BA5201 APPLIED OPERATION RESEARCH

OBJECTIVE: 
 To learn the concepts of operations research applied in business decision making.

UNIT I INTRODUCTION TO LINEAR PROGRAMMING (LP) 9 
Introduction to applications of operations research in functional areas of management. Linear Programming-formulation, solution by graphical and simplex methods (Primal - Penalty, Two Phase), Special cases. Dual simplex method. Principles of Duality. Sensitivity Analysis.

 UNIT II LINEAR PROGRAMMING EXTENSIONS 9 
Transportation Models (Minimising and Maximising Problems) – Balanced and unbalanced Problems – Initial Basic feasible solution by N-W Corner Rule, Least cost and Vogel’s approximation methods. Check for optimality. Solution by MODI / Stepping Stone method. Case of Degeneracy. Transhipment Models. Assignment Models (Minimising and Maximising Problems) – Balanced and Unbalanced Problems. Solution by Hungarian and Branch and Bound Algorithms. Travelling Salesman problem. Crew Assignment Models.

UNIT III INTEGER PROGRAMMING AND GAME THEORY 9 
Solution to pure and mixed integer programming problem by Branch and Bound and cutting plane algorithms. Game Theory-Two person Zero sum games-Saddle point, Dominance Rule, Convex Linear Combination (Averages), methods of matrices, graphical and LP solutions.

UNIT IV INVENTORY MODELS, SIMULATION AND DECISION THEORY 9 
Inventory Models – EOQ and EBQ Models (With and without shortages), Quantity Discount Models. Decision making under risk – Decision trees – Decision making under uncertainty. Monte-carlo simulation.

UNIT V QUEUING THEORY AND REPLACEMENT MODELS 9 
Queuing Theory - single and Multi-channel models – infinite number of customers and infinite calling source. Replacement Models-Individuals replacement Models (With and without time value of money) – Group Replacement Models.

 TOTAL: 45 PERIODS 

OUTCOME: 
 To facilitate quantitative solutions in business decision making under conditions of certainty, risk and uncertainty.

REFERENCES : 
1. Paneerselvam R., Operations Research, Prentice Hall of India, Fourth Print, 2008.
2. N. D Vohra, Quantitative Techniques in Management,Tata Mcgraw Hill, 2010.
3. Hamdy A Taha, Introduction to Operations Research, Prentice Hall India, Ninth Edition, 2010.
4. Anderson , Sweeney Williams Solutions Manual to Accompany AnIntroduction to Management Science Quantitative Approaches To Decision, Cengage , 12th edition , 2012
5. G. Srinivasan, Operations Research – Principles and Applications, II edition , PHI, 2010.
6. Bernard W.Taylor ,Introduction to Management Science , 12 th edition, 2012