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According to Churchman, Aackoff, and Aruoff, Operations research is defined as: the
application of scientific methods, techniques and tools to operation of a system with optimum
solutions to the problems, where 'optimum' refers to the best possible alternative.
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Physical models
These models include all forms of diagrams, graphs, and charts. There are two types of physical
models.
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These models employ a set of mathematical symbols to represent the decision variable of the
system. Some e.g. of mathematical models are allocation, sequencing, and replacement
models.
By nature of environment
Deterministic models - These are the models in which everything is defined and the
results are certain, such as an EOQ model.
Probabilistic models - These are the models in which the input and output variables
follow a defined probability distribution, such as the games theory.
General models These are the models which you can apply to any problem. For
example, linear programming.
Specific models - These are the models that you can apply only under specific
conditions. For example, you can use the sales response curve or equation in the
marketing function.
Judgment phase
Research phase
Action phase
This phase involves making recommendations for the decision process. The recommendations
can be made by those who identify and present the problem or by anyone who influences the
operation in which the problem has occurred.
Case 2 - The degeneracy develops at the iteration stage. This happens when the selection of
the entering variable results in the simultaneous drive to zero of two or more current basic
variables.
To resolve degeneracy, the positive variables are augmented by as many zero-valued variables
as it is necessary to complete m+n-1 basic variables. These zero-valued variables are selected
from among those current basic variables, which are simultaneously driven to zero. The rest of
the procedure is same as in case 1.
In the second stage, we test the basic feasible solution for its optimality by MODI method.
After evaluating an initial basic feasible solution to a transportation problem, the next question is
how to get the optimum solution. The basic techniques are illustrated as follows:
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5.
Determine the net evaluations for the nonbasic variables (empty cells)
Determine the entering variable
Determine the leaving variable
Compute a better basic feasible solution
Repeat steps (1) to (4) until an optimum solution has been obtained.
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Step7
Domiance
In a rectangular game, the pay-off matrix of player A is pay-off in one specific row (rth row)
exceeding the corresponding pay-off in another specific row (sth row).
This means that whatever course of action is adopted by player B, for A, the course of action
Ar yields greater gains than the course of action As.
Therefore, Ar is a better strategy than As irrespective of Bs strategy. Hence, you can say
that Ar dominates As.
Alternatively, if each pay-off in a specific column (pth column) is less than the corresponding
pay-off in another specific column (qth column), it means strategy Bp offers minor loss than
strategy Bq irrespective of As strategy. Hence, you can say that Bp dominates Bq.
CPM