INTRODUCTION TO OPERATIONS RESEARCH.pptx

Introduction to Operations Research

1. OPERATIONS RESEARCH

2. Meaning, Definition, Origin and Development of O.R. Features of Operations Research CONTENTS Applications of Operations Research Scientific Method in OR Modelling in OR Methodology of OR Decision - Making and OR Limitations of OR

3. MEANING AND DEFINITION It is the new approach to systematic and scientific study of the operations of the system was called the Operations Research or Operational Research (abbreviated as O.R.) Meaning “O.R. is the application of scientific methods, techniques and tools to problems involving the operations of a system so as to provide those in control of the system with optimum solutions to the problem.” Definition

4. Origin & Development 8 7 6 2 3 4 9 1 5 RESEARCH ON MILITARY OPERATIONS COMPLEX EXECUTIVE PROBLEMS INDUSTRIALISATION SUBJECT O.R. SOCIETY OF INDIA INDIAN STATISTICAL INSTITUTE REGIONAL RESEARCH LABORATORY MANAGEMENT OF ORGANISATIONS OPERATIONSRESEARCH BUSINESS AND INDUSTRY

5. 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. I n 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. I n the 1950's O.R. achieved recognition as a subject for study in the Universities. Origin & Development

6. 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. I n 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. I n the 1950's O.R. achieved recognition as a subject for study in the Universities. Origin & Development

7. Nature and Features of O.R. Source to other new Sciences The growth of O.R. can be considered as a source to other new sciences. Digital Computer Use of a digital computer has become an integral part of O.R. Decision Making O.R. is addressed to managerial decision making or problem solving Scientific Approach O.R. employs scientific methods for the purpose of solving problems. Inter-Disciplinary Team Approach Managerial problems have economic, physical,psychological, biological, sociological and engineering aspects. This requires a blend of team experts Objective O.R. attempts to locate the best or optimal solution to the problem.

8. Judgement Phase Identification of the real-life problem Selection of an appropriate goal and model Appropriate scale of measurement

9. Research Phase formulation of hypothesis and models observations and data collection prediction of results and generalization of the results analysis of the available information and verification of the hypothesis observations and experimentation to test the hypothesis

10. Action Phase Making recommendations for decision process Influencing the operation in which the problem occured Anyone in a position to make a decision

11. Methodology of Operations Research Formulating the problem Acquire the input data Validate the Model Construct a Mathematical Model Establish Control and implement the results O.R. Derive the Solution from the model

12. Operations Research App lications of Operations Research Finance Research & Development . Purchasing Personnel Production Marketing Physical Distribution

13. According to R.A. Killian, “A decision, in its simplest form, is a selection of alternatives”. Decision-Making is Based on Rational Thinking Decision-Making is Always Related to Some Problem or Conflict It Involves the Evaluation of Various Available Alternatives Decision-Making is Aimed at Achieving Organisational Goals Decision-Making Involves Commitment Decision-Making is both a Managerial Function and an Organisational Process Decision-Making is the Core of Planning Decision Starts Action It is Basically a Human Activity It is a Process of Selecting the Best from the Alternatives Decision - Making and its Characteristics

14. Steps in implementing a Decision

15. Operations Research and Decision Making Managerial Control Operational Control Strategic Control

16. Better Decision Better Systems Better Coordination Better Control Advantages of Operations Research Study Approach in Decision Making

17. Traditional Techniques of Decision-Making Probability Theory Game Theory Network Analysis Queuing Theory Linear Programming

18. Traditional Techniques of Decision-Making Probability Theory Game Theory Network Analysis Queuing Theory Linear Programming

19. Modelling in Operations Research Models, in general, cannot represent every aspect of reality because of innumerable and changing characteristics of the real life problems to be represented. Instead, they are limited approximations of the reality. A model in O.R. is a simplified representation of an operation or a process in which only the basic aspects or the most important features of a typical problem under investigation are considered.

20. Characteristics of a Good Model A good model should be capable of taking into account new formulations without having any significant change It should be simple and coherent It should be open to parametric type of treatment Assumptions made in the model should be as small as possible It should not take much time in its construction for any problem Model Number of variables used should be less

21. 1.Descriptive Models 2. Predictive Models 3. Normative Models 1. Deterministic Models 2. Probabilistic Models Models by Function Models by Nature of Environment 1. Iconic or Physical Models 2.Analogue Models 3.Mathematical or Symbolic Models 1. Specific Models 2.General Models Models by Structure Models by the extent of Generality Models by Degree of abstraction 1.Language Models 2. Case Studies Classification of Models

22. Limitations of Operations Research Limitations 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 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.

23. Review Questions

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