Optimization Techniques :Model Questions and Answers

Q. Illustrate monte carlo simulation with suitable example

Ans : The monte Carlo simulation approach is used to incorporate the random behaviour of variable(s)
of interest in a model.
The Monte Carlo simulation technique involves conducting repetitive experiments on the model of the
system under study, with some known probability distribution to draw random samples (observations)
using random numbers.
The Monte Carlo simulation approach consists of following steps:
1. Setting up a probability distribution for variables to be analysed.
2. Building a cumulative probability distribution for each random variable.
3. Generating random numbers and then assigning an appropriate set of random numbers to represent
value or range (interval) of values for each random variable.
4. Conducting the simulation experiment using random sampling.
5. Repeating Step 4 until the required number of simulation runs has been generated.
6. Designing and implementing a course of action and maintaining control.

Q. Explain quadratic programming with suitable illustration

Ans : An NLP problem with non-linear objective function and linear constraints. Such an NLP problem
is called quadratic programming problem. The illustrative
mathematical model of quadratic programming problem is as follows:

Q. How geometric programming differs from quadratic programming

Ans: Quadratic programming has polynomials, while Geometric programming has polynomial
equations

Q. Explain any one method of normalization with an example

It is a scaling technique method in which data points are shifted and rescaled so that they end up in a
range of 0 to 1. It cab ne done by min-max scaling. x’ normalized value

Linear Scaling x′=(x−xmin)/(xmax−xmin)

Q. What do you mean by beneficial and non beneficial attributes in MADM

The attributes can be beneficial or non-beneficial. When objective values of the attribute are available,
A beneficial attribute (e.g., profit) means its higher measures are more desirable for the given decision-
making problem, and accordingly normalized values are calculated. By contrast, non-beneficial
attribute (e.g., cost) is that for which the lower measures are desirable, and the normalized values are
calculated accordingly.

Q. How many number of full factorial experiments will be required for three factor at four levels
Factors to the power levels
3^4 = 81

Q. Explain the concept of dynamic programming.

Regardless of the type or size of a decision problem, there are certain terms and concepts that are
commonly used in dynamic programming approach of solving such problems. Stage The dynamic
programming problem can be decomposed or divided into a sequence of smaller subproblems called
stages. At each stage there are a number of decision alternatives (courses of action) and a decision is
made by selecting the most suitable alternative. Stages represent different time periods in the planning
period. For example, in the replacement problem each year is a stage, in the salesman allocation
problem each territory represents a stage. State Each stage in a dynamic programming problem is
assoicated with a certain number of states. These states represent various conditions of the decision
process at a stage. The variables that specify the condition of the decision process or describe the status
of the system at a particular stage are called state variables. These variables provide information for
analyzing the possible effects that the current decision could have upon future courses of action. At any
stage of the decision-making process there could be a finite or infinite number of states. For example,
a specific city is referred to as state variable, in any stage of the shortest route problem. Return function
At each stage, a decision is made that can affect the state of the system at the next stage and help in
arriving at the optimal solution at the current stage. Every decision that is made has its own worth or
benefit associated and can be described in an algebraic equation form, called a return function. This
return function, in general, depends upon the state variable as well as the decision made at a particular
stage. An optimal policy or decision at a stage yields optimal (maximum or minimum) return for a
given value of the state variable

Q. Illustrate MADM (Multi attribute decision making) with suitable examples.

MADM is an approach employed to solve problems involving selection from among a finite number
of alternatives. An MADM method specifies how attribute information is to be processed in order to
arrive at a choice. MADM methods require both inter- and intra-attribute comparisons, and involve
appropriate explicit tradeoffs. Each decision table (also called decision matrix) in MADM methods has
four main parts, namely: (a) alternatives, (b) attributes, (c) weight or relative importance of each
attribute, and (d) measures of performance of alternatives with respect to the attributes. The decision
table is shown. The decision table shows alternatives, Ai (for i = 1, 2, ….. , N), attributes, Bj (for j = 1,
2, ….. , M), weights of attributes, wj (for j=1, 2, ….., M) and the measures of performance of
alternatives, mij (for i= 1, 2, ….., N; j=1, 2, ….., M). Given the decision table information and a
decision-making method, the task of the decision maker is to find the best alternative and/or to rank the
entire set of alternatives. It may be added here that all the elements in the decision table must be
normalized to the same units, so that all possible attributes in the decision problem can be considered.

Q. Explain taguchi loss function

The Taguchi Loss Function states that any deviation from the desired target value or specification
results in a monetary loss to society. In order to better understand Taguchi’s proposal, it is convenient
to contrast his vision in relation to the Traditional Perspective. According to the traditional concept,
losses occur only when a product exceeds the specification limits as shown in the graph. In this way it
is assumed that any product that is contained within the specification limits does not generate a loss in
terms of quality for the customer and for society.

In this context, the Taguchi method is based on the hypothesis that the smaller the variation with respect
to said target value (goal), the better the product quality. Note that the desired target value or
specification is equidistant from the Lower Specification Limit and the Upper Specification Limit.

It can be seen that the function of the loss of quality is a U-shaped curve, which is determined by the
following simple quadratic function:

▪
▪ L(x)= Quality loss function.
▪ x = Value of the quality characteristic (observed).
▪ N = Nominal value of the quality characteristic (Target value – target).
▪ k = Proportionality constant.
Q. Explain design of experiments and its importance

To understand cause-and-effect relationships in a system you must deliberately change the input
variables to the system and observe the changes in the system output that these changes to the inputs
produce. In other words, you need to conduct experiments on the system. Each experimental run is a
test. More formally, we can define an experiment as a test or series of runs in which purposeful changes
are made to the input variables of a process or system so that we may observe and identify the reasons
for changes that may be observed in the output response. We may want to determine which input
variables are responsible for the observed changes in the response, develop a model relating the
response to the important input variables and to use this model for process or system improvement or
other decision-making. Design of experiments is a systematic way of conducting these experiments, so
as to study effects of input on output.

We can usually visualize the process as a combination of operations, machines, methods, people, and
other resources that transforms some input (often a material) into an output that has one or more
observable response variables. Some of the process variables and material properties x1, x2, . . . , xp
are controllable, whereas other variables z1, z2, . . . , zq are uncontrollable (although they may be
controllable for purposes of a test). The objectives of the experiment may include the following:
1. Determining which variables are most influential on the response y
2. Determining where to set the influential x’s so that y is almost always near the desired nominal value
3. Determining where to set the influential x’s so that variability in y is small
4. Determining where to set the influential x’s so that the effects of the uncontrollable variables z1, z2,
. . . , zq are minimized

Q. State Bellman's principle of optimality

The optimal policy must be one such that, regardless of how a particular state is reached, all later
decisions (choices) proceeding from that state must be optimal.

Q. What do you understand by full factorial experimentation and fractional factorial experimentation?

A full factorial design is a simple systematic design style that allows for estimation of main effects and
interactions. This design is very useful, but requires a large number of test points as the levels of a
factor or the number of factors increase.
Fractional factorial designs are experimental designs consisting of a carefully chosen subset (fraction)
of the experimental runs of a full factorial design. The subset is chosen so as to exploit , expose
information about the most important features of the problem studied, while using a fraction of the
effort of a full factorial design in terms of experimental runs and resources. In other words, it makes
use of the fact that many experiments in full factorial design are often redundant, giving little or no
new information about the system.