LECTURE ONE

Operations Resesarch (OR)

Operations research (often referred to as management science) is simply a
scientific approach to decision making that seeks to best design and operate a
system, usually under conditions requiring the allocation of scarce resources.
By a system, we mean an organization of interdependent components that
work together to accomplish the goal of the system

1.1 PHASES FOR OR IMPLEMETATION

The principal phases for implementing OR in practice include the following:

1. Definition of the problem.

2. Construction of the model.

3. Solution of the model.

4. Validation of the model.

5. Implementation of the solution

1.1.1 Definition of the problem

This involves describing the scope of the problem under investigation, with
the aim of identifying three principal elements of the decision problem: de-
scription of the decision alternatives, determination of the objective of the
study, and specification of the limitations under which the modeled system
operates.

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1.1.2 Construction of the model
This entails an attempt to translate the problem definition into mathemat-
ical relationships ensuring that the resulting model fits one of the standard
mathematical models, such as linear programming, reaching a solution by
using available algorithms.

1.1.3 Solution of the model

This is by far the simplest of all OR phases because it entails the use of
well-defined optimization algorithms.

1.1.4 Validation of the model

This checks whether or not the proposed model does what it purports to
dothat is, does it adequately predict the behavior of the system under study?

1.1.5 Implementation of the solution

Implementation of the solution of a validated model involves the translation
of the results into understandable operating instructions to be issued to the
people who will administer the recommended system

1.1.6 Remark
In practice, OR does not offer a single general technique for solving all mathe-
matical models. Instead, the type and complexity of the mathematical model
dictate the nature of the solution method.
The most prominent OR technique is linear programming. It is designed
for models with linear objective and constraint functions. Other techniques
include integer programming (in which the variables assume integer values),
dynamic programming (in which the original model can be decomposed into
smaller more manageable subproblems), network programming (in which the
problem can be modeled as a network), and nonlinear programming (in which
functions of the model are nonlinear). These are only a few among many
available OR tools. A peculiarity of most OR techniques is that solutions
are not generally obtained in (formula-like) closed forms. Instead, they are
determined by algorithms.

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1.2 Type of Mathematical Models
A mathematical model is a mathematical representation of an actual situa-
tion that may be used to make better decisions or simply to understand the
actual situation better.
There are different kinds of Mathematical models and these include;
i Prescriptive or Optimization models
ii Static and Dynamic models
iii Linear and Non linear models
iv Integer and Non integer models
v Deterministic and Stochastic models

1.2.1 Prescriptive or Optimization model

A prescriptive model prescribes behavior for an organization that will enable
it to best meet its goal(s). The components of a prescriptive model include;
i objective function(s)
ii decision variables
iii constraints
In short, an optimization model seeks to find values of the decision variables
that optimize (maximize or minimize) an objective function among the set
of all values for the decision variables that satisfy the given constraints.

1.2.2 Static and Dynamic models

A static model is one in which the decision variables do not involve sequences
of decisions over multiple periods. A dynamic model is a model in which the
decision variables do involve sequences of decisions over multiple periods.
Basically, in a static model we solve a one-shot problem whose solutions
prescribe optimal values of decision variables at all points in time.

1.2.3 Linear and Non Linear models

Suppose that whenever decision variables appear in the objective function
and in the constraints of an optimization model, the decision variables are
always multiplied by constants and added together. Such a model is a linear
model. If an optimization model is not linear,then it is a nonlinear model.

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1.2.4 Integer and Non Integer models
If one or more decision variables must be integer, then we say that an opti-
mization model is an integer model. If all the decision variables are free to
assume fractional values, then the optimization model is a noninteger model.

1.2.5 Deterministic and Stochastic models

Suppose that for any value of the decision variables, the value of the objec-
tive function and whether or not the constraints are satisfied is known with
certainty. We then have a deterministic model. If this is not the case, then
we have a stochastic model.

1.3 Definitions
1.3.1 Optimization Problem
Optimization problem is the problem requiring the determination of the opti-
mal (maximum and minimum) value of a given function, called the objective
functions, subject to a set of stated restrictions, or constraints placed on the
variables concerned.

1.3.2 Mathematical program

A Mathematical program is an optimization problem in which the objective
and constraints are given as mathematical functions and functional relation-
ships. Mathematical programms can be represented in this form;

Optimize: z = f (x1 , x2 , x3 , ..., xn )

Subject to : g1 (x1 , x2 , x3 , ..., xn ) b1
g2 (x1 , x2 , x3 , ..., xn ) < b2
(1.3.2.1)
................... = ...
>
gn (x1 , x2 , x3 , ..., xn ) bn

1.3.3 Linear function

A function f (x1 , x2 , ..., xn ) of x1 , x2 , ..., xn is a linear function if and only if
for some set of constants c1 , c2 , ..., cn ,

f (x1 , x2 , ..., xn ) = c1 x1 + c2 x2 + ... + cn xn .

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1.3.4 Linear Program
Linear program is a mathematical program that has its objective function
and constaints given as linear functions and linear inequalities respectively.

f (x1 , x2 , ..., xn ) = c1 x1 + c2 x2 + ... + cn xn

gi (x1 , x2 , ..., xn ) = ai1 x1 + ai2 x2 + ... + ain xn

1.3.5 Solution of a linear program

Any specification of values for the decision variable (x1 , x2 , ..., xn ) is called a
solution, regardless of whether it is desirable or an allowable choice

1.3.6 Feasible solution

Feasible solution is a solution for which all the constraints are satisfied.

