Operation Research
Subject Overview
Operation Research is the final-semester quantitative decision-making paper — using mathematical models to solve real business optimisation problems. You'll cover linear programming (graphical and simplex methods), transportation and assignment problems, decision-making under uncertainty and game theory, then queuing theory and network models (PERT/CPM) for project scheduling, and close with replacement and inventory models. This is a 6-credit core paper across 4 units, building directly on Business Statistics from Semester 2.
Unit-wise Syllabus
4 units — click WhatsApp below to get the full notes for each
Unit 1: Introduction & deterministic models
Basic definitions, scope, objectives, phases and limitations of operations research, formulation and graphical solution of linear programming problems, the Simplex method, artificial variables, Big-M method, transportation problem, assignment model, Hungarian method, travelling salesman problem
Unit 2: Probabilistic & dynamic models
Decision-making under uncertainty (maximin/minimax), decision trees, game theory — solution of two-person zero-sum games, introduction to deterministic and probabilistic dynamic programming
Unit 3: Queuing theory & network models
Types of queuing situations, queuing models with Poisson input and exponential service, PERT and CPM, construction of networks, critical path identification, slack and float, crashing a network for cost reduction
Unit 4: Replacement & inventory models
Replacement of items that deteriorate with time, individual and group replacement policy for items that fail suddenly, inventory costs, deterministic demand models with uniform and non-uniform demand and finite/infinite production rates