OR

Answer Any Ten Questions (2 Marks Each)

(a) What is a model?
A model is a simplified representation of a real-world system,
process, or relationship used to analyze and solve problems.
It helps in decision-making by simulating different scenarios.
(b) What do you understand by an unbalanced assignment
problem?
An unbalanced assignment problem occurs when the
number of tasks does not match the number of agents. In
such cases, dummy rows or columns are added to balance
the problem.
(c) State the Dominance Rule in Game Theory.
The Dominance Rule states that if a strategy is always worse
or equal to another strategy in all scenarios, it can be
eliminated from consideration to simplify decision-making.
(d) What do you understand by linear programming?
Linear Programming (LP) is a mathematical method used to
optimize a linear objective function subject to linear
constraints. It is widely used in resource allocation,
production planning, and logistics.
(e) What is meant by a feasible region?
The feasible region in a linear programming problem is the
set of all possible solutions that satisfy the given constraints.
It represents the area where the optimal solution lies.
(f) Write down the full form of CPM and PERT.
• CPM: Critical Path Method
• PERT: Program Evaluation and Review Technique
(g) Define free float and total float.
• Free Float: The amount of time an activity can be
delayed without affecting the start of its successor
activity.
• Total Float: The amount of time an activity can be
delayed without delaying the overall project completion.
(h) What is meant by an unbalanced transportation
problem?
An unbalanced transportation problem occurs when the
total supply does not match the total demand. To balance it,
a dummy row (supply) or column (demand) is added.
(i) Distinguish between normal time and crash time.
• Normal Time (NT): The expected time required to
complete an activity under normal conditions.
• Crash Time (CT): The shortest possible time to complete
an activity by using additional resources.
(j) What is a Saddle Point?
A Saddle Point in game theory is a position in a payoff matrix
where the minimum value in its row is equal to the maximum
value in its column, representing an optimal strategy for both
players.
(k) When is a dummy origin required in a Transportation
Problem?
A dummy origin is required when total demand exceeds total
supply or vice versa. It helps balance the transportation
matrix by adding zero-cost dummy allocations.
(l) What is the use of a Loop in a transportation algorithm?
A Loop is used in the modified distribution (MODI) method
to check for optimality in a transportation problem and adjust
allocations to improve cost efficiency.
(m) What is meant by an infeasible assignment?
An infeasible assignment occurs when a task cannot be
assigned to an agent due to constraints, such as skill
limitations, cost restrictions, or unavailability.
(n) What is the basic objective of an assignment problem?
The objective of an assignment problem is to assign tasks to
agents in a way that minimizes cost or maximizes efficiency
while ensuring each task is assigned to exactly one agent.
(o) Briefly state the Hurwicz Criterion.
The Hurwicz Criterion is a decision-making rule that balances
optimism and pessimism. It uses a weighted average of the
best and worst possible outcomes, where a coefficient (α)
represents the decision-maker’s optimism level.
(p) Explain the scope of O.R. (Operations Research) Study.
Operations Research (O.R.) applies mathematical and
analytical techniques to decision-making. Scope includes:
• Resource allocation
• Inventory management
• Transportation and logistics
• Project scheduling
• Risk assessment
(q) What is meant by an algorithm?
An algorithm is a step-by-step procedure or set of rules used
to solve a problem or perform a computation efficiently.
# Point out Any Two Exceptional Cases of the Typical
Assignment Problem
1. Unbalanced Assignment Problem: When the number of
tasks does not match the number of agents, dummy
rows or columns are added to balance the matrix.
2. Infeasible Assignments: Some tasks cannot be assigned
to specific agents due to constraints (e.g., skill
limitations, location restrictions).

(8/a) Distinguish Between CPM and PERT (6+6 Marks)

 PERT (Program
CPM (Critical Path
Feature Evaluation & Review
Method)
Technique)

Used for project Used for project

Purpose scheduling and scheduling with
time-cost trade-offs. uncertain activity times.

Uses probabilistic (three-

Uses deterministic
Activity Time time) estimates
(fixed) time
Estimation (Optimistic, Pessimistic,
estimates.
Most Likely).

Focuses on project
Focuses on time and
Focus completion probability
cost optimization.
and uncertainty.

Suitable for
Suitable for research and
Application repetitive projects
development projects.
like construction.

Identifies the
Path Calculates expected time
longest path (critical
Calculation using weighted averages.
path).

Less flexible due to

More flexible due to time
Flexibility fixed time
variations.
estimates.

