Springer Optimization and Its Applications

Volume 153

Series Editor
Panos M. Pardalos , University of Florida, Gainesville, FL, USA

Honorary Editor
Ding-Zhu Du, University of Texas at Dallas, Richardson, TX, USA

Advisory Editors
J. Birge, University of Chicago, Chicago, IL, USA
S. Butenko, Texas A&M University, College Station, TX, USA
F. Giannessi, University of Pisa, Pisa, Italy
S. Rebennack, Karlsruhe Institute of Technology, Karlsruhe, Baden-Württemberg,
Germany
T. Terlaky, Lehigh University, Bethlehem, PA, USA
Y. Ye, Stanford University, Stanford, CA, USA

Aims and Scope

Optimization has continued to expand in all directions at an astonishing rate. New
algorithmic and theoretical techniques are continually developing and the diffusion
into other disciplines is proceeding at a rapid pace, with a spot light on machine
learning, artificial intelligence, and quantum computing. Our knowledge of all
aspects of the field has grown even more profound. At the same time, one of the
most striking trends in optimization is the constantly increasing emphasis on the
interdisciplinary nature of the field. Optimization has been a basic tool in areas not
limited to applied mathematics, engineering, medicine, economics, computer
science, operations research, and other sciences.
The series Springer Optimization and Its Applications (SOIA) aims to publish
state-of-the-art expository works (monographs, contributed volumes, textbooks,
handbooks) that focus on theory, methods, and applications of optimization. Topics
covered include, but are not limited to, non-linear optimization, combinatorial
optimization, continuous optimization, stochastic optimization, Bayesian optimization,
optimal control, discrete optimization, multi-objective optimization, and more. New to
the series portfolio include Works at the intersection of optimization and machine
learning, artificial intelligence, and quantum computing.
Volumes from this series are indexed by Web of Science, zbMATH, Mathematical
Reviews, and SCOPUS.
More information about this series at http://www.springer.com/series/7393
Asoke Kumar Bhunia Laxminarayan Sahoo
• •

Ali Akbar Shaikh

Advanced Optimization
and Operations Research

123
Asoke Kumar Bhunia Laxminarayan Sahoo
Department of Mathematics Department of Mathematics
The University of Burdwan Raniganj Girls’ College
Burdwan, West Bengal, India Raniganj, West Bengal, India

Ali Akbar Shaikh

Department of Mathematics
The University of Burdwan
Burdwan, West Bengal, India

ISSN 1931-6828 ISSN 1931-6836 (electronic)

Springer Optimization and Its Applications
ISBN 978-981-32-9966-5 ISBN 978-981-32-9967-2 (eBook)
https://doi.org/10.1007/978-981-32-9967-2

Mathematics Subject Classification (2010): 90Cxx, 90Bxx, 91Axx, 90B05

© Springer Nature Singapore Pte Ltd. 2019

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Dedicated to
our respected teachers
Prof. M. Maiti and Prof. T. K. Pal
Vidyasagar University
West Bengal, India
and
Prof. M. Basu
University of Kalyani
West Bengal, India
Preface

