33 C
Maharashtra
Friday, June 9, 2023
HomeStatisticsOperations ResearchIntroduction to Operations Research

# Introduction to Operations Research

## INTRODUCTION TO OPERATION RESEARCH

### Def: OPERATION RESEARCH:-

Operation research is the application of scientific methods, techniques and tools to problems involving the operations of systems so as provide those in control of operations with optimum solutions to the problems.

### METHODOLOGY OF OPERATION RESEARCH:-

The application of OR generally involves following steps:

#### 2)      Model construction: After defining the problem, a model needs to be developed to represent the problem. Models can be-

##### (b)   Symbolic model: Symbolic model use symbols, letters, and numbers etc. to represent things associated with real life situations. Symbolic model can be verbal or mathematical.

E.g. In words, area of a rectangle is the product of its length and breadth

In Symbols, A=l.b

### OPERATION RESEARCH TECHNIQUES:-

#### 1. STATISTICAL TECHNIQUES: Statistical techniques are applied in statistics for data collection, data organisation and data analysis. Some of the examples are:

1)      Mean, median and mode.

2)      Mean deviation and standard deviation.

3)      Probability theory.

4)      Regression analysis and correlation analysis.

5)      Sampling.

#### 2. PROGRAMMING TECHNIQUES: These are OR techniques. These techniques involve problem formulation , building mathematical models, substituting data in mathematical models, testing the model, using appropriate OR technique to solve the problem, obtaining optimal solution. Some examples are:

1)      Linear programming.

2)      Transportation problems.

3)      Assignment problems.

4)      Critical path method.

5)      Decision theory.

6)      Inventory management.

### APPLICATION AREAS FOR OPERATION RESEARCH TECHNIQUES:-

Or techniques are applied to a variety of business problems. Some examples are:

#### 1. Production management:

1) To calculate loss of time due to waiting time, queuing time etc.

2) To decide optimum allocation of jobs and optimum sequence in which job should be sequenced.

#### 2. Personal management:

1) To study labour turnover.

2) To do human resource planning.

3) To decide number of personnel required to be kept on standby in case of demand for higher manpower.

#### 3. Inventory management:

1) To study economic lot size to be ordered.

#### 4. Marketing management:

1) To decide optimal product mix for maximum profit.

2) Media selection for advertising for maximum reach.

3) Sales forecasting.

#### 5. Transportation management:

1) To determine transportation schedule for minimum cost or minimum time.

#### 6. Project management:

1) To identify critical and non-critical activities of a project.

2) To determine minimum project completion time.

3) To determine optimal project cost.

#### 7. Financial management:

1) To decide investment portfolio to maximize return on investment.

LIMITATIONS OF OPERATIONS RESEARCH TECHNIQUES:-

Some of the major limitations of OR techniques are:

1)      In construction of mathematical models, something assumptions are necessary to simplify model construction. But over simplification of a model or too many assumptions can make the model un realistic.

2)      OR techniques are quantitative in nature. Hence these techniques do not consider qualitative or intangible factors such as customer perceptions, employee motivation levels, quality of executives, advantage of experience etc.

3)      All business situations cannot be responded with quantitative techniques. Some business situations require gut feeling, initiative or managerial judgment. OR techniques cannot be applied in such situations.

RELATED ARTICLES

### Any two closed subset of metric space are connected iff they are disjoint

$${}$$