What is Operations Research?

Meaning Of OR:

According to T.L.Saaty “OR is the art of giving bad

results to problems to wkich otherwise worse
results are given”.

According to Churchman “OR is the application of

scientific methods, techniques and tools to
problems involving the operations of systems so
as to provide these in control of the application
with optimum solutions to the problem”.

According to H.M.Wagner “ OR is the scientific

approach to problem solving for executive
management”.
Scope of OR:

• In Agriculture
• In Finance
• In Industry
• In Marketing
• In Production Management
• In Personnel Management
• In Production Management
• In L.I.C
Methodology Of OR:

Define the Develop the Obtain Input Solve the Model

Problem Model Data
Model Validation

Analyze the results

Implement the Solution

What is Linear Programming Problem?
(LPP)
Formulation of LPP:

Step 1:Determine the objective function as a

linear function of the variables.

Step 2: Formulate the other conditions of

the problem such as resources limitations
as linear equations or inequations interms
of the variables.

Step 3: Add the non-negativity constraints.

Production Allocation Problem:
A manufacturer produces two types of models A &
B. Each model A requires 4 hours of grinding
and 2 hours of polishing, where as model B
requires 2 hours of grinding and 5 hours of
polishing. The manufacturer has 2 grinders and
3 polishers. Each grinder works for 40 hours a
week and each polisher works for 60 hours a
week. Profit on model A is Rs.3 and on model B
is Rs.4. Whatever is produced in a week is sold
in the market. How should the manufacturer
allocate his production capacity to the types of
models so that he may make the maximum profit
in week?
2. A manufacturing firm needs 5 component parts.
Due to inadequate resources, the firm is unable
to manufacture all its requirements. So the
management is interested in determining as to
how many , if any , units of each component
should be purchased from the outside and how
many should be produced internally. The
relevant data are given below.
Component M A T TR PP PC
C1 4 1 1.5 20 48 30
C2 3 3 2 50 80 52
C3 1 1 0 45 24 18
C4 3 1 0.5 70 42 31
C5 2 0 0.5 40 28 16
Where
M: Per unit milling time in hours
A: Per unit assembly time in hours
T: Per unit testing time in hours
TR: Total requirements in units
PP: Price per unit quoted in the market
PC: Per unit direct costs
Resources available are as follows:
Milling hours: 300
Assembly hours: 160
Testing hours: 150

Formulate this as an LPP, taking the objective function as

maximization of saving by producing the components
internally.
3. The marketing department of Everest company
has collected information on the problem of
advertising for its product. This relates to the
advertising media available, the number of
families expected to be reached with each
alternative, cost per advertisement, the maximum
availability of each medium and the expected
exposure of each one. The information is as
given below:
No.of families Maximum Expected
expected to Cost per availability (No.of exposure
Advertising Media cover Ad (Rs) times) (units)
TV(30 sec) 3000 8000 8 80
Radio(15 sec) 7000 3000 30 20
Sunday edition of a daily (1/4
page) 5000 4000 4 50
Magazine(1 page) 2000 3000 2 60
Other information and requirements:
a) The advertising budget is Rs 70,000
b) At least 40,000 families should be
covered.
c) At least 2 insertions be given in Sunday
edition of a daily.
Formulate this as LPP to maximize the
expected exposure.
Graphical Method of solving a GLPP:
Step 1: Consider each inequality as
equation.
Step 2: Plot each equation on the graph.
Step 3: Identify the feasible solution or
common region satisfying all the
constraints simultaneously.
Step 4: Determine the corner points of the
feasible region.
Step 5: Find the optimal solution by
substituting the corner points in the
objective function.
 Two products: Chairs and Tables

Decision: How many of each to make this

month?

