Operations Research for Engineering Management

Introduction to Operations Research

APS1005 - Operations Research for Engineering Management

Definition of OR
Operations Research, or simply OR is an interdisciplinary science which deploys scientific methods like mathematical modeling, statistics, and algorithms to decision making in complex real-world problems which are concerned with coordination and execution of the operations within an organization. The nature of organization is essentially immaterial. The eventual intention behind using this science is to elicit a best possible solution to a problem scientifically, which improves or optimizes the performance of the organization.
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the name
Started in WWII under the name of Operational Research Also called Management Science Traditionally associated with Industrial Engineering, More recently as Systems Engineering Institute for Operations Research and the Management Sciences In 2005 INFORMS introduces its motto: The Science of Better.

APS1005 - Operations Research for Engineering Management

Focus on Operations
The origin and mainstay of OR Justifies dual homes for OR
Industrial engineering in engineering schools, Operations management in business schools.

APS1005 - Operations Research for Engineering Management

Nature Of Organization Is Immaterial

Energy, defence, healthcare, transportation, mining, forestry, electric utilities, retail, manufacturing, banking, security, etc..
APS1005 - Operations Research for Engineering Management

Getting to the best solution

Each application requires a new optimization model specific to that situation, BUT, there are standard model TYPES available. At a high level can be categorized under
Descriptive versus Normative (or Prescriptive) Models Deterministic versus Stochastic (or Probabilistic) Models

APS1005 - Operations Research for Engineering Management

Descriptive versus Normative Models

Descriptive Models help you understand how the situation will change if one makes a particular decision. Normative Models go beyond the Descriptive Models and explicitly advise what one ought to do to improve the situation.

APS1005 - Operations Research for Engineering Management

Deterministic versus Stochastic Models

Deterministic Models do not take into account uncertainty. Stochastic Models take into account uncertainties modelled as probability distributions.

APS1005 - Operations Research for Engineering Management

Types of OR Models
Deterministic
Systems of Equations

Stochastic
Simulation Models
Discrete Event Monte-Carlo

Descriptive

Linear Non-linear Differential

Queueing Theory Markov Chains Mathematical Programming

Linear Programming (LP) Network Models Integer Programming (IP) Non-linear Programming (NLP)

Stochastic Programming
Chance constrained Recourse Models

Stochastic DP Decision Analysis Models Stochastic Optimal Control Stochastic Multi-Criteria

Normative

Dynamic Programming (DP) Optimal Control Heuristic Methods Multi-Criteria Models

APS1005 - Operations Research for Engineering Management

Mathematical Programming
Minimize or Maximize f(x1, x2, x3, , xn) subject to constraints g1(x1, x2, x3,, xn) { or or = } some constant b1 g2(x1, x2, x3,, xn) { or or = } some constant b2 . . gm(x1, x2, x3,, xn) { or or = } some constant bm For example Minimize 3x1 + ln (x1/x2) exp(x2 + x3) subject to x1 + x2 + sin x3 5
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Linear Programming
General Form Minimize or Maximize cj xj subject to a1j xj { or or = }b1 a2j xj { or or = }b2 . . . amj xj { or or = }bm xj 0 Example Max 3x1 + 4x2 subject to 2x1 + 5x2 5 3x1 + x2 10 7x1 + 3x2 7 12x1 + 10x2 8 x1 0 and x2 0

all relationships are LINEAR!

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Back to the 7 Step Modeling Process

1. 2. 3. 4. 5. 6. 7.

Formulate the Problem Observe the System Formulate the Model Verify and Validate the Model Solve the Model Recommend Implement
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Formulating and Verifying LP Models

Formulating your model
Understand the problem formulation LET some symbol represent some problem entity Repeat for all problem entities Derive linear mathematical relationships between symbols

Verifying your model

Postulate an arbitrary numerical solution to the problem Check its feasibility from the problem formulation Compare with a feasibility check using your LP model Check its objective value from the problem Compare with the objective value from your LP model
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