Or Lectures 2011 - Part 1

Operations Research
P ro f. M . H a m d y E l wa ny
1 s t Ye a r P r o d u c t i o n E n g i n e e r i n g Department 2011
What is Operations Research?

2
Lecture 1
The Evolution of Management Thinking

3
Management Perspectives Over Time

4 2000
The Technology-Driven Workplace The Learning Organization
1990 1980 Total Quality Management 1970 Contingency Views 1950 Systems Theory 1940
2010
2010
2000
2000 2000
Management Science Perspective 1930 Humanistic Perspective 1890 Classical 1940 1870
1990
1990 2010
Forces Influencing Organizations and Management

5
Social Forces - values, needs, and standards of
behavior
Political Forces - influence of political and legal
institutions on people & organizations
Economic Forces - forces that affect the
availability, production, & distribution of a societys resources among competing users
Classical Perspective: 3000 B.C.

6
Rational, scientific approach to management
make organizations efficient operating machines

Scientific
Management
Bureaucratic
Organizations
Principles
Administrative
Scientific Management: Taylor 1856-1915

7
Developed standard method for performing
each job. Selected workers with appropriate abilities for each job. Trained workers in standard method. Supported workers by planning work and eliminating interruptions. Provided wage incentives to workers for increased output.
Scientific Management
8
Contributions Demonstrated the importance of compensation for performance. Initiated the careful study of tasks and jobs. Demonstrated the importance of personnel and their training. Criticisms Did not appreciate social context of work and higher needs of workers. Did not acknowledge variance among individuals. Tended to regard workers as uninformed and ignored their ideas
Humanistic Perspective
9
Emphasized understanding human behavior,
needs, and attitudes in the workplace

Human
Relations Movement
Human
Resources Perspective
Sciences Approach
Behavioral
Management Science Perspective

10
Emerged after World War II.
Applied mathematics, statistics, and other
quantitative techniques to managerial problems

Operations
Research mathematical modeling Operations Management specializes in physical production of goods or services Information Technology reflected in management information systems
Recent Historical Trends

11
Systems Theory
Contingency View
Total Quality Management (TQM)
An Introduction to Operations Research

12
What is Operations Research?

13
Operations
Research (OR) seeks the determination of the best (optimum) course of action of a decision problem under the restriction of limited resources. The term operations research quite often is associated with the use of mathematical techniques to model and analyze decision problems.
History of OR
14
The beginning of the activity called Operations
Research has generally been attributed to the military services early in the World War II. There was an urgent need to allocate scarce resources to the various military operations and to the activities within each operation in an effective manner. Therefore, the British and then the US military management called upon a large number of scientists.
History of OR Cont.
15
The scientists were asked to do research in
Military Operations. These teams of scientists were, thus, the first Operations Research teams. Through their research on how to better manage convoy and antisubmarine operations, they also played a major role in winning of:
Air
battle of Britain The battle of the North Atlantic. Island Campaign in the Pacific.
History of OR Cont.
16
After the success of OR in military operations,
increase attention in the use of OR in industrial and organizational applications. By the early 1950s, OR was used in a variety of organizations in
business, industry,
and government.
The rapid spread of OR soon followed.
History of OR Cont.
17
Two important factors played an important role in
rapid growth of OR
The
substantial progress that was made early in improving the techniques to OR

Simplex method
for solving linear programming problems, developed by George Dantzig in 1947 Many of the standard tools of OR, such as linear programming, dynamic programming, queuing theory, and inventory theory, were relatively well developed before the end of the 1950s.
Computer
The
revolution
development of personal computers.
OR as A Problem Solving Technique

18
OR must be viewed as both:

A
science
algorithms for solving appropriate decision problems.
Providing mathematical techniques and
An
art
as
success in all the phases that precede and succeed the solution of a mathematical model depends largely on the creativity and personal abilities of the decision-making analyst.

19
There are three main phases to use OR approach:

Phase
I: PROBLEM ANALYSIS
Define
the Operations Research Analyze the problem and divide into smaller units Establish research priorities
Phase
II: SOLUTION DEVELOPMENT
Specify
solution objectives Specify decision variables and stipulate constraints on the solution Identify or construct an appropriate model for solution development Determine and obtain required data Develop solutions using analytical mode

20
Phase
III: SOLUTION VALIDATION
Design
field test Implement field test Evaluate the propose solution Modify if necessary Integrate the solution with the larger system
Thus implementing OR approach depends on the ability of the OR team to establish good lines of communication with the sources of information as well as with the individuals responsible for implementing recommended solutions.
An Introduction to Linear Programming

21
Lecture 2
Linear Programming (LP)

22
Linear Programming has proven to be one of the
most effective operations research tools. LP success stems from its flexibility in describing multitudes of real-life situations in the following areas:
military,
industry, agriculture, transportation, behavioral and social sciences, economic sciences, etc.
LP is a mathematical modeling technique used to
determine a level of operational activity in order to achieve an objective, subject to restrictions called constraints
Model Formulation
23
Model Formulation: The first step in solving an LP model is
building the mathematical model according to the following steps: 1. Determine decision variables:
What does the model seek to determine? (mathematical symbols representing levels of activity of an operation)
2.
Determine the objective function:

A linear relationship reflecting the objective of an operation Most frequent objective of business firms is to maximize profit Most frequent objective of individual operational units (such as a production or packaging department) is to minimize cost
3.
Determine the constraints:

What restrictions must be imposed on the variables to satisfy the limitations of the modeled system? (represented by linear relationship)
Model Formulation
24
The general form of LP mathematical model will
be as follows:
Max/min subject to: z = c1x1 + c2x2 + ... + cnxn a11x1 + a12x2 + ... + a1nxn (, =, ) b1 a21x1 + a22x2 + ... + a2nxn (, =, ) b2 : am1x1 + am2x2 + ... + amnxn (, =, ) bm
xj = decision variables bi = constraint levels cj = objective function coefficients aij = constraint coefficients
LP Model: Example 1
25
RESOURCE REQUIREMENTS
PRODUCT Bowl Mug
Labor (hr/unit) 1 2
Clay Revenue (lb/unit) ($/unit) 4 40 3 50
There are 40 hours of labor and 120 pounds of clay available each day Step 1: Decision variables x1 = number of bowls to produce x2 = number of mugs to produce
LP Model: Example 1
26
PRODUCT Bowl Mug
Labor (hr/unit) 1 2
There are 40 hours of labor and 120 pounds of clay available each day Step 2: Objective Function Maximize Profit
Maximize Z = $40 x1 + 50 x2
LP Model: Example 1
27
PRODUCT Bowl Mug
Labor (hr/unit) 1 2
There are 40 hours of labor and 120 pounds of clay available each day Step 3: Constraints x1+ 2x2 < 40 hr (labor constraint) Subject to:
4x1+ 3x2 < 120 lb (clay constraint) x 1 , x2 > 0 (Non-negativity constraint)
LP Model: Example 1
28
We can write the mathematical model as one
block as follows:
Decision variables find the optimum values of: x1 = number of bowls to produce x2 = number of mugs to produce Objective Function Maximize Profit Maximize Z = $40 x1 + 50 x2 Subject to: x1+ 2x2 < 40 hr (labor constraint) 4x1+ 3x2 < 120 lb (clay constraint) x1 , x2 > 0 (Non-negativity constraint)
Solving LP Problems
29
Graphical Solution method: is one of the most
common tools in solving LP models The steps of solving the LP problems using the graphical solution method:
1. 2. 3.
Plot model constraint on a set of coordinates in a plane. Identify the feasible solution space on the graph where all constraints are satisfied simultaneously. Plot objective function to find the point on boundary of this space that maximizes (or minimizes) value of objective function.
Graphical Solution: Example 1