Due to the gradual complexity of day-to-day decision-making problems, engineers,

system analysts and managers face challenges in offering the best solutions for these
problems. Most of these real-life decision-making problems can be modelled as
non-linear constrained or unconstrained optimization problems. Optimization is the
art of finding the best alternative(s) among a given set of options. The process of
finding the maximum or minimum possible value which a given function can attain
in its domain of definition is known as optimization. Operations research, on the
other hand, a relatively new discipline, is an interdisciplinary subject. Mainly
concerned with different techniques, it provides new insights and capabilities for
determining better solutions of decision-making problems with higher accuracy,
competence and confidence.
This book, Advanced Optimization and Operations Research, is intended to
introduce the fundamental and advanced concepts of optimization and operations
research. It has been written in simple and lucid language, according to the syllabi
of the all major universities which include optimization and operations research in
their graduate and post-graduate courses in areas of science, arts, commerce,
engineering and management. Maximum care has been taken in preparing the
chapters to include as many different topics as possible.
There are several textbooks available on the market on optimization and oper-
ations research as separate topics. Our primary motivation to write this book was
the absence of one book covering these two areas together. Existing books have
been written in a conventional way, whereas in this book, all 18 chapters are written
in details with equal emphasis. Each chapter states its objective in the beginning
and includes a sufficient number of solved examples and exercises which will be of
much help for aspirants preparing for competitive examinations like NET, SET,
GATE, CAT and MAT.
Chapter 1 highlights the historical perspective, various definitions, characteristic
scope and purpose of operations research. Chapter 2 discusses convex and concave
functions and their properties. Chapter 3 introduces the simplex method. In Chaps.
4–6, advanced linear programming techniques, like revised simplex method, dual
simplex method and bounded variable technique, are discussed. Chapter 7

vii
viii Preface

introduces the post-optimality analysis of linear programming problems (LPPs),

and Chap. 8 deals with techniques for solving LPPs with integer values. Chapters 9
through 11 deal with the basics of unconstrained and constrained non-linear opti-
mization problems with equality and inequality constraints. In Chap. 12, quadratic
programming problems and their solution by Wolfe’s modified simplex method and
Beale’s method are explained in details. Chapter 13 talks about game theory, and
Chap. 14 discusses project management, which includes the topics of critical path
analysis, PERT analysis and time-cost trade-off. Chapter 15 presents the concepts of
queueing theory, including Poisson and non-Poisson queues. Chapter 16 presents
ideas on flow and potential in networks, including the maximum flow problem and
its solution procedure. Chapter 17 introduces deterministic, probabilistic and fuzzy
inventory control models. Chapter 18 discusses the preliminaries of several topics,
like matrices, determinant, vectors, probability and Markov process, which will be
essential for studying the different chapters of this book.
Salient features of this book are as follows:
• It is written in a self-instructional mode so that the readers can easily understand
the subject matter without any help from other sources.
• Each topic has been discussed in detail with numerous worked-out examples to
help students properly understand the underlying theories.
• Advanced-level (research-level) topics have also been included.
• A set of exercises has been included at the end of each chapter.
• It is suitable to help students to prepare for different competitive examinations.
We would like to express our sincere gratitude to all the faculty members of the
Department of Mathematics at the University of Burdwan, who have contributed
greatly to the success of this project. We also express our heartfelt thanks to our
research scholars—Avijit Duary, Subash Chandra Das, Tanmoy Banerjee, Rajan
Mondal, Md. Akhtar, Md. Sadikur Rahaman and Nirmal Kumar—for their constant
help in preparing the manuscript. Finally, we wish to thank Shamim Ahmad, Tooba
Shafique and the other publishing teams of Springer Nature for producing the book
in its present form.

