<\/span><\/h5>\n\n\n\nOperations research is the application of scientific method to problem arising from operation involving integrated system of men, machine and material. It normally utilises the knowledge and skills of an inter-disciplinary research team to provide the management of such system with optimum operating solution.<\/p>\n\n\n\n
ACCORDING TO HM WAGNER<\/strong><\/p>\n\n\n\n\u201cOperations Research is a scientific approach to problem solving for execution management.\u201d<\/p>\n\n\n\n
ACCORDING TO THOMAS L SATTY<\/strong><\/p>\n\n\n\n\u201cOperations research is the art of giving bad answers to problems to which, otherwise worst answers are given.\u201d<\/p>\n\n\n\n
Thus, Operations research is the application of modern methods of mathematical science to complex problems involving management of large system of man, machines and money in industry, business, government and defence.<\/p>\n\n\n\n
<\/span>FEATURES\/ CHARACTERISTICS\/ NATURE OF OPERATIONS RESEARCH<\/strong><\/span><\/h5>\n\n\n\nINTRODUCTION TO OPERATIONS RESEARCH – FEATURES OF OPERATIONS RESEARCH<\/figcaption><\/figure>\n\n\n\nSystem Orientation: <\/strong>Operations research is a system oriented scientific approach. It studies the problem as a whole and provides the solution that is to be applied on whole system or organisation. But in real world, the one thing optimum for one department may not be optimum for another department. So while deriving at the solution, one must take into account all possible interactions of all the departments.<\/p>\n\n\n\nInter-disciplinary Team approach: <\/strong>According to Ackoff and Saieni \u201cOperations research is the application of scientific method by inter-disciplinary team\u2019s problems involving the control of organised system as to provide solutions which best serve the purpose of the organisation as a whole.\u201d<\/p>\n\n\n\nSo, Operations research is inter-disciplinary in approach. It requires the knowledge of allied discipline like statistics, engineering, economics, management, computer science and so on. Operations research\u2019s team brings the latest scientific know how to analyse the problems and helps in providing better results.<\/p>\n\n\n\n
Scientific Approach: <\/strong>According to morse and Kimball, \u201cOperations Research is a scientific method of providing executive departments with a quantitative basis for decisions regarding the operations under their control.\u201d<\/p>\n\n\n\nSo, operations research is a proper scientific approach to solve the complex business problems. The scientific methods in Operations Research consists of three phases:<\/p>\n\n\n\n
Judgement Phase<\/u><\/em>: This phase consists of:<\/p>\n\n\n\n Research Phase: <\/u><\/em>This phase utilises:<\/p>\n\n\n\n Action Phase: <\/u><\/em>It consists of making recommendations for the decision process by those who first posed the problem for consideration or by anyone in a position to make a decision influencing the operation in which the problems occurred.<\/p>\n\n\n\n Decision Making: <\/strong>Operations Research is an optimal decision-making science which helps the management to make better decisions in time. Decision making can be improved and in fact the headache of management can be cured by using the scientific methods of the Operations research to take the decisions. The main features of all decisions are:<\/p>\n\n\n\nThe objective should be clear and un-ambiguous. This helps to take proper decisions. Next, various possible alternatives should be studied along with the constraints imposed on each alternative. The scientific operation research methods helps to take best possible action.<\/p>\n\n\n\n
Use of Computer: <\/strong>Operation research often requires a computer to solve the complex mathematical model or to perform large number of computations that are involved.<\/p>\n\n\n\nUse of a digital computer has become an integral part of the Operations Research approach to decision-making.<\/p>\n\n\n\n
Objectives: <\/strong>The goals or objectives of the organisation provides a base to the future course of action. Operations research attempts to find out the best and optimal solution to the problem on the basis of the objectives set. The proper analysis of objectives helps in deciding the best alternatives.<\/p>\n\n\n\nQuantitative Solution: <\/strong>According to EL Arnoff and MJ Netzong, \u201c Operations Research is the systematic method oriented study of the basis structure, characteristics, functions and relationships of the organization decision making to provide the executive with sound, scientific and quantitative basis for decision making.<\/p>\n\n\n\nThe above definition clearly states that the solutions derived by applying the Operations methods and techniques are quantitative in nature as all the techniques applied are mathematical.<\/p>\n\n\n\n
