OPERATION RESEARCH

ME354
OPERATION RESEARCH

Lecture -3

Linear Programming Problems (LPP)

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OPERATION RESEARCH
Course plan
Topics to be covered Hrs
Introduction to OR 2
Applications of OR 2
Formulation of LPP 3
Solutions of LPP Graphical solution 15
Simplex Method
Big M Method
Dual Simplex Method
Two Phase model
Transportation Problems Travelling Salesman Problems 6

Assignment Problems Maximization Application 6

PERT and CPM Total, Free and Independent Float, Network Crashing 6
Job Sequencing 4
Game Theory 4
Waiting Line Theory NITK , Surathkal
Queuing Theory 4
OPERATION RESEARCH
What is Operations Research?
➢ Operational Research is a systematic and analytical approach to decision making and

problem solving.

➢ It is typically concerned with determining the maximum profit, sale, output, crops

yield and efficiency and minimum losses, risks, cost, and time are some of objective

functions.

➢ It have also become an important part of Industrial Engineering Profession

➢ Seeks solutions to problems that arise in complex organizations

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OPERATION RESEARCH OR: Concept, Origin and Development

Operations

The activities carried out in an organization.

Research

The process of observation and testing characterized by the scientific method.

“Operations Research is a discipline that deals with the application of advanced analytical

methods (optimization, statistics, algorithm) to help make better decisions.”

➢ OR: The Management science of betterment

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OPERATION RESEARCH
OPERATIONS RESEARCH root of Analytics

➢ What is analytics? The short (but oversimplified) answer is that it is basically operations research by
another name.
➢ Analytics is the scientific process of transforming data into insight for making better decisions
➢ Analytics fully recognizes that we have entered into the era of big data where massive amounts of data
now are commonly available to many businesses and organizations to help guide managerial decision
making.

➢ The application of analytics can be divided into three overlapping categories

1. Descriptive analytics (which involves using innovative techniques to locate the relevant data and identify
the interesting patterns Data Mining and who specialize in descriptive analytics are called Data
scientists)
2. Predictive analytics (the data to predict what will happen in the future)

3. Prescriptive analytics (what should be done in the future) NITK , Surathkal

OPERATION RESEARCH
Operation Research
An OR study consists of:
The art of mathematical modeling of complex situations
By observing the problem in reality and analyzing the data on hand, we choose the
corresponding math model, then fix the function forms and in particular the parameters;
The science of the development of solution techniques to solve these models
1. Construct algorithms for small-scale problems and develop computer packages for large-
scale problem
2. We obtain a set of solutions with respect to the variation of model parameters.
The ability to effectively communicate the results to decision maker

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OPERATION RESEARCH The Impact of Operations Research
• International federation of Operational Research societies (IFORS)
• Institute of Operations Research and the management sciences (INFORMS)

Organization Area of Application Annual savings

Ingram Micro Data driven marketing campaigns $350 million more revenue

Continental Airlines Reassign crews to flights when schedule $40 million

disruptions occur
Swift and company Improve sales and manufacturing performance $12 million
Chevron Optimize refinery operations $1 billion
Samsung Electronics Reduce manufacturing times and inventory levels $200 million more revenue

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OPERATION RESEARCH
Applications of Operation
Research
1. Allocation and Distribution in Projects:
2. Production and Facilities Planning:
3. Programmes Decisions:
4. Marketing:
5. Organization Behaviour:
6. Finance:
7. Research and Development:
8. Military NITK , Surathkal
OPERATION RESEARCH
OR: the general steps
Operations Research is a quantitative approach to decision making based on the scientific
method of real-world problem solving.
An OR study usually contains the following steps:
1. Identify the problem;
2. Formulate the problem as a math model;
3.Validate the model (by historical or new data);
4. Develop effective algorithms or
computer packages to solve the model;
5. Obtain numerical solution for the model;
6. Implementation NITK , Surathkal
OPERATION RESEARCH

Target based Situation

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OPERATION RESEARCH
Target based Situation

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OPERATION RESEARCH
Target based Situation

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OPERATION RESEARCH
Target based Situation

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OPERATION RESEARCH
Target based Situation

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OPERATION RESEARCH
Target based Situation

Objectives ? NITK , Surathkal

OPERATION RESEARCH
Target based Situation

Maximum
Score NITK , Surathkal
OPERATION RESEARCH
Target based Situation

Maximum
sale in a
Month NITK , Surathkal
OPERATION RESEARCH
Target based Situation

Minimizing
the cost NITK , Surathkal
OPERATION RESEARCH
Target based Situation

Objectives ? NITK , Surathkal

OPERATION RESEARCH

These kind of objective based problems are called

Optimization Problems

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OPERATION RESEARCH
Optimization Problems

Maximum Profit

Minimum Cost

Minimum use of Resources

Optimization Techniques to solve these problems

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OPERATION RESEARCH
Target based Situation

Objectives ? NITK , Surathkal

OPERATION RESEARCH

Limiting Factors ? NITK , Surathkal

OPERATION RESEARCH
Target based Situation

Time NITK , Surathkal

OPERATION RESEARCH
Target based Situation

Time NITK , Surathkal

OPERATION RESEARCH
Target based Situation

Pre-decided
Budget NITK , Surathkal
OPERATION RESEARCH

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OPERATION RESEARCH
Optimization Problems-Aim

The aim of the optimization problems is to find the

Optimum solution subjected to the Constrains
of the problem

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OPERATION RESEARCH
Optimization Problems-aim

The aim of the optimization problems is to find the Optimum solution subjected
to the Constrains of the problem

Mathematics-?
Optimization Techniques
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OPERATION RESEARCH

Optimization Techniques

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OPERATION RESEARCH

Optimization Techniques

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OPERATION RESEARCH What is Linear Programming?

Technique which is used to find the optimum solution for

the given problem

Optimum Solution -Best possible outcome

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OPERATION RESEARCH What is Linear Programming?

• Linear programming is a mathematical programming

technique to optimize performance (e.g. profit or cost) under a
set of resource constraints (e.g. machine-hours, man-hours,
money, materials, etc.) as specified by an organization.

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OPERATION RESEARCH
Linear Programming Problem(LPP)

Structure and the Formulation of LPP

Understand the given Problem

Convert to Linear Programming Problem

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OPERATION RESEARCH
Linear Programming Problem(LPP)

Structure and the Formulation of LPP

Understand the given Problem

Convert to Linear Programming Problem

Two Aspects
1. Formulation
2. Solution NITK , Surathkal
OPERATION RESEARCH
Linear Programming Problem(LPP)

Two Aspects
1. Formulation (Convert to Mathematical Equations)
2. Solution
• Graphical solution
• Simplex Method
• Big M Method
• Dual Simplex Method
• Two Phase model NITK , Surathkal