is slack in a constrained primal resource (i.e., there are
"leftovers"), then additional quantities of that resource must have no value. Likewise, if there is
slack in the dual (shadow) price non-negativity constraint requirement, i.e., the price is not zero, and
then there must scarce supplies (no "leftovers").
Theory:
Geometrically, the linear constraints define a convex polytope, which is called the feasible region. It
is not hard to see that every local optimum (a point x such that for every unit direction vector d with
positive objective value any every ε > 0 it holds that x + εd is infeasible) is also a global optimum.
This holds more generally for convex programs: see the KKT theorem.
There are two situations in which no optimal solution can be found. First, if the constraints
contradict each other (for instance, x ≥ 2 and x ≤ 1) then the feasible region is empty and there can
be no optimal solution, since there are no solutions at all. In this case, the LP is said to be infeasible.
Alternatively, the polyhedron can be unbounded in the direction of the objective function (for
example: maximize x1 + 3 x2 subject to x1 ≥ 0, x2 ≥ 0, x1 + x2 ≥ 10), in which case there is no optimal
solution since solutions with arbitrarily high values of the objective function can be constructed.
Barring these two conditions (which can often be ruled out when dealing with specific LPs), the
optimum is always attained at a vertex of the polyhedron (unless the polyhedron has no vertices, for
example in the feasible bounded linear program ; polyhedral with at least
one vertex are called pointed). However, the optimum is not necessarily unique: it is possible to
have a set of optimal solutions covering an edge or face of the polyhedron, or even the entire
polyhedron (this last situation would occur if the objective function were constant on the
polyhedron).
The vertices of the polyhedron are also called basic feasible solutions. The reason for this choice of
name is as follows. Let d denote the dimension, i.e. the number of variables. Then the following
theorem holds: for every vertex x* of the LP feasible region, there exists a set of d inequality
constraints from the LP such that, when we treat those d constraints as equalities, the unique
solution is x*. Thereby we can study these vertices by means of looking at certain subsets of the set
of all constraints (a discrete universe), rather than the continuous universe of LP solutions. This
principle underlies the simplex algorithm for solving linear programs.
The drawback of the penalty cost method is the possible computational error that could result
from assigning a very large value to the constant M. To overcome this difficulty, a new method
is considered, where the use of M is eliminated by solving the problem in two phases. They are-
Phase I:
Formulate the new problem by eliminating the original objective function by the sum of the
artificial variables for a minimization problem and the negative of the sum of the artificial
variables for a maximization problem. The resulting objective function is optimized by the
simplex method with the constraints of the original problem. If the problem has a feasible
solution, the optimal value of the new objective function is zero (which indicates that all
artificial variables are zero). Then we proceed to phase II. Otherwise, if the optimal value of the
new objective function is non zero, the problem has no solution and the method terminates.
Phase II :
Use the optimum solution of the phase I as the starting solution of the original problem. Then the
objective function is taken without the artificial variables and is solved by simplex method.
Examples:
Use the two phase method to Maximize z = 3x1 – x2
Phase I is complete, since there are no negative elements in the last row. The Optimal solution of the
new objective is Z* = 0.
Phase II:
Consider the original objective function, Maximize z = 3x1 – x2 + 0S1 + 0S2 + 0S3
Subject to x1 + x2/2 – S1/2=1 5/2 x2 + S1/2 + S2=1 x2 + S3 = 4x1, x2, S1, S2, S3 ≥ 0 with the initial
solution x1 = 1, S2 = 1, S3 = 4, the corresponding simplex table is
This model studies the minimization of the cost of transporting a commodity from a number
of sources to several destinations. The supply at each source and the demand at each destination are
known. The transportation problem involves m sources, each of which has available an i (i = 1, 2,
m) units of homogeneous product and n destinations, each of which requires bj (j = 1, 2…., n) units
of products. Here a
i and bj are positive integers. The cost cij of transporting one unit of the product from the ith source
to the
jth destination is given for each i and j. The objective is to develop an integral transportation
schedule that meets all demands from the inventory at a minimum total transportation cost. It is
assumed that the total supply and the total demand are equal i.e.
Condition (1) The condition (1) is guaranteed by creating either a fictitious destination with a
demand equal to the surplus if total demand is less than the total supply or a (dummy) source with a
supply equal to the shortage if total demand exceeds total supply. The cost of transportation from the
fictitious destination to all sources and from all destinations to the fictitious sources are assumed to
be zero so that total cost of transportation will remain the same.