Operations research attempts to provide a systematic and rational approach for quantitative solutions to the various managerial problems.<\/p>\n\n\n\n\n\n\n
INTRODUCTION TO OPERATIONS RESEARCH – PREVIOUS YEAR QUESTIONS GNDU<\/h2>\n\n\nDefine Operations Research? Explain the methodology of Operations research.<\/strong><\/h3>\n\n\n\nOPERATIONS RESEARCH<\/strong><\/h5>\n\n\n\nOperations research is the application of scientific method to problem arising from operation involving integrated system of men, machine and material. It normally utilises the knowledge and skills of an inter-disciplinary research team to provide the management of such system with optimum operating solution.<\/p>\n\n\n\n
ACCORDING TO HM WAGNER<\/strong><\/p>\n\n\n\n\u201cOperations Research is a scientific approach to problem solving for execution management.\u201d<\/p>\n\n\n\n
ACCORDING TO THOMAS L SATTY<\/strong><\/p>\n\n\n\n\u201cOperations research is the art of giving bad answers to problems to which, otherwise worst answers are given.\u201d<\/p>\n\n\n\n
Thus, Operations research is the application of modern methods of mathematical science to complex problems involving management of large system of man, machines and money in industry, business, government, and defence.<\/p>\n\n\n\n
METHODOLOGY OF OPERATIONS RESEARCH<\/strong><\/h5>\n\n\n\n<\/td> PROCESS STEPS<\/strong><\/td>PROCESS ACTIVITIES<\/strong><\/td>PROCESS OUTPUT<\/strong><\/td><\/tr>Step 1:<\/strong><\/td>Observe the problem environment<\/td> Visits Conferences Observations research<\/td> Sufficient information and support to proceed.<\/td><\/tr> Step 2:<\/strong><\/td>Define and analyse the problem<\/td> Define objectives Define limitations<\/td> Nature of solution required<\/td><\/tr> Step 3:<\/strong><\/td>Develop a model<\/td> Define inter-relationships. Formulate equations. Use known OR models. Search alternate model.<\/td> Model that work under stated environmental constraints.<\/td><\/tr> Step 4:<\/strong><\/td>Select appropriate data input<\/td> Analyse internal- external data. Analyse fact. Collect opinions. Use computer data banks.<\/td> Sufficient inputs to operate and test model.<\/td><\/tr> Step 5& 6:<\/strong><\/td>Provide a solution qualified the model.<\/td> Test the model. Final limitations. Update the model. Resolve the behavioural issues.<\/td> Solutions that support current organisational objectives. Improves working.<\/td><\/tr> Step 7:<\/strong><\/td>Implement the solution<\/td> Sell the idea and give explanations. Get management involved.<\/td> Management support for long run operations of model.<\/td><\/tr><\/tbody><\/table>METHODOLOGY OF OPERATIONS RESEARCH<\/figcaption><\/figure>\n\n\n\n\nObserve the problem environment: <\/u><\/strong>This is the first step in the methodology of the Operations research. The researcher should come to know about the environment in which the problem prevails. He can do so by paying visits, attending educational conferences and doing some kind of research work. More the understanding of the problem, more the chances to get optimal solution to the problem.<\/li>\n\n\n\nAnalysis and dealing the problem:<\/u><\/strong> After analysing the problem environment, the researcher should analyse the problem and define it in clear terms. All the factors affecting the problem directly and indirectly should be taken into consideration.<\/li>\n<\/ol>\n\n\n\n The in-depth analysis of the problem helps in the proper understanding and this contributes towards finding the best solution for the problem.<\/p>\n\n\n\n
Example: Suppose a manager notice that a reduction in sales volume is causing a fall in the profit of the current year. The operations researcher has been asked to analyse the problem.<\/p>\n\n\n\n
Now the Operations researcher analyse the company\u2019s product prices and promotions. He discovers that promotion is the main problem area. He must investigate the various variables responsible for reduced sales. The culprit could be:<\/p>\n\n\n\n
\nAmount of money spent<\/li>\n\n\n\n The media used<\/li>\n\n\n\n The timings<\/li>\n\n\n\n Or any combination of these.<\/li>\n<\/ul>\n\n\n\n3. Developing a model: <\/u><\/strong>Once the project is approved, the next step is o develop a model. The model is developed to show the situations under study. It also shows the relations and inter-relations among various elements.<\/p>\n\n\n\n The model is developed after considering the various constraints and factors affecting elements of the model.<\/p>\n\n\n\n
The model should be attested by the management after the completion or it may be modified on its failure to give best solution.<\/p>\n\n\n\n
