17ME601

OPERATIONS RESEARCH
1. Operations Research an Introduction, Taha H. A. 8th edition – Pearson Education 2007
2. Operations Research, S. D. Sharma -Kedarnath Ramnath & Co 2002.
3. Quantitative Techniques in Management, N D Vohra- Tata McGraw Hill Education Private Limited, New
Delhi. 4th edition 2010

REFERENCES
Problems in Operations Research (Principles and Solutions), Prem Kumar Gupta, D S Hira- S.Chand &
Company LTD, New Delhi 4th edition 2009
“PERT & CPM”, L. S. Srinath, Affiliated East-West Press, New Delhi 3 rd edition 2001
NPTEL Resource: http://nptel.ac.in/courses/112106134/1
Course Learning Objectives
1. Understand the use of Operations Research for solving
problems by selecting appropriate modeling technique.
Use of linear programming for formulating and solving
problems.
2. Obtain the idea of using transportation and assignment
techniques in Real life problem solving.
3. Make use of sequencing, replacement and simulation
techniques for solving real life problems.
4. Applying queuing theory in solving real life problems
related to queues in a service facility and game theory
for working out strategies in conflict situations.
5. Demonstrate the use of network analysis techniques in
planning and scheduling of complex projects
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Unit I
INTRODUCTION: Definition, scope of Operations Research
and limitations of OR Models, Characteristics and phases of
OR.
Linear programming problems: Mathematical formulation
of L P P. Graphical solution methods.
The simplex method - slack, surplus and artificial variables.
Concept of duality, two phase method, dual simplex
method, Dynamic Programming.
12 Hours

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HISTORY

Frederick Taylor applies the scientific approach to improving

1890s operations in production ( industrial engineering )

Henry Gantt develops control charts for minimizing

1900s machine job completion times ( project scheduling )
Andre Markov studies how systems change over time.

Ford Harris develops approaches to determine the

optimal inventory quantity to order ( inventory theory )
1910s E.K. Erlang develops a formula for determining the
average waiting time for telephone callers ( queuing theory )
HISTORY

William Shewhart introduces the concept of control charts.

1920s Dodge and Romig develop the technique of acceptance
sampling ( quality control )

John von Neuman and Oscar Morgenstern develop

1930s strategies for evaluating competitive situations
( game theory )

World War II provides the impetus for the application of

Mathematical modeling for solving military problems.
1940s George Dantzig develops the simplex method for solving
Problems with a linear objective and constraints
( linear programming )
Operations Research Time Line

Harry Kuhn determines required conditions for optimality for

problems with a nonlinear structure ( nonlinear programming )

Ralph Gomory develops a solution procedure for problems

in which some variables are required to be integer valued
( integer programming )
1950s
PERT and CPM are developed ( project scheduling )

Richard Bellman develops a methodology for solving

multistage decision problems
( dynamic programming )
Operations Research Time Line
John Little proves a theoretical relationship between the
average length of a waiting line and the average time a
1960s customer spends in line ( queuing theory )
Specialized simulation languages such as SIMSCRIPT
and GPSS are developed ( simulation )

1970s The microcomputer is developed

N. Karmarkar develops a new procedure for solving

large-scale linear programming problems ( LP )

1980s The personal computer is developed

Specialized OR software packages that can run on

microcomputers are developed
Operations Research Time Line
Spreadsheet packages begin to play a major role in
modeling and solving management science models
1990s
TIMS and ORSA merge to form the Institute for
Operations Research and Management Science
( INFORMS )
HISTORY
During world war II…
• England formed first OR team for military management
• US took lead in usage OR techniques for mining
operations, Flight control, sea mines and so on.
• In 1950 OR was introduced as subject in American
Universities
• OR started just before World War II in Britain with the
establishment of teams of scientists to study the strategic
and tactical problems involved in military operations. The
objective was to find the most effective utilisation of
limited military resources by the use of quantitative
techniques.

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DEFINITION
“OR is the application of modern methods of
mathematical science in complex problems involving
management of large systems of men, machine, materials
and money in industry, business, government and defence.
The distinctive approach is to develop a scientific model of
the system, incorporating measurement of factors such as
chance and risk to predict and compare the outcomes of
alternative decisions, strategies or controls”

“OR is the scientific approach to decision making which

seeks to determine how best the system operates under
condition of allocating scarce resources”

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Problem Solving
Formulate the
Problem
Situation Problem
Implement a Solution Statement

Data
Construct
a Model
Implement
the Solution

Model

Procedure
Find
a Solution
Establish
a Procedure

Test the Model

and the Solution Solution Tools

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Introduction
Operations
• The activities carried out in an organization.
Research
• The process of observation and testing
characterized by the scientific method. Situation,
problem statement, model construction,
validation, experimentation, candidate solutions.
Model
• An abstract representation of reality.
Mathematical, physical, narrative, set of rules in
computer program.

