...Linear Programming: Chapter 2 The Simplex Method Operations Research and Financial Engineering Simplex Method An Example. maximize subject to −x1 + 3x2 − 3x3 3x1 − x2 − 2x3 ≤ 7 −2x1 − 4x2 + 4x3 ≤ 3 x1 − 2x3 ≤ 4 −2x1 + 2x2 + x3 ≤ 8 3x1 ≤ 5 x1, x2, x3 ≥ 0. Rewrite with slack variables maximize −x1 + 3x2 − 3x3 ζ = subject to w1 w2 w3 w4 w5 = = = = = 7 3 4 8 5 − + − + − 3x1 + x2 + 2x3 2x1 + 4x2 − 4x3 x1 + 2x3 2x1 − 2x2 − x3 3x1 x1 , x 2 , x 3 , w 1 , w 2 , w 3 , w 4 , w 5 ≥ 0. Notes: • This layout is called a dictionary. • Setting x1 , x2 , and x3 to 0, we can read off the values for the other variables: w1 = 7, w2 = 3, etc. This specific solution is called a dictionary solution. • Dependent variables, on the left, are called basic variables. • Independent variables, on the right, are called nonbasic variables. Dictionary Solution is Feasible maximize −x1 + 3x2 − 3x3 ζ = subject to w1 w2 w3 w4 w5 = = = = = 7 3 4 8 5 − + − + − 3x1 + x2 + 2x3 2x1 + 4x2 − 4x3 x1 + 2x3 2x1 − 2x2 − x3 3x1 x1, x2, x3, w1, w2, w3 w4 w5 ≥ 0. Notes: • All the variables in the current dictionary solution are nonnegative. • Such a solution is called feasible. • The initial dictionary solution need not be feasible—we were just lucky above. Simplex Method—First Iteration • If x2 increases, obj goes up. • How much can x2 increase? Until w4 decreases to zero...
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...OPERATION RESEARCH Credits: 4 SYLLABUS Development Definition, Characteristics and phase of Scientific Method, Types of models. General methods for solving operations research models. Allocation: Introduction to linear programming formulation, graphical solution, Simplex ethod, artificial variable technique, Duality principle. Sensitivity analysis. Transportation Problem Formulation optimal solution. Unbalanced transportation problems, Degeneracy. Assignment problem, Formulation optimal solution, Variation i.e., Non-square (m x n) matrix restrictions. Sequencing Introduction, Terminology, notations and assumptions, problems with n-jobs and two machines, optimal sequence algorithm, problems with n-jobs and three machines, problems with n-jobs and m-machines, graphic solutions. Travelling salesman problem. Replacement Introduction, Replacement of items that deteriorate with time – value of money unchanging and changing, Replacement of items that fail completely. Queuing Models M.M.1 & M.M.S. system cost considerations. Theory of games introduction, Two-person zero-sum games, The Maximum –Minimax principle, Games without saddle points – Mixed Strategies, 2 x n and m x 2 Games – Graphical solutions, Dominance property, Use of L.P. to games, Algebraic solutions to rectangular games. Inventory Introduction, inventory costs, Independent demand systems: Deterministic models – Fixed order size systems – Economic order quantity (EOQ) – Single items, back ordering...
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... @ Written Analysis & Communication @ Soft skills II @ Employability Skills @ IT & MIS 2 Soft skills I @ Computing skills 2 Social Media Marketing @ 2 Legal Aspects of Business 2 Business Strategy 3 Management Control Systems 3 Micro Economics 3 Macro Economics 3 Business Environment 3 Business Ethics & Corporate Governance 2 Quantitative Methods-1 3 Business Research Methods 3 Quantitative Methods-2 3 Core Elective-1 3 Core Elective1 3 Core Elective-2 3 Core Elective2 3 Elective-1 3 Elective-1 3 Elective-2 3 Elective-2 3 Grand Project-1 3 Grand Project-2 3 Principles of Management Basic Building Blocks Autumn Break Executive Skills Organisational Behavior Human Resources Management 3 Marketing Management 1 3 Marketing Management -2 3 Understanding Financial Statements 3 Financial Mgt 3 Operation Management Management Domain 3 3 Basics of Business Planning 2 Electives Credits Autumn Break credit SUMMER INTERNSHIP Course S 1 22 S 2 24 Total Credits 2 8 S 3 21 S 4 20 95 Index Sr.No Subject Faculty Credits 1 Written Analysis & Communication Prof. Dhriti Banerjee @ 2 Soft Skills Prof. Dhriti Banerjee @ 3 Computing Skills Dr...
