Operations Research

Unit - 1 Operations research

Origins and development of Operations Research, Nature of
Operations research, Definitions of operations research, Features (characteristics) of
operations research. Phases of operations research. Models and modelling in
operations research, classifications of O.R. models: Methods for solving O.R. models:
Methodology of operations research, Operations research techniques. Scope of
operations research in commercial applications.

Unit - 2 Linear programming problem

Formulation and Graphical method. Basic terminology
requirements, Applications area of Linear Programming, formulation of Linear
Programming models, General mathematical formulation of Linear Programming
Problems equality sign; Definitions Graphical solution method search approach: The
simplex method: Introduction standard form of linear programming problem
c1evelopmellt of simplex method. Simplex method (Maximization case), Simplex
method (minimization case). Economic interpretation of the optimum simplex
solution.

Unit - 3 Transportation models introduction

Mathematical statement of the transportation
problem, Methods for finding initial solution, North-West Corner method; least cost
method: Vogel's approximation method. Optimality test, stepping stone method:
Modified distribution (MODI) method. Profit maximization in transportation problem
Assignment problem: Introduction and mathematical models for assignment
Hungarian method for assignment problem. Special cases in assignment problems:
Maximization Case III assignment problem, multiple optimal solutions.

Unit - 4 Decision theory

Introduction, Decisions situations, Types of decisions- making
environment, Decision making certainty, Risk and uncertainty, Decision- tree
analysis. Game theory introduction, definitions, Two -person zero sum game payoff
matrix, Pure strategies: Games with saddle points, The rule of dominance. Mixed
strategies: Games without saddle point.