MA ECONOMICS SEMESTER IV - 2019 ADMISSION

Course Name

Operations Research

Type of Course

Elective

Course Code

KNM21E05

Course Summary & Justification

Operations researchers focus on making specific decisions and economists study the consequences of different market structures and policies through an assumption of rational decision making. Both groups are interested in understanding rational decision making and the consequences of rational decisions.

After successful completion of the course, students will be able to understand importance of optimization of industrial process management, apply basic concepts of mathematics to formulate an optimization problem and analyze and appreciate variety of performance measures for various optimization problems.

Semester

4

Credit

4

Total Student Learning Time

(SLT)

Learning Approach

Lecture

Tutorial

Practical

Others

Total Learning Hours

Virtual learning Collaborative learning Blended learning

65

5

-

50

120

Pre-requisite

NIL

As per the requirement of the course

Others- Library, seminar and assignment preparations, tests.

CO

No.

Expected Course Outcome

Learning Domains

PSO No.

Upon completion of this course, students will be able to;

1

Identify and develop Operations Research models from the written description of the real system/situation.

U,A

5

2

Understand and apply the appropriate mathematical tools

U, An

5, 7

needed to solve optimization problems, involving the economic allocation of limited resources, by choosing a particular strategy to achieve the desired objectives.

3

Formulate a given simplified description of a real-world problem as a linear programming model. Solve a 2-dimentional linear programming problem graphically and by Simplex method.

C

5,8

4

Propose the best strategy using decision making methods under uncertainty and game theory.

E, C

5,8

5

Apply linear programming in the area of physical distribution of goods/services from several origins to several destinations in a way to minimize the total cost of transportation.

A

5, 7 ,8

6

Apply Hungarian method to assign a number of resources to an equal number of activities so as to minimize total cost of maximize total profit of allocation.

A

5,7

7.

Use Simulation techniques to experiment on a model of a real situation without incurring the costs of operating on the system.

U,An,A

5

8.

Use CPM and PERT techniques, to plan, schedule and control project activities.

U,An,A

5

*Remember (R), Understand (U), Apply (A), Analyse (An), Evaluate (E), Create (C), Skill (S), Interest

(I) and Appreciation (Ap)

Hrs

CO.No.

UNIT 1 – Introduction to Operations Research

7 Hrs

1.1

Operation Research approach, , history of Operations Research scientific methods.

3

1

1.2

Introduction to models and modeling techniques - general methods for Operation Research models.

2

1

1.3

Methodology and advantages of Operation Research

2

1

UNIT 2 - Linear Programming (LP):

16 Hrs

2.1

Introduction to LP and formulation of Linear Programming problems

4

2,3

2.2

Graphical solution method, alternative or multiple optimal solutions, Unbounded solutions, Infeasible solutions

5

2,3

2.3

Maximization – Simplex Algorithm, Minimization – Simplex Algorithm using Big-M method, Two phase method

5

2,3

2.4

Duality in linear programming, Integer linear programming. (An introduction to the concept)

2

2,3

UNIT 3- Transportation & Assignment Problems:

17 Hrs

3.1

Introduction to Transportation problems

2

1

3.2

Various methods of Transportation problem —North west corner rule, Least cost method, Vogel’s Approximation method

3

5

3.3

Variations in Transportation problem—Unbalanced supply and demand, Degeneracy, Maximization transportation problem, Prohibited transportation routes.

5

5

3.4

Introduction to Assignment problems—Hungarian Method

4

6

3.5

Variations in Assignment problems –unbalanced assignment problem, Travelling salesman problem.

3

6

UNIT 4 – Network Analysis

14 Hrs

4.1

Network definition and Network diagram

3

8

4.2

Probability in PERT analysis

3

8

4.3

Basic concept of Floats, Critical path method(CPM)

3

8

4.4

Project time cost trade off—Crashing of a project

4

8

4.5

Introduction to resource smoothing and allocation.

1

8

UNIT 5 – Queuing Models:

10 Hrs

5.1

Concepts relating to queuing systems, basic elements of queuing model, role of Poisson & exponential distribution.

2

2,4

5.2

Basic Concept of Simulation-- Monte Carlo Simulation

3

7

5.3

Sequencing Problems

2

2,4

5.4

Game theory: Saddle Point, Mixed strategy, Dominance Rule.

3

2,4

Teaching and Learning Approach

Classroom Procedure (Mode of transaction)

Authentic learning, case-based learning, collaborative learning, seminar, group activities.

CD

Course Delivery methods

CD1

Lecture by use of board and online mode

CD2

Tutorials/Assignments

CD3

Seminars

CD4

Self-prepared instructional videos (during online mode)

CD5

Teaching aids ( videos from youtube)

CD6

NPTEL materials (MOOC)

Assessment Types

Mode of Assessment

·           Continuous Internal Assessment (CIA)

·           Seminar Presentation – Any topic which forms theoretical background is identified to prepare a paper and present in the seminar

·           Assignments

·           End Semester examination

 Course Outcome

 Course Delivery Method

CO 1

CD1 , CD 5

CO 2

CD1, CD6

CO 3

CD1, CD2, CD4, CD5, CD6

CO 4

CD1, CD2, CD4, CD5, CD6

CO 5

CD1, CD2, CD4, CD5, CD6

CO 6

CD1, CD2, CD4, CD5, CD6

CO 7

CD1, CD2, CD4, CD5, CD6

CO 8

CD1, CD2, CD4, CD5, CD6