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Operations Research and Decision Making

The document discusses various operations research techniques including: linear programming for transportation and assignment models; decision theory for optimal decisions under uncertainty; game theory; sequencing problems; queuing theory; and replacement problems. It also provides sample problems and data for each technique to illustrate their applications in business and industry decision making.

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Pravah Shukla
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12 views16 pages

Operations Research and Decision Making

The document discusses various operations research techniques including: linear programming for transportation and assignment models; decision theory for optimal decisions under uncertainty; game theory; sequencing problems; queuing theory; and replacement problems. It also provides sample problems and data for each technique to illustrate their applications in business and industry decision making.

Uploaded by

Pravah Shukla
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd

Problems

Operations Research
Unit I

Operations Research
• What is Operations Research?
• Discuss the application of OR in business and
industry.
• “OR is an aid for the executive in making his
decisions by providing him with the needed
quantitative information based on the
scientific method of analysis.” Comment.
• How does OR assist management in decision
making?
Unit I

Decision Theory
A certain output is manufactured at Rs.80 and
sold at Rs.140/unit. The product is such that if it
is produced but not sold during a day’s time it
becomes worthless. The daily sales records in
the past are given below. Find the optimal
decision and EVPI.

Sales/day 30 40 50 60 70
No. of days 24 24 36 24 12
Unit II

Linear Programming
Unit II

Transportation Model
Unit II

Assignment Model
A management consulting firm has a backlog of 4 contracts.
Work on these contracts must be started immediately. 3
project leaders are available for assignment to the contracts.
Because of varying work experience of the project leaders,
the profit of the consulting firm will vary based on the
assignment as shown below. The unassigned contract can be
completed by subcontracting the work to an outside
consultant. The profit from the subcontract is 0. Determine
the assignment of project leaders to contracts so as to
maximise profit.
Project Contracts
Leaders 1 2 3 4

A 13 10 9 11
B 15 17 13 20
C 6 8 11 7
A company has 3 salesmen to serve 4 zones. The
expected net profit from executing a slae during 1
month in each zone is given below. The probability
of executing a sale in any given zone during a month
is a function of a salesman’s familiarity with the zone
as well as his personal ability. The probabilities are
given in the following table. Find the best
assignment plan to maximise expected profit.
Zone Net Profit Salesman Zone
1 18,000 1 2 3 4
2 8,000 A 0.5 0.8 0.2 0.6
3 12,000 B 0.6 0.6 0.4 0.5
4 18,000 C 0.4 0.7 0.5 0.4
Jobs Machines
1 2 3 4
A 90 5 48 73
B 69 14 83 86
C 57 93 2 79
D 7 77 75 23
Unit III

Game Theory
Unit III

Sequencing
Unit IV

Queuing Theory
Unit IV

Replacement Problem
Unit IV

Project Management

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