Q.

No Assignment-2 Solution Marks COs

Explain the terms with suitable example:

(i) Rim Condition

(ii) Optimism and Pessimism in Decision Theory
Q1. 20 CO1
(iii) Mixed strategy
(iv) Saddle point
(v) Two person Zero-sum game

6Q2. What is the difference between Transportation Problem and an Assignment 10 CO1
Problem (write in bullet points)
Formulate an LP problem and determine an initial basic feasible solution of
the following transportation problem by using

(i) NWCM
(ii) LCM

D1 D2 D3 D4 supply
Q3. 20 CO2
S1 21 16 15 3 11

S2 17 18 14 23 13

S3 32 27 18 41 19

Demand 6 10 12 15

Q4 20 CO3

Consider the following payoff(profit) matrix

State of 1 2 3 4

Nature

Alternative
 Course of Action

A1 5 10 18 25

A2 8 7 8 23

A3 21 18 12 21

A4 30 22 19 15

Find the best strategy using the following criterion:

1. Hurwitz Criterion for maximization problem (using Optimism α=0.75

and pessimism (1-α)=0.25 )
2. Minimax Regret Criterion for Minimization Problem

Q5. A firm produces four products. Four operators are capable of producing any 30 CO4
of these four products. The processing for one unit, varies from operator to
operator. The firm records 8 hours a day and allow 30 minutes for lunch.
The processing time in minutes and the profit for each of the products are
given in the following table:

Operators Products

A B C D

P 15 9 10 6
Q 10 6 9 6
R 25 15 15 9
S 15 9 10 10

Profit per 8 6 5 4
unit (Rs.)
 (i) Find the optimal assignment of products to operators.
(ii) Find the optimal time needed for assignment
(iii) Find the total cost for this assignment

ANSWERS

ANSWER 1

1- Rim condition

When origin’s supply and destination’s demand are same , then the solution must be feasible, it
must satisfy all the supply and demand constraints.

2- Optimism and Pessimism in Decision Theory

Optimistic decision thinking follows the great confidence is a kind of approach, which involves
choosing the best option with the largest possible profit/payoff or the least possible cost/loss
whereas pessimism decision thinking dependably sway how the boss responds to the decision
climate and suggests that the decision maker want to play safest strategy and looks for only the
minimum profit/payoffs of alternatives or chooses the alternative whose outcome is the least bad.
 (iii)Mixed strategy – A game played with mixed strategy means game is played with more
than one strategy with some probability with respect to another player’s strategy and total
probability is always 1.

(iv) Saddle point - In a zero-sum matrix game, an outcome is a saddle point if the outcome is a
minimum in its row and maximum in its column. The argument that players will prefer not to
diverge from the saddle point leads us to offer the following principle of game theory, game is
played with pure strategy (single strategy).

(v) Two person Zero-sum game

Two-person Zero-Sum Game: The condition in which there are two players, with the condition of the
gain of one person is equal to the loss of the other person.

ANSWER 2

The difference between Transportation Problem and an Assignment Problem is as follows:

(i)Transportation Problem:

 Concerns about increasing profits as well as lowering the costs. The value of demand and the
sources are not required to be equal along with the matrix can also be not a square.

 If total supply is not equal to total demand, it is an imbalance situation.

 It can be solved in two tiers:(a) Vogel’s Approximation Method, The North West Corner Rule and
the Least Cost Method, all used under IBFS,(b) MODI technique gives the optimum result.

(ii)Assignment Problem: Concerns about designating finite sources to finite destinations in order
to provide a single destination for one source at a time along with minimizing the cost.

 No. of sources = No. of destinations If the total no. of rows is not equal to the total no. of columns
in the matrix, then itis an imbalanced matrix. Hungarian method is used to solve this kind of
problem

.ANSWER 3

I – NWCM METHOD
Firstly checking the rim condition,

Total supply = 6+10+12+15=43

Total demand = 6+10+12+15=43

Thus its equal,

Hence, m+n-1=6

D1 D2 D3 D5 SUPPLY

S1 21 16 15 3 11 – 6 = 5

6 5 cut cut 5 – 5 = 0

S2 17 18 14 23 13 – 5 = 8

cut 5 8 cut 8 – 8 = 0

S3 32 27 18 41 19 – 4 = 15

cut cut 4 15 15 – 15 = 0

DEMAND 6 10 12 15

met met met met

TOTAL COST = 6*21 + 5*16 + 5*18 + 8*14 + 4*18 + 15*41

TOTAL COST = 126 + 80 + 90 + 112 + 615
TOTAL COST = Rs 1095
II – LCM METHOD

Firstly checking the rim condition,

Total supply = 6+10+12+15=43

Total demand = 6+10+12+15=43

Thus its equal,

Hence, m+n-1=6

D1 D2 D3 D5 SUPPLY

S1 21 16 15 3 11 – 11 = 0

cut cut cut 11

S2 17 18 14 23 13 – 12 = 1

1 cut 12 cut 1 – 1 = 0

S3 32 27 18 41 19 – 10 = 9
 5 10 cut 4 9–5=44–4=0

DEMAND 6 -1=5 10 12 15 -11=4

met met met met

TOTAL COST = 11*3 + 1*17 + 12*14 + 5*32 + 10*27 + 4*41

TOTAL COST = 33 + 17 + 168 + 160 + 270 + 164
TOTAL COST = Rs 812

ANSWER 4

I part

1 2 3 4 Max of Min of Maximum

row Row weighted
(wo)
outcome

A1 5 10 18 25 25 5 20

A2 8 7 8 23 23 7 19

A3 21 18 12 21 21 12 18.75

A4 30 22 19 15 30 15 26.25
Weighted Outcome(WO)= α*Max. of Row elements + (1-α)*minimum of row elements

For A1 , WO =( 0.75*25)+(0.25*5)=20

For A2, WO=(0.75*23)+(0.25*7)=19

For A3, WO = (0.75*21)+(0.25*12) =18.75

For A4 , WO= (0.75*30)+(0.25*15)= 26.25

Here A4 will be the best strategy, as it has the highest value (26.25 ) of all the weighted
outcomes .

