Centre for Distance and Online Education

ASSIGNMENT SET - 1
[Link].1. What is Operations Research? Write in brief the advantages and limitation of
Operations Research.
Ans. Operations Research : It is a process of using mathematical and scientific method to
:

analysis The operation and find out the problems and help in solving the problem and
decision making. It also helps in increasing the efficiency of of operations. It provides
systematic model to choose the best alternative among many. The main objective of operation
research is to minimise cost , maximise profit, increase efficiency, and productivity by
solving the solution. It also helps in risk mitigation. Operation research is simply a proper
research of the operation by using statistics, scientific, mathematics, Computer , and business
app applications and principles in order to find out the optimum operation and have the
organisation in reducing the cost and the burden of the manager.

Advantages of operation research.

 Improved productivity: It helps the business and the manager in increasing the
productivity. It provide various tools which reduce the burden of the manager and
provide solution video 100% accuracy.
 Risk analysis: It also find out the possible risk and uncertainties. It does not Help only
in find out the risk but also provide the method and the way to mitigate and reducing
the risk.
 Problem solving: The main objective of operation research is to find out The problems
in operations and also provide optimum solution to handle with these problems.
 Minimise cost: It makes the work affective and on time and also ensures the optimum
utilisation of resources which helps introducing it's cost. It helps in minimising the
cost as well as the time in completion of operation.
 Decision making: It is the best tool which help in the decision making with the
manager. It analysis the situation and provide the best decision it also provide the best
decision in choosing the best alternative among many.

Limitations of operation research.

 Limited scope: Fit only focus on quantitative aspect and ignore the qualitative aspect.
It does not focus on consumer satisfaction, employees morale, and motivation etc. Its
copies limited to quantitative nature only.
 Complexity of model: It has complexity of model. It is very difficult to solve the
Complex problem with 100% accuracy. Sometime it can provide inaccurate solution.
 Specialised knowledge required: It is not easy for everyone to use it. Special
knowledge and information required for conducting operation research. It implement
mathematical formula and computer programming languages which required perfect
knowledge and experience.
 Resistance to change: It based on statistic model which is difficult to change
according to the environment. It also resists change due to lack of understanding or
fear of changes.

[Link].2 solve the given linear programming problem:

Solution:
-Step Solution Using Simplex Method

Problem:
Maximise Z = 3x1 + 2x2 + x3
Subject to constraints:

-3x1 + 2x2 + 2x3 = 8

-3x1 + 4x2 + x3 = 7
x1, xl2, x3 \> 0

Step 1: Convert the Problem into Standard Form

Introduce slack variables S1 and S2 to convert the equality constraints into standard form:

-3x1 + 2x2 + 2x3 + S1 = 8

-3x1 + 4x2 + x3 + S2 = 7

Objective function becomes:

Z = 3x1 + 2x2 + x3 + 0S1 + 0S2

Step 2 : Initial Simplex Table

Basic X 1 X 2 X 3 S 1 S 2 RHS
variables
S_1 -3 2 2 1 0 8
S 2 -3 4 1 0 1 7
Z -3 -2 -1 0 0 0

Step 3 : First Iteration

 Choose the entering variable
Look at Z-C j :
The most positive value is x 1 = -3.
Thus, x 1 is the entering variable.

 Choose the leaving variable

Perform the ratio test
(RHS/ Pivot coefficient) :
For S1: 8/|-3|=2.67, For S2: 7/|-3| =2.33
The minimum ratio is for S2, so S2 leaves the basis.

 Pivot operation
Make the pivot element(intersection of entering and leaving variables) Is equal to 1.
The pivot element here is-3 .

 Pivot and Update the table

Perform raw operations to make the pivot element 1 and adjust the table:
Row Operations:
 R2 = R2 / -3
  R1 = R1 – (-3)R2
 Z = Z –(-3)R2
 Update Table after Pivoting

Basic X1 X2 X3 S1 S2 RHS
variables
S1 0 0 1 1 -1 1
X1 1 -4/3 -1/3 0 -1/3 -7/3
Z 0 -4 2 0 -1 7

 Optimally Check
The most negative value in the Z row is -4 under X2.
So, X2 will enter the basis next.

