MBA SEMESTER 2 MB0048 Operations Research1. a. Operation Techniques is a bunch of mathematical techniques.Comment. b.

Operation Research is an aid for the executive in making his decisions based on scientific methods analysis. Discuss the above statement in brief.

a. Operations Research is an interdisciplinary branch of applied mathematics and formal science that uses methods such as mathematical modeling, statistics, and algorithms to arrive at optimal or near optimal solutions to complex problems. It is typically concerned with optimizing the maxima (profit, assembly line performance, crop yield, bandwidth, etc) or minima (loss, risk, etc.) of some objective function. Operations research helps management achieve its goals using scientific methods. The terms operations research and management science are often used synonymously. When a distinction is drawn, management science generally implies a closer relationship to the problems of business management. The field of operations research is closely related to Industrial engineering. Industrial engineers typically consider Operations Research (OR) techniques to be a major part of their toolset. Some of the primary tools used by operations researchers are statistics, optimization, probability theory, queuing theory, game theory, graph theory, decision analysis, and simulation. Because of the computational nature of these fields, OR also has ties to computer science, and operations researchers use custom-written and off-the-shelf software. Operations research is distinguished by its frequent use to examine an entire management information system, rather than concentrating only on specific elements (though this is often done as well). An operations researcher faced with a new problem is expected to determine which techniques are most appropriate given the nature of the system, the goals for improvement, and constraints on time and computing power. For this and other reasons, the human element of OR is vital. Like any other tools, OR techniques cannot solve problems by themselves.. b.> Operation Research is a scientific method of providing executive departments with a quantitative basis for decisions regarding the operations under their control. Morse & Kimball Operations research is a scientific approach to problem solving for executive management. H.M. Wagner Operations research is an aid for the executive in making these decisions by providing him with the needed quantitative information based on the scientific method of analysis. The mission of Operations Research is to serve the entire Operations Research (OR) community, including practitioners, researchers, educators, and students. Operations Research, as the flagship journal of our profession, strives to publish results that are truly insightful.

Each issue of Operations Research attempts to provide a balance of well-written articles that span the wide array of creative activities in OR. Thus, the major criteria for acceptance of a paper in Operations Research are that the paper is important to more than a small subset of the OR community, contains important insights, and makes a substantial contribution to the field that will stand the test of time. Operational research, also known as operations research, is an interdisciplinary branch of applied mathematics and formal science that uses advanced analytical methods such as mathematical modeling, statistical analysis, and mathematical optimization to arrive at optimal or near-optimal solutions to complex decisionmaking problems. It is often concerned with determining the maximum (of profit, performance, or yield) or minimum (of loss, risk, or cost) of some real-world objective. Originating in military efforts before World War II, its techniques have grown to concern problems in a variety of industries. Operational research, also known as operations research, is an interdisciplinary branch of applied mathematics and formal science that uses advanced analytical methods such as mathematical modeling, statistical analysis, and mathematical optimization to arrive at optimal or near-optimal solutions to complex decision-making problems. It is often concerned with determining the maximum (of profit, performance, or yield) or minimum (of loss, risk, or cost) of some realworld objective. Originating in military efforts before World War II, its techniques have grown to concern problems in a variety of industries. Operational research encompasses a wide range of problem-solving techniques and methods applied in the pursuit of improved decision-making and efficiency. Some of the tools used by operational researchers are statistics, optimization, probability theory, queuing theory, game theory, graph theory, decision analysis, mathematical modeling and simulation. Because of the computational nature of these fields, OR also has strong ties to computer science. Operational researchers faced with a new problem must determine which of these techniques are most appropriate given the nature of the system, the goals for improvement,and constraints on time and computing power. Work in operational research and management science may be characterized as one of three categories: Fundamental or foundational work takes place in three mathematical disciplines: probability, optimization, and dynamical systems theory. Modeling work is concerned with the construction of models, analyzing them mathematically, implementing them on computers, solving them using software tools, and assessing their effectiveness with data. This level is mainly instrumental, and driven mainly by statistics and econometrics. Application work in operational research, like other engineering and economics' disciplines, attempts to use models to make a practical impact on real-world problems.

