Introduction To Operations Research: Prof. Yen-Tsang Chen

Introduction to Operations
Research
Prof. Abdelghani Bekrar
E-mail: abdelghani.bekrar@uphf.fr
Prof. Yen-Tsang Chen

vendredi 15 janvier 2021
1
Prof. Abdelghani BEKRAR
(short bio)
Contact: abdelghani.bekrar@uphf.fr
Office hours:
• Appointment.

2
Curriculum Vitæ – visit card
Current position
associate professor at UPHF / INSA HdF
Researcher at LAMIH Laboratory, UMR CNRS
Expérience
Research Engineer (R&D Algorithms )
Teaching at DynaSys (QAD now) for developping APS
for supply chain optimization.
Since 2010 associate professor at UPHF Lecturer at (UTT Troyes, Mets, Setif)
2008 – 2010 Engineer R&D at DynaSys, Str Engineerin computer science
2007 – 2008 ATER at UTT - Troyes at UISI Informatique
2004 – 2007 Temporary UTT - Troyes
Education
Diplômes Lieu de formation Lieu de Stage Année
PhD in optimization and safety LOSI- UTT Troyes 2007
DEA AII ( Master of science ECN - Nantes EMN - Nantes 2004
automation)
Engineer in Computer Sciences INI (Heigh school – Alger) Alger 1999
3
Curriculum Vitæ – Research activity at Dynasys
• DynaSys : Ingénieur de recherche, équipe Algorithmique,
• Thème : Optimisation de la chaîne logistique,

• Responsable du module,
• Heuristique, • Modèle linéaire Multi-niveau (LSP),
• DRP, • Nouvelle méthode pour le
• MIP, • Heuristiques, • MIP pour le corridor
problème
de vraisemblance
de
• Recherche Tabou
• Stage : contrainte de chargement déploiement,
Curriculum Vitæ – Research activity
non-linear Optimization
Thermal application
Largeur de la Bifurcation - L
H, L fixés
Nœud fluide
x4
Masse constante
Nœud solide
Hauteur de la Bifurcation - H
x4 = f(x1, x2, x3, H, L)
Text
x3
Qin
Variables (x1, x2, x3)
Objectif : (x1,x2)
Minimiser Tmax
Curriculum Vitæ – Research activity
Research interest
• Simulation and optimization of complexResources
systems
• Flexible manufacturing systems
Robot 1 Op3 Op7
Robot 2 Op2 Op5 Op6
• Dynamic scheduling Robot 3 Op1 Op4 Op8
• Optimization of energy system 0

Time (seconde)
864 s
• Electric network
• Transportation systems
• Collaborative robotic and human robot
interaction
• Multi-agent systems
6
Course agenda
Session Date Topics Assignments
1 15/01/2021 Introduction to Operations Research
2 Linear Programming : Graphic method Exercises
3 Integer programming and Goal programming Exercises + Quiz
4 Application of Linear Programming Exercises
5 Queuing theory Exercises + Quiz
6 Dynamic programming Exercises
7 Markov analysis Exercises + MidTerm
8 Simulation Exercises + Quiz
Final considerations, discussions and exam

9
preparation

7
Modus operandi
1 2 3 4

8
Assessments
l Mid term exam – 20%

•Date to define.
l Final exam – 80%

9
References
• Hillier F.S., Lieberman G.J., (2011), Introduction
to Operations Research, 10th edition, McGraw-
Hill;
• Hamdi Taha, (2011), Operations Research: an

Introduction, 9th edition, Pearson;
• B.W. Taylor III, (2010), Introduction to

Management Science (10th edition), Pearson

10
Introduction to Operations
Research

11
What is Operations research?

12
A long time ago…

13
Nowadays…

14
Nowadays…
What is the goal of The CocaCola Company?

How many Departments has this rm?
Do they compete between each other?