(8/b) Practical Steps Involved in Solving a PERT Problem

 1. Define the Project: Identify tasks, dependencies, and
milestones.
2. Construct a Network Diagram: Represent activities as
nodes and dependencies as arrows.
3. Estimate Time for Activities: Use three-time estimates:
o Optimistic Time (O)
o Pessimistic Time (P)
o Most Likely Time (M)
o Expected Time (TE) = (O + 4M + P) / 6
4. Determine the Critical Path: Identify the longest path in
the network.
5. Calculate Project Completion Probability: Use standard
deviation and probability distributions.
6. Monitor and Control: Track project progress and update
estimates as needed.

(9) Write Short Notes on Any Two (6+6 Marks)

(a) Basic Feasible Solution to an LPP
A Basic Feasible Solution (BFS) is a solution to a Linear
Programming Problem (LPP) that satisfies all constraints and
non-negativity conditions. It is obtained by setting non-basic
variables to zero and solving for the remaining variables. BFS
helps in finding the optimal solution using the Simplex
Method.

(b) Hungarian Method

The Hungarian Method is an optimization algorithm used to
solve the Assignment Problem in polynomial time. It works
by:
1. Subtracting row and column minimum values.
2. Covering zeros with a minimum number of lines.
3. Adjusting the matrix and repeating the process until an
optimal assignment is found.

(c) VAM (Vogel’s Approximation Method)

VAM is used to find an initial feasible solution for the
Transportation Problem. It prioritizes the cells with the least
cost difference to optimize the allocation process. The steps
are:
1. Calculate the penalty for each row and column.
2. Assign values to the least cost cell with the highest
penalty.
3. Repeat until all supplies and demands are satisfied.

(d) Usefulness of PERT

 • Helps manage projects with uncertain activity durations.
• Provides probability estimates for project completion.
• Identifies critical tasks and potential delays.
• Useful in research, defense, and software development
projects.

(10/a) Methods Used for Decision-Making Under

Uncertainty (4+4 Marks)
(i) Hurwicz Criterion
• This method balances optimism and pessimism in
decision-making.
• A decision-maker assigns a coefficient α (0 ≤ α ≤ 1),
called the coefficient of optimism.
• The best decision is chosen using the formula:
Hurwicz Value = α (Best Payoff) + (1 - α) (Worst Payoff)
• If α = 1, the decision is purely optimistic. If α = 0, it is
purely pessimistic.

(ii) Laplace Criterion

• Assumes all possible outcomes are equally likely.
• The best decision is the one with the highest average
payoff calculated as:
 Laplace Value = (Sum of all payoffs) / (Number of
states)
• It is a neutral approach when no probability information
is available.

(10/b) Regret Table with Example (4 Marks)

A Regret Table (Opportunity Loss Table) shows the difference
between the best possible outcome and actual outcomes for
each decision.
Example:
Demand Demand Regret
Maximum
Alternatives High Low (Opportunity
Profit
(Profit) (Profit) Loss)

(300-200)=100,
A 200 100 300
(300-100)=200

(300-150)=150,
B 150 250 300
(300-250)=50

(300-300)=0,
C 300 50 300
(300-50)=250
• The regret value is calculated as the difference between
the best possible outcome in each state and the actual
profit.
• Decision-makers use Minimax Regret Criterion to select
the decision with the lowest possible regret.
1. Define Operations Research (OR)
Operations Research (OR) is a scientific approach to
decision-making that uses mathematical models,
statistical analysis, and optimization techniques to solve
complex problems and improve efficiency in business
and management.

2. Applications and Scope of OR in Modern

Management
Applications of OR:
1. Production & Manufacturing: Optimizing production
schedules, inventory management.
2. Finance & Banking: Risk analysis, portfolio management.
3. Supply Chain & Logistics: Route optimization,
warehouse management.
4. Healthcare: Scheduling surgeries, optimizing staff
allocation.
5. Marketing: Customer segmentation, demand
forecasting.
6. Defense & Military: Weapon system allocation, troop
deployment.
 Scope of OR:
• Resource Allocation: Maximizing output with limited
resources.
• Decision Analysis: Helps managers make informed
decisions.
• Optimization: Finding the best solution under given
constraints.
• Risk Management: Identifying and reducing
uncertainties.

3. Phases and Methodology of OR

Phases of OR:
1. Problem Definition: Understanding objectives,
constraints, and variables.
2. Data Collection: Gathering relevant data for analysis.
3. Model Formulation: Developing a mathematical
representation of the problem.
4. Solution Derivation: Applying optimization techniques
to solve the model.
5. Validation & Testing: Checking if the solution is practical
and accurate.
6. Implementation: Applying the solution in real-world
scenarios.
7. Monitoring & Feedback: Continuous improvement of
the system.
Methodology of OR:
• Formulating the problem
• Developing a mathematical model
• Solving the model using OR techniques
• Validating and implementing the solution