Objective: Maximize profit

 Flair Furniture Co. Data
Tables Chairs
(per table) (per chair)
Profit Hours
7 5
Contribution Available
Carpentry 3 hrs 4 hrs 2400
Painting 2 hrs 1 hr 1000

Other Limitations:
• Make no more than 450 chairs
• Make at least 100 tables
Decision Variables:
T = No. of tables to make
C = No. of chairs to make

Objective Function: Maximize Profit

Z=7T +5C
Constraints:

• Have 2400 hours of carpentry time

available
3 T + 4 C < 2400 (hours)
• Have 1000 hours of painting time available
2 T + 1 C < 1000 (hours)
More Constraints:
• Make no more than 450 chairs
C < 450 (no. chairs)
• Make at least 100 tables
T > 100 (no. tables)

Non-negativity:
Cannot make a negative number of chairs or
tables
T>0
C>0
 Max Z = 7T + 5C (Profit)
Subject to the constraints:
3T + 4C < 2400 (carpentry hrs)
2T + 1C < 1000 (painting hrs)
C < 450 (max no.of chairs)

T > 100 (min no.of tables)

T, C > 0 (non-negativity)
 C
Carpentry
Constraint Line
3T + 4C = 2400 Infeasible
600
> 2400 hrs
3T
+
Intercepts 4C
=
24
00
(T = 0, C = 600) Feasible
< 2400 hrs
(T = 800, C = 0)
0
0 800 T
 C
1000
Painting
Constraint Line

2T
+
2T + 1C = 1000

1C
600

=1
000
Intercepts
(T = 0, C = 1000)
(T = 500, C = 0) 0
0 500 800 T
 C
1000
Max Chair Line
C = 450
(T=0, C=450)
600
450
Min Table Line
T = 100
Feasible
(T=100, C=0) Region
0
0 100 500 800 T
The corner points of the feasible region are:
A(100,0)
B(500,0)
C(320,360)
D(200,450)
E(100,450)
Z value at A(100,0) = 700
Z value at B(500,0) =3500
Z value at C(320,360) =4040
Z value at D(200,450) =3650
Z value at E(100,450) =2950

Z value maximum at C(320,360) hence an

optimum solution is given by
T=320 & C=360 and max profit is Rs.4040
2. Solve graphically:

Minimize Z  6x1  14x 2

Subject to 5x1  4 x 2  60
3x1  7 x 2  84
x1  2 x 2  18
and x1  0, x 2  0
3. Solve graphically

Minimize Z  3x1  2 x 2
Subject to x1  x 2  1
x1  x 2  3
and x1  0, x 2  0
4. Solve graphically

Maximize Z  x1  x 2
Subject to x1  x 2  1
- 3x1  x 2  3
and x1  0, x 2  0
Simplex method of solving GLPP
Standard from of LPP:
1.Check whether the objective function is to
be maximized or minimized. If minimized
convert it into maximization form
Min Z= -{Max(-Z)}

EX:Min Z= 2x-3y+7z
Min Z= -{Max(-[2x-3y+7z ])}
Min Z= -{Max(-2x+3y-7z)}
2. The right hand side constant of each
constraint should be non-negative. If not made
it positive by multiplying it by
-1(one).
Ex: Max Z  2x  5y
s.t 8x - 5y  26
2x - y  -7
and (x, y)  0

Max Z  2x  5y
s.t 8x - 5y  26
(-1)[2x - y]  (1)(-7)  -2x  y  7
and (x, y)  0
3. All the decision variables should be non-
negatively restricted i.e if the variable x is
unrestricted in sign then such a variable is
expressed as the difference between two
variables which are non-negative
x  x  x where x  0, x  0

EX : Max Z  2x - 7y
s.t 2x  9y  12
3x - y  7
x 0
Max Z  2x - 7(y - y)  2x - 7y  7y
s.t 2x  9(y - y)  12
 2x  9y - 9y  12
3x - (y - y)  7
 3x - y  y  7
x  0, y  0, y  0
4.Convert all the inequalities into equations by
introducing non-negative variables on the left hand
side of each constraint called slack or surplus
variables.

If the type of inequality is of  then add a slack variable on

the left hand side of each constraint. If the type of inequality
is of  then substract a surplus variable on the left hand side
of each constraint.
Max Z  2x  3y
s.t 2x  y  60
- x  2y  84
7x  4y  25
and (x , y)  0
Max Z  2x  3y
s.t 2x  y  s1  60
- x  2y - s 2  84
7x  4y  25
and (x , y)  0
Simplex method of solving LPP
• Solve by simplex method