II part

Cost Matrix

1 2 3 4

A1 5 10 18 25

A2 8 7 8 23

A3 21 18 12 21

A4 30 22 19 15

Regret pay for minimization problem

Regret cost table = column costs – column wise minimum costs

 1 2 3 4 Minimax

A1 0 3 10 10 10

A2 3 0 0 8 8

A3 16 11 4 6 16

A4 25 15 11 0 25

After creating the regret pay table, we choose the maximum value from each row and then the
minimum value from minimax column.

So , A2 Will be the best strategy according to minimax regret criterion for minimization
problem as it has the lowest value .

ANSWER 5

(i) Production time per worker ={8hrs x 60}-30(break time)=450 minutes.

Operators Time to produce one

unit of Product

A B C D

P 15 9 10 6
Q 10 6 9 6
 R 25 15 15 9
S 15 9 10 10

Profit per 8 6 5 4
unit (Rs.)

Calculating the no. of units of produced by each operator.

Operator No. of Products Produced by each

s operator

A B C D

P 450/15 450/9 450/10 450/6

Q 450/10 450/6 450/9 450/6

R 450/25 450/15 450/15 450/9

S 450/15 450/9 450/10 450/10

Operator No. of Products Produced by operators

s

A B C D

P 30 50 45 75

Q 45 75 50 75

R 18 30 30 50

S 30 50 45 45
 Operators Products(total no. of unit produced)

A B C D

P 30 50 45 75

Q 45 75 50 75

R 18 30 30 50

S 30 50 45 45

Profit/unit 8 6 5 4

As the profit is given per unit for each product, the profit matrix will be :-

Operator Profit Matrix

s

A B C D

P 240 300 225 300

Q 360 450 250 300

R 144 180 150 200

S 240 300 225 180

By converting the profit matrix into cost matrix we subtract all the element of matrix from the highest
value i.e. 450 :-

Operators Profit Regret Matrix/Cost Matrix

A B C D

P 210 150 225 150

Q 90 0 200 150

R 306 270 300 250

S 210 150 225 270

Applying Hungarian Method for Assignment Model
Step 1:- Row Reduction Matrix

In this step, we subtract the minimum elements from all the elements of the rows and do it for each
row separately. If there is any zero exists in the respective row, then the row remains the same. (there
is no change in the row)

Operators Profit Matrix

A B C D

P 60 0 75 0

Q 90 0 200 150

R 56 20 50 0

S 60 0 75 120

Step 2:- Column Reduction Matrix

In this step, we subtract the minimum elements from all the elements of the columns and do it for
each column separately. If there is any zero exists in the respective column, then the column remains
the same. (there is no change in the column)

Operators Profit Matrix

A B C D

P 4 0 25 0

Q 34 0 150 150

R 0 20 0 0

S 4 0 25 120

Step 3:-
Identify single zero in each row and draw vertical lines to cover all the zeroes in that column, again
identify the single zero in each column and draw horizontal lines to cover all the zeroes in that row.

Step II: Optimality Test

We draw the fewest number of straight lines possible in order to cover the
most zeros.

4 0 25 0 4X4
34 0 150 150
0 20 0 0
The minimal number of
4 0 25 120
lines necessary to cover all
zeroes is only 3(<4), and optimum assignment cannot be determined at
this point. We make improvements to the matrix.

0 0 21 0

30 0 146 150

0 24 0 4

0 0 21 120

Since the no. of lines = order of matrix =4, Optimal Solution is possible

Step III: Assignment

0 0 21 0

30 0 146 150

0 24 0 4
 0 0 21 120

Final Answer
Operator Profit Matrix
s

A B C D

P 240 300 225 300

Q 360 450 250 300

R 144 180 150 200

S 240 300 225 180

Comparing Assignment with profit matrix the max profit is Rs. 1140

Operators Products Profit

 1 D 300

2 B 450

3 C 150

4 A 240

Total 1140/-

Operators Time to produce one unit of

Product

A B C D

P 15 9 10 6
Q 10 6 9 6
R 25 15 15 9
S 15 9 10 10

Operators Products(total no. of unit produced)

A B C D

P 30 50 45 75

Q 45 75 50 75

R 18 30 30 50

S 30 50 45 45

Profit/unit 8 6 5 4

Comparing Assignment with time matrix the minimum time required is

Operators Products Time Total unit Time

required for
 one unit produced required for

1 D 6 75 450 min.

2 B 6 75 450 min

3 C 15 30 450 min

4 A 15 30 450 min.

Total Optimum
time utilized

Operators Profit Regret Matrix/Cost Matrix

A B C D

P 210 150 225 150

Q 90 0 200 150

R 306 270 300 250

S 210 150 225 270

Operators Products Cost

1 D 150
 2 B 0

3 C 300

4 A 210

Total 660/-