SVKM’s NMIMS ASMSOC – Course Outline

Course Code 742QT0C006

Course Title Operations Research
Course Ms. Richa Saxena, Dr. Navneet Bhatt, Mr. Veerendra Anchan, Ms. Tejaswini Angre
Instructor/s
Course 4
Credit
Program and BBA Semester III
Semester
Pre- Learners should know basic mathematics and statistics.
Requisite
Learning CLO1: To teach learners basic concepts of operations research. (PLO1a)
Objectives CLO2: To enable the learners to analyse and interpret the data used in decision
making given a set of requirements and availability constraints. (PLO2a)
CLO3: To enable the learners to demonstrate the ability to work in groups while
working on a research project. (PLO3b)
Learning CLO1: After completing the course, learners should be able to understand the
Outcomes applications of OR concepts in decision-making in marketing, finance, production,
and other management areas.
CLO2: After completing this course, learners should be able to analyse and interpret
the data using Linear Programming Problems, Transportation and Assignment
methods, Replacement Theory, Simulation, and Network Analysis for managerial
decision making.
CLO3: After completing this course, learners should be able to utilise group learning
while working on a research project based on applications of OR.
Course Operations Research is a branch of decision science. It includes deterministic and
Description probabilistic techniques for managerial decision making. The course is multi-
disciplinary and widely applied in the supply chain, media studies, financial
decision-making, marketing, production, and project management.

Evaluation Assessment % Weightage AOL Instruments Intended CLOs to be

Pattern Methods and Marks Assessed
CLO1 CLO2 CLO3
Embedded
Class-tests (CT) 30% (15 Marks)
questions
- two numerical CT1: 8 Marks yes yes no
CT1:15-25 August
based test CT2: 7 Marks
CT2:1-10 November
Rubric
Research 30% (15 Marks) Date of submission no yes yes
15-25 September
Embedded
Mid-term 40% (20 Marks) yes yes no
questions
50% (50
TEE
Marks)

1
 Course Session Plan

Session Topics / Module Chapters Articles / Cases /

(Mention Page Material and Activities
Numbers) /
Module I: Introduction to Operations Research
 Quantitative Approach to decision Textbook: 1. Reading from text and
1-2 making Chapter 1 (pages reference books
 Historical development of OR 2-12) 2. US Operations
 Nature and characteristics of OR Research in World War
 Methodology of OR II
Research Assignment 3. The Beginnings of
Operations Research:
1934-1941
Module IV: Transportation Method
3-14  Introduction and applications Textbook: 1. Practice problems from
 Problem Statement Chapter 5 (pages text and reference
 Transportation Method 214-301) books
 Initial basic feasible solution 2. Using the Operations
o Northwest Corner Rule Research Methods to
[NWCR] Address Distribution
o Least Cost Method [LCM] Tasks at a City
o Vogel’s Approximation Logistics Scale
Method [VAM]
 Testing the optimality: MODI
method only.
 Improving the non-optimal
solution: MODI method only.
 Verification of the solution using
duality
 Unbalanced problems
 Unique Vs Multiple solutions
 Prohibited route problems
 Degeneracy
 Maximisation
 Changes in the optimal solutions
(allocations only) – see Example
5.13
 The Solver (in brief)

Excluded: Transportation Problem as

a special case of LPP, Stepping-stone
method, Dual of the TP, Sensitivity
Analysis, Production Scheduling, and
Inventory Control, Transhipment
Problem.

2
Module IV: Assignment Problems
15-18  Introduction and applications Textbook: 1. Practice problems from
 Complete enumeration method – Chapter 6 (pages text and reference
only with order 3 table 305-360) books
 Hungarian Assignment Method 2. A matheuristic for a
(HAM) customer assignment
 Unbalanced, Unique vs Multiple problem in direct
Optimal solutions, marketing
Constrained/Prohibited
assignments
 Maximisation
 The Solver (in brief)

Note: Up to 5X5 matrix (including

dummy).

