JAWAHARLAL NEHRU TECHNOLOGICAL UNIVERSITY HYDERABAD

Course Objective

To provide the basic tools of Operations research in solving the management

problems using mathematical approach for decision making.

Learning Outcome

Students will be able to understand a) The course covers origin and application

of OR, b) Linear Programming Method, c) Decision Theory and queuing theory. These concepts help the student in taking decisions for business. *****

UNIT - I: Introduction to Operations Research

Nature and scope of Operations research: Origins of

OR, Applications of OR in different Managerial areas, Problem solving and decision making, Quantitative and qualitative analysis, Defining a model, types of model, Process for developing an operations research model, Practices, opportunities and short comings of using an OR model.

UNIT - II: Linear Programming Method

Structure of LPP, Assumptions of LPP, Applications areas of

LPP, Guidelines for formulation of LPP, Formulation of LPP for different areas, solving of LPP by Graphical Method: Extreme point method, simplex method, converting primal LPP to dual LPP, Limitations of LPP.

UNIT - III: Assignment Model

Algorithm for solving assignment model, Hungarians Method for

solving assignment problem, variations of assignment problem: Multiple Optimal Solutions, Maximization case in assignment problem, unbalanced assignment problem, travelling salesman problem, simplex method for solving assignment problem. Transportation Problem: Mathematical Model of transportation problem, Methods for finding Initial feasible solution: Northwest corner Method, Least Cost Method, Vogels approximation Method, Test of optimality by Modi Method, unbalanced Supply and demand , Degeneracy and its resolution.

UNIT - IV: Decision Theory

Introduction, ingredients of decision problems. Decision making – under

uncertainty, cost of uncertainty, under risk, under perfect information, decision tree, construction of decision tree. Network Analysis – Network Diagram, PERT, CPM, Critical Path determination, Project Completion Time, Project Crashing.

UNIT - V: Queuing Theory

Queuing Structure and basic component of an Queuing Model,

Distributions in Queuing Model, Different in Queuing Model with FCFS, Queue Discipline, Single and Multiple service station with finite and infinite population. Game theory, Suddle point, Value of the Game.

Suggested Readings:

• S.D. Sharma, Operations Research, Kedarnath Ramnath and Company.
• R. Pannerselvam, Operations Research, Prentice Hall International, 3e,2012
• J.K. Sharma, Operations Research: Theory and applications, 5e, Macmillian, 2013.
• Anderson, Sweeney, Williams, Camm, Martin, Quantitative Methods for Business, 12e, Cengage Learning, 2013.
• Hamdy A.Taha, Operations Research: An Introduction, 9 e, Pearson, 2013.
• Prem Kumar Gupta, D.S. Hira, Operations Research 5e, S. Chand , 2012.