15
What happened? Number of user
Direction générale
16
What happened?: manufacturing systems
Electronic revolution:
introduction of
automated
production,
electronics,
computers and IT
Electric revolution:
introduction of mass
production, electric
power and the advent
of the assembly line
Mechanical
revolution:
introduction of
mechanical
Today
production,
railroads and
Complexity
steam power
4th revolution:
introduction of CPSs,
Big Data, robotics and
more to come
End of 18th Start of 20th Start of 1970s Start of 2010s

century century
Time
Direction générale
17
• Structured;
• Coordinated;
• Logical;
• Math modeling;
• Find a proper solution for the organizational problems.

18
Operations Research is applied to problems that concern how to conduct
and coordinate the operations (i.e., the activities) within an organization.
The scientific method is used to investigate the problem of concern.

Cambridge Dictionary
Operational research UK (US operations research)
The systematic study of how best to solve problems in business and industry
Wikipedia
Operations research, operational research, or simply OR, is the use of mathematical
models, statistics and algorithms to aid in decision-making
Roadef
Recherche Opérationnelle : approche scientifique pour la résolution
de problèmes de gestion de systèmes complexes
Operational research : A scientific approach to solving complex systems
management Problems

19
The science of “how to do better with less”
Tools Models
rationalize Represent
simulate Analyse
optimize
plan
The architecture and the Complex situations

functioning of industrial and
business systems
decision makers to make effective and robust choices

20
Historical approach: timeline
850 Solution of linear and quadratic equation, Al-Khwarizmi
1654 Expected value, Pascal
1733 Normal distribution, A. de Moivre
1763 Bayes Rule, T. Bayes
1795 Method of Least Squares C. Gauss, A. Legendre
1907 Markov chains, A. Markov
1909 Queuing theory, A. Erlang
1936 The term OR first used in British military applications
1941 Transportation model, F. Hitchcock
1942 U.K. Naval operational Research, P. Blackett
1943 Neural networks, W. McCulloch, W. pitts
1944 Game theory, J. von Neumann
1944 Exponential smoothing, R. Brown

21
Historical approach

22
Historical approach

23
Historical approach

24
What is a problem?
Objective situation Actual situation
Gap = Problem

25
Example
• Situation :
– Assume that you will be graduating from college in the

next few months, that you have completed the
interviewing process, and that you have been
competence enough to receive job offers from four
companies: one from a company located in Paris; one
from a company located in Lyon; one from a company
located in Bordeaux; and one from a company located in
Marseille.

26
Example
Starting Potential for Job

Alternative
Salary Advancement Location
Paris $28,500 Average Average
Lyon $26,000 Excellent Good
Bordeaux $26,000 Good Excellent
Marseille $27,000 Average Good

27
Problem solving and Decision Making
Define Identify Determine

the problem Alternatives Criteria
Structuring the problem Decision

Making
Evaluate Choose an
Alternatives Alternative
Analyzing the problem
Implement Evaluate
The decision the result

28
Quantitative Analysis and Decision
Making

29
The Nature of Operations Research
• Process
– Carefully observe and formulate the problem
– Gather data
– Construct a mathematical model
– Test whether the model represents the actual
situation
– Modify the model as appropriate and validate
again

30
Model
Models are simplified representation of real objects or
situations à Describe, predict, prescribe
Iconic model Analog model Mathematical model
P = 10 x
31
Model
Mathematical
Inputs Output
Model

32
Model
Mathematical
Inputs Output
Model

33
Example
• With a profit per unit of €10, the total profit could be expressed as
P = 10PX= 10 x
– Let x indicate the number of units produced each week
– Objective: maximize the profit equation
– Production capacity: 5 hours are required to produce each unit and there are only
5X≤40
40 hours available per week. 5x≤ 40
• The decision problem: How many units of the product should be scheduled
each week to maximize profit?
– Maximize P = l0x Objective function
– subject to (s.t.)
• 5x ≤ 40
constraints
• X >= 0

34
Transforming Model Inputs into Output
Uncontrollable Inputs
(Environmental Factors)
Controllable
Mathematical Output
Inputs
Model (Projected Results)
(Decision Variables)
Uncontrollable inputs
Known, not varying = DETERMINISTIC MODEL
Subject to variations = STOCHASTIC OR PROBABILISTIC MODEL

