Operational Research
APPLIED OPERATIONAL RESEARCH FOR MANAGEMENT
NOTES
1 ANNA UNIVERSITY CHENNAI
UNIT I
INTRODUCTION TO LINEAR
PROGRAMMING (LP)
INTRODUCTION
Operations Research (OR) (a term coined by McClosky and Trefthen in 1940) was a technique that evolved during World War II to effectively use the limited military resources and yet achieve the best possible results in military operations. In essence you can state that OR is a technique that helps achieve best (optimum) results under the given set of limited resources. Over the years, OR has been adapted and used very much in the manufacturing sector towards optimization of resources. That is to use minimum resources to achieve maximum output or profit or revenue.
Learning Objectives
The learning objectives in this unit are
1. To formulate a Linear programming problem (LPP) from set of statements.
2. To solve the LPP using graphical method ( For 2 variables)
3. To solve the LPP using primal simplex method ( For > 2 variables and all 2 variables and all mixed constraints)
5. To solve the LPP using dual simplex method ( For > 2 variables and the solution is infeasible) 6. We also have a look at the effect of changing the values of parameters on the decision variables (Sensitivity Analysis)
Applications of Operations Research in functional areas of Management
The models of OR can be used by economists, statisticians, administrators and technicians both in defence and in business. In general OR can be applied in all the functional areas of Management namely., Accounting, Construction, Facilities Planning, Marketing,
Finance, Personnel, Research and Development and Production.
DBA 1701
NOTES
2 ANNA UNIVERSITY CHENNAI
Accounting
Assigning audit teams effectively
Credit policy analysis
Cash flow planning Developing standard costs
Establishing costs for byproducts
Planning of delinquent account strategy
Construction
Project scheduling,
Monitoring and control
Determination of proper work force
NOTES
1 ANNA UNIVERSITY CHENNAI
UNIT I
INTRODUCTION TO LINEAR
PROGRAMMING (LP)
INTRODUCTION
Operations Research (OR) (a term coined by McClosky and Trefthen in 1940) was a technique that evolved during World War II to effectively use the limited military resources and yet achieve the best possible results in military operations. In essence you can state that OR is a technique that helps achieve best (optimum) results under the given set of limited resources. Over the years, OR has been adapted and used very much in the manufacturing sector towards optimization of resources. That is to use minimum resources to achieve maximum output or profit or revenue.
Learning Objectives
The learning objectives in this unit are
1. To formulate a Linear programming problem (LPP) from set of statements.
2. To solve the LPP using graphical method ( For 2 variables)
3. To solve the LPP using primal simplex method ( For > 2 variables and all 2 variables and all mixed constraints)
5. To solve the LPP using dual simplex method ( For > 2 variables and the solution is infeasible) 6. We also have a look at the effect of changing the values of parameters on the decision variables (Sensitivity Analysis)
Applications of Operations Research in functional areas of Management
The models of OR can be used by economists, statisticians, administrators and technicians both in defence and in business. In general OR can be applied in all the functional areas of Management namely., Accounting, Construction, Facilities Planning, Marketing,
Finance, Personnel, Research and Development and Production.
DBA 1701
NOTES
2 ANNA UNIVERSITY CHENNAI
Accounting
Assigning audit teams effectively
Credit policy analysis
Cash flow planning Developing standard costs
Establishing costs for byproducts
Planning of delinquent account strategy
Construction
Project scheduling,
Monitoring and control
Determination of proper work force