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Introduction To OR-EM

The document provides an introduction to Operations Research, emphasizing its role in optimizing decision-making under resource constraints through quantitative modeling. It outlines the modeling process, the importance of models in decision support, and the critical stages involved in Operations Research investigations. Additionally, it introduces a case study of PROTRAC, a company involved in manufacturing, and suggests recommended texts and course contents for further study in the field.

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16 views12 pages

Introduction To OR-EM

The document provides an introduction to Operations Research, emphasizing its role in optimizing decision-making under resource constraints through quantitative modeling. It outlines the modeling process, the importance of models in decision support, and the critical stages involved in Operations Research investigations. Additionally, it introduces a case study of PROTRAC, a company involved in manufacturing, and suggests recommended texts and course contents for further study in the field.

Uploaded by

sammush79
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Introduction to

Operations Research

A Summary of Elementary Concepts


By: Sayed M Irfan
Dept. of Industrial & Manufacturing
Engineering
NED University
At the Core of Operations
Research
 The core philosophy underlying
the field of Operations Research
is:
1. It seeks the best course of actions
for a decision problem under the
restrictions of the limited resources.
2. A quantitative science devoted to
helping the management of
organizations make good decisions.
Real Problems in Abstract
Setting
 Business and industrial decisions often
involve the selection from many
alternatives that one choice which will
achieve a specified objective.
 However, it may be possible to simplify
the decision problem by writing it out
symbolically, so that all alternatives
may be represented by one concise
arrangement of mathematical symbols.
The Modeling Process
 Below the dashed line is the real, chaotic,
everyday world faced by managers who
must decide how to deal with a
challenging situation, such as:
 the allocation of resources to competing tasks
 the scheduling of activities
 designing market strategy.
 The process starts in the lower left corner
with the challenging management
situation.
The Modeling Process cont.
 The modeling process, as represented by
the “symbolic world” half of the figure
above the dashed line, recommends a
course of action to supplement (not
replace) the use of intuition in making
decisions.
 This indirect route involves abstracting
the problematic aspects of the
management situation into a quantitative
model that represents the essence of the
situation.
The Modeling Process cont.
 After building the (quantitative) model, it is
analyzed to generate some results or
conclusions that emanate from the model
alone; that is, without regard to the
abstractions previously made.
 Next, interpretation of the model-based results
back to the real-world situation occurs, taking
into account what was left out during the
abstraction phase. When augmented by the
manager’s intuition and experience, this
modeling processes leads to better decisions
and insights that affect learning.
Models and Managers
 Models are used in as many ways as there
are people who build them. They can be
used to sell an idea or a design, to order
optimal quantities of nylon hosiery, or to
better organize a giant multinational
organization.
 In spite of these differences, a few
generalities apply to all decision support
models. All such models provide a
framework for logical and consistent analysis
and are used for at least seven reasons:
The 7-Good Reasons
1. Models force you to be explicit about your
objectives.
2. Models force you to identify and record the types of
decisions that influence those objectives.
3. Models force you to identify and record interactions
and trade-offs among those decisions.
4. Models force you to think carefully about variables
to include and their definitions in terms that are
quantifiable.
5. Models force you to consider what data are
pertinent for quantification of those variables and
determining their interactions.
6. Models force you to recognize constraints on the
values that those quantified variables may assume.
7. Models allow communication of your ideas and
understanding to facilitate teamwork.
Modeling Problem in OR
 Many different types of problems are called
OR problems , and there may be many
different approaches to solution for a
particular problem. Yet certain tasks are
common to all OR enquiries. Six critical
stages in any OR investigations are:
1. Identifying the problem: its objectives, its
constraints, and its decision variables.
2. Formulating the model of the problem.
3. Assessing model parameters.
4. Determining the solution for the model.
5. Testing and modifying (validating) the model.
6. Analyzing and implementing the results.
Introducing PROTRAC
 PROTRAC is a Midwestern American
company:

It produces over 200 items distributed
among farm machinery, industrial and
construction machinery, chemical
products, and lawn and garden
equipment.

Its main sources of revenue is the sale of
machine tools for agriculture,
construction, forestry, landscaping, earth
moving, and materials handling.

These products are made in 14 factories,
most of which are located in the United
States, and are sold worldwide.
Recommended Texts
 Principles of Operations Research for
Management:
Budnick, Mcleavy, & Mojena; 2004;
A.I.T.B.S.
 Applied Management Science ―
Modeling, Spreadsheet Analysis, &
Communication for Decision Making:
Lawrence & Pasternack; 2002; John Wiley &
Sons.
 Quantitative Analysis for
Management:
Render & Stair; 2002; Prentice Hall, Inc.
Proposed Course Contents
 Linear Programming including
 Transportation & Transshipment
Models
 Goal Programming
 Integer Linear Programming
 Network Models
 Queuing Theory
 Game Theory
 Markovian Processes

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