Introduction to Operations Research

History of Operations Research or Operational Research

OR -- a systematic and analytical approach to decision making and problem
solving.
Was first coined in 1940 by McClosky and Trefthen, Bowdsey, UK Some say that Charles
Babbage (1791-1871) -- Father of OR as his research into the cost of transportation and
sorting of mail led to England’s University Penny Post in 1840
However, no clear history that marks the Birth of O.R., this new Science came into existence
in England during the World War II
Operations Research in India
came into existence 1949 with the opening of an OR unit at the Regional Research
Laboratory at Hyderabad
In 1953, an OR, Unit was established – Indian Statistical Institute, Calcutta
The OR Society of India was founded in 1957 to provide a forum for the OR Scientists as
well as an avenue to widen their horizon by exchange of knowledge and application of
techniques from outside the country. In 1959 -- a Member of International Federation of
Operational Research Societies (IFORS).
OR -- been described as the
Science of Use, Quantitative Common Sense, Scientific Approach to Decision
Making, etc., some of the commonly used and widely accepted, are
It is the application of Scientific Methods, Techniques and Tools to problems involving the
system operations so as to provide Optimum Solutions. -CW Churchman, RL Ackoff & EL
Ackoff
It is a Scientific Method of providing executive departments with a quantitative basis for
decisions regarding the operations under their control. - Morse &
Kimball
It is a Scientific Approach to problem solving for executive management. -H.M. Wagner
It is Art of giving bad answers to problem which otherwise have worse answers.
-T.L. Saaty
Some Features of Operations Research
Decision-Making, Scientific Approach, Inter-Disciplinary Team Approach, Use of
Computers, Objectives, Human Factors
Scope of Operations Research
Manufacturing, Revenue Management, Retailing, Human Resource Management,
General Management, Production Systems
Models of Operations Research
Model in OR -- a simplified representation of an Operation or a Process
Constructing a model helps in bringing the complexities and possible uncertainties into a
logical framework amenable to detailed analysis.
In brief the model acts as a vehicle in arriving at a well-structured view of reality.
The word Model -- has several shades of meaning, all of which are relevant to Operations
Research. e.g., a model can act as a substitute for representing reality, such as small-
 scale model locomotive; may act as some sort of idealization, like a model plan for
recruitment procedure, etc.
Characteristics
should be capable of taking new formulations, if any, without any significant change in
its frame
Assumptions made in the model should be as small as possible
should be simple and coherent
Classification of Models of Operations Research
Models by Function
Descriptive Models - Describe, Explain, and Predict Facts and Relationships
among various activities of the problem
Predictive Models
Normative or Optimization Models - Prescriptive in Nature and develop objective
decision-rules or criteria for optimum solutions
Models by Structure
Iconic or Physical Models -Pictorial representation of real systems and have the
appearance of real thing e.g., City Maps, Blueprints, etc.,
Analogue Models - more abstract than Iconic
Mathematical or Symbolic Models - most abstract in nature; more general and
precise
Models by nature of the Environment
Deterministic Models -all the parameters and functional relationship are assumed
to be known with certainty. E.g., LPP
Probabilistic Stochastic Models - at least one parameter or decision variable is a
random variable
Models by the extent of Generality
Specific Model - model presents a system at specific time if the time factor -- not
considered -- as static models, otherwise dynamic models
Simulation and Heuristic models -- type of General Models, used explore alternative
strategies.

Methodology of Operations Research -Steps to problem solving

Formulation of the problem
Creation of a mathematical model
Deriving the solution of the model
Validity of the model
Starting the control over mode
Implementation of the final result

Applications of Operations Research

Finance, Budgeting and Investments; Purchasing & Procurement; Production Management;
Marketing Management; Personnel Management; Research and Development

Linear Programming Problem

LP Is a technique for determining an optimum schedule of independent activities with

available resources.
Programming is another word for Planning
Linear -- indicates that all Relationships involved in a particular problem are
Linear.
Mathematical Formulation of the LPP
 1. Write the decision variable of the problem
2. Formulate the Objective Function to be Optimized i.e. Max or Min as a linear function

of the decision vars

3. Formulate the other conditions like Resource limitations, market constraints, inter-
relation between vars etc., as linear equations or inequations of the decision vars.
4. Add the non-negativity constraints

