Lesson 1 Operations Research Power Point
Lesson 1 Operations Research Power Point
Lesson 1 Operations Research Power Point
Historical Origin and Development
Operations Research is a ‘war baby’. It is because, the first problem attempted to
solve in a systematic way was concerned with how to set the time fuse bomb to be
dropped from an aircraft on to a submarine. during the Second World War.
1. It was necessary to decide upon the most effective utilization of the available
resources to achieve the objective.
2. It was also necessary to utilize the military resources cautiously. Hence, the
Generals of military, invited a team of experts in various walks of life such as
scientists, doctors, mathematicians, business people, professors, engineers etc.,
and the problem of resource utilization is given to them to discuss and come out
with a feasible solution. These specialists had a brainstorming session and came
out with a method of solving the problem, which they coined the name “Linear
Programming”. This method worked out well in solving the war problem.
Operations is used to refer to the problems of military and the word
Research is use for inventing new method. As this method of solving the
problem was invented during the war period, the subject is given the name
‘OPERATIONS RESEARCH’ and abbreviated as ‘O.R.’
Decision Making involves all activities and thinking that are necessary to
identify the most optimal or preferred choice among the available alternatives.
Purpose:
Purpose:
- Programmed decisions meant for repetitive and well-structured problems. Inventory Problems,
Product Mix Problems, etc.
- Non-Programmed decisions meant for non-routine, novel, ill-structured problems. Policy matters
Product market mix, plant location Etc.
3. Decisions (Depending on the persons involved)
- Individual
- Managerial
- Economic
- Social
- Business
- Political
- Social
The first two are two extremes and the third one is falls between
these two with certain probability distribution
OBJECTIVE OF OPERATIONS RESEARCH
Operations Research is the art of winning wars without actually fighting. - Aurther
Clarke
Operations Research is the art of giving bad answers to problems where otherwise
worse answers are given. - T.L. Satty.
1. Operations Research is not a well-defined science like Physics, Chemistry etc. All
these sciences are having well defined theory about the subject matter, whereas
operations research do not claim to know or have theories about operations.
2. The objective of operations research says that the decisions are made by
brainstorming of people from various walks of life. This indicates that operations
research approach is inter- disciplinary approach, which is an important character of
operations research.
Blaise Pascal and Christian Huygens solved problems involving
complex decisions (problem of points) by using game-theoretic ideas and
expected values;
The primary purpose of the research project is to determine the use of
operational research techniques in the process of improving managerial
decisions.
LINEAR PROGRAMMING
Linear Programming is a mathematical technique for finding the best use of an
organizational resources. It is a quantitative analysis technique for optimizing an
objective function given a set of constraints on problems.
It is one of the best resources for any business. It allows for objective based
decisions and can reduce waste of all kinds.
2. There must be an alternative cause of action, one of which will achieve the
objective.
1. Extreme Points
5. Alternative Optima
BASIC OR CONCEPTS
"OR is the representation of real-world systems by mathematical models together with the
use of quantitative methods (algorithms) for solving such models, with a view to optimizing."
- Decision variables, which are the unknowns to be determined by the solution to the
model.
- An optimal solution to the model is the identification of a set of variable values which are
feasible (satisfy all the constraints) and which lead to the optimal value of the objective function.
- An optimization model seeks to find values of the decision variables that optimize
(maximize or minimize) an objective function among the set of all values for the decision
variables that satisfy the given constraints.
Example
The Two Mines Company own two different mines that produce an ore which, after
being crushed, is graded into three classes: high, medium and low-grade. The
company has contracted to provide a smelting plant with 12 tons of high-grade, 8
tons of medium-grade and 24 tons of low-grade ore per week. The two mines have
different operating characteristics as detailed below
X 180 6 3 4
Y 160 1 1 6
Consider that mines cannot be operated in the weekend. How many days per week should
each mine be operated to fulfill the smelting plant contract?
Solution
What we have is a verbal description of the Two Mines problem. What we need to do is to
translate that verbal description into an equivalent mathematical description.
In dealing with problems of this kind we often do best to consider them in the order:
Variables
Constraints
Objective
This process is often called formulating the problem (or more strictly formulating a
mathematical representation of the problem).
