Operations

Research

Operations Research 1
 Topics: Prelims
Introduction
Origin and Development of OR
OR approach and methodology
OR application areas
Linear Programming (LP) Problem Formulation
Definition and characteristics of the LP problem
Formulation of LP problems
Properties of Radicals
Linear Programming: Solution
Graphical Solution
The simplex method: Big-M technique ad two-phase method
Special cases: Degeneracy, Infeasibility, Alternative Optima, Unbounded Solution

Engr. Jeck Sapnu, LSS BB, PIE, MEng. Operations Research 1

 Introduction
• Operations Research:
o Takes its name from the application of scientific methods to the planning of
military operations, by Britain and USA during World War II.
o It is a interdisciplinary branch of applied mathematics and formal science
that uses method like mathematical modeling, statistics and algorithms to
arrive at optimal or near optimal solutions to complex problems.

• From a practical point of view, OR can be defined as an art of optimization, (ie an

art of finding minima or maxima of some objective function, and – to some extend
– an art of defining the objective functions.
Typical objective functions are:
• Profit
• Assembly
• Crop yield
• Bandwidth
• Loss
• Waiting time in queue
• Risk

Engr. Jeck Sapnu, LSS BB, PIE, MEng. Operations Research 1

 Introduction
• From an organization point of view, OR is something that helps management
achieve its goals using the scientific process.

• Operations Research (OR) and Management Science (MS) are often used
synonymously, MS generally implies a closer relationship to Business Management
while OR relates to Industrial Engineering.

• Industrial engineering takes more of an engineering point of view and IEs typically
consider OR techniques to be a major part of their tool set.

Some of the primary tools used in OR are:

• Statistics
• Optimization
• Probability theory
• Queuing theory
• Graph theory
• Decision analysis
• Simulation

Engr. Jeck Sapnu, LSS BB, PIE, MEng. Operations Research 1

 Introduction
Potential application of Operations Research:
Accounting Finance
•Cash flow planning •Dividend policy
•Credit policy •Investment analysis
•Planning of delinquent account strategy •Portfolio analysis
Construction Manufacturing
•Allocation of resources to projects •Inventory control
•Determination of proper crew size •Production marketing balance
•Maintenance crew scheduling •Production scheduling
•Project scheduling •Production smoothing
Facilities Planning Marketing
•Factory size and location •Advertising allocation
•Hospital planning •Product introduction timing
•International logistics systems •Selection of product mix
•Number of facilities required Organization Behavior
•Transportation loading and unloading •Employee recruiting
•Warehouse location •Personnel justification / planning
•Scheduling of training programs
•Skills balancing.

Engr. Jeck Sapnu, LSS BB, PIE, MEng. Operations Research 1

 Introduction
The operation research approach:

Define the
problem

Develop
implement
the model

Select
Validate
operations
the
research
solution
techniques
Develop
optimal
solutions

Engr. Jeck Sapnu, LSS BB, PIE, MEng. Operations Research 1

 Linear Programming
Programming:
• Refers to mathematical representation of techniques to attain the efficient or optimal action or
solution for limited action of scarce resources.
Linear Programming (LP):
• Define as mathematical model wherein the decision variables are in first order-meaning the
exponent of the variable is one – and having a single goal called the objective function.
LP Model:
• To help the management in planning and decision making, LP involves the use of
mathematical representation or models of LP problems.

Components of LP model
• Decision Variables
Refers to the set of input variables whose values you can change.
• Objective functions
Is the output function that you may want to maximize or minimize.
• Constraints
Refers to a set of restrictions on the permissible values of the input variables.

Types of LP models / problems

• Maximization
• Minimization

Engr. Jeck Sapnu, LSS BB, PIE, MEng. Operations Research 1

 Linear Programming
One of the major applications of linear algebra involving systems of linear equations is in finding
the maximum or minimum of some quantity, such as profit or cost.

In mathematics the process of finding an extreme value (maximum or minimum) of a quantity

(normally called a function) is known as OPTIMIZATION.
Linear programming (LP) is a branch of Mathematics which deals with modeling a decision
problem and subsequently solving it by mathematical techniques.

The problem is presented in a form of a linear function which is to be optimized (i.e maximized or
minimized) subject to a set of linear constraints. The function to be optimized is known as the
objective function .

Linear programming finds many uses in the business and industry, where a decision maker
may want to utilize limited available resources in the best possible manner. The limited resources
may include material, money, manpower, space and time. Linear Programming provides various
methods of solving such problems.

Engr. Jeck Sapnu, LSS BB, PIE, MEng. Operations Research 1

 Linear Programming
Problem solving: MAXIMIZATION
Nymonyx LTD, manufactures 2 products; Tables and Chairs which must be processed through
assembly and finishing operations. Assembly line has 60 hours available of work while finishing
line can handle up to 48 hours of work. Producing one table requires 4 hours of assembly and 2
hours finishing. Each chair requires 2 hours assembly and 4 hours finishing. If profit is Php
800/table and Php 600/chair. The problem is to determine the best possible combination.