Excluded: Transportation method,

Simplex Method, Dual; Crew
Assignments, Travelling Salesman

19 Research Assignment discussions

Class test 1: 8 Marks (Duration: 30 mins)
Module II: Linear Programming Problem Formulation & Graphical Method
20-26  Introduction and applications Textbook – 1. Practice problems from
 Formulation of simple, Chapter 2 (pages text and reference
straightforward linear 17-60) books
programming problems. 2. Application of Linear
 Assumptions Programming for
 Explanation of objective function, Optimal Use of Raw
decision variables, constraint Materials in Bakery.
equations,
maximization/minimization/mix
ed constraints
 Graphical solution to linear
programming problems of
Maximisation and Minimisation
type using iso-profit and iso-cost
lines only
 Concept of convex sets.
 Concept of redundant constraints
 Unique and multiple solutions
 Unboundedness
 Infeasibility
 Point solutions

3
 Note: number of constraints to be
confined to a maximum of four. No
need to use graph paper

27 Research Assignment
Module III: Linear Programming Problem: Simplex Method
28-39  Introduction and applications Textbook 1. Practice problems from
 Simplex Method Chapter 3 (pages text and reference
 Conditions 66-146) books
 Solution of Maximisation type, i.e.,
all constraints of the type ≤ only
using simplex method
o Standardisation
o Concept of slack variables
o First simplex table
o Optimality
o Incoming and outgoing
variable and pivot row/column
o Theta or pivot element
o Improvement of non-optimal
solution in max type with ≤
inequality only
o Interpretation of the final table
 Shadow prices
 Economic interpretation
 Unrestricted variable
 Change of scale and origin
 Multiple optimal solutions
 Degeneracy
 Solution of minimisation, i.e., all
constraints of the type ≥ using Big-
M Method.
 Concept of surplus and artificial
variable
 Mix constraint problems
 Unbounded solution
 Infeasibility
 Reading of simplex table for
product mix, unutilised resource,
and profit contribution of the
resource.
 Economic interpretation (in brief)
 The Solver (in brief)

Note: Total number of inequalities to

be at most three (3) and the total
4
 number of decision variables to be at
most three (3). Solutions to be
completed within four tables, i.e.,
Initial table plus three iterations or
two improvements in a given table

Excluded: Two-phase method,

Duality and Sensitivity analysis

Module VI: Simulation

40-43  Introduction and applications Textbook 1. Practice problems from
 Process of simulation models Chapter 16 text and reference
 Monte Carlo Simulation (pages 836-877) books
 Simulation of an Inventory System
 Simulation of Queuing System
 Advantages and Disadvantages of
Simulation

Excluded: Finance related problems

like ROI, Variable cost.

Module VI: Replacement Theory

44-47  Introduction and applications Textbook 1. Practice problems from
 Types of replacement situations Chapter 13 text and reference
 Replacement policy for equipment (pages 679-707) books
deteriorates gradually when
money value remains constant.

Excluded: Time value of money,

sudden failures of items, and staff
replacement.

Module V: Network Analysis

48-50  Introduction and applications Textbook 1. Practice problems from
 Project network Chapter 16 text and reference
 Rules of network construction (pages 714-796) books
 Dummy
 Redundancy
Note: Max, two dummies in a
network

51-52  Critical Path Method

 Time Estimates in CPM: Earliest
Start Time (ET) and Earliest Finish
Time (EF), Latest Start Time (LS),
Latest Finish Time (LF)

5
  Float of an Activity: Total Float,
Interfering Float, Free Float, and
Independent Float.
 Concept of Critical events, critical
activities, critical path.

Note: Max 15 activities in a network

Excluded: Resource Analysis and

Allocation

53 Class test 2: 7 Marks (Duration: 30 mins)

54-58 Time-cost Trade-Off Crashing 1. Practice problems from
 Optimum cost and minimum time text and reference
problems. books

Note: Max 10 activities in a network

Excluded: Resource levelling, and

Resource Allocation

59-60  PERT 1. Practice problems from

 Three Time Estimates text and reference
 Expected project duration, books
Expected Activity durations and
Variance of activities
 Estimate of Probability. 90%, 95%,
99% assurance period.
 Reading of normal tables. Given
various durations, find the
probability of completion.
 Difference between PERT and
CPM

Note: Max 12 activities in a network

Excluded: PERT/Cost, Planning and

Scheduling Project Costs

Prescribed Textbook:
 N D Vohra, (2021), Quantitative Techniques in Management (5th Edition),
Reading List McGraw Hill Publications
and References
References:
 N D Vohra, Hitesh Arora (2021), Quantitative Techniques in Management 6th
Edition, McGraw Hill Publications
 Hillier (2021), Operations Research, 11th Edition, McGraw Hill Publications

6
  P K Gupta, D S Hira (2018), Operations Research, 7th Edition, S Chand
Publications
 J K Sharma (2017), Operations Research, 6th Edition, MacMillan Publications
 Taha (2019), Operations Research, 10th Edition, Pearson Publications

Note: Latest edition of the books should be used.

Prepared by Faculty Members Approved by Program Approved by Associate Deans

Chairperson
Richa Saxena

Approved by I/C Dean – ASM

SOC