The standard mathematical model for the transportation problem is as follows. Let xij be
number of units of the homogenous product to be transported from source i to the destination j. Then
objective is to-
Theorem:
A necessary and sufficient condition for the existence of a feasible solution to the
transportation problem (2) is that
The first approximation to (2) is always integral and therefore always a feasible solution.
Rather than determining a first approximation by a direct application of the simplex method
it is more efficient to work with the table given below called the transportation table. The
transportation algorithm is the simplex method specialized to the format of table it involves:
i. finding an integral basic feasible solution ii. testing the solution for optimality iii.
improving the solution, when it is not optimal iv. Repeating steps (ii) and (iii) until the
optimal solution is obtained.
The solution to T.P is obtained in two stages. In the first stage we find Basic feasible solution
by any one of the following methods a) North-west corner rule b) Matrix Minima Method or least
cost method c) Vogel’s approximation method. In the second stage we test the B.Fs for its optimality
either by MODI method or by stepping stone method.
It is always possible to assign an initial feasible solution to a T.P. in such a manner that
the rim requirements are satisfied. This can be achieved either by inspection or by following
some simple rules. We begin by imagining that the transportation table is blank i.e. initially
all xij = 0. The simplest procedures for initial allocation discussed in the following section.
Step1:
a. The first assignment is made in the cell occupying the upper left hand (North West)
corner of the transportation table.
b. The maximum feasible amount is allocated there, that is x11 = min (a1, b1) So that
either the capacity of origin O1 is used up or the requirement at destination D1 is
satisfied or both.
c. This value of x11 is entered in the upper left hand corner (Small Square) of cell (1, 1)
in the transportation table.
Step 2:
a. If b1 > a1 the capacity of origin O, is exhausted but the requirement at destination D1
is still not satisfied , so that at least one more other variable in the first column will
have to take on a positive value.
b. Move down vertically to the second row and make the second allocation of
magnitude x21 = min (a2, b1 – x21) in the cell (2, 1). This either exhausts the
capacity of origin O2 or satisfies the remaining demand at destination D1.
d. This either exhausts the remaining capacity of origin O1 or satisfies the demand at
destination D2 .If b1 = a1, the origin capacity of O1 is completely exhausted as well
as the requirement at destination is completely satisfied.
e. There is a tie for second allocation; an arbitrary tie breaking choice is made. Make
the second allocation of magnitude x12 = min (a1 – a1, b2) = 0 in the cell (1, 2) or
x21 = min (a2, b1 – b2) = 0 in the cell (2, 1).
Step 3:
a. Start from the new North West corner of the transportation table satisfying
destination requirements and exhausting the origin capacities one at a time.
b. Move down towards the lower right corner of the transportation table until all the rim
requirements are satisfied.
Answer:
The Branch And Bound Technique:
Sometimes a few or all the variables of an IPP are constrained by their upper or lower bounds or by both.
The most general technique for the solution of such constrained optimization problems is the branch and
bound technique. The technique is applicable to both all IPP as well as mixed I.P.P. the technique for a
maximization problem is discussed below: Let the I.P.P be
Or the linear constraint xj ≤ I ………………...(7)To explain how this partitioning helps, let
us assume that there were no integer restrictions (3), and suppose that this then yields an
optimal solution to L.P.P. – (1), (2), (4) and (5). Indicating
x1 = 1.66 (for example). Then we formulate and solve two L.P.P’s each containing (1), (2)
and (4). But (5) for
j=1
Is modified to be
2 ≤ x1 ≤ U1
In one problem and
L1 ≤ x1 ≤ 1
In the other. Further each of these problems process an optimal solution satisfying integer
constraints (3) Then the solution having the larger value for z is clearly optimum for the
given I.P.P. However, it usually happens that one (or both) of these problems has no optimal
solution satisfying (3), and thus some more computations are necessary. We now discuss step
wise the algorithm that specifies how to apply the partitioning (6) and (7) in a systematic
manner to finally arrive at an optimum solution.
We start with an initial lower bound for z, say) 0(Zat the first iteration which is less than or
equal to the optimal value z*, this lower bound may be taken as the starting Lj for some xj.
In addition to the lower bound) 0(Z, we also have a list of L.P.P’s (to be called master list)
differing only in the bounds (5). To start with (the 0th iteration) the master list contains a
single L.P.P. consisting of (1), (2), (4) and (5). We now discuss below, the step by step
procedure that specifies how the partitioning (6) and (7) can be applied systematically to
eventually get an optimum integer valued solution.
Branch and Bound Algorithm
At the tth iteration (t = 0, 1, 2 …)