4. Mathematical Model of the Assignment Problem

Objective: Minimize total assignment cost while
ensuring each task is assigned to one worker.
Mathematical Formulation:
• Let C(i,j) be the cost of assigning worker i to job j.
• Let X(i,j) = 1 if worker i is assigned to job j, otherwise 0.
Constraints:
1. Each job is assigned to only one worker:
∑i=1nX(i,j)=1,∀j\sum_{i=1}^{n} X(i,j) = 1, \forall j
2. Each worker gets exactly one job:
∑j=1nX(i,j)=1,∀i\sum_{j=1}^{n} X(i,j) = 1, \forall i
3. Binary constraint:
X(i,j)∈{0,1}X(i,j) \in \{0,1\}
Objective Function:
 min⁡∑i=1n∑j=1nC(i,j)X(i,j)\min \sum_{i=1}^{n}
\sum_{j=1}^{n} C(i,j) X(i,j)

5. Short Notes
(a) PERT (Program Evaluation and Review Technique)
• Used for project scheduling and managing uncertain
activity durations.
• Uses Optimistic (O), Pessimistic (P), and Most Likely (M)
time estimates.
• Expected time formula:
TE=O+4M+P6TE = \frac{O + 4M + P}{6}
(b) CPM (Critical Path Method)
• Used for project scheduling with deterministic activity
durations.
• Identifies the longest path (critical path) in a project
network.
(c) Decision-Making Under Uncertainty
• When probabilities of different outcomes are unknown.
• Methods: Maximin, Minimax, Hurwicz, Laplace, Savage
Regret.
(d) VAM (Vogel’s Approximation Method)
• Heuristic method to find an initial feasible solution for
transportation problems.
• Uses row and column penalties to allocate costs
optimally.
(e) Big-M Method
• Solves Linear Programming Problems (LPP) with
artificial variables.
• Uses a large penalty (M) to eliminate artificial variables
in the final solution.
(f) MODI Method (Modified Distribution Method)
• Used to find the optimal solution for a transportation
problem.
• Uses dual variables (u,v) to check for improvement.
(g) North-West Corner Rule
• A method for finding an initial feasible solution in the
transportation problem.
• Allocations start from the top-left (North-West) corner
of the cost matrix.

6. Mathematical Form of the Transportation Problem

Objective Function:
Minimize transportation cost:
min⁡∑i=1m∑j=1nCijXij\min \sum_{i=1}^{m}
\sum_{j=1}^{n} C_{ij} X_{ij}
 where X(i,j) is the quantity transported from source i to
destination j, and C(i,j) is the transportation cost.
Constraints:
1. Supply constraint:
∑j=1nX(i,j)=Si,∀i\sum_{j=1}^{n} X(i,j) = S_i, \forall i
2. Demand constraint:
∑i=1mX(i,j)=Dj,∀j\sum_{i=1}^{m} X(i,j) = D_j, \forall j
3. Non-negativity:
X(i,j)≥0X(i,j) \geq 0

7. Types of Float
1. Total Float (TF):
TF=LatestFinishTime−EarliestStartTime−ActivityDuration
TF = Latest Finish Time - Earliest Start Time - Activity
Duration
o Maximum delay without affecting the project
deadline.
2. Free Float (FF):
FF=EarliestStartTimeofNextActivity−EarliestFinishTimeof
CurrentActivityFF = Earliest Start Time of Next Activity -
Earliest Finish Time of Current Activity
o Maximum delay without affecting the next activity.
3. Independent Float (IF):
IF=EarliestStartTimeofNextActivity−LatestFinishTimeofC
urrentActivityIF = Earliest Start Time of Next Activity -
Latest Finish Time of Current Activity
o Delay allowed without affecting any other task.

8. Brief Explanations
(i) Unbounded Solution
A solution where the objective function value increases
infinitely without violating constraints.
(ii) Infeasible Solution
A solution where no feasible region exists, meaning
constraints contradict each other.

9. Short Questions
(i) Saddle Point
A point in a payoff matrix where the row minimum
equals the column maximum, representing the best
strategy for both players.
(ii) Two-Person Zero-Sum Game
A game where one player's gain is another player's loss,
i.e., the sum of payoffs is always zero.
(iii) Pure & Mixed Strategy
• Pure Strategy: A player chooses the same action
consistently.
• Mixed Strategy: A player randomizes between multiple
strategies.

10. Algorithm of Dominance Method

1. Identify and eliminate dominated rows (strategies with
lower payoffs).
2. Identify and eliminate dominated columns (strategies
that are always worse).
3. Repeat until a single row/column remains or the matrix
is simplified.

11. Definitions
(i) Unbounded Assignment Problem
An assignment problem where no upper limit exists for
the number of tasks assigned to a worker.
(ii) Unbounded Transportation Problem
A transportation problem where supply or demand is
infinite, making cost optimization impossible.

12. Full Forms of PERT & CPM

• PERT: Program Evaluation and Review Technique
• CPM: Critical Path Method