INTRODUCTION TO OPERATIONS RESEARCH

DEFINITIONS OF OPERATIONS RESEARCH

OR utilizes the planned approach (updated scientific method) and an interdisciplinary team in order to represent complex functional relationships as mathematical models for the purpose of providing a quantitative analysis. Thieraub and Klekamp OR is a scientific knowledge through interdisciplinary team effort for the purpose of determining the best utilization of limited resources. H.A. Taha

OR is a scientific approach to problem solving for executive management. H.M. Wagner

FEATURES OF OPERATIONS RESEARCH

SYSTEM ORIENTATION INTER-DISCIPLINARY APPROACH SCIENTIFIC APPROACH

DECISION MAKING
USE OF COMPUTER / AUTOMATION OBJECTIVES

QUANTITATIVE SOLUTION
HUMAN FACTORS

PHASES OF OPERATIONS RESEARCH

JUDGEMENT PHASE RESEARCH PHASE ACTION PHASE

METHODOLOGY OF OPERATIONS RESEARCH

Feedback loops at all levels!

LIMITATIONS OF OPERATIONS RESEARCH

MANGNITUDE OF COMPUTATIONS NON QUANTIFIABLE COMPUTATIONS GAP BETWEEN MANAGER AND OPERATIONS RESEARCHER MONEY & TIME COSTS IMPLEMENTATION

SELECTION OF TECHNIQUE
SUB-OPTIMIZATION OR PARTIAL OPTIMIZATION

PRINCIPLES OF OPERATIONS RESEARCH MODELLING

PRINCIPLE OF SIMPLICITY

UNDERSTAND THE PROBLEM, ONLY THEN APPLY THE APPROPRIATE TECHNIQUE

VALIDATION BEFORE IMPLEMENTATION MODELS ARE FOR THE DECISION MAKERS MODEL SHOULD NEVER BE TAKEN TOO LITERALLY FLEXIBLE MODEL SEEK COOPERATION FROM OPERATION RESEARCH EXPERTS USE OF COMPUTERS

APPLICATIONS & SCOPE OF OPERATIONS RESEARCH

FINANCE, BUDGETING & INVESTMENTS

CASH FLOW ANALYSIS INVESTMENT & PORTFOLIO MANAGEMENT

PURCHASE AND PROCUREMENT DECISIONS

BIDDING POLICIES EQUIPMENT REPLACEMENT POLICIES

PRODUCTION MANAGEMENT

PROJECT PLANNING MANUFACTURING & FACILITY PLANNING

MARKETING MANAGEMENT

PRODUCT MIX & SELECTION DEMAND FORECASTING & TREND ANALYSIS

APPLICATIONS & SCOPE OF OPERATIONS RESEARCH

PERSONNEL MANAGEMENT

RECRUITMENT POLICIES ASSIGNMENT OF JOBS ESTABLISHING BONUS SYSTEM

RESEARCH & DEVELOPMENT

CONTROL OF DEVELOPMENT PROJECTS DETERMINATION OF TIME & COSTS REQUIREMENTS RELIABILITY & VALIDATION OF DESIGNS

ROLE OF OPERATIONS RESEARCH IN MANAGERIAL DECISION MAKING

SYSTEMATIC & SCIENTIFIC APPROACH FOR LOGICAL & RATIONALE DECISION MAKING BUSINESS & MANAGEMENT DECISION MAKING

BETTER CONTROL BETTER COORDINATION BETTER DECISIONS

AT TIMES PROBLEMS BECOME TOO COMPLEX AND INFORMATION ASSIMILATION & COMPREHENSION BECOMES INFEASIBLE. THUS OPERATIONS RESEARCH USES REQUISITE TOOLS AND TECHNIQUES TO CONVERT THE PROBLEM INTO MANAGEABLE PROBLEM
IN REAL BUSINESS SITUATIONS, CONFLICTS

MODELS OF OPERATIONS RESEARCH

Classification by degree of abstraction Language Models: Commentary in the cricket match by the commentator.

Concrete Models: A globe of the earth

Classification by purpose Descriptive Models: A descriptive model simply describes some aspects of a situation based on observation survey questionnaire results or other available data the result of an opinion poll represents a descriptive model.

Normative or prescriptive Models: They develop objective decision rules or criteria for optimal solutions. They are applicable to repeated problems

MODELS OF OPERATIONS RESEARCH

CLASSIFICATION ACCORDING TO STRUCTURE

Iconic (physical) Model: Is a physical representation of some item either in an idealized form or on a different scale i.e. a representation is an iconic model to the extent that its properties are the same as possessed by what it represents. Eg: Toy Aeroplane
Analogue (schematic) Model: It represents a system or an object of the inquiry by utilizing a set of properties different from what the original system possesses. Eg: Speed Time Graphs Symbolic Models (Mahemaical Models): These are those which employ a set of symbols (i.e. letters numbers etc.) and functions to represent the decision variables and their relationships to describe the behaviour or the system the symbols used generally mathematical or logical in character.

MODELS OF OPERATIONS RESEARCH

Classification by Nature of the Environment Deterministic Models: In this parameters are completely defined and the outcomes related to particular course of action are certain. Commentary in the cricket match by the commentator. Probabilities Models: These models handle those situations in which the consequence or payoff of managerial actions cannot be predicted with certainty. Classification according to behaviour characteristics Static Models: These models do not consider the impact of changes that takes place during the planning horizon In a static model, cause and effect are almost immediate and no time lag is allowed. Dynamic models: These models consider time as one of the important variables and admit the impact of change generated by time.

MODELS OF OPERATIONS RESEARCH

Classification according to procedure of solution Analytical models: These models have specified mathematical structure and they can be solved by known analytical or mathematical techniques. For example, the general linear programming model as well as the special structured transportation and assignments models is analytical models. Simulation and heuristic Models: Simulation modelling has the advantage of being more flexible than mathematical modelling and hence may be used to represent complex systems which otherwise cannot be formulated mathematically. Heuristic models are essentially models that employ some intuitive rules or guidelines in the hope of generating new strategies which will yield improved solutions. They are in contrast to mathematical and simulation models where the strategies are generally well-defined.