Chapter Notes

Chapter 1 : Introduction to Operation Research

Organizations face a persistent problem: they have limited resources and multiple ways to use them. A factory has a fixed number of machine hours but can produce dozens of different products. A delivery company has a limited fleet of trucks but must route them across thousands of…

Chapter 2 : Linear Programming Problem

1. Introduction to Linear Programming Linear programming is a mathematical optimization technique used to allocate limited resources among competing activities in the best possible way. It solves the fundamental economic problem of scarcity by providing a systematic method for ma…

Chapter 3 : Transportation and Assignment Problem

The previous unit established Linear Programming as a general tool for allocating scarce resources. However, when a business problem involves moving physical goods across a geographic network, the standard Simplex Method becomes computationally inefficient. A factory shipping pro…

Chapter 4: Queuing Theory

Waiting lines are a universal feature of systems where demand for a service periodically exceeds the capacity to provide it. The mathematical study of these waiting lines forms a major branch of operations research known as queuing theory. This discipline provides the tools to mo…

Chapter 5 : Inventory Control

Every physical product a business sells begins as a collection of materials. Before a customer buys a finished good, the organization must source, store, process, and transport the underlying components. This physical stock represents a massive financial investment. For many manu…

Chapter 6 : Replacement Theory

Every physical asset eventually fails, loses efficiency, or becomes too expensive to keep running. In industrial operations, deciding exactly when to retire a machine and buy a new one is a central economic problem. Replacing an asset too early wastes the capital spent to acquire…

Chapter 7 : Game Theory

In traditional decision models, an individual decision-maker selects an action against a passive environment. The environment does not actively attempt to defeat or outsmart the decision-maker. However, real-world business, military, and economic environments are rarely passive.…