Welcome To HR 5341: Operations Research In Health Administration

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Welcome To HR 5341Operations Research In Health
Administration

• My Name is Dr. Ram Shanmugam
• Office 262 Health Science Building
• Phone [phone]
• E-mail Ram.Shnamugam_at_swt.edu
• FAX [phone]

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SyllabusCourse Outline for the
SemesterPlease do not hesitate to ask any
question !Please look at the handout and save
it until the semester forcourse description,
rationale, objectivesGrading policy, homework,
testsclass participation attendance
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Text BookAnderson, David R., Sweeney, Dennis
J., and Williams, Thomas A., An Introduction to
Management Science Quantitative Approaches to
Decision Making, South Western College
Publishing, Cincinnati, Ohio 2000.
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Software Grading Policy

• Management Scientist
• Microsoft Excel
• SAS
• MATLAB

• For Grade
• Homework 40
• Midterm Test 20
• Project 20
• Final 20

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Project

• Written version is due before you present it to
  the class
• You will have 15 minutes to present the project
  to the class

• Work on an application area of interest to you
• Select a topic in OR and apply it
• About 10 pages of excellent writing and good
  content

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Importance, Limitations Scope of OR/Management
Science

• History of OR Dantzig, 1947
• Problem solving steps
• Define the problems
• ?
• Find the solutions
• ?
• Are criteria satisfied?
• ?
• Implement the solution
• ?
• Evaluate the Consequences

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What is Operations Research?

• Maximize the profit
• Minimize the production cost
• Find the best scheduling
• Compare the efficiency of different hospitals
• How many items to store?
• How to reduce the waiting time?
• Decision making in an uncertain world
• Forecast the future!

• Tools to use
• linear programming
• graphs
• probability
• statistics
• time series methods

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Problem Solving Steps

• Define the problem
• Formulate in LP framework
• Define optimality
• Find optimal solution interpret it
• Implement the solution
• Evaluate the consequence of the optimality

• Decision Making
• multiple criteria
• Single criteria
• Variables are
• controllable decision variable
• uncontrollable
• deterministic
• stochastic
• Feasible Vs Nonfeasible solution
• Slack versus Surplus variables

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Details

• Decision making is often based on Single or
  multiple criterion
• Models are iconic or analog
• Variables are
• Decision variable controllable
• Deterministic variable known type
• Stochastic unknown type

• Solutions are
• feasible or infeasible
• Unused amount is called Slack Variable
• Amount over the minimum requirement Is called
  Surplus variable

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Example

• Cost function
• C(x) 1000 30x
• Revenue function
• R(x) 40 x
• Profit function
• P(x) 10 x - 1000
• Break even
• find x so that P(x) 0
• Optimal solution xgt100

• graph

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Primal versus Dual Linear Programming

• Primal 18 page 22
• Max 6x 4y
• Subject to
• 50 x30ylt80000
• 50 x 0ylt50000
• 0 x30 y lt45000
• Where xgt0, ygt0

• Dual
• Min 80000 U50000 V 45000 W
• Subject to
• 50 U50V0Wgt6
• 30 U0 V30Wgt4

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Case Study Example Advertising Strategy

• Let T television ad
• R radio ad
• Max 600 T 200 R
• Subject to
• 1T1Rgt30
• 1Rlt25
• 1Rgt1T
• 1200T300Rlt25500
• Tgt0, Rgt0