10/9/2015

HS 455: Industrial Operations Management 4th Year,

Chemical Engineering Fall 2015

Alyaa Abdelhalim, Ph.D.

Assistant Professor, Production Engineering
Department, Alexandria University

Dr. Alyaa Abdelhalim, Production Engineering Department, Alexandria University

Course Content
Topic
Week
Lecture 1 Lecture 2
3th Oct Introduction Formulation
10th Oct Linear Programming (LP) 1 Linear Programming (LP) 1
17th Oct Linear Programming (LP) 2 Linear Programming (LP) 2
24th Oct Linear Programming (LP) 3 Linear Programming (LP) 3
31st Oct Assignment Assignment Exercises
7th Nov Transportation Transportation Exercises
14th Nov Midterm Exam
21st Nov Organizational Structural & Management issues
28th Nov Advanced Topics & Problem Solving
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Course Objectives
Students will be aware of the following :
Linear programming application in operations management,
Mathematical and graphical solutions,
Industrial organization and management duties.

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Course References
Fredrik S. Hillier, "Introduction to Operations Research," Seventh Edition,
McGraw-Hill, 2001.
Render, Stair, and Hanna, Quantitative Analysis for Management, Tenth
Edition, Prentice Hall, 2009.
James Orlin, Optimization Methods in Management Science and
Operations Research, Lecture Notes, MIT, Massachusetts, Spring 2013.

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Dr. Alyaa Abdelhalim, Production Engineering Department, Alexandria University

Dont underestimate your power to change

yourself
Dont overestimate your power to change others !
Dr Wayne Dyer

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Introduction to Operations Research

Introduction
Many management decisions involve trying to make the most effective
use of limited resources
Machinery,
labor,
money, Operations
time,
warehouse space,
Research
raw materials (OR)
.
.
. . . etc
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What is Operations Research

Operations Research ( OR) Is the application of scientific
methods in solving problems facing management and to help to
taking decisions.
A rose by any other name
Management Science
Systems Engineering
Industrial Engineering
Operations Management
Applied Mathematics
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Origin of Operations Research

In England during World War II
In the end of the war, the ideas advanced in military operations
were adapted to improve efficiency and productivity in the civilian
sector.
Today, OR is a dominant decision making tool.

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The Value of Operations Research

Making sense of data
big data
social network info, transactional data, polls
Dealing with complexity and uncertainty
understanding systems
making a good choice when there are billions of options (e.g., partitioning with 50
items)
making good choices in an uncertain world
Using mathematical models to augment our own thinking.
develop insights
develop plans
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OR Basic Problems Classification

Distribution Problems Inventory Management
transportation problem Howmuch to order?
assignment problem When to order?

Project Management Waiting Lines

Planning, scheduling and Computer Simulation
controlling projects
Game Theory

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Some Skills for Operations Researcher

Modeling Skills
Take a real world situation, and model it using mathematics

Methodological Toolkit
Optimization
Probabilistic Models

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Optimization
is everywhere:
Personal choices Company choices
best career choices, maximize value to shareholders
best use of our time determine optimal mix of products
best strategies, minimize production costs
best value for the dollar minimize cost of logistics
maximize value of advertising
hire the best workers
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Modeling Process

Recognition and Formulation and

Real-World Construction of the
Definition of the
Problem Mathematical Model
Problem
Feed back

Interpretation
Validation and
Solution
Sensitivity Analysis
Implementation of the Model
of the Model
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Modeling Process Contd

Mathematical Model
Reality Model

Finding a proper balance between the

level of simplification of reality and
good representation of reality.

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Linear Programming: Formulation

Linear Programming (LP)

Linear programming is a central topic in Optimization
LP is a very powerful tool in modeling many real world problems
and applications
Linear Programming refers to the model with linear objective
function and linear constraints

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OR Model Types
Linear Program (LP) Queuing Models
Integer Linear Program (IP or ILP) Simulations
Non-Linear Program (NLP) Game theory
Dynamic Program (DP)
Goal Program (GP)

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OR Solution Phases
Definition of the problem
Construction of the model(s)
Solution of the model(s)
Verification of the model(s)
Validation of the model(s)
Implementation of recommended actions based on the
solution(s)

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OR Basic Formulation Terminology

Parameters Represents the input values to the model that can not be
changed during the solution of a model.
Decision Variable Represents an alternative available to the decision-
Maker.
Objective Function A (usually real-valued) function measuring the
goodness of alternatives.
Constraint An restriction on the set of alternatives that may be
considered.

