Operational Research

Optimization Techniques
By:
Kaushal Patel

Department of Mathematics
Veer Narmad South Gujarat University, Surat
 Introduction
The term, operations research was first coined in
1930 by McClosky and Trefthen in a small town
Bowdsey, of the United Kingdom.

This new science came into existence in a military

context.

During World War - 2, military management

called on scientists from various disciplines and
organized them into teams to assist in solving
planned problems, relating to air and land defense
of the country.
• This new approach to the systematic and
scientific study of the operations of the system
was called Operations Research or operational
research.

“An art of winning the war

without actually fighting it.”
Operational Research
 Definitions
• OR is a scientific method of providing executive
departments with a quantitative basis for decisions
regarding the operations under their control. [Morse
and Kimbal (1946)]

• OR is the scientific method of providing executive

with an analytical and objective basis for decisions
[P.MS. Blackett (1948)]

• OR is the art of giving bad answers to problems to

which otherwise, worse answers are given [TL.
Saaty (1958)]
• OR is a scientific approach to problem solving for
executive management [HM Wagner]

• OR is an aid for the executive in making his decisions

by providing him with the quantitative information
based on the scientific method of analysis. [C.Kittee]

• OR is the scientific knowledge through

interdisciplinary team effort for the purpose of
determining the best utilization of limited resources.
[H. A. Taha]
Optimization
Optimization Technique
 Scope of Operational Research

1. Agriculture.
2. Finance.
3. Industry.
4. Marketing.
5. Personnel Management.
6. Production Management.
7. Research and Development.
……
 Phases of Operational Research
The procedure to be followed in the study of OR, which
involves following steps

1 formulating a Problem
2 constructing a mathematical model
3 deriving the solution from the mathematical model
4 testing the model and the solution
5 controlling the solution
6 implementation
 Formulating the problem
• Before proceeding the solution of the
problem, one must able to formulate the
problem
– Who has to take the decision?
– What are the objectives?
– What are the ranges of the controlling
variables?
– What are the constraints on the variables?
 Construct the mathematical
model
• Once a problem is formulated, the next step is to express the
problem into a mathematical model that represents systems,
processes or environment in the form of equations,
relationships or formulas.
• We have to identify both the static and dynamic elements, and
derive mathematical formulas to represent the
interrelationships among elements.
• The proposed model may be field tested and modified in order
to work under stated environmental constraints.
 Solution of the model:
• find a solution using some techinques
 Select appropriate data input:
• Garbage in and garbage out is a famous
saying. No model will work appropriately if
data input is not appropriate. The purpose of
this step is to have sufficient input to operate
and test the model.
 Validation of the model:
• A model is said to be valid if it can provide a reliable
prediction of the system’s performance.
• A model must be applicable for a longer time and can
be updated from time to time taking into consideration
the past, present and future aspects of the problem.
• A model may also be modified if they are not satisfied
with the answer that it gives.
• the model is not behaving properly, then updating and
modification is considered at this stage. (Reframe the
model)
 Implement the solution:
• The implementation of the solution involves so
many behavioural issues.
• The gap between one who provides a solution
and one who wishes to use it should be
eliminated.
• A properly implemented solution obtained
through Optimization Techniques results in
improved working.
 Models in OR
• 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 reliability of the solution obtained from a
model
 Model Characteristics
• It should be capable of taking into account, new
formulation with out having any changes in its frame.
• Assumptions made in the model should be as small as
possible.

• Variables used in the model must be less in number

ensuring that it is simple and logical.
• It should be open to parametric type of treatment.
• It should not take much time in its construction for any
problem
Formula needed to solve the
cow problem
 Advantages of a Model
• Problems under consideration become controllable through
a model.
• It provides a logical and systematic approach to the
problem.
• It provides the limitations and scope of an activity.
• It helps in finding useful tools that eliminate duplication of
methods applied to solve problems.
• It helps in finding solutions for research and improvements
in a system.
• It provides an economic description and explanation of
either the operation, or the systems they represent.
• Classification of Models
 Introduction of Linear Programming

• Linear programming deals with the optimization

(maximization or minimization) of a function of variables
known as objective functions.

• It is subject to a set of Linear equalities and/or inequalities

known as constraints.

• Linear programming is a mathematical technique, which

involves the allocation of limited resources in an optimal
manner, on the basis of a given criterion of optimality.
 Formulation of LP Problems

Step 1 To write down the decision variables of the problem.

Step 2 To formulate the objective function to be optimized (Maximized

or Minimized) as a linear function of the decision variables.

