Advanced project scheduling

Operations Research 1

presentation : Meysam Borajee

Build Your Knowledge

to increase your success in practice

Goals
Develop skill at the art of modeling of decision problems Learn to solve MP problems

Operations Research
Operations Research (OR) is the field of how to form mathematical models of complex management decision problems and how to analyze the models to gain insight about possible solutions.
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Terminology

OR MS OM DS

Operations Research Management Science Operations Management Decision Science

OR Journals
Operations Research Management Science MS/OR Today (Management Science/Operations Res.) European Journal of Operational Research Journal of the Operational Research Society Mathematical Programming Journal of Optimization Theory and Applications Interfaces OR - Spektrum International Transactions in Operational Research Annals of Operations Research Central European Journal of Operations Research
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Build Your Knowledge

to increase your success in practice

Linear Programming Non-linear Programming Network Flow Programming Stochastic Programming Multi-objective optimization Multi-modal optimization Markov Decision Processes Multiple Criteria Decision Making Queuing Models
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Build Your Knowledge

to increase your success in practice

Combinatorial Optimization Convex Optimization Dynamic Programming Robust Programming Evolutionary Algorithms Exact Algorithms Computational Complexity
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Build Your Knowledge

to increase your success in practice

Regression and Econometrics Forecasting Models Data Envelopment Analysis General Measurement of Effectiveness Cost Benefit Analysis (Reliability,Maintainability) Data Mining Methods Applied Stochastic Processes

Problem Solving Stages

Real Practical Problem Mathematical (Optimization) Problem Mathematical Solution Method (Algorithm) Computer Algorithm Decision Support Software System Human Decision-Maker
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Mathematical Programming CPLEX GAMS LINGO

Excel with VBA

Mathematical Programs
Optimization models (also called mathematical programs) represent choices as decision variables and seek values that maximize or minimize objective functions of the decisions variables subject to constraints on variable values expressing the limits on possible decision choices.
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Math Modeling is Only One Part of Problem Solving

Define an Opportunity or Problem Formulate a Mathematical Model Acquire Input Information and Data Validate (Calibrate) Model and Data Solve and Analyze Solutions Sensitivity Implement Solution Monitor and Follow-Up
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OR models
The three fundamental concerns of forming operations research models are decisions open to decision makers, the constraints limiting decision choices, and the objectives making some decisions preferred to others.

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OR models
The model consists of: Decision variables (r,q) Constraints Objective function c(r,q)
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Example
Max 600 L + 700 F Subject to the constraints: 2L + 3F < 12 (wiring hours) 6L + 5F < 30 (assembly hours) L, F > 0
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($ of profit)

Linear Programming

Integer Programming

Goal Programming
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Integer Programming
Integer programming is concerned with optimization problems in which some of the variables are required to take on discrete values. General Integer Variables (0,1,2,3,etc.) Values that count how many Binary Integer Variables (0 or 1) Usually represent a Yes/No decision

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Graphical Solution

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What is Goal Programming?

Mathematical model similar to Linear

Programming, however it allows for multiple goals to be satisfied at the same time. Allows for the multiple goals to be prioritized and weighted to account for the DMs utility for meeting the various goals.
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Assumptions
Similar to LP: NonNon-negative variables Conditions of certainty Variables are independent Limited resources Deterministic

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Components
Economic Constraints
Physical Concerned with resources Cannot be violated Example: # of production hours each week

Components
Goal Constraints
Variable Concerned with target values Can be changed/modified Example: Desire to achieve a certain level of profit

Components
Objective Function
Minimizes the sum of the weighted deviations from the target values this is ALWAYS the objective for Goal Programming Not the same as LP (which was maximize revenue/minimize costs)

Goal Programming Steps

Define decision variables Define Deviational Variable for each goal Formulate Constraint Equations
Economic constraints Goal constraints

Formulate Objective Function

Goal Programming Terms

Decision Variables are the same as those in LP formulations (represent products, hours worked) Deviational Variables represent overachieving or underachieving the desired level of each goal d+ dRepresents overachieving level of the goal
Represents underachieving level of the goal

Goal Programming Constraints

Economic Constraints
Stated as <=, >=, or = Linear (stated in terms of decision variables) Example: 3x + 2y <= 50 hours

Goal Constraints
General form of goal constraint:
Decision Variables

d+

d-

Desired Goal Level

Goal Programming Example: Wilson Doors Co.

Makes 3 types of doors from 3 limited resources

Goals
1. Total sales at least $180,000 2. Exterior door sales at least $70,000 3. Interior door sales at lest $60,000 4. Commercial door sales at least $35,000

Regular Decision Variables

E = number of exterior doors made I = number of interior doors made C = number of commercial doors made Deviation Variables di+ = amount by which goal i is overachieved di- = amount by which goal i is underachieved

Goal Constraints
Goal 1: Total sales at least $180,000 70E + 110I + 110C + dT- - dT+ = 180,000 Goal 2: Exterior door sales at least $70,000 70E + dE- - dE+ = 70,000 Note: Each highlighted deviation variable measures goal underachievement

Goal Constraints
Goal 3: Interior door sales at least $60,000 110 I + dI- - dI+ = 60,000 Goal 4: Commercial door sales at least $35,000 110C + dC- - dC+ = 35,000

Objective Function
Minimize total goal underachievement Min dT- + dE- + dI- + dCSubject to the constraints: The 4 goal constraints The regular constraints (3 limited resources) nonnegativity

Weighted Goals
When goals have different priorities, weights can be used Suppose that Goal 1 is 5 times more important than each of the others Objective Function Min 5dT- + dE- + dI- + dC-

Properties of Weighted Goals

Solution may differ depending on the weights used Appropriate only if goals are measured in the same units