Operational Research – Detailed Notes for 5-Mark Questions
1. Definition of Operational Research (OR)
Operational Research (OR), also known as Operations Research, is a discipline that deals with the
application of analytical methods to help make better decisions. It uses mathematical models, statistical
analysis, and optimization techniques to solve real-life complex problems. OR is widely used in planning,
decision-making, and problem-solving in business, engineering, and military operations. It helps in finding
the best possible solution when resources like time, money, and manpower are limited.
2. Characteristics of a Good OR Model
A good Operational Research model should have the following features: • Simplicity – The model should
be easy to understand and use. • Accuracy – It must represent the real-world situation closely. • Flexibility
– It should allow changes in input without altering the structure. • Reliability – The model should give
consistent and dependable results. • Cost-effectiveness – It must offer solutions without being too
expensive or time-consuming. • Mathematical soundness – It should be based on correct mathematical
and logical principles.
3. Applications of Operational Research
Operational Research is applied in various fields to improve decision-making: • In industry – For
production scheduling, resource allocation, and inventory management. • In transportation – For route
optimization, vehicle loading, and delivery scheduling. • In healthcare – For hospital resource allocation,
appointment scheduling, and treatment planning. • In finance – For portfolio management and risk
analysis. • In defense – For planning logistics, strategies, and troop movement. • In marketing – For
product mix decisions, pricing, and sales forecasting.
4. Advantages of Operational Research
OR offers several benefits to organizations and decision-makers: • It ensures optimal use of scarce
resources. • Helps in choosing the best course of action among alternatives. • Improves productivity and
operational efficiency. • Minimizes cost and maximizes profit or output. • Provides logical and scientific
support to decisions. • Reduces human bias in decision-making through mathematical models.
5. Slack and Surplus Variables
Slack and surplus variables are used in linear programming to convert inequalities into equalities. • Slack
variable: Added to a ≤ constraint. It shows the unused portion of a resource. For example, if the maximum
labor hours available are 100, and only 80 are used, the slack is 20 hours. • Surplus variable: Subtracted
from a ≥ constraint. It shows how much the requirement has been exceeded. For example, if the
minimum production required is 60 units and actual production is 75 units, the surplus is 15 units. These
variables help in solving problems using the Simplex method.
6. Standard Form of Linear Programming Problem (LPP) and its Characteristics
A Linear Programming Problem (LPP) in standard form has: • A linear objective function (to maximize or
minimize). • Subject to linear constraints (in the form of equations). • All variables are non-negative.
Example: Max Z = 3x + 2y Subject to: 2x + y ≤ 6 x + y ≥ 3 x, y ≥ 0 Characteristics of LPP: • Linearity –
Both objective function and constraints are linear. • Additivity – Total effect is sum of individual effects. •
Non-negativity – Decision variables cannot be negative. • Deterministic – All data is known with certainty.
• Feasibility – There exists at least one solution that satisfies all constraints.
7. Transportation Problem – Definition with Example
The Transportation Problem aims to determine the most efficient way to distribute goods from several
sources (e.g., factories) to several destinations (e.g., warehouses) such that the transportation cost is
minimized. Example: Suppose Factory A can supply 100 units, Factory B can supply 150 units.
Warehouse X needs 120 units, Warehouse Y needs 130 units. Transportation cost between each source
and destination is known. The goal is to minimize total cost while meeting all supply and demand.
8. Mathematical Formulation of Transportation Problem
Let there be 'm' sources and 'n' destinations. Let ai be the supply at source i, and bj the demand at
destination j. Let cij be the cost to transport one unit from source i to destination j. Let xij be the number of
units transported from i to j. Objective: Minimize total cost: Z = ΣΣ cij·xij Subject to: Σ xij = ai (supply
constraints) Σ xij = bj (demand constraints) All xij ≥ 0
9. Unbalanced Transportation Problem with Example
When total supply ≠ total demand, the problem is called unbalanced. It must be balanced before solving
by adding a dummy source or destination. Example: Supply: A = 80, B = 70 → Total = 150 Demand: X =
60, Y = 50 → Total = 110 To balance, add a dummy destination with demand = 40 and zero cost. This
allows the problem to be solved using standard methods.
10. Initial Basic Feasible Solution (IBFS) and Optimal Solution in TP
Initial Basic Feasible Solution (IBFS): It is the first solution that satisfies all supply and demand
constraints in a transportation problem. Methods to find IBFS: • North-West Corner Rule • Least Cost
Method • Vogel’s Approximation Method Optimal Solution: Once IBFS is found, further optimization (e.g.,
using MODI method) is done to find the solution with the minimum total cost. The optimal solution is the
one where no further reduction in cost is possible.