West Bengal, India Asoke Kumar Bhunia

Laxminarayan Sahoo
Ali Akbar Shaikh
Contents

1 Introduction to Operations Research . . . . . . . . . . . . . . . . . . . . . . . 1

1.1 Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
1.2 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
1.3 Definitions of Operations Research . . . . . . . . . . . . . . . . . . . . . 2
1.4 Applications of OR . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
1.5 Main Phases of OR . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
1.6 Scope of OR . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
1.7 Modelling in OR . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
1.8 Development of OR in India . . . . . . . . . . . . . . . . . . . . . . . . . 10
1.9 Role of Computers in OR . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
2 Convex and Concave Functions . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
2.1 Objective . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
2.2 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
2.3 Convex and Concave Functions . . . . . . . . . . . . . . . . . . . . . . . 13
2.4 Geometrical Interpretation . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
2.5 Properties of Convex and Concave Functions . . . . . . . . . . . . . 18
2.6 Differentiable Convex and Concave Functions . . . . . . . . . . . . 20
2.7 Differentiable Strictly Convex and Concave Functions . . . . . . 24
3 Simplex Method . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
3.1 Objective . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
3.2 General Linear Programming Problem . . . . . . . . . . . . . . . . . . 29
3.3 Slack and Surplus Variables . . . . . . . . . . . . . . . . . . . . . . . . . 30
3.4 Canonical and Standard Forms of LPP . . . . . . . . . . . . . . . . . . 31
3.5 Fundamental Theorem of LPP . . . . . . . . . . . . . . . . . . . . . . . . 33
3.6 Replacement of a Basis Vector . . . . . . . . . . . . . . . . . . . . . . . 37
3.7 Improved Basic Feasible Solution . . . . . . . . . . . . . . . . . . . . . 39
3.8 Optimality Condition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
3.9 Unbounded Solution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42

ix
x Contents

3.10 Simplex Algorithm . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45

3.11 Simplex Table . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46
3.12 Use of Artificial Variables . . . . . . . . . . . . . . . . . . . . . . . . . . . 53
3.12.1 Big M Method . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54
3.12.2 Solution of Simultaneous Linear Equations
by Simplex Method . . . . . . . . . . . . . . . . . . . . . . . . 55
3.12.3 Inversion of a Matrix by Simplex Method . . . . . . . . 56
3.12.4 Two-Phase Method . . . . . . . . . . . . . . . . . . . . . . . . . 66
3.13 Exercises . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76
4 Revised Simplex Method . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79
4.1 Objective . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79
4.2 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79
4.3 Standard Forms of Revised Simplex Method . . . . . . . . . . . . . 80
4.4 Standard Form I of Revised Simplex Method . . . . . . . . . . . . . 80
4.5 Computational Procedure of Standard Form I of Revised
Simplex Method . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83
4.6 Standard Form II of Revised Simplex Method . . . . . . . . . . . . 89
4.6.1 Charne’s Big M Revised Simplex Method . . . . . . . . 90
4.6.2 Two-Phase Revised Simplex Method . . . . . . . . . . . . 95
4.7 Advantages of Revised Simplex Method . . . . . . . . . . . . . . . . 106
4.8 Difference Between Revised Simplex Method and Simplex
Method . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 107
4.9 Exercises . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 107
5 Dual Simplex Method . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 109
5.1 Objective . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 109
5.2 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 109
5.3 Dual Simplex Algorithm . . . . . . . . . . . . . . . . . . . . . . . . . . . . 114
5.4 Difference Between Simplex Method and Dual Simplex
Method . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 120
5.5 Modified Dual Simplex Method . . . . . . . . . . . . . . . . . . . . . . . 120
5.6 Exercises . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 124
6 Bounded Variable Technique . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 127
6.1 Objective . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 127
6.2 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 127
6.3 The Computational Procedure . . . . . . . . . . . . . . . . . . . . . . . . 128
6.4 Exercises . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 135
7 Post-optimality Analysis in LPPs . . . . . . . . . . . . . . . . . . . . . . . . . . 137
7.1 Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 137
7.2 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 137
7.3 Discrete Changes in the Profit Vector . . . . . . . . . . . . . . . . . . . 138
7.4 Discrete Changes in the Requirement Vector . . . . . . . . . . . . . 145
Contents xi

