1. Explain what Operation Research is.
Definition:
Operation Research (OR) is a scientific approach to decision-making.
It uses mathematical models, statistics, and algorithms to solve problems and optimize
processes.
The goal is to improve efficiency and achieve the best possible outcomes.
Key Features:
1. Interdisciplinary: Combines mathematics, engineering, and economics.
2. Problem-Oriented: Focuses on specific business or operational problems.
3. Quantitative: Uses numerical data to provide solutions.
4. Optimization: Finds the best solution among alternatives.
Applications:
1. Resource Allocation: Assigning limited resources efficiently (e.g., manpower,
machines).
2. Supply Chain Management: Optimizing logistics and inventory.
3. Scheduling: Timetabling for industries or education.
4. Transportation: Route optimization for cost reduction.
5. Finance: Portfolio selection and risk management.
Importance:
1. Enhances decision-making.
2. Reduces costs and improves productivity.
3. Provides better predictions through models.
4. Helps organizations adapt to dynamic environments.
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2. Describe the stages of Operations Research's scientific technique.
Introduction:
Operations Research follows a structured, scientific process to solve complex problems
systematically.
Stages:
1. Problem Definition:
Identify and understand the problem clearly.
Define objectives and constraints.
Example: Reducing transportation costs in logistics.
2. Data Collection:
Gather relevant data for analysis.
Includes costs, time, resources, and market trends.
3. Model Development:
Build a mathematical or simulation model of the problem.
Example: Linear programming for cost minimization.
4. Solution Derivation:
Solve the model using appropriate methods or algorithms.
Methods include simplex method, dynamic programming, etc.
5. Validation and Testing:
Verify if the solution works under real-world conditions.
Adjust the model if needed.
6. Implementation:
Apply the solution in real-world scenarios.
Monitor and refine the solution over time.
7. Feedback and Control:
Analyze outcomes and check if objectives are met.
Make adjustments for continuous improvement.
Benefits of Following These Stages:
1. Reduces risks in decision-making.
2. Ensures solutions are practical and efficient.
3. Provides clarity and structure to problem-solving.
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3. Linear programming: What is it? What are the main presumptions and
limitations?
Definition:
Linear programming (LP) is a mathematical method used to find the optimal solution for
a problem under given constraints.
It deals with maximizing or minimizing a linear objective function.
Key Components:
1. Objective Function: The goal (e.g., maximize profit, minimize cost).
2. Decision Variables: The unknowns to solve for (e.g., production levels).
3. Constraints: The limitations (e.g., resource availability).
Presumptions:
1. Linearity: Relationships between variables are linear.
2. Certainty: All data and parameters are known and constant.
3. Additivity: Total outcomes are the sum of individual contributions.
4. Non-Negativity: Decision variables cannot be negative.
Limitations:
1. Simplicity: Cannot handle complex, non-linear problems.
2. Certainty Assumption: Unrealistic in dynamic environments.
3. Limited Scope: Only works for problems with clear constraints.
4. Computational Limitations: Large-scale problems may require significant
computational power.
Applications:
1. Product mix optimization.
2. Resource allocation in manufacturing.
3. Logistics and supply chain optimization.
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4. What is duality in LPP? Explain its applications.
Definition:
Duality in Linear Programming is a concept where every linear programming problem
(called the primal) has a corresponding problem (called the dual).
The solution of the dual problem provides insights into the solution of the primal
problem.
Key Points:
1. Primal and Dual Relationship:
If the primal problem seeks to maximize, the dual seeks to minimize.
Constraints in the primal become variables in the dual and vice versa.
2. Duality Theorem:
If one of the problems (primal or dual) has an optimal solution, the other also has an
optimal solution, and their objective function values are equal.
Applications:
1. Sensitivity Analysis: Evaluating the impact of changes in constraints or coefficients.
2. Economic Interpretation: Provides a cost or value interpretation of constraints.
3. Resource Valuation: Helps understand shadow prices of resources.
4. Verification: Ensures the primal problem's solution is accurate.
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5. What are the methods of obtaining the basic feasible solution in the
Transportation Problem?
Introduction:
Transportation problems aim to minimize the cost of transporting goods from multiple
sources to multiple destinations. Basic feasible solutions satisfy supply and demand
constraints.
Methods:
1. North-West Corner Method:
Start allocation from the top-left corner of the cost matrix.
Allocate as much as possible and move to the next cell.
Simple but not necessarily optimal.
2. Least Cost Method:
Allocate starting from the cell with the least cost.
Reduces total transportation cost early in the process.
3. Vogel’s Approximation Method (VAM):
Calculate penalties for each row and column (difference between the smallest and
second smallest costs).
Prioritize allocation where the penalty is highest.
Produces near-optimal solutions.
Steps in Each Method:
1. Balance the supply and demand (add dummy rows/columns if needed).
2. Follow the method’s rules for allocation.
3. Check if all constraints are satisfied (supply = demand).
Applications:
1. Logistics and distribution planning.
2. Cost minimization in supply chains.
3. Scheduling and workforce allocation.
