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Explain What Operation Research Is

Operation Research (OR) is a scientific decision-making approach that utilizes mathematical models, statistics, and algorithms to optimize processes and improve efficiency. It follows a structured technique involving problem definition, data collection, model development, solution derivation, validation, implementation, and feedback. Key applications include resource allocation, supply chain management, and transportation optimization.

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25 views15 pages

Explain What Operation Research Is

Operation Research (OR) is a scientific decision-making approach that utilizes mathematical models, statistics, and algorithms to optimize processes and improve efficiency. It follows a structured technique involving problem definition, data collection, model development, solution derivation, validation, implementation, and feedback. Key applications include resource allocation, supply chain management, and transportation optimization.

Uploaded by

zaincreative14
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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1. Explain what Operation Research is.

Definition:

Operation Research (OR) is a scientific approach to decision-making.

It uses mathematical models, statistics, and algorithms to solve problems and optimize

processes.

The goal is to improve efficiency and achieve the best possible outcomes.

Key Features:

1. Interdisciplinary: Combines mathematics, engineering, and economics.

2. Problem-Oriented: Focuses on specific business or operational problems.

3. Quantitative: Uses numerical data to provide solutions.


4. Optimization: Finds the best solution among alternatives.

Applications:

1. Resource Allocation: Assigning limited resources efficiently (e.g., manpower,

machines).

2. Supply Chain Management: Optimizing logistics and inventory.

3. Scheduling: Timetabling for industries or education.

4. Transportation: Route optimization for cost reduction.

5. Finance: Portfolio selection and risk management.


Importance:

1. Enhances decision-making.

2. Reduces costs and improves productivity.

3. Provides better predictions through models.

4. Helps organizations adapt to dynamic environments.

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2. Describe the stages of Operations Research's scientific technique.

Introduction:
Operations Research follows a structured, scientific process to solve complex problems

systematically.

Stages:

1. Problem Definition:

Identify and understand the problem clearly.

Define objectives and constraints.

Example: Reducing transportation costs in logistics.

2. Data Collection:

Gather relevant data for analysis.

Includes costs, time, resources, and market trends.


3. Model Development:

Build a mathematical or simulation model of the problem.

Example: Linear programming for cost minimization.

4. Solution Derivation:

Solve the model using appropriate methods or algorithms.

Methods include simplex method, dynamic programming, etc.

5. Validation and Testing:

Verify if the solution works under real-world conditions.

Adjust the model if needed.


6. Implementation:

Apply the solution in real-world scenarios.

Monitor and refine the solution over time.

7. Feedback and Control:

Analyze outcomes and check if objectives are met.

Make adjustments for continuous improvement.

Benefits of Following These Stages:

1. Reduces risks in decision-making.


2. Ensures solutions are practical and efficient.

3. Provides clarity and structure to problem-solving.

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3. Linear programming: What is it? What are the main presumptions and

limitations?

Definition:

Linear programming (LP) is a mathematical method used to find the optimal solution for

a problem under given constraints.

It deals with maximizing or minimizing a linear objective function.

Key Components:
1. Objective Function: The goal (e.g., maximize profit, minimize cost).

2. Decision Variables: The unknowns to solve for (e.g., production levels).

3. Constraints: The limitations (e.g., resource availability).

Presumptions:

1. Linearity: Relationships between variables are linear.

2. Certainty: All data and parameters are known and constant.

3. Additivity: Total outcomes are the sum of individual contributions.

4. Non-Negativity: Decision variables cannot be negative.


Limitations:

1. Simplicity: Cannot handle complex, non-linear problems.

2. Certainty Assumption: Unrealistic in dynamic environments.

3. Limited Scope: Only works for problems with clear constraints.

4. Computational Limitations: Large-scale problems may require significant

computational power.

Applications:

1. Product mix optimization.


2. Resource allocation in manufacturing.

3. Logistics and supply chain optimization.

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4. What is duality in LPP? Explain its applications.

Definition:

Duality in Linear Programming is a concept where every linear programming problem

(called the primal) has a corresponding problem (called the dual).

The solution of the dual problem provides insights into the solution of the primal

problem.

Key Points:
1. Primal and Dual Relationship:

If the primal problem seeks to maximize, the dual seeks to minimize.

Constraints in the primal become variables in the dual and vice versa.

2. Duality Theorem:

If one of the problems (primal or dual) has an optimal solution, the other also has an

optimal solution, and their objective function values are equal.

Applications:

1. Sensitivity Analysis: Evaluating the impact of changes in constraints or coefficients.

2. Economic Interpretation: Provides a cost or value interpretation of constraints.


3. Resource Valuation: Helps understand shadow prices of resources.

4. Verification: Ensures the primal problem's solution is accurate.

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5. What are the methods of obtaining the basic feasible solution in the

Transportation Problem?

Introduction:

Transportation problems aim to minimize the cost of transporting goods from multiple

sources to multiple destinations. Basic feasible solutions satisfy supply and demand

constraints.

Methods:

1. North-West Corner Method:


Start allocation from the top-left corner of the cost matrix.

Allocate as much as possible and move to the next cell.

Simple but not necessarily optimal.

2. Least Cost Method:

Allocate starting from the cell with the least cost.

Reduces total transportation cost early in the process.

3. Vogel’s Approximation Method (VAM):

Calculate penalties for each row and column (difference between the smallest and

second smallest costs).

Prioritize allocation where the penalty is highest.


Produces near-optimal solutions.

Steps in Each Method:

1. Balance the supply and demand (add dummy rows/columns if needed).

2. Follow the method’s rules for allocation.

3. Check if all constraints are satisfied (supply = demand).

Applications:

1. Logistics and distribution planning.

2. Cost minimization in supply chains.


3. Scheduling and workforce allocation.

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