7.5 Discrete Changes in the Coefficient Matrix . . . . . . . . . . . . . . . 151

7.6 Addition of a Variable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 156
7.7 Deletion of a Variable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 158
7.8 Addition of a New Constraint . . . . . . . . . . . . . . . . . . . . . . . . 159
7.9 Exercises . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 166
8 Integer Programming . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 171
8.1 Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 171
8.2 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 171
8.3 Gomory’s All-Integer Cutting-Plane Method . . . . . . . . . . . . . . 172
8.4 Construction of Gomory’s Constraint . . . . . . . . . . . . . . . . . . . 173
8.5 Gomory’s Mixed-Integer Cutting-Plane Method . . . . . . . . . . . 182
8.6 Construction of Additional Constraint for Mixed-Integer
Programming Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 182
8.7 Branch and Bound Method . . . . . . . . . . . . . . . . . . . . . . . . . . 187
8.8 Exercises . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 193
9 Basics of Unconstrained Optimization . . . . . . . . . . . . . . . . . . . . . . . 197
9.1 Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 197
9.2 Optimization of Functions of a Single Variable . . . . . . . . . . . . 197
9.3 Optimization of Functions of Several Variables . . . . . . . . . . . . 201
9.4 Exercises . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 209
10 Constrained Optimization with Equality Constraints . . . . . . . . . . . 211
10.1 Objective . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 211
10.2 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 211
10.3 Direct Substitution Method . . . . . . . . . . . . . . . . . . . . . . . . . . 212
10.4 Method of Constrained Variation . . . . . . . . . . . . . . . . . . . . . . 215
10.4.1 Geometrical Interpretation of Admissible
Variation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 217
10.4.2 Necessary Conditions for Extremum of a General
Problem for Constrained Variation Method . . . . . . . 217
10.4.3 Sufficient Conditions for a General Problem
in Constrained Variation Method . . . . . . . . . . . . . . . 220
10.5 Lagrange Multiplier Method . . . . . . . . . . . . . . . . . . . . . . . . . 225
10.5.1 Necessary Conditions for Optimality . . . . . . . . . . . . 226
10.5.2 Sufficient Conditions for Optimality . . . . . . . . . . . . . 228
10.5.3 Alternative Approach for Testing Optimality . . . . . . 230
10.6 Interpretation of Lagrange Multipliers . . . . . . . . . . . . . . . . . . 241
10.7 Applications of Lagrange Multiplier Method . . . . . . . . . . . . . . 245
10.8 Exercises . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 246
11 Constrained Optimization with Inequality Constraints . . . . . . . . . . 249
11.1 Objective . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 249
11.2 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 249
xii Contents

11.3 Feasible Direction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 251

11.4 Kuhn-Tucker Conditions . . . . . . . . . . . . . . . . . . . . . . . . . . . . 253
11.4.1 Kuhn-Tucker Necessary Conditions . . . . . . . . . . . . . 253
11.4.2 Kuhn-Tucker Sufficient Conditions . . . . . . . . . . . . . 255
11.5 Exercises . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 267
12 Quadratic Programming . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 269
12.1 Objective . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 269
12.2 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 269
12.3 Solution Procedure of QPP . . . . . . . . . . . . . . . . . . . . . . . . . . 271
12.4 Wolfe’s Modified Simplex Method . . . . . . . . . . . . . . . . . . . . 275
12.5 Advantage and Disadvantage of Wolfe’s Method . . . . . . . . . . 276
12.6 Beale’s Method . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 292
12.7 Beale’s Algorithm for QPPs . . . . . . . . . . . . . . . . . . . . . . . . . 293
12.8 Exercises . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 301
13 Game Theory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 303
13.1 Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 303
13.2 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 303
13.3 Cooperative and Non-cooperative Games . . . . . . . . . . . . . . . . 304
13.4 Antagonistic Game . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 307
13.5 Matrix Games or Rectangular Games . . . . . . . . . . . . . . . . . . . 308
13.6 Dominance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 324
13.7 Graphical Solution of 2  n or m  2 Games . . . . . . . . . . . . 330
13.8 Matrix Games and Linear Programming Problems (LPPs) . . . . 336
13.9 Infinite Antagonistic Game . . . . . . . . . . . . . . . . . . . . . . . . . . 341
13.10 Continuous Game . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 347
13.11 Separable Game . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 348
13.12 Exercises . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 364
14 Project Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 367
14.1 Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 367
14.2 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 367
14.3 Phases of Project Management . . . . . . . . . . . . . . . . . . . . . . . . 368
14.4 Advantages of Network Analysis . . . . . . . . . . . . . . . . . . . . . . 369
14.5 Basic Components . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 369
14.6 Common Errors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 372
14.7 Rules for Network Construction . . . . . . . . . . . . . . . . . . . . . . . 373
14.8 Numbering of Events . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 374
14.9 Critical Path Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 375
14.10 PERT Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 380
14.11 Difference Between PERT and CPM . . . . . . . . . . . . . . . . . . . 386
14.12 Project Time-Cost Trade-Off . . . . . . . . . . . . . . . . . . . . . . . . . 387
14.13 Exercises . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 399
Contents xiii

