Professional Documents
Culture Documents
Transportation
Defense
Systems Approach
Methodological Approach
Operations Economy
Finance, Budgeting and Investments
Purchasing, Procurement and
Exploration
Production Management
Marketing Management
Personnel Management
Research and Development
Judgement Phase
i. Establishment of Objectives
ii. Determination of measures
iii. Formulation of Problems
Research Phase
i. Data Collection
ii. Model formulation
iii. Analysis and Predictions
Action Phase
i. Making Recommendations
Better planning
Flexibility in operations
Better co-ordination
Better decisions
Better systems
Analytic Or Deductive
Method
Numerical Or Iterative
Method
Monte Carlo Method
PROBLEM
FORMULTION
ISOLATION
OF
MANAGEME
NT PROBLEM
REAL
WORLD
PROBLEM MODEL
FORMULATION BUILDING
ISOLATION
QUALI- QUAN-
OF
TATIVE TATIVE
MANAGEME
MODEL MODEL
NT PROBLEM
MODEL
REFINEM-
ENT
REAL
WORLD
PROBLEM MODEL MODEL
FORMULATION BUILDING TESTING
ISOLATION
QUALI- QUAN-
OF TEST-
TATIVE TATIVE
MANAGEME ING
MODEL MODEL
NT PROBLEM
MODEL
REFINEM-
SYSTEM ENT
REAL DATA
WORLD COLLE
CTION
MODEL ESTABLISH
PROBLEM MODEL
TESTING -ING
FORMULATION BUILDING
CONTROLS
ISOLATION
QUALI- QUAN-
OF TEST- CONCLUS
TATIVE TATIVE
MANAGEME ING -IONS &
MODEL MODEL
NT PROBLEM IMPLEMEN
TATION
MODEL
REFINEM-
SYSTEM ENT
REAL DATA
WORLD COLLE
CTION
Linear Programming
Decision Models
Integer Programming
Dynamic Programming
Stochastic Programming
Magnitude of computation
Absence of quantification
Conventional thinking
Money and time costs
Implementation
The analysis of problems
Linear function of a number of
variables is to be maximized or
minimized
Variables are subject to a number of
restraints in the form of linear
inequalities.
Proportionality
Certainty
Additivity
Divisibility
Non-negativity
General form of a LPP
Optimize (Maximize or Minimize) Z=c1x1+c2x2……cnxn
. . .
am1x1+am2x2+…….amnxn(<,=,>)bm
And
x1,x2,x3……….xn >0
General form of a LPP
Optimize (Maximize or Minimize) Z=c1x1+c2x2……cnxn
. . .
am1x1+am2x2+…….amnxn(<,=,>)bm
And
x1,x2,x3……….xn >0
General form of a LPP
Optimize (Maximize or Minimize) Z=c1x1+c2x2……cnxn
. . .
CONSTRAINTS
am1x1+am2x2+…….amnxn(<,=,>)bm
And
x1,x2,x3……….xn >0
General form of a LPP
Optimize (Maximize or Minimize) Z=c1x1+c2x2……cnxn
. . .
CONSTRAINTS
am1x1+am2x2+…….amnxn(<,=,>)bm
And
x1,x2,x3……….xn >0 NON-NEGATIVE
RESTRICTIONS
Two Phase Procedure
Phase I
5. Verbalize
the problem and its structure.
6. Determine Overall Structure.
7. Determine restricting factors.
Phase II
Define Decision Variables.
Identify contribution coefficients(cj’s)
associated with each variable
Formulate the objective function.
Identify physical rate of substitution
coefficients(ai j’s).
X1 A 1.5 2 Rs. 50
Hours 80 70
Available Maximum Maximum
(per week)
Objective Function
Maximize Z=50x1 + 40x2
Constraints
Time for article A + Time for article B <
Available time on M/c
For Machine-
1.5x1 + 2.5x2 <80
For Craftsman-
2x1 + 1.5x2<70
Non-Negativity Constraints
x1,x2 >0
DIET DECISION TIME FOR TIME FOR PROFIT
VARIABLE ARRANGIN COOKING PER
G RAW
MATERIALS UNIT
Minutes
available 120 min. 60 min.
per week