The solution of Minimization in operations research (also known as optimization) for our advantage in any scenario let it be transportation, resources, cost. This involves Initial solution to the given balanced Transportation Problems or Resource Allocation or Cost Allocation problem. This is known as Initial Basic Feasible Solution (IBFS). It is required to derive an initial feasible solution; the only requirement is that the destination needs be met within the constraints of source supply.
What are the different methods to find Initial Basic Feasible Solution IBFS
1. North-West Corner Rule (NWCR)
2. South-East Corner Rule (SECR)
3. Row Minima Method (RMM)
4. Column Minima Method (CMM)
5. Matrix Minima Method (MMM) or Least cost Method (LCM) or Inspection Method.
6. Vogel’s Approximation Method (VAM) or Vogel’s Method of Penalty
The most commonly used being NWCR. A sample diagram depicts the same here:
Operations research is an application of scientific & mathematical methods by management to study & analyse real time problems to make better decision making which involves situations, scenarios, systems based on analytical methods in Business, Industry, Sectors, Government Functions and Enterprises.
So, what exactly is operations research?
Let us understand with a simple example, what operations research strategy can be.
Imagine a situation where you are booking airline ticket and you have board it onto the aero plane. Just to realize that your neighbor on the flight very same flight, has booked at least $200 less than the original price what you paid for the same very ticket. How did the system come up with such a different price for two different seeds right next to each other?
The answer to this is Operations Research maximizing the profitability. If your still not convinced with the previous dialogue let’s take another scenario.
Operations Research applied in Airline Ticketing Industry
For example, let’s say you are running a retail shop. How do you determine how many sales people should be there on any given day in your outlet? Should I simply look on a weekly basis, should I look daily or should I look on monthly basis? Should I be even looking at the seasons of the year and accordingly choose how many sales people should be working?
The answer to the above all questions will pop up from the Operations Optimization also known as Resource Optimization.
Operations Research applied in Retail Industry
Solve the Operations Research Case Study:
Let us imagine a company like GlobalSkillup.com. A pioneer in management training and certification across countries. Primary nature of the companies is to sell professional courses and certification training to the mid-level and senior management professionals. The management wants to fill up the seats for every batch of the training they offer in every Type of Course, Mode of Training, City, Country and Month. The options are limitless.
To do this, management decides to give the very same problem to the operations research, such that they come up with the more optimal way of utilizing the Limited Budget and drive the Maximum seat filling across all the Training programs.
Imagine suitable hypothetical data tables to solve the problem.