QT II Introduction & LPP

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Introduction to

Operations Research

BEGINNING

 Operations Research (OR) started just before World
War II in Britain with the establishment of
teams of scientists to study the strategic and tactical
problems involved in military operations.
 The objective was to find the most effective
utilization of limited military resources by the use of
quantitative techniques.
OR

 Operational Research is a systematic and analytical
approach to decision making and problem solving.
 It is concerned with determining the maximum
profit, sale, output, crops yield and efficiency.
 Minimum losses, risks, cost and time of some
objective function.
METHODOLOGY/STEPS OF OR


 Problem Formulation

 Model building

 Data collection

 Data Analysis

 Coding

 Model verification & Validation

 Experimental Design

 Analysis of results
TECHNIQUES/TOOLS/MODELS OF
OR

 Linear Programming

 Queuing Theory

 Sequencing

 Transportation Problems

 Assignment Problems

 Decision Theory and Games Theory

 Replacement Problems
CONCEPT


 "OR is the representation of real-world systems by
mathematical models together with the use of
quantitative methods (algorithms) for solving such
models, with a view to optimizing.“
 A mathematical model consists of:
 Decision variables - the unknowns to be determined
 Constraints - the physical limitations of the system

 An objective function
 An optimal solution to the model - identification of a
set of variable values which are feasible (satisfy all
the constraints) and which lead to the optimal
value of the objective function.

Linear Programming
Linear Programming

Objectives
 To understand the meaning of LP
 To understand the general form of LPP
 To get practical exposure into Graphical Method
 To get practical exposure into Simplex Method
Introduction

 When allocation of limited resources to various
activities - to maximize profit or minimize cost.
 LPP is one in which we are to find the maximum or
minimum value of a linear expression.
 To find the optimal value/ optimal solution.
Linear Programming

 It is a mathematical technique which involves the
allocation of limited resources in an optimal manner,
on the basis of a given criterion of optimality.
Elements

1. Variables (also called decision variables): -
 The values of the variables are not known when you
start the problem.
 The variables usually represent things that you can
adjust or control.
 Example; the rate at which to manufacture items.
Elements

2. Objective function:-
 This is a mathematical expression that combines the

variables to express your goal.


 Example; Z = 3x – 2y.
 You will be required to either maximize or minimize
the objective function.
Elements

3. Constraints:-
 These are mathematical expressions that combine the
variables to express limits on the possible solutions.
 Example: the number of workers available to operate
a particular machine is limited.
 Example: only a certain amount of raw material is
available per day.
Steps in LPP

 Deciding decision variables
 Formulate the Objective function
 Formulate the Constraints/ conditions
 To add non- negativity constraint – all variable
assume non- negative values. (variables values
always equal to or greater than zero)

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