2. Comment on the following statements: a. Operation Research advocates a system approach and is concerned with optimization.

b. Operation Research replaces management by personality.

Answer: a.> Operation Research advocates a system approach and is concerned with optimization. Operations research (O.R.) is the discipline of applying advanced analytical methods to help make better decisions. By using techniques such as mathematical modeling to analyze complex situations, operations research gives executives the power to make more effective decisions and build more productive systems based on: More complete data Consideration of all available options Careful predictions of outcomes and estimates of risk The latest decision tools and techniques O.R. is unique. It's best of breed, employing highly developed methods practiced by specially trained professionals. Its powerful, using advanced tools and technologies to provide analytical power that no ordinary software or spreadsheet can deliver out of the box. And its tailored to you, because an O.R. professional offers you the ability to define your specific challenge in ways that make the most of your data and uncover your most beneficial options. To achieve these results, O.R. professionals draw upon the latest analytical technologies, including: Simulation Giving you the ability to try out approaches and test ideas for improvement Optimization Narrowing your choices to the very best when there are virtually innumerable feasible options and comparing them is difficult Probability and Statistics Helping you measure risk, mine data to find valuable connections and insights, test conclusions, and make reliable forecasts O.R. has enhanced organizations and experiences all around us. From better scheduling of airline crews to the design of waiting lines at Disney theme parks. b.> Operations research (OR) and management science are terms that are used interchangeably to describe the discipline of applying quantitative techniques to make decisions and solve problems. Many methods used in operations research were developed during World War II to help take the guesswork out of missions such as deploying radar, searching for enemy submarines, and getting supplies where they were most needed. The prevalence of operations research in the Nations economy reflects the growing complexity of managing large organizations that require the efficient use of materials, equipment, and people. OR analysts determine the optimal means of coordinating these elements to achieve specified goals by applying mathematical principles to organizational problems. They solve problems in different ways and propose alternative solutions to management, which

then chooses the course of action that best meets their goals. In general, OR analysts are concerned with issues such as strategy, forecasting, resource allocation, facilities layout, inventory control, personnel schedules, and distribution systems. The duties of the operations research analyst vary according to the structure and management philosophy of the employer or client. Some firms centralize operations research in one department; others use operations research in each division. Some organizations contract operations research services with a consulting firm. Economists, systems analysts, mathematicians, industrial engineers, and others may apply operations research techniques to address problems in their respective fields. Operations research analysts may also work closely with senior managers to identify and solve a variety of problems. Regardless of the type or structure of the client organization, operations research in its classical role of carrying out analysis to support managements quest for performance improvement entails a similar set of procedures. Managers begin the process by describing the symptoms of a problem to the analyst, who then formally defines the problem. For example, an operations research analyst for an auto manufacturer may be asked to determine the best inventory level for each of the parts needed on a production line and to determine the number of windshields to be kept in inventory. Too many windshields would be wasteful and expensive, while too few could result in an unintended halt in production.

3.Explain how the profit maximization transportation problem can be converted to an equivalent cost minimization transportation problem.
I can apply different OR methods to regulate the arrival of trains and processing times minimise the passengers waiting time and reduce congestion, formulate suitable transportation policy, thereby reducingthe costs and time of transshipment. Transportation model: The transportation model is an important class of linear programs. The modelstudies the minimisation of the cost of transporting a commodity from a number of sources to severaldestinations. The supply at each source and the demand at each destination are known. The objective of the model is to develop an integral transportation schedule that meets all demands from the inventory at aminimum total transportation cost.The transportation problem involves m sources, each of which has available ai(i = 1,2, ..,m) units of homogeneous product and n

destinations, each of which requires bj(j = 1,2., n) units of products. Here ai and bj are positive integers. The cost cij of transporting one unit of the product from the ith source to the jthdestination is given for each i and j. It is assumed that the total supply and the total demand are equal. The condition (1) is guaranteed by creating either a fictitious destination with a demand equal to thesurplus if total demand is less than the total supply or a (dummy) source with a supply equal to theshortage if total demand exceeds total supply. The cost of transportation from the fictitious destination toall sources and from all destinations to the fictitious sources are assumed to be zero so that total cost of transportation will remain the same.So the profit maximization transportation problem can be converted to an equivalent costminimization transportation problem

