1

Historical Background of Operations Research

1. Introduction

Operations Research (OR) is a discipline that uses advanced analytical

methods to help make better decisions. It emerged as a field during World
War II and has developed into a broad area of study with applications in
various sectors including business, engineering, logistics, and public
services.

2. Origins and Early Developments

a. Pre-World War II Developments

 Ancient and Classical Optimization: Early forms of optimization

can be traced back to ancient civilizations. For instance, Greek
mathematicians like Euclid and Archimedes developed principles
that laid the groundwork for optimization and problem-solving.
 19th Century Developments: In the 19th century, mathematical
techniques were developed that would later influence OR. For
instance, calculus and linear algebra were essential for optimization
problems.

b. World War II Era

 Military Necessities: The term "Operations Research" originated

during World War II when military operations required efficient
resource management. The focus was on improving the
effectiveness of military strategies, logistics, and supply chains.
 Formation of OR Groups: The British were among the first to
formally use OR techniques, setting up teams to optimize radar
systems, logistics, and other operations.

3. Post-War Expansion

a. Establishment as a Field

 Academic Recognition: After World War II, OR gained

recognition as an academic discipline. The establishment of the OR

2
 Society in the UK and the Operations Research Society of America
formalized the field.
 Foundational Techniques: The post-war period saw the
development of key OR techniques such as linear programming
(introduced by George Dantzig), integer programming, and
queuing theory.

b. Growth and Applications

 Industrial Applications: OR techniques were rapidly adopted by

industries beyond the military, including transportation,
manufacturing, and finance. For example, airlines used OR for
optimizing flight schedules and route planning.
 Computing Advances: The rise of computers in the 1950s and
1960s significantly advanced OR by enabling more complex and
larger-scale problems to be solved.

4. Modern Developments

a. Diversification and Specialization

 Algorithmic Advances: The development of algorithms such as

the simplex method for linear programming, and later, more
sophisticated algorithms for non-linear programming and
stochastic processes, expanded the capabilities of OR.
 Interdisciplinary Approaches: OR increasingly incorporates
techniques from other fields such as economics, statistics, and
computer science, leading to subfields like data science and
artificial intelligence.

3
Introduction to Linear Programming
1. Introduction
Linear Programming (LP) is a mathematical method used to determine
the best possible outcome in a given mathematical model. It involves
optimizing a linear objective function subject to a set of linear constraints.
2. Basics of Linear Programming
a. Definition
 Objective Function: A linear function that needs to be maximized
or minimized. It is usually written as c 1x1+c2x2+⋯+cnxn, where ci
are coefficients and xi are decision variables.
b. Constraints: Linear inequalities or equations that restrict the values of
the decision variables. They are typically written in the form aijxj ≤ bi or
aij xj = bi where aij and bi are constants. Feasibility
 Feasible Region: The set of all possible values for the decision
variables xi that satisfy the constraints.
c. Optimal Solution
 Objective: The goal is to find the values of the decision variables
that maximize or minimize the objective function while staying
within the feasible region.

4
 Graphical Solution for Linear Programming Problems

Introduction

Graphical Solution of Linear Programming Problems

Introduction

Linear programming (LP) is a mathematical method used to

determine the best possible outcome in a given mathematical
model with linear relationships. The graphical method is a
technique used to solve LP problems involving two variables by
visualizing the feasible region and finding the optimal solution
through graphical representation.

Key Concepts

1. Linear Programming Problem (LPP)

A typical linear programming problem involves:

 Objective Function:

A linear function to be maximized or minimized.

 Constraints:

Linear inequalities that define the feasible region.

 Non-negativity Constraints: Variables must be greater

than or equal to zero.

2. Feasible Region

The feasible region is the set of all points (x 1, x2) that satisfy all
constraints,

3. Objective Function

The goal is to find the point within the feasible region that
maximizes (or minimizes) the objective function Z.

5
Steps in solving an LP problem graphically
Step 1. Formulate the LP problem. Formulation refers to translating
the real-world problem into a format of mathematical equations
that represent the objective function and the constraint set.
Step 2. Construct a graph and plot the constraint lines. Constraint lines
represent the limitations on available resources. Usually,
constraint lines are drawn by connecting the horizontal and
vertical intercepts found from each constraint equation.
Step 3. Determine the valid side of each constraint line. The simplest
way to start is to plug in the coordinates of the origin (0,0) and see
whether this point satisfies the constraint.
If it does, then all points on the origin side of the line are feasible
(valid), and all points on the other side of the line are infeasible
(invalid). If (0,0) does not satisfy the constraint, then all points on
the other side and away from the origin are feasible (valid), and
all points on the origin side of the constraint line are infeasible
(invalid).