4. Collecting data required by the model: \u2018<\/u><\/strong>Garbage in and garbage out\u2019 is the famous saying. It means if the data is inappropriate then the model built on the basis of that data will also be inappropriate. So, the data should be collected very cautiously. The data may be collected from either primary or secondary source. This means the researchers should conduct fresh research to get the data or should approach the historical records.<\/p>\n\n\n\n 5. Coming up with a solution: <\/u><\/strong>Once the data is collected related to the problem, the next step is to solve the model and coming up with a solution. Usually, the operations researcher takes simplified assumptions and solutions generally will work under such assumptions. Therefore, once Operations research has given a solution, the inputs should be changed\/ altered to get to know about the change in the output.<\/p>\n\n\n\n The researcher should also apply the sensitivity test to know the magnitude and directions of output.<\/p>\n\n\n\n
6. Qualifying the models and solutions: <\/u><\/strong>The findings of the problem should be presented to the management by the operations researcher. It is the duty of the researcher:<\/p>\n\n\n\n\nTo explain the findings.<\/li>\n\n\n\n To state the assumptions under which the solution will be feasible.<\/li>\n\n\n\n Techniques applied to generate the results.<\/li>\n\n\n\n Weaknesses of the model etc.<\/li>\n<\/ul>\n\n\n\n7. Implement the solution: <\/u><\/strong>Once the solution is found out, it is the duty of the management to implement the solution by taking care of the risks associated with it. This stage involves various kinds of behavioural issues.<\/p>\n\n\n\n\n\n\nINTRODUCTION TO OPERATIONS RESEARCH – PREVIOUS YEAR QUESTIONS GNDU<\/h2>\n\n\nDefine Operations research and explain its main characteristics? Also give examples to highlight the scope of the operations research?<\/strong><\/h3>\n\n\n\nAnswer:<\/strong><\/p>\n\n\n\nOPERATIONS RESEARCH<\/strong><\/h5>\n\n\n\nOperations research is the application of scientific method to problem arising from operation involving integrated system of men, machine and material. It normally utilises the knowledge and skills of an inter-disciplinary research team to provide the management of such system with optimum operating solution.<\/p>\n\n\n\n
ACCORDING TO HM WAGNER<\/strong><\/p>\n\n\n\n\u201cOperations Research is a scientific approach to problem solving for execution management.\u201d<\/p>\n\n\n\n
ACCORDING TO THOMAS L SATTY<\/strong><\/p>\n\n\n\n\u201cOperations research is the art of giving bad answers to problems to which, otherwise worst answers are given.\u201d<\/p>\n\n\n\n
Thus, Operations research is the application of modern methods of mathematical science to complex problems involving management of large system of man, machines and money in industry, business, government, and defence.<\/p>\n\n\n\n
CHARACTERISTICS OF OPERATIONS RESEARCH<\/strong><\/h5>\n\n\n\nINTRODUCTION TO OPERATIONS RESEARCH- CHARACTERISTICS OR FEATURES OF OPERATIONS RESEARCH<\/figcaption><\/figure>\n\n\n\nSystem Orientation: <\/strong>Operations research is a system oriented scientific approach. It studies the problem as a whole and provides the solution that is to be applied on whole system or organisation. But in real world, the one thing optimum for one department may not be optimum for another department. So while deriving at the solution, one must take into account all possible interactions of all the departments.<\/p>\n\n\n\nInter-disciplinary Team approach: <\/strong>According to Ackoff and Saieni \u201cOperations research is the application of scientific method by inter-disciplinary team\u2019s problems involving the control of organised system as to provide solutions which best serve the purpose of the organisation as a whole.\u201d<\/p>\n\n\n\nSo, Operations research is inter-disciplinary in approach. It requires the knowledge of allied discipline like statistics, engineering, economics, management, computer science and so on. Operations research\u2019s team brings the latest scientific know how to analyse the problems and helps in providing better results.<\/p>\n\n\n\n
Scientific Approach: <\/strong>According to morse and Kimball, \u201cOperations Research is a scientific method of providing executive departments with a quantitative basis for decisions regarding the operations under their control.\u201d<\/p>\n\n\n\nSo, operations research is a proper scientific approach to solve the complex business problems. The scientific methods in Operations Research consists of three phases:<\/p>\n\n\n\n
