Course Plane

· What is Operations Research?

Chapter 1 · Modeling with Linear Programming
· The Simplex Method and Sensitivity Analysis
· Duality and Post-Optimal Analysis
· Transportation Model and Its Variants
· Network Model
Introduction to Operations · Queuing Systems
Research Reference
Taha, H. A., “Operations research, an introduction”, 8th
edition, Prentice-Hall.

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Introduction Brief History

· Operations Research (OR), Operational Research,
· It had its early roots in World War II when a team of British
management science, or decision science
scientists sent out to assess the best utilization of war
· Operations Research is an Art and Science materiel based on scientific principles rather than on ad hoc
· Operations Research involves a variety of techniques that rules.
aim to · deployment of radars
· Create mathematical models that describe real or theoretical · management of convoy
systems · bombing missions
· Solve the models for optimal solutions to improve systems
· anti-submarine operations
efficiency and support decision-making
· The ideas advanced in military operations were adapted to
· It is a scientific approach to making best decisions
improve efficiency and productivity in the civilian sector.
· Usually under conditions requiring the allocation of limited
· Military Operations Research, later Operations Research
resources
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 Introduction Terminology
· OR requires the use of models, · The British/Europeans refer to “Operational Research", the
which are mathematical Americans to “Operations Research" - but both are often
representations of the actual shortened to just "OR".
systems
· Modeling: Describing a system · Another term used for this field is “Management Science"
at a high level of abstraction (or ("MS"). In U.S. OR and MS are combined together to form
simplification), which ignores "OR/MS" or "ORMS".
irrelevant details and only
represent the relevant details. · Yet other terms sometimes used are “Industrial Engineering"
("IE") and “Decision Science" ("DS").

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What is Operations Research? What is Operations Research?

• Operation Research is a relatively new discipline. The • OR is a discipline that adapts the scientific approach to
contents and the boundaries of the OR are not yet fixed. problem solving to decision making.
• Therefore, to give a formal definition of the term • OR tools are not from any one discipline.
Operations Research is a difficult task. • OR takes tools from different discipline such as
• The main activity of a manager is the decision making. mathematics, engineering, economics, psychology, etc.
• In our daily life we make the decisions even without and combines them to make a new set of knowledge for
noticing them. decision making.
• The decisions are taken simply by common sense, • In general, the organization goal is to optimize the use
judgment and expertise without using any mathematical of available resources.
or any other model in simple situations.

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 Operations Research - Definitions
What is Operations Research?
1. It is a quantitative approach to decision making based on the
scientific method of problem solving. Operations Research consists of:
2. It is a scientific approach to determine the optimum (best) · The art of mathematical modeling of complex situations
solution to a decision problem under the restriction of limited · The science of the development of solution techniques used to
resources, using the mathematical techniques to model, analyze,
solve these models
and solve the problem.
· The ability to effectively communicate the results to the
3. It is the application of scientific methods to improve the
effectiveness of operations, decisions and management. decision maker
4. It is a scientific method of providing executive departments with Mathematical Modeling
a quantitative basis for decisions regarding the operations under · A process that translates observed phenomena into
their control. mathematical expressions.
5. OR is the art of giving bad answers to problems, which otherwise
have worse answers.
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Operations Research Models How to think ?

• Example 1 tickets purchasing problem (Minimization) • This is a decision-making problem
• You have a 5-week commitment traveling between • Solution Required answering three questions:
Fayetteville (FYV) and Denver (DEN).
1.What are the decision alternatives?
• You fly out of Fayetteville on Mondays and return on
2.Under what restrictions is the decision made?
Wednesdays.
• A regular roundtrip ticket costs $400, but a 20% discount is
3.What is the appropriate objective criterion for
granted if the roundtrip dates span a weekend. evaluating the alternatives?
• A one-way ticket in either direction costs 75% of the • These are the main components of OR
regular price.
• How should the tickets be bought for the 5-week period?

