Introduction To Operations Research

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Operations Research provides a quantitative technique to the executives for better decisions for operation under their control.



Developed during the World War II.



Limited military resources.



Efficient allocation of resources was required.



Large number scientists invited .



The efforts of the team helped in winning the battle.



The name “OR” directly derived from “Research on Military Operations”.



The success encouraged the scientists.



They moved to different sectors e.g., transportation, health, education, etc.



OR in India started in 1949.



Regional Research Laboratory opened in Hyderabad.

 Industry  Transportation  Banking

and Finance

 Agriculture  Defense

 Systems

Approach

 Inter-disciplinary  Methodological  Operations

Team Approach

Approach

Economy



Finance, Budgeting and Investments



Purchasing, Procurement and Exploration



Production Management



Marketing Management



Personnel Management



Research and Development



Judgement Phase i. Establishment of Objectives ii. Determination of measures iii. Formulation of Problems



Research Phase i. Data Collection ii. Model formulation iii. Analysis and Predictions



Action Phase i. Making Recommendations



Better planning



Flexibility in operations



Better co-ordination



Better decisions



Better systems



Analytic Or Deductive Method



Numerical Or Iterative Method



Monte Carlo Method

PROBLEM FORMULTION

ISOLATION OF MANAGEME NT PROBLEM

REAL WORLD

PROBLEM FORMULATION

ISOLATION OF MANAGEME NT PROBLEM

REAL WORLD

MODEL BUILDING

QUALITATIVE MODEL

QUANTATIVE MODEL MODEL REFINEMENT

PROBLEM FORMULATION

ISOLATION OF MANAGEME NT PROBLEM

SYSTEM REAL WORLD

MODEL TESTING

MODEL BUILDING

QUALITATIVE MODEL

QUANTATIVE MODEL

TESTING

MODEL REFINEMENT DATA COLLE CTION

PROBLEM FORMULATION

ISOLATION OF MANAGEME NT PROBLEM

SYSTEM REAL WORLD

MODEL BUILDING

QUALITATIVE MODEL

MODEL TESTING

ESTABLISH -ING CONTROLS

TESTING

CONCLUS -IONS & IMPLEMEN TATION

QUANTATIVE MODEL MODEL REFINEMENT

DATA COLLE CTION



Linear Programming



Decision Models



Integer Programming



Dynamic Programming



Stochastic Programming



Magnitude of computation



Absence of quantification



Conventional thinking



Money and time costs



Implementation

 The

analysis of problems

 Linear

function of a number of

variables is to be maximized or minimized  Variables

are subject to a number of

restraints in the form of linear inequalities.

 Proportionality  Certainty  Additivity  Divisibility  Non-negativity

General form of a LPP Optimize (Maximize or Minimize) Z=c1x1+c2x2……cnxn

Subject to linear constraints a11x1+a12x2+…….a1nxn(<,=,>)b1 a21x1+a22x2+…….a2nxn(<,=,>)b2 . .

. .

. .

am1x1+am2x2+…….amnxn(<,=,>)bm

And x1,x2,x3……….xn >0

General form of a LPP Optimize (Maximize or Minimize) Z=c1x1+c2x2……cnxn

Subject to linear constraints a11x1+a12x2+…….a1nxn(<,=,>)b1 a21x1+a22x2+…….a2nxn(<,=,>)b2 . .

. .

. .

am1x1+am2x2+…….amnxn(<,=,>)bm

And x1,x2,x3……….xn >0

OBJECTIVE FUNCTION

General form of a LPP Optimize (Maximize or Minimize) Z=c1x1+c2x2……cnxn

Subject to linear constraints a11x1+a12x2+…….a1nxn(<,=,>)b1 a21x1+a22x2+…….a2nxn(<,=,>)b2 . .

. .

OBJECTIVE FUNCTION

. .

am1x1+am2x2+…….amnxn(<,=,>)bm

And x1,x2,x3……….xn >0

CONSTRAINTS

General form of a LPP Optimize (Maximize or Minimize) Z=c1x1+c2x2……cnxn

Subject to linear constraints a11x1+a12x2+…….a1nxn(<,=,>)b1 a21x1+a22x2+…….a2nxn(<,=,>)b2 . .

. .

OBJECTIVE FUNCTION

. .

am1x1+am2x2+…….amnxn(<,=,>)bm

And x1,x2,x3……….xn >0

CONSTRAINTS

NON-NEGATIVE RESTRICTIONS

Two Phase Procedure

Phase I 5. Verbalize

the problem and its structure. 6. Determine Overall Structure. 7. Determine restricting factors.

Phase II Define Decision Variables. Identify contribution coefficients(cj’s) associated with each variable Formulate the objective function. Identify physical rate of substitution coefficients(ai j’s). Identify the available resources (bi’s). Maintain non-negativity condition.

DECISION VARIABLE

ARTICLE

HOURS ON MACHINE

HOURS ON CRAFTSMA N

PROFIT PER UNIT

X1

A

1.5

2

Rs. 50

X2

B

2.5

1.5

Rs.40

80 Maximum

70 Maximum

Hours Available (per week)



Objective Function Maximize Z=50x1 + 40x2



Constraints Time for article A + Time for article B < Available time on M/c For Machine1.5x1 + 2.5x2 <80

For Craftsman2x1 + 1.5x2<70 

Non-Negativity Constraints x1,x2 >0

DIET

DECISION VARIABLE

TIME FOR ARRANGIN G RAW MATERIALS

TIME FOR COOKING

PROFIT PER UNIT

Rice

x1

5 min.

10 min.

Rs. 2

Chapati

x2

15 min.

15 min.

Rs. 5

120 min.

60 min.

Minutes available per week

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