Step 3 To formulate the other conditions of the problem such as

resource limitation, market constraints, interrelations between
variables etc, as linear in equations or equations in terms of the
decision variables.

Step 4 To add the non-negativity constraint from the considerations so

that the negative values of the decision variables do not have any
valid physical interpretation.
 General Formulation of LPP
decision variables X1,X2,X3,...,Xn

maximize or minimize the objective function.

Z=clXl +C2 X2 +c3 X3 +.....+cnXn

m-constraints
a11x1 +a12 X2 +a13 X3 +.....+a1nXn < = > b1
a21x1 +a22 X2 +a23 X3 +.....+a2nXn< = > b2
..................................................................

ai1 X1 +ai2 X2 +ai3 X3 +.....+ainXn < = > bi

..............................................................
am1X1 +am2 X2 +am3 X3 +.....+amnXn< = > bm

non negative restrictions

• X1, X2,X3,...,Xn >=0,
 Example - 1
• A manufacturer produces two types of models M1 and M2.
• Each model of the type M1 requires 4 hrs of grinding and 2 hours of
polishing; where as each model of the type M2 requires 2 hours of
grinding and 5 hours of polishing.
• The manufacturers have 2 grinders and 3 polishers.
• Each grinder works 40 hours a week and each polisher works for 60
hours a week.
• Profit on Ml model is Rs.3.00 and on model M2, is Rs.4.00.
• Whatever is produced in a week is sold in the market.
• How should the manufacturer allocate his production capacity to the
two types of models, so that he may make the maximum profit in a
week?
Product M1(X) M2 (Y)

Grinding 4 2
Polishing 2 5

We have Grinders polishers

2 3
40 hrs/week 60 hrs/week
we have total 80 hrs for grinding
we have total 180 hrs for polishing

Let X be the number of M1 model that produced per week

Let Y be the number of M2 model that produced per week

Maximize profit (z) = 3X+4Y (objective function)

Constrains:
4*X + 2*Y <= 80 Grinding Constrain
2*X + 5*Y <= 180 Polishing Constrain
Non – negative constraints
X>=0 Y>=0
 solution-1

• Decision Variable: x1 and x2 be the no. of

units of M1 and M2 model

• Objective Function: the profit on both model

are given, we have to maximize the profit
Max (z) = 3*x1 + 4*x2

• constraints: there are two constraints one is for

grinding and other is for polishing
No. of hrs. available on each grinder for one week is 40 hrs.
There are 2 grinders. Hence the manufacturer does not have more
than 2 x 40 = 80 hrs of grinding.
M1 requires 4 firs of grinding and M2, requires 2 hours of
grinding.
The grinding constraint is given by
4x1 +2x2 <=80.

Since there are 3 polishers, the available time for polishing in a

week is given by 3 x 60= 180.
M1 requires 2 hrs of polishing and M2, requires 5 hrs of polishing.

2x1 + 5X2 <= 180

(0,36)B D(2.5,35)

C(20,0)
 Example 2

• A person requires 10,12, and 12 units

chemicals A, B and C respectively for his
garden. One unit of liquid product contains 5,
2 and 1 units of A, B and C respectively. One
unit of dry product contains 1,2 and 4 units of
A, B, and C. If the liquid product sells for Rs.3
and the dry product sells for Rs.2 , how many
of each should be purchased, in order to
minimize the cost and meet the requirements?
• A - 10
• B - 12
• C - 12 A B C cost of making
• L - (x) 5 2 1 3
• D = (y) 1 2 4 2
• x  unit of liquid product that we have to produced
• y  unit of Dry product that we have to produced
• Minimum cost (Z)= 3 * x + 2 * y
• Constrains 5x +1 y >= 10
• 2x+ 2 y >= 12
• 1x+ 4 y >= 12
• x, y >= 0
 solution
Min(Z)=3xl +2X2

Subject to
5X1 +X2 >= 10
2X1+2x2 >= 12
X1+4X2 >= 12

X1, X2 >= 0,
 Min(Z)=3xl +2X2

z(0,10)=3(0)+2(10)=20
z(1,5)=3(1)+2(5)=13
z(4,2)=3(4)+2(2)=16
(1,5)
z(12,0)=3(12)+2(0)=36
5x+y=10
2x+2y=12

(4,2)
1x+4y=12
2x+2y=12
(12,0)
We produced 1 unit of Liquid product and 5 unit of Dry product manufacture so that
We minimize the cost of the material
 Example 3

• A paper mill produces two grades of paper namely X and Y.