Max Z  5x1  4 x 2
s.t 6x1  4x 2  24
x1  2x 2  6
- x1  x 2  1
x2  2
and (x1 , x 2 )  0
Step 1: Convert the LPP into standard form.
Max Z  5x1  4x 2
s.t 6x1  4x 2  s1  24
x1  2x 2  s2  6
- x1  x 2  s3  1
x2  s4  2
and (x1  0, x 2  0, s1  0, s2  0, s3  0, s 4  0)
Max Z  5x1  4x 2  0.s1  0.s2  0.s3  0.s4
s.t 6x1  4x 2  s1  24
x1  2x 2  s2  6
- x1  x 2  s3  1
x2  s4  2
and (x1  0, x 2  0, s1  0, s2  0, s3  0, s 4  0)
Step 2: Prepare simplex table
 cj 5 4 0 0 0 0
B.V C B Sol  b i  x 1 x2 s1 s2 s3 s4
s1 0 24 6 4 1 0 0 0
s2 0 6 1 2 0 1 0 0
s3 0 1 -1 1 0 0 1 0
s4 0 2 0 1 0 0 0 1
Now compute  j  z j  c j
where z j   (C.B)  x j or s j
 cj 5 4 0 0 0 0
B.V C B Sol  b i  x 1 x2 s1 s2 s3 s4
s1 0 24 6 4 1 0 0 0
s2 0 6 1 2 0 1 0 0
s3 0 1 -1 1 0 0 1 0
s4 0 2 0 1 0 0 0 1
Δj 5 4 0 0 0 0
Step 3 :
Case I :If all Δ  0 then the solution will be optimal.
j
Case II : If atleast one Δ is negative then the solution
j
is not otimal.Got o the next step.
Step 4 : Determine incoming & outgoing variable

Incoming variable(I.V) : The variable having most negative Δ j

To determine outgoing variable compute Ratios and chose

minimum of them( ignore negative ratios & infinitive)
 cj 5 4 0 0 0 0
B.V CB Sol x1 x2 s1 s2 s3 s4
s1 0 24 6 4 1 0 0 0
s2 0 6 1 2 0 1 0 0
s3 0 1 -1 1 0 0 1 0
s4 0 2 0 1 0 0 0 1
Δj 5 4 0 0 0 0
 (I.V)
 cj 5 4 0 0 0 0
B.V CB Sol x1 x2 s1 s2 s3 s 4 Ratios(Sol/x1 )
s1 0 24 6 4 1 0 0 0 24 6  4 (o.v)
s2 0 6 1 2 0 1 0 0 6 6
1
s3 0 1 -1 1 0 0 1 0 ignore
s4 0 2 0 1 0 0 0 1 ignore
Δj 5 4 0 0 0 0
(I.v)
 cj 5 4 0 0 0 0
B.V CB Sol x1 x2 s1 s2 s3 s 4 Ratios
s1 0 24 6 4 1 0 0 0 
s2 0 6 1 2 0 1 0 0
s3 0 1 -1 1 0 0 1 0
s4 0 2 0 1 0 0 0 1
Δj 5 4 0 0 0 0

Step 5: Mark the element in the incoming variable
corresponding to the outgoing variable called
key element or pivotal element.
Step 6: Divide each element of the Key row
(including bi) by the key element to get the
corresponding values in the new table.

1st row (new)

Sol b i  x1 x2 s1 s2 s3 s4
4 1 4/6 1/6 0 0 0
For each row other than the key row,

New row element 

Old row element -
  Row element in the key column   
 
  Correspond ing replacemen t row value 
Corresponding replacement row value:
Sol b i  x1 x2 s1 s2 s3 s4
4 1 4/6 1/6 0 0 0

2 nd old row:
Sol b i  x1 x2 s1 s 2 s3 s 4
6 1 2 0 1 0 0
Old row element- Row element in key column* corresponding replacement
value
6 1 4 =2
1 1 1 =0
2 1 4/6 =8/6
0 1 1/6 =-1/6
1 1 0 =1
0 1 0 =0
0 1 0 =0
2 nd row (new):
Sol  b i  x1 x2 s1 s2 s3 s4
2 0 8/6 - 1/6 1 0 0
Corresponding replacement row value:
Sol b i  x1 x 2 s1 s 2 s 3 s 4
4 1 4/6 1/6 0 0 0
3 rd old row:
Sol b i  x1 x2 s1 s 2 s3 s 4
1 -1 1 0 0 1 0
Old row element- Row element in key column* corresponding replacement
value
1 -1 4 =5
-1 -1 1 =0
1 -1 4/6 =10/6
0 -1 1/6 =1/6
0 -1 0 =0
1 -1 0 =1
0 -1 0 =0
3 rd row (new):
Sol  b i  x1 x2 s1 s2 s3 s4
5 0 10/6 1/6 0 1 0
Corresponding replacement row value:

