Subject Code MC305 Course Title Operations Research

Contact Hours L:3 T:0 P:2

Examination hours Theory 3Hrs Practical

Relative weightage CWS:15 PRS-15 MTE-30 ETE40

Credits 4

Semester odd

Subject Area DEC

S. No Contents Contact
Hours
1 Introduction to Operations Research, Linear Programming Problems, basic 12
concepts, general and standard form of LPP, Mathematical formulation,
convex feasible region extreme points and basic feasible solutions, Optimal
solution determination by using Graphical method and Simplex method, Two
phase method, Big M method, application of simplex algorithm case studies
2 Duality in LPP: Dual problem, Duality theorems, Complementarity slackness, 10
Economic interpretation of duality, Dual simplex method, Sensitivity Analysis
3 Integer programming problems: Problem formulation, Branch and bound 04
method, cutting plane algorithm, Applications of LPP.
4. Transportation and assignment models: transportation problem, Duality of 09
Transportation problem, Degeneracy in transportation problem, Solution of
transportation problem (by stepping stone and modified distribution
methods), Transshipment problem, assignment problem, Hungarian method,
Travelling salesman problem.
5. Network Scheduling: Network and basic components, network construction, 05
critical path method (CPM), Program evaluation and review techniques(PERT),
cost of completing project

Suggestion books

1. Operations Research an Introduction , Hamdy A Taha, Pearson Education Inc,

2. Numerical Optimization with Applications, Suresh Chandra, Jayadeva and Aparna Mehra, Narosa
publication
3. Practical Optimization and Engineering Application, Antonions and L. W. Sheag, New Age
Publications
4. Introduction to operations Research, Frederick S. Hiller and Gerald Lieberman, McGraw-Hill
Definition of Operations Research

Operations Research is the application of methods of science informs of algorithms solving complex
problems arising in the direction and management of labor, machines, materials and money in industry,
business, government and defense.

History of operations research

In the decade 1940-50, the operations research was used in military operations projects such as radar
deployment policies, anti-aircraft fire control, fleet convoy sizing and detection of enemy submarines.
After year 1950, the operations research are using in civilian and industrial management problem
solving applications.

Overview of Modelling in Operations research

A model in the sense of Operations Research, is a simplified representation of some real world
optimization problem into mathematical formulation.

The Optimization problem concerns how to conduct or co-ordinate operations or activities within an
organized manner. The major phases of OR studies are the following phases:

1. Define problem and gather relevant data

1.1 Concerns the appropriate objectives definition
1.2 Formulation of constraints on what can be done
1.3 Inter relation between areas to be studied and other areas of the organization
1.4 Possible alternative courses of actions
1.5 Time limit for making a decision
2. Develop computer-based procedure for deriving a solution to the problem resulting from the
model.
3. Test the optimality of the defined model and refine it as needed
4. Prepare for ongoing application of the model as prescribed by the management
5. Implementation

In the first phases and sub-phases, the main elements of a model are the following schemes

Decision variables specification: If there are n related quantifiable decisions are to be made, they are
representable as decision variables 𝑥1 , 𝑥2 , … . , 𝑥𝑛 , whose values are to be determined

Objective function specification: This expressed as a mathematical function of decision variables for
example optimize 𝑧 = 𝑐1 𝑥1 + 𝑐2 𝑥2 + ⋯ + 𝑐𝑛 𝑥𝑛 , where 𝑐1 , 𝑐2 , … , 𝑐𝑛 are cost, profit or revenue
coefficients.

Constraint Equation /Inequalities: Any restriction or declarative statements on the values that can be
assigned to the decision variables are expressed mathematical equations or inequality forms such as

𝑎11 𝑥1 + 𝑎12 𝑥2 + ⋯ + 𝑎1𝑛 𝑥𝑛 ≤ , = 𝑜𝑟 ≥ 𝑏1

:
𝑎𝑚1 𝑥1 + 𝑎𝑚2 𝑥2 + ⋯ + 𝑎𝑚𝑛 𝑥𝑛 ≤ , = 𝑜𝑟 ≥ 𝑏𝑚
Or 𝐴𝑋 ≤ , = , 𝑜𝑟 ≥ 𝒃. These are known as constraint equation or inequalities.

