Operation Research

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OPERATION RESEARCH

OPERATION RESEARCH:
Operation research is a field of study and problems solving that uses mathematical and analytical
techniques to address complex decision making and optimization problems in various domains.
Operation research is primarily concerned with improving and optimizing processes systems and
organizations to make better decisions and achieve outcomes.

IMPORTANCE:

1. Decision Support: OR provides valuable tools and techniques to support complex decision
making processes in various fields, helping organizations make informed choices
2. Efficiency Improvement: It aids in optimizing resources, processes, and logistics, leading to
increased efficiency and cost reduction in operations.
3. Problem Solving: OR offers systematic problem-solving methodologies to address real-world
challenges, such as supply chain optimization and scheduling.
4. Risk Management: OR helps in assessing and mitigating risks by modeling and analyzing
various scenarios to make robust decisions.
5. Innovation and Productivity: OR fosters innovation by finding new ways to streamline
operations and increase productivity through quantitative analysis and modeling.
6. Strategic Planning: It plays a crucial role in long-term strategic planning, enabling
organizations to set objectives and develop action plans based on data-driven insights.
7. Interdisciplinary Application: OR is versatile and applicable in diverse sectors, including
healthcare, finance, transportation, and manufacturing, making it a valuable tool for decision
makers across industries.

FEATURES OF OR:

CREATING A MODEL: OR first makes a model. A model is a logical representation of a


problem. It shows the relationship between the different variables in the problem. It is lust like a
mathematical formula.

e.g; assets – liabilities = capital + accumulated reserves.

SHOWS IMPORTANT VARIABLES: OR sows the variables which are important for solving
the problem, many of the variable are uncontrollable.

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SYMBOLIZES THE MODEL: the OR model, its variables and goals are converted into
mathematical symbols. These symbols can be easily identified, and they can be used for
calculations.

ACHIEVEING THE GOAL: The main goal of OR is to select the best solution for solving the
problem.

QUANTIFYING THE MODEL: all variables in the OR model are quantified. That is they are
converted into numbers. This is because only quantified data can be put into the model to get
results.

INTERDISCIPLINARY: OR is an interdisciplinary field, because it uses techniques form


economics, mathematics, chemistry physics etc.

HIGHEST EFFICIENCY: The main aim of OR is to make decisions and solve problems. This
results in the highest possible effieciency.

SCOPE OF OPERATION RESEARCH:

1. IN AGRICULTURE: operation research play an important role in agriculture sector because


with the sudden increase of population and resulting shortage of food, every country is facing
the problem of;
 Optimum allocation of land to a variety of crops as per the climatic conditions.
 Optimum distribution of water from numerous resources like canal for irrigation
purposes.

Hence there is a requirement of determining best policies under the given restrictions. Therefore,
a good quantity of work can be done in this direction through the help of operation research
techniques and methods.

2. IN FINANCE: In these recent times in economic crisis, it has become very essential for every
government to do a careful planning for the economic progress of the country, operation
research techniques can be productively applied;
 To determine the profit plan for the country.
 To maximize the per capita income with least amount of resources.
 To decide on the best replacement policies etc.

3. IN INDUSTRY: If the industry managers make their policies simply on the basis of his past
experience and a day approaches when he gets retirement, then a serious loss is encounter
ahead of the industry. This heavy loss can be right away compensated through appointing a
young specialist of operation research techniques in business management. Thus OR is helpful
machine, material, etc. to reach at the optimum decision.

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4. IN MARKETING: With the assistance of operation research techniques a marketing
administration can decide upon;
 Operation research helps in minimizing the total transportation cost of products for sale
 The minimum per unit sale price.
 The size of the stock to come across with the future demand.
 Helps in choosing the best advertising media with respect to cost, time etc.
 How, when and what to buy at the minimum likely cost.

5. IN PERSONAL MANAGEMENT: operation research techniques helps in personal


management by;
 Appointing the highly suitable person on minimum salary.
 To know the best age of retirement for the employee.
 To find out the number of persons appointed in full time basis when the workload is
seasonal.

6. IN PRODUCTION MANAGEMENT: a production manager can utilize operation research


techniques to;
 To calculate the number and size of the items to be produced.
 In scheduling and sequencing the production machines.
 In computing the optimum product mix.
 To choose, locate and design the sites for the production plans.

