Mattu University

College of Business and Economics

Department of Management
Operations Research course outline for
Management students(4th Year)
Credit hours: 3
Academic Year:2015 E.C; Semester: 1
Course Description
• Problems solving and decision making are vital skills
in all areas of management.
• Operations research as discipline devoted to the
solution of management problem using a scientific
approach.
• The problem is viewed as the focal point of analysis,
and quantitative model are the vehicles by which
solutions are obtained.
• This course introduces several quantitative concepts
and computational tools used by managers to
determine solutions to complex problems and
thereby selecting the best solution.
• It provides an introduction to the concepts and
methods of decision science, which involves
application of mathematical modeling and
analysis to management problems.
• You will gain an understanding of modeling and
rational approaches to decision making and
their contribution to organizational
effectiveness.
• Analysis and communication are emphasis by
using real world applications and cases.
Course Objective:
Up on completing this course, you should be able to:
 Develop analytical skills in structuring and analysis (scientific method)
of business decision problems which characterized the field of
operation research or management science.
 Develop awareness of the complementary nature of the rational and
behavioral approaches to decision making and planning and sharpen
your ability to structure problems and to perform logical analysis.
 Use selected software to generate computer solutions of the models.
 Learn, through case studies, the applications of operation research or
management science to find solutions to real life business problems
including those in global environment.
 Demonstrate skills in communicating the analysis and results of
business decision problems and to work as a member of a team.
 Use the knowledge gained from this course to continuing life-long
learning in decision technologies to aid business decision making and
planning.
UNIT ONE: INTRODUCTION TO OPERATIONS
RESEARCH
1.1. The History of Operations Research
1.2. Nature and significance of operations research
1.3. Features of Operations Research
1.4. Model and modeling in Operations Research
UNIT TWO: LINEAR PROGRAMMING
2.1 Introduction
2.2 Structure of Linear Programming Model
2.3 Application Area of LP
2.4 Graphical Solutions of LPP
2.5 Special Case in LPP
2.6 The Simplex Method
2.7 Some complication and their Resolution
2.7.1. Unrestricted variables
2.7.2. Tie for leaving and entering variables
2.8 Duality in LPP
2.9 Sensitivity Analysis
UNIT THREE: TRANSPORTATION AND ASSIGNMENT
PROBLEMS
3.1 Introduction
3.2 Methods for Finding Initial Solution
3.3 Test for Optimality
3.4 Variation in Transportation
3.4.1. Unbalanced supply and demand
3.4.2. Degeneracy
3.4.3. Alternate optimal solution
3.4.4. Prohibited transportation routes
3.5 Maximization Transportation problems
3.6 Solution method for Assignment problem
3.7 Special case in Assignment Problems
UNIT FOUR: DECISION THEORY
4.1 Introduction
4.2 Types of Decision-Making Environment
4.3 Decision making under Uncertainty
4.4 Decision making Under Risk
4.5 Decision making Under Certainty
4.6 Decision Making with Utilities
UNIT FIVE: NETWORK MODELS
5.1 General network concepts
5.2 Networking algorithms
5.3 Basic Difference Between PERT and CPM
5.4 PERT/CPM Network Components and
precedence Relationship
UNIT SIX: GAME THEORY
6.1 Introduction
6.2 Two-person Zero-Sum Game
6.3 Pure Strategies: Game with Saddle Point
6.4 Mixed Strategies: Game without Saddle Point
6.5 The Rule of Dominance
UNIT SEVEN: QUEUING ANALYSIS
7.1 Introduction
7.2 Queuing system
7.3 Queuing system performance measures
7.4 Queuing model
Course Policy
• It is compulsory to come to class on time and every time.
If you are going to miss more than three classes during
the term, you should not take this course.
• You must do your assignment on time. No late
assignment will be accepted.
• You will have short quizzes and tests. If you miss the class
or, are late to class, you will miss the quiz or test. No
makeup test or quizzes will be given.
• You must do your own work and do not copy and get
answer from someone else. PLEASE BE SURE TO TURN
OFF YOUR CELL PHONES BEFORE CLASS AND EXAM
SESSION.
Assessment techniques:
Continuous assessment (60%)
 Quiz……………………………………. 10%
 Assignment…………………………. 20%
 Mid-exam …………………………… 30%
Final examination (40%)…………. 40%
Total …………………………………………………….. 100%
References
 Anderson, Sweeney, and Williams. Management
Science, 8th ed. West Pub.co.
 M.P.Gupta R.B. Khanna, Quantitative Techniques
for Decision Making, New Delhi, 2004
 Turban and Meredith, management Science,6th
ed. IRWIN
 Render and Stain, Quantitative Analysis for
Management, 6th ed.
 Bernard W. Taylor, Introduction to Management
Science, 9th ed.