2.

0 Definition

Mathematical modeling is the process of representing a real-world system, problem, or situation using
mathematical concepts such as variables, equations, inequalities, and functions. The model captures the
essential relationships between factors in a simplified, structured form so the problem can be analyzed,
predicted, and optimized mathematically.

2.1 Role of Mathematical Modeling in Operations Research (OR)

Mathematical modeling is the foundation of Operations Research. Its key roles include:

2.1.1 Problem Structuring: It converts complex managerial or operational problems (like production
planning or transportation) into clear mathematical forms.

2.1.2 Decision Making: Models help decision-makers choose the best course of action by comparing
alternatives quantitatively.

2.1.3 Optimization: OR models are used to maximize or minimize objectives such as cost, profit, time, or
resource utilization.

2.1.4 Efficient Resource Allocation: They help allocate limited resources (machines, labor, money, time)
in the most effective way.

2.1.5 Prediction and Analysis: Mathematical models allow “what-if” analysis to study the impact of
changes in parameters or constraints.

2.1.5 Risk and Uncertainty Handling: Through probabilistic and statistical models, OR addresses
uncertainty in demand, supply, and system behavior.

2.2 Purpose and Importance of Mathematical Modeling

2.2.1 Purpose of Mathematical Modeling

The main purpose of mathematical modeling is to represent real-world problems or systems in

mathematical form (using equations, formulas, graphs, or algorithms) so they can be analyzed,
understood, predicted, and optimized. In simple words, it helps us simplify reality and study how a
system behaves under different conditions.

2.2.2 Importance of Mathematical Modeling

 Simplifies Complex Problems

 Converts complicated real-life situations into manageable mathematical expressions.
 Better Understanding of Systems
 Helps explain relationships between variables and how changes in one affect others.
 Prediction and Forecasting
 Used to predict future outcomes such as demand, population growth, profit, or system
performance.
  Decision Making and Optimization
 Supports choosing the best alternative by analyzing different scenarios.
 Saves Time and Cost
 Reduces the need for expensive and risky real-world experiments by testing ideas through
models.
 Improves Accuracy and Objectivity
 Provides precise and logical results instead of relying on intuition or guesswork.
 Software Tools for Mathematical Modeling in Operations Research

2. 3 Software Tools commonly used for mathematical modeling : Mathematical modeling in Operations
Research (OR) involves formulating real-world decision problems using mathematical expressions and
solving them using computational tools. Software tools play a vital role in:

 Model formulation
 Efficient solution of large-scale problems
 Analysis and interpretation of results

These tools can be broadly classified into optimization software, modeling platforms, and supporting
tools.

2.3.1 Optimization Software (Solvers): Optimization solvers are used to compute optimal solutions once
a model is formulated.

[Link] Commercial Optimization Solvers: Commonly used in industry for large and complex problems.
Examples:

i. CPLEX (IBM ILOG): Solves LP, IP, and MIP problems. It has high computational efficiency
ii. Gurobi: Solves LP, MIP, QP problems. It is widely used in academia and industry
iii. MOSEK: Used for convex and conic optimization. It has high speed and accuracy and can also
handle large-scale models

[Link] Open-Source Optimization Solvers: Used mainly for academic and research [Link]:

i. GLPK (GNU Linear Programming Kit) – LP and MIP

ii. CBC (Coin-OR) – Integer programming
iii. SCIP – Constraint integer programming

It has the advantages of been:

 Free and accessible

 Suitable for learning and prototyping

2.4 Modeling Languages and Platforms: Modeling platforms help users express OR models in a
structured mathematical form.
2.4.1 Algebraic Modeling Languages: These languages resemble mathematical notation and separate
model formulation from data. Examples: AMPL, GAMS, LINGO / LINDO, the language has the features of
been

 Clear model representation

 Solver-independent
 Easy modification of parameters

2.5 Programming-Based Modeling Tools: Models are developed using general-purpose programming
languages. Examples: Python-based tools, Pyomo, PuLP, OR-Tools, MATLAB Optimization Toolbox, Julia
(JuMP), it has the advantages of :

 Flexibility and extensibility

 Easy integration with data processing and visualization

2.6 Simulation and Hybrid Tools: Used when analytical optimization is difficult due to system
complexity. Examples: Arena, AnyLogic, it is been applied in manufacturing systems, service systems,
supply chain analysis. Simulation is often combined with optimization for better decision-making.