30
Decision variables find the optimum values of: x1 = number of bowls to produce x2 = number of mugs to produce Objective Function Maximize Profit Maximize Z = $40 x1 + 50 x2 Subject to: x1+ 2x2 < 40 hr (labor constraint) 4x1+ 3x2 < 120 lb (clay constraint) x1 , x2 > 0 (Non-negativity constraint)

31
x2 50 40 30 20 10 0 | 10 | 20
4 x1 + 3 x2 <120 lb Maximize Z = $40 x1 + 50 x2

Optimal point: x1 = 24 bowls, Area common to x2 =8 mugs both constraints (Feasibility Z = Region) $1360
x1 + 2 x2 <40 hr
| 30 | 40 | 50 | 60 x1

32
Find the maximum and minimum values of the
function z =3x1 + 5x2, given the following set of constraints,

3 x1 + 2 x2 < 18 x1 < 4 2 x2 < 12 x1 and x2 > 0

33
To solve this problem, follow the following steps:

1.
2.
3.
Represent the given inequalities and find the solution space. Represent the given function, and find its direction of increase and decrease. Find the points that would both belong to the solution space and give the maximum and minimum values of the function.

34
Representing the Inequalities

35
Draw the objective function equation with (0,0)

36
The direction of decrease is the one downwards and vice versa.
Decrease
Increase

37
shift the straight line in the direction of increase till it reaches the furthest point that still belongs to solution space

38
shift the straight line in the direction of increase till it reaches the furthest point that still belongs to solution space

39
The Optimum Solution at (2,6) Therefore the objective function = 36 X1 = 2 X2 = 6 Z = 36
Example 3: Model Formulation

40
Shirtstop makes t-shirts with logos and sells them in its chain
of retail stores. They contract with two different plantsone in Puerto Rico and one in the Bahamas. The shirts from the plant in Puerto Rice cost $0.46 apiece and 9% of them are defective and can't be sold. The shirts from the Bahamas cost only $0.35 each but they have an 18% defective rate. Shirtstop needs 3,500 shirts. To retain their relationship with the two plants they want to order at least 1,000 shirts from each. They would also like at least 88% of the shirts they receive to be salable. Formulate a linear programming model for this problem.
Example 3: Model Formulation

41
Decision variables find the optimum values of:

X1: Number of t-shirts bought from the plant in Puerto Rico X2: Number of t-shirts bought from the plant in Bahamas
Objective Function Minimize Cost Minimize Z = 0.46X1 + 0.35X2 Subject to: X1 > 1000, X2 > 1000 0.82X1 + 0.91X2 > 3500 0.82X1 + 0.91X2 > 0.88 (X1 + X2) X1, X2 > 0
An Introduction to Linear Programming

42
Lecture 2 (Cont d)
Examples
Example 1
43
Find the maximum values of the function z = 5x + 2y, given the following set of constraints:
2x
+ 3y 6, 3x + 2y 6, x and y 0
Solution
44
3x + 2y 6
(Unbounded Solution)
2
2x + 3y 6
1-
Example 2 (Infeasible Solution)

45
Find the minimum values of the function z = 5x + 2y, given the following set of constraints:
3x
+ 3y 9, 4x + 5y 20, x and y 0
Solution
46
(Infeasible Solution)
3x + 3y 9
4-
32
4x + 5y 20
1I I I I I
Example 3 (Redundant Constraint)

47
Find the maximum values of the function z = 3x1 + 5x2, given the following set of constraints:
x1
4, 2x2 12, 3x1 + 2x2 18, 3x1 + 5x2 50, x1 and x2 0
Solution
48
4x + 5y 20
13 12 11 10 9876543 2 1I I I I
Redundant Constraint Z= 36 Optimum Solution X1 =2 X2 = 6
4x + 5y 20 4x + 5y 20
4x + 5y 20
I I I I I I I I I I I I I
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17
Solution (Change Objective)

49
13 12 11 10 9876543 2 1I I I I I
If z = 3x1 + 2x2
Optimum Solution
Z= 18 X1 =4 X2 = 3
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17
Example 4
50
Find the minimum value of the given function z = 3 x1 2 x2, and the point at which it occurs, for the given set of constraints:
4 x1
+ 5 x2 < 20 x1 + x 2 > 3 x1 = 1 x1 and x2 > 0
Solution
51
x1 = 1 z = 3 x1 2 x2
4-
3-
4 x1 + 5 x2 < 20
2
x1 + x2
1I I I I
>3
I
Example 5
52
Progress city is studying the feasibility of introducing a mass transit bus system that will reduce the pollution problem by reducing in-city driving. The initial study seeks the determination of the minimum number of buses that can handle transportation needs. After gathering necessary information, the city engineer noticed that the minimum number of buses needed to meet fluctuates with the time of the day. The figure below summarizes the engineers findings. It was decided that to carry out the required daily maintenance, each bus could operate only 8 successive hours a day.
Example 5
53
Solution
54
Solution
55
Decision variables:
X1: Number of buses starting at 12:01 A.M.