LIMITATIONS OF OPERATION RESEARCH:


 Operation research is interdisciplinary of mathematical sciences.
 It needs personnel skills of stats and maths.
 Most of the managers are not well proficient in such activities.
 They depends on OR specialist.
 There are occurrence of coordination issues between OR specialist and business
operations teams or managers.
 OR makes extensive use of computers.
 The most popular OR techniques like simulations, linear programming, data mining,
game theory and decision tree analysis are suffering from inbuilt flaws.
 Operation research is very costly.

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 It is only based on quantifiable factors and expressed in terms of numbers and
expressions only. It does not consider human behavior issues.
 Sometimes the results of operation research show disconnection to real world business
conditions
 Operation research consumes a lot of time.

PHASES OF OPERATION RESEARCH:


1. JUDGMENT PHASE: This consists of;
 Determination of the operation.
 Establishment of the objectives and values related to the operation.
 Determination of the suitable measures of effectiveness and
 Formulation of the problems relative to the objectives.

2. RESEARCH PHASE: this phase utilizes;


 Operation and data collection for a better understanding of the problems.
 Formulation of hypothesis and model.
 Observation and experimentation of the hypothesis on the basis of additional data.
 Analysis of the available information and verification of the hypothesis using pre-
established measures of effectiveness.
 Predictions of various results from the hypothesis.
 Generalization of various results and consideration of alternative methods.

3. ACTION PHASE: this phase consists of making recommendations for the decision making
process by those who first posed the problem for consideration or by anyone in a position to
decide, influencing the operation in which the problem occurred.

LINEAR PROGRAMMING: linear programming is a technique in algebra that uses linear


equations to determine how to arrive at the optimal situation (maximum and minimum) as an
answer to a mathematical problem, assuming the finiteness of resources and the quantifiable
nature of the end optimization goal.
Linear programming is a mathematical technique used for optimizing the allocation of limited
resources to achieve a specific objective. In the context of resource allocation, linear
programming helps find the most efficient way to distribute resources among different activities
or projects while adhering to constraints.
For example, in a business setting, linear programming could be applied to optimize production
schedules, distribution of resources among various departments, or even budget allocation. The
objective is to maximize or minimize a certain quantity (like profit or cost) while considering
constraints such as resource availability, production capacities, and demand requirements.

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The process involves formulating a linear objective function and a set of linear constraints that
represent the limitations on resources. The simplex method or other optimization algorithms are
then employed to find the optimal solution that maximizes or minimizes the objective function
within the given constraints.
LINEARITY REQUIRMENTS:
LINEAR OBJECTIVE FUNCTION:
 The objective function, which represents what you want to maximize or minimize (e.g.,
profit or cost), must be linear. This means it should be a linear combination of decision
variables, each multiplied by a constant coefficient.
LINEAR CONSTRAINTS:
 Constraints represent limitations or restrictions on the decision variables. These
constraints must also be linear.
 Each constraint should be an equality or inequality relationship involving decision
variables, constants, and arithmetic operations, and the sum of decision variables in each
constraint should have a coefficient of 1.

PROPORTIONAL RELATIONSHIP:
 Linearity implies proportionality. If doubling the value of a decision variable results in
twice the contribution to the objective function or the constraint, the relationship is linear.

These linearity requirements enable the use of mathematical optimization techniques, such as the
simplex method, to find the optimal solution efficiently. Non-linear elements can make the
problem significantly more complex and may require different optimization methods.

GRAPHICAL METHOD: the technique used in operation research to find out the optimal
solution of a problem is graphical method. The graphical method is used to optimize the two-
variable linear programming. If the problem has two decision variables, a graphical method is the
best method to find the optimal solution. In this method, the set of inequalities are subjected to
constraints.

STEPS:

 Step 1: Formulate the LP (Linear programming) problem.


 Step 2: Construct a graph and plot the constraint lines.
 Step 3: Determine the valid side of each constraint line.
 Step 4: Identify the feasible solution region.
 Step 5: Plot the objective function on the graph.
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 Step 6: Find the optimum point.

SIMPLEX METHOD: In operations research, the simplex method is a popular algorithm used
to solve linear programming (LP) problems. Linear programming involves optimizing a linear
objective function subject to linear equality and inequality constraints. The simplex method
iteratively moves from one feasible solution to another along the edges of the feasible region
until an optimal solution is reached.

STEPS:
 Set up the problem. Write the objective function and the constraints.
 Convert the inequalities, this is done by adding one slack variable for each inequality.
 Construct the initial simplex tableau.
 Find the most negative entry in the bottom row identifies he pivot column.
 Calculate the quotients, the smallest quotient identifies a row.
 Perform pivoting to make all other entries in this column zero.
 When there are no any negative entries in the bottom row, we are finished, otherwise we
start again.

