SUBJECT CODE/NAME: MG1402 - OPERATIONS RESEARCH

YEAR/SEM: IV/VII BRANCH: EEE

UNIT-I
LINEAR PROGRAMMING(LP)
PART-A 2 MARKS

UNIT I LINEAR PROGRAMMING (LP)

Basic concepts and scope of OR – Phases of OR – Formulation of LP Problems – Limitations of

LP – Solutions to LPP – Graphical Solution – Standard LP form and its Basic solutions – The
simplex algorithm – Artificial Variable Technique – Big-M method, Two-phase method –
Variants of the Simplex Method – Degeneracy, unbounded solution, infeasible solution –
Application for business and Industrial problems

1. What is operations research?

Operation Research:
Operations research (OR) is a method of solving problems and making decisions using
mathematical analysis. It's used to improve efficiency and decision-making in organizations.

2. What are the phases of an operations research study?

The various phases of operation research (or)

The steps involved in the solution of OR Problem.

Operation research is based on scientific methodology which proceeds as:

1. Formulating the problem.

2 Constructing a model to represent the system under study
3. Deriving a solution from the model.
4. Testing the model and the solution derivq4 from it.
5. Establishing controls over the solution.
6. Putting the solution to work i.e. implementation.
(i) Assignment of job to machine
(ii) Product mix
(iii) Advertising media selection
(iv) Transportation.

2. Dynamic programming
(i) Capital budgeting
(ii) Employment smoothening
(iii) Cargo loading.

3. Inventory control
(i) Economic order quantity

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 3. Define a feasible solution.
A solution to the LPP which satisfies the non-negativity restrictions of the LPP
is called a feasible solution

Feasible region:
A region in which all the constraints are satisfied simultaneously is called a
feasible region.

4. Define optimal solution.

Any feasible solution which optimizes the objective function is called its
optimal solution.

 What is meant by optimality test in a LPP?

By performing optimality test we can find whether the current feasible solution can be
improved or not. This is possible by finding the Z jC j row. In the case of a maximization
problem if all j j CZare nonnegative, then the current solution is optimal

5. define basic solution / feasible solution/basic feasible solution

 Basic Solution: A solution with a specific number of variables set to non-zero, not necessarily
satisfying all constraints.
 Feasible Solution: A solution that satisfies all constraints, including non-negativity.
 Basic Feasible Solution: A solution that is both basic and feasible; it satisfies all constraints and
corresponds to a vertex of the feasible region.
Understanding these distinctions is crucial in the context of linear programming, especially when applying
methods like the simplex algorithm to find optimal solutions.

6. Define unbounded solution.

If the values of the objective function Z can be increased or decreased indefinitely, such
solutions are called unbounded solutions.

7. What are the two forms of a LPP?

The two forms of linear programming problems (LPP) are the standard form and the canonical
form:

 Standard form: A simplified version of the canonical form

State the Characteristics of Standard form :

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 Canonical form: Uses Boolean algebra to represent Boolean outputs of digital circuits

State the characteristics of canonical form.

The characteristics of canonical form are
i) The objective function is of maximization type
ii) All constraints are “ ” type
iii) All variables Xi are non negative.

8. What do you mean by standard form of LPP?

The standard form of a linear programming problem (LP) is a fixed format that's used to solve linear programs
using the Simplex Method. It has the following characteristics:

 Maximization: The objective function is to maximize the value, not minimize it.
 Non-negative variables: All variables are non-negative.
 Equality constraints: All constraints are in the form of equations.
 Less-than-or-equal-to inequalities: All linear constraints are in the form of less-than-or-equal-to inequalities.
The standard form of a linear programming problem is written as:
 Objective function: max z = ∑ c i x i
 Constraints: x i > 0

9. What do you mean by canonical form of LPP?

The canonical form of a linear program (LP) is a way of representing a linear

program with the following properties:

 Constraints: Only <= constraints are allowed.

 Objective function: The objective function must be maximized.
 Variables: All variables must be non-negative.

In matrix notation, the canonical form of an LP is:

 max { cx | x >= 0, Ax <= b }
 c: is a row vector with n elements
 x: is a column vector with n elements
 b: is a column vector with m elements
 A: is an m by n matrix

The canonical form is used to construct the simplex method, which standardizes the algorithm
and uses the mechanics of the extreme points.