X2: Number of buses starting at 04:01 A.M. X3: Number of buses starting at 08:01 A.M. X4: Number of buses starting at 12:01 P.M. X5: Number of buses starting at 04:01 P.M.
X6: Number of buses starting at 08:01 P.M.
Solution
56
Objective function: Minimize z = X1 + X2 + X3 + X4 + X5 + X6 Subject to: X1 + X6 > 4 X1 + X2 >8 X2 + X3 > 10 X3 + X 4 >7 X 4 + X5 > 12 X5 + X 6 > 4 X 1 , X2 , X3 , X4 , X 5 , X6 > 0
Example 6
57
A cargo plane has three compartments for storing cargo: front, center, and back. These compartments have capacity limits on both weight and space, as summarized below:
Compartment Front Center Back Weight capacity (tons) 12 18 10 Space capacity (cube feet) 7000 9000 5000
Example 6
58
Furthermore, the weight of the cargo in the respective compartments must be the same proportion of that compartments weight capacity to maintain the balance of the airplane. The following four cargoes have been offered for shipment on an upcoming flight as space is available:
Cargo 1 2 3 4 Weight (tons) 20 16 25 13 Volume (cubic feet/ton) 500 700 600 400 Profit ($/ton) 320 400 360 290
Example 6
59
Any portion of these cargoes can be accepted. The objective is to determine how much (if any) of each cargo should be accepted and how to distribute each among the compartments to maximize the total profit for the flight. Formulate a linear programming model for this problem.
Solution
60
Decision variables: : Number of tons of cargo type 1 stored in the front compartment : Number of tons of cargo type 1 stored in the center compartment : Number of tons of cargo type 1 stored in the back compartment : Number of tons of cargo type 2 stored in the front compartment : Number of tons of cargo type 2 stored in the center compartment : Number of tons of cargo type 2 stored in the back compartment : Number of tons of cargo type 3 stored in the front compartment : Number of tons of cargo type 3 stored in the center compartment : Number of tons of cargo type 3 stored in the back compartment : Number of tons of cargo type 4 stored in the front compartment : Number of tons of cargo type 4 stored in the center compartment : Number of tons of cargo type 4 stored in the back compartment
Solution
61
Objective function: Maximize
Solution
62
Subject to:
Solution
63
Subject to:
Example 7
64
The pacific paper company produces paper rolls with a standard width of 20 feet each. Special customer orders with different widths are produced by slitting the standard rolls. Typical orders (which may vary from day to day) are summarized in the following table:
Order Desired width (ft) Desired number of rolls
1 2 3
5 7 9
150 200 300
Example 7
65
In practice, an order is filled by setting the slitting knives to the desired widths. Usually, there are a number of ways in which a standard roll can be slit to fill a given order. The next figure shows three possible knife settings for the 20-foot roll. Although there are other feasible settings, we limit the discussion for the moment to considering settings A, B, and C. We can combine the given settings in a number of ways to fill orders for widths 5, 7, and 9 feet.
Example 7
66
Example 7
67
Find the optimum combination of settings to fulfill the orders while minimizing the trim loss. The following are two feasible combinations:
1. Slit 300 (standard rolls) using setting A, and 75 rolls using setting B. 2. Slit 200 rolls using setting A, and 100 rolls using setting C.
Solution
68
Required width (ft) 1
Knife settings 2 3 4 5 6
Minimum number of rolls
5
7 9 Trim loss per foot of length
0
1 1 4
2
1 0 3
2
0 1 1
4
0 0 0
1
2 0 1
0
0 2 2
150
200 300
Solution
69
Decision Variables
Xi = Number of standard rolls to be slit according to setting i for I = 1,2, ,6
Solution
70
Objective Function
Minimize Z = X1 + X2 + X3 + X4 + X5 + X6 Subject to 2X1 + 2X3 + 4X4 + X5 > 150 X 1 + X2 + 2X5 > 200 X 1 + X3 + 2X6 > 300 X1, X2, X3, X4, X5, X6 > 0
Solving LP Problems The Simplex Method

71
Lecture 3
Introduction
72
solving LP models using graphical method is only limited
to solving models with a maximum number of two decision variables. When the number of variables exceeds this, which is the case in most practical cases, the graphical method becomes inconvenient. We, thus, seek another method for solving LP models with more than two variables. The most common method is the analytical Simplex method. The Simplex method is an algorithm (a sequence of steps) that solves LP models. There are many common Simplex algorithms: the extended tableau, the condensed tableau, and the 2-phase method.
LP Terminologies
73
Feasible solution: The set of feasible solutions to a linear
programming problem form a convex set for which all included points satisfy all constraints and non-negativity conditions. Infeasible solution: Any point that does not satisfy all the constraints and non-negativity conditions is termed infeasible. Basic solution: A basic solution may be identified as the intersection of two (or more) constraints. Extreme points: The extreme points of the convex set of feasible solutions are equivalent to the set of basic feasible solutions. Optimal solution: The optimal solution to a given linear programming problem, if it exists, will occur at one or more extreme points.
Steps of the Simplex Process

74
The general steps to the Simplex process are:

1.
2.
Begin the search at an extreme point (a basic feasible

solution).
3. 4.
Determine if movement to an adjacent extreme point can improve on the optimization of the objective function. If not, then present solution is optimal. Move to the adjacent extreme point which offers the most improvement in the objective function. Continue steps 2 and 3 until the optimal solution is found or until it can be shown that the problem is either unbounded or infeasible.
Standard LP Form
75
The properties of this form are as follows:

All
the constraints are equations. All the variables are nonnegative. The objective function may be maximization or minimization
We shall call the inequalities with the sign of < Type I inequalities and inequalities of the sign > Type II inequalities.
Standard LP Form
76
Type I inequalities <
In the constraint X1 + 2X2 < 6, Converting it to this equation X1 + 2X2 + S1 = 6 (Adding a Slack Variable) Type II inequalities > In the constraint 3X1 + 2X2 3X3 5 Converting it to this equation 3X1 + 2X2 3X3 S2 = 5 (Adding a Surplus Variable)
Standard LP Form
77
The Artificial Variable

is added to overcome the negative value of the Surplus variable, the artificial variable doesnt have any physical significance; it is truly an artificial device employed to drive an immediate recognizable basic feasible solution.
Example: 3X1 + 2X2 3X3 5 Converting it to this equation 3X1 + 2X2 3X3 S2 + R1 = 5
Standard LP Form
78
Impact on the objective function

For
Simplicity, the objective functions should be considered as the maximization form. Thus, when dealing with a minimization objective, we simply multiply the objective by 1 and maximize it.
Given a maximization objective z, r surplus variables, and t artificial variables, the modified objective is: n r t
Maximize z c j x j c k s k c p R p
j 1 k 1 p 1
Standard LP Form
79
Maximize z c j x j c k s k c p R p
j 1 k 1 p 1
Original Objective Function Impact of the slack and surplus variables Where ck = zero Impact of the artificial variables Where cp = -M
Example on an LP Model
80
Maximize
Z = 7X1 3X2 + 5X3 Subject to,

