OPERATIONS RESEARCH

Lecture 1: Introduction to OR Models

KUSUM DEEP
Mathematics Department

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 About this course
Who should attend this course?
• UG/PG students
• GATE aspirants
• UGC/CSIR NET aspirants
• Research scholars
• Industry personnel
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What are the areas of specializations?
• Science
• Engineering
• Management
• Finance
• Business
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Which topics will be covered?
• Linear Programming and its variants
• Multi-objective and goal programming
• Transportation and assignment problems
• Sequencing and scheduling
• Game Theory
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 OUTLINE OF THIS TALK
• Introduction and definitions
• Modeling of real life problems as LPP
• Different types of OR Models
• Questions and Exercises
 What is Operations Research?
Operations Research is a branch of Mathematics
which models and solves real life problems so as
to make optimum decisions.

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 OPERATIONS RESEARCH
• Linear Programming (Optimization)
• Nonlinear Programming (Optimization)
• Queuing Theory
• Reliability Theory
• Game Theory
• Network Analysis
• Inventory
COMPONENTS OF AN
OPTIMIZATION MODEL

Decision variables
Objective function
Constraints
GENERAL OPTIMIZATION PROBLEM
Minimize (Maximize) f (X)
where f: Rn  R, X = (x1, x2, x3 …xn)
s.t. XS  Rn where S is defined by
gk (X)  0, k=1,2, … m
hj (X) = 0, j=1,2, … l
ai  xi  bi
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 CLASSIFICATION
Linear Programming Problems (LPP)
Nonlinear Programming Problems (NLPP)
Unconstrained Optimization Problems
Constrained Optimization Problems
 CLASSIFICATION BASED ON
TYPE OF DECISION VARIABLES
Dynamic Programming
Geometric Programming
Integer Programming
Quadratic Programming
Separable Programming
Stochastic Programming
 CLASSIFICATION BASED ON
OBJECTIVE FUNCTION
Multi–objective Programming
Goal Programming
Multi–level Programming
• Fuzzy Programming
• Stochastic Programming
• Evolutionary Computations
– Genetic Algorithms
– Memetic Algorithms
– Differential Evolutions
– Evolutionary Strategies
• Swarm Intelligence
– Particle Swarm Optimization
– Ant Colony Optimization
– Bacterial Foraging
– Artificial Bee Colony
 DEF. OF LINEAR PROGRAMMING
Min / Max f(x1, x2, …xn) = c1x1 + c2x2 +… cnxn
Subject to a11x1 + a12x2 + ………..a1nxn < b1
a21x1 + a22x2 + ………..a2nxn < b2
……………………………………….
am1x1 + am2x2 + ……....amnxn < bm
xi > 0 , i = 1, 2, ………….n
m  n where m, n are positive integers
aij , ci and bj are real numbers
 IN MATRIX NOTATION
Min / Max CtX
Subject to AX < B
X>0
Feasible solution:-
Any vector X satisfying all constraints
Feasible region:-
The set of all feasible solutions
Optimal solution:-
The best feasible solution
Optimum value:-
The value of the objective function at the optimal solution
MODELLING REAL LIFE PROBLEMS AS
LINEAR PROGRAMMING PROBLEMS
 Ex 1: Profit maximization problem
A company wishes to produce a product for which it has
three models to choose from. The labour and material
data for each model is given. Supply of raw material is
200 kg and the available manpower is 150 hours.
Formulate the model to determine the daily production
to maximize profit.
 Model A Model B Model C
Labour (Hours/unit) 7 3 6

Material (Kg/unit) 4 4 5

Profit (Rs./unit) 4 2 3
 STEP 1: Identify decision variables
Let
x1 = no. of units to be produced of model A
x2 = no. of units to be produced of model B
x3 = no. of units to be produced of model C
STEP 2: Identify constraints

7x1 + 3x2 + 6x3 < 150

4x1 + 4x2 + 5x3 < 200
All xi > 0 and integers
STEP 3: Identify objective function
Maximize profit z = 4x1 + 2x2 + 3x3
 Ex 2: Work – scheduling Problem
A post office requires different number of full time
employees on different days of the week.
The daily requirement is given in the table. Union
rules state that each full time employee must
work for five consecutive days and then receive
two days off.
Formulate an LP so that the post office can
minimize the number of full time employees who
must be hired.
 Days of the week No. of full-time
employees required
1 = Monday 17
2 = Tuesday 13
3 = Wednesday 15
4 = Thursday 19
5 = Friday 14
6 = Saturday 16
7 = Sunday 11
 DECISION VARIABLES
Let xi = no. of employees beginning work on day i,
for i=1, 2, ….7
All xi > 0 for i = 1, 2, 3, 4, 5, 6, 7.
And all xi are integers
 OBJECTIVE FUNCTION

minimize
x 1 + x 2 + x3 + x 4 + x 5 + x 6 + x 7
 CONSTRAINTS
Constraints for Monday, Tuesday, …
x1 + x4 + x5 + x6 + x7 > 17
x1 + x2 + x5 + x6 + x7 > 13
x1 + x2 + x3 + x6 + x7 > 15
x1 + x2 + x3 + x4 + x7 > 19
x1 + x2 + x3 + x4 + x5 > 14
x2 + x3 + x4 + x5 + x6 > 16
x3 + x4 + x5 + x6 + x7 > 11
 Ex 3: Industrial Problem