Step 4. Identify the feasible solution region. The feasible solution

region represents the area on the graph that is valid for all
constraints. Choosing any point in this area will result in a valid
solution.
Step 5. Plot two objective function lines to determine the direction of
improvement. Improvement is in the direction of greater value
when the objective is to maximize the objective function, and is
in the direction of lesser value when the objective is to minimize
the objective function. The objective function lines do not have
to include any of the feasible region to determine the desirable
direction to move.
Step 6. Find the most attractive corner. Optimal solutions always
occur at corners. The most attractive corner is the last point in
the feasible solution region touched by a line that is parallel to
the two objective function lines drawn in step 5 above. When
more than one corner corresponds to an optimal solution, each

6
corner and all points along the line connecting the corners
correspond to optimal solutions. We’ll use an example to
illustrate optimal solutions later.
Step 7. Determine the optimal solution by algebraically
calculating coordinates of the most attractive corner.

Step 8. Determine the value of the objective function for the

optimal solution.

7
 Example:
Let’s look at the profit maximization problem that our furniture
manufacturer faces. The company uses wood and labor to
produce tables and chairs. Recall that unit profit for tables is
$6, and unit profit for chairs is $8. There are 300 board feet (bf)
of wood available, and 110 hours of labor available. It takes 30
bf and 5 hours to make a table, and 20 bf and 10 hours to make
a chair. Table 1 contains the information for the LP problem.
We will go through the step-by-step process of solving this
problem graphically.
Table 1. —Information for the wooden tables and chairs
linear programming problem.

Available Chair (X2) Table (X1) Resource

300 20 30 Wood (bf)

110 10 5 Labor (hr)

8 6 Unit profit

Step 1. Formulate the LP problem.

.
Maximize: Z = 6X1 + 8X2 (objective function)

Subject to: 30X1 + 20X2 < 300 (wood constraint: 300 bf

available)
5X1 + 10X2 < 110 (labor constraint: 110 hours
available)
X1, X2 > 0 (nonnegativity conditions)

8
 Since only two variables (wood and labor) exist in this
problem, it can be solved graphically.

Step 2. Construct the graph and plot constraint lines.

Draw the graph with the x axis representing the number of tables and the
y axis representing the number of chairs. Plot the two constraint lines by
finding the x and y intercepts for the two constraint equations in the
following manner.
First, rewrite the constraint inequalities as equalities and solve to
obtain the intercepts:
Wood Labor
30X1 + 20X2 = 300 5X1 + 10X2 = 110

Set X2 = 0 and solve for X1 Set X2 = 0 and solve for

X1

30X1 = 300 5X1 = 110

X1 = 300/30 X1 = 110/5

X1 = 10 tables X1= 22 tables

Next:
Set X1 = 0 and solve for X2 Set X1 = 0 and solve for
X2

20X2 = 300 10X2 = 110

X2 = 300/20 X2 = 110/10

X2= 15 chairs X2= 11 chairs

(10,15) (22,11)
Chairs

9
 Figure 1. —Wood and labor constraint lines.

Now plot the wood constraint line, using the intercepts X1 = 10 and
X2 = 15. Plot the labor constraint line, using the intercepts X1 = 22
and X2 = 11. See Figure 1.
Step 3. Determine the valid side of each constraint line.
We will use the origin (0,0) to check the valid side for both constraint lines.
30(0) + 20(0) < 300 is valid, so we know the side toward the origin (0,0) is the valid
side of the wood constraint line.
5(0) + 10(0) < 110 also is valid, so we know the side toward the origin (0,0) is the
valid side of the labor constraint line.
We can draw arrows indicating the valid side of each constraint line. See Figure 2.

We could have chosen any point to test for the valid side of the line. For example,
setting X1 = 20 and X2 = 10 (clearly on the other side, away from the origin) for the
wood constraint line, we get
30(20) + 20(10) < 300, which is not valid. In other words, there
simply isn’t enough wood to make 20 tables and 10 chairs.