X1 + X2 + X 3 > 9 3X1 + 2X2 + X3 < 12
X1, X2, X3 > 0
Transforming it to the Standard LP Form

81
The new Constraints
X1 + X2 + X3 - S1 + R1 =9 3X1 + 2X2 + X3 + S2 = 12 X1, X2, X3, S1, S2, and R1 > 0 The new Objective Function Maximize z= 7X1 3X2 + 5X3 + 0S1 MR1 + 0S2
Note: we will use (X) instead of S and R
Transforming it to the Standard LP Form

82
The new Constraints
X1 + X2 + X3 -X4 + X5 =9 3X1 + 2X2 + X3 + X6 = 12 X1, X2, X3, X4, X5, and X6 > 0 The new Objective Function Maximize z= 7X1 3X2 + 5X3 + 0X4 MX5 + 0X6
Therefore the solution will become
The Extended Tableau

83
After transforming the problem to the standard LP form, we set up the initial extended tableau as follows:
Coefficient Basic of the Variables Basic Labels Variables CB, 1 . . XB, 1 . . Variable Labels X1 y1,1 . . X2 y1,2 . . . . Xn y1,n . . Basic Feasible Solution Values XB,1 . .
.
CB, m
.
XB, m
.
ym,1 z1 c 1
.
ym,2 z2 c 2
.
ym,n zn c n
.
XB,m z
Indicator Row
The Extended Tableau

84
After transforming the problem to the standard LP form, we set up the initial extended tableau as follows: Where, CB,m: The coefficient of the basic variable number m in the objective function. XB,m: The basic variable number m ym,n: The coefficient of the variable number n in the constraint associated with basic variable number m zn cn: The indicator value of variable number n. Youll learn how to calculate it.
Example
85
Given the following problem, setup the initial extended tableau, then find the optimum solution to the problem using the Simplex algorithm.
Maximize
z = 6X1 + 8X2
Subject to,
4X1 + X2 20 X1 + 4X2 40 X1, X2 0
Step 1: Find Standard LP Form

86
Maximize
z = 6X1 + 8X2 + 0X3 + 0X4
Subject to,
4X1 + X2 + X3 = 20 X1 + 4X2 + X4 = 40 X1, X2, X3, X4 0
Step 2: Construct the Initial Extended Tableau

87
cj
cB 0 0 BV X3 X4
6
X1
8
X2
0
X3
0
X4 XB

88
Fill in the values of yi,j
cj
cB 0 0 BV X3 X4
6
X1 4 1
8
X2 1 4
0
X3 1 0
0
X4 0 1 XB

89
Fill in the values of the starting basic feasible
solution
cj
cB 0 0 BV X3 X4
6
X1 4 1
8
X2 1 4
0
X3 1 0
0
X4 0 1 XB 20 40

90
Calculate the indicator row, as follows:
zj cj = cbyj cj
cj
cB 0 0 BV X3 X4
6
X1 4 1
8
X2 1 4
0
X3 1 0
0
X4 0 1 XB 20 40

91
z1 c1 = [(4x0) + (1x0)] 6 = -6
cj
cB 0 0 BV X3 X4
6
X1 4 1 -6
8
X2 1 4
0
X3 1 0
0
X4 0 1 XB 20 40

92
z2 c2 = [(1x0) + (4x0)] 8 = -8
cj
cB 0 0 BV X3 X4
6
X1 4 1 -6
8
X2 1 4 -8
0
X3 1 0
0
X4 0 1 XB 20 40

93
Therefore the indicator row is as follows:
cj
cB 0 0 BV X3 X4
6
X1 4 1 -6
8
X2 1 4 -8
0
X3 1 0 0
0
X4 0 1 0 XB 20 40

94
Compute the value of the objective function
cj
cB 0 0 BV X3 X4
6
X1 4 1 -6
8
X2 1 4 -8
0
X3 1 0 0
0
X4 0 1 0 XB 20 40 0

95
This is one of the feasible solutions (iteration 0). If there are negative values in the indicator row, you can reach a better solution by continuing with the following steps.
cj
cB 0 0 BV X3 X4
6
X1 4 1 -6
8
X2 1 4 -8
0
X3 1 0 0
0
X4 0 1 0 XB 20 40 0
Step 3: Determine the Entering Variable

96
The variable having the most negative zj cj value. The entering variable is X2 (because its zj cj is equal to -8).
cj
cB 0 0 BV X3 X4
6
X1 4 1 -6
8
X2 1 4 -8
0
X3 1 0 0
0
X4 0 1 0 XB 20 40 0
Step 4: Determine the Departing Variable

97
Divide the XB column by the yi column of the entering variable, and choosing the least nonnegative value as the departing (leaving) variable.
cj
cB 0 0 BV X3 X4
6
X1 4 1 -6
8
X2 1 4 -8
0
X3 1 0 0
0
X4 0 1 0 XB 20 40 0

98
cj
cB 0 0 BV X3 X4
6
X1 4 1 -6
8
X2 1 4 -8
0
X3 1 0 0
0
X4 0 1 0 XB 20 40 0

99
Pivot Element (yij)

cj
cB 0 0 BV X3 X4
6
X1 4 1 -6
8
X2 1 4 -8
0
X3 1 0 0
0
X4 0 1 0 XB 20 40 0
Step 5: Construct the new tableau iteration 1

100
Replace the departing variable with the entering
variable.
cj
cB 0 8 BV X3 X2
6
X1
8
X2
0
X3
0
X4 XB

101
The row of the entering variable in the new tableau (i.e.
row number i) is obtained by dividing the old row i by the pivot element. cj
cB 0 8 BV X3 X2 1/4 1 0 1/4 10
6
X1
8
X2
0
X3
0
X4 XB

102
The column of the departing variable in the new
tableau is all equal to zero, except to the element in the entering variable row which is equal to one. cj
cB 0 8 BV X3 X2 1/4
6
X1
8
X2 0 1 0
0
X3
0
X4 XB
1/4
10

