By

Rajkumar Gupta

MBA FM-MARKETING

ROLL NO-38

OPERATIONS RESEARCH

Introduction

It had its early

roots in World

War II and is

flourishing in

business and

industry with the

aid of computer

OperationsThe activities carried out in an organization.

ResearchThe process of observation and testing characterized by the scientific method. Situation, problem statement, model construction, validation, experimentation, candidate solutions.Operations Research is a quantitative approach to decision making based on the scientific method of problem solving.

Operation research is the application of advanced analytical methods to help make better decisions.

• The British/Europeans refer to “Operational Research", the Americans to “Operations Research" - but both are often shortened to just "OR".

• Another term used for this field is “Management Science" ("MS"). In U.S. OR and MS are combined together to form "OR/MS" or "ORMS".

• Yet other terms sometimes used are “Industrial Engineering" ("IE") and “Decision Science" ("DS").

Terminology

In IndustryBusinessGovernmentDefense

fields

OPERATIONS RESEARCH

PeopleMachineMaterialMoney

management

More complete dataConsideration of all available

optionsCareful predictions of outcomes

and estimates of riskThe latest decision tools and

techniques

This Situation Provides

The human factor is vital for operations research.

OPTIMIZATION=TO OBTAIN THE BEST

Optimization is a word that comes to mind first in operations research.

• 7 Steps of Problem Solving(First 5 steps are the process of decision

making)– Identify and define the problem.– Determine the set of alternative solutions.– Determine the criteria for evaluating the

alternatives.– Evaluate the alternatives.– Choose an alternative. ---------------------------------------------------------------– Implement the chosen alternative.– Evaluate the results.

Problem Solving and Decision Making

Management Science Approach

Observation

• Identification of a problem that exists in the system or organization.

“Right solution” can not be obtained from the “wrong problem

The first and most important stage of the work is defining the problem well.

This phase helps examine the problem at hand quantitatively.

Identification Of The Problem

The Establishment Of The Model

Development of the functional mathematical relationships that describe-

Decision variables

Objective function

Constraints of the problem and

Non negativity condition

• Generally, experimenting with models (compared to experimenting with the real situation):– requires less time– is less expensive– involves less risk

Advantages of Models

Obtaining Model Solution This phase obtains an optimal solution for the

model by using various techniques.

1. Linear Programming Problem (LPP)

2. Transportation Problem (TP)

3. Assignment Problem (AP)

4. Simulation

5. PERT/CPM

Various Techniques/Methods

Before the application of the model solution, the validity of model and reliability of the solution should be tested.

Validity of the model can be decided by comparing its outputs with the results of past.

Testing Of The Model Solution

If past behavior is repeated

when provided similar

inputs (a stable solution is

being obtained), the model

will be valid.

A solution to a problem usually implies changes for some individuals in the organization

Implementation of the solution obtained from a validated model is a reliable solution to the real-life problems

Implementation

Situation

Procedure

Implement the Procedure

CONCLUSION

Operation research ensures the effective working of organizations by providing solutions to their various problems.

THANKYOU