Engr. Jeck Sapnu, LSS BB, PIE, MEng. Operations Research 1

 Linear Programming - SEATWORK
Problem solving: MAXIMIZATION
A paint manufacturer produces two types of paint, one type of standard quality (S) and the other
of top quality (T). To make these paints, he needs two ingredients, the pigment and the resin.
Standard quality paint requires 2 units of pigment and 3 units of resin for each unit made, and is
sold at a profit of Php 1 per unit. Top quality paint requires 4 units of pigment and 2 units of resin
for each unit made, and is sold at a profit of Php 1.50 per unit. He has stocks of 12 units of
pigment, and 10 units of resin. Formulate the above problem as a linear programming problem to
maximize his profit?

Engr. Jeck Sapnu, LSS BB, PIE, MEng. Operations Research 1

 Linear Programming
Problem solving: MINIMIZATION
(Diet problem) A house wife wishes to mix two types of food F1 and F2 in such a way that the
vitamin contents of the mixture contain at least 8 units of vitamin A and 11 units of vitamin B.
Food F1 costs E60/Kg and Food F2 costs E80/kg. Food F1 contains 3 units/kg of vitamin A and 5
units/kg of vitamin B while Food F2 contains 4 units/kg of vitamin A and 2 units/kg of vitamin B.
Formulate this problem as a linear programming problem to minimize the cost of the mixtures.

Engr. Jeck Sapnu, LSS BB, PIE, MEng. Operations Research 1

 Seatwork
Problem solving:
JDS Incorporated blends solvent from 2 premixed bases B1 and B2, each liter of B1 cost Php 80
centavos / liter and contains 8 parts of kerosene, 10 parts of polyvinyl and of 6 parts of mineral.
B2 costs Php 1 peso / liter and contains 6 parts kerosene, 4 parts polyvinyl, and 12 parts
mineral.
Each container of solvent must contain at least 24 parts kerosene, at least 20 parts of polyvinyl
and at least 20 parts mineral. Graphically, find the best combination of B1 and B2 to meet the
requirement at the least possible cost.

Problem solving:
Karen is the production manager of blurg shampoo and she wants to determine the production
mix which will be result in maximum profit. She is able to determine the data necessary for her
to make a decision. It will take 5 minutes to mix 1 case of men’s shampoo and 10 minutes to mix
1 case of women’s shampoo and she has a total of 100 minutes available for mixing process per
day. It will take 7 minutes to bottle 1 case of men’s shampoo and 7 minutes to bottle a case of
women’s shampoo and she has a total of 84 minutes available for the bottling process per day. It
will take 9 minutes to pack 1 case of men’s shampoo and 5 minutes to pack 1 case of women’s
shampoo and she has a total of 90 minutes available for the packing process per day.

She will earn Php 600 for every case of men’s shampoo, and profit Php 800 for every case of
women’s shampoo produced.

How many cases of men’s shampoo and women’s shampoo should be produced per day to
maximize profit? How much is the total profit? Use graphical method in solving the problem.
Engr. Jeck Sapnu, LSS BB, PIE, MEng. Operations Research 1
 Assignment
Problem solving:
The general manufacturing company produces two types of toy model cars, the McQueen and
Doc Hudson. These machines are required to produce each type. These are classified as X,Y,Z.
Each McQueen requires 7 minutes of process time on machine X, 4 mins on Machine Y and 10
mins on Machine Z. A Doc Hudson requires 4 mins on Machine X, 5 mins on Machine Y and 16
mins on Machine Z. Each day there are 420 mins available on machine X, 600 min on Machine Y
and 840 mins on Machine Z. McQueen profit model is Php 18. whereas Don Hudson has Php 24
profit per model.
Using graphical model, determine the LP model and daily production of Z model to maximum
profit
Problem solving:
Joshua is a purchasing manager of Magnolia and he wants to determine the supply mix that will
result on a minimum cost. He is able to determine the data necessary for him to make a
decision. A gallon of Alaska Milk can produce 5 cases of cheese, 7 cases of butter, and 9 cases of
cream. A gallon of Nestle milk can produce 5 cases of cheese, 8 cases of butter, 4 cases of
cream. He must produce at least 110 cases of cheese at least 112 cases of butter and at least 72
cases of cream per day. Alaska milk cost Php 50 per gallon while Nestle milk cost Php 55 per
gallon. How many gallons of Alaska and Nestle milk should be purchase per day? What is the
total cost?

Engr. Jeck Sapnu, LSS BB, PIE, MEng. Operations Research 1