 Identify Leaving variables (Minimum Ratio Test)

Divide RHS by the corresponding X2 values:
1 / 0 = not possible, -7/3/-4/3 =7/4=1.75
So, X1 will leave the basis.
 Pivot Again and Update the Table
Pivot element: -4/3 located in row 2, column X2.
 Perform Row Operations
New Row 2 ( Pivot row normalization):
R2 = R2 / -4/3
Update Row 2:
R2 = [1,1,1/4,0,1/4,7/4]
New Row 1 :
R1= R1 -0 X R2 = No change.
New Row 3 (Z – row):
Z= Z – (-4) X R2
Z = [0,0,-1,0,0,14]

 Updated Table after Pivoting

Basic X1 X2 X3 S1 S2 RHS
variables
S1 0 0 1 1 -1 1
X2 1 1 ¼ 0 -1/4 7/4
Z 0 0 -1 0 0 14

 Optimally Check
All coefficients in the Z row are non negative except for -1 under X3.
So, X3 will enter the basis next.

 Minimum Ratio Test ( Leaving Variables)

Divide RHS by corresponding X3 values:
1/1 =1, 7/4 / ¼ = 7
Row 1 (S1) has the smallest ratio, so S1 leaves the basis.

 Pivot and Update Again

 Pivot Element: 1 ( Row1, Column X3)
New Row 1 :
R1 is already normalised.
New Row 2:
R2 = R2 -1/4 X R1
New Z Row :
Z = Z –(-1) X R1

 Final Table after Pivoting

Basic X1 X2 X3 S1 S2 RHS
variables
X3 0 0 1 1 -1 1
X2 1 1 0 -1/4 ¼ 6/4
Z 0 0 0 1 -1 15

 Optimal Solution
The objective row has all non negative values, indicating an optimal solution
is reached.
The solution is :
X3 = 1, X2 = 6/4 =1.5, X1 = 0
 Optimal values of Z:
 Z = 15.

[Link].3 Find the initial basic feasible solution using VAM and optimal solution
using MODI for the given transportation problem..

Solution:
Step 1 : Problem Setup
Cost Matrix with supply and demand

D1 D2 D3 D4 Supply
S1 21 16 25 13 11
S2 17 18 14 23 13
S3 32 27 18 41 19
Demand 6 10 12 15 Total = 43

 Total Supply = 11 + 13 + 19 = 43.

 Total Demand = 6 + 10 + 12+ 15 = 43.
 Balanced.

 Step 2 : Vogel’s Approximation Method ( VAM)

 Step 2.1 Calculate Penalties

 Compute the difference between the smallest and second smallest costs in each row
and column.

D1 D2 D3 D4 Penalty
S1 21 16 25 13 3
S2 17 18 14 23 3
S3 32 27 18 41 9
Demand 6 10 12 15

Column Penalties:
 D1 : 17,21 — Penalty = 4
 D2 : 16,18 — Penalty = 2
 D3 : 14,18 — Penalty = 4
 D4 : 13,23 — Penalty = 10

Step 2.2 Select the Highest Penalty

Highest penalty = 10 (column D4)
Assign as much as possible to the cell with the lowest cost in D4, i.e, S1 — D4(Cost =
13).

Allocation:
S1 to D4: Assign 11 units (exhausting S1’s supply).
Remaining Demand for D4 =
15 – 11 = 4.

Step 2.3 Update Table ( after 1st allocation)

D1 D2 D3 D4 Supply
S1 11 0
S2 17 18 14 23 13
S3 32 27 18 41 19
Demand 6 10 12 4

Step 2.4 Recalculate Penalties

D1 D2 D3 D4 Penalty
S2 17 18 14 23 3
S3 32 27 18 41 9

 Column Penalties:
 D1 : 17, 32– 15
 D2: 18,27 — 9
 D3: 14,18 —4

Step 2.5 Select Highest Penalty

Highest Penalty is 9 (Row S3).
Assign to the lowest cost in S3: S3 — D3(18).
Allocation:
S3 to D3: Assign 12 units( exhausting D3’s demand).
Remaining Supply for S3: 19 – 12 = 7.
  Step 2.6 Updated Table (after 2nd allocation)
D1 D2 D3 D4 Supply
S1 11 0
S2 17 18 14 23 13
S3 32 27 12 41 7
Demand 6 10 0 4

 Step 2.7 Recalculate Penalties

D1 D2 D3 D4 Penalty
S2 17 18 23 1
S3 32 27 41 5

Highest penalty= 5(S3).

