rii

Operations
Research

Unit1

Unit 1

Introductionto OR

Structure:
1.1
Introduction
Objectives
1.2
HistoricalBackground
1.3
Scopeof operationResearch
1.4
lmportantFeaturesof OR
1.5
Phasesof OR
1.6
Typesof OR Models
1.6.1 A broadclassification
of OR models
1.7
Methodology
of OR
1.7.1 Definition
of the problem
1.7.2 Construction
of the model
1.7.3 Solutionof the model
1.7.4 Validationthe model
1.7.5 lmplementation
of the finalresult
1.8
Techniques
or Toolsof OR
1.9
Model
The structureof Mathematical
1.9.1 Decisionvariablesand parameters
1.9.2 Objectivefunctions
1.9.3 Constraints
1.9.4 DietProblem
1.10 Limitations
of OR
1.11 Summary
1.12 TerminalQuestions
1.13 Answersof SAQs & TQs

1.1Introduction Applied Operations Research (AOR)

mization is the act of obtaining the b

gly given

circumstance.
In variouspracticalproblemswe may have to take many
technical
at severalstages.The ultimategoalof all
or managerial
decisions
such decisionsis to eithermaximizethe desiredbenefitor minimizethe
effort required.We make decisionsin our every day life withouteven
noticingthem.Decision-making
is one of the mainactivityof a manageror
executive.In simplesituations
decisionsare taken simplyby common
SikkimManipalUniversity

Page No. 1

OperationsResearch

Unit 1

But
sense,soundjudgmentand expertisewithoutusing any mathematics.
here the decisionswe are concernedwith are rather complexand heavily
loaded with responsibility.Examples of such decision are finding the
appropriateproduct mix when there are large numbers of productswith
requirement
or planningpublic
differentprofitcontributions
and productional
transportationnetwork in a town having its own layout of factories,
apartments,blocks etc. Certainlyin such situationsalso decisionmay be
arrivedat intuitivelyfrom experienceand commonsense,yet they are more
judiciousif backedup by mathematical
reasoning.The searchof a decision
may also be done by trial and error but such a searchmay be cumbersome
and costly. Preparativecalculationsmay avoid long and costly research.
Doing preparativecalculationsis the purpose of Operations research.
Operations research does mathematicalscoring of consequencesof a
decisionwith the aim ..rfoptimizingthe use of time, effortsand resources
and avoidingblunders.
LearningObjectives:
After studyingthis unit,you shouldbe able to understandthe following:
1. Knowthe significant
featuresin O.R.
of O.R.
2. Understand
the Methodology
3. Definethe structureof a mathematicalmodelin O.R.
4. Know the significanceof the Objectivefunction
1.2 Historical Background
During Second World War in United Kingdom a team of scientistsfrom
differentdisciplinesstudiedthe strategicand tacticalproblemsassociated
with air and land defenseof the :ountry. Their objectivewas to determine
the most effectiveutilizationof limiter.militaryresourcesto win the battle
and the techniquethey developedwas namedas Operationsresearch.After
the war, Operationsresearchtechniquesrapidlydevelopedin the fields of
industrial,
academicand go'ernmentorganizations.
The applicationof Operationsresearchmethodshelps in makingdecisions
Evi
in such complicated
tive of
situations.
sis to the decision-makers for
research is to
vide a scientific
solving the problems involving the interactionof various componenfs
of organization, by employing a team of scienfisfs from different
SikkimManipalUniversity

PageNo. 2

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OperationsResearch

Unit 1

of scientistsdrawn from variousdisciplineswho study the strategiesof

different componentsand after appropriateanalysis of the various
courses of actions, the best course of action, known as optimum
strategy,is chosen.
ii) ln Industry: The system of modern industriesare so complexthat the
optimum point of operation in its various components cannot be
judged by an individual.The businessenvironmentis always
intuitively
changingand any decisionusefulat one time may not be so good some
time later. There is always a need to check the validity of decisions
continually,against the situations. The industrial revolution with
increased division of labour and introduction of management
responsibilities
has made each componentan independentunit having
their own goals.For example:Productiondepartmentminimizecost of
production but maximizes output. Marketing department maximizes
output but rninimizescost of unit sales. Finance departmenttries to
optimizecapital investmentand personneldepartmentappointsgood
people at minimum cost. Thus each department plan their own
objectivesand all these objectivesof variousdepartmentor components
come to conflict with each other and may not conform to the overall
objectivesof the organization.
The applicationof OR techniqueshelpsin
overcoming this difficulty by integratingthe diversified activities of
variouscomponentsso as to serve the interestof the organizationas a
wholeefficiently.
OR methods in industry can be applied in the fields of production,
inventory controls and marketing, purchasing, transportationand
competitivestrategiesetc.
iii)

it has become necessary for every

.Planning: In modern times
governmentto have carefulplanning,for economicdevelopmentof the
country.OR techniquescan be fruitfullyappliedto maximizethe per
capitaincome,with minimumsacrificeand time.A governmentcan thus
use OR for framingfutureeconomicand socialpolicies.