10. What are the limitations of LPP?( imp ques)

 Constraints: It can be difficult to specify constraints, even after the function is determined.
 Mathematical function: It can be difficult to determine the mathematical function in an LPP.
 Coefficient values: Determining the coefficient values at each step can be a problem.

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 Assumptions: The assumptions made are not real because they are based on the elements in the
given situation.
 Solutions: The solutions obtained can always be real numbers.
 Relationships: LPP treats all relationships as linear, which is not true in many real-life
situations.
 Decision variables: In some LPPs, the decision variable would only be meaningful if it has
integer values.

11. What are the slack and surplus variables? (imp ques)

12. what is meant by decision variable?

n a linear programming problem (LPP), a decision variable is an unknown quantity that

the program tries to determine to solve the problem:

Definition
A decision variable is a physical quantity that a decision maker controls and is
represented by a mathematical symbol.

13. Define artificial variable.

Any non negative variable which is introduced in the constraint in order to

get the initial basic feasible solution is called artificial variable.

14. What are the methods used to solve an LPP involving artificial variables?

. Big M method or penalty cost method

Two-phase simplex method

15. What is degeneracy?

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 The concept of obtaining a degenerate basic feasible solution in a LPP is known as
degeneracy. In the case of a BFS, all the non basic variables have zero value. If some basic
variable

s also have zero value, then the BFS is said to be a degenerate BFS.

16. How to Resolve degeneracy in LPP ?

17. Define non-degenerate solution

Solution:
A non-degenerate basic feasible solution is the basic feasible solution which
has exactly m positive Xi (i = 1, 2,------m) ie, none of the basic variables are zero.

18. Write the general mathematical model of LPP in matrix form.

Solution:
Max or Min Z = CX
Subject to AX ( ) b
X0

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 UNIT-II
DUALITY, TRANSPORTATION MODEL AND
ASSIGNMENT MODEL
PART-A

UNIT II DUALITY, TRANSPORTATION MODEL AND ASSIGNMENT MODEL

Primal – Dual models – Dual simplex method – Mathematical formulation of the problem –
Methods for finding an initial solution – North-West corner method, Least-cost method, Vogel’s
Approximation Method (VAM) – Test for optimality – Variants of the transportation problem –
Mathematical Formulation of the problem – Solution of an assignment problem – Hungarian
algorithm – Variants of the assignment problem – Traveling salesman problem

2 marks :

1. Define dual of LPP.

The dual of a linear programming problem (LP) is another LP that has the same data and
solution as the original LP. The original LP is called the primal problem, and the other LP is
called the dual problem.

How to find the dual of an LP

1. Convert the primal LP's constraints to standard form
2. Identify the dual variables
3. Write the dual problem's objective function

What is primal and dual ?

The original problem is called “pri- mal” while the other one is called “dual”. In fact, either problem can
be considered as primal and the remaining problem as its dual. An interesting feature of duality is that if
the optimal solution of one is known then the optimal solution of the other one is readily available.

2. What are the importance of the duality concept?

1. If. the primal problem contains a large number of rows and a smaller number of
columns, the computational procedure can be considerably reduced by converting it into dual and
then solving it.
2. This can help managers in answer questions about alternative course of actions and
their relative values.
3. Economic interpretation of the dual helps the management in making future decisions.
4. Calculation of the dual checks the accuracy of the primal solution.

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 3. State the optimality condition in dual simplex method.

In the dual simplex method, the optimality condition is when the resulting value for
the new variable in the new row is non-negative.
Explanation
 The dual simplex method is a variant of the primal simplex method.
 The dual simplex method is used to solve linear programming problems (LPPs) where the
initial basic solution is infeasible but better than optimal.
 The dual simplex method works towards feasibility, while the primal simplex method works
towards optimality.
 At the final optimal iteration, the solution is both primal and dual feasible

4. What is the difference between regular simplex method and dual simplex
method?

Simplex method starts with a non-optimal but feasible solution whereas dual simplex method
starts with an optimal but infeasible solution
. Simplex method maintains the feasibility during successive iterations whereas dual simplex
method maintains the optimality.

(to understand the concept)

5. What is transportation problem? Is this a special class of LPP ? When does it a unique
solution ?

The transportation problem is to transport various amount of single object that are
initially stored at various origins, to different destinations in such a way that the total
transportation cost is minimum.
Yes it is a special class of LPP and may be solved by simplex method. Transportation
problem always posses a feasible solution.

