1 OPERATION RESEARCH IS THE ART OF GIVING BAD ANSWERS TO THE PROBLEMS TO WHICH OTHERWISE WORSE ANSWERS ARE GIVEN

-T L Saaty Operation research, in most general sense can be characterized as the application of the scientific method, techniques and tools, to problems involving the operation of system so as to provide them with optimal solution to the problem In todays complex business environment, most management decisions cannot be made by simply applying personal experience, guesswork or intuition, because the consequences of wrong decisions are serious and costly. Operation research as one of the quantitative aid to the decision making offer the decision maker a method of evaluating every possible alternative (act or course of action) by using various techniques to know the potential outcomes. In general, while solving a real life problem, the decision maker must examine it both from qualitative as well as quantitative perspective. Information about the problem from both the perspective must brought be together and assessed in context of the problem and then the optimal solution should be taken. Scope of quantitative techniques Quantitative techniques have gained importance in the field of decision- making process. These techniques can be used in complex problems modern business and industries. The area of quantitative techniques is enumerated as;

Finance and accounting:

>dividend policies ,investment and portfolio management,auditing,balance sheet and cash flow analysis >breakeven analysis,capital budgeting,cost allocation and control and finanacial planning >claim and complaint procedure and public accounting >establishing costs for by- products and developing standard costs.

Marketing:
>selection of product mix,marketing and export planning >best time to launch a new product >sales effort allocation and assingment >predicting customer loyalty >advertising,media planning,selection and effective packing alternatives.

Purchasing,procurement and exploration

>optimal buying and reordering under price quantity discount

>transportation planning
>vendor analysis

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>bidding policies >bidding policies

>replacement policies

Product management
Facilities planning >location and size of warehouse or new plant,distribution centres and retail outlets >logistics ,layout and engineering design >transportation,planning and scheduling

Manufacturing:
>aggregate production planning,assembly line,blending,purchasing and inventory control. >employment,trainging,layoffs and quality control >allocating R&D budgets most effectively

Maintenance and project scheduling:

>maintenance policies and preventive maintenance >maintenance crew size and scheduling >project scheduling and allocation of resources

Personnel management:
>manpower planning wage/salary administration >negotiation in bargaining situation >designing organisation structures more effectively >skills and wages balancing >scheduling of training programmes to maximize skill development and retention

Techniques and general management :

3 >decision support system and MIS; forecasting >making quality control more effective >project management and strategic planning.

GOVERNMENT:
>economic planning ,natural resources,social planning and energy >urban and housing problems >military,police,pollution control ,etc.

In the context of applications of congitative techniques of managmentwe would basic b ally stress on the topics we have coverd in class including linear programming,transport,assignment,network,game theory and dynamic programming. Applications of management science/operational research are abondonded in the corporate world.in todays competitive world planning and decision making,putting the correct strategy to correct place is of utmost importance,so for the economic progress,optimal time and wealth utilization and full employment of resources requires the manager to make the correct decision at the correct time. In a real life situation where in a large amount of resources and wealth is utilised requires a well decision to be made, for which qualitative and quantitative aspect of the problem to be measures correctly and at the right time.quantitative techniques of management provides with the various models and the tools which measures or quantifies the problem we are dealing with so that we could measure the booms and the banes of the project. As already mentined in the scope of QTM that it covers a wide range of topics of the coporate world including finance, marketing, production management and manufacturing etc.

In general terms the applications of QTM deals with the wide range of problems and issues to which organizational research gives insight and optimal solution. >scheduling airlines,including both planes and crews >managing the flow of water from the reservoirs >deciding the appropriate path to transport the raw materials and goods from warehouse to the market >identifying and understanding the strategies adopted by the companies

4 In the laymans terms we could basically bring down the high level of organizational research to thetools of basic daily needs. As in, we travel daily from our house to the college by various means of transport including (option1):> a bus from my home to the metro station(time: 15mins) (10 rs) then taking the metro from my nearest metro station to the college metro station (time:30 mins) (20 rs) moving on then taking a rickshaw from the metro station to the college (time: 5min) (10 rs) (option 2): >if I take my car from the home directly to the college it would take me around 30 mins and the monthly expense of maintain the car would be around 2500 rs (option 3): > from the two given options we need to make out a decision so that I could reach college economically and well in time. So here organisational research tools come in play and help us out in solving the problem and finding the optimal solution. Few weeks back we attended a group discussion in our college organized by E-cell where in our principal said that Each and every person living his entrepreneur as he has to make decisions at every point of time,he added that he as a principal of the college is an entrepreneur and all the students and staff including us are the entrepreneur. So being the entrepreneur quantitative techniques of managment plays a vital role in the daily decision making.