MODELLING SIMULATION & OPERATION RESEARCH

INTRODUCTION TO O.R. WHAT IS O.R.? NATURE AND IMPORTANT FEATURES OF O.R. 1 DECISION MAKING 2 SCIENTIFIC APPROACH 3 OBJECTIVE 4 TEAM APPROACH

PHASES OF O.R. STUDY

THERE ARE THREE PHASES OF O.R. STUDY. THEY ARE 1) THE JUDGEMENT PHASE 2) THE RESEARCH PHASE , AND 3) THE ACTION PHASE. THE RESEARCH PHASE IS THE LONGEST AND THE LARGEST. THE REMAINING TWO ARE VERY IMPORTANT SINCE THEY PROVIDE THE BASIS AND THE IMPLEMENTATION OF THE RESEARCH PHASE. 1) THE JUDGEMENT PHASE INCLUDES 1) THE DETERMINATION OF THE PROBLEM 2) THE ESTABLISHMENT OF THE OBJECTIVES AND RELATED VALUES RELATED TO THE OPERATION, AND 3) THE DETERMINATION OF SUITABLE MEASURES OF EFFECTIVENESS.

PHASES OF O.R. STUDY

2) THE RESEARCH PHASE UTILIZES 1) OBSERVATION AND DATA COLLECTION FOR BETTER INSIGHT OF THE PROBLEM 2) FORMULATION OF THE HYPOTHESIS AND MODELS 3) OBSERVATION AND EXPERIMENTATION TO TEST THE HYPOTHESIS ON THE BASIS OF DATA. 4) PREDICTION OF VARIOUS RESULTS AND GENERALIZATION. 3) THE ACTION PHASE : IN THIS STAGE WE MAKE RECOMMENDATIONS AND SUGGESTIONS TO BE IMPLEMENTED . THIS PHASE IS PERFORMED IN THE PRESENCE OF O.R. EXPERTS. THEY PERFORM THE SENSITIVITY ANALYSIS. THIS LEADS TO FURTHER IMPROVEMENT AND OPENS MANY DIFFERENT DIRECTIONS.

METHODOLOGY OF O.R.

1 FORMULTION OF PROBLEM 2 DETERMINE THE ASSUMPTIONS & FORMULATE 3 ACQUIRE THE INPUT DATA 4 SOLVE THE MODEL 5 VALIDATE THE MODEL/ TEST THE MODEL 6 SENSITIVITY ANALYSIS/ ANALYSE THE RESULTS

MODELS IN O.R.
MODEL BUILDING. (A) PHYSICAL MODELS ICONIC MODELS ANALOGUE MODELS

ICONIC MODELS---SCALED-UP/DOWN VERSION , PROPOSED BUILDING, MOLECULAR STRUCTURE, MODEL OF SOLAR SYSTEM ANALOGUE MODELS--- EQUIVALENT USE OF ONE SET OF PROPERTIES TO REPRESENT ANOTHER SET. E.G. AN ELECTRICAL NETWORK SYSTEM TO SHOW ACTUAL POSITION OF MOVING OBJECT. BAROMETER SHOWS ATMOSPHERIC PRESSURE. ANALOGUE MODELS ARE EASY TO CONSTRUCT BUT LESS ACCURATE

(B) SYMBOLIC MODELS

SYMBOLIC MODELS

ABSTRACT MODELS MATHEMATICAL FORMULATION OF THE REAL LIFE SITUATION. MATHEMATICAL METHODS ARE APPLIED TO FIND SOLUTION---SENSITIVITY ANALYSIS TWO TYPES---- 1 ) DETERMINISTIC AND 2) PROBABILISTIC COMPONENTS ---- GIVEN SET OF VARIABLES, RESOURCES, CONSTRAINTS, DECISION VARIABLES. AND CONSTRUCTION OF AN OBJECTIVE FUNCTION ---- MODEL, METHODS AND SOLUTION. OBTAINING THE DATA FOR INPUT PROCESS.---- GIGO SITUATION SOLUTION OF A MODEL: FEASIBILITY STUDY ACCEPTANCE--- REJECTION MODEL VALIDATION. This completes first unit.

UNIT II Linear Programming Problem part 1 Formulation of Symbolic Models. Ex-1 Product mix-- maximize profit on sale. Raw Material Labor Hours Profit/unit Product 1 2 kg 4 40 Product 2 3 kg 3 35 Available Units 60 96 Ex-2 It is recommended to spread at least 4800 kg phosphate and not less than 7200 kg nitrogen. Two sources A and B. Mix A Mix B Nitrogen 80 50 Phosphate 20 50 find number of units of mix A and mix B Cost 40 24 Cost Minimization

LPP 2

Add one more constraint to ex-1. 4 hours and 3.5 hours for packing are required for product 1 and product 2. from total 105 available hours. Some typical Problems and formulation: Ex-3 Travel agent s problem package determination. Charter trip for 200 persons only.[ This is manageable.] Aircraft hiring charges Rs. 2,00,000 At least 10% of packages must be deluxe type. At least 35 % but not more than 70 % of standard type. At least 30% must be of economy type.

