Operations Research-1

ST-5504

Name of faculty : Dr. Pravida Raja

E-mail: [email protected]
Session 1
24/06/2021

INTRODUCTION TO THE COURSE

• CORE Paper: Operations Research – I Course Code: ST5504

• No. of Credits: 04

• Unit: 1 Operations Research models and Linear

Programming Problem
• Introduction of Operation Research
• Modelling in Operation Research
• General Methods for solving Operation Research Models
• Advantages of Operation Research study
• Introduction and Structure of LPP Model
• Advantages and Limitations of using Linear Programming
• General Mathematical Model of LPP
• Examples of LP Model formulation
• Introduction and Important definitions of Graphical Method
• LPP Solution using Graphical Method
• Unit: 2 Simplex Methods
• Introduction
• Standard form of an LP problem
• Simplex Algorithm (Maximization case)
• Simplex Algorithm (Minimization case)
• Big – M method
• Two Phase method
• Unit: 3 Duality
• Concept of Duality
• Formulation of primal-dual pairs
• Duality Theorems
• Dual Simplex Algorithm
• Sensitivity Analysis-Change in Objective function
coefficient
• Sensitivity Analysis-Change in Availability of resources
• Unit: 4 Transportation Problems and Assignment
Problems
• Introduction
• General Mathematical Model of TP
• The Transportation Algorithm (without proof)
• Methods of finding Initial solution
• North West Corner Rule
• Least Cost Method
• Vogel’s Approximation Method
• MODI method of finding Optimum solution
• Variations in TP
– Unbalanced Supply and Demand
– Degeneracy and its Resolution
– Prohibited Transportation Routes
– Maximization case in Transportation Problem
• Mathematical Model of Assignment Problem
• Optimum Solution of AP by Hungarian method
• Variations in AP
– Multiple Optimal Solutions
– Maximization case
– Unbalanced AP
– Prohibited AP
References
 Operations research : A Quantitative
Perspective to Decision Making
• Decision making has become complex task today.
• Operations Rsearch is the scientific approach to decision
making. Decision maker should consider both qualitative
and quantitative factors while solving a problem.
• High cost of technology, materials, labour, competitive
pressures and many social and economic factors increases
the complexity of managerial decision making.
• Cannot afford to make decisions based on someone’s
personal experiences, guesswork or intuition because
wrong decision can prove to be serious and costly.
• Eg.: Entering the wrong markets, producing wrong
products, providing inappropriate services etc.
 History of Operations Research

• OR came to existence as a discipline during World War II when

there was a critical need to manage scarce resources.
• Since the world war II involved strategic and tactical problems
that were highly complicated, to expect adequate solutions
from individuals or specialists in a single discipline was
unrealistic. Thus group of individuals were formed as special
units within the armed forces in order to deal with the
problems of various military operations.
• Such groups were first formed by British Air Force.
• The term Operations Research was coined as a result of
conducting research on military operations during World War
II.
 History of Operations Research
• After World War II, scientists who had been active in the military OR
groups made efforts to apply the operations research approach to
civilian problems related to business, industry, research etc.
• During the 1950, there was substantial progress in the application
of OR techniques for civilian problems along with the professional
development.
• Today service organizations such as banks, hospital, airlines,
railways etc. all realize the usefulness of OR in improving the
efficiency.
• Operation Research is also being used in Railway, waiting or
queueing problems of passengers for tickets at booking windows or
trains queueing up in marshalling yard, waiting to be sorted out are
tackled by various Operation Research techniques.
• A key person in the post- war development of OR was due to
George B Dantzig
 History of Operations Research- India

• In India, OR came into existence in 1949 when an OR unit was established at

Regional Research Laboratory, Hyderabad for planning and organizing
research.
• Prof. R.S. Verma (during 1950’s) set up an OR team at Defence Science
Laboratory) for solving problems of store, purchase and planning.
• In 1953, Prof. P.C. Mahalanobis established an Operation Research team in the
Indian Statistical Institute, Calcutta to solve problems related to national
planning and survey.
• In 1958, project scheduling techniques: PERT (Program Evaluation and Review
Technique) and CPM (Critical Path Method) were developed as efficient tools
for scheduling and monitoring lengthy, complex and expensive projects of that
time.
• The real development of Operation Research in the national field was carried
out by Prof. Mahalanobis in India when he used it in national planning.
• OR Society of India (ORSI) was founded in 1957 and started publishing its
journal OPSEARCH 1964 onwards.
• Considering OR’s multi-disciplinary approach and its application in various
fields, it has a bright future.
 Definitions of OR
• Operations Research is the application of methods of science to
complex problems in the direction and management of large
systems of men, machines, materials and money in Industry,
business, Government and defence. The distinctive approach is to
develop a scientific model of the system incorporating
measurements of factors such as chance and risk, with which to
predict and compare the outcomes of alternative decisions,
strategies or controls. The purpose is to help management in
determining its policy and actions scientifically.
-Operations Research Society, UK
• The application of scientific method to the study of operations of
large complex organizations or activities. It provides top level
administrators with a quantitative basis for decisions that will
increase the effectiveness of such organizations in carrying out their
basic purposes.
-Committee on OR National Research Council, USA
 Definitions of OR
• This new decision making field has been characterized by the
use of scientific knowledge through interdisciplinary team
effort for the purpose of determining the best utilization of
limited resources.
- H.A. Taha ,1976
• Operations Research is the systematic application of
quantitative methods, techniques and tools to the analysis of
problem involving the operation of system
- Daellenbach and George, 1978
• OR is concerned with scientifically deciding how to best
design and operate man-machine systems that usually require
the allocation of scare resources.