BA5201
APPLIED OPERATIONS RESEARCH
I- MBA II-SEMESTER,
COURSE OBJECTIVE
To learn the concepts of operations research applied in business decision making.
COURSE OUTCOME
To facilitate quantitative solutions in business decision making under conditions of certainty, risk and uncertainty
UNIT-I INTRODUCTION TO LINEAR PROGRAMMING (LP)
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
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. Transshipment 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
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
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
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
TEXTBOOKS
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. Pradeep Prabakar Pai, Operations Research -Principles and Practice, Oxford Higher Education,
REFERENCES
1. Hamdy A Taha, Introduction to Operations Research, Prentice Hall India, Seventh Edition, Third Indian Reprint 2004.
2. G. Srinivasan, Operations Research –Principles and Applications, PHI, 2007.
3.Gupta P.K, Hira D.S, Problem in Operations Research, S.Chand and Co, 2007.
4. Kalavathy S, Operations Research, Second Edition, Vikas Publishing House, 2004
5. Frederick and Mark Hillier, Introduction to Management Science –A Modeling and case studies approach with spreadsheets, Tata Mcgraw Hill, 2005
