Operations Research

What we expect to learn

Formulate managerial problems to optimize decision making
To be able to apply correct OR-techniques to solve such a
problem

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Operations Research
Course coverage
I. Linear programming
II. Sensitivity analysis
III. Special cases of LPP
IV. Multicriteria decision making
V. Integer programming
VI. Network flow
VII. Queuing theory
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Operations Research
Linear programming

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Caselet: Indian House works Limited.

QUESTION 1:
Do you agree with the view of the new trainee ?
Support your decision.
What are the decision variables?

What is the objective? objective function?

What are the Constraints?
What do you mean by nonnegativity restrictions?
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Diet Problem
The Central Canteen at Manipal Hospital (KMC) has to prepare
at least 800 kg of a special nutrition-rich dish for surgeons
every day. This special dish is a mixture of corn and soya bean
paste, which in turn contains some proportions of protein and
fiber in them. While corn contains 9% protein and 2% fiber,
soya bean paste contains 60% protein and 6% fiber. It is also
known that corn and soya bean paste cost Rs. 30 and Rs. 90
per kg respectively. The dietary requirements of the special
dish are that it must contain at least 30% protein and at most
5% fiber.
What would be the mix so that the canteen can minimize
cost?
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Optimization Techniques in Graphical

method
End point enumeration method:

Isoprofit (cost) function line:

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 Binding Constraint
Non-binding and
Redundant constraint
Exercise 1:
Max Z = 40x + 50y subject to
4x + 3y 24
4x+5y 40
x 4
y 6, x, y 0.
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Graphical solution to Exercise 1.

What is the solution space?
What is the Feasibility region?

G(0,8)
Variable y
A(0,6)

Feasible solution?

B(3/2, 6)

Optimal solution?
C(4, 8/3)

(0, 0)

D(4,0)

E(6,0)
Variable x
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F(10,0)

Extreme Point Theorem:

If an LPP has a feasible region, then the optimal
solution lies at one or more of the extreme points of
the LPP. It never lies in the interior region.

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Principle of convexity
A convex region is one in which all the points on a
line joining any two points within the region, also lie
within the same region.

Realization:
If an LPP has a feasible region, then it is always
convex
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 Multiple Optimal solution

Problem 1:
Max Z= 8x +16y
Subject to
x + y 200
y 125
3x +6y 900, x, y 0.

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Infeasibility:

Problem 2:
Max Z= 20x + 30y
s.t
2x + y 40, 4x - y 20, x 30, x, y positive.
Unboundedness:

Problem 3:
Max Z = 10x +20y
2x +4y 16
x + 5y 15
x, y 0

s.t

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Class Exercise:
A retired person wants to invest an amount of Rs 30000 in
fixed income securities. His broker recommends investing in
two bonds: Bond L&T yielding 9.5% and bond ABC yielding
10%. After some consideration he decides to invest at most Rs
12000 in Bond ABC and at least Rs 6000 in Bond L&T. He also
wants the amount invested in Bond L&T to be at least equal to
the investment in the other Bond. What the broker
recommended if the investor wants to maximize his ROI?

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Scheduling Problem
A city hospital has the following minimal daily requirements
for nurses. Nurses report at the hospital at the beginning of
each period and work for 8 consecutive hours. The hospital
wants to determine the minimum number of nurses to be
employed so that there will be a sufficient number of nurses
available for each period.
PERIOD

CLOCK TIME (24-HOUR DAY)

MINIMUM NUMBER OF
NURSES REQUIRED

6 a.m.10 a.m.

10 a.m.2 p.m.

2 p.m.6 p.m.

15

6 p.m.10 p.m.

10 p.m.2 a.m.

20

2 a.m.6 a.m.

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