You are on page 1of 13

Topic One: Introduction to Operations Research

1.1. Definition of Operations Research

 Operations research is a discipline that uses mathematical modelling,


statistical analysis, and optimization techniques to help make better
decisions and solve complex problems in organizations.
Cont…

1.2. History of Operations Research

 Operations Research came into being during World War-II (1939 -


1945).

 During this war military management of England had called up on a


team of scientists to study the problems related to air and land defense
of the country.

 The team had to come out with the plans that could make the optimal
utilization of limited available resources.
Cont…

 The research work done by this team on military operations was


named as (OR) operations research.

 After the end of world war, industrial managers got attracted


towards Operational Research teams for finding solutions to their
complex executive-type problems.

 Operational Research club of Britain was formed in 1948, which


in 1954 become the Operational Research Society.
Cont…

 The Operations Research Society in America was formed in 1952.

 The first international conference on operations research was held at


oxford university in 1957.

 Today, the utilization of operational research techniques has spread


out from army to a wide range of departments at all levels.
Cont…

1.3. Components of Operations Research

Mathematical programming

 Operations research uses various mathematical programming


techniques, such as linear programming, integer programming, and
dynamic programming, to optimize decision-making processes.

Statistics and algorithms

 Operations research relies heavily on statistics and algorithms, which


are part of the overall field of mathematics.
Cont…

Problem Formulation

 This involves identifying and defining the objective of the study.

 It includes specifying the variables, constraints, and the

relationships between them.

Optimization

 It refers to the process of finding the best solution to a problem

from all feasible solutions.


Cont…

1.5. Limitation of Operations Research

Non-Quantifiable variables:

OR can give an optimum solution to a problem if all the variables


are quantified. But, all variables in a system cannot be quantified.

Time and Cost:

To implement OR in an organization, it consumes more time and


cost.
Cont…

Distance b/n Manager and OR Specialist:

A manager is unable to understand the complex nature of Operations


Research. Thus there is a big gap between the two personnel.
Topic Two: Linear Programming

2.1. Basic Concepts in Linear Programming

 Linear programming is a mathematical technique used to optimize a


linear objective function subject to a set of linear constraints.

 It is a mathematical technique for finding optimal solutions to


problems that can be expressed using linear equations &
inequalities.
Cont…
Components of LP

Objective Function

 This is the function that needs to be maximized or minimized.

 For instance, in a profit maximization problem, the objective


function might be to maximize the total revenue or profit.
Cont…
Components of LP

Decision Variables

These are variables that represent quantity of things which can be


produced, sold or consumed.
Cont…
Components of LP

Constraints

These are Limitations or restrictions on the availability of resources for


the system. ( Factors that affect the production, sale and consumption of
good and service.
Cont…
Components of LP

Non-negativity Constraints: all decision variables should always take


non-negative values.

You might also like