10
 Chairs

Wood

Figure 2. —Identification of the feasible region.

Step 4. Identify the feasible region.

The feasible region is the area on the valid side of both constraint
lines. Any point located on the invalid side of a constraint line is
infeasible. Because of the nonnegativity conditions, the feasible
region is restricted to the positive quadrant. See Figure 2.
Step 5. Plot two objective function lines to determine the direction of
improvement.
: Z = 6X1 + 8X2

First, we’ll arbitrarily set profit, Z = 48, and then set profit, Z = 72.
We’ll find the x and y intercepts when Z = 48 and when Z = 72,
and plot the two lines.
Set Z = 48 Set Z = 72
Set X2 = 0 and solve for X1 Set X2 = 0 and solve for X1

48 = 6(X1) 72 = 6(X1)

48/6 = X1 72/6 = X1

X1 = 8 X1 = 12

Next:

11
 Set X1 = 0 and solve for X2 Set X1 = 0 and solve for X2

48 = 8(X2) 72 = 8(X2)

48/8 = X2 72/8 = X2

X2 = 6 X2 = 9

Now plot
Chairs
the objective
Wood
function
lines when Z
= 48 and Z =
72. See
Figure 3.

We can see from the two objective function lines that as we move
away from the origin (0,0),
Z increases.

Figure 3. —Determining direction of increasing value.

Chairs

Wood

Figure 4. Locating the most attractive corner.

Step 6. Find the most attractive corner.

Since we want to maximize Z, we will draw a line parallel to the

objective function lines that touches the last point in the feasible

12
 region while moving away from the origin.

This identifies the most attractive corner, which gives us the

amounts of wood and labor that will result in the maximum profit
(maximize Z). Thus, it represents the optimal solution to the
problem (Figure 4).
Step 7. Determine the optimal solution by algebraically calculating
coordinates of the most attractive corner.

The most attractive corner lies at the intersection of the wood and
labor constraint lines. Therefore, coordinates for the most attractive
corner can be found by simultaneously solving the constraint
equations (wood and labor):
30X1 + 20X2 = 300 (wood)

5X1 + 10X2 = 110 (labor)

To do so, multiply the labor equation by -2 and add it to the wood

equation so the X2 variable becomes zero and we can solve for X1.
30X1 + 20X2 = 300 (wood)

-2(5X1 + 10X2 = 110)

(labor)
20X1 + 0 = 80

X1 = 4 tables

Next, substitute the number of tables calculated above into either of

the constraint equations to find the number of chairs. For this
example, we will substitute into both equations to illustrate that the
same value is found.
Wood constraint Labor constraint
30(4) + 20X2 = 300 5(4) + 10X2 = 110

120 + 20X2 = 300 20 + 10X2 = 110

20X2 = 300 - 120 10X2 = 110 - 20

13
 20X2 = 180 10X2 = 90

X2 = 180/20 X2 = 90/10

X2 = 9 chairs X2 = 9 chairs

Thus, the company’s optimal solution is to make four tables and

nine chairs. In this case, you could read this solution off the graph
(Figure 4) by finding the values on the x and y axes corresponding
to the most attractive corner. However, when the most attractive
corner corresponds to an optimal solution with fractions, it is not
possible to read directly from the graph. For example, the optimal
solution to this problem might have been 3.8 tables and 9.2 chairs,
which we probably would not be able to read accurately from the
graph.

Step 8. Determine the value of the objective function for the optimal
solution.
Z = 6X1 + 8X2

Plug in the number of tables and chairs and solve for Z:

Z = 6(4) + 8(9) = $96

Thus, we find that maximum profit of $96 can be obtained by

producing four tables and nine chairs.

Example :

Maximize Z=3x1+2x2

S.t

x1+x2 ≤ 4

2x1+x2 ≤ 5

x1, x2 ≥ 0
14
Sol

1. Graph the Constraints:

 For x1+x2=4: Intercepts: (4,0) and 0,4)
 For 2x1+x2=5: Intercepts: (2.5,0) and (0,5)
o Plot these lines and shade the feasible region.
2. Identify Intersection Points:

Solve:

x1+x2=4

2x1+x2=5

Subtract the first equation from the second:

(2x1+x2) − (x1+x2) =5−4

x1=1

Substitute

x1=1 into x1+x2=4

1+x2=4

x2=3

Intersection point is (1,3).