It has a unique solution when cell evaluation matrix has only positive values

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 Write mathematical model for general transportation problem as LPP.
Mathematical formulation
Suppose that there are m sources and n destinations. Let a1be the number of supply units
available at source i (i =1, 2, 3 m) and let b1 be the number of demand units required at destination j
(f = 1, 2, 3 n). Let C, represent the unit transportation cost for transporting the units from source i to
distination j. The objective is to determine the number of units to be transported from source i to
destination j. So that total transportation cost is minimum.

6. List any three approaches used with T.P for determining the starting solution. or
List the various methods that can be used for obtaining an initial basic solution for
transportation problem.

1. North west corner method

2. Row minimum method
3. Column minimum method
4. Least cost method
5. Vogal approximation method.

7. What do you mean by degeneracy in a Transportation problem?(very imp ques)

In a transportation problem with m origins and n destinations if a basic feasible solution
has less than ( m + n—i) allocations, the problem is said to be a degenerate transportation
problem.

8. What do you mean by an unbalanced T.P?

An unbalanced transportation problem is a situation where the total supply of goods is
not equal to the total demand for those goods.

Explanation
 In a transportation problem, the goal is to assign a finite amount of goods from a finite
number of sources to a finite number of destinations.
 When the supply and demand are equal, the problem is balanced.
 When the supply and demand are not equal, the problem is unbalanced.
 To solve an unbalanced transportation problem, you can add a dummy row or column to
make it balanced.
 You can then solve the balanced problem using the same methods.

9.How do you convert the unbalanced T.P into a balanced one?

To convert an unbalanced transportation problem into a balanced one, you can add a
dummy row or column to account for the difference between supply and demand. The
transportation costs to the dummy row or column are set to zero.

Steps
1. Identify if the total supply is greater than or less than the total demand

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2. If the supply is greater than demand, add a dummy destination
3. If the demand is greater than supply, add a dummy origin
4. Set the transportation costs to zero for the dummy row or column
5. Solve the problem as if it were balanced

10.What is an assignment problem?

11.List the various methods are used to solve the assignment problems?

An assignment problem is a problem where resources are assigned to tasks to minimize cost
or maximize profit. The goal is to find the optimal one-to-one matching between sources and
destinations

There are mainly four methods to solve assignment problems:

 Hungarian method.
 Enumeration Method.
 Simplex method.
 Transportation method.

 Hungarian method: An efficient algorithm that uses a matrix approach to find the optimal
solution. It reduces the cost matrix to a matrix of opportunity costs.
 Enumeration method: A method that calculates the cost for all possible assignments and then
selects the solution with the lowest cost. This method is best for smaller problems.

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 Simplex method: A linear programming method that can be used to solve assignment problems.
 Transportation method: A method that can be used to solve assignment problems.
 Genetic algorithms (GA): A meta heuristic technique that mimics natural selection to find
optimal solutions.
 Evolutionary algorithms (EA): A meta heuristic technique that mimics natural selection to find
optimal solutions.

12. What do you mean by an an unbalanced assignment problem?

Unbalanced Assignment Problem

If number of rows is not equal to number of columns then it is called Unbalanced Assignment
Problem.
So to solve this problem, we have to add dummy rows or columns with cost 0, to make it a
square matrix.

(imp ques)
13.State the difference between the T.P and A.P.
The main difference between a transportation problem and an assignment problem
is that a transportation problem can have multiple sources and destinations, while
an assignment problem must have an equal number of sources and destinations

Let’s understand the Difference between transportation and assignment

problems?

Transportation problems and assignment problems are two types of linear

programming problems that arise in different applications.

The main difference between transportation and assignment problems is in the

nature of the decision variables and the constraints.

If you’re unable to see the whole table kindly convert the mobile view to the
desktop view
Transportation Problem Assignment Problem

Assignment Minimization or maximization of Maximization of the total profit or

Problem the cost of transporting goods from minimization of the total cost in
one source to another assigning tasks to individuals

Nature of Involves transporting goods from Involves assigning tasks to

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 problem sources to destinations individuals

Number of Multiple sources and destinations An equal number of sources and

sources and destinations
destinations

Availability and Each source and destination have a Each task has only one individual
demand supply or demand value who can perform it

Decision variables Amount of goods transported from Binary variables indicate whether
each source to each destination an individual is assigned a task or
not

Constraints Capacity constraints on sources and Each individual can only perform
demand constraints on destinations one task

Solution method Transportation simplex method, Hungarian algorithm, brute force

northwest corner rule, Vogel’s method
approximation method

Example Transporting goods from factories Assigning tasks to employees or

to warehouses jobs to machines

14.What is the objective of the travelling salesman problem?