Allocate to S3 — D2(27).

Allocation:
S3 to D2: Assign 7 units (exhausting S3’s supply).
Remaining Demand for D2: 10 – 7 = 3.

 Step 2.8 Updated Table (after 3rd allocation)

D1 D2 D3 D4 Supply
S1 11 0
S2 17 18 23 13
S3 32 7 12 41 0
Demand 6 3 0 4

 Step 2.9 Final Allocation (Remaining Cells)

Assign the rest automatically:
 S2–D1: 6 units
 S2 —D2 : 3 units
 S2 — D4 : 4 units

 Step 3: Final IBFS Table

D1 D2 D3 D4 Supply
S1 11 0
S2 6 3 4 0
S3 7 12 0
Demand 0 0 0 0 Total = 43

 Step 4 : Cost Calculation for IBFS

= 11 X 13 + 6 X 17 + 3 X 18 + 4 X 23 + 7 X 2
= 143 + 102 + 54 + 92 + 189 + 216 = 796
Initial Basic Feasible Solution Cost : 789 units

 Step 5 : MODI Method for Optimality Check

Reproduce the final IBFS from VAM

D1 D2 D3 D4 Supply
S1 11 0
S2 6 3 4 0
S3 7 12 0
Demand 0 0 0 0 Total = 43

Cost Table
D1 D2 D3 D4
S1 21 16 25 13
S2 17 18 14 23
S3 32 27 18 41

Allocations:
 S1 to D4 : 11 units
 S2 to D1 : 6 units
 S2 to D2 : 3 units
 S2 to D4 : 4 units
 S3 to D4 : 4 units
 S3 to D3 : 12 units

Step 5.1: Check Number of Allocations

The number of allocations should be m + n —1 for a basic feasible solution
Where:
 m = 3 ( number of rows)
 n = 4 ( number of columns)
 m + n —1 = 3 + 4 —1 = 6.
There are exactly 6 occupied cells in the IBFS , so it is non degenerate.

 Step 5.3 : Solve for u and v ( Potential Values)

Use the equation:
Cij = ui + vj
Assign u1 = 0 as a starting point and solve for other u’s and v’s.

 From S1 to D4 :
C14 = 13 = u1 + v4 —v4 = 13
 From S2 to D1:
C21 = 17 = u2 + v1
 From S2 to D2
C22 = 18 = u2 + v2
 From S2 to D4 :
C24 = 23 = u2 + v4= 23
,u2 + 13 =23 ,u2 = 10
 From S3 to D2:
C32 = 27 = u3 + v2
 From S3 to D3:
C33 = 18 = u3 + v3

 Solve values:
 u1 = 0
 v4 = 13
 u2 = 10
 u3= 19
  v1 = 7
 v2 = 8
 v3 = -1

 Step 5.4 : Calculate Opportunity Costs dij

Formula:
,dij = Cij —( ui + vj)

For unoccupied Cells:

 S1 to D1 : d11 = 21 – (0 + 7) = 14
 S1 to D2: d12 = 16 – (0 + 8) = 8
 S1 to D3 : d13 = 25 – (0 – 1) = 26
 S2 to D3 : d23 = 14 –(10 – 1) = 5
 S3 to D1 : d31 = 32 –( 19 + 7 ) = 6
 S3 to D4 : d34 = 41 – (19 + 13) = 9

 Step 5.5 Optimality Check

If all dij > and = 0, the solution is optimal.
Since all dij are positive, the current solution is optimal.

 Final Optimal Solution Cost Calculation:

Z = (11 X 13) + (6 X 17) + (3X 18) + ( 4 X 23) +
= 143 + 102 + 54 + 92 + 189 + 216 = 796
 Optimal Transportation Cost = 796.