3. Evaluate Objective Function:

o At (0,0): Z=3(0) + 2(0)
o At (4,0): Z=3(4) + 2(0) =12
o At (0,4): Z=3(0) +2(4) = 8
o At (1,3): Z=3(1)+2(3)=3+6=9

Maximum value of Z is 12 at (4,0).

15
 Example 2:

Minimize Z=4x1+3x2

S.t

2x1+x2 ≤6

x1+2x2 ≤8

x1,x2≥0

Solution

1. Graph the Constraints:

o For 2x1+x2=6:
 Intercepts: (3,0) and (0,6)
o For x1+2x2=8:
 Intercepts: (8,0) and (0,4)
o Shade the region that satisfies

2x1+x2≤ 6 and 7

6
x1+2x2≤ 8. 5 1C
4
2. Identify Intersection
3
Points:
2
aeF -
1 elbis 2C
Solve:
0 aerA
0 1 2 3 4 5 6 7 8 9
2x1+x2=6 ……. eq (1)

x1+2x2=8 ……. eq(2)

Subtract the second equation from the first:

(2x1+x2) −(x1+2x2) =6−8

x1−x2 = −2

x1 = −2+x2

16
x1= x2 −2

Substitute x1 = x2−2

Into eq (1) 2x1+x2=6:

2(x2−2) +x2= 6

2x2−4+x2=6

2x2 - 4 + x2 = 6

3x2= 10

x2=10/3 ≈3.33 then substitute x2 in eq (1) to find x1

x1=10/3−2= 4/3 ≈1.33

Intersection point is (4/3,10/3)

Evaluate Objective Function:

o At (0,0): Z=4(0) +3(0) =0

o At (3,0): Z=4(3) +3(0) =12
o At (0,4): Z=4(0) +3(4) =12
o At (4/3,10/3): Z=4(4/3) +3(10/3) =16/3+30/3=46/3≈15.33

Minimum value of Z is 12 at (3,0) and (0,4).

17
Example 3:
Maximize Z= x1 +2x2
Subject to:
- x1 + 3x2 ≤ 10
x1 + x2 ≤ 6
x1 - x2 ≤ 2
x1 + 3x2 ≥ 6
x1, x2≥0
Solution
1. Plot the Constraints:
C1:
If X1=0 then X2=10/3 ………… (0,10/3)
If X2=0 then X1=10 ………… (10,0)
The point (-10, 10/3)
C2:
If X1=0 then X2=6 ………… (0,6)
If X2=0 then X1=6 ………… (6,0)
The point (6,6)
C3:
If X1=0 then X2= -2 ………… (0, -2)
If X2=0 then X1= 2 ………… (2,0)
The point (2, -2)
C4:
If X1=0 then X2= 2 ………… (0, 2)
If X2=0 then X1= ………… (6,0)
The point (6, 2)

18
 plot the lines in the graph and find the intersection points:
oC 1: (-10, 10/3)
o C2: (6,6)
o C3: (2, -2)
o C4: (6,2)
7.00

6.00

5.00 C2
B
4.00
A
3.00
C
C1 2.00
E
1.00 D
C4
0.00
-12 -10 -8 -6 -4 -2 0 C3 2 4 6 8
-1.00

-2.00

-3.00

0 X1 A
3.333 X2
6.666 Z

OBJ.
Z= X1+2X2 Fun,
2 X1 10 <= 3 -1 C1 B
4 X2 6 <= 1 1 C2
10 Z

19
 OBJ.
Z= 3X1+2X2 Fun,
4 X1 6 <= 1 1 C2 C
2 X2 2 <= -1 1 C3
8 Z

OBJ.
Z= 3X1+2X2 Fun,
3 X1 2 <= -1 1 C3 D
1 X2 6 <= 3 1 C4
5 Z

0 X1 E
2 X2
4 Z

2. Choose the Optimal Value:

o The maximum value of Z is 10 at the point (3, 2).

Additional Notes
 Limitations: The graphical method is limited to problems with two
variables. For larger problems, consider using computational
methods.