iv) Agriculture: With increasein populationthere is a need to increase

agricultureoutput. But this cannot be done arbitrarily.There are a
number of restrictionsunder which agriculturalproductionis to be
studied.Thereforethereis a needto determinea @urseof action,which
SikkimManipalUniversity

Page No. 4

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Operations
Research

Operati

Unit 1

1.5'---Phasesof OperationsResearch

1 . 6 . 1A b
a) PhYs
natureof

The scientificmethodin OR study generallyinvolvesthe followingthree

-<'phases:

<-

i) JudgmentPhase:Thisphaseconsistsof

a. Phys
are d
facto
Ther

ffiftheoperation.
b) Establishment
of the objectives
andvaluesrelatedto the operation.
c) Determination
rf the suitablemeasuresof effectiveness
and
problems
d) Formulation
of the
relativeto the objectives.
ii) B_eseqrch
Phase:Thisphaseutilizes
a) Operationsand data collectionfor a better understanding
of the
problems.
b) formulationof hypothesis
andmodel.
c) Observation
to testthe hypothesis
and experimentation
on the basis
of additional
data.
d ) Analysis of the available informationand verificationof the
hypothesis
measureof effectiveness.
usingpre-established
e ) Predictionof various results and considerationof alternative
methods.
iii) Action Phase:lt consistsof makingrecommendations
for the decision
processby thosewho first posedthe problemfor consideration
or by
anyonein a positionto make a decision,influencingthe operationin
whichthe problemis occurred.

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SelfAssessmentQuestions4
StateTrue/ False
(_
1. O.Rgivesqualitative
solution.
fi
2. Oneof O.Rphasesis Actionphase 1

Self Assr
State Tn
1. Diag
2. Alloc

1.6Typesof operationResearchModels
of the reality.lt is an idealizedrepresentation
or
_Amodelis a representation
abstraction
of a real life system. The objectiveof the modelis to identify
significant
factorsandtheirinterrelationship.
A modelis helpfulin decision
making as it providesa simplifieddescriptionof complexitiesand
uncertainties
of a problemin logicalstructure.Majoradvantage
of modelsis
it rloesnotjnterferewithrealsystem.
SikkimManipalUniversity

Math
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Page No. 6

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OperationsResearch

Unit1

used by the physicalsciences.The scientificmethodtranslatesa real given

problem into a mathematical representationwhich is solved and
into the originalcontext.The OR approachto problemsolving
retransformed
consistE-qfthe followincLsiepg
1. .Definition
ofthe problem.
of the model.
2, .Co_lsltUglLon
3. .S-olution
of the model.
4. Validationof the model.
1.7.1 Definitionof the problem

is thatthe rootpryllgm slguld

requirement
Thefirstandthe mostimportant
The problemshould be identifiedproperly,
. be identifiedand understood.

this indicatesthree majo. aso.et f t ) a qescdqls+gl the qoal or the

o the
of
objectiveof the study, (2) an tdentificatigq
system, and (3) a Jqqogni.ljgl],of the limitationlrestrictions and
requirements
of the system,
<
1 .7.2.9onstructionof t
lem, the operationsresearchteam
Depending
on the de_!4|!on
the system.S_uch
shoulddecideon the mostsuitablemodelfor representing
--.--ive and the
a model shouldlpecify quantitativeexpressionsfor the o
var
A modelgivesa
constraints
of the problemin termsof its Oecision
perspectivep
of the whole problemand helps tacklingit in a wellorganized manner. lf the resulting model fits into one of the common
mathematicalmodels, a convenientsolutionmay be obtainedby using
relationships
of the modelare
mathematical
techniques.lf the mathematical
too complexto allow analyticsolutions,a simulationmodel may be more
appropriate.
There are varioustypes of modelswhich can be constructed
u n d e rd i f f e r e ncto n d i t i o n s ,
1 . 7. 3 S o l u t i o no f t h e m o d e l
Once an approprntemodel has been formulated,the next stage in the
of the solutionin the
analysiscalls fr-rrits solutionand the interpretation
of
solutionto a modelimpliesdetermination
contextof the givenproblem._A
a s p e c i f i c s e t o f d e c i s i o n v a r i a b | e s t h a t w o u l A n
r minimizethe performanceof
@
any measurein a modelsubjectto the conditionsand constraintsimposed
on the model.
SikkimManipalUniversity

PageNo. I

OperationsRt

1.7.4-Yill
A
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Unit 1

OperationsResearch

but in actualpracticetheremay
factorsare considered
as constraints,
has
be numberof importantobjectivefunctions. Goal programming
eachhavinga targetvalueand programme
functions,
severalobjective
fromthesetargets.
deviation
to minimize
modelsaredeveloped
mo9el,sequence
model,lransportation
and
4. The tools,namely,que,uing
assignmen'tmqdel, network analysis are discussed in detail in later
chapters.
-

.t

E--!

