MS/ M.

Phil Supply Chain

Management

D R . M UHA MMA D S H A FI Q
D I R E C TO R

S U P P LY C H A I N A N D P RO J E C T M A N AG E M E N T C E N T R E
FAC U LT Y O F Q UA L I T Y A N D I N D U S T R I A L S YS T E M S E N G I N E E R I N G
U N I V E R S I T Y O F T H E P U N JA B
Agenda
Orientation
Class Representative
Time Table
Curriculum overview
Rules & Regulations
Program Objectives
To provide supply chain leaders by offering relevant and contemporary supply
chain management related education.
To prepare professionals to meet the needs of all public and private sectors for
supply chain, logistics, and inventory professionals.
To provide relevant theoretical and practical courses linked to the solution of
real-world supply chain management related problems.
To extend the supply chain management research and service capabilities to
the public and private organizations.
Assessment and Examinations
Sr. No. Elements Weightage

1 Mid-Term Exam. 35%

Sessional Marks (Assignments, Presentations, Quizzes, Term Project 25%
2
etc.)
3 End-Term Exam 40%
Rules & Regulations
Attendance to appear in exam: 75%,
Re-sit policy
At the end of the first semester a student must obtain a minimum Grade Point average (GPA) of 2.50
to be promoted to the second semester. In order to qualify a course GP 2.30 required
In case a student is able to obtain GPA of 2.30 or more but less than 2.50 he / she will be promoted to
the second Semester on probation. The candidate, who fails to secure 2.30 GPA in the first Semester
shall stand automatically dropped from the rolls
At the end of the second semester, a student must obtain a minimum Cumulative Grade Point
Average (CGPA) of 2.50 and must also pass at least 50% of the courses offered by him / her in order to
be promoted to the third semester. If any of the preceding two conditions is not complied with by a
student then he / she shall be removed from the rolls of the Departments / Centres / Institutes /
Colleges / School
A student will also be required to repeat those courses in which he/she had failed and maintains
CGPA of 2.50 failing which his / her name will be removed from the Departments / Centres / Institutes
/ Colleges / School
Only those students who scored CGPA = 2.5 will be awarded MS/ [Link]. Degree
OPERATIONS RESEARCH
 Marks Distribution
Class Project

Class Project
Mid Term Examination 35
Assignments/Quiz 25
Class-project/Paper
Final Exam 40
Total marks 100
 What is Operations Research (OR)?
 Optimal decision-making in, and modeling of, deterministic and probabilistic systems that originate from real life.
These applications, which occur in government, business, engineering, economics, and the natural and social
sciences, are largely characterized by the need to allocate limited resources. In these situations, considerable insight
can be obtained from scientific analysis, such as that provided by Operations Research.
(Hiller–Lieberman).

TECHNIQUES

Stochastic Meta-heuristics
Deterministic OR Heuristics
OR (OR/MS)
o Linear Programming o Queuing Theory o Problem Based o Simulated Annealing
o Integer Programming o Decision Theory o Neural Network
o Network Analysis o Monte Carlo Markov Chain o Genetic Algorithms
o Dynamic Programming o Markov Decision Process o Ant Colony Optimization
o Non-linear Programming o Simulation o …
o… o … 12
 OPERATIONS REASECH APPROACH

SYSTEM Vs Its MODEL

REAL  SIMPLIFICATION MODEL

SYSTEM  ABSTRACTION
 ASSUMPTIONS

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 MODEL & Its TYPES
MODEL: A model is a representation of the structure of a real life system.
◦ In general, models can be classified as fellows:
◦ Iconic models: Exact physical representation and may be larger or smaller than what it represents e.g Picture
◦ Analogue models: Analogy
◦ Symbolic models

SYMBOLIC MODELS: Symbolic (i.e., algebraic, numerical, logical) models represent the
properties of the real life system through the means of symbols, mathematical equations,
computer programs and simulation models are also symbolic models.
◦ DETERMINISTIC MODELS: Deterministic models are models which do not contain
the element of probability. Deterministic models involve optimization.
◦ STOCHASTIC MODELS: stochastic models are models which contain the element of
probability. Stochastic models characterize/estimate system performance.

