LESSON PLANNING

Operations Research

Prepared By: Prof. Alok Singh

PGDM Page 1
 Course Manual

Operations Research

PGDM 2018-20

COURSE FACILITATOR: Prof. Alok Singh, e-mail: alok.singh@its.edu.in

PGDM Page 2
 I. COURSE OVERVIEW:

The course aims at providing the basic knowledge of Decision Science (Operations Research) concepts, principles and mechanism. It
also provides a fundamental insight in tools and techniques of Operations Research facilitating management decisions.

II. COURSE TOPICS:

 Introduction to Operations Research

 Decision making Environment
 Linear Programming
 Transportation Models
 Assignment Models
 Network Analysis
 Queuing Models
 Game Theory

III. LEARNING OUTCOMES:

At the end of this course students would be able to:

• Define and explain the basic concepts of Decision Science (Operations Research).
• Explain the role of Operations Research for management decisions of an organization..
• Understand, explain and develop deep insight of various concepts of Operations Research.
• Appreciate business problems involving operations function, operations economics and costs.
• Solve decision - making problems in strategic situations through use of operations principles.

IV. PRE- REQUISITES:

It is required for the students to have a reasonable understanding of basics of Operations Management. Students are expected to aware
about the terms used in this domain for better understanding of subject.

PGDM Page 3
V. BOOKS AND REFERENCES:
Text Book:
1. Operations Research - Second Edition- by Panneerselvam R. (PHI Publication)
Additional Readings:
1. Introduction to Management Science with Spreadsheets, William J. Stevenson, Ceyhun Ozgur, Tata McGraw Hill.
2. Quantitative Techniques in Management, N. D. Vohra, Tata McGraw Hill Publications.
3. Quantitative Methods for Business, Anderson Williams Thomson
4. Quantitative Techniques theory and problems, Tulisian, Pearson, PHI.
5. Operations Research: An Introduction, Hamdy A Taha, Prentice Hall Pearson education
Online Resources:

 https://sites.google.com/site/aloksinghiiit/operations-research
 https://onlinecourses.nptel.ac.in/noc17_mg14/course

VI. ASSESSMENT CRITERIA:

A. Internal Component Marks (40)
1 Assignments Marks (10)
Assignment 1 10
Assignment 2 10
3 Written Test Marks (20)
Unit Test 1 20
B. End Semester Examination Marks (60)
End term examination will be of 2.30 hrs. Question Paper will consist
of Three Sections.
o Section A: 5 questions of sort answer type question of 4 marks each
o Section B: 5 questions of Application based of 6 marks each
o Section C: 1 case analysis of 10 marks

PGDM Page 4
 VII. SESSION PLAN

Session Topic Pre Readings Activity

Introduction to Operations Research: Introduction to OR;
Scope, Techniques, Characteristics and Limitations of
1-2
Operation Research; Methodology and Models in OR
Chapter-1 & 2 of Introduction to Lecture cum discussion
Operations Research by Hillier and
Lieberman (Mc Graw Hill Education)
Page No. 1-26

Chapter-16 of Introduction to Lecture cum discussion

Applications of Operation Research in managerial
3-4
decision-making. Decision-making environments.
Decision-making under certainty, uncertainty and risk
5-6
situations; Decision tree approach and its applications.
Linear programming (LP): General structure of LP
model, assumptions, and formulation of product mix
7-8
problem.
Operations Research by Hillier and
Lieberman (Mc Graw Hill Education)
Page No. 828-863
Chapter-16 of Introduction to Lecture cum Discussion
Operations Research by Hillier and
Lieberman (Mc Graw Hill Education)
Page No. 828-863
Chapter-3 & 4 of Introduction to Lecture cum discussion
Operations Research by Hillier and
Lieberman (Mc Graw Hill Education)
Page No. 31-86 and 112-167

Linear programming solutions: graphical, algebraic Chapter-3 & 4 of Introduction to Lecture cum discussion
methods: simplex algorithm. Operations Research by Hillier and
9-10
Lieberman (Mc Graw Hill Education)
Page No. 31-86 and 112-167

Application for maximizing and minimizing problems, Chapter-3 & 4 of Introduction to Lecture cum discussion
duality in LP, sensitivity analysis. Operations Research by Hillier and Assignment -1
11-12
Lieberman (Mc Graw Hill Education)
Page No. 31-86 and 112-167

13-14 Transportation models: Statement of problems, Chapter-9 of Introduction to Operations Lecture cum discussion
minimizing algorithm, methods for finding Basic Research by Hillier and Lieberman (Mc

PGDM Page 5
 Feasible Solution: North-West Corner (NWC) method, Graw Hill Education) Page No. 387-431
Least Cost Method (LCM), Vogel’s approximation
Method (VAM).