Sol b i  x1 x2 s1 s2 s3 s 4
4 1 4/6 1/6 0 0 0
4 th old row:

Sol b i  x1 x2 s1 s 2 s3 s 4
2 0 1 0 0 0 1
Old row element- Row element in key column* corresponding replacement
value
2 0 4 =2
0 0 1 =0
1 0 4/6 =1
0 0 1/6 =0
0 0 0 =0
0 0 0 =0
1 0 0 =1
4 th row (new)

Sol  b i  x1 x2 s1 s2 s3 s4
2 0 1 0 0 0 1
 cj 5 4 0 0 0 0
B.V C B Sol  b i  x 1 x2 s1 s2 s3 s4
x1 5 4 1 4 6 16 0 0 0
s2 0 2 0 8 6 1 6 1 0 0
s3 0 5 0 10 6 16 0 1 0
s4 0 2 0 1 0 0 0 1
Now compute again ΔJ
 cj 5 4 0 0 0 0
B.V C B Sol  b i  x 1 x2 s1 s2 s3 s4
x1 5 4 1 4 6 16 0 0 0
s2 0 2 0 8 6 1 6 1 0 0
s3 0 5 0 10 6 16 0 1 0
s4 0 2 0 1 0 0 0 1
j 0 -4 5 0 0 0
6 6
 cj 5 4 0 0 0 0
B.V C B Sol bi  x 1 x2 s1 s2 s3 s4 Ratio sol/x 2 
4
x1 5 4 1 4 6 16 0 0 0 6
46
2 12
s2 0 2 0 8 6 1 6 1 0 0  ( . )
86 8
5
s3 0 5 0 10 6 16 0 1 0 3
10 6
2
s4 0 2 0 1 0 0 0 1 2
1
j 0 -4 5 0 0 0
6 6

 cj 5 4 0 0 0 0
B.V C B Sol  b i  x 1 x2 s1 s2 s3 s4
x1 5 3 1 0 1/4 - 1/2 0 0
x2 4 3/2 0 1 1 8 3/4 0 0
s3 0 5/2 0 0 3/8 - 5/4 1 0
s4 0 1/2 0 0 1/8 - 3/4 0 1
 cj 5 4 0 0 0 0
B.V C B Sol  b i  x 1 x2 s1 s2 s3 s4
x1 5 3 1 0 1/4 - 1/2 0 0
x2 4 3/2 0 1 1 8 3/4 0 0
s3 0 5/2 0 0 3/8 - 5/4 1 0
s4 0 1/2 0 0 1/8 - 3/4 0 1
Δj 0 0 6/8 1/2 0 0
Since all Δ j ' s are  0 hence an optimum solution is attained.
and is given by x 1  3, x 2  3 and the maximum profit is
2
 3  5  1
Z     C.B  Sol  (5 * 3)   4 *    0 *    0 *   21.
 2  2  2
• The Omega manufacturing company has
discontinued the production of a certain
unprofitable product lin. This act created
considerable excess production capacity.
Management is considering devoting this
excess capacity to one or more of the
three products; call them products 1,2 and
3. The available capacity on the machines
that might limit output is summarized in the
following table:
Machine Type Available Time(Machine Hrs per
week)
Milling machine 500
Lathe 350
Grinder 150

The number of machine hours required for each

unit of the respective product is:
Machine Type Product 1 Product 2 Product 3

Milling machine 9 3 5

Lathe 5 4 0

Grinder 3 0 2
The sales department indicates that the
sales potential for product 3 is 20 units per
week. The unit profit would be Rs. 50,
Rs.20, and Rs.25 respectively on products
1,2 and 3. the objective is to determine
how much of each product Omega should
produce to maximize the profit.
• A firm produces three products A,B and C,
each of which passes through three
departments: Fabrication, Finishing and
Packaging. Each unit of product A requires
3,4 and 2; a unit of product B requires 5, 4
and 4, while each unit of product C requires
2, 4 and 5 hours respectively in three
departments. Everyday, 60 hours are
available in the fabrication department, 72
hours in the finishing department and 100
hours in the packaging department. The unit
contribution of product A is Rs.5, of product
is Rs.10, and of product C is Rs.8.