2.7 Mathematical models: A mathematical model is a representation of a real-world system or problem

using mathematical variables, equations, and relationships to analyze, explain, or predict its behavior.
They are as follows:

I. Linear Programming: This is a constrained optimization technique, which optimize some

criterion within some constraints. In Linear programming the objective function (profit, loss or
return on investment) and constraints are linear. There are different methods available to solve
linear programming.
II. Game Theory: This is used for making decisions under conflicting situations where there are one
or more players/opponents. In this the motive of the players are dichotomized. The success of
one player tends to be at the cost of other players and hence they are in conflict.
III. Decision Theory: Decision theory is concerned with making decisions under conditions of
complete certainty about the future outcomes and under conditions such that we can make
some probability about what will happen in future
IV. Queuing Theory: This is used in situations where the queue is formed (for example customers
waiting for service, aircrafts waiting for landing, jobs waiting for processing in the computer
system, etc). The objective here isminimizing the cost of waiting without increasing the cost of
servicing.
V. Inventory Models: Inventory model make a decisions that minimize total inventory cost. This
model successfully reduces the total cost of purchasing, carrying, and out of stock inventory.
VI. Simulation: Simulation is a procedure that studies a problem by creating a model of the process
involved in the problem and then through a series of organized trials and error solutions
attempt to determine the best solution. Some times this is a difficult/time consuming
procedure. Simulation is used when actual experimentation is not feasible or solution of model
is not possible.
 Non-linear Programming: This is used when the objective function and the constraints are not
linear in nature. Linear relationships may be applied to approximate non-linear constraints but
limited to some range, because approximation becomes poorer as the range is extended. Thus,
the non-linear programming is used to determine the approximation in which a solution lies and
then the solution is obtained using linear methods.
VII. Dynamic Programming: Dynamic programming is a method of analyzing multistage decision
processes. In this each elementary decision depends on those preceding decisions and as well as
external factors.
[Link] Programming: If one or more variables of the problem take integral values only then
dynamic programming method is used. For example number or motor in an organization,
number of passenger in an aircraft, number of generators in a power generating plant, etc.
IX. Markov Process: Markov process permits to predict changes over time information about the
behavior of a system is known. This is used in decision making in situations where the various
states are defined. The probability from one state to another state is

known and depends on the current state and is independent

3.0 OPTIMIZATION PROBLEMS

Introduction

Optimization is an important concept used in many fields such as engineering, business, computer
science, economics, and everyday decision-making. An optimization problem involves finding the best
possible solution from several alternatives while considering certain limitations or constraints.

3.1 Meaning of Optimization

Optimization is the process of maximizing or minimizing a particular objective, such as profit, cost, time,
or effort, subject to given conditions. Examples:

i. Maximizing profit in a business

ii. Minimizing cost of production
iii. Minimizing time taken to complete a task

3.2 Elements of an Optimization Problem: Every optimization problem consists of the following basic
elements:

i. Decision Variables:These are the quantities or choices to be determined.

ii. Objective Function: This is the goal of the problem, expressed mathematically or verbally, which
may involve: m aximization (e.g., profit, output) and minimization (e.g., cost, time, waste)
iii. Constraints: These are the restrictions or limitations placed on the decision variables, such as
limited resources, time, or capacity.
iv. Feasible Solution: Any solution that satisfies all the constraints of the problem.
 v. Optimal Solution: The best feasible solution that meets the objective of the problem.