The objective of the Traveling Salesman Problem (TSP) is to find the shortest route
that visits every city once and returns to the starting point.

Explanation
 The TSP is a well-known optimization problem in computer science and operations
research.
 It's a combinatorial optimization problem, which means that the number of possible solutions
grows exponentially with the number of cities.

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 The TSP is NP-hard, which means that finding an exact solution requires a lot of computer
power.
 The TSP has many real-world applications, such as in logistics and delivery businesses.
Applications
 Finding more efficient routes can help delivery businesses increase profitability and reduce
greenhouse gas emissions.
 Salespeople can use the TSP to plan optimal travel routes and avoid missed appointments.

15.How do you convert the maximization assignment problem into a

minimization one?

To convert a maximization assignment problem into a minimization problem, you

can subtract each element in the cost matrix from the highest element. This is also known as
the "Opportunity Loss Matrix".

Steps:

1. Find the highest element in the matrix

2. Subtract each element in the matrix from the highest element
3. The result is the "Opportunity Loss Matrix"
4. The "Opportunity Loss Matrix" has a zero in the place of the highest element
5. The assignment problem now has a minimization objective

16. Explain how the profit maximization transportation problem can be

converted to an equivalent cost minimization transportation problem.

To convert a profit maximization transportation problem to a cost minimization

transportation problem, you can subtract each unit cost from the highest unit cost in the
table.
Steps
1. Construct a transportation matrix using the given data
2. Check if the problem is balanced, meaning supply equals demand
3. If the problem is unbalanced, add a dummy source or destination to balance it
4. Subtract each unit cost from the highest unit cost
5. Create a column reduce matrix by subtracting the lowest value in the first column from the
other values in that column
6. Repeat the process for the remaining columns
7. Repeat the process for the rows
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8. Add the column and row reduce matrices to create a modified minimization matrix
9. Determine the penalty by subtracting the highest value from the lowest in each row and
column
10. Assign the greatest supply or demand to the lowest value with the highest penalty .

Describe the steps involved in vogal approximation method (VAM).

Ans.
Setp. 1. For each row of the transportation table identify the smallest and next to smallest cost.
Determine the difference between them for each row. These are called penalities.’ Similarly
compute these penalities for each column.
Setp. 2. Identify the row or column with the largest penalty and allocate as much as possible
within the restrictions of the rim conditions to the lowest cost cell in the row or column selected.
Setp. 3. Cross out of the row or column completely satisfied by the allocation.
Setp. 4. Repeat steps 1 to 3 untill all assignment have been made.

Define the following terms in transportation Problem.

(i) feasible solution (ii) Optimal solution
1. Feasible Solution. A feasible solution to a transportation problem is a set of non negative
allocations, x that satisfy the rim conditions.
2. Optimal Solution. A feasible solution that minimize the transportation cost is called the
optimal Solution

Explain North west corner rule for finding initial solution for a transportation problem.
(a) If D1< S1, set x11 equal to find the balance supply and demand and proceed horizontally (cell 1,
2).
(b) If = S1 set x11 equal to D1, find the balance supply and demand and proceed diagonally (cell 2,
2).
(c) If D1>S1, set x11equal to compute the baiance supply and demand and proceed vertically (cell 2,
1).
2. Continue in this manner, step by step away from the north west corner until, finally a value is
reached in the south east corner.

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State the Assignment model. Is assignment problem a special case of transportation?
Assignment Model Suppose there are n jobs to be performed and n person are available for doing
these jobs. Assume that each person can do each job at a time, though with varying degree of
efficiency.The problem is to find an assignment so that the total cost for performmg all jobs is
minimum
Yes, the assignment problem is a special case of transportation problem when each
origin is associated with one and only one destination.

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What do you mean by restrictions an assignments?
Or
How a restriction problem tackled?
Or
How will you solve an assignment where a particular assignment is prohibited?
Sometime technical, space, legal’or other problems do not permit the assignment of a particular
facility to a particularjob. Such problem are known restrictions an assignment problem. Such
problem can be solved by assigning a very heavy cost to the corresponding cell. It will automatically
excluded from further consideration.

