REVENUE MANAGEMENT USING TORA

Exercise No. 21

LINEAR PROGRAMMING PROBLEM – MINIMIZATION

Aim:

To solve the given LPP (Minimization) using TORA.

Min z = 4X1+3X2.
Sub to 2X1+X2 >= 10,
X1+X2 >= 6,
3X1+2X2 <= 6, X1>0, X2>0.

Procedure:

Step 1:
Click the TORA software and run it. Choose Linear Programming and click go to Input screen. Give
Title name and enter the values for Number of variables and constraints and Press enter.

Step 2:
Enter the variable name X1 and X2.

Step 3:
Please enter the Number of Variables and Constraints. Click on the Field for changing Maximize and
Minimize options.
Step 4:
Click SOLVE Menu, then save the data.

Step 5:
Click on the Screen – Choose the following options – Solve problem Algebraic Iterations
Dual simplex method.

Step 6:
Finally choose Go to output screen and Choose All iterations. Click OK option for the result.
OUTPUT:

RESULT:

Thus the given LPP is solved using TORA and the problem has “No feasible solution”.
Exercise No. 22

LINEAR PROGRAMMING PROBLEM – MAXIMIZATION

Aim:

To solve the given LPP (Maximization) using TORA.

Max z = 3X1+2X2.
Sub to 2X1+X2 <= 2,
3X1+4X2 >= 12,
X1>0, X2>0.

Procedure:

Step 1:
Click the TORA software and run it. Choose Linear Programming and click go to Input screen. Give
Title name and enter the values for Number of variables and constraints and Press enter.

Step 2:
Enter the variable name X1 and X2.

Step 3:
Please enter the Number of Variables and Constraints. Click on the Field for changing Maximize and
Minimize options.

Step 4:
Click SOLVE Menu, then save the data.

Step 5:
Click on the Screen – Choose the following options – Solve problem Algebraic Iterations
Dual simplex method.

Step 6:
Finally choose Go to output screen and Choose All iterations. Click OK option for the result.
OUTPUT:

RESULT:

Thus the given LPP is solved using TORA and the problem has “No feasible solution”.
 TRANSPORTATION & ASSIGNMENT MODEL USING TORA
Exercise No. 23

TRANSPORTATION PROBLEM
Aim:

To solve the transportation problem using TORA.

D E F G Supply
A 11 13 14 17 250
B 16 18 14 10 300
C 21 24 13 10 400
Deman 200 225 275 250 950
d

Procedure:

Step 1:
Click the TORA software and run it. Select the Transportation model from the Main menu. Or Right
click and choose Transportation model.

Step 2:
Choose and Enter a new problem. Click Go to Input Screen.

Step 3:
Give Title and enter Sources and Destination and Press Enter Button.
Step 4:
Input Grid – Screen will be displayed. Now please enter Sources and Destination values.

Step 5:
After the Sources and Destination values are entered. Click SOLVE Menu. It asks to save the data.
Give a file name and save the data.
Step 6:
Now Choose Solve Problem and click Final solution.

OUTPUT:

RESULT:

Thus the problem is solved and Objective Value (Minimum Cost) = 12075.00 is found using TORA.
Exercise No. 24

ASSIGNMENT PROBLEM
Aim:
To solve the given Assignment problem using TORA.

Example
A taxi hire company has one taxi at each of five depots a, b, c, d and e. A customer requires a taxi in
each town, namely A, B, C, D and E. Distances (in kms) between depots (origins) and towns (Destinations) are
given in the following distance matrix:
a b c d e Supply
A 140 110 155 170 180 1
B 115 100 110 140 155 1
C 120 90 135 150 165 1
D 30 30 60 60 90 1
E 35 15 50 60 85 1
Demand 1 1 1 1 1

How should taxis be assigned to customers so as to minimize the distance travelled?

Procedure:

Step 1:
Click the TORA software and run it. Select the Transportation model from the Main menu. Or Right
click and choose Transportation model.

Step 2:
Choose and Enter a new problem. Click Go to Input Screen.
Step 3:
Give Title and enter Sources and Destination and Press Enter Button.

Step 4:
Click the Solve Menu option, it shows the Save dialog box; click yes and save the file.
Step 5:
To solve the problem, use the command,
Solve problem Final Solution. Get the output.
Step 6:

If you want to see the exact minimum cost value using iterations, the command is Solve Problem

Iterations Vogel’s starting solution. Get the output.

OUTPUT:

Objective value is 470.00

It shows the total number of iteration possibilities.

RESULT:

Thus the minimize distance travelled is 470.00 is found for Assignment problem using TORA.
Exercise No. 25

NETWORKING MODELS USING TORA

Aim:
To compute the earliest start, earliest finish, latest start and latest finish of each activity of the project
and find critical path using TORA.

Activity 1-2 1-3 2-4 2-5 3-4 4-5

Duration 8 4 10 2 5 3
(in days)

Procedure:

Step 1:
Click the TORA software and run it. Click on the screen – Choose Project planning – Critical Path
Method.