103
The remaining elements of the tableau are calculated
using the following relations. cj

cB 0 8 BV X3 X2 1/4
6
X1
8
X2 0 1 0
0
X3
0
X4 XB
1/4
10

104

cB 0 8 BV X3 X2 1/4
6
X1
8
X2 0 1 0
0
X3
0
X4 XB
1/4
10

105

cB 0 8 BV X3 X2
6
X1 15/4 1/4
8
X2 0 1 0
0
X3
0
X4 XB
1/4
10

106

cB 0 8 BV X3 X2
6
X1 15/4 1/4
8
X2 0 1 0
0
X3
0
X4 -1/4 XB
1/4
10

107

cB 0 8 BV X3 X2
6
X1 15/4 1/4
8
X2 0 1 0
0
X3 1 0
0
X4 -1/4 1/4 10 XB

108

cB 0 8 BV X3 X2
6
X1 15/4 1/4
8
X2 0 1 0
0
X3 1 0
0
X4 -1/4 1/4 XB 10 10

109

cB 0 8 BV X3 X2
6
X1 15/4 1/4 -4
8
X2 0 1 0
0
X3 1 0
0
X4 -1/4 1/4 XB 10 10

110
Calculate the new objective value and indicator row,
and the final form of the new tableau is given as follows. cj

cB 0 8 BV X3 X2
6
X1 15/4 1/4 -4
8
X2 0 1 0
0
X3 1 0 0
0
X4 -1/4 1/4 2 XB 10 10 80
Repeat Steps 3 and 4 for Iteration 2

111
The first iteration tableau with the entering and
departing variables shown. cj

cB 0 8 BV X3 X2
6
X1 15/4 1/4 -4
8
X2 0 1 0
0
X3 1 0 0
0
X4 -1/4 1/4 2 XB 10 10 80
Repeat Steps 5 for Iteration 2

112
The completed second iteration tableau
cj
cB 6 8 BV X1 X2
6
X1 1 0 0
8
X2 0 1 0
0
X3 4/15 -1/15
0
X4 -1/15 4/15 XB 8/3 28/3
16/15 26/15 272/3
Repeat Steps 5 for Iteration 2

113
Now, since all the zj cj are nonnegative, and there are
no artificial variables in the basis, we have reached the optimal solution. cj

cB 6 8 BV X1 X2
6
X1 1 0 0
8
X2 0 1 0
0
X3 4/15 -1/15
0
X4 -1/15 4/15 XB 8/3 28/3
16/15 26/15 272/3
The Optimum Solution

114
X*1 = 8/3
X*2 = 28/3
X*3 = 0 X*4 = 0 z* = 272/3
Summary
115
We can summarize the Simplex algorithm in the following steps,

1. 2.
3.
Find standard LP form Find the starting basic solution by constructing the initial tableau Decide whether the solution is now optimal, infeasible, unbounded, or can be improved according to the following diagram.
Summary
116 Check indicator row (zj - cj)
There are negative values (Do not stop)
There are no negative values (Stop)
There are positive ratios (Solution can be further improved)
There are no negative ratios (Solution is unbounded)
There are artificial variables in the basis (Solution is infeasible)
There are no artificial variables in the basis (Solution is optimal)
Summary
117
4. If the solution is optimal, infeasible, or
unbounded, then the problem is completed. If the solution can be improved, then do a new iteration. 5. Go to step III.
Special Types of LP Problems

118
Lecture 4
Special Features
119
There are a number of particular features that
tend to identify or isolate the special problem classes that are presented.
Variables: are usually integers and could also be of binary value. 2. Network Representation: consists of:
1.
Nodes Branches
3.
Computational Complexity
The Transportation Problem

120
Lecture 4 A
The Transportation Problem

121
A transportation problem basically deals with the problem, which aims to find the best way to fulfill the demand of n demand points (sources) using the capacities of m supply points (sinks). While trying to find the best way, generally a variable cost of shipping the product from one supply point to a demand point or a similar constraint should be taken into consideration.
The Transportation Problem (Contd)

122
I
[10]
[8]
(2) (4) (7) (3)
Sources
II
(5) [15]
``
[12]
Sinks
(1) (7)
B
(3) (2)
(2) (6) (6)
III
[10]
[15]
IV
[10]
Formulating Transportation Problems

123
Example 1: Powerco has three electric power plants that supply the electric needs of four cities:
The associated supply of each plant and demand of each city is given in the table 1. The cost of sending 1 million kwh of electricity from a plant to a city depends on the distance the electricity must travel.
The Transportation Table

124
A transportation problem is specified by the supply, the demand, and the shipping costs. So the relevant data can be summarized in a transportation tableau. The transportation table implicitly expresses the supply and demand constraints and the shipping cost between each demand and supply point.
The Transportation Table

125
Table 1. Shipping costs, Supply, and Demand for Powerco Example

From City 1 Plant 1 $8 To City 2 City 3 City 4 $9 Supply (Million kwh) 35
$6
$10
Plant 2 Plant 3
Demand (Million kwh)
$9 $14 45
$12 $9 20
$13 $16 30
$7 $5 30
50 40
Solution
126
1. Decision Variable: Since we have to
determine how much electricity is sent from each plant to each city;

Xij = Amount of electricity produced at plant i and sent to city j X14 = Amount of electricity produced at plant 1 and sent to city 4
Solution (Contd)
127
2. Objective Function: Since we want to minimize
the total cost of shipping from plants to cities;
Minimize Z = 8X11+6X12+10X13+9X14+9X21+ 12X22+ 13X23+7X24 +14X31+9X32+16X33+5X34
3. Supply Constraints: Since each supply point has
a limited production capacity;

X11+X12+X13+X14 <=
35 X21+X22+X23+X24 <= 50 X31+X32+X33+X34 <= 40
Solution (Contd)
128
4. Demand Constraints: Since each demand point
has a limited production capacity;
X11+X21+X31 >=
45 X12+X22+X32 >= 20 X13+X23+X33 >= 30 X14+X24+X34 >= 30

5. Sign Constraints: Since a negative amount of
electricity can not be shipped all Xijs must be non negative;

>= 0 (i= 1,2,3; j= 1,2,3,4)
Xij
LP Formulation of Powercos Problem

129
Min Z = 8X11+6X12+10X13+9X14+9X21+12X22+13X23
+7X24 +14X31+9X32+16X33+5X34
S.T.: X11+X12+X13+X14 <= 35 (Supply Constraints)
X21+X22+X23+X24 <= 50 X31+X32+X33+X34 <= 40 X11+X21+X31 >= 45 (Demand Constraints) X12+X22+X32 >= 20 X13+X23+X33 >= 30 X14+X24+X34 >= 30 Xij >= 0 (i= 1,2,3; j= 1,2,3,4) (Sign Constraints)
General Description of a Transportation Problem

130
A set of m supply points from which a good is shipped. Supply point i can supply at most si units. 2. A set of n demand points to which the good is shipped. Demand point j must receive at least di units of the shipped good. 3. Each unit produced at supply point i and shipped to demand point j incurs a variable cost of cij.
1.
General Description of a Transportation Problem

