MBA | QA II | Overview | Operations Research Part 1
- 2. What is operations research? Operations Research is an Art and Science. The British/Europeans refer: "Operational Research". The Americans refer: "Operations Research". Modern synonyms: Management Science (MS) | Decision Science (DS)| Industrial engineering" (IE) It is often considered to be a sub-field of mathematics. The Americans are using terms OR and MS together: "ORMS". ORMS: Operations Research Management Science
- 3. OR had its early roots in World War II. OR had provided solutions to Military operations during World War II. .
- 4. Operations Research? Operational Research is the discipline of applying advanced analytical methods to help make better decisions. OR is professional discipline. It deals with scientific methods. OR is an interdisciplinary discipline. It represents the study of optimal resource allocation. It deals with advanced analytical methods for making decisions. Business applications concerned with O.R. analysis.
- 5. Optimization= To Obtain the Best Optimization is a word that comes to mind first in Operations Research. Optimization means maximizing profits and minimizing cost.
- 6. Operations Research FMD-0465-2DA-6N Operations Research takes tools from different discipline such as: Economics Engineering Statistic Mathematics Psychology
- 7. Definition Operations Research Society, America: “Operations research is concerned with scientifically deciding how to best design and operate man machine systems usually requiring the allocation of scare resources”. PM Morse and GE Kimball: “O.R. is a scientific method of providing executive departments with a quantitative basis for decisions regarding the operations under their control”.
- 8. Features of Operations Research 1.Decision Making 5.Goal Oriented Optimum Solution 2.Objective Oriented Approach 6.Creating Model 3.Inter-disciplinary Approach 7.Symbolize the Model 4.Quality of Solution
- 9. Features of Operations Research 8.Use of Models 12.Require Wilting Executives 9.Quantifying the Model 13.Reduce Complexity 10.Use of Mathematical Devices 14.Highest Efficiency 11.Use of Computer
- 10. Scope of Operations Research 1.Accounting 3. Agriculture 2.Industry 4. Defense 5.Education 6.Transportation OR
- 11. Scope of Operations Research 7. R & D 9.National 8.M arketing 10.Production 11.Personnel 12.Home OR
- 12. Applications of Operations Research 1.Finance, Budgeting and Investment 2.Industry 3.Agriculture 4. Defense Services 5.Education and Training 6.Transportation 13.Purchasing, Procurement and Exploration 7. R & D 8.Marketing 9.National Planning & Budgeting 10.Production Management 11.Personnel Management 12.Home Management 14.Physical Distribution
- 13. OR Models/ OR Tools/ OR Techniques Inventory Control Decision Theory Waiting /Queuing Integer Programming Linear Programming Dynamic Programming Game / Competitive Simulation Non-Linear Programming
- 14. OR Models/ OR Tools/ OR Techniques Symbolic Logic Utility/Value Theory Markov Process Allocation Model Sequencing Theory Replacement Model Network Scheduling Dual Theory Information Theory
- 15. 1.Linear Programming (L.P.) 2.Waiting Line/ Queuing Theory 3. Game Theory/ Competitive Theory 4.Inventory Control Models 5.Simulation 6.Decision Theory 7.Non-Linear Programming 8.Integer Programming 9.Dynamic Programming OR Models/ OR Tools/ OR Techniques 10.Sequencing Theory 11.Markov Process 12.Network Scheduling—PERT and CPM 13.Symbolic Logic 14.Information Theory 15.Utility/Value Theory 16.Dual Theory 17.Allocation Model 18.Replacement Model
- 16. IFORS: International Federation of Operational Research Society IFORS is an umbrella organization for Operational Research societies world-wide . It is a 50-year old organization which is currently composed of 50 national societies. It represents 50 national societies including those in US, UK , France , Germany, Canada , Australia , New Zealand, Philippines , India , Japan and South-Africa.
- 17. Advantages of OR Better Control Better System Better Decisions Better Co- ordination
- 18. Disadvantages/Limitations of OR Magnitude of Computation Non-quantifiable Factors Money and Time Costs Distance between OR specialist and Manager Implementation