1.3.7 Infeasible solution

An infeasible solution is a solution for which at least on constraint is not
satisfied.

1.3.8 Optimal solution

An Optimal solution is a feasible solution that has the most favourable value
of the objective function. That is the largest value of the objective function
when the function is to be maximized or the smallest value of the objective
function when it is to be minimized.

1.4 Linear Program

Consider a model to select the values for x1 , x2 , ..., xn so as to

Optimize : z = c1 x1 + c2 x2 + ... + cn xn (i)

subject to the restrictions

a11 x1 +a12 x2 + · · · + a1n x ≤ b1

a21 x1 +a22 x2 + · · · + a2n x ≤ b2
.. .. (ii)
. .
am1 x1 +am2 x2 + · · · + amn xn ≤ bn

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and
x1 ≥ 0, x2 ≥ 0, ..., xn ≥ 0 (iii)
Any situation whose mathematical formulation fits this model is a linear
programming problem

1.4.1 Modelling into Linear Program

Consider the following word problems;

Example I
A company produces two types of Heater, S and L. The wholesale price per
Heater for S is $40 and $88 for L. Two time constraints result from the use
of the two machines M1 and M2 . On M1 , one needs 2mins for S heater and
8mins for L heater. On M2 , one needs 5mins for S heater and 2mins for L
heater. Determine the production figures for S and L respectively (number
of heaters produced per hour) so that the hourly revenue is maximized.

Solution I
Let x1 represents the number of S heaters produced per hour.
Let x2 represents the number of L heaters produced per hour.
Then the total revenue is
z = 40x1 + 88x2
which is the objective function to be maximized.
Constraints on machine per hour M1
2x1 + 8x2 ≤ 60
Constraints on machine per hour M2
5x1 + 2x2 ≤ 60
We then have a linear program
Maximize : z = 40x1 + 88x2
subject to;
2x1 +8x2 ≤ 60
5x1 +2x2 ≤ 60
x1 ≥0
x2 ≥0

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Example II
A furniture maker has 6 units of wood and 28 hours of free time in which he
will make decorative screens. Two models have sold well in the past, so he
will restrict himself to those two. He estimates that model I requires 2 units
of wood and 7 hours of time, while model II requires 1 unit of wood and 8
hours of time. The price of the models are $120 and $80 respectively. How
many screens of each model should the furniture maker assemble if he wishes
to maximize his sale revenue?

Solution II
Let x1 represents the model I
Let x2 represents the model II
Then the total revenue is

z = 40x1 + 88x2

which is the objective function to be maximized.

Constraint on wood
2x1 + x2 ≤ 6
Constraint on time
7x1 + 8x2 ≤ 28
We then have a linear program

Maximize : z = 120x1 + 80x2

subject to;
2x1 +x2 ≤ 6
7x1 +8x2 ≤ 28
x1 ≥0
x2 ≥0

Example III
A Mine company operates three mines in Southern Nigeria. The ore from
each mine is seperated into two grades before it is shipped. The daily pro-
duction capacities of the mines, as well as their daily operating costs are as
follows;

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 High grade ore per ton per day Low grade ore per ton per day Operating cost
Mine I 4 4 2
Mine II 6 4 2
Mine III 1 6 1
The company has committed to deliver 54 tons of high grade ore and 65 tons
of low grade ore by the end of the week. It also has labour contracts that
guarantee employees in each mine a full day’s pay for each day or fraction of a
day the mine is open. Determine the number of days each mine should be op-
erated during the upcoming week if the company is to fulfill its commitment
at minimum total cost.

Solution III
Let x1 represents the operating days for Mine I
Let x2 represents the operating days for Mine II
Let x3 represents the operating days for Mine III
Then the total cost is

z = 20x1 + 22x2 + 18x3

which is the objective function to be minimized.

Constraint on High grade ore

4x1 + 6x2 + x3 ≥ 54

Constraint on Low grade ore

4x1 + 4x2 + 6x3 ≥ 65

Other hidden constraints x1 ≤ 7, x2 ≤ 7, x3 ≤ 7

We then have a linear program

Minimize : z = 20x1 + 22x2 + 18x3

subject to;
4x1 +6x2 +x3 ≥ 54
4x1 +4x2 +6x3 ≥ 65
x1 ≤7
x2 ≤7

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1.5 Method for solving Linear Program
There are two major methods for solving a linear programming;

i Graphical Method

ii Simplex Method

Although there are other defined algorithms for different kinds of linear pro-
gramm.

1.5.1 Graphical method

The graphical solution includes two steps:

i Determination of the feasible solution space.

ii Determination of the optimum solution from among all the points in

the solution space.

Graphical method is applicable where there are only two decision variables
involved. Consider the following examples to graphically solve a linear pro-
gram. For this purpose, we shall be using the model considered in example
I;
A linear program
Maximize : z = 40x1 + 88x2
subject to;
2x1 +8x2 ≤ 60
5x1 +2x2 ≤ 60
x1 ≥0
x2 ≥0

Solution
Let x1 and x2 be the coordinates of a graph as shown below. The line
through CB represents the equation 2x1 + 8x2 ≤ 60 while the line through
AB represents the equation 5x1 +2x2 ≤ 60. The region OABC is the feasible
region and the points O, A, B and C are the extreme points. To determine
the one that maximizes the revenue, we substitute the coordinates of the

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 Figure 1:

points O, A, B and C into the objective function z = 40x1 + 88x2 . We will

see that the optimal revenue is at point B and the revenue is

z = 40 × 10 + 88 × 5 = 840

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