MODULE 1

Features of OR:
Key features include a focus on problem identification, the application of various techniques
like linear programming and simulation, and the use of interdisciplinary teams to address
complex issues.

1. Scientific and Systematic Approach:

 OR utilizes a step-by-step process to analyse problems and arrive at solutions.

 It relies on data, logical reasoning, and mathematical models.

2. Quantitative Analysis:

 OR heavily relies on mathematical and statistical methods to analyse data and

identify patterns.

 Techniques like linear programming, simulation, queuing theory, and probability

theory are used to model and solve complex problems.

3. Interdisciplinary Approach:

 OR draws upon knowledge and expertise from various fields like mathematics,
statistics, computer science, economics, and engineering.

 Interdisciplinary teams are often formed to bring different perspectives and skills to
bear on complex problems.

 This collaborative approach helps to develop comprehensive and effective solutions.

4. Optimization:

 OR aims to find the best possible solution to a problem, given specific constraints and
objectives.

 This may involve maximizing profit, minimizing costs, or optimizing resource

allocation.

 Mathematical optimization techniques are used to identify the optimal solution.

5. Problem-Solving Focus:

 OR is problem-oriented and seeks to identify the root causes of issues and develop
effective solutions.

 It involves identifying key problem areas, formulating mathematical models,

collecting and analysing data, and providing solutions.
6. Model Building:

 OR relies on building mathematical and statistical models to represent real-world

systems and processes.

7. Real-World Applications:

 OR is used in a wide range of industries and applications, including manufacturing,

logistics, transportation, healthcare, finance, and marketing.

 It helps to improve efficiency, reduce costs, and enhance decision-making in various

organizational settings.

OR models:
Operations research models are powerful tools that can help organizations make informed
decisions and optimize their operations. These models use mathematical and statistical
techniques to analyse complex systems and processes, identify problems, and offer
solutions.

1. Iconic models:

In operations research, an iconic model is a physical representation of a real-world

system, often scaled down for easier study and analysis.

These models, like toy cars or blueprints of buildings, offer a visual understanding of the
system's components and relationships.

2. Analogue models:

In analogue models one set of properties is used to represent another set of properties.
After the problem is solved, the solution is re-interpreted in terms of the original system.

In Operations Research (OR), an analogue model is a type of model that uses one system
or entity to represent another, often simpler system, to understand and solve complex
problems. These models focus on relationships and behaviours rather than physical
resemblance.

Eg: Contour lines on a map are analogues of elevation as they represent the rise and fall
of heights.

3. Symbolic models:

In symbolic models, letters, numbers and other types of mathematical symbols are used
to represent variables and the relationship between them.

Thus, symbolic models are some kinds of mathematical equations or inequalities

reflecting the structure of the system they represent.
 4. Mathematical models:

In Operations Research (OR), a mathematical model is a representation of a real-world

system or problem using mathematical concepts and language.

It involves defining variables, equations, inequalities, and logical relationships to describe

the system's behaviour and make informed decisions.

5. Deterministic models:

In Operations Research, a deterministic model is a mathematical representation of a

system where all parameters and variables are known with certainty, and there's no
randomness or uncertainty involved.

Deterministic models are useful for analysing situations where precise, predictable
outcomes are desired, such as in linear programming, inventory management, and
transportation problems

6. Probabilistic models:

In Operations Research, probabilistic models incorporate uncertainty into decision-

making by representing parameters or variables as probability distributions rather than
single values.

These models are particularly useful when dealing with complex systems and situations
where factors like demand, lead times, or other inputs are not fixed but have a range of
possibilities with associated probabilities.

7. Static models:

In Operations Research (OR), a static model represents a situation at a specific point in

time and doesn't consider time-dependent changes.

8. Dynamic models:

In Operations Research, a dynamic model is one that accounts for changes and decisions
over time, unlike static models which assume a fixed state.

Dynamic models are particularly useful for multi-stage decision-making problems where
decisions in one period influence future periods, such as inventory management or
resource allocation.

Limitations of OR:
Operations research, while powerful, has several limitations. It can be expensive, relies
heavily on technology, may overlook human factors, and the accuracy of its predictions
depends on the quality of data and assumptions
1. Cost and Resources:

 Operations research can be expensive due to the need for specialized software,
skilled professionals, and the time required for modelling and analysis.

 This can be a barrier for smaller organizations or those with limited budgets.

2. Reliance on Technology:

 Operations research heavily relies on computer software and complex algorithms,

making it dependent on technology and its availability.

 This dependence can be a limitation if technology is unavailable or unreliable, or if

the software is difficult to implement or maintain.