20
 SIMPLEX METHOD
The Simplex Method is a popular algorithm used for solving linear programming (LP)
problems. LP problems involve optimizing a linear objective function subject to linear
equality and inequality constraints. The Simplex Method iterates through feasible
solutions to find the optimal solution efficiently.

1. Simplex Method Basics

1.1 Feasible Solution: A feasible solution satisfies all constraints of the LP problem.
In the Simplex Method, the solution must be at a vertex (or corner point) of the
feasible region defined by the constraints.

1.2 Basic and Non-basic Variables: In the Simplex Method, variables are
categorized as:

 Basic Variables: Variables that are currently included in the solution.

 Non-basic Variables: Variables that are not included in the solution (typically
set to zero).

1.3 Basic Feasible Solution (BFS): A BFS is a solution where the number of basic
variables equals the number of constraints, and all constraints are satisfied. In this
context, BFS corresponds to a vertex of the feasible region.

2. Steps in the Simplex Method

2.1 Initialization:

1. Convert the LP problem into standard form.

2. Construct the initial Simplex tableau by setting up the equations with basic
variables.

2.2 Iterative Process:

1. Identify the entering variable: Choose the non-basic variable that will
increase the objective function most (in the case of maximization).
2. Determine the leaving variable: Calculate the ratio of the right-hand side to
the coefficients of the entering variable. The smallest non-negative ratio
determines which basic variable will leave the basis.
3. Pivot: Update the Simplex tableau by performing row operations to make the
entering variable a basic variable and the leaving variable a non-basic variable.
4. Repeat: Continue the process of entering and leaving variables until there are
no further improvements possible in the objective function (i.e., all

21
 coefficients in the objective function row are non-positive for maximization
problems).

2.3 Termination: The algorithm terminates when no more positive coefficients

remain in the objective function row (in maximization problems). The solution at this
point is optimal.

Example

Use the simplex method to find the optimal solution for the following Linear
programming problem

Max X0= 4x1 +3 x2

S.T
2x1 +3 x2 ≤ 6
- 3x1 +2 x2 ≤ 3
2 x2 ≤ 5
2x1 + x2 ≤ 4
x1, x2 ≥ 0
Solution:
Put the problem in the standard form
Max X0 - 4x1 - 3 x2 =0 First Iteration: Entering variable

S.T B.V C.V X1 X2

2x1 +3 x2 + S1 = 6 S1 6 2 3
- 3x1 +2 x2 + S2 = 3 S2 3 -3 2
2 x2 + S3 = 5 S3 5 0 2
2x1 + x2 + S4 = 4 S4 4 2 1
x1, x2 ≥ 0 , s1, s2,s3, s4 ≥ 0 X0 0 -4 -3

Leaving variable
 Determine the Entering variable:
o If the problem is maximization select the variable that
correspond to the most negative (the minimum value)
in the objective function.

22
 o If the problem is minimization select the variable that
correspond to the most Positive (the Maximum value)
in the objective function.
Therefore, X1 will be the Entering variable
 Determine the Leaving variable:
o Divide the values in the (C.V) by the corresponding
values in the variable which selected as an entering
variable.
o Exclude division by zero and negative value .
o Select the minimum division result which is (2)
therefore the pivot will be (2)
o Determine the entering and leaving variables
 Second iteration
* For the pivot column divide by –
B.V C.V S4 X2 ve pivot value.
* S1 2 -1 2 For the pivot row divide by the
S2 9 3/2 7/2 pivot value
* For the raise value use the
S3 5 0 2
corners method.
X1 2 1/2 1/2 Pivot
X0 8 2 -1 X2: Entering
vb.
S1: Leaving vb.

Third Iteration: Repeat the same steps in iteration one:

B.V C.V S4 S1 The optimal solution:
X2 1 -1/2 1/2 X1 = 3/2
S2 11/2 13/4 -7/4 X2 = 1
S3 3 1 -1 X0 = 9
X1 3/2 3/4 -1/4
X0 9 3/2 1/2

23
 Example (2)
Consider the following linear programming problem, use the
simplex method to find the optimal sol.
Max Z= 3x1 +2 x2
S.T
-x1 +2 x2 ≤ 4
3x1 + 2 x2 ≤ 14
x1 - x2 ≤ 3
x1, x2 ≥ 0
Solution :
Put the problem in the standard form

