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Introduction OR
Introduction OR
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Benefits of Operations Research
1. Decision-making.
2. Optimization.
3. Resource allocation.
4. Risk analysis.
5. Supply chain management.
6. Process improvement.
7. Forecasting and planning.
8. Healthcare and logistics.
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Problem Formulation
• Problem formulation refers to the process of clearly defining and understanding a
problem or decision-making situation. It involves identifying the key elements,
objectives, constraints, and variables associated with the problem.
• Effective problem formulation is essential for developing suitable models,
algorithms, or approaches to solve the problem. It lays the foundation for applying
operations research techniques, mathematical modeling, and analytical methods
to find optimal solutions or make informed decisions.
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Problem Formulation cont.
1. Problem Identification: This step involves recognizing and defining the problem
or decision-making situation. It is important to clearly understand the nature of
the problem, its scope, and its impact on the organization or stakeholders.
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Problem Formulation cont.
3. Scope and Constraints: Understanding the scope and constraints of the problem helps
in defining the boundaries within which the solution needs to be developed.
Constraints may include budget limitations, time constraints, resource availability, legal
or regulatory requirements, and other limitations that need to be considered.
4. Variables and Parameters: Identifying the key variables and parameters involved in the
problem is essential. These could be factors that directly affect the problem or decision,
such as quantities, prices, timeframes, capacities, or any other relevant variables.
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Problem Formulation cont.
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Problem Formulation cont.
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Problem 1
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Problem 1 cont.
• Solution:
A B
12 <= x
4 2
74 <= y
7 10
24 <= z
2 8
Objective: Constrains:
minimize Z = A + B 4A + 2B >= 12
7A + 10B >= 74
2A + 8B >=24
A, B >= 0
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Problem 2
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Problem 2 cont.
• Solution:
X1 X2
Objective: Constrains: 3$ 5$
minimize Z = 3X1 + 5X2 X1 <= 80
X2 >= 60
X1, X2 >= 0
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