131
Xij = number of units shipped from supply point i to demand point j

min cijXij
i 1 j 1 i m j n
s.t. Xij si (i 1,2,...,m)

j 1
j n
X
i 1
i m
ij
dj ( j 1,2,...,n)
Xij 0(i 1,2,...,m; j 1,2,...,n)
Balanced Transportation Problem

132
If Total supply equals to total demand, the problem is said to be a balanced transportation problem:
s d
i i 1 j 1
i m
j n
Balancing Transportation Problems

133
1. Balancing a TP if total supply exceeds total
demand:
By adding dummy demand point. Since shipments to the dummy demand point are not real, they are assigned a cost of zero.
2. Balancing a transportation problem if total supply
is strictly less than total demand:
There is no doubt that in such a case one or more of the demand will be left unmet. Generally in such situations a penalty cost is often associated with unmet demand and as one can guess this time the total penalty cost is desired to be minimum
Finding Basic Feasible Solution for TP

134
Unlike other Linear Programming problems, a balanced TP with m supply points and n demand points is easier to solve, although it has m + n equality constraints. The reason for that is, if a set of decision variables (xijs) satisfy all but one constraint, the values for xijs will satisfy that remaining constraint automatically.
Solving a Balanced Transportation Problem

135
There are three basic Methods to find the
basic feasible solution for a balanced Transportation Problem: 1. Northwest Corner Method 2. Minimum Cost Method 3. Vogels Method
1. Northwest Corner Method

136
To find the BFS by the NWC method:
Begin in the upper left (northwest) corner of the transportation tableau and set x11 as large as possible (here the limitations for setting x11 to a larger number, will be the demand of demand point 1 and the supply of supply point 1. Your x11 value can not be greater than minimum of this 2 values).
1. Northwest Corner Method (Contd)

137
According to the explanation in the previous 5 slide we can set x11=3 (meaning demand of 6 demand point 1 is satisfied by supply point 1).
2 3 3 5 2 3 2 6 2 X 5 2 3

138
After we check the east and south cells, we saw 3 X that we can go east 2 (meaning supply point 1 still has capacity to fulfill some demand). 6
2 X
3
3
2 3
3
X 3 2

139
After applying the same procedure, we saw that 3 2 we can go south this time (meaning X demand point 2 needs more 3 supply 2 by supply point 2). 1
2 X 3 X 2 3 2 1 X 3 X X 2 X X X 2

140
Finally, we will have the following BFS, which is: x11=3, x12=2, x22=3, x23=2, x24=1, x34=2
3 2 3 2 1 2 X X X X X X X
2. Least Cost Method

141
The Northwest Corner Method dos not utilize shipping
costs. It can yield an initial bfs easily but the total shipping cost may be very high. The least cost method uses shipping costs in order come up with a bfs that has a lower cost. To begin the least cost method, first we find the decision variable with the smallest shipping cost (Xij). Then assign Xij its largest possible value, which is the minimum of si and dj
2. Least Cost Method (Contd)

142
After that, as in the Northwest Corner Method we
should cross out row i and column j and reduce the supply or demand of the noncrossed-out row or column by the value of Xij. Then we will choose the cell with the minimum cost of shipping from the cells that do not lie in a crossed-out row or column and we will repeat the procedure.

143
Step 1: Select the cell with minimum cost.

2 3 5 6 5 2 1 3 5 10 3 8 4 6
15
12

144
Step 2: Cross-out column 2

2 3 5 6 5 2 8 3 8 4 6 15 1 3 5 2
12

145
Step 3: Find the new cell with minimum shipping cost and cross-out row 2
2 3 5 6 5 2 2 3 8 8 4 6 15 1 3 5 X
10

146
Step 4: Find the new cell with minimum shipping cost and cross-out row 1
2 5 2 2 3 8 8 4 6 15 1 3 5 X 3 5 6 X

147
Step 5: Find the new cell with minimum shipping cost and cross-out column 1
2 5 2 2 3 5 X X 4 6 8 8 4 6 10 1 3 5 X 3 5 6 X

148
Step 6: Find the new cell with minimum shipping cost and cross-out column 3
2 5 2 2 3 5 X X 8 8 4 X 6 4 6 6 1 3 5 X 3 5 6 X

149
Step 7: Finally assign 6 to last cell. The BFS is found as: X11=5, X21=2, X22=8, X31=5, X33=4 and X34=6
2 5 2 2 3 5 X X 8 8 4 X 4 6 X 6 X 1 3 5 X 3 5 6 X
3. Vogels Method
150
Begin with computing each row and column a penalty.
The penalty will be equal to the difference between the two smallest shipping costs in the row or column. Identify the row or column with the largest penalty. Find the first basic variable which has the smallest shipping cost in that row or column. Then assign the highest possible value to that variable, and cross-out the row or column as in the previous methods. Compute new penalties and use the same procedure.
3. Vogels Method (Contd)

151
Step 1: Compute the penalties.

Supply 6 7 8 10 15 80 78 7-6=1 Row Penalty
15
78-15=63
Demand Column Penalty
15 15-6=9
5 80-7=73
5 78-8=70

152
Step 2: Identify the largest penalty and assign
the highest possible value to the variable.

Supply 6 5 15 80 78 15 78-15=63 7 8 5 8-6=2 Row Penalty
15 15-6=9
X _
5 78-8=70

153
Step 3: Identify the largest penalty and assign the highest possible value to the variable.
Supply 6 5 15 80 7 5 78 15 _ 8 0 _ Row Penalty
15 15-6=9
X _
X _

154
Step 4: Identify the largest penalty and assign the highest possible value to the variable.
Supply 6 0 15 5 80 7 5 78 15 _ 8 X _ Row Penalty
15 _
X _
X _

155
Step 5: Finally the BFS is found as X11=0, X12=5, X13=5, and X21=15
Supply 6 0 15 15 Demand Column Penalty X _ X _ X _ 5 80 7 5 78 X _ 8 X _ Row Penalty
Improving the Obtained Solution

156
1. Determine the entering variable: Using the method of multipliers. Calculate the multipliers u & v, where:
Values
of the multipliers can be determined from this relation by assuming an arbitrary value for any one of them. For each non-basic variable , calculating
The entering variable is then selected as the one with the most positive
Improving the Obtained Solution (Contd)

157
1. Determine the entering
1 1 5
2 10
4 15 25
variable:
For
5 15 5 the opposite table, the 2 3 5 equations associated with 5 15 15 10 the basic variables are given as: x : u + v = c = 10 x : u + v = c = 9 11 1 1 11 23 2 3 23
x12: u1 + v2 = c12 = 0 x22: u2 + v2 = c22 = 7

By
x24: u2 + v4 = c24 = 20 x34: u3 + v4 = c34 = 18
letting u1 = 0, the values of the multipliers are successively determined as v1 = 10, v2 = 0, u2 = 7, v3 = 2, v4 = 13, and u3 = 5.

