This document presents 15 quantitative techniques and tools: Linear Programming, Queuing Theory, Inventory Control Method, Net Work Analysis, Replacement Problems, Sequencing, Integer Programming, Assignment Problems, Transportation Problems, Decision Theory and Game Theory, Markov Analysis, Simulation, Dynamic Programming, Goal Programming, and Symbolic Logic. It provides a brief overview of each technique, describing its purpose and typical applications.

1. OR TECHINQUES or TOOLS
PRESENTED BY
LIJIN MATHEW
B1 MBA

2. Techniques
1. Linear Programming
2. Queuing Theory
3. Inventory Control
Method
4. Net Work Analysis
5. Replacement Problems
6. Sequencing
7. Integer Programming
8. Assignment Problems
9. Assignment Problems
10. Transportation
Problems
11. Decision Theory and
Game Theory
12. Markov Analysis
13. Simulation
14. Dynamic Programming
15. Goal Programming
16. Symbolic Logic

3. Linear Programming
 Linear programming technique is used to find
solution for optimizing a given objective
 objectives may be
 maximizing profit, minimizing cost, etc
This technique is used to allocate scare resources in
an optimum manner in problems of scheduling
,product mix, etc

4. Queuing Theory
 It is also called waiting line theory
 This theory deals with the situations in which queue is
formed
eg: customers waiting for service, machines waiting for
repairmen, aircraft waiting for landing, etc
 It aims at minimizing the overall cost due to servicing and
waiting
 This technique is used to add new facilities to reduce the
cost of waiting time

5. Inventory Control Method
 It aims at optimizing inventory levels
 Inventory planning answers two question
how much to buy and when to buy

6. Net work Analysis
 Net work are very popular and widely used quantitative technique
 This model helps the managers to plan, schedule, monitor and control
large projects, such as construction of building, making a ship, etc
 It helps the managers to determine total project completion time,
probability that a project will be completed by a certain date, least cost
way of shortening total project completion time, etc
 Program Evaluation Review Technique(PERT), Critical Path Method(CPM),
Gantt chart are coming under net work analysis

7. Replacement Problems
 It concerned with the situations arise when some
items such as men, machine, electric bulbs, etc
require replacement due to their decreasing
efficiency, failure or down
 It solves the replacement problems such as
decisions regarding replacement in cost, return, etc.

8. Sequencing
 This model developed to find a sequence for
processing a job, so the total elapsed time for all the
jobs will be minimum
 It also helps to resolve the conflict between the
objectives of maximizing machine utilization and
complying with predetermined delivery dates

9. Integer Programming
 Integer means complete or whole number
 One Important limitation of linear programming model is
the assumption that all the variables can take any value, may
be decimal or fraction
 When figures are rounded off the solution will be poor
 By using integer programming algorithm a series of
continuous linear programming problem solved in such a
way that the solution containing unacceptable non-integer
value are ruled out and the best higher programming
solution is obtained

10. Assignment Problems
 Special type of linear programming
 it deals with allocating the various resources to
various activities in such a way that the time or cost
involved is to be minimized; sale or profit is
maximized

11. Transportation Problems
 It deals with transportation of a product from a
number of sources with limited supplies to a
number of destinations with specified demands at
the minimum transportation cost
 Aims to minimize the transportation cost

12. Decision Theories and Game Theories
 Decision theory is primarily concerned with decision making under
the conditions of risk and uncertainty
 Game theory is concerned with decision making under conflict
 The decision maker is to identify the best for situation
 In decision theory we can use decision tables and decision trees,
which can be used to graphically represent and solve decision making
problem
 The game theory assist the decision maker to have the knowledge of
courses of action available to his opponent

13. Markov Analysis
 Markov analysis permits one to predict changes over time
when information about the behavior of a system is known
 It is based on probability theories
 It allows a manager to determine future market share both
in the short run and long run
 If current situation is known, along with the propensity of
the system to change over time, it is possible to use Markov
analysis to predict future conditions

14. Simulation
 All real life problems cannot be stated in mathematical form
 Simulation is a general technique that allows us to develop
a dynamic model that acts like a real process
 Developing a good simulation model is difficult but
simulation allows us to solve problems that are difficult or
impossible to solve otherwise

15. Dynamic Programming
 It is introduced when the problems occur which have multi
faced solutions
 Here all possible results are analyzed and the best solution
is selected
 For solving each practical problem of specific dynamic
programming, separate algorithm has to be developed
 in dynamic programming computational work is reduced
considerably

16. Goal Programming
 In linear programming it focus on single objective and rest
are taken as less important
 In real practice there may be number of important
objectives
 Charles and Cooper developed “Goal programming in 1961”
 In this several objective functions are considered, Each
objective function has a fixed value called “target”
 Goal Programming model is used to minimize deviations
from these “targets”

17. Symbolic Logic
 Symbols are more meaningful and accurate
 The whole problem is converted into algebraic equations
and propositions
 Business problems are not commonly converted into
symbols, but calculations are done on computers
15

18. Techniques
1. Linear Programming - solution for optimizing a given objective
2. Queuing Theory – to minimize the cost for queue
3. Inventory Control Method – optimizing inventory levels, when to buy and
how much to buy
4. Net Work Analysis - used to predict work completion time of large project
5. Replacement Problems – helps to take decisions regarding replacement
6. Sequencing – develop a sequence of process to do a job, minimize time
7. *Integer Programming – unacceptable non integer values are ruled out
8. Assignment Problems – allocating various resources to various activities
9. Transportation Problems – to minimize the transportation cost of a product

19. Cont……
10. Decision Theory and Game Theory – decision making under risk and
uncertainty, in conflict situations respectively
11. Markov Analysis – allows predict future market
12. Simulation – developing dynamic model to solve real life problems
13. Dynamic Programming – multi faced solutions, selecting best one
14. *Goal Programming- several objectives “target” minimize deviation from
it
15. Symbolic Logic – using symbols, problem is converted into algebraic
equations and propositions