Operations Research provides a

quantitative technique to the

executives for better decisions
for operation under their control.
 Developed during the World War II.
 Limited military resources.
 Efficient allocation of resources was
required.
 Large number scientists invited .
 The efforts of the team helped in
winning the battle.
 The name “OR” directly derived from
“Research on Military Operations”.
 The success encouraged the scientists.
 They moved to different sectors e.g.,
transportation, health, education, etc.
 OR in India started in 1949.
 Regional Research Laboratory opened in
Hyderabad.
 Industry

 Transportation

 Banking and Finance

 Agriculture

 Defense
 Systems Approach

 Inter-disciplinary Team Approach

 Methodological Approach

 Operations Economy
 Finance, Budgeting and Investments
 Purchasing, Procurement and
Exploration
 Production Management
 Marketing Management
 Personnel Management
 Research and Development
 Judgement Phase
i. Establishment of Objectives
ii. Determination of measures
iii. Formulation of Problems
 Research Phase
i. Data Collection
ii. Model formulation
iii. Analysis and Predictions
 Action Phase
i. Making Recommendations
 Better planning
 Flexibility in operations
 Better co-ordination
 Better decisions
 Better systems
 Analytic Or Deductive
Method
 Numerical Or Iterative
Method
 Monte Carlo Method
PROBLEM
FORMULTION

ISOLATION
OF
MANAGEME
NT PROBLEM

REAL
WORLD
PROBLEM MODEL
FORMULATION BUILDING

ISOLATION
QUALI- QUAN-
OF
TATIVE TATIVE
MANAGEME
MODEL MODEL
NT PROBLEM

MODEL
REFINEM-
ENT
REAL
WORLD
PROBLEM MODEL MODEL
FORMULATION BUILDING TESTING

ISOLATION
QUALI- QUAN-
OF TEST-
TATIVE TATIVE
MANAGEME ING
MODEL MODEL
NT PROBLEM

MODEL
REFINEM-
SYSTEM ENT
REAL DATA
WORLD COLLE
CTION
 MODEL ESTABLISH
PROBLEM MODEL
TESTING -ING
FORMULATION BUILDING
CONTROLS

ISOLATION
QUALI- QUAN-
OF TEST- CONCLUS
TATIVE TATIVE
MANAGEME ING -IONS &
MODEL MODEL
NT PROBLEM IMPLEMEN
TATION
MODEL
REFINEM-
SYSTEM ENT
REAL DATA
WORLD COLLE
CTION
 Linear Programming
 Decision Models
 Integer Programming
 Dynamic Programming
 Stochastic Programming
 Magnitude of computation
 Absence of quantification
 Conventional thinking
 Money and time costs
 Implementation
 The analysis of problems
 Linear function of a number of
variables is to be maximized or
minimized
 Variables are subject to a number of
restraints in the form of linear
inequalities.
 Proportionality

 Certainty

 Additivity

 Divisibility

 Non-negativity
General form of a LPP
Optimize (Maximize or Minimize) Z=c1x1+c2x2……cnxn

Subject to linear constraints

a11x1+a12x2+…….a1nxn(<,=,>)b1
a21x1+a22x2+…….a2nxn(<,=,>)b2
. . .

. . .

am1x1+am2x2+…….amnxn(<,=,>)bm

And
x1,x2,x3……….xn >0
General form of a LPP
Optimize (Maximize or Minimize) Z=c1x1+c2x2……cnxn

Subject to linear constraints

a11x1+a12x2+…….a1nxn(<,=,>)b1
a21x1+a22x2+…….a2nxn(<,=,>)b2 OBJECTIVE FUNCTION
. . .

. . .

am1x1+am2x2+…….amnxn(<,=,>)bm

And
x1,x2,x3……….xn >0
General form of a LPP
Optimize (Maximize or Minimize) Z=c1x1+c2x2……cnxn

Subject to linear constraints

a11x1+a12x2+…….a1nxn(<,=,>)b1
a21x1+a22x2+…….a2nxn(<,=,>)b2 OBJECTIVE FUNCTION
. . .

. . .
CONSTRAINTS
am1x1+am2x2+…….amnxn(<,=,>)bm

And
x1,x2,x3……….xn >0
General form of a LPP
Optimize (Maximize or Minimize) Z=c1x1+c2x2……cnxn

Subject to linear constraints

a11x1+a12x2+…….a1nxn(<,=,>)b1
a21x1+a22x2+…….a2nxn(<,=,>)b2 OBJECTIVE FUNCTION
. . .

. . .
CONSTRAINTS
am1x1+am2x2+…….amnxn(<,=,>)bm

And
x1,x2,x3……….xn >0 NON-NEGATIVE
RESTRICTIONS
 Two Phase Procedure

Phase I
5. Verbalize
the problem and its structure.
6. Determine Overall Structure.
7. Determine restricting factors.
 Phase II
Define Decision Variables.
Identify contribution coefficients(cj’s)
associated with each variable
Formulate the objective function.
Identify physical rate of substitution
coefficients(ai j’s).

Identify the available resources (bi’s).

Maintain non-negativity condition.
DECISION ARTICLE HOURS ON HOURS ON PROFIT
VARIABLE MACHINE CRAFTSMA PER UNIT
N

X1 A 1.5 2 Rs. 50

X2 B 2.5 1.5 Rs.40

Hours 80 70
Available Maximum Maximum
(per week)
 Objective Function
Maximize Z=50x1 + 40x2

 Constraints
Time for article A + Time for article B <
Available time on M/c
For Machine-
1.5x1 + 2.5x2 <80
For Craftsman-
2x1 + 1.5x2<70

 Non-Negativity Constraints
x1,x2 >0
 DIET DECISION TIME FOR TIME FOR PROFIT
VARIABLE ARRANGIN COOKING PER
G RAW
MATERIALS UNIT

Rice x1 5 min. 10 min. Rs. 2

Chapati x2 15 min. 15 min. Rs. 5

Minutes
available 120 min. 60 min.
per week