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 Operations Research: Topics

o Deterministic models:
o Decision making models:
o Linear Programming (LP)
o Decision analysis
o Integer Programming (IP) o multi-criteria and multi-objective decision making
o Dynamic Programming (DP) (e.g. AHP, GP etc.), and
o Network Programming (NP) o game theory
o Non-Linear Programming (NLP)
o Goal Programming (GP)
o Programming: planning of activities
o Stochastic models:
o Stochastic Programming
o Markov chain
o Monte Carlo Markov Chain
o Queuing theory
o Markov decision processes, and simulation
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Optimization is part of Operation Research

Operations Research (OR) is an interdisciplinary branch of applied mathematics

and formal science that uses methods like mathematical modeling, statistics, and
algorithms to arrive at optimal or near optimal solutions to complex problems.
• Initiated during the World War II by British and US Military
• Logistics (supply-chain management)

• Entered into civilian sector after the war:

• Manufacturing
• Transportation
• Logistic
• Finance
• Health Care
Optimization
What does optimization mean?
To obtain best result under given circumstances
To find out inputs providing best outputs
Maximization, Minimization………Optimization
e.g. allocation of resources (material, machines, men)
Categories Optimization
Local Optimization
Global Optimization
Why to Optimize?
Individuals
(shopping, time utilization)
Organizations
(Allocation of scarce resources) e.g. Supply chain
Constraint
A limitation/ restriction/ given circumstance
Resources (cash in hand) to buy a car/ house
Types:
Financial
Technical
Social
etc
Applications
Sourcing Operations
Financial Management
Production Planning
Marketing
Transportation Planning
E-business
System Design
Manufacturing
Health Care
Travelling
Write 03 examples from
Cooking daily life
Types of Optimization Problems

 Constrained optimization problems

 Unconstrained optimization
problems
Decision making
Objective
Constraints
Assumptions
Alternatives
Scope/imitations
Solution types
Feasible (satisfy all constraints)
Suboptimal
Optimal (best feasible)

Sub-optimization: conflicting individual objectives

Tractability and Validity
Tractability: degree to which the model admits convenient analysis, how much analysis is
practical
Validity: degree to which inferences drawn can be used for real system
Steps for Optimization Study

1. To Define Problem
◦ Objectives
◦ Alternatives
◦ Constraints
◦ Scope/ Limitations

2. Model development
◦ Physical
◦ Mathematical
◦ Simulation
 Phases of Optimization Study Cont.
3. Solving the Model
◦ Standard mathematical techniques
◦ Heuristics
◦ Meta heuristic
◦ Simulation
◦ Sensitivity Analysis (Observe the behavior of optimum solution under parametric change)

4. Verification and Validation

◦ The proposed model fulfill the objective for which it has been developed?

5. Implementation of the Solution

◦ Translate results into understandable operating instructions
 Mathematical model
Collection of variables and relationships needed to describe important features of the problem
Applications
1. Product mix problem
2. Blending problem
3. Diet problem
4. Shortest path problem
5. Vehicle routing problem
6. Location selection
7. Production planning
8. Inventory management
Solving Optimization Models

Exact algorithm (always optimal)

that always solve an optimization problem to optimality unless NP
Heuristics algorithm (optimality not guaranteed)
a technique designed for solving a problem more quickly when classic methods
are too slow, or for finding an approximate solution when classic methods fail to
find any exact solution
Metaheuristic algorithm (Search technique)
Iterative generation process which guide subordinate heuristic by combining
intelligently different concepts of exploring and exploiting the search space
Balance between explore and exploit
Metaheuristic algorithm
Search technique
Iterative generation process which guide subordinate heuristic by combining intelligently
different concepts of exploring and exploiting the search space
Balance between explore (diversification) and exploit (intensification)

Why to use?
Exact algorithms has unattractive features to solve large problems
Simplicity, robustness, flexibility
Deterministic vs stochastic
Deterministic: values of all parameters are assumed to be known with certainty
Stochastic: contain probability/ uncertainty
Stakeholders
1. Tool makers
2. Analysts
3. Users
Evolutionary algorithms
Multiobjective optimization: Mono, Bi, Multi (to be solved simultaneously)
Multimodal optimization: Multimodal optimization problem is an optimization problem with
more than one global and local solution. Optimization concerned with finding different good
solutions (preferably local optima) when optimizing multimodal functions
Constrained optimization: Having constraints
Combinatorial optimization: Finding an optimal object from a finite set of objects. Operates on
those problems where solution set is either discrete or can be reduced to discrete. Travelling
salesman problem, Minimum spanning tree problem
Common features of EA
1. Population based
2. Fitness driven
3. Variation driven
Class Project
1. Formation of groups
2. Problem identification
Thanks… Questions