Describe the steps involved in solving assignment problem by Hungarian method. (imp)

1. Prepare a square matrix.

2. Reduce the matrix.
3. Check whether an optimal assignment can be made in the reduced matrix or not.
4. Find the minimum number of lines crossing all zeros. If this number of lines is equal to the order
of matrix then it is an optimal solution. Otherwise gp to step 5.
5. Iterate towards the optimal solution.
6. Repeat step 3 through 5 until an optimal solution is obtained.

Distinguish between transportation, assignment and sequencing model what is sequencing

model).
Ans. Transportation and assignment are allocation model (as explained above) Sequencing
model. are applicable in situation in which the effectiveness measure
a function of order as sequence of performing a series of jobs. The selection of the apropriate
order in which waiting customer/Job may be served is called sequencing

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 UNIT III INTEGER DYNAMIC PROGRAMMING

Types – Concept of a cutting plane – Gomory’s cutting plane method – Branch and bound
method– Concepts – Terminology – Bellman’s principle of optimality – Application in Network,
allocation and inventory.

UNIT-III
INTEGER DYNAMIC PROGRAMMING
PART-A

1. What do you mean by integer programming problem?

An integer programming (IP) problem is a mathematical optimization problem that uses integer
variables to find the best solution. IPs are used in many fields, including finance, economics, and
operations research.

How it works
 Linear constraints: IPs are linear programming (LP) problems with additional integer
constraints.
 Integer constraints: These constraints limit some or all of the variables to be integers.
 Optimization: IPs optimize a linear function to find the best solution.

2. What are the applications of zero-one integer programming?

Zero-one integer programming is a mathematical method used to solve problems that have
two mutually exclusive options. It's used in many fields, including finance, engineering, and
logistics.
Applications
 Finance: Zero-one integer programming can help with capital rationing, investment returns,
and production planning.
 Business: It can help companies decide what to invest in, which options to select, and which
products to develop.
 Transportation: It can help with scheduling services and vehicles, such as assigning buses
to routes and drivers.
 Engineering: It can be used in engineering applications.
 Logistics: It can be used in logistics applications.
 Operations research: It can be used in operations research applications.

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 3. Define a mixed integer programming problem.

A mixed-integer programming (MIP) problem is one where some of the

decision variables are constrained to be integer values (i.e. whole numbers such as
-1, 0, 1, 2, etc.) at the optimal solution. The use of integer variables greatly
expands the scope of useful optimization problems that you can define and solve.

4. Differentiate between pure and mixed IPP.

The difference between pure and mixed integer programming problems (IPP) is the
number of variables that must be integers. In a pure IPP, all variables must be integers, while
in a mixed IPP, only some variables must be integers.

Explanation
 Pure IPP
In a pure IPP, all decision variables must be integers. This means that the problem is
restricted to taking integer values.
 Mixed IPP
In a mixed IPP, some variables must be integers, but others can be any non-negative
value. This means that the problem is not restricted to taking only integer values.

5. What are the methods used in solving IPP

 Gomory's cutting plane method
This method was the first method used to solve IPPs. It involves solving the problem as a linear
program (LP) and then adding constraints to find an integer solution.
 Branch and bound method
This method is used to solve problems with a few integer variables. It involves splitting the
feasible solution space into smaller subsets and evaluating each subset until the best solution is
found.
 LP relaxation
This method is used to convert an IPP into an LP problem that can be solved quickly. It
involves relaxing the integrality condition on each variable.
 Integer simplex method
This method is an integer version of the simplex method, which is a standard technique for
solving LPs. It involves starting with an integral feasible solution and then trying to improve it.

6. Explain Gomorian constraint (or) Fractional Cut constraint.

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 A Gomory constraint, also known as a fractional cut constraint, is a linear constraint used to
find optimal solutions to linear integer programming (LIP) problems. It is used in
conjunction with the Simplex Method.

