OPERATIONS RESEARCH
CONTENTS
Meaning, Definition, Origin and Development of O.R.
Features of Operations Research
Applications of Operations Research
Scientific Method in OR
Modelling in OR
Methodology of OR
Decision-Making and OR
Limitations of OR
MEANING AND DEFINITION
Meaning Definition
“O.R. is the application of scientific
It is the new approach to systematic
methods, techniques and tools to
and scientific study of the operations
problems involving the operations of a
of the system was called the
system so as to provide those in control
Operations Research or Operational
of the system with optimum solutions
Research (abbreviated as O.R.)
to the problem.”
Origin & Development
BUSINESS AND INDUSTRY
O.R. SOCIETY OF INDIA
1 RESEARCH ON MILITARY OPERATIONS
9 2
INDIAN STATISTICAL COMPLEX EXECUTIVE PROBLEMS
INSTITUTE 8 3
OPERATIONS
REGIONAL RESEARCH INDUSTRIALISATION
LABORATORY 7 RESEARCH
4
MANAGEMENT OF
ORGANISATIONS
6 5 SUBJECT
Origin & Development
In business and industry O.R has become increasingly
important.
During world war II this new management science (O.R)
came into existence as a result of research on military
opeartions.
By the end of world war II, the military teams were
seeking solutions to their complex executive type
problems.
In 1948, it had taken good hold in UK and in early 1950's
USA realized the importance of this new science n solving
their management problems.
In the 1950's O.R. achieved recognition as a subject for
study in the Universities.
Origin & Development In business and industry O.R has become increasingly
important.
During world war II this new management science (O.R)
came into existence as a result of research on military
opeartions.
By the end of world war II, the military teams were
seeking solutions to their complex executive type
problems.
In 1948, it had taken good hold in UK and in early 1950's
USA realized the importance of this new science n
solving their management problems.
In the 1950's O.R. achieved recognition as a subject for
study in the Universities.
Nature and Features of O.R.
Decision Making
O.R. is addressed to managerial decision making or problem solving
Source to other new Sciences
The growth of O.R. can be considered as a
source to other new sciences. Scientific Approach
O.R. employs scientific methods for the purpose of
solving problems.
Objective
O.R. attempts to locate the best or optimal
solution to the problem.
Digital Computer
Use of a digital computer has become an
integral part of O.R.
Inter-Disciplinary Team Approach
Managerial problems have economic,
physical,psychological, biological, sociological and
engineering aspects. This requires a blend of team
experts
SCIENTIFIC
METHOD IN
OPERATIONS
RESEARCH
Judgement Phase
Identification of the real-life problem
Selection of an appropriate goal and model
Appropriate scale of measurement
Research Phase
observations and data
prediction of results
collection
and generalization of
the results
analysis of the formulation of
available information hypothesis and models
and verification of the
hypothesis
observations and
experimentation to
test the hypothesis
Making recommendations for
decision process
Action Phase
Anyone in a position to
make a decision
Influencing the
operation in which the
problem occured
Methodology of Operations Research
Formulating the problem Construct a Mathematical Model
Acquire the input data O.R. Derive the Solution from
the model
Validate the Model Establish Control and
implement the results
Finance
Production Marketing Operations Applications of
Research
Research & Operations Research
Development.
Physical
Personnel Distribution
Purchasing
Decision - Making and its Characteristics
Decision-Making is Based
on Rational Thinking
It is a Process of Decision-Making is
Selecting the Best from Always Related to Some
the Alternatives Problem or Conflict
It Involves the Evaluation
It is Basically a Human
of Various Available
Activity
According to R.A. Alternatives
Killian, “A decision, in its
simplest form, is a selection
Decision Starts Action
of alternatives”. Decision-Making is Aimed
at Achieving
Organisational Goals
Decision-Making is the Decision-Making Involves
Core of Planning Commitment
Decision-Making is both a
Managerial Function and
an Organisational Process
Steps in implementing a Decision
Operations Research and Decision Making
Strategic Control
Managerial Control
Operational Control
Advantages of Operations Research Study Approach in Decision Making
Better Better
Decision Coordination
Better Better
Systems Control
Traditional Techniques of Decision-Making
Linear Queuing Network Probability
Game Theory
Programming Theory Analysis Theory
Traditional Techniques of Decision-Making
Linear Queuing Network Probability
Game Theory
Programming Theory Analysis Theory
Modelling in Operations Research
A model in O.R. is a simplified
representation of an operation or
a process in which only the basic
Models, in general, cannot
aspects or the most important
represent every aspect of reality
features of a typical problem
because of innumerable and
under investigation are
changing characteristics of the
considered.
real life problems to be
represented. Instead, they are
limited approximations of the
reality.
Characteristics of a Good Model
A good model should be capable of taking into Assumptions made in the model
account new formulations without having any should be as small as possible
significant change
It should be simple and coherent Model Number of variables used should be less
It should be open to parametric type of It should not take much time in its
treatment construction for any problem
Models by Degree of abstraction
1.Language Models
2. Case Studies
Models by Function Models by Structure
1.Descriptive Models 1. Iconic or Physical Models
2. Predictive Models 2.Analogue Models
3. Normative Models 3.Mathematical or Symbolic Models
Classification
of
Models by Nature of Environment Models Models by the extent of Generality
1. Deterministic Models 1. Specific Models
2. Probabilistic Models 2.General Models
Limitations of Operations Research
Expensive
Constructing complex O.R. model is often too expensive
Modification
When basic data subject to frequent changes modification of O.R. models is sometimes a costly affair
Simplification
Solution to problem when derived by simplifying assumptions have certain limitations
Authority
Limitations O.R. provides only tools to examine the results of altenative courses of action. Final
dcision is made by the management with its authority and judgement.
Review Questions
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