Operation Research Techniques

Explains about different operation research techniques or tools

1. OR TECHINQUES or TOOLS Presented by Lijin Mathew B1 MBA

2. Techniques Linear Programming Queuing Theory Inventory Control Method Net Work Analysis Replacement Problems Sequencing Integer Programming Assignment Problems Assignment Problems Transportation Problems Decision Theory and Game Theory Markov Analysis Simulation Dynamic Programming Goal Programming Symbolic Logic

3. Linear Programming Linear programming technique is used to find solution for optimizing a given objective objectives may be maximizing profit, minimizing cost, etc This technique is used to allocate scare resources in an optimum manner in problems of scheduling ,product mix, etc

4. Queuing Theory It is also called waiting line theory This theory deals with the situations in which queue is formed eg : customers waiting for service, machines waiting for repairmen, aircraft waiting for landing, etc It aims at minimizing the overall cost due to servicing and waiting This technique is used to add new facilities to reduce the cost of waiting time

5. Inventory Control Method It aims at optimizing inventory levels Inventory planning answers two question how much to buy and when to buy

6. Net work Analysis Net work are very popular and widely used quantitative technique This model helps the managers to plan, schedule, monitor and control large projects, such as construction of building, making a ship, etc It helps the managers to determine total project completion time, probability that a project will be completed by a certain date, least cost way of shortening total project completion time, etc Program Evaluation Review Technique(PERT), Critical Path Method(CPM), Gantt chart are coming under net work analysis

7. Replacement Problems It concerned with the situations arise when some items such as men, machine, electric bulbs, etc require replacement due to their decreasing efficiency, failure or down It solves the replacement problems such as decisions regarding replacement in cost, return, etc.

8. Sequencing This model developed to find a sequence for processing a job, so the total elapsed time for all the jobs will be minimum It also helps to resolve the conflict between the objectives of maximizing machine utilization and complying with predetermined delivery dates

9. Integer Programming Integer means complete or whole number One Important limitation of linear programming model is the assumption that all the variables can take any value, may be decimal or fraction When figures are rounded off the solution will be poor By using integer programming algorithm a series of continuous linear programming problem solved in such a way that the solution containing unacceptable non-integer value are ruled out and the best higher programming solution is obtained

10. Assignment Problems Special type of linear programming it deals with allocating the various resources to various activities in such a way that the time or cost involved is to be minimized; sale or profit is maximized

11. Transportation Problems It deals with transportation of a product from a number of sources with limited supplies to a number of destinations with specified demands at the minimum transportation cost Aims to minimize the transportation cost

12. Decision Theories and Game Theories Decision theory is primarily concerned with decision making under the conditions of risk and uncertainty Game theory is concerned with decision making under conflict The decision maker is to identify the best for situation In decision theory we can use decision tables and decision trees, which can be used to graphically represent and solve decision making problem The game theory assist the decision maker to have the knowledge of courses of action available to his opponent

13. Markov Analysis Markov analysis permits one to predict changes over time when information about the behavior of a system is known It is based on probability theories It allows a manager to determine future market share both in the short run and long run If current situation is known, along with the propensity of the system to change over time, it is possible to use Markov analysis to predict future conditions

14. Simulation All real life problems cannot be stated in mathematical form Simulation is a general technique that allows us to develop a dynamic model that acts like a real process Developing a good simulation model is difficult but simulation allows us to solve problems that are difficult or impossible to solve otherwise

15. Dynamic Programming It is introduced when the problems occur which have multi faced solutions Here all possible results are analyzed and the best solution is selected For solving each practical problem of specific dynamic programming, separate algorithm has to be developed in dynamic programming computational work is reduced considerably

16. Goal Programming In linear programming it focus on single objective and rest are taken as less important In real practice there may be number of important objectives Charles and Cooper developed “Goal programming in 1961” In this several objective functions are considered, Each objective function has a fixed value called “target” Goal Programming model is used to minimize deviations from these “targets”

17. Symbolic Logic Symbols are more meaningful and accurate The whole problem is converted into algebraic equations and propositions Business problems are not commonly converted into symbols, but calculations are done on computers 15

18. Techniques Linear Programming - solution for optimizing a given objective Queuing Theory – to minimize the cost for queue Inventory Control Method – optimizing inventory levels, when to buy and how much to buy Net Work Analysis - used to predict work completion time of large project Replacement Problems – helps to take decisions regarding replacement Sequencing – develop a sequence of process to do a job, minimize time * Integer Programming – unacceptable non integer values are ruled out Assignment Problems – allocating various resources to various activities Transportation Problems – to minimize the transportation cost of a product

19. Cont …… Decision Theory and Game Theory – decision making under risk and uncertainty, in conflict situations respectively Markov Analysis – allows predict future market Simulation – developing dynamic model to solve real life problems Dynamic Programming – multi faced solutions, selecting best one * Goal Programming- several objectives “target” minimize deviation from it Symbolic Logic – using symbols, problem is converted into algebraic equations and propositions

20. Thank You…………………..