35
Controllable/ Uncontrollable inputs
Uncontrollable Inputs
(Environmental Factors)
$10 profit per unit

5 labor-hours per unit
40 labor-hours capacity
PP == 10
10 (x)
(8) Profit = 80
Quantity of production
Condit.
Condit. 55 (x)
(8) <=
<= 40
40 Time used = 40
(x = 8)
x>=0
8>=0
Controllable
Mathematical Output
Inputs
Model (Projected Results)
(Decision Variables)

36
Advantages of Models
• Generally, experimenting with models (compared

to experimenting with the real situation):
– requires less time,
– is less expensive,
– involves less risk.
– Understandable by computers

37
Mathematical Models
• Relate decision variables (controllable inputs) with

uncontrollable inputs.
• Frequently seek to maximize or minimize some objective
function, subject to constraints.
• Are said to be stochastic (probabilistic) if any of the
uncontrollable inputs is subject to variation, otherwise are
said to be deterministic.
• Generally, stochastic models are more difficult to analyze.

38
Data Preparation
G.I.G.O
• Data preparation is not a trivial step.

• A model with 50 decision variables and 25 constraints
could have over 1,300 data elements!
• Often, a fairly large data base is needed.
39
Model Solution
• Means identifying the values of the decision variables
that provide the “best” output (optimal solution).
• One approach is trial-and-error.
– might not provide the best solution,
– inefficient (numerous calculations required).
• Special solution procedures have been developed for
specific models.

40
Computer Software
• A variety of software packages are available for solving

mathematical models, including.
– Spreadsheet packages such as Microsoft Excel,
– Excel Solver for optimization
– LINGO/LINDO
– SIMULINK
– PROMODEL
– ARENA
– NetLogo
–…

41
Model Testing and Validation
• Small test problems with known or expected

solutions can be used for model testing and
validation.
• If the model generates the known or expected
solutions, use it on the full-scale problem.
• Otherwise, take corrective action such as
modification of the model.

42
Report Generation
• A managerial report, based on the results should be
prepared.
• The report should be easily understood by the
manager.
• The report should include:
– the recommended decision,
– other information (for example, how sensitive the
solution is to the assumptions used).

43
Implementation and Follow-Up
• Successful implementation of model results is of

critical importance.
• Secure as much manager involvement as possible,
throughout the modeling process.
• It might be necessary to refine or expand the model.

44
OR and Computers
• The development of Operational Research is

directly linked to the computer technology
development
• It is a new field constantly expanding,
necessary to manage more and more complex
problems

45
Problem scope
• Strategic scope
– Big organizations structure,
– Distribution networks, location decisions, investment
decisions
– Major equipment choice, fleet size decisions
• Operational scope
– Flow management, scheduling in distribution
networks and factories
– Production and maintenance planning
• Technical scope
– Computer aided design,
– Performance simulation…
46
Real problems
• Harbor operations

47
Problem classification
• Very different problems could present some
analogies in solving methods
• Rather than classify problems by topics, O.R.
propose to classify by models
1. Knapsack problems (Sacs à dos),
2. Milk run problems,
3. Allocation problems,
4. Scheduling problems,
5. Waiting lines problems,
6. Flow management problems.

48
Knapsack Problem – KP (sacs à dos)
• Optimization problem which the objective is to find the

combination of the products to be carried. Considering to
achieve maximum value without exceeding a maximum value.
http://interstices.info/jcms/c_19213/le-probleme-du-sac-a-dos

49
Milk run problem – (Le problème du voyageur
de commerce)
• You have to cover all the custumer houses to deliver the
milk;
• You know the distances between each of them;
• Try to find the lowest distance to cover.

http://interstices.info/jcms/c_37686/le-probleme-du-voyageur-de-commerce

50
For example
• Shortest route for school buses or logistic
delivery

51
Allocation problem (Affectation)
• A set of several tasks to be performed;

• Each task generates a certain profit and consumes
certain resource;
• You have a limited resource to be distributed;
• Find the combination of resource distribution that
maximize the profit;

52
Scheduling problem
- A product is decomposed;
- Each task required an execution time and resource;
- Problem is to establish the optimal execution order to
minimize the production time or maximize the
production quantity or profit

53
For example

54
Waiting line problem
• Define how many cashier

will be need to attend the
consumer;
• Minimum waiting;
• Maximazing the usage of
the limited resource;

55
Flow management
• Fastest and smooth of materials in the network;
• Constraint of the capacity of transportation mean and nodes;
• Decision of required roads, streets, for example.