3. Neglect of Human Factors:

 Operations research models often abstract away from the human element in
decision-making, focusing on quantifiable factors and overlooking the impact of
human emotions and social dynamics.

 This can lead to solutions that are technically sound but not feasible or effective in
real-world situations.

4. Data Accuracy:

 The accuracy of operations research solutions depends heavily on the quality and
availability of data, as well as the validity of the underlying model assumptions.

 If the data is incomplete, inaccurate, or outdated, the resulting solutions may be

flawed.

5. Communication and Implementation Challenges:

 Operations research solutions are often expressed in complex mathematical terms

that may not be easily understood by managers and executives.

 This can hinder communication and collaboration, leading to difficulties in

interpreting and implementing the solutions.

Applications of OR:
1. In military:

In World War II Operations Research was first used to effectively help high level decision
makers to critically analyse various alternatives which could be fruitfully used to support
planning for strategic ground, air, and maritime operations.

2. In transportation:
 Operational Research (OR) plays a crucial role in transportation by optimizing various
aspects to improve efficiency and reduce costs. It's used in areas like route planning,
traffic flow management, scheduling, and capacity planning

3. In industry:

Operation research is used in industries to study production processes to increase

productivity and reduce costs while maintaining quality.

4. In agriculture:

Operation research helps us in using our resources optimistically and achieve efficiency
in production of crops in agriculture. Through Operation research it helps us to calculate
the profitability and also helps us in maximizing profits.

5. In modern business:

In modern business, OR is used in areas like supply chain management, inventory

control, production planning, and risk management.

By using mathematical models and analytical techniques, businesses can improve

efficiency, reduce costs, and enhance customer satisfaction.

Standard form of LPP:

Canonical form of LPP:
In linear programming, the canonical form is a specific standard form where all constraints
are equality constraints and all variables are non-negative.

Advantages of OR:
 Improved decision making
 Enhanced productivity and efficiency
 Better planning and scheduling
 Cost reduction
 Optimized resource allocation

Degeneracy in LPP:
In linear programming, degeneracy occurs when a basic feasible solution has fewer positive
basic variables than the number of constraints, or when a basic variable has a zero value.

MODULE 2
Feasible solution:
A feasible solution is a solution that satisfies all the constraints and limitations of a given
problem.

Artificial variables in simplex method:

In Linear Programming (LPP), artificial variables are non-negative variables added to equality
or "greater than or equal to" constraints to convert them into equality constraints.

Slack and surplus variables:

Slack variables are non-negative variables added to the left-hand side of "less than or equal
to" (≤) constraints to convert them into equations.

Surplus variables, on the other hand, are non-negative variables subtracted from the left-
hand side of "greater than or equal to" (≥) constraints to also convert them into equations.

MODULE 3
Transportation problem:
A transportation problem is a type of linear programming problem focused on minimizing
the cost of distributing goods from multiple sources to multiple destinations.
Transportation table:
A transportation table is used to deal with the transfer of the product from a source or
sources to multiple destinations.

North west rule:

The Northwest Corner Rule is a method for finding an initial feasible solution in
transportation problems. It involves starting at the top-left cell (Northwest corner) of the
transportation table and allocating as much supply as possible to that cell without exceeding
demand.

Steps of the Northwest Corner Rule:

1. Start at the Northwest Corner: Begin with the top-left cell of the transportation
table, often representing the first source and the first destination.

2. Allocate Supply: Determine the maximum amount of supply that can be allocated to
this cell without exceeding either the row's supply or the column's demand.

3. Adjust Supply and Demand: Subtract the allocated amount from both the row's
supply and the column's demand.

4. Move to the Next Cell:

 If the row's supply is exhausted (reduced to zero), move down to the next row
in the same column.

 If the column's demand is exhausted (reduced to zero), move right to the next
column in the same row.

5. Repeat: Repeat steps 2-4 until all supplies and demands are satisfied.

Vogel’s approximation method (VAM) steps:

1. Calculate Penalties: For each row and column, determine the penalty by subtracting
the smallest cost from the second smallest cost.

2. Identify Highest Penalty: Find the row or column with the maximum penalty.

3. Allocate to Lowest Cost Cell: In the selected row or column, allocate the maximum
possible amount to the cell with the lowest cost.

4. Adjust Supply and Demand: Update the supply and demand figures based on the
allocation.

5. Eliminate Satisfied Rows/Columns: Cross out the row or column where all supply or
demand has been satisfied.

6. Repeat: Repeat steps 2-5 until all supply and demand constraints are satisfied.
Maxima minima method:
The Matrix Minima Method, also known as the Least Cost Method, is a technique used in
transportation problems to find an initial basic feasible solution by prioritizing the cell with
the lowest unit transportation cost.

