Aryans Business School (ABS)

LESSON PLAN
MBA SEMESTER I 2007

Subject: Applied Operations Research

Subject Code: MB 301 Assessment Scheme
Start Date: External Assessment: 60 marks
Completion Date: Internal Assessment: 40 marks
No. of Weeks: 16
Session per week: 5
Session Duration: 55 minutes

Sessions Topic References

Introduction to Operations Research
3  Introduction & nature of OR T1 – Ch 1; R2 – Ch 1
 Features of OR T1 – Ch 1
 Types of OR models T1 – Ch 1; R2 – Ch 1
 Principles of OR modeling T1 – Ch 1
 Phases & Processes of OR T1 – Ch 1
 Techniques or tools of OR T1 – Ch 1; R2 – Ch 1
 Limitations of OR
Linear Programming ( Formulation & graphic
methods) T1 – Ch 2
 Meaning & definition of LP T1 – Ch 2
 Basic requirements & assumptions of LP T1- Ch 2
5  Applications of LP methods T1 - Ch 2;
 Solution procedure of LPP T1 – Ch 2
 Formulation of LPP T1 – Ch 2/R3 –Ch 3
o Maximization problems
o Minimization problems
o Graphical problems
 Merits & Demerits of LPP
LPP Simplex Methods T1: Ch 3; R3 : Ch 4
4  Maximization problem
 Minimization Problem
 Mixed constraints
 Special cases like
o unbounded problems
o infeasible problems
o Multiple Optimal Solutions
o Redundant Constraints

4 Duality T1 : Ch 4; R1: Ch 9
 Introduction
 General framework of duality
 Rules for constructing the Dual Problem
 Interpreting the Primal Dual relationship
2 Sensitivity Analysis R1: Ch 12; R2: Ch 2 ; R3:
Ch 6
 Transportation Problems T1: Ch 7; R1: Ch 13; R2:
5  Introduction, meaning & definition Ch 3
 Assumptions of Transportation Model
 Steps to find optimal solution
 Methods for initial basic feasible solution
o North west corner method
o Least cost entry method
o Vogel’s approximation method
 Optimality test
o Stepping stone
o MODI method
 Special cases like
o Unbalanced problem
o Degeneracy
o Redundant constraint
1 Transshipment problems R3: Ch 7

5 Assignment models T1: Ch 6 ; R1: Ch 14

 Introduction
 minimization problem(Hungarian method)
 maximization problem
 traveling salesmen problem
 un-balanced assignment problem
 air crew assignment
 prohibited assignment or constrained assignment
problem
3 Replacement models T1: Ch 8 ; R1: Ch 11; R2:
 introduction Ch 8
 types of replacement
o replacement policy for items deteriorating
with time
o RP for items deteriorating with time +
money value also changes
o RP for items breaking down suddenly
o Staff replacement
o Other misc. replacements
3 Queuing theory T1: Ch 9; R3: Ch 20
 Introduction
 Features of queuing system
 Service system
 Queuing situation
 Notations
 Queuing models
o Probabilistic
o Deterministic
o mixed
3 Inventory control T1: Ch 10; R1: Ch 10; R2:
 introduction Ch 5; R3: Ch 15
 types of inventories
 terminologies connected with IC
 objectives of IC
 scope of IC
 deterministic models of IC
2 Dynamic programming problem(DPP) T1: Ch 5; R3: Ch 18,19
 introduction
 features of DPP
 computational procedure of DPP
 types of DPP
4 Game theory T1: Ch 11; R1: Ch 17; R3:
 introduction 14
 significance of game theory
 essential features of game theory
 limitations of game theory
 payoff matrix
 competitive game
 saddle point
 types of strategy
o pure strategy
o mixed strategy
 the maximin-minimax principle
 types of problems
o games with pure strategy
o games with mixed strategy
5 Network analysis-PERT & CPM T1: Ch 12; R1: Ch 16; R2:
 introduction 4; R3: Ch 8
 objectives of Network analysis
 applications of network analysis
 terminologies used
 errors in network logic
 rules to frame network
 determination of critical path by CPM
 slack & float
 PERT
 Merits & demerits of PERT
 Limitations of CPM
 Comparison b/w CPM & PERT
 Project cost analysis
 crashing of jobs
 allocation of resources
 disadvantages of networking techniques
2 decision making R3: Ch 13
 decision under uncertainty
 decision under risk
 Decision tree analysis.
 Text Book Authors Name of the Book
T1 Chawla, Gupta, Sharma Applied Operations Research
(PTU)

References Authors Name of the Book

R1 P.K. Tripathi Operations Research
R2 C.K. Mustafi Operations Research methods
and Practices
R3 Wayne L.Winston Operations Research
Applications and Algorithms.
Note: The distribution of 40 marks for the internal assessment will be as follows:
 Mid semester test (MST) will be of 12 marks.
 Two Assignments will be of 4 marks each (i.e. 4*2=8 marks).
 Class participation will be of 4 marks.
 Class tests will be of 4 marks.
 Class presentation will be of 8 marks.
 Attendance will be of 4 marks.