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V.PAVITHRA SUKANYAH .V.K

RIZWANA SULTANA

INTRODUCTI ON

• Modern technological advance growth of scientific techniques • Operations Research (O.R.) recent addition to scientific tools • O.R. new outlook to many conventional management problems • Seeks the determination of best (optimum) course of action of a decision problem under the limiting factor of limited resources

WHAT IS OR?

• Operational

Research can be considered as being the application of scientific method by inter-disciplinary teams to problems involving the control of organized systems so as to provide solutions which best serve the purposes of the organization as a whole.

CHARACTERISTIC NATURE OF OR

Inter-disciplinary team approach • Systems approach • Helpful in improving the quality of solution • Scientific method • Goal oriented optimum solution • Use of models • Require willing executives • Reduces complexity

PHASES TO OR

• Judgment

• Research phase – Observation and data collection – Formulation of hypothesis and models – Observation and experimentation to test the hypothesis – Prediction of various results, generalization, consideration of alternative method

– Determination of the problem – Establishment of the objectives and values – Determination of suitable measures of effectiveness

phase

• Action phase

– Implementation of the tested results of the model

METHODOLOGY OF OR • Formulating the problem • Constructing the model • Deriving the solution – Analytical method – Numerical method – Simulation method • Testing the validity • Controlling the solution • Implementing the result

PROBLEMS IN OR

• Allocation

• Replacement • Sequencing • Routing • Inventory • Queuing • Competitive • Search

OR TECHINIQES

• Linear programming • Waiting line or queuing theory • Inventory control / planning • Game theory • Decision theory • Network analysis – Program Evaluation and Review Technique – Critical Path Method (CPM) etc. • Simulation • Integrated production models

SIGNIFICANCE OF OR

Provides a tool for scientific analysis • Provides solution for various business problems • Enables proper deployment of resources • Helps in minimizing waiting and servicing costs • Enables the management to decide when to buy and how much to buy? • Assists in choosing an optimum strategy • Renders great help in optimum resource allocation • Facilitates the process of decision making • Management can know the reactions of the integrated business systems. • Helps a lot in the preparation of future managers.

LIMITATIONS OF OR

The inherent limitations concerning mathematical expressions • High costs are involved in the use of O.R. techniques • O.R. does not take into consideration the intangible factors • O.R. is only a tool of analysis and not the complete decision-making process • Other limitations – Bias – Inadequate objective functions – Internal resistance – Competence – Reliability of the prepared solution

INTRODUCTION TO LINEAR PROGRAMMING

es needed as inputs to operations are in limited supply. understand the impact of this situation on meeting their objectives. one way that operations managers can determine how best to alloca

Linear programming

help us develop computational solutions for a wide variety ction (tool in your toolbox) ams allows us to embed them in sophisticated algorithmic s blems use the ideas from mathematical programming, linea

BASIC CONCEPT OF LP PROGRAM Objective function Constraints Optimization Solution of lpp. Feasible solution Optimal solution

LP PROBLEMS IN OM: PRODUCT MIX

hat results in maximum profits for the planning period product or service for the planning period

ce demanded; Minimum amount of product or service policy will allo

is to be optimized i.e

maximized or minimized this may be expressed in linea

of the variable x1,x2……xn which satisy the constraints is called the solution of Lpp.

of the variable x1,x2……xn which satisy the constraints and also the non negative conditio

Recognizing LP Problems

Problems in OM objective must be stated. ative courses of action. nt of the objective must be constrained by scarce resources ch of the constraints must be expressed as linear mathema

Steps in Formulating LP Problems

ine the objective. (min or max) ine the decision variables. (positive) te the mathematical function for the objective. te a 1- or 2-word description of each constraint. te the right-hand side (RHS) of each constraint. te <, =, or > for each constraint. te the decision variables on LHS of each constraint. te the coefficient for each decision variable in each constra

Linear Programming

roblem is said to be a linear program if it satisfied the fo objective function. sion variable appears in ctive function or one of the tions, it must appear only as a power term with an exponen lied by a constant.