Parameters of Model: The constants 𝑐𝑗 , 𝑗 = 1,2,3 … , 𝑛, and 𝑏𝑖 , 𝑖 = 1,2, … , 𝑚 are named parameters of
the model.

The phase 2 concerns coding the algorithms of the model into a computer compiler understandable
suitable logical programming languages form.

The phase 3 describes to test the model whether appropriate for the desired OR studies or not.

The phase 4 and 5 are related to managerial decision implication.

Typical LPP model available in the OR studies

The word LPP model meaning Linear Programming Problem model is a mathematical programming
model The mathematical programming are the topics namely 1) Linear programming 2) nonlinear
programming 3) integer programming 4) mixed integer programming 5) goal programming 6) multi-
objective programming 7) stochastic programming etc. In this syllabus only linear programming and
integer programming are to be discussed.

All the linear programming problem model has three parts. These are

1) To identify the unknown variables named as decision variables and to represent them in terms
of algebraic symbols.
2) To identify all the restrictions or constraints in the problem and express those as linear
equations or inequalities which are linear functions of the unknown variables.
3) To identify the objective criterion and represent it as a linear function of the decision variables
which is to be either maximized or minimized.

Two variable LP model Example: A company named Reddy Mikks produces both exterior and interior
paints from two raw material M1 and M2 at its factory. The following table shows basic data of the
problem

Tons of raw material used in the maximum daily availability

Exterior paint Interior paint

Raw material M1 6 4 24

Raw material M2 1 2 6

-------------------------------------------------------------------------------------------------------------------------

Profit per tons($1000) 5 4

A market survey predicts that the daily demand for interior paint cannot exceed that for exterior paint
by more than 1 ton. Also the maximum daily demand for interior paint is 2 tons. Reddy mikks wants to
determine the optimum product mix of interior paint and exterior paint that maximize the total daily
profit.

Solution: To determine the LPP model, we need to optimize the daily production of exterior paint and
interior paint.
Let x1 tons of exterior paint produced daily and x2 tons of interior paint produced daily at Reddy mikks
company factory.

To construct the objective function, note that the company wants to maximize the total daily product of
both paints.

Profit from exterior paint is 5x1 thousand dollars and profit from interior paint is 4x2 thousand dollars
Thus total profit is 5x1 +4x2

Let z represent the total profit. Thus objective function is Maximize z = 5x1 +4x2.

Let us construct the constraints that restrict the raw material usage and product demand

Since usage of a raw material ≤ maximum raw material availability

Therefore 6x1 +4x2 ≤24

And x1+2x2 ≤ 6

The other constraint is that daily production of interior paint over the exterior paint is x2 – x1 should not
exceed 1, therefore x2 – x1 ≤ 1.

The fourth constraint is x2 ≤ 2

The LPP model is 𝑚𝑎𝑥𝑖𝑚𝑖𝑧𝑒 𝑧 = 5𝑥1 + 4𝑥2

Subject to 6𝑥1 + 4𝑥2 ≤ 24

𝑥1 + 2𝑥2 ≤ 6
𝑥2 − 𝑥1 ≤ 1
𝑥2 ≤ 2
𝑥1 , 𝑥2 ≥ 0
Four variable LPP model Example: A company has two plants each of which produces and supplies two
products A and B. Each plant can work 16 hours a day. The plant 1 machines take three hours prepare
and pack 1,000 gallons of A and one hour to prepare and pack one quintal of B. The plant 2 machines
take 2 hours to prepare and pack 1,000 gallons of A and 15 hours to prepare and pack one quintal of B.
In plant 1, it costs Rs15000/ to prepare and pack 1000 gallons of A and Rs28000/ to prepare and pack
one quintal of B. Whereas, in plant 2 these costs are Rs18000/ and Rs26000/ respectively. The company
is obliged to produce daily at least 10 thousand gallons of A and 8 quintals of B. Formulate the problem
as an LP problem to find out as to how the company should organize its production plan so that the
required quantity of the mentioned products be obtained at minimum cost.

