AC – 28/03/2025

Item No. – 6.2 (N) (5c) Sem. III

As Per NEP 2020

University of Mumbai

Syllabus for
Basket of OE
Vertical 3
Faculty of Science
Board of Studies in Statistics
UG Second Year Programme
Semester III

Title of Paper Credits 2

I) Optimization Techniques-I 2 credit

From the Academic Year 2025-26

 Semester-III
Optimization Technique-I

Description the course:

Including but not limited to:
Introduction: Optimization Technique is a field of study that involves using mathematical
models, algorithms, and analytical methods to optimize decision-making processes. In
business, Optimization Technique is applied to improve supply chain management,
production processes, inventory management, risk management, and more. As a sub-field
of Applied Operations Research, it has a very interesting position alongside other fields as
Data Science and Machine Learning. The program has some unique features like applying
analytical methods to help make better management decisions. Operations Research (OR),
commonly known as OR, is a scientific study that involves using mathematical and
statistical techniques to solve complex business problems. Its scope is vast in the present
business landscape, and it plays a crucial role in decision-making and problem-solving
across various industries.

Application, and Demand:

Linear Programming Problems (LPP)
LPP can be used in various fields like Production planning, Manufacturing, transportation,
sports, share market, engineering, machine learning etc.
Transportation and Logistics
Optimization Techniques can be used to optimize transportation and logistics, which
includes determining the best routes for transportation, minimizing travel times, and
maximizing the use of transportation resources.
Healthcare
Optimization Techniques can be used to optimize healthcare operations, including
scheduling appointments, managing patient flow, and improving hospital capacity
planning. O.R. models can also be used to optimize medical treatments and patient care.
Finance
Optimization Techniques can be used to optimize financial operations, including asset
allocation, risk management, and portfolio optimization. O.R. models can also be used to
forecast financial markets and predict future trends.

Job Prospects:
Optimization analyst provides accurate, timely and relevant inputs to stakeholders through
complex data analysis, using statistical methodologies and tools. They are in high demand
across various job roles such as Data Analyst, Business Analyst, Operations Manager, Risk
Analyst, Statistician, Management Consultant,

Connection with Other Courses:

Optimization Techniques relates to other courses like Commerce, Applied Economics,
Accounting & Finance, Mathematics, Computer Science, Business Management, and
Medical Science And Technology.
Additional Areas : Optimization Techniques has a wide range of applications and can be
used to solve complex real-world problems. By using mathematical modeling and
optimization techniques, organizations can make better decisions and improve their
operations.

Vertical: Open Elective

Type: Theory
Credits: 2 credits (1 credit = 15 Hours for Theory or 30 Hours
of Practical work in a semester)
Hours Allotted: 30 Hours
Marks Allotted: 50 Marks
Theory (2 Credit)
Total No of Theory Hours: 30
Total Marks : 50

Course Objectives (CO): (List the course objectives)

1. Introducing students to optimization techniques using Linear and non-linear
programming.
2. To learn mathematical formulation and solution of real-life situations using Linear
programming problems.
3. To understand and learn assignment and transportation problems in Business
Models.
4. To learn the application of Optimization Techniques in Real Life Problems.
5. To develop students' critical thinking and problem-solving abilities through the
application of statistical methods in real-world business scenarios.

Course Outcomes (OC): (List the course outcomes)

1. Understanding of fundamental optimization techniques and methods applicable to
business / industrial analysis.
2. Learning to maxima/ minima problems into optimization techniques.
3. Learn the efficient computational procedures to solve optimization problems.

Module 1: Network Analysis: 15 hrs

1.1 Introduction To Operation Research (OR) and Linear 07
Programming Problems (LPP):
Operation Research- Definition, Characteristics of OR,
Application of OR, Limitation of OR
Introduction of LPP, Formulation of LPP (Up to 3 Variables),
Sketching of Graphs of Linear Equation and Linear Inequality,
Solution of LP Problems using graphical method up to two
variables.

1.2 Linear Programming Problems: Simplex Method: 08

Concept of a slack variable, a surplus variable, artificial variable,
L.P. problem in canonical form and standard form.
Definition of a solution, a feasible and infeasible solution, basic
variable and non-basic variable, a basic feasible solution, a
 degenerate and a non-degenerate solution, an optimal solution
Maximization Type Problems. (Only Max. Z). No Minimization
problems. Numerical on Degeneracy in Maximization Simplex
Problems.
Two or Three Decision Variables and Maximum Three
Constraints Problem. (Up to Maximum Two Iterations)
All Constraints to be “less than or equal to” Constraints.
(“Greater than or Equal to” Constraints are not included.)
Big-M method, modified objective function, modifications and
applications of simplex method to L.P.P., criterion for no
solution.

Module 2: Assignment and Transportation Problems 15 hrs

2.1 Assignment Problem: 07

Statement of an assignment problem
Maximization and Minimization Type Problems.
Balanced and unbalanced assignment problem
Relation with T.P.
Optimal solution of an assignment problem using Hungarian
method.

2.2 Transportation problem: 08

Transportation problem (T. P.), statement of T. P., Maximization
and Minimization Type Problems., balanced and unbalance T. P.
Methods of obtaining initial basic feasible (IBF) solution of T.P.
(i) North West corner rule
(ii) Method of matrix minima (least cost method),
(iii) Vogel's approximation (VAM).
MODI method of obtaining Optimal solution of T. P, uniqueness
and non- uniqueness of optimal solutions, degenerate solution.

9 Reference Books
1. Kanti Swarup, Gupta, P.K. and Manmohan (2007): Operations Research,
13th Edition, Sultan Chand and Sons
2. J K Sharma, (1989): Mathematical Models in Operations Research, Tata
McGraw Hill Publishing Company Ltd.
3. S.D.Sharma : Operations Research; Theory, Methods and applications,15th
Edition ,Reprint, Kedarnath
4. Taha, H. A. (2007): Operations Research: An Introduction, 8th Edition,
Prentice Hall of India.
5. J.K.Sharma , (2001), Quantitative Techniques For Managerial Decisions:
MacMillan India Ltd.
6. Vohra N. D.(2006) : Quantitative Techniques in Management, Third edition,
McGraw Hill Companies.
7. Maurice Sasieni, Arthur Yaspan and Lawrence Friedman, (1959): Operations
Research: Methods and Problems, John Wiley & Sons.
8. Schaum Series book in O.R. Richard Broson. Tata Mcgraw Hill Publishing
Company Ltd.
Format of Question Paper:
Internal Continuous Assessment: (20 marks)

Assignment/ Viva Class Test Total

Quizzes, Class Tests, Presentation,
Project, Assignment etc
05 15 20

Semester End Examination: (30 marks)

Semester End Examination will be of 30 marks of 01 hour duration covering entire syllabus of
the semester. All questions are Compulsory.

Theory Question Paper Pattern:

Q1 Attempt any one question out of two questions (Module I and II) Max. marks: 10
Q2 Attempt any two questions out of three questions (Module I) Max. marks: 10
Q3 Attempt any two questions out of three questions (Module II) Max. marks: 10

Sd/- Sd/- Sd/-

Sign of the BOS Chairman Sign of the Sign of the

Dr. Santosh Gite Offg. Associate Dean Offg. Dean
Board of Studies in Dr. Madhav R. Rajwade Prof. Shivram S. Garje
Statistics Faculty of Science & Faculty of Science &
Technology Technology