Note: The Objective Function, the set of Constraints and Non-negative constraints together

referred as LPP

Problem 1.
A company produces 2 different models M1 and M2. Each M1 requires 4 hrs. of grinding
and 2 hrs. of polishing and whereas each M 2 requires 2 hrs. of grinding and 5 hrs. of
polishing. The company has 2 grinders and 3 polishers. Each grinder works for 40 hrs.
and each polisher works for 60 hrs. a week. Profit on M1 is ₹ 3 and on M2 is ₹ 4.
How should the company allocate production capacity to the 2 types models so as to
make the Max. profit in a week?
Solution: Mathematical Formulation of the given problem is
Step 1. Identify the decision vars. Let
x1 number of units of M1 and
x2 number of units of M2
Step 2. formulation of Objective Function
Objective of the company is to determine the number of 2 types of models so
as to maximize the profit, viz.,
z = 3x1 + 4x2
Step 3. formulation of Constraints
For grinding each M1 requires -- 4 hrs. &
each M2 requires -- 2 hrs.
Therefore, total no. of grinders needed per week = 4x1 + 2x2
ll ly for polishing each M1 -- 2 hrs. & each M2 -- 5 hrs. is 2x1 + 5x2
Further, observe the company have 2 grinders & 3 polishers and
each grinder works for 40 hrs.;
each polisher works for 60 hrs
therefore, grinders work for not more than 2X40 = 80 hrs.
polishers work for not more than 3X60 = 180 hrs.
Hence, by considering the time constraints
4x1 + 2x2 ≤ 80
2x1 + 5x2 ≤ 180
Step 4. Adding non-negativity constraints since production of negative numbers of
models is meaningless
so, must have x1 ≥ 0 and x2 ≥ 0
Hence, the company’s allocation problem can be -- following mathematical form
for any 2 real numbers x1 and x2
 4x1 + 2x2 ≤ 80
2x1 + 5x2 ≤ 180
x1 ≥ 0 and x2 ≥ 0
for which the objective function is
Max. z = 3x1 + 4x2
Problem 2
An oil refinery company should decide on the optimum mix of 2 possible blending process
of which the i/ps and o/ps production run as follows

Input Output
Process Pi
Crude A Crude B Gasoline X Gasoline Y

P1 6 4 6 9

P2 5 6 5 5

The maximum amounts available of crudes A & B are 250 and 200 units respectively.
Market demand shows that at least 150 units Gasoline X- and 130 units Gasoline Y must
be processed. The profits per production run from processes 1 and 2 are ₹ 4 and ₹ 5
respectively. Formulate the problem for maximizing the profit.

Solution:
Step 1. Identify the decision vars. Let
x1 no. of units of units of Gasoline from P1
x2 no. of units of units of Gasoline from P2
Step 2. formulation of Objective Function
Objective is to determine the Gasoline to produce from P 1and P2 so as to
maximize the profit, viz.,
z = 4x1 + 5x2
Step 3. formulation of Constraints
For crude A P1 = 6. & P2 = 5.
Therefore, for Crude A = 6x1 + 5x2
ll ly for Crude B = 4x1 + 6x2; for Gasoline X = 6x1 + 5x2;
for Gasoline Y = 9x1 + 5x2
Further, observe the available Crudes for A = 250 and B = 200;
Market demand (at least) for Gasolines for X = 150 and Y = 130
Therefore, by considering these constraints
6x1 + 5x2 ≥ 250; 4x1 + 6x2 ≥ 200;
6x1 + 5x2 ≤ 150; 9x1 + 5x2 ≤ 130
Step 4. Adding non-negativity constraints
since production of negative numbers models is meaningless
so, must have x1 ≥ 0 and x2 ≥ 0

Thus, The objective function of given problem

Maximize z = 4x1 + 5x2
S. t. constraints
 6x1 + 5x2 ≥ 250; 4x1 + 6x2 ≥ 200;
6x1 + 5x2 ≤ 150; 9x1 + 5x2 ≤ 130; and
x1 ≥ 0 and x2 ≥ 0

Problem 3
A company owns 2 flour mills viz. A and B, with production capacities for high, medium
and low-quality flour. The company has entered a deal to supply flour to a store every
month with at least 8, 12 and 24 quintals of high, medium and low quality respectively. It
costs the company ₹ 2000 and ₹ 1500 per day to run mill A and B respectively. On a day,
Mill A produces 6, 2 and 4 quintals of high, medium and low-quality flour, Mill B produces
2, 4 and 12 quintals of high, medium and low-quality flour respectively. How many days
per month should each mill be operated in order to meet the contract order most
economically?

Solution:
Step 1. Identify the decision vars. Let
Let x1 and x2 are the mills A and B

Step 2. formulation of Objective Function

Here the objective is to minimize the cost of the machine runs and to satisfy
the contract order, viz.,
Minimize z = 2000x1 + 1500x2
Step 3. formulation of Constraints
to supply flour to a store every month with at least
8 quintals of high quality
12 quintals of medium quality and
24 quintals of low quality
Mill A produces 6, 2 and 4 quintals of high, medium and low-quality flour,
Mill B produces 2, 4 and 12 quintals of high, medium and low-quality flour
respectively
6x1 + 2x2 ≥ 8
2x1 + 4x2 ≥ 12
4x1 + 12x2 ≥ 24
Step 4. Adding non-negativity constraints
x1 ≥ 0 and x2 ≥ 0

Therefore, mill be operated in order to meet the contract order most economically
Minimize z = 2000x1 + 1500x2
S. t. Constraints 6x1 + 2x2 ≥ 8
2x1 + 4x2 ≥ 12
4x1 + 12x2 ≥ 24
x1 ≥ 0 and x2 ≥ 0