Judgement Phase<\/u><\/em>: This phase consists of:<\/p>\n\n\n\n\nDetermination of operations<\/li>\n\n\n\n Establishment of objective and values related to the business.<\/li>\n\n\n\n Determination of the suitable measures of effectiveness.<\/li>\n\n\n\n Formulation of the problems relative to the objectives.<\/li>\n<\/ul>\n\n\n\nResearch Phase: <\/u><\/em>This phase utilises:<\/p>\n\n\n\n\nOperations and data collection for a better understanding of the problem.<\/li>\n\n\n\n Formulation of hypothesis and model.<\/li>\n\n\n\n Observation and experimentation to test the hypothesis of the available information and verification of the hypothesis using pre-established measure of effectiveness.<\/li>\n\n\n\n Prediction of various results from the hypothesis.<\/li>\n\n\n\n Generalisation of the various results and consideration of alternative methods.<\/li>\n<\/ul>\n\n\n\nAction Phase: <\/u><\/em>It consists of making recommendations for the decision process by those who first posed the problem for consideration or by anyone in a position to make a decision influencing the operation in which the problems occurred.<\/p>\n\n\n\n Decision Making: <\/strong>Operations Research is an optimal decision-making science which helps the management to make better decisions in time. Decision making can be improved and in fact the headache of management can be cured by using the scientific methods of the Operations research to take the decisions. The main features of all decisions are:<\/p>\n\n\n\n\nObjectives<\/li>\n\n\n\n Alternatives<\/li>\n\n\n\n Constraints<\/li>\n<\/ul>\n\n\n\nThe objective should be clear and un-ambiguous. This helps to take proper decisions. Next, various possible alternatives should be studied along with the constraints imposed on each alternative. The scientific operation research methods helps to take best possible action.<\/p>\n\n\n\n
Use of Computer: <\/strong>Operation research often requires a computer to solve the complex mathematical model or to perform large number of computations that are involved.<\/p>\n\n\n\nUse of a digital computer has become an integral part of the Operations Research approach to decision-making.<\/p>\n\n\n\n
Objectives: <\/strong>The goals or objectives of the organisation provides a base to the future course of action. Operations research attempts to find out the best and optimal solution to the problem on the basis of the objectives set. The proper analysis of objectives helps in deciding the best alternatives.<\/p>\n\n\n\nQuantitative Solution: <\/strong>According to EL Arnoff and MJ Netzong, \u201c Operations Research is the systematic method oriented study of the basis structure, characteristics, functions and relationships of the organization decision making to provide the executive with sound, scientific and quantitative basis for decision making.<\/p>\n\n\n\nThe above definition clearly states that the solutions derived by applying the Operations methods and techniques are quantitative in nature as all the techniques applied are mathematical.<\/p>\n\n\n\n
Operations research attempts to provide a systematic and rational approach for quantitative solutions to the various managerial problems.<\/p>\n\n\n\n
SCOPE OF OPERATIONS RESEARCH<\/strong><\/h5>\n\n\n\nWherever there is a problem of optimization, there is a scope of operations research. It is as follows:<\/p>\n\n\n\nINTRODUCTION TO OPERATIONS RESEARCH – SCOPE OF OPERATIONS RESEARCH<\/figcaption><\/figure>\n\n\n\n\n<\/li>\n<\/ol>\n\n\n\n\nFinance, budgeting and investments:<\/u><\/strong>\n\nCash flow analysis, long range capital requirements, investment portfolios, dividend policies etc.<\/li>\n\n\n\n Credit policies, credit risks and the delinquent account produces- claim and complaint procedures.<\/li>\n\n\n\n Break even analysis, capital budgeting, cost allocation and control and financial planning.<\/li>\n\n\n\n Establishing costs for by-products and developing standard costs.<\/li>\n<\/ul>\n<\/li>\n\n\n\n Purchasing, procurement and exploration:<\/u><\/strong>\n\nDetermining the quantity and timing of purchases of raw materials, machinery etc.<\/li>\n\n\n\n Rules for buying and supplying under varying prices.<\/li>\n\n\n\n Bidding policies.<\/li>\n\n\n\n Equipment replacement policies.<\/li>\n\n\n\n Determination of quantities and timings of purchase.<\/li>\n\n\n\n Strategies for exploration and exploitation of new material sources.<\/li>\n\n\n\n Vendor analysis<\/li>\n\n\n\n Transportation planning<\/li>\n<\/ul>\n<\/li>\n\n\n\n Production management:<\/u><\/strong>\n\nPhysical distribution:<\/strong>\n\nLocation and size of warehouse distribution centres, retail outlets etc.<\/li>\n\n\n\n Distribution policy.<\/li>\n<\/ul>\n<\/li>\n\n\n\n Manufacturing and facility planning:<\/strong>\n\nProduction scheduling and sequencing.<\/li>\n\n\n\n Project scheduling and allocation of resources.<\/li>\n\n\n\n Number and location of factories, warehouses, hospitals, and their sizes.<\/li>\n\n\n\n Determining the optimum product mix.<\/li>\n<\/ul>\n<\/li>\n\n\n\n Manufacturing:<\/strong>\n