Lecture notes of Operations Research by FOHAGUI

Chapter 2- MODELLING IN OPERATIONS RESEARCH

Objectives: After going through this chapter, you will be able to:

 Define and classify different models used in Operations Research

 Explain the types of programming used in solving each model
 Give the advantages of using models in operation research approach

2.0. Introduction

2.1. Model in operation research

A model in OR is a simplified representation of an operation, or is a process in which only

the basic aspects or the most important features of a typical problem under investigation are
considered. The objective of a model is to identify significant factors and interrelationships.
The reliability of the solution obtained from a model depends on the validity of the model
representing the real system.
A good model must possess the following characteristics:

(i) It should be capable of taking into account, new formulation without having any
changes in its frame.

(ii) Assumptions made in the model should be as small as possible.

(iii) Variables used in the model must be less in number ensuring that it is simple and
coherent.

(iv) It should be open to parametric type of treatment.

(v) It should not take much time in its construction for any problem.

2.1.1 Advantages of a Model

There are certain significant advantages in using a model. These are:

(i) Problems under consideration become controllable.

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(ii) It provides a logical and systematic approach to the problem.

(iii) It provides the limitations and scope of an activity.

(iv) It helps in finding useful tools that eliminate duplication of methods applied to
solve problems.

(v) It helps in finding solutions for research and improvements in a system.

(vi) It provides an economic description and explanation of either the operation, or the
systems it represents.

2.1.2 Classification of Models

The classification of models is a subjective problem. They may be distinguished as follows:

(1) Models by degree of abstraction

(2) Models by function

(3) Models by structure

(4) Models by nature of an environment

(5) Models by the extent of generality

2.1.2.1 Models by function

These models consist of (a) Descriptive models; (b) Predictive models and (c) Normative
models.

Descriptive models: They describe and predict facts and relationships among the
various activities of the problem. These models do not have an objective function as part of
the model to evaluate decision alternatives. In these models, it is possible to get information
as to how one or more factors change as a result of changes in other factors.

Normative or optimization models: They are prescriptive in nature and develop

objective decision-rule for optimum solutions.

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2.2.2.2 Models by structure

These models are represented by (a) Iconic models (b) Analogue models, and (c)
Mathematical or symbolic models.

Iconic or physical models: They are pictorial representations of real systems and have
the appearance of the real thing. An iconic model is said to be scaled down or scaled up
according to the dimensions of the model which may be smaller or greater than that of the
real item, e.g., city maps, houses blueprints, globe, and so on. These models are easy to
observe and describe, but are difficult to manipulate and are not very useful for the purpose
of prediction.

Analog models: The models in which one set of properties is used to represent another
set of properties are called analog models. After the problem is solved, the solution is
reinterpreted in terms of the original system. These models are less specific, less concrete,
but easier to manipulate than iconic models.

Mathematic or symbolic models: They are most abstract in nature. They employ a set of
mathematical symbols to represent the components of the real system. These variables are
related together by means of mathematical equations to describe the behavior of the system.
The solution of the problem is then obtained by applying well developed mathematical
techniques to the model.

The symbolic model is usually the easiest to manipulate experimentally and it is the most
general and abstract. Its function is more explanatory than descriptive.

2.1.2.3 Models by nature of an environment

These models can be further classified into (a) Deterministic models and (b) Probabilistic
models.

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Deterministic models: They are those in which all parameters and functional
relationships are assumed to be known with certainty when the decision is to be made. Linear
programming and break-even models are the examples of deterministic models.

Probabilistic or stochastic models: These models are those in which at least one
parameter or decision variable is a random variable. These models reflect to some extent the
complexity of the real world and the uncertainty surrounding it.

2.1.2.4 Models by the extent of generality

These models can be further categorized into (a) Specific models (b) General models

When a model presents a system at some specific time, it is known as a specific model. In
these models, if the time factor is not considered, they are termed as static models. An
inventory problem of determining economic order quantity for the next period assuming that
the demand in planning period would remain same as that of today is an example of static
model. Dynamic programming may be considered as an example of dynamic model.
Simulation and Heuristic models fall under the category of general models. These models are
used to explore alternative strategies which have been overlooked previously.

2.2 General methods for solving OR models

Mathematical models have been constructed for OR problems and methods for
solving the models are available in many cases. Such methods are usually termed as
OR techniques. Some of the important OR techniques often used by decision-makers
in modern times in business and industry are as follows:

Linear programming: When the model consists linear relationships between variables. i.e
y  ax1  bx2  ..zxn . This technique is used in finding a solution for optimizing a given
objective such as profit maximization or cost minimization under certain constraints. The

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primarily concerned is the optimal allocation of limited resources for optimizing a given
function.

Non-linear programming is that form of programming in which some or all the variables are
 
curvilinear i.e y  ax1  b x2  ..zxn . In other words, this means that either the objective
function or constraints or both are not in the linear form. In most practical situations, we
encounter nonlinear programming problems, but for computation purpose we approximate
them as linear programming problems. Even then, there may remain some non-linear
programming problems which may not be fully solved by presently known methods.

Dynamic programming refers to the systematic search for optimal solutions to problems
that involve many highly complex interrelations that are, moreover, sensitive to multistage
effects such as successive time phases.

Heuristic programming, also known as discovery method, refers to step by step search
toward an optimum when a problem cannot be expressed in the mathematical programming
form. The search procedure examines successively a series of combinations that lead to
stepwise improvements in the solution and the search stops when a near optimum has been
found.

Integer programming is a special form of linear programming in which the solution is

required in terms of integral numbers (i.e., whole numbers) only.

Algorithmic programming is just the opposite of heuristic programming. It may also be

termed as near mathematical programming. This programming refers to a thorough and
exhaustive mathematical approach to investigate all aspects of the given variables in order
to obtain optimal solution.

Quadratic programming refers to a modification of linear programming, in which the

objective equations appear in quadratic form, i.e., they contain squared terms.

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Probabilistic programming, also known as stochastic programming, refers to linear

programming that includes an evaluation of relative risks and uncertainties in various
alternatives of choice for management decisions.

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