Variables
It is best to first put each constraint into words and then express it in a mathematical form.
ore production constraints - balance the amount produced with the quantity required under
the smelting plant contract
Ore
High 6x + 1y ≥ 12
Medium 3x + 1y ≥ 8
Low 4x + 6y ≥ 24
days per week constraint - we cannot work more than a certain maximum number of
days a week e.g. for a 5 day week we have
x≤5 y≤5
Mathematical representation of the problem:
Objective
subject to
6x + y ≥ 12
3x + y ≥ 8
4x + 6y ≥ 24
x ≤ 5 y ≤ 5 x, y ≥ 0
Note:
the objective and constraints are linear i.e. any term is either a constant
or a constant multiplied by an unknown (e.g. 24, 4x, 6y are linear terms but xy or
x 2 is a non-linear term)
Work scheduling
Note: that the key to formulating LP's is practice. However a useful hint is that
common objectives for LP's are maximize profit/minimize cost
FORMULATING LINEAR PROGRAMMING
1. By Graphical Method
2. Simplex Method
Graphical Method
Problem:
Dimensions Ltd., makes two possible products ; tables and chairs; which must be processed through
assembly and finishing departments. Assembly has 60 hours available per week; finishing can handle
up to 48 hours of work a week. Manufacturing one table requires 4 hours in assembly and 2 hours in
finishing. Each chairs requires 2 hours in assembly and 4 hours in finishing.
If profit is $8 per table and $6 per chair, the problem is to determine the best possible combination
of tables and chairs to produce and sell in order to realize the maximum profit.
Tables Chairs
Hours per unit of Hours per
Products Week
Assembly 4 2 60
Finishing 2 4 48
Maximize Profit: P = $ 8 T + $ 6 C
Subject to : 4T + 2C ≤ 60
2T + 4C ≤ 48
By Graphical Solution
Equations: 4T + 2C = 60
2T + 4C = 48
Set T = 0 4T + 2C = 60 2T + 4C = 48
2C = 60 4C = 48
C = 30 C = 12
Set C = 0 4 T + 2C = 60 2T + 4C = 48
4T = 60 2T = 48
T = 15 T = 24
Solving Point by Elimination
Therefore , Point D yields the higher weekly profit = 132 where you the
plant can manufacture 12 tables and 6 chairs.
Problem:
A rancher is mixing two types of food; Brand X and Y for his cattle. If each
serving is required to have 60 grams of protein and 30 grams of fats, were
Brand A has 15 grams of protein and 10 grams of fats and cost 80 cents per
unit. Brand B contains 20 grams of proteins and 5 grams of fats and cost 50
cents per unit. How much of each type should be used to minimize cost to the
rancher?
Composition A B Total
Fats 15 20 60
Proteins 10 5 30
Cost per unit $0.80 $0.50
Solution:
Let X = Brand A
Y = Brand B
Objective:
10X + 5Y ≥ 30
By Graphical Solution
10X + 5Y = 30
Set X = 0 15X + 20Y = 60 10X + 5Y = 30
20Y = 60 5Y = 30
Y = 3 Y = 6
X = 4 X = 3
A ( 0, 0) = 0
Therefore , Point D yields the minimum cost of 2.4 and 1.2 which cost $ 2.52.
Problem 3.
A garden shop wishes to prepare a special supply of fertilizer at a minimal cost by mixing two
fertilizers A and B. the mixture is to contain at least
45 units of phosphate
36 units of nitrate
40 units of ammonium
Phosphate 5 3 45
Nitrate 2 3 36
Ammonium 2 5 40
How many pounds of each fertilizer should the shop use in order to minimize
their cost.
Y = # lbs of Fertilizer B
Constraints: 5X + 3Y ≥ 45
2X + 3Y ≥ 36
2X + 5Y ≥ 30
2X + 3Y = 36 eq. 2
2X + 5Y = 40 eq. 3
Eq. 1 5X + 3Y = 45 Eq. 2 2X + 3Y = 36
X=0 3Y = 45 3Y = 36
Y = 45 / 3 Y = 36 / 3
Y = 15 Y = 12
Eq. 3 2X + 5Y = 40
5Y = 40
Y = 8
Solving when Y = 0
5X + 3Y = 45 2X + 3Y = 36 2X + 5Y = 40
5X = 45 2X = 36 2X = 40
X = 9 X = 18 X = 20
Construct a graph:
I: 15,2
Solving for point H: ( 3,10 ) because only this point that do not contain zero,0
5X + 3Y = 45 eq. 1
2X + 3Y = 36 eq. 2
5X + 3Y = 45 - 5X - 3Y = - 45
2X + 3Y = 36 2X + 3Y = 36
------------------------
-3X + 0 = - 9
X = 3
Substitute : X = 3 5X + 3Y = 45
5(3) + 3Y = 45
15 + 3Y = 45
3Y = 45 – 15
3Y = 30
Y = 10
Point H : 3, 10
2X + 5Y = 40 -2X - 3Y = - 36
2X + 5Y = 40
------------------------------
2Y = 4
Y = 2
Substitute: y = 2 2X + 3Y = 36
2X + 3(2) = 36
2X + 6 = 36
X = 15
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