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Decision Variables
The elements that are under the control of the decision
maker.
The work schedules of each employee
The level of investments in a portfolio
what subjects a student should take in each semester
DO YOU HAVE OTHER EXAMPLES IN MIND?

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Objective Function
A single objective function (of the decision variables)
minimize cost or distance or
maximize expected return or utilization or
make the last semester as enjoyable as possible or

A multiple objective functions (Goal Programming)

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Constraints
Restrictions on the decision variables
Business rules
No worker can work more than 5 consecutive days
There is at most 2% investment in any stock in the portfolio
Students must take a prerequisite of a subject before taking the subject
Physical laws
No worker can work a negative amount of time!
The amount of a goods in inventory at the end of a period is the amount of goods
arriving during that period plus the amount of goods in inventory from previous
period minus the amount of goods that are sold in the period.
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Example: Eating Contest

John is in a pie eating contest that lasts 1 hour. Each tart that he
eats takes 2 minutes. Each apple pie that he eats takes 3
minutes. He receives 4 points for each tart and 5 points for each
pie. What should John eat so as to get the most points?

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Step 1. Determine the Decision Variables

the number of tart eaten by John: let it be x

the number of pies eaten by John: Let it be y

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Step 2. Determine the Objective Function

Maximize z = 4x + 5y (objective function)

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Step 3. Determine the Constraints

subject to 2x + 3y 60 (constraint)
x 0 ; y 0 (non-negativity constraints)

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Flair Furniture Company

The Flair Furniture Company produces inexpensive tables and chairs
Processes are similar in that both require a certain amount of hours of
carpentry work and in the painting and varnishing department
Each table takes 4 hours of carpentry and 2 hours of painting and
varnishing
Each chair requires 3 of carpentry and 1 hour of painting and varnishing
There are 240 hours of carpentry time available and 100 hours of painting
and varnishing
Each table yields a profit of $70 and each chair a profit of $50

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Flair Furniture Company

The company wants to determine the best combination of tables and
chairs to produce to reach the maximum profit
HOURS REQUIRED TO
PRODUCE 1 UNIT
AVAILABLE HOURS
DEPARTMENT (T) TABLES (C) CHAIRS
THIS WEEK
Carpentry 4 3 240
Painting and varnishing 2 1 100
Profit per unit $70 $50

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Flair Furniture Company

The decision variables are
T = number of tables to be produced per week
C = number of chairs to be produced per week
The objective is to
Maximize profit
The constraints are
1. The hours of carpentry time used cannot exceed 240 hours per week
2. The hours of painting and varnishing time used cannot exceed 100
hours per week

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Flair Furniture Company

The LP objective function:
Maximize profit = $70T + $50C
Develop mathematical relationships for the two constraints
For carpentry, total time used is
(4 hours per table)(Number of tables produced)
+ (3 hours per chair)(Number of chairs produced)
We know that
Carpentry time used Carpentry time available
4T + 3C 240 (hours of carpentry time)
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Flair Furniture Company

Similarly
Painting and varnishing time used
Painting and varnishing time available
2 T + 1C 100 (hours of painting and varnishing time)
This means that each table produced requires two hours of painting
and varnishing time

Both of these constraints restrict production capacity and affect total profit

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Flair Furniture Company

The values for T and C must be nonnegative
T 0 (number of tables produced is greater than or equal to 0)
C 0 (number of chairs produced is greater than or equal to 0)
The complete problem stated mathematically
Maximize profit = $70T + $50C
subject to
4T + 3C 240 (carpentry constraint)
2T + 1C 100 (painting and varnishing constraint)
T, C 0 (nonnegativity constraint)
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Holiday Meal Turkey Ranch

The Holiday Meal Turkey Ranch is considering buying two
different brands of turkey feed and blending them to provide a
good, low-cost diet for its turkeys
COMPOSITION OF EACH POUND OF MINIMUM MONTHLY
INGREDIENT FEED (OZ.) REQUIREMENT PER
BRAND 1 FEED BRAND 2 FEED TURKEY (OZ.)
A 5 10 90
B 4 3 48
C 0.5 0 1.5
Cost per pound 2 cents 3 cents
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QUESTIONS?

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