MANAGEMENT SCIENCE 2.

Integer Linear Programming - type of optimization problem where

the variables are integer values and the objective function and
INTRODUCTION: equations are linear.
CHAPTER 1: Linear Programming 3. Goal Programming - a specific methodology for coping with such
CHAPTER 2: Linear Programing: GraphicSolution situations, usually in linear programming.
CHAPTER 3: LP | Slack and Surplus Variable 4. Distribution Models - outlines how goods make their way from the
CHAPTER 4: LP using Simplex Method manufacturer to a consumer outlet.
Distribution Problems:
What is Management Science? > Problem of Transportation
According to Turban and Meridith, management science is applying > Problem of Assignment
analytical principles, procedures, and instruments to problems concerning 5. Non Linear Programming - Models used in this field of
device processes in order to offer optimal answers to the problems for those management science are close to linear programming models; but
in charge of the processes. there is a major distinction between them: nonlinear models include
nonlinear objective function and/or other nonlinear constraints.
Major Characteristics of Management Science 6. Network Models - describes patterns of flow in a connected system,
1. A main focus on decision making by the managers. where the flow might involve material, people, or funds.
2. Usage of the analytical model to the decision-making phase. 7. Project Management - focuses on planning and organizing a project
3. Examining the condition of the judgment from a specific viewpoint and its resources.
4. Using methods and expertise from multiple disciplines. 8. Inventory Models - deal with the time at which orders for certain
5. A dependency on the mathematical models of shape. goods are to be placed, and the quantity of the order.
6. Computer widespread use. 9. Waiting Line Models - based on mathematical theories and deals
with the problems arising due to flow of customers towards the
Decision Making service facility.
- a method of deciding between two or more possible courses of 10. Simulation - a programming experience with a simulation model
action necessary to accomplish a particular goal. intended to explain and measure the actions of the real system-the
- It is a systematic process and can be described by: machines software simulates the actual system.
A. defining the problem 11. Decision Analysis - a formalized approach to making optimal
B. searching for alternative courses of action choices under conditions of uncertainty.
C. evaluating alternatives 12. Theory of Games - this field is an expansion of the decision-making
D. choosing one alternative of two or more decision-makers to the circumstances.
13. Forecasting - support the manager predicting future elements of the
Models and Modelling business operation .
Models - is an abstract mathematical representation of a problem situation. 14. Multicriteria Decision Making - a structured process for evaluating
Modeling - the application of scientific methods to complex organizational options with conflicting criteria and choosing the best solution.
problems. 15. Markov Analysis - this approach can be used for explaining a
Management Science Techniques: system’s actions in a complex scenario (system progression over
1. Linear Programming - one of management science's best-known time).
tools. This strategy describes the problem as maximizing a linear 16. Dynamic Programming - a mathematical technique for solving
function (minimizing) with reference to the set of linear constraints. certain types of sequential decision problems.
CHAPTER 1: Linear Programing A simple procedure for plotting this line is to determine two points that are
Linear Programming on the line and then draw a straight line through the points. One point can be
● It is a computer science technique to address issues of optimization found by letting x/x1 = 0.
process.
● The word "linear" implies the linearity of all mathematical A second point can be found by letting x2/y = 0
relationships within a model.
● The standard model is the set of linear equations and/or inequalities Step 2: Combining the constraints
(called constraints) and the linear objective function (to be - If all of the restrictions are drawn independently, they must be placed
maximized or minimized). together in a single graph. Practically, this final graph may be built by
● The constraints of non-negativity are also included in the model. systematic addition of the individual feasible areas from the
● The manager's aim is to find the right solution for the highest beginning the ultimate group of the feasible area and example is
objective function value seen in figure 2.5

SUMMARY OF LP MODEL FORMULATION STEPS CHAPTER 3: LP | SLACK AND SURPLUS VARIABLE

● STEP 1: DEFINE THE DECISION VARIABLES.
Decision variables are mathematical symbols that represent levels of Slack Variable
activity. ● There is a standard procedure for transforming inequality constraints
● STEP 2: DEFINE THE OBJECTIVE FUNCTION. into equations. This transformation is achieved by adding a new
Objective function is a linear relationship that reflects the objective of an variable, called a slack variable, to each constraint.
operation. ● represents unused resources.
● STEP 3: DEFINE THE CONSTRAINTS.
A model constraint is a linear relationship that represents a restriction on Surplus Variable
decision making. ● It is subtracted from a constraint to convert ≥ to an equation (=).
Nonnegativity constraints restrict the decision variables to zero or positive ● Represents an excess above a constraint requirement level.
values.
CHAPTER 4: LP | Simplex Method
CHAPTER 2: Linear Programing: Graphic Solution SIMPLEX METHOD
When a linear programming problem involves two decision variables, it can ● The simplex method is a procedure involving a set of mathematical
be graphically overcome. steps to solve linear programming problems.
Step 1: Graphing a Feasible Area ● ´developed by George Dantzig in 1946. It provides a systematic way
- Restriction (including non-negativity constraints) can be drawn very of examining the vertices of the feasible region to determine the
easily; because all constraints have to be met concurrently, the optimal value of the objective function.
mixture of drawn constraints defines the area that is feasible. Each ● ´The simplex method is actually an algorithm (or a set of instructions)
point from the feasible area suits the feasible solution. with which we examine corner points in a methodical fashion until we
arrive at the best solution—highest profit or lowest cost.
The first step in drawing the graph of the model is to plot the constraints Cj = coefficient of the objective function
on the graph. This is done by treating both constraints as equations (or BV = basic variables
straight lines) and plotting each line on the graph. CBi = coefficient of the basic variables