2. Originated during second world war.
Organized application of modern science,
math's and computers techniques.
Management of large systems of men,
materials, money and machines.
Manage explicit quantitative understanding
and assessment of complex situation for best
decisions.
Optimum solution to organizational problems.
3. Understand real situation, capture and define problem.
Formulate a mathematical model.
Analog model which takes form of mechanical system.
Symbolic model which is in the form of a matrix, a graph or
an equation.
Probabilistic contain obvious recognition of uncertainty used
in advertising problems.
In exact model chance and uncertainty plays very minor role
like long range production planning.
Develop solution:- data, complete information & analyze
result. A solution for alternative policies.
Interpret solutions meaningful, translate into decision.
Implement the decision.
Verify the result.
4. Locating factories, warehouses, minimize
transportation cost.
Work allocation to machines to min time & cost.
Inventory problem
Material handling
Dealing with waiting times
Equipment replacement
Dividing advertising budget
Establishing equitable bonus systems
Routing of tankers
Traffic control
Petrochemical mixes
Municipal and hospital administration
Marketing etc.
6. Classical operations research techniques
Military application to business problems
Resource allocation like crude oil
distribution to refineries, production
distribution, bombers placements etc.
To find best use of the limited resource
Allocation of scare resources
Maximize profit minimize overall cost
7. Objectives of an LP
Alternatives course of action
• To allocate among them its limited
resources
Resources must be in limited supply
• Restrictions or limits to resources
Objectives to be mathematically expressed