Solution. The data of the problem is summarized as follows

Resource constraints

Product A Product B Total hour available

Preparation time in hrs Plant 1: 3hrs/thousand gallons; 1hr/quintal 16 hours

 Plant2: 2hrs/thousand gallons; 1.5hrs/quintal 16 hours

Cost of production (RS) Plant 1: 15000/thousand gallons; 28000/quintal

Plant 2: 18000/thousand gallons; 26000/quintal

Minimum daily production in Plant 1 and Plant 2: 10 thousand gallons; 8 quintals

Decision variables:

Let 𝑥1 , 𝑥2 quantity of product A (in 1000 gallons) to be produced in plant 1 and plant 2 respectively

Let 𝑥3 , 𝑥4 quantity of product B (in quintals) to be produced in Plant 1 and Plant 2 respectively.

The LPP model

Minimize 𝑧 = 15000𝑥1 + 18000𝑥2 + 28000𝑥3 + 26000𝑥4

Subject to 3𝑥1 + 2𝑥2 ≤ 16 Preparation time

𝑥3 + 1.5𝑥4 ≤ 16 preparation time

𝑥1 + 𝑥2 ≥ 10 minimum daily productions requirement

𝑥3 + 𝑥4 ≥ 8
And 𝑥1 , 𝑥2 , 𝑥3 , 𝑥4 ≥ 0

More than four variable LPP model Example: An agricultural mill manufactures feed for chicken. The
feed is prepared by mixing ingredients such as corn, limestone with Alfalfa in such a way that the feed
must contain different types of nutrients namely protein, carbohydrate and vitamins. Suppose there are
n ingredients 𝑗 = 1,2, . . , 𝑛 and m nutrients 𝑖 = 1,2, … , 𝑚. Let the unit cost of ingredient 𝑗 be 𝑐𝑗 and
quantity of ingredient to be used be 𝑥𝑗 . The cost is ∑𝑛𝑗=1 𝑐𝑗 𝑥𝑗 .

Suppose the needed final product is 𝑏 units, then ∑𝑛𝑗=1 𝑥𝑗 = 𝑏. Further let 𝑎𝑖𝑗 be the quantity nutrient 𝑖
present in the ingredient 𝑗, and the acceptable lower and upper limits of nutrient 𝑖 in a unit of the
chicken feed are 𝑙𝑖′ and 𝑢𝑖′ respectively, the constraints are 𝑙𝑖′ 𝑏 ≤ ∑𝑛𝑗=1 𝑎𝑖𝑗 𝑥𝑗 ≤ 𝑢𝑖′ 𝑏 for 𝑖 = 1,2, … , 𝑚.
Finally because of space shortages, the mill cannot acquire more than 𝑢𝑗 units of ingredient𝑗. The
problem of mixing the ingredients such that cost is minimized and the restrictions are to be met, can be
formulated as follows

Minimize 𝑧 = 𝑐1 𝑥1 + ⋯ + 𝑐𝑛 𝑥𝑛

Subject to 𝑥1 + ⋯ + 𝑥𝑛 = 𝑏

𝑙1′ 𝑏 ≤ 𝑎11 𝑥1 + 𝑎12 𝑥2 + ⋯ + 𝑎1𝑛 𝑥𝑛 ≤ 𝑢1′ 𝑏

𝑙2′ 𝑏 ≤ 𝑎21 𝑥1 + 𝑎22 𝑥2 + ⋯ + 𝑎2𝑛 𝑥𝑛 ≤ 𝑢2′ 𝑏

… … ..
′ ′
𝑙𝑚 𝑏 ≤ 𝑎𝑚1 𝑥1 + 𝑎𝑚2 𝑥2 + ⋯ + 𝑎𝑚𝑛 𝑥𝑛 ≤ 𝑢𝑚 𝑏
0 ≤ 𝑥1 ≤ 𝑢1 , …, 0 ≤ 𝑥𝑛 ≤ 𝑢𝑛 .