ASSIGNMENT SET – 2

Q. No.4
Ans. Use Hungarian Method
 Step 1: Understanding the Problem and setup
 Zone Sales Potential:
Zone Annual Sales(Rs)
A 126000
B 105000
C 84000
D 63000

Salesman Efficiency Ratings:

 Salesman P :7
 Salesman Q:5
 Salesman R :5
 Salesman S : 4

 Step 2: Calculate Adjusted Sales for Each Salesman

The sales for each zone must be adjusted according to the salesmen’s efficiency. The formula
is :
Adjusted Sales = Zone Sales X Efficiency Rating

Salesman Zone Zone B Zone C Zone D(63000)

A(126000) (105000) (84000)
P(7) 882000 735000 588000 441000
Q(5) 630000 525000 420000 315000
R(5) 630000 525000 420000 315000
S(4) 504000 420000 336000 252000

Step 3 : Convert to a Minimisation Problem

Since the Hungarian Method works for minimisation problems, we convert the table by
subtracting each value from a large constant ( maximum value = 882000).

Salesman Zone A Zone B Zone C Zone D

P 0 147000 294000 441000
Q 252000 357000 462000 567000
R 252000 357000 462000 567000
S 378000 462000 546000 630000

Step 4: Row Reduction

 Subtract the minimum value from each row.

Salesman Zone A Zone B Zone C Zone D

P 0 0 0 0
Q 252000 210000 168000 126000
R 252000 210000 168000 126000
S 378000 315000 252000 189000

Step 4.2: Column Reduction

Subtract the minimum value from each column.

Salesman Zone A Zone B Zone C Zone D

P 0 0 0 0
Q 126000 84000 42000 0
R 126000 84000 42000 0
S 189000 126000 63000 0

Step 4.3: Cover zeroes with minimum number of lines.

Cross out rows and columns using the minimum number of lines covering all zeros.

Lines needed:
 Column P (full of zeros)
 Row D (full of zeros)

2 lines used, which is fewer than 4 ( number of rows/column), so further adjustments

are needed.

Step 4.4: Adjust the Matrix

Find the smallest uncovered value: 42000.
Subtract it from uncovered elements and add it to elements at the intersections.

Salesm Zon Zon Zo Zon

an eA eB ne eD
C
P 0 0 0 0
Q 840 420 0 0
 00 00
R 840 420 0 0
00 00
S 147000 840 210 0
00 00

Step 4.5: Cover zeros again

 Cover columns P, Q ,R (all zeros covered).
 Total lines = 3
 Less than 4, so repeat the adjustments process.

Step 4.6: Adjust Again

Smallest Uncovered value : 21000

Salesman Zone A Zone B Zone C Zone D

P 0 0 0 0
Q 63000 21000 0 0
R 63000 21000 0 0
S 126000 63000 0 0

Step 4.7: Cover Zeros

Cover rows C, D and column P, Q, R.
Total lines = 4 (Optimal solution reached).

Step 5: Optimal Assignments

 S1(ZoneD) : Salesman P
 S2( ZoneC) : Salesman Q
 S3(Zone B) : Salesman R
 S4( Zone A) : Salesman S

Step 6: Maximum Sales

Calculate the total maximum sales:
126000 X 4 + 105000 X 5 + 84000 X 5 + 63000 X 7
504000 + 525000 + 420000 441000 =1890000

 Maximum Expected Sales : Rs. 1890000

[Link].5 a) What is Queuing system? Briefly explain the important Operating

characteristics of Queuing system.
[Link] System : It is a mathematical model which is used to analyse the situations
where there are entities like customers and tasks etc. It is a process where people or tasks wait
in line to be served. It's like waiting in line at a bank, grocery store, or for a customer service
call.

