BA4201 & QUANTITATIVE TECHNIQUES AND DECISION MAKING

Possible Two Mark Questions

UNIT 1- INTRODUCTION TO LINEAR PROGRAMMING

1. Define Operati on Research
Operation research is a scientific approach to problem solving for executive decision making which requires the
formulat ion of mathematical, econo mic & statistical model for decision and control problems to deal with
situation arising out of risk and uncertainty.
According to operations research society of America, (ORSA), it is a tool which is concerned with the
designed and operation of the man- machine system scientifically, usually under conditions requiring the
optimu m allocation of limited resources.

2. State the Duality Princi ple

According to princip le of duality “ Dual o f one expression is obtained by replacing AND with OR & OR
with AND together with replacement of 1 with 0 & 0 with 1”.
Example :

Normal Solution Converted into Dual Form

Min Z = 20X1 + 40X2 Max Y = 40Y1 + 20Y2
2X1 + 20X2 ≥ 40 2Y1 + 20Y2 ≤20
20X1 + 3X2 ≥ 20 20Y1 + 3Y2 ≤40
X1 and X2 ≥ 0 Y1 and Y2 ≤ 0

3. State the characteristics of linear programmi ng problems

The linear programming is a mathemat ical p rogramming where the functions representing the objectives and the
constraints are linear. The fo llo wing are the characteristics,
1. All decision variable are non-negative
2. All constraints are of = type
3. The objective function is of the maximisation type.

4. What are the objecti ves of sensitivity analysis

The kind of sensitivity analysis can be carried out in the following ways:
1. Making changes in the right hand side constants of the constraints.
2. Making changes in the objective function coefficients.
3. Adding a new constraint.
4. Adding a new variable.

5. Distinguish between simplex method & Dual simplex method.

Simp lex Method Dual Simp lex method
1.In itial basic feasible solution existing Initially optimu m solution is existing but infeasible
solution existing
2.Optimu m solution Feasible solution (+ → Feasible and - → Infeasib le)

6.Types of Simplex method

It has 2 methods
1. Penalty method (Big-M method)
2. Two-Phase method
7. Linear programming
It involves linear object ive function with a set of linear constraints.
8. Slack variables
The variables wh ich are introduced to balance the constrained equation are called slack variab les. Slack
variables are introduce to change the “≤” in equality into “=” equality.
Example :
Normal Form Standard Form
Max Z = 6X1 + 8X2 Max Z = 6X1 + 8X2 + 0S1 + 0S2
5X1 + 10X2 ≤ 60 5X1 + 10X2 + S1 = 60
4X1 + 4X2 ≤ 40 4X1 + 4X2 + S2 = 40
X1 and X2 ≥ 0 X1 ,X2 ,S1 andS2 ≥ 0
(S1 & S2 are slack variables)

9. Artificial variable
If some o f the constraints are of “=” or “≥” type, then they will not contain any basic variables. Just to
have a basic variable in each of them, a new variable is called artificial variable.
Example :
Normal Form Standard Form Artificial Form
Max Z = 2X1 + 3X2 Min Z = -2X1 - 3X2 - 0S1 - 0S2 Min Z = -2X1 - 3X2 - 0S1 - 0S2 - MA 1 -
X1 + X2 ≥ 6 X1 + X2 - S1 = 6 MA 2
7X1 + X2 ≥ 14 X1 + X2 - S2 = 14 X1 + X2 - S1 + A 1 = 6
X1 and X2 ≥ 0 X1 ,X2 ,S1 and S2 ≥ 0 X1 + X2 - S2 A 2 = 14
(S1 & S2 are surplus variables) X1 ,X2 ,S1 ,S2 A 1 and A2 ≥ 0

10.Special Cases of linear programming

The special cases of the solution of the linear programming problem can be categorized as shown below,
1. Infeasible So lution
2. Unbounded Solution
3. Unbounded solution space with finite Solution
4. Alternate optimu m Solution
5. Degenerate Solution

11. OR Methodol ogy

OR is a scientific methodology applied to study the activities of an organisation with a view to access the
implementation of various alternative courses of action. The OR approach to solve problems consists of the
following steps
1. Problem defin ition
2. Model Construction
3. Model solution
4. Model valid ity
5. Implementation

12. Li mitation of OR
Following are the Limitation of OR
1. Construction of OR model for solving certain prob lems is too expensive.
2. OR model constructed may not represent the real world problem for which the decision has to made.
3. If the basic data are subject to frequent to changes, modificat ion of the OR models becomes costly.
4. Other shortcomings are the magnitude of computation involved, lack of consideration for non-
quantifiable factors,etc.
13. Surplus variables
The inequality can be brought to equality by adding a non -negative variable to the left-hand side. Let these
variables be Xn+i
a11 X1 + a12 X2 + …… + ain Xn ≤b i where I = 1,2,3,……
Is convert in to
a11 X1 + a12 X2 + …… + ain Xn Xn+i = b i Xn+Iis called Surplus variables.