Step 2:
In the screen Choose “Enter New Problem” option and click “Go to Input Screen” button displayed in
the screen.

Step 3:
Enter the Title of the program in the “Program Title” the click Enter.

Step 4:
Enter the values – From Node, To Node, Activity symbol, Duration given in the problem. (i.e) From
Node is 1, To Node is 2, Activity symbol is 1-2, and Duration is 8. Similarly enter for all the activities.

Step 5:
After entering values. Click “SOLVE Menu” Button. Then Save the program.

Step 6:
Then Click “Solve problem”, Then click “Go to Output Screen”.
Step 7:
In “Select Output option” in the pull down menu, you have to choose “CPM calculations”. (Bar chart
option for graphical representation).

Step 8:
Then Click “All steps” Tab displayed in the screen.

Step 9:
In “Select Output option”, In the pull down menu, you have to choose “CPM Bar chart”. You can
adjust the “Change Start of” and “by” options for schedule changes, it will reflect in the chart.

OUTPUT:

Forward pass completed – Earliest time 21

Earliest Start – 18
OUTPUT:

CPM Bar chart

RESULT:

Thus the Forward pass completed – Earliest time 21 and Earliest Start – 18, critical path is found
successfully using TORA.
 QUEUING THEORY USING TORA
Exercise No. 26

QUEUING MODELS – SINGLE SCENARIO

Aim:
To find Length of the system (Ls), Length of the queue (Lq), Waiting time of the system (Ws) and
Waiting time of the queue (Wq).
Example:
A self-service store employs one cashier at its counter. An average of nine customer arrives every 5
minutes while the cashier can serve 10 customers in 5 minutes. Assuming Poisson distribution for arrival rate
and exponential distribution for service rate, find.
1. Average number of customers in the system.
2. Average number of customers in the queue or average queue length.
3. Average time a customer spends in the system.
4. Average time a customer waits before served.
Procedure:

Step 1:
Click the TORA software and run it. Select the Queuing Analysis from the Main menu. Or Right click
and choose Queuing Analysis.

Note:
Arrival rate  = 9 / 5 = 1.8 Customers/minute
Service rate µ = 10 / 5 = 2 Customers/minute

Step 2:
Choose Enter a new problem. Click Go to Input Screen.

Step 3:
Give Title and enter No of scenarios and Press Enter Button.

Step 4:
Input Grid – Screen will be displayed.
 Enter Lamda = 1.8.Mu = 2 Nbr of servers = 1 System limit = infinity and Source limit = infinity

Step 5:
After the values are entered, click SOLVE Menu. It asks to save the data. Give a file name and Save
the data.

Step 6:
Now go to Output screen. In output options choose Scenario 1.

OUTPUT:

RESULT:

Length of the system (Ls) – 9, Length of the queue (Lq) – 8.10, Waiting time of the system (Ws) – 5,
Waiting time of the queue (Wq) – 4.50. Thus the problem is solved using queuing analysis using TORA.
Exercise No. 27

QUEUING MODELS – COMPARATIVE ANALYSIS

Aim:
To find Length of the system (Ls), Length of the queue (Lq), Waiting time of the system (Ws) and
Waiting time of the queue (Wq) making comparative analysis for three scenarios.
Note:

Scenario 1 –
Arrival rate  = 16 Customers/Hour
Service rate µ = 20 Customers/Hour
Scenario 2 –
Arrival rate  = 16 Customers/Hour
Service rate µ = 22 Customers/Hour
Scenario 3 –
Arrival rate  = 16 Customers/Hour
Service rate µ = 24 Customers/Hour. Compare three scenarios and choose the best scenario.

Procedure:

Step 1:
Click the TORA software and run it. Select the Queuing Analysis from the Main Menu. Or Right click
and choose Queuing Analysis.

Step 2:
Choose Enter a new problem. Click Go to Input Screen.

Step 3:
Give Title and enter No of scenarios = 3 and Press Enter Button.

Step 4:
Input Grid – Screen will be displayed.
Enter Lamda = 16 Mu = 20 Nbr of servers = 1 System limit = infinity and Source limit = infinity
Enter Lamda = 16 Mu = 22 Nbr of servers = 1 System limit = infinity and Source limit = infinity
Enter Lamda = 16 Mu = 24 Nbr of servers = 1 System limit = infinity and Source limit = infinity
Step 5:
After that values are entered. Click SOLVE Menu. It asks to save the data. Give a file name and Save
the data.

Step 6:
Now go to Output screen. In Output option choose Comparative analysis.

OUTPUT:

RESULT:

Scenario 1 Scenario 2 Scenario 3

Length of the system (Ls) 4.0 2.6 2.0
Length of the queue (Lq) 3.2 1.94 1.33
Waiting time of the system (Ws) 0.25 0.16 0.125
Waiting time of the queue (Wq) 0.20 1.21 0.083

Thus the problem is solved using queuing analysis using TORA. Scenario 3 is better in service.