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 The Alternatives Restrictions (or Constrains)

1. Buy five regular FYV-DEN-FYV for departure on • You should be able to leave FYV on Monday and return
on Wednesday of the same week.
Monday and return on Wednesday of the same
week. Objective Criterion
• Evaluating the proposed alternative is the price of the
2. Buy one FYV-DEN, four DEN-FYV-DEN that span
tickets.
weekends, and one DEN-FYV.
• The alternative that yields the smallest cost is the best
3. Buy one FYV-DEN-FYV to cover Monday of the
• Alternative 1: Cost = 5 × 400 = $2000
first week and Wednesday of the last week and four
DEN-FYV-DEN to cover the remaining legs. All • Alternative 2: Cost = 0.75 × 400 + 4 × (0.8 × 400)
+ 0.75 × 400 = $1880
tickets in this alternative span at least one weekend
• Alternative 3: Cost = 5 × (0.8 × 400) = $1600

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Operations Research Models Operations Research Models

• Example 2 (Maximization) • Garden problem
• Consider the following garden problem: • What would be the width and the height of the
• A home owner is in the process of starting a maximum-area rectangle formed out of a piece of
backyard vegetable garden. The garden must take wire of length ‫ ܮ‬inches?
on a rectangular shape to facilitate row irrigation.
• The number of alternatives is infinite.
• To keep critters out, the garden must be fenced.
• We can define the width and height as continuous
• The owner has enough material to build a fence of
(algebraic) variables
length L = 100 ft.
• The goal is to fence the largest possible rectangular ‫ = ݓ‬width of the rectangle in inches
area. ℎ = height of the rectangle in inches
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 Operations Research Models General OR Model Format
· The restrictions can be expressed as:
1. Width + Height = Half the length of the wire.
2. Width and height cannot be negative.
· These restrictions are translated algebraically as:
· 2(‫ ݓ‬+ ℎ) = ‫ܮ‬
· ‫ ≥ ݓ‬0, ℎ ≥ 0
· The objective of the problem is the maximization of the
area of the rectangle.
· Let z be the area of the rectangle:
Maximize z = ‫ × ݓ‬ℎ
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Operations Research Models Solving The OR Model

• A solution of a model is feasible if it satisfies all the • In OR, we do not have a single general technique to
constraints solve mathematical models. Instead, the type and
• It is optimal if it yields to the best value of the objectives complexity of the mathematical model dictate the
• The resulting solution depends on the degree of nature of the solution method.
completeness of the model in representing the real system. • OR Techniques
• If all the dominant alternatives are not identified, then the 1. The most prominent OR technique is linear
resulting solution is optimum only relative to the programming
alternatives represented in the model. ̶ For models with linear objective and constraint
• Suboptimal solution: in case we can not determine all the functions.
alternatives. 2. Integer programming
̶ Variables assume integer values
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 Solving The OR Model Solving The OR Model

3. Dynamic programming • Most OR techniques solutions are not generally obtained

in (formula-like) closed forms.
̶ The original model can be decomposed into
• Instead, they are determined by algorithms.
smaller more manageable sub-problems
• The algorithm provides fixed computational rules that are
4. Network Programming applied repetitively to the problem.
̶ the problem can be modeled as a network • Each repetition moves the solution closer to the optimum.
5. Non-linear programming • Some mathematical models may be so complex.
̶ Functions of the model are nonlinear • In the above case we may abandon the search for the
optimal solution and seek a good solution using some
other methods.

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Queuing and Simulation Models Queuing and Simulation Models

• Queuing models:
• Queuing and simulation deal with the study of Utilize probability and stochastic models to analyze
waiting lines waiting lines.
• They are not optimization techniques • Simulation:
Estimates the measures of performance by “imitating”
• They determine measures of performance of the the behavior of the real system.
waiting lines, such as:
• Queuing models are purely mathematics and simulation
̶ Average waiting time in queue, models are flexible.
̶ Average waiting time for service • Simulation costs time and resources
• The execution of simulation models, even on the fastest
̶ Utilization of service facilities.
computer, is usually slow

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 Art of Modeling
• The previous examples are true representation of a real
situation.
• That is a rare situation in OR.
• Majority of applications usually involve approximation.

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