14. Basic feasible soluti on

A solution which satisfies all the constraints and non-negative restriction is called feasible solution. A
feasible solution which is also basic is called basic feasib le solution.

15. Two – phase method

Two phase method is an alternative method to big-M method used to solve simplex problems with art ificial
variables. As the name implies, this method consists of two phases.
Phase 1
In phase 1 the given problem is converted to the form,
Max Z = 0X1 + 0X2 +0Xn + … + 0Xn +0s 1 +0s 2 + … + 0s n – R1 – R2 …..– Rn
Subject to
ai1 +Xi1 +ai2 +Xi2 + …..+ain +Xin – s i + Ri = b i
Where I = 1 to M, and this problem is solved by simplex method and maximize Z value subject to
X1,X2…….,Xn variables is determined. Rn artificial variable are taken in basic table & all other variables are kept at
zero.
Phase 2
Basic variables obtained in phase 1 are taken in in itial basic table in phase 2. The constraints equations are
equated to get solution obtained in phase 1, on the right – hand side of the equation.With reference to this
equation, the basic table is constructed & solved by simplex method & maximize Z value subject to
X,X1,X2…….,Xn variables is determined.

16. Define OR:

Operational Research is a scientific method of providing executive with an analytical and objective basis for
decisions. (PMS Blackett)

17. What is OR:

Operation research is the application of scientific method to complex problem arising fro m operations involving
large systems of men, machines, materials and money in industry, business, government and defense.

18. Models of OR:

 It is a simp lified representation of an operation or it is a process in which only the basic aspects or the
most important features of a typical prob lem under investigation are considered.
 Main objectives of model is to identify and solution to the problem.

19. What are the main characteristics of Operation Research?

 Its system orientation
 The use of inter-disciplinary forms
 Application of scientific method
 Uncovering of new problems

20. Scope of OR:

 Earlier economists, statisticians, technical worker use OR to bring solution to problem only in military.
 Presently in agriculture, finance, industry, personnel management, production management R&D uses OR.
21. State any four applications of OR:
 Assignment of jobs to applicants to maximize total profit or minimize total costs.
 Rep lacement techniques are used to replace the old machines with new ones.
 Inventory control techniques are used in industries to purchase optimu m quality of raw materials.
 Before executing pro jects, activities are sequenced and scheduled using the PERT chart.

22. What are the method used for sol vi ng O R models:

 Analytic procedure
 Iterative procedure
 Monte-Carlo technique

23. General form of LPP:

Max or M in Z = X1 + X2 + ……. + Xn
Subjected to a11X1 + a12X2+ …………… + a1n Xn
a21X1 + a22X2+ …………… + a2nXn
.
am1X1 + am2X2+ …………… + amn Xn
X1, X2…..Xn > 0

24. Define Optimal solution:

Any feasible solution which optimizes (minimizes or maximizes) the objective function is called its optimal
solution

25. Two forms of A LPP:

Two forms of LPP are (i) standard form and (ii) Canonical fo rm

26. What do you mean by Standard form of LPP:

In standard form, irrespective of the objective function namely maximize or min imize, all the constraints are
expressed as equations, also right hand side constants are non-negative constrains.

27. What are the Li mitati ons of LPP:

 For large problem having many limitations and constraints, the computational difficu lties are
enormous event when computers are used.
 Many times it is not possible to express both the objectives function and constrain ts in linear form.
 This method does not take into account the effect of time.

28. What is mean by opti mality?

By performing optimality test we can find whether the current feasible solution can be improved or not, which is
possible by finding the Zj - Cj row.

29. Define Dual of LPP.

For every LPP, there is a unique LPP associated with it involving the same data and closely related optimal
solution. The original problem is then called the primal problem wh ile the other is called its dual problem.

30. What is the advantage of Dual simplex method

The advantage of dual simplex method is to avoid introducing the artificial variable along with the surplus
variable as the > type constraint is converted into < type.

31. Dual simplex method

The method used to solve LPP without the use of artificial variab les is called dual simplex method.