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LESSON PLAN
MBA SEMESTER I 2007

## Subject: Applied Operations Research

Subject Code: MB 301 Assessment Scheme
Start Date: External Assessment: 60 marks
Completion Date: Internal Assessment: 40 marks
No. of Weeks: 16
Session per week: 5
Session Duration: 55 minutes

## Sessions Topic References

Introduction to Operations Research
3  Introduction & nature of OR T1 – Ch 1; R2 – Ch 1
 Features of OR T1 – Ch 1
 Types of OR models T1 – Ch 1; R2 – Ch 1
 Principles of OR modeling T1 – Ch 1
 Phases & Processes of OR T1 – Ch 1
T1 – Ch 1; R2 – Ch 1
 Techniques or tools of OR
 Limitations of OR
Linear Programming ( Formulation & graphic
methods) T1 – Ch 2
 Meaning & definition of LP T1 – Ch 2
 Basic requirements & assumptions of LP T1- Ch 2
5  Applications of LP methods T1 - Ch 2;
 Solution procedure of LPP T1 – Ch 2
 Formulation of LPP T1 – Ch 2/R3 –Ch 3
o Maximization problems
o Minimization problems
o Graphical problems
 Merits & Demerits of LPP
LPP Simplex Methods T1: Ch 3; R3 : Ch 4
4  Maximization problem
 Minimization Problem
 Mixed constraints
 Special cases like
o unbounded problems
o infeasible problems
o Multiple Optimal Solutions
o Redundant Constraints

4 Duality T1 : Ch 4; R1: Ch 9
 Introduction
 General framework of duality
 Rules for constructing the Dual Problem
 Interpreting the Primal Dual relationship
2 Sensitivity Analysis R1: Ch 12; R2: Ch 2 ; R3:
Ch 6
Transportation Problems T1: Ch 7; R1: Ch 13; R2:
5  Introduction, meaning & definition Ch 3
 Assumptions of Transportation Model
 Steps to find optimal solution
 Methods for initial basic feasible solution
o North west corner method
o Least cost entry method
o Vogel’s approximation method
 Optimality test
o Stepping stone
o MODI method
 Special cases like
o Unbalanced problem
o Degeneracy
o Redundant constraint
1 Transshipment problems R3: Ch 7

## 5 Assignment models T1: Ch 6 ; R1: Ch 14

 Introduction
 minimization problem(Hungarian method)
 maximization problem
 traveling salesmen problem
 un-balanced assignment problem
 air crew assignment
 prohibited assignment or constrained assignment
problem
3 Replacement models T1: Ch 8 ; R1: Ch 11; R2:
 introduction Ch 8
 types of replacement
o replacement policy for items deteriorating
with time
o RP for items deteriorating with time +
money value also changes
o RP for items breaking down suddenly
o Staff replacement
o Other misc. replacements
3 Queuing theory T1: Ch 9; R3: Ch 20
 Introduction
 Features of queuing system
 Service system
 Queuing situation
 Notations
 Queuing models
o Probabilistic
o Deterministic
o mixed
3 Inventory control T1: Ch 10; R1: Ch 10; R2:
 introduction Ch 5; R3: Ch 15
 types of inventories
 terminologies connected with IC
 objectives of IC
 scope of IC
 deterministic models of IC
2 Dynamic programming problem(DPP) T1: Ch 5; R3: Ch 18,19
 introduction
 features of DPP
 computational procedure of DPP
 types of DPP
4 Game theory T1: Ch 11; R1: Ch 17; R3:
 introduction 14
 significance of game theory
 essential features of game theory
 limitations of game theory
 payoff matrix
 competitive game
 types of strategy
o pure strategy
o mixed strategy
 the maximin-minimax principle
 types of problems
o games with pure strategy
o games with mixed strategy
5 Network analysis-PERT & CPM T1: Ch 12; R1: Ch 16; R2:
 introduction 4; R3: Ch 8
 objectives of Network analysis
 applications of network analysis
 terminologies used
 errors in network logic
 rules to frame network
 determination of critical path by CPM
 slack & float
 PERT
 Merits & demerits of PERT
 Limitations of CPM
 Comparison b/w CPM & PERT
 Project cost analysis
 crashing of jobs
 allocation of resources
2 decision making R3: Ch 13
 decision under uncertainty
 decision under risk
 Decision tree analysis.

## Text Book Authors Name of the Book

T1 Chawla, Gupta, Sharma Applied Operations Research
(PTU)

## References Authors Name of the Book

R1 P.K. Tripathi Operations Research
R2 C.K. Mustafi Operations Research methods
and Practices
R3 Wayne L.Winston Operations Research
Applications and Algorithms.

Note: The distribution of 40 marks for the internal assessment will be as follows:
 Mid semester test (MST) will be of 12 marks.
 Two Assignments will be of 4 marks each (i.e. 4*2=8 marks).
 Class participation will be of 4 marks.
 Class tests will be of 4 marks.
 Class presentation will be of 8 marks.
 Attendance will be of 4 marks.