How it works
1. Solve the problem as a linear programming (LP) problem, ignoring the integer stipulation
2. If the solution satisfies the integer restrictions, then it is the optimal solution
3. If the solution does not satisfy the integer restrictions, add a Gomory constraint to the
problem
4. Repeat steps 2 and 3 until an optimal solution is found

7. Where is branch and bound method used?

Branch and bound algorithms are used to find the best solution to optimization
problems. They are used in many applications, including:
 Supply chain scheduling
Branch and bound algorithms can be used to schedule deliveries for multiple factories
 Channel assignment
Branch and bound algorithms can be used to assign resources to activities in a linear
programming problem
 Integer programming
Branch and bound algorithms can be used to solve non convex nonlinear programming
problems
 Mixed integer problems
Branch and bound algorithms can be used to solve mixed integer problems by converting
them to linear programming problems

Branch and bound algorithms are efficient and versatile, and can be used to solve a variety of
problems. They work by exploring the entire search space of possible solutions and pruning
the search tree to find the best solution.

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 Benefits of branch and bound algorithms
 Efficiency They can efficiently handle problems with large search spaces
 Optimality: They can ensure that the best solution is found
 Flexibility: They can be adapted to various optimization problems

8.What is dynamic programming?
Dynamic programming is a mathematical technique used in operations
research to solve optimization problems by breaking them down into simpler sub
problems. It's a general approach to problem solving that can be applied to many
different situations
 Divide and conquer
Dynamic programming breaks down a complex problem into simpler subproblems.
 Store solutions
The solutions to the subproblems are stored in a table.
 Use solutions
When solving the original problem, the solutions to the subproblems are used as needed.
 Find the optimal solution
The optimal solution is found by studying how each subproblem interacts with its solutions.

9. Define the terms in dynamic programming : stage, state ,state variables

In dynamic programming, a stage is a step or phase, a state is the current status of a problem,
and a state variable is a variable that describes the state.
Stage
 A stage is a step or phase in a problem that progresses from one solution to the next.
 The order of stages is the order in which each state of a problem should be solved.
State
 A state is the current status of a problem.
 A state can be described by one or more state variables.
 A state is a specific set of values for each parameter.
 The answer for a specific state is called the DP value.
State variable
 A state variable is a variable that describes the mathematical "state" of a dynamical system.
 The values that state variables can take describe the status of the problem.

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  For example, in the shortest route problem, a city is referred to as a state variable.

10. Give a few applications of DPP.

Dynamic programming has many real-world examples and applications in

various domains, such as combinatorial optimization, graph theory, image
processing, machine learning, genomics, and cryptography.

11. State Bellman’s principle of optimality.

Bellman's principle of optimality states that the optimal policy for a sequence of
decisions is independent of the initial state and decisions. It states that the
remaining decisions must be optimal for the state resulting from the first decision.
Explanation
 The principle of optimality is used in dynamic programming (DP), a technique for
solving complex problems by breaking them down into smaller subproblems.
 DP is used to solve engineering optimization problems.
 In computer science, problems that can be broken down in this way are said to
have optimal substructure.
 The principle of optimality is analogous to the concept of subgame perfect
equilibrium in dynamic game theory.

12. What are the advantages of Dynamic programming?

Dynamic programming is a problem-solving technique that can be used to solve complex

problems efficiently. It has several advantages, including:
 Efficiency
Dynamic programming reduces computation time by reusing solutions to subproblems.
 Optimal solutions
Dynamic programming can find the best solution to a problem by combining the best
solutions to its subproblems.
 Versatility
Dynamic programming can be used to solve a wide range of problems, including
combinatorial optimization and bioinformatics.
 Handles complex problems

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 Dynamic programming can solve problems that are difficult or impossible to solve using
other methods.

 Improves recursive algorithms

Dynamic programming can convert recursive algorithms that take exponential time into
polynomial-time solutions.
 Can handle negative weights, cycles, or multiple optimal solutions
Dynamic programming can find the best solution to problems that have negative weights,
cycles, or multiple optimal solutions.

13. Explain the importance of the L.P.P

Linear programming (LPP) is a mathematical tool that helps find the best solution to
complex problems by optimizing a certain outcome. It's used in many industries, including
business, engineering, economics, and finance

 Saves time and money

LPP can help organizations improve their processes and save money.
 Solves complex problems
LPP is a powerful tool for solving complex problems that involve multiple variables and
constraints.
 Helps achieve goals
LPP can help achieve goals like maximizing profits, minimizing costs, and reducing waste.
 Improves decision making
LPP can help make better decisions by finding the best way to allocate resources and meet
constraints.