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...Journal of Business & Economics Research – July 2005 Volume 3, Number 7 Operations Research And Operations Management: From Selective Optimization To System Optimization Jack A. Fuller, (E-mail: jfuller@wvu.edu), West Virginia University C. Lee Martinec, West Virginia University ABSTRACT The focus of this research paper is to discuss the development of Operations Management (OM) and Operations Research (OR) with respect to their use within the organization’s decision-making structure. In addition, the difference in the tools and techniques of the two fields is addressed. The question is raised as to how distinct the two academic fields have become in light of the application of their models to the service industry. Suggestions are made regarding the possibility of incorporating OM/OR models and their output into the decision making structure of the organization towards the goal of “system optimization”. ORIGINS OF OPERATIONS MANAGEMENT AND OPERATIONS RESEARCH A comparison of the origins of operations management and operations research reveals that both are an innovation of the 20th century. The origin of operations research was in England, circa 1937, and has its roots in scientific management, with its first significant applications to military operations in both World War I and World War II. Operations management had its origins in the early factory system, and was more associated with physical production in a factory environment and it too was strongly influenced...
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...PRINCIPLES AND APPLICATIONS OF OPERATIONS RESEARCH * Jayant Rajgopal Department of Industrial Engineering, University of Pittsburgh, Pittsburgh, Pennsylvania ABSTRACT This chapter will provide an overview of Operations Research (O.R.) from the perspective of an industrial engineer. The focus of the chapter is on the basic philosophy behind O.R. and the so-called “O.R. approach” to solving design and operational problems that industrial engineers commonly encounter. In its most basic form, O.R. may be viewed as a scientific approach to solving problems; it abstracts the essential elements of the problem into a model, which is then analyzed to yield an optimal solution for implementation. The mathematical details and the specific techniques used to build and analyze these models can be quite sophisticated and are addressed elsewhere in this handbook; the emphasis of this chapter is on the approach. A brief review of the historical origins of O.R. is followed by a detailed description of its methodology. The chapter concludes with some examples of successful real-world applications of O.R. * Maynard's Industrial Engineering Handbook, 5th Edition, pp. 11.27-11.44. 1.1 INTRODUCTION Although it is a distinct discipline in its own right, Operations Research (O.R.) has also become an integral part of the Industrial Engineering (I.E.) profession. This is hardly a matter of surprise when one considers that they both share many of the same objectives, techniques and application areas...
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...CHAPTER ONE INTRODUCTION OF THE STUDY 1.1 Introduction This chapter introduces the material purchasing factors that impact on food production in hotel industry. The chapter also gives some background information about Ambassadeur Hotel; it outlines the statement of the problem, research objectives, research questions, significance, limitations, assumptions and scope 1.2 Background of the study Material purchase for food products is a function concerned with the search, selection, receipt, storage and final use of a commodity in accordance with the catering industry policy of the establishment. Business strategy literature is replete with evidence that indicate the purchasing methods of a firm have an impact on achieving a firm’s goals. The purchasing function can have an impact on the firm’s ability to achieve its chosen strategies because organizational buying is one of the forces that impact competition (Carr et al. 2000; Landeros and Monczka 1989). As hotels strive to achieve global competitiveness, effective purchasing has assumed great importance. According to Carter and Narasimhan (1996), firms need to recognize the strategic role of purchasing as well as the impacts that it exerts on organizations. The relevance of effectively managing the material resources of an organization to its competitive success has been observed by both practitioners and researchers in purchasing and supply management. As a result, purchasing has evolved in many firms from a low-skill, clerical...
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...PROGRAMME STRUCTURE FOR ISBE (PG) |S No |Subject |Credit | |1. |Business Statistics |3 | |2. |Operations & Optimization Research |3 | |3. |Economics for Managerial Decision Making – II |2 | |4. |Management Information System & KM |2 | |5. |Human Resource Management |2 | |6. |Financial Management |2 | |7. |Executive Communication |6 | |8. |National Economic Planning – I (Presentation Only) |2 | |9. |National Economic Planning - II |2 | BUSINESS STATISTICS (As per University...
