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Problem definition Model construction Model solution Model validation Result implementation
Features The use of Scientific methods to provide criteria for decisions regarding man, machine and systems involving repetitive operations
Models
Definition
Scope
Phases
Tools Linear Programming Inventory Control methods Goal programming Queuing model Transportation model
Defence operations Industry Planning Agriculture Hospitals Transport Research and development
Optimum utilisation of productive resources Quality of decision improved Practically applicable solutions
General Canonical
Advantages
Forms Development of a production schedule Establishment of an investment portfolio Selection of the product mix in a factory
Assumptions
Linear Programming
Examples
Limitations In real life situations constraints and objective function are not linear No guarantee of integer valued solution It deals with single objective
Requirements Decision variables and their relationship Well defined objective function Existence of alternative course of action Non-negative conditions on decision variables
An LPP can be solved graphically when there are two decision variables
Analysis
Steps
1. Formulate 2. Plot
3. Identify 4. Determine
A unique optimum solution Multiple optimal solution An unbounded solution Infeasible solution
5. Identify
All constraints are equations All variables are non-negative The objective function is of maximisation type
Includes Characteristics
Simplex Method
Equation Given by
Solution of LPP when constant is large Two phase method Maximise or minimise Z= subject to i=1,2,m and 0, j=1,2,.n 0, i=1,2.m
Steps Break the last row into two rows Follow step 1 through 4 of simplex method Artificial variable ceases to be basic variable Delete the last row in the table Arrive at optimal solution
Importance of Sensitivity Analysis When input > output; System=Disequilibrium When input=output; System=Equilibrium
Economic Interpretation
Importance
Guidelines
Maximisation in the primal becomes minimisation in the dual and vice-versa. () in the primal becomes () in the dual and vice-versa. Co-efficients in the objective function of the primal become constants in the objective function of the dual. Constants in the constraints of the primal become coefficients in the constraints of the dual. If primal has n variables and m constraints then dual will have m variables and n constraints. Variables in both primal and dual are non-negative.
Matrix minimum method or least cost method Vogels approximation Maturity method period Determine the net evaluations for the Maturity period non-basic variables (empty cells) Determine the Maturity period entering variable Determine the leaving variable Compute a better basic feasible solution Repeat steps 1 and 4 until an optimum solution has been obtained
Moving towards optimality Step 4 Modified distribution method MODI / method / U-V method
Step 5
Subject to the constraints 2. Only one other city may be reached from a specific city I,
j=1, 2, 3,.n
3. Only one other city can initiate a direct arc to a specified city j, thus
4.
Given the kth directed arc ends at city j, (k+1)th directed arc must start at same city j, thus Travelling Salesman problem Forms Constraints of the problem Routing problem
Infeasible Assignment
Unbalanced AP
Classification
Step 0: If the master list is not empty, choose an LPP Step 1: Obtain the optimum solution Step 2: If the obtained optimum solution satisfies the integer constraints then record it Step 3: Select any variable that does not have an integer value in the obtained optimum solution to the LPP, chosen in step 0. Add two LPPs to the master list
1: 2: 3: 4: 5: 6: 7: 8:
Convert minimisation IPP to maximisation Introduce slack or surplus variables Test integrality of optimum solution Examine constraint equation Express negative fractions Find Gomorian constraint Start a new equation set Arrive at new optimum solution
Constituents of queuing system Operating characteristics of a queuing system Characteristics of arrival pattern Parameters of service facility
The arrangement of service facilities The distribution of service times Servers behaviour Management policies
Dynamic Queuing Discipline Service in Random Order [SIRO] Priority service Pre-emptive Priority
Static Queuing Discipline First In First Out [FIFO] Last In First Out [LIFO]
Limitations
Applications
Models
Classic queuing is too mathematically restrictive to be able to model all real world situations The underlying assumptions of the theory do not always hold well in the real world
Traffic control Determining the sequence of computer operations Predicting computer performance Health services Airport traffic, airline ticket sales Layout of manufacturing systems Telecommunications
Single server-single queue Single server-several queues Several servers- Single queue Several servers- several queues Service facilities in a series Single Channel Models Multiple Service Channels Erlang Family of Distribution of Service Times
Determines
Queuing Discipline
The efficiency factor F is defined as 1. 2. 3. 4. 5. 6. Find mean service and running time Compute the service factor Select the corresponding table Locate service factor value Read values for number of service crews Calculate other measures
Simulation
Sample size Use of Random Number Tables
Simulation is called experimentation in the management laboratory. While dealing with business problems simulation is often referred to as Monte Carlo Analysis
Procedure
It is convenient to use a table of random numbers prepared on the basis of some physical phenomenon The grouping of random numbers in the table has no significance Depending upon the number of digits required the random numbers will be chosen in sets of single or two digit numbers
The first step involves coding the data that is you assign random numbers to the variables Then you identify the relationship between the variables and run the simulation to get the results
Definition
Simulation in networks
Limitations
It generates a way of evaluating solutions but it does not generate the solution techniques This model does not produce answers by itself Not all situations can be evaluated using simulation It is a time consuming exercise
Planning PERT CPM Phases of PERT and CPM Scheduling Steps Estimate the duration of activities Prepare a time chart showing the start and finish times for each activity use time chart to Calculate the project duration Identify the critical path Carry out resource smoothing exercises
Events Activities