BIG M METHOD: In operations research, the Big M method is a method of solving linear
programming problems using the simplex algorithm. The Big M method extends the simplex
algorithm to problems that contain "greater-than" constraints. It does so by associating the
constraints with large negative constants which would not be part of any optimal solution, if it
exists.

STEPS:
 Multiply the inequality constraints to ensure that the right hand side is positive.
 If the problem is of minimization, transform to maximization by multiplying the
objective by −1.
 For any greater-than constraints, introduce surplus si and artificial variables ai (as shown
below).
 Choose a large positive Value M and introduce a term in the objective of the form −M
multiplying the artificial variables.
 For less-than or equal constraints, introduce slack variables si so that all constraints are
equalities.
 Solve the problem using the usual simplex method.

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TWO PHSES METHOD: The Two-Phase Method is a technique used in linear programming
within the field of operations research. Linear programming is a mathematical approach for
optimizing the allocation of resources to achieve a specific objective, subject to a set of linear
constraints.
The Two-Phase Method is employed when a linear programming problem has constraints that
are not in the standard form. The standard form of a linear programming problem requires all
constraints to be in the form of linear equations or inequalities, with variables on one side and
constants on the other side.
The Two-Phase Method consists of two phases:

1. **Phase One: Initialization**


- Artificial variables are introduced to convert the problem into a form suitable for
further optimization.
- The objective in this phase is to minimize the sum of artificial variables while
satisfying the non-standard constraints.
- Linear programming techniques are applied to find an initial feasible solution. If the
initial solution is feasible (i.e., all artificial variables are zero), the problem is ready for
Phase Two. If not, additional iterations are performed to improve feasibility.

2. **Phase Two: Optimization**


- The artificial variables are eliminated from the problem, and the original objective
function is reintroduced.
- The problem is now in standard form, and conventional linear programming methods,
such as the simplex method, can be applied to find the optimal solution.
- The objective in this phase is to optimize the original objective function while satisfying the
standard linear constraints.

The Two-Phase Method is particularly useful when dealing with linear programming problems
that involve artificial variables. It allows the transformation of a non-standard problem into a
standard form, facilitating the application of established linear programming algorithms to find
an optimal solution. Once the Two-Phase Method is completed, the solution obtained in Phase
Two represents the optimal solution to the original linear programming problem.

NORTHWEST CORNER METHOD: The Northwest Corner Method is an algorithm used to


find an initial feasible solution for a transportation problem. It starts from the northwest corner of
the transportation tableau (matrix) and allocates shipments to cells in a way that satisfies supply
and demand constraints. The method sequentially moves to the next available cell in a

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"northwest" direction, making allocations until all supplies and demands are met. While simple,
the Northwest Corner Method does not necessarily yield an optimal solution.
METHOD:
 Begin in the upper-left (northwest) corner of the cost matrix.
 Allocate as many units as possible to the cell in the northwest corner, considering the
minimum of the corresponding row's supply and column's demand.
 Adjust the remaining supply and demand for the row or column where the allocation
occurred
 Move to the next cell in the transportation table (either right or down) and repeat the
allocation process until all supply and demand are satisfied.

LEAST COST METHOD: The Least Cost Method is another approach for obtaining an initial
feasible solution in transportation problems. This method involves selecting the cell with the
lowest transportation cost and making allocations based on the minimum of the corresponding
row's supply and column's demand. After each allocation, supplies and demands are adjusted,
and the process is repeated by identifying the next least-cost cell until all supply and demand
requirements are satisfied. Like the Northwest Corner Method, the Least Cost Method provides a
starting point for more sophisticated optimization techniques.
METHOD:
 Start by identifying the cell with the lowest transportation cost. If there are ties, choose
arbitrarily.
 Allocate as many units as possible to the identified cell, considering the minimum of the
corresponding row's supply and column's demand.
 Adjust the remaining supply and demand for the row or column where the allocation
occurred.
 Recalculate transportation costs for all remaining cells and identify the next lowest cost
cell.

TRANSPORTAION MODEL: A transportation model is a type of linear programming model


used for optimizing the distribution of goods from multiple suppliers to multiple destinations. It
is particularly useful in logistics and supply chain management. The model aims to minimize the
total transportation cost while satisfying constraints related to supply and demand.

