Operations Research Models and Methods Advanced Operations Research Reference: Operations Research Models and Methods, Operations Research Models and Methods, Jenson and Bard, Jenson and Bard, Introduction to Operations Research, Hillier and Lieberman, 9/e, 2010 Introduction to Operations Research, Hillier and Lieberman, 9/e, 2010 Topics: Linear Programming Linear Programming Network Programming Network Programming Integer Programming Integer Programming Nonlinear Programming Nonlinear Programming Grading: Midterm 40%, Final 40%, Homework 20%

Operations Research Models and Methods The OR Process

Operations Research Models and Methods What is OR? It is a Process It is a Process It assists Decision Makers It assists Decision Makers It has a set of Tools It has a set of Tools It is applicable in many Situations It is applicable in many Situations

Operations Research Models and Methods The Process: Recognize the Problem Manufacturing Manufacturing –Planning –Design –Scheduling –Dealing with Defects –Dealing with Variability –Dealing with Inventory –…

Operations Research Models and Methods Other applications Service Industries Service Industries Logistics Logistics Transportation Transportation Environment Environment Health Care Health Care Situations with complexity Situations with complexity Situations with uncertainty Situations with uncertainty

Operations Research Models and Methods Formulate the Problem Define the problem Define the problem Delimit the system Delimit the system Select measures Select measures Determine variables Determine variables Identify constraints Identify constraints

Operations Research Models and Methods Construct a Model Math. Programming Model Math. Programming Model Stochastic Model Stochastic Model Statistical Model Statistical Model Simulation Model Simulation Model

Operations Research Models and Methods Find a Solution Linear Programming Linear Programming Nonlinear Programming Nonlinear Programming Regression Regression Direct Search Direct Search Stochastic Optimization Stochastic Optimization Trial and Error Trial and Error

Operations Research Models and Methods Establish a Procedure How the solution is derived? How the solution is derived?

Operations Research Models and Methods Implement the Solution How the real world situation is resolved. How the real world situation is resolved.

Operations Research Models and Methods The Goal is to Solve the Problem The model must be valid The model must be valid The model must be tractable The model must be tractable The solution must be useful The solution must be useful

Operations Research Models and Methods Operations Research/Management Science INstitute For Operations Research and the Management Sciences (INFORMS) OR/MS Professionals aim to provide rational bases for decision making by seeking to understand and structure complex situations and to use this understanding to predict system behavior and improve system performance. Much of this work is done using analytical and numerical techniques to develop and manipulate mathematical and computer models of organizational systems composed of people, machines, and procedures.

Operations Research Models and Methods Real World Situation, Problems, Models and Methods