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