Operations Research

Operations Research

1. Queuing and simulation models

   • Determine measures of performance of waiting lines
     • Average waiting time in queue
     • Average waiting time in service
     • Utilization of service facilities
   • Queuing models
     • Probability and stochastic models
   • Simulation models
     • Imitates the behavior of the real system

2. What ar OR models?

   • Main components of OR models
     • Alternatives
     • Restricitions
     • Objective criterion
   • Continuous Variables
     • Infinite alternatives
     • Sense trends
   • General OR format
     • Maximize or minimize objective function subject to constraints

3. Art of modeling

   • Applications involve approximations
   • Abstract of assumed real world
   • Example: Tyko Manufacturing Company
     • Variables on level of production
       • Production Department
         • Production capacity (av machine and labor hours)
         • In-process inventory
         • Quality control standards
       • Materials Department
         • Available stock of raw materials
         • Delivery schedules
         • Storage limitations
       • Sales Department
         • Sales forecast
         • Capacity of distribution facilities
         • Effectiveness of ad campaign
         • Effect of competition
     • Determine size of production batch