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Introduction
Systems Approach
• Include broad implications of decisions for the
organization at each stage in analysis. Both quantitative
and qualitative factors are considered.
Optimal Solution
• A solution to the model that optimizes (maximizes or
minimizes) some measure of merit over all feasible
solutions.
Team
• A group of individuals bringing various skills and
viewpoints to a problem.
Operations Research Techniques
• A collection of general mathematical models, analytical
procedures, and algorithms.
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Features of Operational Research
• Decision-Making
• Scientific Approach
• Inter-Disciplinary Team Approach
• Systems Approach
• Use of Computers
• Objectives
• Human Factors

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Steps in Operational Research
1
Problem formulation
1. Problem formulation
2
2. Modeling Model building

3. Derive solution 3
Data collection

4. Test
4
Data analysis
5. Establish control on solution
6. Implementation 5
Coding

Model No
6 Fine-tune
verification and model
validation

Yes

7
Experimental design

8
Analysis of results

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Scope of OR
• The scope of OR is not only confined to any specific
agency like defence services but today it is widely used in
all industrial organisations.
• It can be used to find the best solution to any problem be
it simple or complex. It is useful in every field of human
activities. Thus, it attempts to resolve the conflicts of
interest among the components of organization in a way
that is best for the organisation as a whole.
• National Planning and Budgeting
• Defence Services
• Industrial Establishment and Private Sector Units
• R & D and Engineering

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Scope of OR
National Planning and Budgeting
• Five Year Plans
• Annual Budgets
• Forecasting of Income and Expenditure
• Scheduling of Major Projects of National Importance
• Estimation of GNP
• GDP
• Population
• Employment and Generation of Agriculture Yields, etc.

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Scope of OR
Defence
• Development of New Technology
• Optimization of Cost and Time
• Tender Evaluation
• Setting and Layouts of Defence Projects
• Assessment of “Threat Analysis”
• Strategy of Battle
• Effective Maintenance and Replacement of Equipment
• Inventory Control,
• Transportation
• Supply Depots, etc.
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Scope of OR
Industrial Establishments and Private Sector Units
• Plant Location and Setting Finance Planning
• Product and Process Planning
• Facility Planning and Construction
• Production Planning and Control
• Purchasing
• Maintenance Management
• Personnel Management, etc.

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Scope of OR
R & D and Engineering
• Technology Forecasting and Evaluation,
• Technology and Project Management,
• Preparation of Tender and Negotiation,
• Value Engineering,
• Work/Method Study and so on.

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Limitations of
Operations Research
• Magnitude of Computation (Need for computers )
• Non-Quantifiable Factors
• Distance between User and Analyst
• Time and Money Costs
• Implementation

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 Applications Research
Burger King uses linear programming to determine how
different cuts of meat should be blended together to
produce hamburger patties at minimum cost while still
meeting certain specifications such as fat content,
texture, freshness, and shrinkage.
As the cost of different cuts of meat changes, the firm
reevaluates its model to determine whether its recipe
should be modified.

Scheduling aircraft crews is a complex problem

involving such factors as the type of aircraft to
be flown, the cities of origination and termination
for the flight, the intermediary cities visited by
the aircraft, and the length of the flight.
Federal and union rules govern the placement of
personnel on the aircraft.
To address these issues, American Airlines has
developed an integer linear programming model
that allows the company to quickly determine an
optimal flight schedule for its personnel.
 Following the California earthquake in January 1994,
Interstate 10, a main freeway serving the Los Angeles
area, needed to be rebuilt quickly.
The project prime contractor was given a fairly short
5 month deadline to reopen the roadway. To encourage
the work to be done as quickly as possible, the contractor
was offered a bonus of $500,000.00 for each day by which
it was able to beat the deadline.
Using a project scheduling technique known as the
critical path method , the contractor was able to schedule
work crews so as to be able to complete the repair work a
month earlier than the project deadline. As a result, the
contractor collected a $15 million dollar bonus.

Sony Advanced Traveler Information System

The marriage of the microprocessor with the Global
Positioning Satellite System has enabled Sony
Corporation to develop an onboard navigation system
capable of giving directions to a car’s driver. This
information is especially valuable during traffic
conditions such as rush hour congestion. The software is
based on an operations research model known as a
shortest path network.
 Mrs. Fields operates a nationwide chain of cookie
shops specializing in fresh-baked chocolate chip
cookies. The chain has equipped each shop with
a PC-based information system to aid personnel
in deciding when additional cookies should be
baked and the amounts that should be produced.
This system relies on the operations research
techniques of demand forecasting and inventory
modeling .

Lines form as visitors await their turn to ride or view the

most popular attractions. Disney incorporates waiting
line or queuing models into its overall design plans for
the park.
These models mirror customer behavior and tolerance
for waiting in line. As a result, Disney developed an
entirely new “industry” of waiting line entertainment to
maintain customer satisfaction levels and enhance the
value and excitement of the ride or attraction.
NYC handles over 20,000 tons of garbage per day. To
dispose of this trash, the city operates 3 incinerators.
Refuse is also sent by barge from marine transfer
stations to the Fresh Kills Landfill.
To determine future operational plans for this landfill,
the Department of Sanitation undertook an operations
research analysis. The result was development of the
BOSS ( barge operation systems simulation ) model.
This simulation model enabled the department to
determine the number of additional barges that should
be purchased to handle future demands. It also helped
plan the dispatching of these barges.
During the 1970s, U.S. automobile manufacturers saw a
steady decline in their market share due to competition
from Japanese and European manufacturers.
In response, Ford Motor Co. embarked on a “Quality Is
Job One” campaign.
Suppliers were held to tighter standards, and new quality
control procedures were developed.
As a result of these quality management activities, the
firm was able to reverse its decline in market share and
profitability.
Successful Applications of Management Science

Copyright © 2007 The McGraw-Hill Companies. All rights reserved. McGraw-Hill/Irwin 1–27
Successful Applications of Management Science

Copyright © 2007 The McGraw-Hill Companies. All rights reserved. McGraw-Hill/Irwin 1–28
Classification of OR/MS Techniques

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