ProfMadyaPaezahHamzah Office:S327,FTMSK Phone:03 55435476 012 2135630

HillierF.S.&Lieberman,G.J.(2005)Introductionto OperationsResearch,8th edition,McGrawHill. WinstonW.L.(2004)OperationsResearch:Applicationand Algorithms,4th edition,DuxburyPress,NewYork. ChongEdwinK.P&ZakS.H(2008)AnIntroductionto Optimization,3rd edition,WileyInternational,2008.

Thiscourseintroducesstudentstotheroleofoperations researchinplanningbothinproductionandservices. Studentswillbeexposedtothelinearandnonlinear programmingmodelscommonlyusedtoallocatethebest utilizationofresources. Thephilosophybehindthetheorywillalsobediscussedto developanunderstandingofthevaluesandlimitationsof operationsresearchasatoolinmakingwisedecisionin handlingmanagementandoperationalproblemswhere resourcesarelimited.

1. 2. 3. 4. 5. 6.

IntroductiontoOperationsReasearch LinearProgramming(GraphicalMethod, SimplexMethod,ComputerSolutions) TransportationProblems IntegerProgramming NonLinearProgramming Simulation

Tests(2tests)30% Project/CaseStudies/Presentation 30% Finalexamination40%

WhatisOperationsResearch? TherelationshipbetweenOperations ResearchandManagementScience. HistoricalperspectiveofOperations Research. CharacteristicsofGoodDecision OperationsResearchModels TheOperationsResearchApproachto ProblemSolving

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Youshouldbeableto describethemeaningofOperationsResearch (OR) listtheORapproachtoproblemsolvingand explaineachstep.

thescientificapproachto decisionmaking

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Input Data

Scientific Model

Meaningful Output

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OperationalResearch(intheUK) ManagementScience DecisionScience QuantitativeAnalysis

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Scientific approach has been used in the management of organizations. The term OR arose in the 1940s when research was carried out by a group of scientists who successfully used scientific methods to analyze military operations during World War II (19391945) Mainobjective:toallocatescarceresources(e.g. millitarypersonnel,artilleries)effectivelytowinbattles
Determineconvoysizetominimizelossesfromsubmarine attacks Determinethecorrectcolourofaircrafttominimize detectionbysubmarines,ortomaximizethenumberof submarinessunk Determinethebestwaytodeployradarunitstomaximize potemntialcoverage
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AfterWWII,ORtechniquesgainedpopularity andwereusedtoaddressdecisionproblems inbusiness,industry,andgovernment.

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ORisnowappliedinmanyorganizationsto aiddecisionmaking. Thegrowingcomplexityofmanagement hasnecessitatedthedevelopmentof sophisticatedmathematicaltechniquesfor planninganddecisionmaking.

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1. DevelopmentofnumerousORmethodsdue tocontinuedresearch. 2. Advancementincomputingpowerdueto digitalcomputers.

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GeorgeDantzigdevelopedtheSimplex Method in1947tosolvelinearprogramming problem.

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ORhasbeenrecognizedasawidelyused decisionmakingtools

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Forecasting:Usingtimeseriesanalysistoanswer typicalquestionssuchas:Howbigwilldemandfor productsbe?Whatarethesalespatterns?Howwill thisaffectprofits? FinanceandInvestment:Howmuchcapitaldowe need?Wherecanwegetthis?Howmuchwillit cost? ManpowerplanningandAssignment: Howmany employeesdoweneed?Whatskillsshouldthey have?Howlongshouldtheybedoingtheirjobs?

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SequencingandScheduling: Whatjobis mostimportant?Inwhatordershouldwedo jobs? Location,Allocation,Distributionand Transportation: Whereisthebestlocation foranoperation?Howbigshouldfacilities be?Whatresourcesareneeded?Arethere shortages?Howcanwesetpriorities?

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ReliabilityandReplacementPolicy: Howwellis equipmentworking?Howreliableisit?Whenshould wereplaceit? InventoryControlandStockout: Howmuchstock shouldwehold?Whendoweordermore?How muchshouldweorder?

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Projectplanningandcontrol: How longwillaprojecttake?Whatactivities aremostimportant?Howshould resourcesbeused? QueuingandCongestion: Howlong arequeues?Howlongdocustomers waitinline?Howmanyserversshould weuse?

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ORisusedtosolvecomplexrealworld problemstoarriveatoptimalorgood decision(soundjudgmentandgood conclusions);itisnotabouttheideal. ORusesscientificmethods using proceduresinmanipulatingrawdata intomeaningfulinformation. ORisapracticeforprofessionals. ORisinterdisciplinary.

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Defining the Problem Developing Model Acquiring Input Data Developing a Solution Testing the Solution Analyzing the Result Implementing the Result

Note: QMT437 focuses formulating models and getting solutions

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Defining the Problem Developing Model Acquiring Input Data Developing a Solution Testing the Solution Analyzing the Result Implementing the Result

Developclearandconcise statementoftheproblem. Setobjectives. Improperlydefinedproblem canresultinnosolutionor inappropriatesolution. Setmeasurable objectives/goalstostay focus.

