Operations Research - Meaning, Origin & Characteristics

This ppt includes Operations Research - Meaning, Origin & Characteristics

1. Operations Research
Meaning, Origin & Characteristics
Presented By
AnuradhaHR
2
nd
M.Com
GFGCW, PG Studies in Commerce
Holenarasipura
Under the guidance of
SundarB. N.
Asst. Prof. & Course Co-ordinator
GFGCW, PG Studies in Commerce
Holenarasipura

2. Content
Meaning
Origins of operation research
Characteristics of operation research

3. Meaning
Operationsresearch(OR)isananalytical
methodofproblem-solvinganddecision-making
thatisusefulinthemanagementoforganizations.In
operationsresearch,problemsarebrokendowninto
basiccomponentsandthensolvedindefinedsteps
bymathematicalanalysis.

4. Definition
According to H.M. Wagner : ORis
scientific approach to problem solving
for executive management.

5. Origin of Operation Research
The term "operational research" was originally used in
Britain during World War II to connote scientific research done to
integrate new radar technologies into Royal Air Force tactics.
By 1941 the term had expanded to encompass research done to
assist military officers in developing tactics and planning combat
operations, whether or not technology played a critical role in the
analysis.

6. Much of this work simply involved gathering empirical
data and conducting basic statistical analyses.
While some wartime work, such as the development of
search theory, was more mathematically advanced, OR
would only become focused on sophisticated
mathematical methods when it emerged as a civilian
profession in the postwar era.

7. Decision
making
Use of
information
technology
Quantitative
solution
Human
factors
Simulation
Optimization
Uncovering
new problems
Inter
disciplinary
team
approach
Scientific
approach
System
orientation
Probability
and statistics
Characteristics of
Operations research

8. Characteristics of operation research
Decision making:
OR is decision science which helps
management to make better decisions.

9. Use of information technology (IT):
OR offer require acomputer to solve the complex mathematical model or to
perform a large number of competitions that involved use of digital computer
has become an integral part of the operation research approach to decision
making.

10. Quantitative solution:
OR provides the managers with a quantitative basis for
decision making. OR attempts to provide a systematic and rational
approach for quantitative solution to the various managerial
problems.

11. Human factors:
In deriving quantitative solution we do not consider human factors,
which doubtlessly plays a great role in the problems. So study of the OR is
incomplete without a study of human factors.

12. Scientific approach:
O.R. uses scientific methods to solve the problems. Most of the scientific
studies such as chemistry, physics, biology etc. can be carried out in the
laboratories, without much interference form the outside world. Bust same is not
true in the systems under study by OR teams. So, OR is an formalized process of
reasoning. Under OR the problem is to be analyzed defined clearly. Observations
are made under different conditions to study the behavior of the system.

13. Optimization:
The purpose of operations
research is to achieve the best
performance under the given
circumstances. Optimization also
involves comparing and narrowing
down potential options.

14. Inter-disciplinary team approach:
O.R. is performed by a team of scientists whose individual members have
been drawn from different scientific and engineering disciplines. For example,
one may find a mathematician, statistician, physicist, psychologist, economist
and an engineer working together on an OR problem.

15. Uncovering new problems:
Solutionof an OR problem may uncover a number of new problems. In
order to derive the maximum benefit each one of them must be solved. OR is
not effectively used if It is restricted to one shot problems only. In order to
derive full benefits, continuity of research must be maintained.

16. Simulation:
This involves building models or replications in order to try
out and test solutions before applying them.

17. Probability and statistics:
This includes using mathematical algorithms and data to
uncover helpful insights and risks, make reliable predictions and
test possible solutions.

18. Conclusion
Operation research is used to solve complex problems of
business through mathematical analysis. This technique is used
in various fields of agriculture, production, and business
management. It also supports in improved competitiveness of
the organization through strategic business decisions.

19. Reference:
https://theintactone.com/2020/01/04/nature-definition-characteristics-of-operations-
research/
https://whatis.techtarget.com/definition/operations-research-OR
https://www.informs.org/Explore/History-of-O.R.-Excellence/Bibliographies/The-
Origins-of-OR