4. Write the difference in the simplex solution procedure for a maximization problem and a minimization problem of linear programming.
Every linear programming problem (LPP) is associated with another linear programming probleminvolving the same data and optimal solutions. Such two problems are said to be duals of each other. Oneproblem is called the primal,while the other problem is called the dual.The dual formulation is derived from the same data and solved in a manner similar to the original 'primal'formulation. In other words, you can say that dual is the 'inverse' of the primal formulation because of thefollowing reasons. a. If the primal objective function is 'maximisation' function, then the dual objective function is'minimisation' function and vice-versa b. The column co-efficient in the primal constraint is the row co-efficient in the dual constraint. c. The co-efficients in the primal objective function are the RHS constraint in the dual constraint. d. The RHS column of constants of the primal constraints becomes the row of coefficient of the dualobjective function

The concept of duality is useful to obtain additional information about the variation in the optimalsolution. These changes could be effected in the constraint coefficient, in resource availabilities and/or objective function co-efficient. This effect is termed as post optimality or sensitivity analysis

5. What do you mean by the two-phase method for solving a given LPP? Why is it used?

Every linear programming problem (LPP) is associated with another linear programming probleminvolving the same data and optimal solutions. Such two problems are said to be duals of each other. Oneproblem is called the primal,while the other problem is called the dual.The dual formulation is derived from the same data and solved in a manner similar to the original 'primal'formulation. In other words, you can say that dual is the 'inverse' of the primal formulation because of thefollowing reasons. a. If the primal objective function is 'maximisation' function, then the dual objective function is 'minimisation' function and vice-versa. b. The column co-efficient in the primal constraint is the row co-efficient in the dual constraint. c. The co-efficients in the primal objective function are the RHS constraint in the dual constraint d. The RHS column of constants of the primal constraints becomes the row of co-efficient of the dualobjective function.

The concept of duality is useful to obtain additional information about the variation in the optimalsolution. These changes could be effected in the constraint coefficient, in resource availabilities and/or objective function co-efficient. This effect is termed as post optimality or sensitivity analysis. Characteristics of dual solutions If the primal problem possesses a unique non-degenerate, optimal solution, then the optimal solution tothe dual is unique. However, dual solutions arise under a number of other conditions. Several of the cases which can arise are: a. When the primal problem has a degenerate optimal solution, the dual has multiple optimal solutions.

b. When the primal problem has multiple optimal solutions, the optimal dual solution is degenerate. c. When the primal problem is unbounded, the dual is infeasible d. When the primal problem is infeasible, the dual is unbounded or infeasible.

Formulation of Dual Concepts Consider the following LPP Maximise Z = c1x1+c2x2+ . . .+ cnxn Subject to the constraints a11x1+ a12x2+ . . . + a1nxn b1 a21x1+ a22x2+ . . . + a2nxn b2 am1x1+ am2x2+ . . . + amnxn bm x1,x2, . . .,xn 0 To construct a dual problem, you must adopt the following guidelines: 1.The maximisation problem in the primal becomes a minimisation problem in the dual and vice versa 2.() type of constraints in the primal become () type of constraints in the dual and vice versa. 3. The coefficients c1,c2,. . .,cn in the objective function of the primal become b1,b2,,bm in the objectivefunction of the dual. 4.The constants b1, b2,,bmin the constraints of the primal become c1,c2,. . .,cn in the constraints of thedual 5. If the primal has n variables and m constraints the dual will have m variables and n constraints 6. The variables in both the primal and dual are non-negative Thus the dual problem will be Minimise W = b1y1+ b2y2+ . . . +bmym Subject to the constraints a11y1+ a21y2+ . . . + am1ym c1 a12y1+ a22y2+ . . . + am2ym c2 a1ny1+ a2ny2+ . . . + amnym cn

y1,y2, . . .,ym 0 Formation of dual LPP is easier when the standard form of LPP for maximisation problem must contain type of constraints,while for minimisation problem, it must containtype of constraints.