ASSUMPTIONS OF A TRANSPORTATION MODEL:

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 Fixed Supply And Demand: The model assumes that the supply at each source and the demand
at each destination are fixed and known.
 Single Unit Transport: It assumes that the goods are homogeneous and are transported in
identical units. The transportation cost is usually expressed per unit.
 Cost Proportional To Quantity Shipped: The cost of transporting goods between any pair of
source-destination is assumed to be directly proportional to the quantity of goods shipped.
 No Intermediate Transshipment: Direct shipments from sources to destinations are considered.
Intermediate transshipment points are not allowed in the basic transportation model.
 Balanced Transportation: The total supply equals the total demand. In other words, the sum of
quantities supplied from all sources equals the sum of quantities demanded at all destinations.
 Non-Negative Variables: Decision variables, representing quantities shipped from sources to
destinations, are assumed to be non-negative.
 Linearity Of Costs: The costs associated with transportation are assumed to be linear. This
means that the total transportation cost is the sum of the costs for each shipment.
 Full Shipment: Each source can fully supply its available quantity, and each destination can
fully receive its demanded quantity. There are no partial shipments.
 The transportation model, based on these assumptions, allows businesses to find an
optimal distribution plan that minimizes transportation costs while meeting the supply
and demand requirements. The solution is typically obtained using optimization
algorithms such as the transportation simplex method.

 A feasible solution in the context of linear programming and transportation problems is a


solution that satisfies all the constraints of the problem. For transportation problems, a feasible
solution ensures that the total supply from sources equals the total demand at destinations, and
shipments are non-negative.
Now, let's discuss two methods commonly used to find initial feasible solutions in transportation
problems:

There are basically two methods to test the optimality for transportation problem,
1. modified distribution method (MODI)
2. Stepping stone method

STEPPING STONE METHOD: The Stepping Stone Method is used to check the optimality of
the initial feasible solution determined by using any of the method Viz. North-West Corner,

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Least Cost Method or Vogel’s Approximation Method. Thus, the stepping stone method is a
procedure for finding the potential of any non-basic variables (empty cells) in terms of the
objective function.
Through stepping stone method, we determine that what effect on the transportation cost would
be in case one unit is assigned to the empty cell. With the help of this method, we come to know
whether the solution is optimal or not.

STEPS

 Ensure the number of occupied cells equals m+n-1 (m=rows, n=columns).


 Create closed loops satisfying conditions:
 Consecutive used cells in the same row or column.
 No three consecutive occupied cells in the same row or column.
 First and last cells in the closed loop in the same row or column.
 Only allow horizontal and vertical movement.
 Assign "+" or "-" alternatively on loop corner cells, starting with "+" on the unoccupied
cell.
 Repeat until all unoccupied cells are evaluated.
 If all changes are non-negative, the optimal solution is reached.
 If any change is negative, identify the most negative change, assign units to the
unoccupied cell, and balance supply and demand by subtracting units from other cells with
a negative signs in the loop.

MODIFIED DISTRIBUTION METHOD:

The modified distribution method is also known as MODI method or U-V method, which
provides a minimum cost solution (optimum solution) to the transportation problem.
Following are the steps involved in this method;
Determine an initial basic feasible solution using any one of the three methods given below:
 North West Corner Rule
 Matrix Minimum Method
 Vogel Approximation Method
2. Determine the values of dual variables, ui and vj, using ui + vj = cij
3. Compute the opportunity cost using cij – ( ui + vj ).
4. Check the sign of each opportunity cost. If the opportunity costs of all the unoccupied cells are
either positive or zero, the given solution is the optimal solution. On the other hand, if one or
more unoccupied cell has negative opportunity cost, the given solution is not an optimal solution
and further savings in transportation cost are possible.

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5. Select the unoccupied cell with the smallest negative opportunity cost as the cell to be
included in the next solution.
6. Draw a closed path or loop for the unoccupied cell selected in the previous step. Please note
that the right angle turn in this path is permitted only at occupied cells and at the original
unoccupied cell.
7. Assign alternate plus and minus signs at the unoccupied cells on the corner points of the
closed path with a plus sign at the cell being evaluated.
8. Determine the maximum number of units that should be shipped to this unoccupied cell. The
smallest value with a negative position on the closed path indicates the number of units that can
be shipped to the entering cell. Now, add this quantity to all the cells on the corner points of the
closed path marked with plus signs, and subtract it from those cells marked with minus signs. In
this way, an unoccupied cell becomes an occupied cell.
Repeat the whole procedure until an optimal solution is obtained.