15 Queueing Theory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 403

15.1 Objective . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 403
15.2 Basics of Queueing Theory . . . . . . . . . . . . . . . . . . . . . . . . . . 403
15.2.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 403
15.2.2 Reason Behind the Queue . . . . . . . . . . . . . . . . . . . . 404
15.2.3 Characteristics of Queueing Systems . . . . . . . . . . . . 405
15.2.4 Important Definitions . . . . . . . . . . . . . . . . . . . . . . . 409
15.2.5 The State of the System . . . . . . . . . . . . . . . . . . . . . 409
15.2.6 Probability Distribution in a Queueing System . . . . . 410
15.2.7 Classification of Queueing Models . . . . . . . . . . . . . . 415
15.3 Poisson Queueing Models . . . . . . . . . . . . . . . . . . . . . . . . . . . 416
15.3.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 416
15.3.2 Model ðM=M=1Þ:ð1=FCFS=1Þ . . . . . . . . . . . . . . . 417
15.3.3 Model ðM=M=1Þ:ðN=FCFS=1Þ . . . . . . . . . . . . . . . 428
15.3.4 Model ðM=M=CÞ:ð1=FCFS=1Þ . . . . . . . . . . . . . . . 434
15.3.5 Model ðM=M=C Þ:ðN=FCFS=1Þ . . . . . . . . . . . . . . . 442
15.3.6 Model ðM=M=RÞ:ðK=GDÞK [ R . . . . . . . . . . . . . . . 448
15.3.7 Power Supply Model . . . . . . . . . . . . . . . . . . . . . . . 456
15.4 Non-poisson Queueing Models . . . . . . . . . . . . . . . . . . . . . . . 459
15.4.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 459
15.4.2 Model ðM=Ek =1Þ:ð1=FCFS=1Þ . . . . . . . . . . . . . . . 460
15.4.3 Model ðM=G=1Þ:ð1=GDÞ . . . . . . . . . . . . . . . . . . . . 468
15.5 Mixed Queueing Model and Cost . . . . . . . . . . . . . . . . . . . . . . 473
15.5.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 473
15.5.2 Mixed Queueing Model . . . . . . . . . . . . . . . . . . . . . 473
15.6 Cost Models in Queueing System . . . . . . . . . . . . . . . . . . . . . 477
15.7 Exercises . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 479
16 Flow in Networks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 487
16.1 Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 487
16.2 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 487
16.3 Graphs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 488
16.4 Minimum Path Problem . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 491
16.5 Problem of Potential Difference . . . . . . . . . . . . . . . . . . . . . . . 494
16.6 Network Flow Problem . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 495
16.7 Generalized Problem of Maximum Flow . . . . . . . . . . . . . . . . 499
16.8 Formulation of an LPP of a Flow Network . . . . . . . . . . . . . . . 500
16.9 Exercises . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 517
17 Inventory Control Theory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 521
17.1 Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 521
17.2 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 521
17.2.1 Types of Inventories . . . . . . . . . . . . . . . . . . . . . . . . 523
17.3 Basic Terminologies in Inventory . . . . . . . . . . . . . . . . . . . . . . 524
xiv Contents

