UTTARANCHAL UNIVERSITY

(Established vide Uttaranchal University Act, 2012, Uttarakhand Act No. 11 of 2013)
Premnagar-248007, Dehradun, Uttarakhand, INDIA

Subject Code BSIT-304(GE1) Subject Name Computer Based Optimization

Techniques

Faculty Name : Mr. Harshit Gupta

Unit 1
Operations Research
Introduction to OR
Operations research was introduced by McClosky and Trefthen in a small
town, Bowdsey, Uniked Kingdom in 1940. Operations research provides a
facility to decision maker to evaluate he given problems, identify the
alternative solutions, recognize the constraints and then assist the decision
maker to have the best possible solution available, which is known as
optimal solution.

Definitions
As the subject of operations research has a wide area and scope to fit into
one precise definition, here are some definitions to give a more detailed
introduction of operations research.
“Operations research is the art of giving bad answers to problems which
otherwise have worse answers.”
-T.L. Saaty
“Operations research is a branch of applied mathematics which particularly
deals with real life problems solving techniques which includes scientific
reasoning. It is a collection of various tools and techniques that assist
management to take accurate decisions at appropriate time by analyzing
and evaluating all the concerning factors.”
-Dr. N.K. Tiwari
“Operations research is art of winning wars without actually fighting them.”
-Authar Clark
Historical Development
Operations research was firstly used in the problem of allocation of scarce
military resources for their optimal utilization during the Second World War.
After the success of operations research in the military fields, the theory of
operations research explored its existence in industrial areas. Later on, the
American mathematician George B. Danty developed the concept of simplex
method for solving linear programming problems in 1947.
Applications
Following are the major functional areas where the applicability of
operations research theory has been proved:
1. Marketing:
 Advertising
 Planning of media
 Product line
 Finding the best time to launch a product
2. Manufacturing:
 Maintenance
 Replacements of machines
 Budgeting
3. Accounts:
 Credit policy
 Auditing
 Verification
  Credit ratings
4. Purchase:
 Pricing
 Bidding prices
 Purchase time
 Conditions for purchasing
5. Finance:
 Cash flow analysis
 Policy for dividend
 Cash management
 Financial planning
6. Research and development:
 Project selection
 Controlling
 R & D budgeting
 Finding cost
7. Government:
 Policy planning
 Resource allocation
 Costing
 Taxation
8. Transportation:
 Routing of vehicles
 Scheduling of dispatches
 Sequencing of materials
9. Personnel management:
 Manpower scheduling
 Program scheduling
 Money management with respect to manpower
Advantages
Along with larger applicability of operations research, following are the
added advantages of operations research theory:
Better coordination. Maintaining proper balance and coordinating all the
activities for desired results, which provides greater control.
Flexibility. Accurate measures and controlled environment provide the
flexibility and resistance to the models.
Better planning. A realistic approach of operations research models
towards the constraints and other factors provides a better and strong plan
to apply which involves optimum short-term and long-term plans.
Scientific approach. Pre-defined deterministic methods or algorithm
ensures the accurate results generation.
Limitations
Along with several advantages, the theory of operations research has some
limitations too, which are discussed below:
Required trained people. Nearly all the models and solution methods of
operations research are highly complex and difficult to understand. Hence,
they require a skilled and trained person to deal.
Lengthy procedure. While reaching to the best possible optimal solution,
the methodology of operations research has to take too many factors into
consideration. Therefore, generally this procedure takes long time and
enormous calculations.
Complex. Due to high range of value into consideration and lengthy
calculations, the solution generation turned out to be very complex and
highly sensitive even with a single small calculation mistake.
Phases of Method
There are three phases of scientific methods on which operations research is
based, which are described as follows:
 a. Judgement phase. This phase includes the following
activities:
i. Identification of real-life problems
ii. Selection of objective function along with the variables
iii. Deciding the measure of effectiveness
iv. Formulation of model
b. Research phase. This phase includes the following activities:
i. Data collection for understanding and accuracy
ii. Formulation of models and hypothesis
iii. Examination and testing of hypothesis as per the data
iv. Analysis of received information and verification of
hypothesis using pre-determined measures of
effectiveness
v. Prediction of results from hypothesis
vi. Generalization of results
vii. Consideration of alternative solutions
c. Action phase. This phase possesses the recommendations for
implementing the decisions.

Linear Programming
Introduction
Linear Program is designed by George B. Dantzig in 1947 to solve
optimization problems where all the constraints and objective functions are
in the form of linear function. Linear programming is the analysis of
problems in which a linear function of a number of variables is to be
optimized when those variables are subject to a number of constraints in
the mathematical linear inequalities.
Advantages of Linear Programming
a. Flexibility in solving method
 b. Scientific approach to problem solving
c. Evaluation of all possible alternatives
Limitations of Linear Programming
a. Fractional values are rounded off
b. Relationships should be linear
c. Practical problems are difficult to formulate if they have degrees of
complexity
Application areas of Linear Programming
a. Production management
b. Marketing management
c. Military applications
d. Operational management

Model Formulation
The effective use of linear programming in real-life problems requires
proper and accurate formulation of model, which has objective function
along with constraints. Following are the steps to formulate a linear
programming model:
Step 1: Identify the decision variable.
Step 2: identify the constraints.
Step 3: identify the objective function.