158
1. Determine the entering variable:

X31
has the most positive

159
2. Determine
the
leaving
variable
(Loop
construction):
A closed loop for the current entering variable is constructed. The loop starts and ends at the designated nonbasic variable. It consists of successive horizontal and vertical (connected) segments whose end points must be basic variables, except for the end points that are associated with the entering variable.

160
2. Determine
the
leaving
variable
(Loop
construction):
This means that every corner element of the loop must be a cell containing a basic variable. It is immaterial whether the loop is traced in a clockwise or counterclockwise direction.
In the example:
This loop may be defined in terms of the basic variables as X31 X11 X12 X22 X24 X34 X31

161
1
10 1 5
2
0 10
3
20
4
11 15
12 2 5
+
7 15 9 5 20 25
0
3
+
16
5
14
18
5
x31
+
5 15 15 10

162
2. Determine
the
leaving
variable
(Loop
construction):
The leaving variable is selected from among the corner variables of the loop that will decrease when the entering variable X31 increases above the zero level. These are indicated by the by the variables in the squares labeled with minus signs. In our particular problem, these variables are X11, X22, and X34.

163
2. Determine
the
leaving
variable
(Loop
construction):
The leaving variable is selected as the one having the smallest value, since it will be the first to reach zero value and any further decrease will cause it to be negative. Since the three variables have the same value (=5), we arbitrarily select any of them as the leaving variable. Suppose that X34 is taken as the leaving variable, then the value of X31 is increased to 5, and the values of the corner basic variables are adjusted accordingly

164
1 10
2 0 15 12 7 0 15
3 20
4 11
1
0 2 10 9 20
15
25
0
3
14
16
18
5
5
5 15 15 10

165
3. Repeat the Previous Steps Till Optimality
Is Reached:
The new basic solution should be checked for optimality by computing the new multipliers. The previous steps should be repeated for each iteration. The optimum solution is obtained when all the are non-positive.
The Transshipment Problem

166
Lecture 4 B
The Transshipment Problem

167
It is a more general view of the transportation
problem. Not only is movement allowed from sources to sinks, but also:
From
sources to sources. From sinks to sinks. From sinks back to sources.

Costs are usually decreased, but problem size
increases significantly.
Transportation vs. Transshipment

168
Transportation
C A D B E
Transshipment
C A D B E
The Transshipment Matrix

169 To From 1 . . Source i . . m 1 . . Sink j . . n Demand
Source
Sink
Availability a1 + U . . ai + U . . am + U U . . U . . U
1im
1jn
(1) Source-to-source sub-matrix
(2) Source-to-sink submatrix
(3) Sink-to-source sub-matrix

UUU
(4) Sink-to-sink submatrix

b1 + U bj + U bn + U
The Transshipment Matrix (Contd)

170
Contains 4 main sub-matricies:

1.
2. 3. 4.
source-to-source, source-to-sink, sink-to-source, sink-to-sink.
All
availabilities and demands include a constant U:

the maximum amount that could be transshipped
Transshipment Example
171
Transshipment Network
[9]
Embedded Transportation Network

I
[20] [9]
I
[20]
A
(3)
(12) (10) (14) (2)
(12) (10) (14)
II
(6) (10) (5) (6)
[9] (3)
(6) (10) [7]
II B
(5)
[9]
[7]
III
[9]
III
[9]
Transshipment Example (Contd)

172
We shall first, for the purpose of comparison,
solve for the solution to the embedded transportation problem.

I A 12 9 6 9 10 II 10 2 5 III 14 Available 20
B Demand 9
7
9 9

173
Then, we construct the transshipment matrix:

To From Source A B A 0 3 12 10 14 27 27 Source B 3 0 6 10 5 Sink
I
12 6 0 2 3 9 + 27
II
10 10 2 0 6 9 + 27
III
14 5 3 6 0 9 + 27
Available 20 + 27 7 + 27 27 27 27
I
Sink
II III
Demand

174
Since
, we have let U equal to 27 units. Next is to obtain initial feasible solution:

Could be achieved by VAM. Solution of the embedded transportation problem will be used instead. Start by filling in the source-to-sink portion of the sub-matrix (which is the embedded transportation matrix). Next, we allocate, to each main diagonal cell, the amount U, which, for this problem, is 27 units.

175
The resultant feasible initial allocation:

To
From A A B 27 0 3 12 10 14 27 27 B 3 0 6 10 5 36 9
Source
Sink
I
12 6 0 2 3 9
II
10 10 2 0 6 36 2 7
III
14 5 3 6 0 36
Available
Source
47 34 27 27 27
27
I
Sink
27
II III
27
27
Demand

176
Next,
solving the resultant matrix using the normal transportation technique. Final transshipment solution:
To From Source Sink
A
A B 27 0 3 12 10 14 27 11 16
B
3 0 6 10 5 27
I
12 6 0 2 3 36 9
II
10 10 2 0 6 36
III
14 5 3 6 0 36
Available 47 34 27 27 27
Source
9 27
I
Sink
II III
27
27
Demand

177
Final solution representation:

I
[20] [9]
A
11
9 [7]
II
9
[9]
B III
[9]
The Assignment Problem

178
Lecture 4 C
The Assignment Problem

179
The assignment problem is a special subclass of the
transportation problem. The assignment problem gets its name from a particular application in which we wish to assign "individuals" to "tasks (or tasks to machines, etc.). It is assumed that each individual can be assigned to only one task, and each task is assigned to only one individual.
The Mathematical Model

180
Decision Variables:
Objective Function:
= Number of source nodes (jobs, employees, etc.) n = Number of sink nodes (machines, offices, etc.) cij = Cost of assigning source i to sink j
The Mathematical Model (Contd)

181
Subject to:
The Assignment Problem Example

182
Machineco has four jobs to be completed. Each machine must be assigned to complete one job. The time required to setup each machine for completing each job is shown in the table below. Machinco wants to minimize the total setup time needed to complete the four jobs.
The Assignment Problem Example