LP Problems in General

of each term in a constraint must be the same as the RHS of each term in the objective function must be the same as between constraints do not have to be the same blem can have a mixture of constraint types

No term in the objective function or in any of the constraints can contain products of the decision variables. The coefficients of the decision variables in the objective function and each constraint are constant. The decision variables are permitted to assume fractional as well as integer values

Examples of lpp

inequations. here we describe the application of linear equations and inequations i 15 and whose difference is at the most 7 such that the product is maximum. 2 positive numbers be x and y. this x and y are decision variables.

s to minimize the product x ,y we have to maximize z

ollowing conditions on the variables as x and y.

r constraints .the mathemetical constraint of this equation is to maximize the objec

PROBLEMS

d labour and total endowment of skilled labouris1000. Similarly produ

**SOLUTION Max R =10x1 + 5x
**

2

Subject to:

Skilled labour constraint: 25x1 +10x2<=1000 Unskilled labour constraint: 20x1 +50x2 <=1500 Non-negativity constraints: x1 ,x2 >=0

Example: LP Formulation

Pounds of each alloy needed per frame Aluminum Alloy Steel Alloy Deluxe 2 3 deluxe Professional 4

2

e the objective mize total weekly profit e the decision variables = number of Deluxe frames produced weekly = number of Professional frames produced the mathematical objective function ax Z = 10x1 + 15x2

we

Write a one- or two-word description of each constra Aluminum available Steel available Write the right-hand side of each constraint 100 80 Write <, =, > for each constraint < 100 < 80

e decision variables on the left-hand side of ea 100 80 oefficient for each decision in each constraint x2 < 100 x2 < 80

LP in Final Form Max Z = 10x1 + 15x2 Subject To 2x1 + 4x2 < 100 ( aluminum constraint) 3x1 + 2x2 < 80 ( steel constraint) x1 , x2 > 0 (non-negativity constraints

Example:graphical method

**Example:graphical method
**

20

0

x

**Example:graphical method
**

y 20 15 (5,5) 0 x

**Example:graphical method
**

y 20 15 (5,5) 0 x

**Example:graphical method
**

20 15 (5,5) 0 x

**Example:graphical method
**

20 15

0

x

**Example:graphical method
**

20 15 (5,5) 0 x

**Example:graphical method
**

y 20 15 (5,5) 0 x

THE SIMPLEX METHOD

So far we find an optimal point by searching among feasible intersection points. The search can be improved by starting with an initial feasible point and moving to a “better” solution until an optimal one is found. The simplex method incorporates both optimality and feasibility tests to find the optimal solution(s) if one exists

An optimality test shows whether an intersection point corresponds to a value of the objective function better than the best value found so far. A feasibility test determines whether the proposed intersection point is feasible. The decision and slack variables are separated into two nonoverlapping sets, which we call the independent and dependent sets

**THE SIMPLEX METHOD
**

Transform Linear Program into a system of linear equations using slack variables:

THE SIMPLEX METHOD

THE SIMPLEX METHOD

rt from the vertex (x=0 , y=0) ve to the next vertex that increases profit as much as possi

t (0,0), P = 0 Increasing x can increase P the most (x coefficient has larger magnitude than the y coefficient) Compute check ratios to find pivot row (smallest ratio)

ea: Start from a vertex (x=0, y=0) Move to next vertex that increases profit as much as p

can increase P the most (x coefficient has larger magnitude than the eck ratios to findpivot row (smallest ratio) the element inboth pivot column and row

Pivoting means solve for that variable, Then substitute into the other equations

x RHS

y

s1

s2

P

Pivoting means solve for that variable, Then substitute into the other equations x y s1 s2 P RHS

Pivoting means solve for that variable, Then substitute into the other equations

x

y

s1 s2 P

RHS

THE END

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