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...Op"erations Research This page intentionally left blank Copyright © 2007, 2005 New Age International (P) Ltd., Publishers Published by New Age International (P) Ltd., Publishers All rights reserved. No part of this ebook may be reproduced in any form, by photostat, microfilm, xerography, or any other means, or incorporated into any information retrieval system, electronic or mechanical, without the written permission of the publisher. All inquiries should be emailed to rights@newagepublishers.com ISBN (13) : 978-81-224-2944-2 PUBLISHING FOR ONE WORLD NEW AGE INTERNATIONAL (P) LIMITED, PUBLISHERS 4835/24, Ansari Road, Daryaganj, New Delhi - 110002 Visit us at www.newagepublishers.com PREFACE I started my teaching career in the year 1964. I was teaching Production Engineering subjects till 1972. In the year 1972 I have registered my name for the Industrial Engineering examination at National Institution of Industrial Engineering, Bombay. Since then, I have shifted my field for interest to Industrial Engineering subjects and started teaching related subjects. One such subject is OPERATIONS RESEARCH. After teaching these subjects till my retirement in the year 2002, it is my responsibility to help the students with a book on Operations research. The first volume of the book is LINEAR PORGRAMMING MODELS. This was published in the year 2003. Now I am giving this book OPERATIONS RESEARCH, with other chapters to students, with a hope that it will help them to understand...
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...solution to be found quickly. Computational time on the fastest computers for optimization methods has been too long for many practical problems. Cognitive, heuristic, or combination heuristic-optimization solution procedures have been good alternatives [8]. The aim of this work is threefold; to present a new mathematical formulation of the VRP problem that uses fewer decision variables, to show how to model the TSP problem as a discrete event simulation model, and to employ the developed simulation model in finding the optimum/near optimum solution of the problem. This paper is organized as follows: in Section II, the basic concepts of VRP and the solution techniques found in literature will be briefly discussed. In Section III, proposed problem formulations will be presented followed by the simulation model development and optimization using simulation in sections IV and V. Finally, in section VI, the conclusions drawn from this work are presented. I. INTRODUCTION II. LITERATURE REVIEW HE vehicle routing problem (VRP) is one of the most intensively studied problems in operations research, and this is due to its structural charm as well as practical relevance. Many papers have been devoted to the development of optimization[1-3]and approximation algorithms for vehicle routing and scheduling problems[4, 5]. This interest is due to the practical importance of effective and efficient methods for handling physical distribution situations as well as to the intriguing nature of the...
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...Applications of Operations Research planning, routing, scheduling, forecasting, process analysis and decision analysis. OR is also contributing greatly to healthcare services such as surgical and bed scheduling, portering operations, emergency transport, accident trend analysis and treatment optimization. In the service sector, OR techniques have been found especially helpful when dealing with variability in service delivery such as call centres, queues for service and medical wait times. A sampler of typical OR applications includes: • • • • • • • • • • • • Optimization of LTL trucking (Yellow Freight) Optimal package designs (Domtar Packaging, Ltd) Manpower planning models (Treasury Board Secretariat) Aircraft operations (Delta Airlines) Surgical bed optimization (Fraser Health Authority) Pre-board passenger screening (Vancouver International Airport ) Switching network studies (Bell-Northern Research, Ltd) Maintenance Strategies for the US Coast Guard Revenue Management (American Airlines) Resource allocation in a mental health hospital (Douglas Hospital) Routing of Waste Trucks (Waste Management Inc.) Rail Car Optimization (CP Rail) Successful OR applications can be found in a broad array of industries dealing with challenges such as OR has been applied in many industry sectors including the following: Transport and Travel. OR techniques are used by airlines and rail companies to offer varying fares and make higher revenues by filling more seats at different prices - an...
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...com/sept00/html/satisfaction.html. Faber, P. (2007). RFID strategy - RFID privacy and security issues. Industry Week. Retrieved March 26, 2007, from http://www.industryweek.com/PrintArticle.aspx?ArticleID=13371. Fitch, D. (1997). Null hypotheses. Retrieved April 10, 2007, from New York University: http://www.nyu.edu/pages/projects/fitch/courses/evolution/html/null_hyp otheses.html#NullHypotheses. Fox, E.J., Metters, R. & Semple, J. (2006). Optimal inventory policy with two suppliers. Operations Research, 54(2): 389-397. Hjortshoj, K. (2001). From transition to college writing. Bedford: St. Martin's Press. Johnson, R.B. & Onwuegbuzie, A.J. (2004). Mixed methods research: A research paradigm whose time has come. Educational Researcher, 33(7): 14-26. Lee, H. & Kleiner, B. (2001). Inventory management in women's retail clothing JBPP Inventory Management Journal of Business and Public Policy (ISSN: 1936-9794) Volume 1, Number 3 (Summer 2007) 12 industry. Management Research News, 24(3/4), 40-45. Levinson, M. (2005, January 1). The link between inventory and customer...
