Operations Research

 Prof G R C Nair
 Introduction

 What is OR / MS ?
 Why OR / MS ?
 Applications
 What is a Model ?
 Types of Models
 Physical / Mathematical
 Deterministic / Probabilistic

 Allocation / Optimization / Inventory

/ Sequencing / Queuing /
Replacement / Investment /
Competitive / Net working
Steps in O.R
 Define the problem
 Identify Measurable Objectives
 Identify the Constraints and Variables
 Collect Data
 Establish inter relationships
 Make a Model
 Solve
 Test / Analyse / Modify
 Implement
 Linear Programming
Linear programming is an Optimization Model.
It is a deterministic model.All the
relationships / variations are to be straight
line or linear.

Objective – Maximization / Minimization.

Constraints – Limitations.

There is a Graphic Solution when the

variables involved are just two. If there are
more variables, Simplex Algorithm is used.
 Formulation of L.P Model

1. Maximization Case
A manufacturer produces two products Chair and
Table each requiring processing by two sections,
carpentry and painting.Carpentry section has 32 hours
and painting section has has 34 hours of time available
per week.A chair needs 3 hours in carpentry and 1 hour
in painting section,while a table needs 2 and 4 hours
respectively.The profit margin from the sale of a chair is
Rs 5 and table is Rs 6. Find the product mix for the
maximum profit.Formulate it as a LP model.
Let the number of chairs and tables made be x&y.
Objective.Maximize Profit, subject to limitations
of processing capacity.
Profit Z = 5x+ 6y.
So Maximize Profit, Z = 5x + 6y,
Subject to constraints,
1.Carpentry capacity,
3x+2y < 32
2. Painting capacity,
X+4y < 34
3.Nonnegative constraints,
X > 0, Y > 0
2. Minimization case.
Vitamins A and B are required for broiler
chicken at the rate of 40 and 50 units per
day.There are 2 feeds F1 and F2 which
have vitamin A at the rate of 2 and 4 units
and vitamin B at the rate of 3 and 2 units
per Kg of feed. The cost of feed F1 and
F2 are Rs 3 and 2.5 respectively per
Kg.Minimize the cost of feed. Formulate it
as a LP model.
Let the optimum quantity of feed F1 and F2 be x
and y.

Objective function
Minimize cost Z=3x+2.5y,

Subject to constraints,
1. 2x+4y > 40 ( Mini requirement of Vitamin A )
2. 3x+2y > 50 (Mini requirement of Vitamin B)
3. Non negative constraints
x>0,y>0
 Graphic Solution. Maximization case
 Draw the constraint lines
3x+2y=32 at its limit
when x = 0, y = 16, when y=0, x = 10.667.
Draw a line joining points (0,16) and
(10.667,0).
x+4y = 34 at its limit
When x=0, y = 8.5, when y = 0, x = 34
Draw a line joining (0,8.5) and (34,0).
Feasible area
Within these two lines, above X axis and
right of Y axis is the feasible area. Any point
here, by its coordinates, gives the possible
combination of chairs and tables that can be
made. Optimum will be at any corner, which
can be found out graphically or by solving
the equations of the lines concerned.
Here, x = 6 and y = 7. Profit = 72.
Graphic Solution. Minimization Case.
Draw the constraint lines
1. 2x+4y = 40.
Put x = 0, y = 10, y = 0, x =20.
Points (0,10) and (20,0) define this line
2. 3x+2y = 50
Put x = 0, y = 25, y = 0, x = 16.67
Points (0,25) and (16.67,0) define this line.
Feasible area
 The feasible area is above these lines.
(why?) Any point here, by its coordinates,
shows a possible combination of the two
feeds that satisfy the vitamin requirements.
Optimum will be at any corner, which can be
found out graphically or by solving the
equations of the lines concerned.
 Here, x = 15 and y = 2.5 Cost= 51.25
1.More constraints. We can have any number of
constraints. It may further limit the feasible area.

2.Redundant Constraint - A constraint which

does not affect in any way the feasible area.It
does not supply any new information.

3. > and < constraints together. Mark feasible

area appropriately.
 Formulation Examples
 2007 Terminal (Make-up) Q 4
 2007 Terminal Q 4
 2009 Terminal Q 7 (HW)
 Transportation Model

 Allocation and Optimizing Technique.

 Special case of L.P model.
 The total ‘Supply’ and total ‘Demand’
must be equal or else made equal.
 Basically the algorithm is for minimization
case.
 ( Algorithm for solving this model are VAM,
MODI, NWCR, Stepping Stone etc).
 Problem 2
 Formulate a transportation model for the least cost
transportation plan satisfying the following
requirements.
 Availability of commodity
 Delhi-100, Mumbai- 25, Bangalore – 75
 Requirement at Jaipur-80, Calcutta-30, Kanpur-90
 Cost of transportation:
 From Delhi - to Jaipur, Calcutta, and Kanpur
 (Rs 000’s / Unit) - 5,10,2 From Mumbai - 3,7,5
 From Bangalore - 6, 8, 4.
 Minimize the cost of transportation
Pay off Matrix Rs 000’s

To Jaipur Calcutta Kanpur Total

From Available

Delhi 5 10 2 100

Mumbai 3 7 5 25

Bangalore 6 8 4 75

Total 80 30 90 200
Required 200
 Special Cases

 For case of maximisation, subtract all profits

from the highest value in profit matrix.
 This gives the opportunity cost of not making
the most efficient allocation. This opportunity
cost is to be minimized by the method.
 When the total supply and total demand are
not the same, introduce a dummy row or dummy
column with zero cost for the balance quantity.
 Assignment Model

Special case of LP and transportation models.

Here, part allocation and part fulfilling not possible
-one to one allocation only.
Basicaly for minimising.
Men to Jobs, Funds to Projects, boy to girl etc.
Minimising case - Cost, Time, Loss.
Condition – The number of rows and columns should
be the same. ie, the matrix should be square or else
made square by adding dummy.
( Algorithm for solving this model is known as the
Hungarian technique / Floods technique).
Problem 1.
Assigning Projects to Competing Contractors.
4 contractors have quoted for all the 4 projects to be
executed. But the management wants to give one
project only to each contractor for speedy completion
of all the projects and to avoid putting all eggs in one
basket.The rate quoted by the contractors for these
projects are different as given in the pay off
matrix.The objective is to assign the projects to the
various contractors such that the total cost is the
minimum. Formulate an Assignment Model.
 Pay off Matrix
Bids in Rs Crores

Projects Contractors
L&T Gammons IVR CL GMR

A 48 48 50 44
B 56 60 60 68
C 96 94 90 85
D 42 44 54 46
 Special Cases

Maximization case - convert it to minimization

case by subtracting all values in the given pay
off matrix from the highest value in the table.
This gives the opportunity cost of not making the
most efficient allocation.This opportunity cost is to be
minimized.

Unbalanced Assignment -If the number of rows

and columns differs, then the matrix has to be
made square by adding a dummy row or a
dummy column as the case may be, with zero
cost.
 General Remarks

 L.P is the most general form of all these

three models.
 Transportation Model is a special Case of
L.P
 Assignment Model is a special Case of
Transportation Model.
 Hence all the above can be solved by L.P.