LECTURE 1

INTRODUCTION TO OPERATIONS RESEARCH I

DR. ANUP KUMAR TRIPATHI

DEPARTMENT OF MINING ENGINEERING

NATIONAL INSTITUTE OF TECHNOLOGY KARNATAKA (NITK)
SURATHKAL − 575025, INDIA

1
 INTRODUCTION TO OPERATIONS RESEARCH I

OPERATIONS RESEARCH MATHEMATICAL MODELS

 The OR decision problem formulation requires identifying three main components:
1. What are the decision alternatives?
2. Under what restrictions are the decisions made?
3. What is an appropriate objective criterion for evaluating the alternatives?

 Principal components of an OR model:

1. Alternatives
2. Restrictions
3. Objective criterion

2
 Alternatives of the decision problem can take the form of unknown variables.
 Variables are used to construct the restrictions and objective criterion in the form of appropriate
mathematical functions.

 The end result is mathematical model relating the variables, constraints and objective function.

 Typical OR model:

 A solution of the model is feasible if it satisfies all the constraints.

 It is optimal if, in addition to being feasible, it yields the best (maximum or minimum) value of the
objective function.

3
 Decision problems must include important intangible factors that may not be readily quantifiable.
 Foremost among these factors is the presence of human element in most decision elements.

 Mathematical aspect of OR should be viewed in the wider context of the decision-making process.

 OR models are designed to optimize a specific objective criterion subject to a set of constraints, however
the quality of the resulting solution depends on the completeness of the model in representing the real
system.

The optimum solution of a model is best only for that model.

If the model happens to represent the real system reasonably well, then its solution is optimum also for the
real situation.

4
SOLVING THE OR MATHEMATICAL MODEL
 In OR, we do not have a single general technique to solve all mathematical models that can arise in
practice.

Instead, the type and complexity of the mathematical model dictate the nature of the solution method.

 In OR mathematical models:
 Decision variables must be integers or continuous.
 Objective and constraint functions can be linear or non-linear.

 Optimization problems posed by these models give rise to a variety of solution methods, each designed to
account for special mathematical properties of the model.

5
 Most prominent and successful of these techniques → linear programming
 All objective and constraint functions linear
 All variables continuous

 Other techniques that deal with other types of mathematical models:

 Integer programming → variables assume integer values
 Dynamic programming → original model decomposed into more manageable sub-problems
 Non-linear programming → functions of the models non-linear
 Network programming → problem modeled as a network

 Above techniques are only a few of the numerous techniques available that are used.

6
 A peculiarity of most OR techniques is that solutions are not generally obtained in formula-like closed
forms.

Instead, they are determined by algorithms.

An algorithm provides fixed computational rules that are applied repetitively to the problem, with each
repetition or iteration moving the solution closer to the optimum.

Because the computations associated with each iteration are typically tedious and voluminous, it is
imperative that these algorithms be executed on the computer.

7
 Some mathematical models can be so complex that it is impossible to solve them by any of the available
optimization algorithms.

In such cases, it can be necessary to abandon the search for optimal solution and simply seek a good
solution using heuristics.

Heuristics generally applies approximate and practical rules based on experience to produce a good
solution to the problem.

Heuristics is much faster to arrive at the solution in comparison to exact optimization algorithm.

8
SIMULATION MODELING AND QUEUING
 Despite impressive advances in mathematical modeling, many real situations still are well beyond the
capabilities of representing systems mathematically.

 Even when it is plausible to formulate a proper mathematical model, the resulting optimization problem
can prove too complex for available solution algorithms.

 Simulation is an alternative approach to modeling complex systems.

It is regarded as the next best thing to observing a real system.

 Queuing models utilize probability and stochastic models to analyze waiting lines.

Simulation estimates the measures of performance by imitating the behavior of the real system.

9
 The main difference between queuing and simulation is that queuing models are purely mathematical, and
hence are subject to specific assumptions that limit their scope of application.

Simulation, on the contrary, is flexible and can be used to analyze practically any queuing situation.

 Simulation computations, though usually simple, are voluminous.

It is unthinkable to run a simulation model without the use of computer.

 Development of simulation models is costly in terms of both time and resources.

Execution of some simulation models, even on the fastest computers, can be slow.

10