1. Identify the minimum cost cell: Locate the cell in the transportation table with the
lowest unit transportation cost (Cij).

2. Allocate the maximum possible amount: Allocate the maximum possible amount
(min(ai, bj), where 'ai' is the supply and 'bj' is the demand) to the identified cell.

3. Cross out the satisfied row or column: If the allocation exhausts the supply of a row
(ai = 0), cross out that row. If the allocation exhausts the demand of a column (bj =
0), cross out that column.

4. Repeat for the remaining table: Repeat steps 1-3 for the remaining, uncrossed rows
and columns until all supply and demand constraints are satisfied.

5. If multiple minimum costs exist: If multiple cells have the same minimum cost, you
can arbitrarily choose any of them to make the allocation.

Assignment problem:
Step-by-step process:

1. Row Reduction:

 Identify the smallest element in each row of the cost matrix.

 Subtract this minimum value from every element in that row.

 This ensures each row has at least one zero.

2. Column Reduction:

 Identify the smallest element in each column of the reduced matrix (after row
reduction).

 Subtract this minimum value from every element in that column.

 This ensures each column has at least one zero.

3. Optimal Test:

 Draw the minimum number of horizontal and vertical lines (not diagonals) to
cover all zeros in the matrix.

 If the number of lines equals the number of rows (or columns), the solution is
optimal.
 4. Iteration (if needed):

 If the optimal test fails (number of lines less than the number of rows), find
the smallest uncovered element.

 Subtract this value from all uncovered elements and add it to the elements at
the intersection of the lines.

 Repeat steps 3 and 4 until an optimal solution is found.

Maintenance crew scheduling:

Maintenance crew scheduling involves planning and assigning maintenance tasks to crews,
considering both crew availability and maintenance demands.

How to convert max into min in assignment problem:

The maximization problem is converted into minimization problem by subtracting from the
highest value with all elements of the given table.

MODULE 4
Sequencing problem:
In Operations Research, a sequencing problem involves determining the optimal order
(sequence) in which to process a set of jobs on a set of machines or facilities, aiming to
minimize a specific objective like total elapsed time or cost.

Idle time in sequencing problem:

In sequencing problems, idle time refers to the period when a machine or resource is
available but not processing a job.

MODULE 5
Network diagram:
In Operations Research, a network diagram is a visual representation of a project or process,
showing activities and their relationships.

Network scheduling:
Network scheduling in operations research is a technique for planning and scheduling large
projects by visualizing them as a network of activities and events.
Gantt chart:
A Gantt chart is particularly useful in sequencing problems when you need to visualize the
sequence of tasks and their durations within a project timeline.

Objective of network analysis:

The main objectives of network analysis are to minimize total project duration, minimize
project costs, identify critical paths, and optimize resource allocation.

Max-flow min-cut:
The Max-Flow Min-Cut Theorem in network flow theory states that the maximum flow
possible through a network, from a source to a sink, is equal to the minimum capacity of any
cut in the network.

Earliest occurrence and latest occurrence time:

Earliest Occurrence Time (TE) is the earliest possible time an event can occur, while Latest
Occurrence Time (TL) is the latest time it can occur without delaying the project.

PERT analysis:
PERT (Program Evaluation and Review Technique) analysis is a project management method
that helps determine the shortest possible time to complete a project by analyzing task
dependencies and durations.

It's like creating a roadmap for a project, highlighting the critical tasks and their
relationships.

1. Identifying Tasks: PERT analysis starts by listing all the tasks needed for a
project.
2. Estimating Time: Each task gets three time estimates: optimistic (shortest
possible time), most likely, and pessimistic (longest possible time).
3. Showing Relationships: PERT charts visually show how tasks depend on each
other. Some tasks need to be completed before others can start
(dependencies), while others can be done simultaneously.
4. Finding the Critical Path: The critical path is the longest sequence of tasks in
the project. It represents the minimum time needed to complete the project.
5. Planning and Control: PERT analysis helps project managers plan and control
the project by identifying potential delays, optimizing resource allocation, and
tracking progress.
Main components of a PERT chart:

 Nodes: it represents the task or milestones. every node represents the task name
and may also show duration of the task.

 Arrows: it indicates the direction or sequence of task and also dependencies

between them. suppose an array from A to B, then task A must be completed before
task B.

 Time Estimation: It estimates the time duration to complete the task.

 Critical Path: The critical path is the largest path in project management that always
results in the shortest time to complete the project.

 Milestones: It is Key point in the project timeline that represent significant events or
deadlines.