Question 1.

Meaning of OR :

Operations
research management focuses on the mathematical scoring of
consequences of a decision aiming to optimise the use of time, effort, and
resources to avoid blunders. The act of obtaining best results under any
given circumstances is known as optimising. The key purpose of Operations
Research (OR) is to do preparative calculations that aid the decision-making Process
(b)Methodology of Operations Research : The basic dominant characteristic feature of operations research is that it
employs mathematical representations or models to analyse problems. This
distinct approach represents an adaptation of the scientific methodology
used by the physical sciences. The scientific method translates a given
problem into a mathematical representation which is solved and
retransformed into the original context. Figure 1.3 depicts the OR approach
to problem solving.

1.7.1 Definition
The first and the most important step in the OR approach of problem solving
is to define the problem. One needs to ensure that the problem is identified
properly because this problem statement will indicate the following three
major aspects:

ystem

system
1.7.2 Construction
Based on the problem definition, you need to identify and select the most
appropriate model to represent the system. While selecting a model, you
need to ensure that the model specifies quantitative expressions for the
objective and the constraints of the problem in terms of its decision
variables. A model gives a perspective picture of the whole problem and
helps in tackling it in a well-organised manner. Therefore, if the resulting
model fits into one of the common mathematical models, you can obtain a
convenient solution by using mathematical techniques. If the mathematical
relationships of the model are too complex to allow analytic solutions, a
simulation model may be more appropriate. Hence, appropriate models can
be constructed.
1.7.3 Solution
After deciding on an appropriate model, you need to develop a solution for
the model and interpret the solution in the context of the given problem. A
solution to a model implies determination of a specific set of decision
variables that would yield an optimum solution. An optimum solution is one
which maximises or minimises the performance of any measure in a model
subject to the conditions and constraints imposed on the model.
1.7.4 Validation
A model is a good representation of a system. However, the optimal solution
must work towards improving the systems performance. You can test the
validity of a model by comparing its performance with some past data
available from the actual system. If under similar conditions of inputs, your
model can reproduce the past performance of the system, then you can be
sure that your model is valid. However, you will still have no assurance that
future performance will continue to duplicate the past behaviour. Secondly,
since the model is based on careful examination of past data, the
comparison should always reveal favourable results. In some instances, this

problem may be overcome by using data from trial runs of the system. One
must note that such validation methods are not appropriate for non-existent
systems because data will not be available for comparison.
1.7.5 Implementation
You need to apply the optimal solution obtained from the model to the
system and note the improvement in the performance of the system. You
need to validate this performance check under changing conditions. To do
so, you need to translate these results into detailed operating instructions
issued in an understandable form to the individuals who will administer and
operate the recommended system. The interaction between the operations
research team and the operating personnel reaches its peak in this phase.

Question 2 : (a) Meaning of Linear programming problem

and explanation of graphical method of solving Linear
Programming Problem
Meaning : Linear Programming (LP) is a mathematical
technique designed to help
managers in their planning and decision-making. It is
usually used in an
organisation that is trying to make the most effective use
of its resources.
Resources typically include machinery, manpower,
money, time, warehouse

space, and raw materials.

(b) Formulation of LPP:

Question 3 :
a. Explain how to solve the degeneracy in transportation problems.

Case 1 - The degeneracy develops while determining an initial assignment

via any one of the initial assignment methods discussed earlier.
To resolve degeneracy, you must augment the positive variables by as
many zero-valued variables as is necessary to complete the required
m + n 1 basic variable. These zero-valued variables are selected in such a
manner that the resulting m + n 1 variable constitutes a basic solution.
The selected zero valued variables are designated by allocating an
extremely small positive value to each one of them. The cells containing
these extremely small allocations are then treated like any other basic cells.
The s are kept in the transportation table until temporary degeneracy is
Operations Research Unit 6
Sikkim Manipal University Page No. 127
removed or until the optimum solution is attained, whichever occurs first. At
that point, we set each = 0.
Case 2 - The degeneracy develops at the iteration stage. This happens
when the selection of the entering variable results in the simultaneous drive
to zero of two or more current (pre-iteration) basic variables.
To resolve degeneracy, the positive variables are augmented by as many
zero-valued variables as it is necessary to complete m+n-1 basic variables.
These zero-valued variables are selected from among those current basic
variables, which are simultaneously driven to zero. The rest of the
procedure is exactly the same as discussed in case 1.
Note - The extremely small value is infinitely small and it never affects the
value it is ad
cost cell to avoid forming a loop.
b. Explain the procedure of MODI method of finding solution through optimality test.