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...allocation of the resources by the firms. In other words, managerial economics involves analysis of allocation of the resources available to a firm or a unit of management among the activities of that unit... browse notes.Finance or Business AccountingAmerican Accounting Association defines accounting as "the process of identifying, measuring and communicating economic information to permit informed judgements and decisions by users of the information". Accounting refers to the actual process of preparing and presenting the accounts. In other words, it is the art of putting the academic knowledge of accountancy into practice... browse notes.Operation Research & Quantitative TechniquesThe advent of Operation Research (commonly known as OR) was second world war. The name was also derived from its use for research on Military Operations...
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...Organizational Structures (Author’s name) (Institutional Affiliation) Date Introduction The organization of corporate structures is important in the allocation of duties and roles, supervision of employees at the workplace as well as the efficient coordination of workflow in an organization. These plans form the basis of effective operations of any company’s projects, and give accurate insights on the exploration of the minimal resources available to an organization’s disposal. Besides, it enables any company to manage the work force in the process of timely completion of projects and extension of the businesses longevity. Therefore, it is important to define the roles of each party in any project assigned to the organization. Analysis of the case: designing the authorities of a project manager The Beijing EAP Inc. is a company that provided EAPs to many customers. The nature of its operations required the employees to have strong academic backgrounds that qualified them to operate in this multinational service company. Being the largest market holder in the mainland China, the Company had a huge customer base that categorized it as a big corporation. Amongst some customers of BEC were IBM, Siemens, Samsung, Lenovo, Guadong Mobile and the China Development Bank. Consequently, the Company had many projects that prompted the management to subdivide the projects to different segment managers. In this case study, for instance, Mr. Yang represents a training department...
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...Brief History of the Production and operations Management function by V S Rama Rao on January 24, 2009 At the turn of the 20th century, the economic structure in most of the developed countries of today was fast changing from a feudalistic economy to that of an industrial or capitalistic economy. The nature of the industrial workers was changing and methods of exercising control over the workers, to get the desired output, had also to be changed. This changed economic climate produced the new techniques and concepts. Individual Efficiency: Fredric W Taylor studied the simple output to time relationship for manual labor such as brick-laying. This formed the precursor of the present day ‘time study’. Around the same time, Frank Gilberth and his leaned wife Lillian Gilberth examined the motions of the limbs of the workers (such as the hands, legs, eyes etc) in performing the jobs and tried to standardize these motions into certain categories and utilize the classification to arrive at standards for time required to perform a given job. This was the precursor to the present day ‘motion study’. Although to this day Gilberth’s classification of movements is used extensively, there have been various modifications and newer classifications. Collective Efficiency: So far focus was on controlling the work output of the manual laborer or the machine operator. The primary objective of production management was that of efficiency – efficiency of the individual operator. The aspects...
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...Limitations of Using Quantitative Business Analysis: Quantitative methods presume to have an objective approach to studying research problems, where data is controlled and measured, to address the accumulation of facts, and to determine the causes of behavior. As a consequence, the results of quantitative research may be statistically significant but are often humanly insignificant. Some specific limitations associated with using quantitative methods to study research problems in the social sciences include: • Quantitative data is more efficient and able to test hypotheses, but may miss contextual detail; • Uses a static and rigid approach and so employs an inflexible process of discovery; • The development of standard questions by researchers can lead to "structural bias" and false representation, where the data actually reflects the view of the researcher instead of the participating subject; • Results provide less detail on behavior, attitudes, and motivation; • Researcher may collect a much narrower and sometimes superficial dataset; • Results are limited as they provide numerical descriptions rather than detailed narrative and generally provide less elaborate accounts of human perception; • The research is often carried out in an unnatural, artificial environment so that a level of control can be applied to the exercise. This level of control might not normally be in place in the real world thus yielding "laboratory results" as opposed...
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