Welcome to

Operational Research

CM4140

Operational Research

CM4140
Lecturer: M. P. Dhanushika

E-mail: dhanushikam@uom.lk
Available at 2SL10 of the Dept. of CM

Shedule

Lectures: Friday 8.15 am : 10.15am

Tutorials: To be desided

Assesment

Assignments: 2 or 3 (including take home assignment)

Quizzes: 2 out of 3 / 3 out of 4

(surprised quizzes / most at tutorial time)

Final Evaluation

60% End of semester examination

+
40% Continuous Assessments

Eligibility to sit the final exam

80% Attendance

+
40% Continuous Assessments

Seminar

To be decided

Communication

You are expected to respond to questions asked by the

lecturer during the lectures.
Suggestions, comments, complaints:
Directly to lecturer
via Student Representative to lecturer

Lecture Notes

Handouts will be uploaded to Moodle, but not my slides

You must not

You must not

 Operations Research
Decision Science (s)
Quantitative Methods

Management Science

represent reality using

Mathematical models

Research

Operations

Better Solution
Optimal Solution
For a particular problem
The activities carried out in an
organization.

The process of observation and

testing by the scientific method.
To find a solution

Maximum
production with
lowest cost

Wide variety of
productions

Minimize
unproductive
capital investments

Hire good
labor and
retain it

Profit
(by considering available materials, machines, labor, etc)
Crop yield
( by considering fertilizer, soils, water supply, etc)
Waiting time in queue
(by considering number of counters, speed of the person at counter)

Definitions of OR
Operational Research is a scientific method for providing executive

departments with

a quantitative basis for decisions regarding the

operations under their control.

Operational Research can be characterized as the application of

scientific methods, techniques and tools to problems involving the
operations of systems so as to provide those in control of the operations
with optimum solution to the problem.

Operational Research is a scientific approach to problem solving for

executive management.

Definition as a summery
Application of SCIENTIFIC METHOD

Study of LARGE & COMPLEX SYSTEMS

Analysis of MANAGERIAL PROBLEMS
Finding OPTIMAL SOLUTION

Use of MATHEMATICAL MODELS

Use of COMPUTERS & SPECIAL SW

What OR does?
To solve
problems in real world
The development and
application
of mathematical techniques
and models
To produce better quality
decisions

Steps in OR

Real-World
Problem

Implementation

Recognition and
Definition of the
Problem

Interpretation
Validation and
Sensitivity Analysis
of the Model

Formulation and
Construction of the
Mathematical
Model

Solution
of the Model

Recognition & Definition of the Problem

Reality

Processes
Restrictions
Goal

Mathematical Model
Variables
Constraints (equations, inequalities)
Objective function

Model

Linear Programming
Network Analysis
Dynamic Programming
OR Technique

Queuing Theory
Game Theory
Decision Theory

Recognition & Definition of the Problem

Reality
Handmade greeting cards & wall hangers

Processes
Restrictions
Goal

Materials enough to produce 100.

If we produce only cards, it is enough to
produce 75.
If we produce only hangers, enough to
produce 50.
Net Price of selling greeting card = Rs. 30
Net Price of selling wall hanger = Rs. 150
Number of greeting cards and wall hangers
we have to produce to get maximum profit?

Mathematical Model
Variables
Constraints (equations, inequalities)
Objective function
Model
X = Number of handmade greeting cards
Y = Number of wall hangers
X+Y <= 100
X<=75
Y<= 50
Profit = 30X + 150Y

Example 1
The Galaxy Industries Production Problem
Galaxy manufactures two toy doll models: Space Ray & Zapper.

$8 profit per dozen for Space Ray

$5 profit per dozen for Zappers
Resources are limited to
1000 pounds of special plastic.

Technological input

40 hours of production time per week.

Marketing requirement
Total production cannot exceed 700
dozens.

Space Rays requires 2 pounds

of plastic and 3 minutes of
labor per dozen.
Zappers requires 1 pound of
plastic and 4 minutes of labor
per dozen.

Number of Space Ray dolls & Zapper dolls they have to produce to
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get maximum profit?

 Decisions variables:
X1 = Weekly production level of Space Rays (in dozens)

X2 = Weekly production level of Zappers (in dozens).

Objective Function:
Weekly profit, to be maximized

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Linear Programming Model for the Galaxy

Problem
Max 8X1 + 5X2 (Weekly profit)
subject to
2X1 + 1X2 1000 (Plastic)
3X1 + 4X2 2400 (Production Time)
X1 + X2 700 (Total production)
Xj> = 0, j = 1,2
(Nonnegativity)

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Example 2: Diet Problem

At least student should got the following quantity through his diet
Energy requirement : 2000 kcal
Protein requirement : 0.055 kg
Calcium requirement : 800 mg
Food (per unit) Energy(kcal)

Protein(g)

Calcium(mg)

Price($)

Chicken

205

32

12

24

Eggs

160

13

54

13

Milk

160

285

Canteen of the hostel is serving following quantity per day

chicken: at most 3 servings/day
eggs: at most 2 servings/day
milk: at most 8 servings/day
What is the diet plan of the student in the case of minimizing total cost for food
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per day?

Applications of OR

Burger King uses OR technique

to determine how different cuts of meat should be blended
together to produce hamburger patties
at minimum cost
while still meeting certain specifications
fat content, texture, and freshness.

American Airlines

Scheduling aircraft crews is a complex problem

considering;:
type of aircraft to be flown
the cities of origination and termination for the flight,
the intermediary cities visited by the aircraft
length of the flight
OR technique that allows the company to quickly determine
an optimal flight schedule.

Sony Advanced Traveler Information System

Sony Corporation has developed an onboard

navigation system to give directions to a cars
driver.
valuable during traffic
The software is based on an operations research
Model.

The Interstate Freeway

Following the California earthquake in January 1994,
One of the main freeways in Los Angeles area, needed to be rebuilt
quickly.
The project contractor was given a fairly short 5 month deadline to
reopen the roadway.
To encourage the work , contractor was offered a bonus of $500,000.00
for each day by which it was able to beat the deadline.
the contractor was able to complete the repair work a month earlier
than the project deadline. As a result, the contractor collected a $15
million dollar bonus.

Disneyland & Disneyworld

Lines of visitors who await their turn to ride or view the most
popular attractions.
Disney use OR technique to develop an entirely new industry
of waiting line entertainment
to maintain customer satisfaction levels
to enhance the value and excitement of the ride or attraction.
Considering customer behavior and tolerance for waiting in line.