LEC 01
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CE4101
Syllabus:
Linear programming, Decision making andsimulation,
Psychology in administration, Materials management,
Demand forecasting, Inventory control, Personnel
management, Stores management, Construction
equipment and plants, Replacementstudies
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Definition:
A systematic approach in solving problems, which uses
one or more mathematical and/or analytical tools in the
process of analysis.
• How many and much resources are required to meet the key performance
target?
• What is the current capacity and required capacity to meet the goal?
• What are the anticipated risks for accepting or making new product or
model?
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Operation Research approach / methodology:
Step 7 Implement
This is one of the most important steps where the decisions determined by
the model are implemented. Hence, active participation from the
management is crucial in achieving the goal.
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Case study 1
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Case study 2
Imagine that, you have 5 weeks business trip from Dhaka to Khulna.
And you don’t want to stay on weekends in Khulna. So, you planned to
go to Khulna on Sunday morning and return on Thursday evening.
A regular round trip ticket on Biman Bangladesh is 4000Tk, but a 20%
discount offer is there if the ticket spans a weekend. A one way ticket in
either direction cost 75% of regular price.
How should you buy a 5 week ticket?
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1. Alternatives:
a.Buy 5 regular tickets Dhk-Khl-Dhk
Departure on Sunday –Return on Thursday
b.Buy 1 Dhk-Khl (for first move) , 4 Khl-Dhk-Khl with
weekends and 1 Khl-Dhk (for return) tickets
c.Buy 1 Dhk-Khl-Dhk to cover first Sunday to depart and
last Thursday to return; and 4 Khl-Dhk-khl to cover
remaining legs. All ticket in this alternative covers atleast
one weekend.
2.Constrain: No stay in Khulna on weekend-
Leave Dhk on Sunday and return on Thursday
3.Objective criterion: Price of the ticket i.e.
Cost/Money---should be minimum
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Cost:
Alternative 1:
4000*5=20,000
Alternative 2:
0.75*4000+4*0.8*4000+0.75*4000=18,800
Alternative 3:
5*0.8*4000= 16,000
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Operations Research (OR)
An Overview
During World War II, first used by Royal Air Force of
Britain, then term ‘operation research’ was first used by
British Air Ministry.
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