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QTM Unit 1

Operations Research (OR) is a scientific discipline that applies analytical methods to improve decision-making in various fields through mathematical modeling and optimization techniques. Key concepts include problem formulation, linear programming, and various methods for solving complex problems, such as queuing theory and game theory. OR is widely used in supply chain management, healthcare, finance, and other sectors to enhance efficiency and resource utilization.

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22 views8 pages

QTM Unit 1

Operations Research (OR) is a scientific discipline that applies analytical methods to improve decision-making in various fields through mathematical modeling and optimization techniques. Key concepts include problem formulation, linear programming, and various methods for solving complex problems, such as queuing theory and game theory. OR is widely used in supply chain management, healthcare, finance, and other sectors to enhance efficiency and resource utilization.

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yadavakashay869419
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Introduction to Operation Research

Operations Research (OR) is a scientific discipline that deals with the application of advanced
analytical methods to help make better decisions. It involves the use of mathematical models,
statistical analyses, and optimization techniques to solve complex problems in business,
engineering, logistics, and other fields

Key Concepts in Operations Research


 Problem Formulation:
The first step in OR is to define the problem clearly, identifying objectives, constraints,
and decision variables.
 Mathematical Modeling:
A mathematical representation of the problem is developed. This model typically consists
of:
 Objective function: Represents the goal, such as minimizing costs or maximizing
profits.
 Constraints: Represent limitations or requirements, such as resource availability or
time constraints.
 Decision variables: Represent choices that can be adjusted to achieve the objective.
Techniques used in operation research
 Linear Programming (LP): Techniques for optimizing a linear objective function subject to linear
constraints.
 Transportation and Assignment Problems: Methods to determine the most efficient allocation of
resources.
 Network Analysis: Techniques such as Critical Path Method (CPM) and Program Evaluation and Review
Technique (PERT) for project scheduling and management.
 Integer Programming: Optimization where some or all decision variables are constrained to be integers.
 Dynamic Programming: Solving complex problems by breaking them down into simpler sub problems.
 Queuing Theory: Analyzing waiting lines to optimize service efficiency.
 Inventory Control Models: Techniques for managing inventory levels efficiently.
 Game Theory: Analyzing competitive situations where the outcome depends on the actions of multiple
decision-makers.
 Simulation: Using computational models to imitate real-world processes and assess their performance.
Applications of Operations Research
 Operations Research is applied across a wide range of fields, including:
 Supply Chain Management: Optimizing inventory, distribution, and
transportation.
 Manufacturing: Scheduling production, resource allocation, and process
optimization.
 Healthcare: Allocating resources, scheduling staff, and improving patient
flow.
 Military Operations: Strategic planning, logistics, and mission analysis.
 Finance: Portfolio optimization, risk management, and investment
strategies.
 Energy: Optimal power generation and distribution.
 Transportation: Traffic management, route optimization, and airline
scheduling.
Importance of Operations Research

 Decision Support: Provides systematic and quantitative frameworks for decision


making.
 Efficiency: Helps organizations optimize resource utilization and reduce costs.
 Scalability: Can handle large-scale and complex systems with many variables.
 Predictive Capability: Enables forecasting and scenario analysis for better
planning.
Linear Programming (LP): Mathematical Formulation and Methods
Linear programming is a mathematical technique used to optimize a linear objective function subject to a set of linear
constraints (inequalities or equalities). LP problems involve decision variables, constraints, and an objective function.
The standard LP problem can be expressed as:
LP Solution Methods
1.Graphical Method (for two variables):
Used when there are only two decision variables, enabling graphical representation of constraints and
objective functions.
2.Simplex Method:
A systematic iterative procedure to move from one vertex of the feasible region to another to find the
optimal solution.
3.Dual Simplex Method:
Suitable when the initial solution does not satisfy the constraints but satisfies optimality conditions.
4.Big-M Method:
Used to handle artificial variables in cases where constraints involve equality or ≥ conditions.
5.Two-Phase Simplex Method:
Solves LP problems in two stages: finding a feasible solution in Phase 1 and optimizing the objective
function in Phase 2
1. Graphical Method
 Here's the graph for the
graphical method of the given
linear programming problem.
The shaded region represents
the feasible region where all
constraints are satisfied. The
vertices of the feasible region
are marked in red, and the
optimal solution lies at the
vertex (4,0), maximizing

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