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Defining the Problem Developing Model Acquiring Input Data Developing a Solution Testing the Solution Analyzing the Result Implementing the Result
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Model=representationof areality Usuallyamathematical model

Defining the Problem Developing Model Acquiring Input Data Developing a Solution Testing the Solution Analyzing the Result Implementing the Result

Essentialtoobtainaccurate data. Garbagein,garbageout Sourceofinputdata:company reports,documents,interview, etc.

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Defining the Problem Developing Model Acquiring Input Data Developing a Solution Testing the Solution Analyzing the Result Implementing the Result

Manipulatedatatoarriveatbest solution. How? trialanderror completeenumeration algorithm Accuracyofthesolution dependsontheaccuracyofthe inputdataandthemodel

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Defining the Problem Developing Model Acquiring Input Data Developing a Solution Testing the Solution Analyzing the Result Implementing the Result

To be done before a solution can be analyzed and implemented. Need testing because the solution depends on the input data and model. Collect additional data from a different source, then compare with the original data. Use statistical tests to determine if there are differences. If there are significant differences, need to obtain more accurate input data. If data is accurate but results are inconsistent, the model may be inappropriate; validate the design of the model. Make sure it is logical and represents the real situation.

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Defining the Problem Developing Model Acquiring Input Data Developing a Solution Testing the Solution Analyzing the Result Implementing the Result

Determinetheimplicationsof thesolution Whatimplicationwillthe solutionhaveonthe organization? Perform sensitivityanalysis. Determinehowsolutionwill changeiftherewerechangesin themodelorinput

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Define the Problem Develop Model Acquire Input Data Develop a Solution Test the Solution Analyze the Result Implement the Result
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Theprocessof incorporatingthe solutionintothe organization.

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Amodelisarepresentationofreality(from themodeler'sperspective) Modelscanbe

Iconic staticinnature;replicas,madetolooklike therealsystem Analogactlikerealitybutoftennotappearlike thereality Schematic Symbolic(Mathematical)
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Iconic
(replicas, made to look like the real system) -full-scale -scaled-down -scaled-up

Analog
(physical representation of non-physical object; act like reality but often not appear like reality ) e.g. thermometer

Schematic
(drawings and pictures) e.g. map, chart

Mathematical
(mathematical relationships) e.g. profit=revenue-cost y=mx+c

physical

abstract

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ORapproachtothedecisionmaking processismostlythroughmathematical modeling.

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AfirmmakesaproductthatcostsRM15to produceandsellsforRM20. 2hoursarerequiredtoproduceeachunitand only40hoursofproductiontimeare available. Developamodeltocalculatethetotalprofit fromsellingtheproduct

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AfirmmakesaproductthatcostsRM15toproduceand sellsforRM20.2hoursarerequiredtoproduceeachunit andonly40hoursofproductiontimeareavailable.

Let Z = total profit x = units of the product to produce

Z and x are called variables Known, constant values which are often coefficients of variables are called parameters

Maximize Z = 20x 15x subject to: 2x 40 x0

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Uncontrollable Inputs (unit profit, 2 production hour/unit, 40 production-hr capacity)

Mathematical Model Controllable Input (x, the production qty) Maximize Z = 20x 5x subject to: 2x 40 x 0 Output (Z, the total profit; production time used)

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DeterministicModel
Amodelinwhichallvaluesusedinthemodelare knownwithcompletecertainty.

Probabilistic(Stochastic)Model
Amodelinwhichatleastoneuncontrollableinput isuncertainandsubjecttovariation.

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Assimpleaspossible Completeandrepresenttheproblem accurately Easytounderstand Easytomodifyandupdate Requiredinputdatashouldbeobtainable.

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1.

Modelscanaccuratelyrepresentsrealityifproperly formulated.
Avalidmodelisonethatisaccurateandcorrectly representstheproblemorsystemunder investigation.

2.

Modelscanhelpadecisionmakerformulate problems.
e.ginprofitmodelmanagerscandetermine importantfactorscontributingtorevenueand expenses.

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3.

Modelscangiveusinsightandinformation. e.g.byperformingsensitivityanalysisto studytheimpactofchangesinamodel Modelscantestoptionswithoutdisruptingthereal system. Modelscansavetimeandmoneyindecision makingandproblemsolving.

4.

5.

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6.

Amodelmaybetheonlywaytosolvesomelarge orcomplexproblemsinatimelymanner. Amodelcanbeusedtocommunicateproblems andsolutiontoothers.

7.

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Conflictingviewpoints Impactonotherdepartments Managersperceptionofproblemswont matchtextbookapproach;thus,ORanalyst mustbeabletoexplaintomanagers Notunderstandingthemodel Difficulttoacquiregoodinputdata;lackof cleandata Obtainingonlyoneanswer OutdatedSolution Solutionsarenotintuitivelyobvious,and rejectedbymanagers Resistancetochange;LackofCommitment
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themeaningofOperationsResearch(OR) theORapproachtoproblemsolving themeaningofthewordmodelandthe varioustypesofmodel theadvantagesofusingmodelsinproblem solving

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Introduction to QM for Windows software

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