LPP-3

Maximum number of deluxe packages is restricted to 60. Hotel accommodation requires at least 120 of packages should be deluxe and standard type together. Tour Plan Price Hotel Price Meal + other expences
Deluxe Standard Economy 10000 7000 6500 3000 2200 1900 4750 2500 2200

LPP -4

Ex-4 Three products A,B, and C using two type of raw materials I and II. Requirement per unit of product Raw material A B C stock I 3 4 5 5000 II 5 3 5 7500 Profit/unit 50 50 80 Labor time for each unit of A is twice as that of product B And three times that of product C. The entire labor force can produce the equivalent of 3000 units. Minimum demand for the product A , B and C are 600, 650, and 500. The number of units produced must be

Lpp -5

cont d

Must be in the ratio 2: 3 : 4. Formulate the problem. ( Let x1 , x2 , and x3 be the output for the products.) ASSIGNMENT PROBLEMS 1) ALPHA COMPANY HAS STARTED PRODUCTION OF A SPECIAL LIQUID FOR OLD PERSONS. IT HAS FOUR INGREDIENTS A1, B1, C1, AND D1. INGREDIENT SUPPLY/ K.G. COST/ K.G. A1 20 40 B1 30 60 C1 40 80 D1 50 100

ASSIGNMENT

BLENDING CONSTRAINTS ARE AS FOLLOWS. A1 MUST BE ATLEAST 45 % OF THE TOTAL QUANTITY. A1 CANNOT EXCEED 60 % OF THE TOTAL QUANTITY. B1 AND C1 MUST BE ATLEAST 10 % OF THE MIXTURE . COMBINED % OF B1 AND C1 CANNOT EXCEED 25 % OF THE TOTAL QUANTITY. D1 CANNOT BE MORE THAN 50 % OF THE TOTAL QUANTITY. ATLEAST 60 K.G. OF THE LIQUID MUST BE MADE. FORMULATE THE PROBLEM TO MINIMISE THE TOTAL PPRODUCTION COST.

ASSIGNMENT EX-2 It is recommended that the total amount of 2,00,000 must be invested in two types of securities: bond xx, paying a dividend of 10 % p.a., and stock yy, paying 8 % dividend. It is instructed that not more than 50,000 can be invested in stock yy, while the amount invested in bond xx must be at least twice the amount invested in stock yy. How much should be invested in each security to maximize the return on investment? Ex- 3 Blending Problem

process input Crude 1 1 2 Max Available 6 5 250 Crude 2 4 6 200 6 output Gasoline A Gasoline B 9

5 5 market Demand market 150 Demand 130 Profit 40/unit Profit 50/unit

GRAPHICAL SOLUTION -EXAMPLES

1 WHEN AND HOW TO FIND GRAPHICAL SOLUTION? 2 PROCEDURE OF FINDING GRAPHICAL SOLUTION. 3 EXAMPLES. EX-1 MAXIMIZE Z = 15 X1 + 10 X2 S.T. 4X1 + 6X2 e 360, 3X1 + 0 X2 e 180 , 5X2 e 200, X1 , X2 u 0 EX-2 MINIMIZE Z = 3X +2Y S.T. 5X + 2Y u 10, X + Y u 6, X + 4Y u 12, X,Y 0 EX-3 CASES :MAXIMIZE Z= 4X + 5Y S.T. X +Y e 3, 2X + 3Y e 10, X,Y u 0 EX-4 Maximize z = x + y S.T. 5x+10y e 50, x + y u 1, y e 4, x, y u 0 EX-5 MAXIMIZE Z= 3x + 4y, S.T. X -- Y u 0 , -X + 2Y e 2, x, y u 0 EX-6 MAXIMIZE Z = 2X + 3Y, S.T. 2X + 3Y e 6 , X + Y u 4 ; x, y u 0 EX-7 MAXIMIZE Z = 6X + 8Y, S.T. 3X + 4Y u 48 , 2X + 4Y e 60, x, y u 0

DEFINITIONS

DEFINE SLACK, SURPLUS VARIABLES. DISCUSS RELATION BETWEEN NUMBER OF VARIABLES IN THE GIVEN SET OF EQUATIONS. * BASIC AND NON-BASIC VARIABLES. CONCEPT OF SOLUTIONS AND TYPES. * WHY SIMPLEX? * THREE PRE- CONDITIONS. INTRODUCTION TO A.S.V. * AX = b and x = A-1 b SIMPLEX FORMAT.