Because of raw material restrictions, it cannot produce more than
400 tons of grade X and 300 tons of grade Y in a week. There are
160 production hours in a week. It requires 0.2 and 0.4 hours to
produce a ton of products X and Y resp. with corresponding
profits of Rs. 200 and Rs. 500 per ton. Formulate the above as a
LPP to maximize profit and find the optimum product mix.
 solution – 3

• Decision variables: x1 and x2 be the number

of units of two grades of paper of X and Y

Max(Z)= 200x1+500x2
subject to
x1 <= 400
x2 <= 300
0.2x1+0.4x2<= 160
x1 ,x2 >=0
 HOME WORK PROBLEM
• Mines Company own two different mines that produce an ore
which, after being crushed, is graded into three classes:
high, medium and low-grade. The company has contracted
to provide a smelting plant with 12 tons of high-grade, 8 tons
of medium-grade and 24 tons of low-grade ore per week.
The two mines have different operating characteristics as
detailed below.
• Mine Cost per day (£'000) Production (tons/day)
High Medium
Low
X 180 6 3 4
Y 160 1 1 6
• How many days per week should each mine be
 Guessing

• work one day a week on X, one day a week on

Y
• This does not seem like a good guess as it
results in only 7 tones a day of high-grade,
insufficient to meet the contract requirement
for 12 tones of high-grade a day.
• We say that such a solution is infeasible.
 Solution
• Variables
• These represent the "decisions that have to be
made" or the "unknowns".
• Let
x = number of days per week mine X is operated
y = number of days per week mine Y is operated
• Note here that x >= 0 and y >= 0.
• Constraints
– ore production constraints
• Ore High 6x + 1y >= 12
• Medium 3x + 1y >= 8
• Low 4x + 6y >= 24
– days per week constraint - we cannot work more
than a certain maximum number of days a week
e.g. for a 7 day week we have
• x <= 7 y <= 7 x>=0 y>=0
• Objective
• objective is to minimize cost which is given by
180x + 160y
• The complete mathematical representation of the
problem:

minimize 180x + 160y

subject to
6x + y >= 12
3x + y >= 8
4x + 6y >= 24
x <= 5
y <= 5

• x,y >= 0
 Post Office Example

• A PO requires different numbers of employees on

different days of the week. Union rules state each
employee must work 5 consecutive days and then
receive two days off. Find the minimum number of
employees needed.

• Mon Tue Wed Thur Fri Sat

Sun
• Staff req. 17 13 15 19 14 16 11
 Diet Example
• Ms. Fidan’s diet requires that all the food she eats come
from one of the four “basic food groups“. At present, the
following four foods are available for consumption:
brownies, chocolate ice cream, cola, and pineapple
cheesecake. Each brownie costs 0.5$, each scoop of
chocolate ice cream costs 0.2$, each bottle of col1a costs
0.3$, and each pineapple cheesecake costs 0.8$. Each day,
she must ingest at least 500 calories, 6 oz of chocolate, 10
oz of sugar, and 8 oz of fat. The nutritional content per unit
of each food is shown in Table. Formulate an LP model that
can be used to satisfy her daily nutritional requirements at
minimum cost.
 Advertisement Example

• Dorian makes luxury cars and jeeps for high-income

men and women. It wishes to advertise with 1 minute
spots in comedy shows and football games. Each
comedy spot costs $50K and is seen by 7M high-
income women and 2M high-income men. Each
football spot costs $100K and is seen by 2M high-
income women and 12M high-income men. How can
Dorian reach 28M high-income women and 24M
high-income men at the least cost.
 Example
• Sailco must determine how many sailboats to produce
in the next 4 quarters The demand is known to be 40,
60, 75, and 25 boats. Sailco must meet its demands. At
the beginning of the 1st Sailco starts with 10 boats in
inventory. Sailco can produce up to 40 boats with
regular time labor at $400 per boat, or additional boats
at $450 with overtime labor. Boats made in a quarter
can be used to meet that quarter's demand or held in
inventory for the next quarter at an extra cost of $20.00
per boat.
 Customer Service Level Example
• CSL services computers. Its demand (hours) for the time of
skilled technicians in the next 5 months is
• t Jan Feb Mar Apr May
• dt 6000 7000 8000 9500 11000

• It starts with 50 skilled technicians at the beginning of

January. Each technician can work 160 hrs/month. To train a
new technician they must be supervised for 50 hrs by an
experienced technician. Each experienced technician is paid
$2K/mth and a trainee is paid $1K/mth. Each month 5% of the
skilled technicians leave. CSL needs to meet demand and
minimize costs.