3.3 Formulate of optimization problem

Example1: A company owns two flour mills viz. A and B, which have different production capacities for
high, medium and low quality flour. The company has entered a contract to supply flour to a firm every
month with at least 8, 12 and 24 quintals of high, medium and low quality respectively. It costs the
company Rs.2000 and Rs.1500 per day to run mill A and B respectively. On a day, Mill A produces 6, 2
and 4 quintals of high, medium and low quality flour, Mill B produces 2, 4 and 12 quintals of high,
medium and low quality flour respectively. How many days per month should each mill be operated in
order to meet the contract order most economically.
Solution: Let us define x1 and x2 are the mills A and B. Here the objective is to minimize the cost of the
machine runs and to satisfy the contract order. The linear programming problem is given by
Minimize: Z = 2000x1 + 1500x2

Subject to:
6x1 + 2x2 ≥ 8
2x1 + 4x2 ≥ 12
4x1 + 12x2 ≥ 24
x1 ≥ 0, x2 ≥ 0

Example 2: Cost Minimization Problem: A manufacturer is to market a new fertilizer which is to be

mixture of two ingredients A and B. The properties of the two ingredients are as follows: ingredient A
contains 20% bone meal, 30% nitrogen, 40% lime and 10% phosphate and it cost N2.40 per kilogram.
Ingredient B contains 40% bone meal, 10% nitrogen, 45% lime and 5% phosphate, and it costs N1.60 per
kilogram. Furthermore it is decided that:
(i) The fertilizer will be sold in bags containing a minimum of 50 kilograms
(ii) It must contain at least 12% nitrogen
(iii) It must contain at least 6% phosphate
(iv) It must contain at least 20% bone meal
Formulate the above problem as a LPM.

Solution:
Let x1 = number of kilogram of ingredient A

x2 = number of kilogram of ingredient B

The objective function is

Minimize z = 2.4x1 + 1.6x2

The following are constraints or limitations

(a) Total weight constraints: x1 + x2 ≥ 50

(b)VBone meal constraints: 0.2x1 + 0.4x2 ≥ 0.20

(c) Nitrogen constraints: 0.3x1 + 0.1x2 ≥ 0.12

(d) Phosphate constraints: 0.1x1 + 0.05x2 ≥ 0.06

(e) ANon negative constraints: x1, x2 ≥ 0.

3.4 Difference between linear and nonlinear optimization problem

Linear Optimization Problem (Linear Programming, LP): An optimization problem where both the
objective function and all constraints are linear functions of the decision variables.

Nonlinear Optimization Problem: An optimization problem where the objective function or any of the
constraints is a nonlinear function of the decision variables.

4.0 Introduction to Linear ProgrammingLinear Programming is a special and versatile technique which
can be applied to a variety of management problems viz. Advertising, Distribution, Investment,
Production, Refinery Operations, and Transportation analysis. The linear programming is useful not only
in industry and business but also in non-profit sectors such as Education, Government, Hospital, and
Libraries. The linear programming method is applicable in problems characterized by the presence of
decision variables. The objective function and the constraints can be expressed as linear functions of the
decision variables. The decision variables represent quantities that are, in some sense, controllable
inputs to the system being modeled. An objective function represents some principal objective criterion
or goal that measures the effectiveness of the system such as maximizing profits or productivity, or
minimizing cost or consumption. There is always some practical limitation on the availability of
resources viz. man, material, machine, or time for the system. These constraints are expressed as linear
equations involving the decision variables. Solving a linear programming problem means determining
actual values of the decision variables that optimize the objective function subject to the limitation
imposed by the constraints. The main important feature of linear programming model is the presence of
linearity in the problem. The use of linear programming model arises in a wide variety of applications.
Some model may not be strictly linear, but can be made linear by applying appropriate mathematical
transformations. Still some applications are not at all linear, but can be effectively approximated by
linear models. The ease with which linear programming models can usually be solved makes an
attractive means of dealing with otherwise intractable nonlinear models.

2.2 Linear Programming Problem Formulation: The linear programming problem formulation is
illustrated through a product mix problem. The product mix problem occurs in an industry where it is
possible to manufacture a variety of products. A product has a certain margin of profit per unit, and uses
a common pool of limited resources. In this case the linear programming technique identifies the
products combination which will maximize the profit subject to the availability of limited resource
constraints.