August 2010 Subject Code : MC0079 Assignment No: 01 Subject Name: Computer Based Optimization Methods Marks: 60 Credits : 4 Bk Id B0902 Answer the following: 610 = 6 1. Briefly describe the structure of a mathematical model in OR. Ans: The Structure of Mathematical Model
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August 2010
Subject Code : MC0079 Assignment No: 01
Subject Name: Computer Based Optimization Methods
Marks: 60
Credits : 4 Bk Id B0902
Answer the following: 610 = 6
1. Briefly describe the structure of a mathematical model in OR.Ans:
The Structure of Mathematical Model
Many industrial and business situations are concerned with planning activities. In each case of planning, there are limited sources, such as men, machines, material and capital at the disposal of the planner. One has to make decision regarding these resources in order to either maximize production, or minimize the cost of production or maximize the profit
etc. These problems are referred to as the problems of constrained optimization. Linear programming is a technique for determining an optimal schedule of interdependent activities, for the given resources. Programming thus means planning and refers to the process of decision-making regarding particular plan of action amongst several available alternatives.
Any business activity of production activity to be formulated as a mathematical model can best be discussed through its constituents; they are:
- Decision Variables,
- Objective function,
- Constraints.
1.6.1 Decision variables and parameters
The decision variables are the unknowns to be determined from the solution of the model. The parameters represent the controlled variables of the system.
1.6.2 Objective functions
This defines the measure of effectiveness of the system as a mathematical function of its decision variables. The optimal solution to the model is obtained when the corresponding values of the decision variable yield the best value of the objective function while satisfying all constraints. Thus the objective function acts as an indicator for the achievement of the optimal solution.
While formulating a problem the desire of the decision-maker is expressed as a function of ‘n’ decision variables. This function is essentially a linear programming problem (i.e., each of its item will have only one variable raise to power one). Some of the Objective functions in practice are:
- Maximization of contribution or profit
- Minimization of cost
- Maximization of production rate or minimization of production time
- Minimization of labour turnover
- Minimization of overtime
- Maximization of resource utilization
- Minimization of risk to environment or factory etc.
1.6.3 Constraints
To account for the physical limitations of the system, the model must include constraints, which limit the decision variables to their feasible range or permissible values. These are expressed in the form of constraining mathematical functions.
For example, in chemical industries, restrictions come from the government about throwing gases in the environment. Restrictions from sales department about the marketability of some products are also treated as constraints. A linear programming problem then has a set of constraints in practice.
The mathematical models in OR may be viewed generally as determining the values of the decision variables x J, J = 1, 2, 3, —— n, which will optimize Z = f (x 1, x 2, —- x n).
Subject to the constraints:
g i (x 1, x 2 —– x n) ~ b i, i = 1, 2, —- m
and xJ 0 j = 1, 2, 3 —- n where ~ is , or =.
The function f is called the objective function, where g i ~ b i, represent the i th constraint for i = 1, 2, 3 —- m where b i is a known constant. The constraints x j
0 are called the non-negativity condition, which restrict the variables to zero or positive values only.
2. Find all basic solutions for the system
42 321 xxx
552 321 xxx
Solution: Here A = , X = and b = .
i) If x1 = 0, then the basis matrix is B = . In this case 2x2 + x3 = 4, x2 + 5x3 = 5.
If we solve this, then x2 = and x3 = . Therefore x2 = , x3 = is a basic feasible
solution.
ii) If x2 = 0, then the basis matrix is B = . In this case, x1 + x3 = 4, 2x1 + 5x3 = 5.If
we solve this, then x1 = 5 and x3 = -1. Therefore x1 = 5, x3 = -1 is a basic solution. (Note
that this solution is not feasible, because x3 = -1 < 0).
iii) If x3 = 0, then the basis matrix is B = . In this case, x1 + 2x2 = 4.
2x1 + x2 = 5. If we solve this, then x1 = 2, and x2 = 1. Therefore x1 = 2, x2 = 1 is a basic
feasible solution.
Therefore
i) (x2, x3) = (5/3, 2/3),
ii) (x1, x3) = (5, -1), and
iii) (x1, x2) = (2, 1) are only the collection of all basic solutions.
The initial basic solution is S1 = 4, S2 = 3, S3 = 3
\X0 = = C0 =
The initial table is given by
S1 is the outgoing variable, x2 is the incoming variable to the basic set.
The first iteration gives the following table :
x3 enters the new basic set replacing S3, the second iteration gives the following table :
x1 enters the new basic set replacing S2, the third iteration gives the following table:
Since all elements of the last row are non-negative, the optimal solution is Z = which
is achieved for x2 = 1, x1 = 1, x3 = and x4 = 0.
4. Solve the following problem by MODI methodA firm owns facilities at six places. It has manufacturing plants at places A, B and C with daily production of 50, 40 and 60 units respectively. At point D, E and F it has three warehouses with daily demands of 20, 95 and 35 units respectively. Per unit shopping costs are given in the following table. If the firm wants to minimize its total transportation cost, how should it route its products?
Warehouses
PlantsD E F
A 6 4 1
B 3 8 7
C 4 4 2
Ans: A firm owns facilities at six places. It has manufacturing pants at places A, B, and C with daily production of 50, 40 and 60 units respectively. At point D, E and F it has three warehouses with daily demands of 20, 95 and 35 units respectively. Per unit shipping costs are given in the following table. If the firm wants to minimize its total transportation cost, how should it route its products?
Solution: We use the North West corner rule for the initial basic feasible solution, given
in the following table and the basic cell are represented in right top square box.
Let u1 = 0. For the occupied cell (1, 1), u1 + v1 = c11 0 + v1 = 6 v1 = 6.
Similarly, u1 + v2 = c12 0 + v2 = 4 v2 = 4. Now with v2 = 4, u2 + 4 = 8 u2 = 4
and u3 = 0.
Now from u3 = 0, we get v3 = 0. Therefore we have determined all ui and vj values.
Next we calculate = ui + vj – cij values which are given in the left bottom squares
(opportunity costs).
Now
Therefore the cell (2, 1) has the largest positive opportunity cost and so select x21 for
inclusion as the basic variable. The closed loop (indicated in arrows in the above table)
starting with cell (2, 1).
The revised solution is shown in the following table.
This solution is tested for optimality and is found to be non-optimal. Here the cell (1, 3)
has positive opportunity cost and so a closed loop is traced starting with this.
The resulting solution, when tested is found to be optimal (given in the following table).
(observe that in this table no opportunity cost is positive).