Operation Research

Introduction
Syed Atta ur Rehman
rehmansyedatta@gmail.com
0312-7437606 (only what’s app OR SMS )
Course Introduction
• 3 lectures per week (3 cr)

Course Assesment
• Quizzes and Homework Assignments (Throughout the Semester)
• Midterm Exam
• Final Exam
• Group Project (Weeks 11-14, focusing on an OR application OR Research Article)
What is Operation Research (OR)?
• Operation Research (OR) a scientific approach to decision-making.
• OR uses mathematical models, analytical methods, and data to solve
complex decision-making problems.
• Historical context of OR, mentioning its origin during World War II and
its role in military operations.
Objectives of Operation Research
• To optimize decision-making processes.
• To find optimal solutions to complex problems.
• To identify the best possible solutions within given constraints.
• To help organizations make informed and efficient decisions.
Scope of Operation Research
• Management science: Optimization of business processes.
• Logistics and supply chain management: Efficient distribution and
inventory management.
• Engineering: Design and process optimization.
• Finance: Portfolio optimization and risk assessment.
• Healthcare: Resource allocation and patient scheduling.
• Marketing: Market analysis and campaign optimization.
• Emphasize that OR's principles are applicable in diverse industries and
sectors
Application Areas of OR
Real-world application areas where OR is used extensively, such as:
• Transportation and logistics: Route optimization, vehicle scheduling.
• Inventory management: Efficient stock control and order quantities.
• Project management: Time and resource allocation in large projects.
• Finance and investments: Portfolio optimization, risk assessment.
• Healthcare optimization: Resource allocation in hospitals, patient
scheduling.
• Marketing strategies: Pricing, advertising, and market segmentation.
OR enhances decision-making in these areas by providing data-driven
insights!
 Operation Research Process
Fundamental steps in the Operations Research process:
1. Problem formulation: Identifying and defining the problem to be solved.
2. Model building: Creating a mathematical representation of the problem.
3. Data collection: Gathering relevant data for analysis.
4. Solution methodology: Applying mathematical and computational
techniques to find solutions.
5. Model validation: Checking the accuracy and reliability of the model.
6. Implementation: Putting the recommended solution into practice.
These steps are iterative and may require revisions!
Operation Research Techniques
An overview of common OR techniques, including:
• Linear Programming (LP): Optimization of linear objective functions.
• Integer Programming (IP): Handling problems with integer constraints.
• Network Analysis: CPM and PERT for project scheduling.
• Nonlinear Programming (NLP): Optimizing nonlinear functions.
• Simulation: Modeling complex systems through simulation.
• Heuristic methods: Approximate solutions for complex problems.
The choice of technique depends on the problem's characteristics!
Key Components of Operation Research
• Mathematical modeling: Defining objective functions, decision
variables, and constraints.
• Optimization: Maximizing or minimizing the objective function.
• Decision analysis: Considering risk, uncertainty, and sensitivity
analysis in decision-making.
Role of Computers
• Emphasize on the crucial role of computers in OR.
• Computers enable complex mathematical models and algorithms to
be solved efficiently.
• OR software and tools, such as Excel Solver and specialized OR
packages.
Benefits of OR
- Improved decision quality.
- Cost savings and resource optimization.
- Competitive advantage in business.
Challenges and Limitations
• Data availability and quality.
• Assumptions and simplifications made in models.
• Resistance to change within organizations.
Emphasize that these challenges should be considered in real-world
applications!
Future Trends
Some emerging trends in OR:
• Big data analytics: Leveraging large datasets for better decision-
making.
• Artificial intelligence and machine learning: Integrating AI algorithms
into OR models.
• Sustainability and green OR: Optimizing processes for environmental
impact reduction.
Case Study (Assignment-1)

• Analyze the case study and discuss the application of OR techniques.

• Explain the problem, the approach taken, and the results achieved.
• Present a 5-7 Minutes OR case study relevant to the lecture's topics.
Q&A
Thank You!