183
Setup times (Also called the cost matrix)

Time (Hours)
Job1 Job2 Job3 Job4 Machine 1 Machine 2 Machine 3 14 2 7 5 12 8 8 6 3 7 5 9
Machine 4
10
The Model
184
According to the setup table Machincos problem can be
formulated as follows (for i,j=1,2,3,4):

min Z 14 X 11 5 X 12 8 X 13 7 X 14 2 X 21 12 X 22 6 X 23 5 X 24 7 X 31 8 X 32 3 X 33 9 X 34 2 X 41 X 42 6 X 43 10 X 44 s.t. X 11 X 12 X 13 X 14 1 X 21 X 22 X 23 X 24 1 X 31 X 32 X 33 X 34 1 X 41 X 42 X 43 X 44 1 X 11 X 21 X 31 X 41 1 X 12 X 22 X 32 X 42 1 X 13 X 23 X 33 X 43 1 X 14 X 24 X 34 X 44 1 Xij 0 or Xij 1
The Model
185
For the model on the previous page note that:

Xij=1
if machine i is assigned to meet the demands of
job j Xij=0 if machine i is assigned to meet the demands of job j In general an assignment problem is a balanced transportation problem in which all supplies and demands are equal to 1.
Solution Method (Contd)

186
Although the transportation simplex appears to
be very efficient, there is a certain class of transportation problems, called assignment problems, for which the transportation simplex is often very inefficient. For that reason there is an other method called The Hungarian Method. Some basic ideas:
1.
Suppose we ranked all feasible assignments in increasing order of cost.

187
2.
3.
4.
The ranking does not change if one subtracts the same amount, say, D, from all costs in the same row, since all assignment costs are reduced by D. The ranking does not change if one subtracts the same amount, say, D, from all costs in the same column, since all assignment costs are reduced by D. An assignment selects one entry in each row and one in each column.

188
5.
6.
As long as all costs are kept nonnegative, if the reduced cost matrix allows a zero cost assignment, that assignment is optimal. If there is a zero cost in each row and a zero cost in each column of the reduced cost matrix, this assignment is optimal.

189
The steps of The Hungarian Method are as listed below:
Step1: Find the minimum element in each row of the mxm cost matrix. Construct a new matrix by subtracting from each cost the minimum cost in its row. For this new matrix, find the minimum cost in each column. Construct a new matrix (reduced cost matrix) by subtracting from each cost the minimum cost in its column. Step 2: Draw the minimum number of lines (horizontal and/or vertical) that are needed to cover all zeros in the reduced cost matrix. If m lines are required , an optimal solution is available among the covered zeros in the matrix. If fewer than m lines are required, proceed to step 3.

190
The steps of The Hungarian Method are as
listed below:
Step 3: Find the smallest nonzero element (call its value k) in the reduced cost matrix that is uncovered by the lines drawn in step 2. Now subtract k from each uncovered element of the reduced cost matrix and add k to each element that is covered by two lines. Return to step 2.
Solving the Assignment Problem

191
Row reduction:
Time (Hours) Job 1 Machine 1 Machine 2 Machine 3 Machine 4 14-5 2-2 7-3 2-2 Job 2 5-5 12-2 8-3 4-2 Job 3 8-5 6-2 3-3 6-2 Job 4 7-5 5-2 9-3 10-2

192
Column reduction:
Time (Hours) Job1
Machine 1 Machine 2 Machine 3 Machine 4 9 0 4 0
Job2
0 10 5 2
Job3
3 4 0 4
Job4
2-2 3-2 6-2 8-2

193
Result of column reduction:

Time (Hours) Job1 Machine 1 Machine 2 Machine 3 Machine 4 9 0 4 0 Job2 0 10 5 2 Job3 3 4 0 4 Job4 0 1 4 6

194
Crossing out zeros:

Time (Hours) Job1 Machine 1 Machine 2 Machine 3 Machine 4 9+1 0 4 0 Job2 0 10-1 5-1 2-1 Job3 3+1 4 0 4 Job4 0 1-1 4-1 6-1

195
Crossing out zeros after modification:

Time (Hours) Job1 Machine 1 Machine 2 Machine 3 Machine 4 10 0 4 0 Job2 0 9 4 1 Job3 4 4 0 4 Job4 0 0 3 5

196
Optimal Assignment For the Reduced Cost Matrix

Time (Hours) Job1 Job2 Job3 Job4 Machine 1 Machine 2 Machine 3 Machine 4 10 0 4 0 0 9 4 1 4 4 0 4 0 0 3 5

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Operations Research

What is Operations Research?

The Evolution of Management Thinking

Management Perspectives Over Time

Forces Influencing Organizations and Management

Social Forces - values, needs, and standards of

Political Forces - influence of political and legal

institutions on people & organizations

Economic Forces - forces that affect the

availability, production, & distribution of a societys resources among competing users

Classical Perspective: 3000 B.C.

Rational, scientific approach to management

make organizations efficient operating machines

Scientific Management: Taylor 1856-1915

Developed standard method for performing

Emphasized understanding human behavior,

needs, and attitudes in the workplace

Management Science Perspective

Emerged after World War II.

Applied mathematics, statistics, and other

quantitative techniques to managerial problems

Recent Historical Trends

Total Quality Management (TQM)

An Introduction to Operations Research

What is Operations Research?

The beginning of the activity called Operations

The scientists were asked to do research in

After the success of OR in military operations,

Two important factors played an important role in

substantial progress that was made early in improving the techniques to OR

development of personal computers.

OR as A Problem Solving Technique

OR must be viewed as both:

Providing mathematical techniques and

OR as A Problem Solving Technique

There are three main phases to use OR approach:

II: SOLUTION DEVELOPMENT

OR as A Problem Solving Technique

III: SOLUTION VALIDATION

An Introduction to Linear Programming

Linear Programming (LP)

Linear Programming has proven to be one of the

LP is a mathematical modeling technique used to

Model Formulation: The first step in solving an LP model is

Determine the objective function:

Determine the constraints:

The general form of LP mathematical model will

Clay Revenue (lb/unit) ($/unit) 4 40 3 50

Clay Revenue (lb/unit) ($/unit) 4 40 3 50

Clay Revenue (lb/unit) ($/unit) 4 40 3 50

We can write the mathematical model as one

Graphical Solution method: is one of the most

Graphical Solution: Example 1

Graphical Solution: Example 1

4 x1 + 3 x2 <120 lb Maximize Z = $40 x1 + 50 x2

Graphical Solution: Example 2

Find the maximum and minimum values of the

function z =3x1 + 5x2, given the following set of constraints,

Graphical Solution: Example 2

To solve this problem, follow the following steps:

Graphical Solution: Example 2

Representing the Inequalities

Graphical Solution: Example 2

Draw the objective function equation with (0,0)