Operating Characteristics of a Queuing System

1. Arrival Rate (λ): The average number of customers arriving at the queue per
unit of time. For example, in a bank, this could be the number of customers entering every
hour.
 2. Service Rate (μ): The average number of customers that can be served per
unit of time. It reflects the efficiency of the service system.
3. Traffic Intensity (ρ): The ratio of the arrival rate to the service rate (ρ = λ /
μ). It shows how busy the system is. If ρ > 1, the system is overloaded.
4. Average Queue Length (Lq): The average number of customers waiting in
line.
5. Average System Length (Ls): The total average number of customers in the
system, including those being served.
6. Waiting Time in Queue (Wq): The average time a customer spends waiting
in line.
7. Time in System (Ws): The total time a customer spends in the system,
including service time.

b)

Ans. Given:

1. Arrival rate (λ) = 9 customers per 5 minutes =(λ) = 1.8 customers per minute.

2. Service rate (μ) = 10 customers per 5 minutes =(μ) = 2 customers per minute.

3. Utilisation factor (ρ) = λ/μ = 1.8 / 2 = 0.9 .

Formulas:

For the M/M/1 queue:

1. Average number of customers in the system ( L ):

L=λ/ μ-λ

2. Average number of customers in the queue ( Lq ):

Lq = λ x λ / μ ( μ – λ )

3. Average time a customer spends in the system ( W ):

W=1/(μ–λ)

4. Average time a customer waits before being served ( Wq ):

 Wq = λ / μ ( μ – λ )

Calculations:

i. Average number of customers in the system ( L ):

L = λ / μ – λ = 1.8 / 2 – 1.8 = 1.8 / 0.2 = 9

ii. Average number of customers in the queue ( Lq ):

Lq = λ x λ / μ ( μ – λ ) = 1.8 x 1.8 / 2 ( 2 – 1.8 ) = 3.24 / 2.0.2 = 3.24 / 0.4 = 8.1

iii. Average time a customer spends in the system ( W ):

W = 1 / ( μ – λ ) = 1 / ( 2 – 1.8 ) = 1 / (0.2 ) = 5 minutes

iv. Average time a customer waits before being served ( Wq ):

Wq = λ / μ ( μ – λ ) = 1.8 / 2 ( 2 – 1.8 ) = 1.8 / 2.0.2 = 1.8 / 0.4 = 4.5 minutes

Final Results:

1. Average number of customers in the system ( L ) = 9.

2. Average number of customers in the queue ( Lq ) = 8.1.
3. Average time a customer spends in the system ( W ) = 5 minutes.
4. Average time a customer waits before being served ( Wq ) = 4.5 minutes.

[Link].6 What is Simulation ? Write in details the steps used in simulation process.
Ans. Simulation : Simulation means creating a fake or imaginary situation to practice,
test, or understand something in a safe and controlled way.

Think of it like a "mock" or "pretend" version of something, like a flight simulator for pilots
or a pretend store for kids to practice shopping. Simulation is the process of creating a virtual
or simplified model of a real-world system to study and analyse its behaviour under different
conditions. It allows testing ideas, predicting outcomes, and solving problems in a safe and
cost-effective way without affecting the actual system. The process involves understanding
the system, building a model, setting rules, running the simulation, and analysing a the
results. Simulations are widely used in fields like engineering, healthcare, business, and
education. For example, flight simulators help pilots practice safely, and traffic simulations
help design better roads. It’s a valuable tool for decision-making and problem-solving.

Steps involved in the process of Simulation

1. Understand the System: The first step is identifying the system, process, or
problem you want to study. For example, this could be traffic flow, weather patterns, or
machine performance.
2. Build a Model: Create a simplified version of the real-world system. This model
can be a computer program, diagram, or physical replica, focusing only on the most
important aspects.
 3. Set Rules and Conditions: Define how the system will behave during the
simulation. These rules may include time limits, input values, or specific behaviours like car
speeds in a traffic simulation.
4. Run the Simulation: Start the simulation and let it operate under the given rules.
Test different scenarios to observe how the system reacts to changes, such as adding more
vehicles to a traffic model.
5. Analyse Results: Study the outcomes of the simulation to find patterns, predict
future behaviour, or identify problems.
6. Use the Insights: Apply what you’ve learned to improve the real system. For
instance, use simulation results to design better roads or optimise a production line.

This step-by-step approach makes simulation a powerful tool for planning, problem-solving,
and decision-making.