1. Operations Research
Lecture 3

2. Information Technology
Dr S M Junaid Zaidi
Rector
COMSATS Institute of
Information Technology

3. Operations Research
Introduction

4. Government of Pakistan
Virtual University
Government of Pakistan

5. OR PROCESS OBSERVATION PROBLEM DEFINITION MODEL CONSTRUCTION SOLUTION
IMPLEMENTATION

6. OR PROCESS OBSERVATION PROBLEM DEFINITION MODEL CONSTRUCTION SOLUTIONH N I Q U S
MODEL CONSTRUCTION
SOLUTION
IMPLEMENTATION

7. Mathematical Linear Programming (MLP) Probabilistic Inventory Network
OR Techniques
Mathematical Linear Programming (MLP)
Probabilistic
Inventory
Network
Others

8. LP Models Simplex Transportation Assignment Integer Lp Goal LP
Mathematical LP
LP Models
Simplex
Transportation
Assignment
Integer Lp
Goal LP

9. Decision Analysis Game Theory Markov Analysis Queuing Theory
Probablistic
Decision Analysis
Game Theory
Markov Analysis
Queuing Theory
Simulation
Forecasting

10. Inventory
Certain Demand
Uncertain Demand

11. Critical Path Method (CPM)
Networks
Critical Path Method (CPM)
Program Evaluation and Review Technique (PERT)
Network Flow

12. Others
Non LP
Dynamic Programming
Break Even Analysis ….

13. Integrated Planning of THE OIL SECTOR
OIL PRODUCTION FROM FIELDS
TRANSPORTATION OF CRUDE:
From Fields to Refineries
From Fields to Export Ports (Jetties)
From Import Ports (Jetties) to Refineries …

14. Cont !
STORAGE OF CRUDE:
On Fields,
On Ports,
On Refineries

15. Cont !
REFINERY SCHEDULING
Operation of CDU’s
Operation of Blending Units

16. Cont ! STORAGE OF DISTILLED BLENDED PRODUCTS At Refineries
At Export / Import Ports and Bulk Distribution

17. Cont ! TRANSPORTATION OF PRODUCTS
From Import/ Export Ports to Refineries
From one Refinery to another for further processing
From Refinery to Bulk Distribution Points
From Bulk Distribution Points to Final Consumers

18. … Example 5 Major Fields 4 Export / Import Ports 4 Refineries
24 Bulk Distribution Points
4 Modes of Transportation
4 Types of Crude
10 Types of Products …

19. Cont !
1 Year Operation, 4 Time Period Using LP Model
There will be a Matrix with 800 Rows and 1700 Columns
Its solution will require 800 days (About 3 years)

20. Problems of Applying OR
Non Availability of adequate funds due to (apparently) more important reasons
Lack of qualified OR personnel
Insufficiency and inaccuracy of data
Existence of resentment to change
Lack of communication system (confidentiality)
Tendency of management to give false information
Insufficient follow-up model implementation

21. OR
We call that work operational (with a large O) because it is based in the world of genuine activity, the places where things actually happen. All good sciences, as distinguished from all mysticism is found in empiricism. It involves actual observation, actual measurement and actual experiment. …

22. DOING THAT THING IS CALLED RESEARCHOR
We call our work research (with a capital R) because we deal with problems to which no one knows the answer
DOING THAT THING IS CALLED RESEARCH

23. Mathematical Linear Programming (MLP) Probabilistic Others
Order of the Course
Network
Inventory
Mathematical Linear Programming (MLP)
Probabilistic
Others

24. Topics
CPM / PERT Network
Inventory Control
Linear Programming (LP)
Transportation Problems
Assignment Problems
Dynamic Programming
Queuing Theory
Replacement Models

25. Course for Whom ?
Management Science
Mathematics
Physics
Chemistry
Engineering
Medical
Planners
Decision Makers

26. Operations Research
Lecture 3