ASSIGNMENT PROBLEM: assignment problem is a special type of linear programming


problem where the objective is to minimize the cost or time of completing a number of jobs by a
number of persons. The assignment problem in the general form can be stated as follow:
“given the number ‘n’ of facilities and the number ‘n’ of jobs and the effectiveness of each
facility for each job, the problem is to assign each facility to one and only one job in such a way
that the measure of effectiveness is optimized (maximum and minimum)
For example;
A manager has four persons (i.e facilities) available for four separate jobs (i.e jobs) and the cost
of assigning (i.e effectiveness) each job to each person is given. His objective is to assign each
person to one and only one job is such a way that the total cost of assignment is minimized.

BASIC ASSUMPTION:
Assignment of Tasks to Resources:
 The problem involves assigning a set of tasks (jobs, activities, or assignments) to an
equal number of resources (machines, workers, or agents).
 Each task must be assigned to exactly one resource, and each resource can handle only
one task at a time.
Square Cost Matrix:

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 The costs or values associated with assigning each task to each resource are represented
in a square cost matrix.
 The rows of the matrix correspond to tasks, and the columns correspond to resources.
 The entry in the ith row and jth column represents the cost or value associated with
assigning the ith task to the jth resource.
Completeness:
 The assignment must be complete, meaning that every task is assigned to exactly one
resource and every resource is assigned to exactly one task.
No Missing Tasks or Resources:
 There are no missing tasks or resources. The number of tasks is equal to the number of
resources, ensuring a one-to-one assignment.
Objective Function:
 The objective is to minimize or maximize a certain criterion, typically the total cost.
The cost is the sum of the values in the cost matrix corresponding to the assigned tasks.

Optimality:
 The solution is considered optimal when it satisfies the completeness condition and
minimizes or maximizes the objective function.

DIJKSTRA'S ALGORITHM: Dijkstra's algorithm, named after Dutch computer scientist


Edsger W. Dijkstra, is a graph search algorithm that solves the single-source shortest path
problem for a graph with non-negative edge weights, producing a shortest path tree.
Basic Assumptions:

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1. Non-Negative Weights: Dijkstra's algorithm assumes that all edge weights in the graph are
non-negative. This is a crucial assumption for the algorithm to work correctly.
2. Directed or Undirected Graphs: The algorithm can be applied to both directed and
undirected graphs.
Explanation:
 The algorithm maintains a set of vertices whose shortest distance from the source is
known.
 It repeatedly selects the vertex with the minimum distance, explores its neighbors, and
updates their distances if a shorter path is found.
 This process continues until the distances to all vertices are finalized.

FLOYD'S ALGORITHM (Floyd-Warshall Algorithm): The Floyd-Warshall algorithm is a


graph analysis algorithm for finding the shortest paths in a weighted graph with positive or
negative edge weights (but with no negative cycles). It does so by considering all possible
intermediate vertices between any pair of source and destination vertices.
Basic Assumptions:
1 Weighted Graph: Floyd's algorithm assumes a graph with weighted edges, positive or negative,
but with no negative cycles.
Explanation:
 The algorithm uses a dynamic programming approach to compute the shortest paths
between all pairs of vertices in a graph.
 It maintains a matrix where each entry represents the shortest distance between two
vertices considering a certain set of intermediate vertices.
 The algorithm iteratively updates this matrix until all pairs of vertices have been
considered as potential intermediate vertices.

Comparison:
- Dijkstra's algorithm is used when you need to find the shortest path from one source vertex to
all other vertices in a graph.
- Floyd's algorithm is used when you need to find the shortest paths between all pairs of vertices
in a graph.
PAST PAPER AND EXRTA TOPICS:
Certainly, let's go through each of the topics you've mentioned related to operations research:
1. Definition of Operations Research and Essential Features:

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Operations Research (OR) is a scientific approach to decision-making that uses mathematical
modeling and analytical methods to solve complex problems. It involves the application of
quantitative techniques to decision-making processes for the optimal allocation of resources.
Essential Features:
 Decision-Making: OR is focused on decision-making and problem-solving in various fields.
 Quantitative Methods: It utilizes mathematical models and statistical analysis.
 Optimization: The objective is often to optimize or find the best solution among various
alternatives.
 Interdisciplinary: OR draws upon concepts from mathematics, statistics, economics, and
engineering.
 Real-World Applications: It is applied to real-world problems in industries, businesses, and
other sectors.

