Course code Course Name L-T-P - Credits Year of Introduction

IE303 OPERATIONS RESEARCH 3-0-0-3 2016

Prerequisite : Nil
Course Objectives
 To develop the ability to formulate mathematical models for quantitative analysis of
decision making problems in industry.
 To develop skills in the use of Operations Research approaches in solving real life
problems in industry.

Syllabus
Introduction, development of OR, Linear programming problems, Allocation models such as
transportation, assignment, and travelling salesman problems, Decision theory, Game theory,
queuing theory, project management and introduction to simulation.

Expected outcome:
Upon completion of the course the students will:
 Understand the importance and value of operations research and mathematical modelling
in solving practical problems in industry.
 Understand the characteristics of different types of decision-making environments and will
be able to apply appropriate decision making approaches and tools to be used in each type.

Text Books/References:
1. Gupta P. K. and D. S. Hira, Operations Research, S. Chand and Sons, 2008.
2. Hillier F. S. and G. J. Lieberman, Introduction to Operations Research, Tata McGraw
Hill, 2005.
3. Kalavathi S., Operations Research, Vikas Publishing House, 2002.
4. Rardin R. L., Optimization in Operations Research, Pearson Education, 2013
5. Sharma J.K., Operations Research, Macmillan, 2009.
6. Srinivasan G., Operations Research, PHI, 2010.
7. Swarupet K., P. K. Gupta and M. Mohan, Operations Research, S. Chand and Sons,
1978.
8. Taha H. A., Introduction to Operations Research, 9/e, PHI, 2010.
9. Taylor, Introduction to Management Science, Pearson Education, 2013.
10. Vohra N. D., Quantitative Methods in Management, TMH, 2006.
11. Wagner H.M., Principles of Operations Research with Applications to Managerial
Decisions, PHI, 1975.
12. Winston W. L., Operations Research: Applications and Algorithms, Thomson Business
Press, 2008.
 Course Plan
Sem. Exam
Module Contents Hours Marks
Operations research - Definitions, History, Applications,
Models and Methods for solving Operations Research
Models. Linear Programming models - General
I formulation, Graphical solutions, Simplex method - Two 7 15%
Phase method, Big M method, Duality theory –
Interpretation of dual variables, shadow price, Primal
Dual Relationships.
Transportation Problems - General Concepts,
Formulations, Balanced/Unbalanced transportation
problems. Solution Methods - North West Corner rule,
Least Cost Method, Vogel‘s Approximation Method.
Optimality Tests - Stepping Stone Method and Modified
Distribution method, Degeneracy, Transhipment
II 7 15%
problems, maximization problems.
Assignment Problems - General Concepts, Assumptions &
Limitations, Formulation and solution of assignment
problem, Special Issues, Restricted routes/Multiple
Optimal Solutions. Generalized Transportation Problem,
Generalized Assignment Problem.
FIRST INTERNAL EXAMINATION
Queuing theory - Taxonomy of waiting line models, Pure
birth-death model. Basic Queuing Models - Single Server
III Infinite Queue Length Model, Single Server Finite Queue 8 15%
Length Model, Multiple Server Infinite Queue Length
Model, Multiple Server Finite Queue Length Model.
Deterministic Dynamic Programming - stage and state,
characteristics of DP problems, recursive relationship,
Bellman’s principle of optimality - computational
IV procedure for Shortest Route problem, Reliability 6 15%
Problem, Equipment Replacement Problem, Linear
Programming Problem, Manpower Planning problem, Oil
Exploration Problem, Knapsack problem, etc.
SECOND INTERNAL EXAMINATION
Game theory - Practical application of game theory, Two –
person Zero - Sum games, Solution with and without
Saddle point, Rules of Dominance, other solution
V methods. 9 20%
Decision theory -Types of decision making environment -
Decision making under uncertainty and under risk –
Decision tree analysis.
Replacement analysis: items that deteriorate over time,
items that fail suddenly, optimum replacement policies for
VI 5 20%
both cases.
Introduction to software packages for decision making.
END SEMESTER EXAM
End Semester Examination Question Paper Pattern:

Examination duration: 3 hours Maximum Total Marks: 100

Part A (Modules I and II):

Candidates have to answer any 2 questions from a choice of 3 questions. Each full question
carries a total of 15 marks and can have a maximum of 4 sub questions (a, b, c, d). No two
questions shall be exclusively from a single module. All three questions shall preferably have
components from both modules. Marks for each question/sub question shall be clearly
specified. Total percentage of marks for the two modules put together as specified in the
curriculum shall be adhered to for all combinations of any two questions.

Part B (Modules III and IV):

(Same as for part A)

Part C (Modules V and VI):

(Same as for part A, except that each full question carries 20 marks)

Note: If use of tables and charts are permitted for the university examination for this course,
proper direction of the same should be provided on the facing sheet of the question paper.