Testing for optimality: Modified Distribution method
(MODI), unbalanced supply and demand, degeneracy
15-16
and its resolution, alternative optimal solutions,
prohibited routes, maximization of problem.
Chapter-9 of Introduction to Operations Lecture cum Discussion
Research by Hillier and Lieberman (Mc
Graw Hill Education) Page No. 387-431

Assignment Models: Statement of problem, minimization
using Hungarian algorithm, resolve unbalancing, multiple
17-18
optimal solution, and restrictions on assignments,
maximization case.
Chapter-9 of Introduction to Operations Lecture cum Discussion
Research by Hillier and Lieberman (Mc
Graw Hill Education) Page No. 387-431

Network Analysis: Network Analysis Terminology; Chapter-10 of Introduction to Lecture cum Discussion
Networking Concepts; Rules for drawing network Operations Research by Hillier and
19-20
diagram. Lieberman (Mc Graw Hill Education)
Page No. 456-511

CPM Computations: CPM Terminology, Finding critical Chapter-10 of Introduction to Lecture cum Discussion
path – Different Floats. Operations Research by Hillier and
21-22
Lieberman (Mc Graw Hill Education)
Page No. 456-511

PERT Computations: Computation of earliest and latest Chapter-10 of Introduction to Lecture cum Discussion
allowable times, Probability of meeting the scheduled Operations Research by Hillier and Assignment-2
23-24
dates; difference between PERT and CPM. Lieberman (Mc Graw Hill Education)
Page No. 456-511

Chapter-17 of Introduction to
Queuing Models: Queuing Models: Introduction; Operations Research by Hillier and
25-26 Lecture cum Discussion
Characteristics of Queuing models. Lieberman (Mc Graw Hill Education)
Page No. 884-939

PGDM Page 6
 Models for Arrival and Service Times; Single Poisson
arrival with Exponential Service Rate; Applications of
27-28
Queuing models.
Chapter-17 of Introduction to Lecture cum Discussion
Operations Research by Hillier and
Lieberman (Mc Graw Hill Education)
Page No. 884-939

Chapter-15 of Introduction to Lecture cum discussion

Decision making under conflict (Game Theory): Pure Operations Research by Hillier and Unit Test
29-30
Strategy game, Mixed strategy game & Dominance rule. Lieberman (Mc Graw Hill Education)
Page No. 805-820

VIII. SESSION DETAILS:

Session 1 & 2: In this session students will be given a brief idea and understanding about the Basics of Operations Research.
Pre-Reading: Chapter-1 & 2 of Introduction to Operations Research by Hillier and Lieberman (Mc Graw Hill Education) Page No. 1-26
Issues for discussion in class: Introduction to Operations Research.
Learning Outcomes: Students must be able to explain the various components of Basics of Operations Research.

Session 3 & 4: In this, session, students would learn about various Decision-making environments.
Pre-Reading: Chapter-16 of Introduction to Operations Research by Hillier and Lieberman (Mc Graw Hill Education) Page No. 828-863
Issues for discussion in class: Decision-making environments
Learning Outcomes: Students must be able to explain the various concepts of Decision-making environments.

Session 5 & 6: In this session students will be learning about Decision-making under certainty, uncertainty and risk situations.
Pre-Reading: Chapter-16 of Introduction to Operations Research by Hillier and Lieberman (Mc Graw Hill Education) Page No. 828-863
Issues for discussion in class: Decision-making under certainty, uncertainty and risk situations
Learning Outcomes: Students would able to understand the concept of Decision-making under certainty, uncertainty and risk situations.

Session 7& 8: In this session students would able to understand the concept of Linear programming (LP).
Pre-Reading: Chapter-3 & 4 of Introduction to Operations Research by Hillier and Lieberman (Mc Graw Hill Education) Page No. 31-86 and
112-167.
Issues for discussion in class: Linear programming (LP)
Learning Outcomes: Students must be able to understand the concept of Linear programming (LP).

