Operation Research Notes
Subject Overview
Operation Research equips BBA students with mathematical decision-making models — using an analytical approach to solve real business and industry problems. You'll cover linear programming (graphical and simplex methods), transportation and assignment problems, game theory and sequencing problems, and close with network analysis (PERT/
Subject at a glance
4
Units
28
Topics
6
Credits
4
Infographics
Unit-wise Syllabus
4 units — open any unit for detailed topic-wise notes, diagrams and important exam questions
- Meaning
- evolution
- approaches
- techniques and scope of operations research
- managerial applications
- linear programming — meaning
- characteristics
- graphical approach
- simplex method
- dual linear programming
- 1Define decision variables
- 2Write the objective function
Maximise or minimise Z
- 3Write constraints
Including non-negativity
- 4Plot constraints
Find the feasible region
- 5Check corner points
Best value of Z is optimal
Study guide
This unit introduces OR: its evolution, approaches, techniques and scope, managerial applications and linear programming, including the graphical method, the simplex method and duality. Practise formulating a word problem as a linear program.
- General structure of the transportation problem
- methods of initial allocation
- degeneracy
- optimal solution
- the assignment problem
- structural variations in assignment problems
- 1Balance the problem
Add dummy row or column if needed
- 2Initial solution
NWCR, least cost or VAM
- 3Check for degeneracy
Allocations = m + n − 1
- 4Test optimality
MODI method
- 5Improve until optimal
Study guide
You study the transportation problem (structure, initial allocation methods, degeneracy and optimality) and the assignment problem with its variations. Learn the North-West Corner, Least Cost and Vogel methods.
- Games with pure and mixed strategies
- saddle point
- odds method
- principle of dominance
- sub-games method
- sequencing problems — processing jobs through two and three machines
- Pure strategy
- Same move every time
- Mixed strategy
- Moves chosen with probabilities
- Saddle point
- Maximin = minimax: value of the game
- Dominance
- Drop a strategy that is always worse
- Zero-sum game
- One player's gain is the other's loss
Study guide
You study game theory with pure and mixed strategies, the saddle point, the odds method, the principle of dominance and sub-games, and sequencing problems for jobs through two and three machines. Practise finding the saddle point.
- PERT/CPM background and development
- stages in application
- determination of earliest and latest allowable times
- classification of inventory control
- EOQ model
- ABC analysis
Time estimates
Three: optimistic, likely, pessimistic
One, deterministic
Focus
Time
Time and cost trade-off
Suits
Research, new projects
Construction, repetitive projects
Expected time
(a + 4m + b) / 6
Single estimate
Study guide
You study PERT and CPM (earliest and latest times), inventory control classification, the EOQ model and ABC analysis. Draw the network and mark the critical path in every problem.
Why Operation Research Matters
OR techniques underpin logistics, scheduling, production planning and supply chain decisions, and they are tested in management entrance exams and analytics roles.
How to Prepare for Operation Research
- Practise one LPP, one transportation and one network problem every few days.
- Show all steps; method marks matter.
- Memorise the EOQ formula and the steps of game theory solutions.
Operation Research: Frequently Asked Questions
What is the transportation problem?
It is the problem of finding the cheapest way to ship goods from several sources to several destinations while meeting supply and demand.
What is the critical path?
The critical path is the longest path through a project network, which determines the minimum project duration.