17.4 Classification of Inventory Models . . . . . . . . . . . . . . . . . . . . . 526

17.5 Purchasing Inventory Model with No Shortage (Model 1) . . . . 527
17.6 Manufacturing Model with No Shortage (Model 2) . . . . . . . . . 530
17.7 Purchasing Inventory Model with Shortage (Model 3) . . . . . . . 533
17.8 Manufacturing Model with Shortage . . . . . . . . . . . . . . . . . . . 538
17.9 Multi-item Inventory Model . . . . . . . . . . . . . . . . . . . . . . . . . . 543
17.9.1 Limitation on Inventories . . . . . . . . . . . . . . . . . . . . 544
17.9.2 Limitation of Floor Space
(or Warehouse Capacity) . . . . . . . . . . . . . . . . . . . . . 546
17.9.3 Limitation on Investment . . . . . . . . . . . . . . . . . . . . 547
17.10 Inventory Models with Price Breaks . . . . . . . . . . . . . . . . . . . . 552
17.10.1 Purchasing Inventory Model with Single Price
Break . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 553
17.10.2 Purchase Inventory Model with Two Price
Breaks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 555
17.11 Probabilistic Inventory Model . . . . . . . . . . . . . . . . . . . . . . . . 557
17.11.1 Single Period Inventory Model with Continuous
Demand (No Replenishment Cost Model) . . . . . . . . 557
17.11.2 Single Period Inventory Model with Instantaneous
Demand (no Replenishment Cost Model) . . . . . . . . . 564
17.12 Fuzzy Inventory Model . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 570
17.13 Exercises . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 576
18 Mathematical Preliminaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 581
18.1 Objective . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 581
18.2 Matrices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 581
18.3 Determinant . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 587
18.4 Rank of a Matrix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 589
18.5 Solution of a System of Linear Equations . . . . . . . . . . . . . . . . 590
18.6 Vectors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 591
18.7 Probability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 596
18.8 Markov Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 610

Bibliography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 615
Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 619
About the Authors

Asoke Kumar Bhunia is Professor at the Department of Mathematics, The

University of Burdwan, West Bengal, India. He obtained his Ph.D. degree in
Mathematics and M.Sc. in Applied Mathematics from Vidyasagar University, India.
His research interests include computational optimization, soft computing, interval
mathematics and interval ranking. He has published more than 125 research papers
in various national and international journals of repute. He is a reviewer of several
Science Citation Index (SCI) journals. He has guided 13 Ph.D. and two M.Phil.
students. An author of four research monographs and six book chapters, he is an
Indian National Science Academy (INSA) Visiting Fellow and former Associate
Editor of the Springer journal OPSEARCH.

Laxminarayan Sahoo is Assistant Professor at the Department of Mathematics,

Raniganj Girls’ College, West Bengal, India. He obtained his Ph.D. in Mathematics
from the University of Burdwan and his M.Sc. in Applied Mathematics from
Vidyasagar University, India. His research interests include reliability optimization,
computational optimization, artificial intelligence, soft computing, interval mathe-
matics, interval ranking and fuzzy mathematics. He has published several research
papers in various national and international journals of repute. He has received a
Ministry of Human Resource Development (MHRD) fellowship from the
Government of India and the Professor M.N. Gopalan Award for the best Ph.D.
thesis in operations research from the Operational Research Society of India.

Ali Akbar Shaikh is Assistant Professor at the Department of Mathematics in The

University of Burdwan, West Bengal, India. Earlier, he was a postdoctoral fellow at
the School of Engineering and Sciences, Tecnológico de Monterrey, Mexico. He
received the award SNI of level 1 (out of 0–3) presented by the National System of
Researchers of Mexico from the Government of Mexico in the year 2017. He earned
his Ph.D. and M.Phil. in Mathematics from the University of Burdwan, and his

xv
xvi About the Authors

M.Sc. in Applied Mathematics from the University of Kalyani, India. Dr. Shaikh has
published more than 37 research papers in different international journals of repute.
His research interests include inventory control, interval optimization and particle
swarm optimization.