2. Methodology of Operations Research:


Operations Research follows a systematic methodology:
I. Problem Formulation: Clearly defining the problem and objectives.
II. Model Construction: Developing a mathematical or computational model.
III. Solution: Using mathematical or computational techniques to find solutions.
IV. Validation: Ensuring the solution is reasonable in the context of the problem.
V. Implementation: Applying the solution in the real world.

3. Transportation Model:
The Transportation Model is a type of linear programming model used for optimizing the
distribution of goods from multiple sources to multiple destinations.
Assumptions:
- The total supply equals the total demand.
- Transportation occurs between sources and destinations.
- The transportation cost per unit is constant.

4. Linear Programming Problem (LPP) and Mathematical Formulation:


Linear Programming is a method to achieve the best outcome in a mathematical model whose
requirements are represented by linear relationships.

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Mathematical Formulation:
\[\text{Maximize } Z = c_1x_1 + c_2x_2 + \ldots + c_nx_n\]
Subject to:
\[a_{11}x_1 + a_{12}x_2 + \ldots + a_{1n}x_n \leq b_1\]
\[a_{21}x_1 + a_{22}x_2 + \ldots + a_{2n}x_n \leq b_2\]
\[\vdots\]
\[a_{m1}x_1 + a_{m2}x_2 + \ldots + a_{mn}x_n \leq b_m\]
\[x_1, x_2, \ldots, x_n \geq 0\]

5. Short Notes:
a. Assignment Model:
The assignment model is a special type of linear programming model used for optimizing the
assignment of tasks to resources, with the objective of minimizing the total cost or time. It is
particularly useful when there is a one-to-one correspondence between tasks and resources.

Explanation:
I. Objective: Minimize the total cost or time associated with assigning tasks to resources.
II. Constraints: Each task is assigned to exactly one resource, and each resource is assigned to
exactly one task.
III. Example: It can be applied in job assignments, project task allocations, or employee shift
scheduling.

b. Inventory Management System:


Inventory management involves the control and oversight of the storage, ordering, and usage of
materials or products within an organization. The primary goal is to maintain optimal levels of
inventory to meet customer demand while minimizing holding costs.

Explanation:
I. Objectives: Ensure product availability, minimize holding costs, and prevent stockouts.
II. Key Components: Includes ordering policies, reorder points, economic order quantity (EOQ),
safety stock, and demand forecasting.

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III. Methods: Just-In-Time (JIT), ABC analysis (categorizing items based on importance), and
various inventory control models are often employed.

c. Stepping Stone Method:


The stepping stone method is a technique used in solving transportation problems, which are
linear programming problems related to the optimal distribution of goods from multiple sources
to multiple destinations.
Explanation:
I. Objective: Enhance the initial feasible solution obtained in a transportation problem.
II. Process: Identify and evaluate unused cells in the initial solution (represented as a
matrix). Move along the 'stones' (non-diagonal cells) to find an improved solution.
III. Application: Helps refine the initial transportation solution for better cost efficiency.

d. Decision Making Under Risky Condition:


Decision making under risky conditions involves making choices when outcomes are uncertain
and subject to probability. It is a crucial aspect of decision theory that acknowledges the
unpredictability of future events.
Explanation:
I. Risk Assessment: Evaluate the likelihood and potential impact of various outcomes.
II. Decision Criteria: Consider factors such as expected value, utility, and risk tolerance.
III. Tools: Decision trees, Monte Carlo simulations, and sensitivity analysis are used to
analyze and manage risks.
IV. Example: Investment decisions, product development, and strategic planning involve
uncertainty and require decisions under risky conditions.

7. Introduction to Foundation Mathematics and Statistics:

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Foundation mathematics and statistics provide the mathematical and statistical tools necessary
for operations research, including concepts like algebra, calculus, probability, and statistical
analysis.

8. Definition of Linear Programming and Resource Allocation:

Linear Programming (LP):


A method to achieve the best outcome in a mathematical model with linear relationships.
Resource Allocation:
Optimally distributing resources to achieve a specific objective.

9. Sensitivity Analysis of Linear Programming:

- Changes in Objective Functions:* Examining the impact of changes in coefficients of the


objective function.
- Changes in RHS (Right Hand Side): Analyzing the effect of changes in the right-hand side
values of constraints.

10. Feasible Solution and Optimal Solution:


- Feasible Solution: A solution that satisfies all constraints.
- Optimal Solution: The best feasible solution that either maximizes or minimizes the objective
function.

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