(Points to remember )

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 UNIT IV PROJECT MANAGEMENT AND THEORY OF GAMES

Concept of Network – PERT, CPM – Construction of Network – Critical path analysis –

Probability in PERT analysis – Cost trade-off analysis – Two-person zero-sum game – Pure
strategies – Mixed strategies – Games with dominance – Solution methods of games without
saddle point – Algebraic method, arithmetic method, matrix method and Graphical method

UNIT-IV
PROJECT MANAGEMENT AND THEORY OF GAMES
PART-A

1. What is a network?

In operations research, a network is a technique for planning and scheduling large

projects. It uses a graphical representation of relationships between variables to model and
solve problems.

How it works
 A network diagram is a graph that shows the activities, duration, and dependencies of tasks
in a project.
 Activities are represented by arrows and consume time and resources.
 Network analysis helps to estimate complex patterns of relationships.
 It can help to solve problems like how long a project will take, what activities need to be
completed first, and what the estimated cost will be.
When it's used
 Network analysis can be used in many fields, including construction, maintenance,
fabrication, purchasing, and research and development.
 It can help to minimize trouble spots like delays and interruptions

2. What is merge event?

a merge event is when multiple activities join an event, or when
multiple events are completed.
Explanation
 Activities: An operation with a start and end
 Events: The start or completion of an activity

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 Merge event: When two or more activities join an event, or when two or more events are
completed
 Burst event: When two or more activities leave an event

Operations research (OR) is a discipline that uses analytical methods to improve decision-
making. It uses techniques from other mathematical sciences, such as statistics, modeling,
and optimization

3. What are the three types of float?

free float, total float, and independent float.

Free float

 The amount of time a task can be delayed without affecting the start of the next task
 A measure of a task's flexibility
 Helps project managers understand how much slack is available in the project schedule
Total float
 The amount of time a task can be delayed without affecting the project's overall completion
date
 A measure of a task's flexibility
 Can compromise a project's final delivery date
Independent float
 The amount of time a task can be delayed without affecting the start of any subsequent tasks
 A delay in any project tasks that have no bearing on the early finish date of the project

4. What is total float?

 The amount of time a task can be delayed without affecting the project's overall completion
date
 A measure of a task's flexibility
 Can compromise a project's final delivery date

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5. Define critical activity and critical path.

A critical path in project management is the longest sequence of activities that

must be finished on time in order for the entire project to be complete. Any delays in critical
tasks will delay the whole project

6. Distinguish between PERT and CPM

7. Define the cost time slope of an activity.

the "cost-time slope" of an activity refers to the rate at which the direct cost of an activity increases when its
duration is reduced (i.e., "crashed"), essentially representing the additional cost incurred per unit time saved by speeding up an
activity.
Calculated: Cost-time slope = (Crash Cost - Normal Cost) / (Normal Time - Crash Time)
In Critical Path Method (CPM), the cost-time slope is crucial for determining which activities should be "crashed" first
to minimize overall project cost when aiming to shorten the project duration.

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 8. Define crash time and crash cost
Crash time: It is the minimum possible time in which an activity can be completed by
employing extra resources.
crash cost: is the associated cost of completing that activity within the crash time,
meaning the increased cost incurred by using additional resources to achieve the faster
completion time.

9. Define a game.(important 8 mark or compulsory 2 mark)

a game is a set of rules that define an activity between two or more players. The goal of
the game is to determine the best strategy for each player to maximize their payoff.
Components of a game
 Players: The decision-makers in the game
 Strategies: The plans of action that each player chooses
 Payoff: The benefit or loss that each player receives based on their strategy
 Information set: The information available to each player at any given time

Types of games
 Strategy games: Games where players use skill to determine their actions
 Chance games: Games where players use chance to determine their actions
 Zero-sum games: Games where the total payoff for all players is zero
 Non-zero-sum games: Games where the total payoff for all players is not zero
Game theory
 Game theory is a mathematical framework that analyzes decision-making in competitive
situations. It helps players determine the best strategy to maximize their payoff.
10. Define strategy.
strategy is a plan for how to allocate resources to achieve an organization's goals. It's a
long-term plan that involves making decisions about how to manage processes and resources.

11. Define two person zero sum game.

The 2-person 0-sum game is a basic model in game theory. There are two players, each
with an associated set of strategies. While one player aims to maximize her payoff, the other

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 player attempts to take an action to minimize this payoff. In fact, the gain of a player is the loss
of another.