56
Example
Nowlin Plastics produces a variety of compact disc (CD)
storage cases. Nowlin’s bestselling product is the CD-50, a
slim, plastic CD holder with a specially designed lining that
protects the optical surface of the disc. Several products are
produced on the same manufacturing line, and a setup cost is
incurred each time a changeover is made for a new product.
Suppose that the setup cost for the CD-50 is $3000. This
setup cost is a fixed cost that is incurred regardless of the
number of units eventually produced. In addition, suppose
that variable labor and material costs are $2 for each unit
produced.
Write the cost-volume model for producing x units of the

CD-50
57
Example
The O’Neill Shoe Manufacturing Company will produce a
special-style shoe if the order size is large enough to provide
a reasonable profit. For each special-style order, the
company incurs a fixed cost of $1000 for the production
setup. The variable cost is $30 per pair, and each pair sells
for $40.
a) Write the profit equation.

b) Find the break-even point

58
Example
Financial Analysts, Inc., is an investment firm that manages
stock portfolios for a number of clients. A new client is
requesting that the firm handle an $80,000 portfolio. As an
initial investment strategy, the client would like to restrict the
portfolio to a mix of the following two stocks:
Write the mathematical model that represents the situation

described above

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62

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Introduction to Operations

Prof. Yen-Tsang Chen

vendredi 15 janvier 2021

• Thème : Optimisation de la chaîne logistique,

Robot 2 Op2 Op5 Op6

• Dynamic scheduling Robot 3 Op1 Op4 Op8

• Optimization of energy system 0

Final considerations, discussions and exam

vendredi 15 janvier 2021

vendredi 15 janvier 2021

l Mid term exam – 20%

vendredi 15 janvier 2021

• Hamdi Taha, (2011), Operations Research: an

• B.W. Taylor III, (2010), Introduction to

vendredi 15 janvier 2021

vendredi 15 janvier 2021

vendredi 15 janvier 2021

vendredi 15 janvier 2021

vendredi 15 janvier 2021

What is the goal of The CocaCola Company?

vendredi 15 janvier 2021

End of 18th Start of 20th Start of 1970s Start of 2010s

• Find a proper solution for the organizational problems.

vendredi 15 janvier 2021

The scientific method is used to investigate the problem of concern.

vendredi 15 janvier 2021

The architecture and the Complex situations

decision makers to make effective and robust choices

vendredi 15 janvier 2021

vendredi 15 janvier 2021

vendredi 15 janvier 2021

vendredi 15 janvier 2021

vendredi 15 janvier 2021

vendredi 15 janvier 2021

– Assume that you will be graduating from college in the

vendredi 15 janvier 2021

Starting Potential for Job

Paris $28,500 Average Average

Lyon $26,000 Excellent Good

Bordeaux $26,000 Good Excellent

Marseille $27,000 Average Good

vendredi 15 janvier 2021

Define Identify Determine

Structuring the problem Decision

Analyzing the problem

vendredi 15 janvier 2021

vendredi 15 janvier 2021

vendredi 15 janvier 2021

Iconic model Analog model Mathematical model

vendredi 15 janvier 2021

vendredi 15 janvier 2021

vendredi 15 janvier 2021

vendredi 15 janvier 2021

$10 profit per unit

vendredi 15 janvier 2021

• Generally, experimenting with models (compared

vendredi 15 janvier 2021

• Relate decision variables (controllable inputs) with

vendredi 15 janvier 2021

• Data preparation is not a trivial step.

vendredi 15 janvier 2021

• A variety of software packages are available for solving

vendredi 15 janvier 2021