Applications of Operations Research and Management Science Case Stud

This book includes case studies that examine the application of operations research to improve or increase efficiency in industry and operational activities. This collection of “living case studies” is all based on the author’s 30-year career of consultin

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G.S.R. Murthy

Applications of Operations Research and Management Science Case Studies

International Series in Operations Research & Management Science Volume 229

Series Editor Camille C. Price Stephen F. Austin State University, TX, USA Associate Series Editor Joe Zhu Worcester Polytechnic Institute, MA, USA Founding Series Editor Frederick S. Hillier Stanford University, CA, USA

More information about this series at http://www.springer.com/series/6161

G.S.R. Murthy

Applications of Operations Research and Management Science Case Studies

123

G.S.R. Murthy Indian Statistical Institute Hyderabad, India

ISSN 0884-8289 ISSN 2214-7934 (electronic) International Series in Operations Research & Management Science ISBN 978-3-319-17920-9 ISBN 978-3-319-17921-6 (eBook) DOI 10.1007/978-3-319-17921-6 Library of Congress Control Number: 2015939080 Springer Cham Heidelberg New York Dordrecht London © Springer International Publishing Switzerland 2015 This work is subject to copyright. All rights are reserved by the Publisher, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed. The use of general descriptive names, registered names, trademarks, service marks, etc. in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use. The publisher, the authors and the editors are safe to assume that the advice and information in this book are believed to be true and accurate at the date of publication. Neither the publisher nor the authors or the editors give a warranty, express or implied, with respect to the material contained herein or for any errors or omissions that may have been made. Printed on acid-free paper Springer International Publishing AG Switzerland is part of Springer Science+Business Media (www. springer.com)

To my late parents G. S. Acharyulu and Kanakavalli

Foreword

I, myself, am an alumnus of the Indian Statistical Institute (ISI). I studied in their M. Stat. program between 1955 and 1957 and learnt my early reasoning and mathematical skills during those years. I became acquainted with the “operations research (OR)”, a new subject being developed around that time, in lectures at ISI by a visiting American faculty under a United Nations Visiting Faculty Program. I learnt about the “travelling salesman problem (TSP)” in one of those lectures and found it so challenging that I kept thinking about ways for solving it. The director of the SQC & OR Division of ISI at that time, Mr. S. C. Sen, saw my preoccupation with the TSP and encouraged me to apply for the Fulbright Travel Grant for a year’s study at an American university, just being introduced a