!!!+a

Self Assessment Questions 6

State True / False

solution
1. O.Rmethodology
of definition,
andvatidation
only.F
consists

2. The interactionbetweenO.R team and Managementreachespeak level

phase.
in implementation
tr
1.9The Structureof MathematicalModel
situations are concerned with planning
Many-industiiaT-an-d--buGiness
activities.In each case of planning,thereare limitedsources,such as men,
machines,materialand capitalat the disposalof the planner.One has to
make decision regarding these resources in order to either maximize
production,or minimizethe cost of oroductionor maximizethe profit etc.
These problemsare referredto as the problemsof constrainedoptimization.
Linear programmingis a techniquefor determiningan optimalscheduleof
interdependent
activities,for the given resources.Programmingthus means
planningand refersto the processof decision-making
regardingparticular

planof actionamongstseveralavailable
alternatives.
Any businessactivity of productionactivityto be formulatedas a
they
mathematical
modelcan best be discussedthroughits constituents;
are:
Decision
Variab_lqq,
Objective
function,
Constraintg.
1.9.1Decisionvariablesand parameters
to be determined
fromthe solution
Thedecisionvariables
arethe unknowns
of the model"The parametersrepresentthe controlledvariablesof the
svstem.

OperationsI

1 . 9 . 2O b i e
f
This define
function of
obtainedw
best value
objectivefr
solution.

While form
as a funct
programm
to power or
Maxim
Minim
Maxim
Minimi
Minimi
Maxim
Minimi

1.9.3,9o.n
To accoun
constraint
permissib
mathemat

For examp
about throv
about the r
linearprog

The mathe
the values
optimize Z

Subjectto t
g i ( x1 , x 2
and &)0

The functio
SikkimManipalUniversity

PageNo.10

SikkimMan

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OperationsResearch

U n i t1

OperationF

i th constraintfor i = 1, 2,3 ---- m where b i is a known constant.The

constraintsX;
variablesto zeroor positivevaluesonly.

Sincethe n
Xr ) 0, Xz)

1.9.4Diet Problem
Formulatethe mathematical
modelfor the following:
-A
Vitamin
and Vitamin- I are foundin food- 1 and food-2. One unitof
-1
food contains5 unitsof vitamin- A and 2 unitsof vitamin- B. One unit
of food-2 contains6 unitsof vitamin-A and 3 unitsof vitamin-8. The
minimumdaily requirementof a person is 60 units of vitamin- A and B0
unitsof Vitamin- B. The cost per one unit of food - 1 is Rs. 5/- and one unit
of food - 2 is Rs. 6/-. Assume that any excess units of vitamins are not
harmful.Find the minimumcost of the mixture(of food-1 and food-2) which
meetsthe dailyminimumrequirements
of vitamins.
#

MathematicalModelof the Diet Problem:Supposex1 = the numberof unitsof

food-1 in the mixture,xz = the numberof unitsof food-2 in the mixture.
Now we formulatethe constraintrelatedto vitamin-A. Since each unit of
food -1 contains5 units of vitamin- A, we have that xr units of food - 1
contains5x1 units of vitamin- A. Since each unit of food- 2 contains6
units of vitamin- A, we have that xz units of food - 2 contains6x2 units of
vitamin- A. Thereforethe mixturecontains5x1 + 6x2 units of vitamin- A.
Since the minimumrequirementof vitamin- A is 60 units,we have that
5x1+6xz)60.
Now we forrnulatethe constraintrelatedto vitamin- B. Since each unit of
food - 1 contains2 units of vitamin- B we have that xr units of food - 1
contains2x1unitsof vitamin- B. Sinceeach unit of food - 2 contains3 units
of vitamin- B, we have that X2 units of food - 2 contains 3xz units of
vitamin- 8. Thereforethe mixturecontains 2x1+ 3y, unitsof vitamin- B.
Since the minimumrequirementof vitamin- B is 80 units,we have that
2x2+3x2280.

1.10l-imi

The limitat
mo4eyfactc
w.I. Magnitu
" variable
Lii. Non-q
,.intoacc
v4i. There i
\r{

.*esearcl
Time an

\..(.

,ehanges
lmplem

Self Assess
Fillin the bl
i. OR imb
ii. Linearp
iii. The thre
iv. To selvq

v. llcLr,\
. /T-

Vl.fru?.Ann

1 . 1 1S u m

Next we formulatethe cost function.Giventhat the cost of one unit of food 1 is R's. 5/- and one unit of food - 2 is R3. 6/-. Thereforex1 units of food-1
costs Rs. Sxr,and x2 units of food - 2 costs Rs. 6xz. Thereforethe cost of
the mixtureis given by Cost = 5Xr + 6xz.lf we write z for the cost function,
then we havez= Sxt+ 6xz Sincecost is to be minimized,
we write min z =
+
5x1 6v,

The OR ap
problems o
populationi
problemof r
climate cor
distribution
c
faced by ea
be done in tl

SikkimManipalUniversity

SikkimManip

P a g eN o . 1 2

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