A company has 3 operational departments weaving,

processing and packing with the capacity to
produce 3 different types of clothes that are suiting,
shirting and woolen yielding with the profit of Rs. 2,
Rs. 4 and Rs. 3 per meters respectively. 1 m suiting
requires 3 mins in weaving 2 mins in processing and
1 min in packing.
Similarly 1 m of shirting requires 4 min in weaving 1
min in processing and 3 min in packing while 1m of
woolen requires 3 min in each department. In a
week total run time of each department is 60, 40
and 80 hours for weaving, processing and packing
department respectively. Formulate a LPP to find
the product to maximize the profit.
 Suiting Shirting Woolens Available time
Weaving 3 4 3 3600
Processing 2 1 3 2400
Packaging 1 3 3 4800
Profit 2 4 3
Let x1 be the number of units (meters) of suiting
x2 be the number of units (meters) of shirting
x3 be the number of units (meters) of woolen
Maximize Z = 2x1 + 4x2 + 3x3
Subject to: 3x1 + 4x2 + 3x3 ≤ 3600
2x1 + x2 + 3x3 ≤ 2400
x1 + 3x2 + 3x3 ≤ 4800
x1 ≥ 0, x2 ≥ 0, x3 ≥ 0
 Ex 4: Advertising
The owner of “Win-win Sports” wishes to
determine how many advertisements to place
in monthly magazines A, B and C. His objective
is to advertise in such a way that total
exposures to principal buyers of expensive
sports goods is maximized. Percentages of
readers for each magazine are known.
 Exposure in any particular magazine is the
number of advertisements placed, multiplied by
number of principal buyers.This data may be used:
Magazine A Magazine B Magazine C
Readers 1 lakh 0.6 lakh 0.4 lakh
Principal buyers 20 % 15 % 8%
Cost per advt. (Rs.) 8000 6000 5000
The budgeted amount is at most Rs. 1 lakh for
the advertisement. The owner has already
decided that magazine A should have no more
than 15 advertisements and that B and C have
at least 80 advertisements. Formulate an LPP.
Let x1, x2 and x3 be no. of insertions in magazines
A, B and C, resp.
Maximize total exposure
= (20% of 1,00,000)x1 + (15% of 60,000)x2
+ (8% of 40,000)x3
= 20000x1 + 9000x2 + 3200x3
s.t: 8000x1 + 6000x2 + 5000x3 < 100000 (budgeting)
x1 < 15, x2 > 80, x3 > 80 (advertising)
x1 > 0, x2 > 0, x3 > 0 and integers
 Ex 5: Portfolio optimization
Assume you have inherited Rs. 1 lakh from your father
that can be invested in two kinds of stock portfolios,
with the maximum investment allowed in either
portfolio set as Rs. 75,000/-. The first portfolio has an
average rate of return of 10 %, whereas the second
has 20%. In terms of risk factors the first and second
portfolios have a risk rating of 4 and 9, resp. on a scale
of 0 to 10.
Since you wish to maximize your returns, you
will not accept an average rate of return
below 12 % or a risk factor above 6. Hence you
face the important question… How much
should you invest in each portfolios?
Formulate this as an LPP.
 Maximize 0.1x1 + 0.2x2
subject to x1 + x2 < 1,00,000
x1 < 75,000
x2 < 75,000
0.1x1 + 0.2x2 > 0.12(x1 + x2)
4x1 +9x2 < 6 (x1 + x2)
x1 > 0, x2 > 0.
 Exercise 1: Profit maximization
A company produces two types of hats. Each hat of the
first type requires twice as much labour as the second
type. If all hats are of the second type only, the company
can produce a total of 500 hats a day. The market limits
the daily sales of the first and second type as 150 and 250
hats. Assuming that the profits per hat are Rs. 8/- for first
type and Rs. 5/- for second type, formulate the problem as
a LPP in order to determine the maximize profit.
 Exercise 2: Trim Loss
Rolls of paper having a fixed length and width of
180 cm are being manufactured by a paper mill.
These rolls have to be cut so as to satisfy the
following demand. Obtain an LP to determine the
cutting patterns, so that the demand is satisfied
and wastage is minimum.
Width 80 cm 45 cm 27 cm
No. of Rolls 200 120 130
Hint: Various alternative cutting patterns are:
Feasible patterns of No. of Wastage Rolls obtained for each roll of
cutting rolls cut per roll width 80 cm, 45 cm and 27 cm
80 + 80 x1 20 2 - -
80 + 45 + 45 x2 10 1 2 -
80 + 45 + 27 + 27 x3 1 1 1 2
80 + 27 + 27 + 27 x4 19 1 - 3
45 + 45 + 45 + 45 x5 0 - 4 -
45 + 45 + 45 + 27 x6 18 - 3 1
45+45+27+27+27 x7 9 - 2 3
45+27+27+27+27+27 x8 0 - 1 5
27+27+27+27+27 +27 x9 18 - - 6
Min 20x1 + 10x2 + x3 + 19x4 + 18x6 + 9x7 + 18x9
subject to
2x1 + x2 + x3 + x4 = 200 (80 cm rolls)
2x2+x3+4x5+3x6+2x7+x8 = 120 (45 cm rolls)
2x3+3x4+x6+3x7+5x8+6x9 = 130 (27 cm rolls)
xi > 0, where i=1, 2, 3, …. 9
 References
1. Mohan, C. and Kusum Deep. Optimization Techniques, New Age
International, New Delhi, India, 2009.
2. Mittal K. V. & Mohan, C.. Optimization Methods in Operations
Research and System Analysis, New Age International, New
Delhi, India 3rd Edition 1996.
3. Rao, S. S. : “Engineering Optimization Theory and Practice”,
Third Edition, New Age International Private Ltd., New Delhi,
1996.
4. Taha, H., Operations Research: An Introduction, Macmillan 1997
(6th Edition).
5. Gass, S.I., Linear Programming, McGraw-Hill and Kogakusha,
1985 (5th Edition).
Thank You

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