Max Z - 3x1 - 2 x2 = 0

S.T
-x1 +2 x2 + S1 = 4
3x1 + 2 x2 + S2 = 14
x1 - x2 + S3 = 3
x1, x2 ≥ 0 , s1, s2,s3 ≥ 0
Iteration (1)
B.V C.V X1 X2
S1 4 -1 2
S2 14 3 2
S3 3 1 -1
Z 0 -3 -2

Iteration (2)
B.V C.V S3 X2
S1 7 1 1
S2 5 -3 5
X1 3 1 -1
Z 9 3 -5

24
Iteration (3)
B.V C.V S3 S2
S1 6 8/5 -1/5
X2 1 -3/5 -1
X1 4 2/5 1/5
Z 14 0 1

So the optimal solution

X1 =4
X2 = 1
Z = 14

25
 MINIMIZATION PROBLEMS
Example (2)
Consider the following linear programming problem, use the
simplex method to find the optimal sol.

Min Z= -2x1 +3x2

S.T
x1 ≤ 6
x2 ≤ 10

x1, x2 ≥ 0
Solution:
Put the problem in the standard form
Min Z+ 2x1 -3x2 = 0
S.T
x1 +S1= 6
x2 +S2 = 10

x1, x2 , S1, S2 ≥ 0
B.V C.V X1 X2
S1 6 1 0
S2 10 0 1
Z 0 2 -3

B.V C.V S1 X2
X1 6 1 0
S2 10 0 1
Z -12 -2 -3

The optimal solution:

X2 = 0
Z = -12
26
 Assignment (1):
Operations Research (1) – Stat 1203
Name ………………………………………………………………….
St. Number: ………………………………………………………………

Min Z = 5x1 - 4x2 +6 x3 +8 x4

S.t
x1 +7x2 + 3x3 +7x4 ≤ 46
3x1 - x2 + x3 + 2x4 ≤ 8
2x1 +3x2 - x3 + x4 ≤ 10
x1, x2 , x3, x4 ≥ 0

27
 Dual Problem
Dual Problem in Optimization
1. Introduction to Duality
 Definition: In optimization, every primal problem can be
associated with a dual problem. The dual provides a different
perspective on the same problem.
 Purpose: Analyzing the dual can offer insights into the primal
problem, facilitate computation, and establish bounds on the
solution.
2. Advantages of Duality
 Simplification: The dual may be easier to solve than the primal.
 Sensitivity Analysis: The dual provides information on how
changes in constraints affect the optimal solution.
3. Applications
 Linear Programming: Duality is a cornerstone of linear
programming, used in both theoretical and computational aspects.
 Economics: Dual variables can represent prices or shadow costs
associated with resources.
4. Conclusion
 Understanding dual problems enhances the ability to solve
optimization issues and provides deeper insights into the
relationships between constraints and objectives.

28
Example :
Find the dual problem for the below LPP
Min Z = 5x1 -4x2 +6x3 +8x4
S.t
x1 +7x2 + 3x3 +7x4 ≤ 46
3x1 - x2 + x3 + 2x4 ≤ 8
2x1 +3x2 - x3 + x4 ≤ 10

x1, x2 , x3, x4 ≥ 0
Solution :
Max Y0 = 46y1 +8y2 +10y3
S.t
y1 +3y2 + 2y3 ≥ 5
7y1 - y2 + 3y3 ≥ - 4
3y1 +y2 - y3 ≥ 6
7y1 +2y2 + y3 ≥ 8

y1 , y2 , y3 ≥ 0

29
 Example (2)
Consider the following linear programming problem, use the
simplex method to find the optimal solution of the dual problem

Min Z= -2x1 +3x2

S.T
x1 ≤ 6
x2 ≤ 10

x1, x2 ≥ 0
Solution:
Put the problem in the standard form
Min Z+ 2x1 -3x2 = 0
S.T
x1 +S1= 6
x2 +S2 = 10

x1, x2 , S1, S2 ≥ 0
B.V C.V X1 X2
S1 6 1 0
S2 10 0 1
Z 0 2 -3

B.V C.V S1 X2
X1 6 1 0
S2 10 0 1
Z -12 -2 -3
The optimal solution of the dual problem is :
S1 --------- Y1 = -2
S2---------- Y2 = 0
Z ----------Y0 = -12

30