PGDM Page 7
Session 9& 10: In this session the students will be learning about different types of processes and the concept of Linear programming
(LP)- Graphical and Simplex Method.
Pre-Reading: Chapter-3 & 4 of Introduction to Operations Research by Hillier and Lieberman (Mc Graw Hill Education) Page No. 31-86 and
112-167
Issues for discussion in class: Linear programming (LP)- Graphical and Simplex Method
Learning Outcomes: The student shall be able to understand different types of processes and the concept of Linear programming (LP)-
Graphical and Simplex Method.

Session 11 & 12: In this session students will be learning about duality in LP, sensitivity analysis.
Pre-Reading: Chapter-3 & 4 of Introduction to Operations Research by Hillier and Lieberman (Mc Graw Hill Education) Page No. 31-86 and
112-167
Issues for discussion in class: duality in LP, sensitivity analysis.
Learning Outcomes: Students would able to understand the concept of duality in LP, sensitivity analysis.

Session 13 & 14: In this session students would able to understand the concept of concept of Transportation models.
Pre-Reading: Chapter-9 of Introduction to Operations Research by Hillier and Lieberman (Mc Graw Hill Education) Page No. 387-431
Issues for discussion in class: Transportation models.
Learning Outcomes: Students must be able to understand the concept of Transportation models.

Session 15 & 16: In this session the students will be learning about Modified Distribution method (MODI) and unbalanced supply
and demand.
Pre-Reading: Chapter-9 of Introduction to Operations Research by Hillier and Lieberman (Mc Graw Hill Education) Page No. 387-431
Issues for discussion in class: Modified Distribution method (MODI) and unbalanced supply and demand.
Learning Outcomes: The student shall be able to understand Modified Distribution method (MODI) and unbalanced supply and
demand.

Session 17 & 18: In this session students will be learning about Assignment Models.
Pre-Reading: Chapter-9 of Introduction to Operations Research by Hillier and Lieberman (Mc Graw Hill Education) Page No. 387-431
Issues for discussion in class: Assignment Models.
Learning Outcomes: Students would able to understand the concept of Assignment Models.

Session 19 & 20: In this session students would able to understand Network Analysis.
Pre-Reading: Chapter-10 of Introduction to Operations Research by Hillier and Lieberman (Mc Graw Hill Education) Page No. 456-511
PGDM Page 8
Issues for discussion in class: Network Analysis.
Learning Outcomes: Students will explore the process of developing Network Diagrams.

Session 21 & 22: In this session the students will be learning about the concepts of Critical Path Method.
Pre-Reading: Chapter-10 of Introduction to Operations Research by Hillier and Lieberman (Mc Graw Hill Education) Page No. 456-511
Issues for discussion in class: Critical Path Method.
Learning Outcomes: The student shall be able to understand the concepts of Critical Path Method.

Session 23 & 24: In this session the students will be learning about the concepts of PERT.
Pre-Reading: Chapter-10 of Introduction to Operations Research by Hillier and Lieberman (Mc Graw Hill Education) Page No. 456-511
Issues for discussion in class: PERT.
Learning Outcomes: The student shall be able to understand the concepts of PERT.

Session 25 & 26: In this session students will be given a brief idea and understanding about the Basics of Queuing Models.
Pre-Reading: Chapter-17 of Introduction to Operations Research by Hillier and Lieberman (Mc Graw Hill Education) Page No. 884-939
Issues for discussion in class: Queuing Models.
Learning Outcomes: Students must be able to explain the various components of Queuing Models.

Session 27 & 28: In this, session, students would understand about the Models for Arrival and Service Times.
Pre-Reading: Chapter-17 of Introduction to Operations Research by Hillier and Lieberman (Mc Graw Hill Education) Page No. 884-939
Issues for discussion in class: Models for Arrival and Service Times
Learning Outcomes: Students must be able to explain the various concepts of Models for Arrival and Service Times.

Session 29 & 30: In this session students will be learning about Game Theory.
Pre-Reading: Chapter-15 of Introduction to Operations Research by Hillier and Lieberman (Mc Graw Hill Education) Page No. 805-820
Issues for discussion in class: Game Theory.
Learning Outcomes: Students would able to understand the concept of Game Theory.

------------------------------------------------------------- Best of Luck----------------------------------------------------------------------------------

PGDM Page 9