Explanation

 In a zero-sum game, the net benefit for all players is zero.

 In a two-person zero-sum game, each player has a set of strategies.
 One player tries to maximize their payoff, while the other tries to minimize it.
 Zero-sum games are also known as constant-sum games.
 Zero-sum games are a basic model in game theory.
Examples
 Chess
 Cutting a cake
 Coin matching
 Trading options and futures

12. Define pure and mixed strategies.

a "pure strategy" refers to a decision where a player always chooses a single specific
course of action in a given situation, while a "mixed strategy" involves randomly selecting
among multiple available actions based on a probability distribution, essentially introducing an
element of uncertainty to the decision-making process.

Pure Strategy Mixed strategy

Deterministic choice Probabilitic Choice

Can be optimal in situations Can be more complex to analyze
Example:In a game of rock-paper-scissors, example :

always choosing "rock" would be a pure strategy.

In the same game, choosing "rock" 30%

of the time, "paper" 30% of the time,
and "scissors" 40% of the time would
be a mixed strategy.

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13. Define saddle point ?

A saddle point is a point on a graph where the slope is zero, but it is not a local maximum
or minimum.

It's a point of inflection between a relative maximum and relative minimum

14. When do players apply mixed strategies?

Players apply mixed strategies in game theory situations where no pure strategy
equilibrium exists.

A strategy where a player randomizes over two or more actions rather than consistently
choosing a single action

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 UNIT V INVENTORY CONTROL AND QUEUING

Deterministic model – Costs – Decision variables – EOQ – Instantaneous receipt of goods with
and without shortages – Non-instantaneous receipt of goods without shortages – Price breaks –
Probabilistic inventory model – Single period without setup cost – Inventory systems – Lead
time- Safety stock – ROL, ROP determination – Characteristics of Queuing system – Symbols
and- Kendall’s notation – Poisson arrival and exponential service – Single and multi channel
model –Infinite population.

1. What is meant by inventory?

"Inventory" refers to the stock of goods or materials a company holds for future
production or sale, including raw materials, work-in-progress items, and finished goods, which
are managed to optimize costs and meet demand efficiently; essentially, it's the quantity of items
stored by a business to facilitate smooth operations and sales.

2. Mention the various types of inventory?

The primary types of inventory include: raw materials, work-in-progress (WIP),
finished goods, and maintenance, repair, and operations (MRO) inventory; with additional
categories like cycle inventory, safety stock, and decoupling inventory depending on the specific
application.

3. What are the different costs that are involved in the inventory problem?
The primary types of inventory include: raw materials, work-in-progress (WIP), finished
goods, and maintenance, repair, and operations (MRO) inventory; with additional categories like
cycle inventory, safety stock, and decoupling inventory depending on the specific application.

4. Define holding cost and setup cost?

Setup costs refer to all of the costs associated with actually ordering the inventory, such
as the costs of packaging, delivery, shipping, and handling. Demand rate is the amount of
inventory a company sells each year. Holding costs refer to all the costs associated with holding
additional inventory that remains unsold.

5. Briefly explain probabilistic inventory model.

A probabilistic inventory model is a method for managing inventory that considers the
uncertainty and variability of demand and lead time. It's used to make decisions about how much
and when to reorder inventory.

6. Distinguish between deterministic model and probabilistic model

A deterministic model predicts a single, exact outcome based on known inputs, assuming no randomness
or uncertainty
probabilistic model provides a range of possible outcomes with associated probabilities, incorporating
randomness and uncertainty into the prediction,

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7. Define buffer stock or safety stock.
Buffer stock refers to extra inventory kept on hand in case of manufacturing delays or an
unexpected increase in demand. Calculating the right amount of buffer stock to have available
helps to keep carrying costs low while making sure customer orders are fulfilled on time.

8. Define a queue
a queue is a waiting line of customers, items, or information that are waiting for service. Queues
are used in queuing theory to model waiting lines and predict how long people will wait for service.

9. What are the basic characteristics of a queuing system?

10. Define transient and steady state.

11. Explain Kendall’s notation.
12.Write Little’ formula
13. Define the following (1) Balking (2) Reneging (3) Jockeying
14. List the characteristic of a queueing system
15. Explain the queue discipline and its various forms:

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