Inroduction Of Or


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Inroduction Of Or

  2. 2. What is Operations Research? <ul><li>The terminology &quot; Operations Research &quot; is somewhat funny, since it is not any more concerned with operations, nor does its application involve any research. </li></ul>
  3. 3. What is Operations Research? <ul><li>Operations Research is the discipline of applying advanced analytical methods to help make better decisions. By using techniques such as mathematical modeling to analyze complex situations, operations research gives executives the power to make more effective decisions. </li></ul>
  4. 4. What is Operations Research? <ul><li>OR is the application of scientific methods, techniques and tools to problems involving the operations of system so as to provide these in control of the operations with optimum solutions to the problem. </li></ul>
  5. 5. Historical Development of OR <ul><li>The main origin of OR was during the second world war. At that time, the military management in England were having very limited military resources, it was necessary to decide upon the most effective utilization of them, e.g: the efficient ocean transport, effective bombing etc. </li></ul>
  6. 6. Scientific Methods in OR <ul><li>It involves three phases: </li></ul><ul><li>Judgment Phase </li></ul><ul><li>Research Phase </li></ul><ul><li>Action Phase </li></ul>
  7. 7. <ul><ul><ul><ul><ul><li>Judgment Phase </li></ul></ul></ul></ul></ul><ul><li>Identification of the problem </li></ul><ul><li>Selection of Objective </li></ul><ul><li>Application of appropriate measures </li></ul><ul><li>Formulation of problem relative to objective </li></ul>
  8. 8. Research Phase <ul><li>Observation and data collection </li></ul><ul><li>Formulation of hypothesis </li></ul><ul><li>Observation and experimentation to test the hypothesis </li></ul><ul><li>Analysis of available information and verification of hypothesis </li></ul><ul><li>Prediction of results from hypothesis. </li></ul><ul><li>Generalization of result and consideration of alternatives </li></ul>
  9. 9. Action Phase <ul><li>Recommendations </li></ul><ul><li>Implementation </li></ul>
  10. 10. <ul><li>Step I: Formulating the problem </li></ul><ul><li>Step II: Collecting data and constructing mathematical model </li></ul><ul><li>Step III: Solving the mathematical model </li></ul><ul><li>Step IV: Testing the model and its solution </li></ul><ul><li>Step V: Implementing the solution </li></ul>Methodology of OR
  11. 11. <ul><ul><ul><ul><ul><li>Advantages of OR </li></ul></ul></ul></ul></ul><ul><li>Substantial amount of time and effort is saved </li></ul><ul><li>Reduce the chance of errors </li></ul><ul><li>Errors can easily be detected and corrected </li></ul><ul><li>Ability to judge applicability and limitations of solution techniques to a particular problem </li></ul>
  12. 12. Shortcomings of OR <ul><li>Solution to a problem is derived either by </li></ul><ul><li>making it simplified or simplifying assumptions </li></ul><ul><li>and thus, such solutions have limitations </li></ul><ul><li>Sometimes model do not represent the realistic </li></ul><ul><li>solutions in which decisions must be made </li></ul><ul><li>Many real world problems just cannot have an </li></ul><ul><li>OR solution </li></ul>
  13. 13. Applications of OR <ul><ul><li>In Agriculture </li></ul></ul><ul><ul><ul><li>Optimum allocation of land to various crops in accordance with the climatic conditions </li></ul></ul></ul><ul><ul><ul><li>Optimum distribution of water from various resources </li></ul></ul></ul><ul><ul><li>In Finance </li></ul></ul><ul><ul><ul><li>To maximize per capita income with minimum resources </li></ul></ul></ul><ul><ul><ul><li>To find out the profit plan for the company </li></ul></ul></ul><ul><ul><li>In Industry </li></ul></ul><ul><ul><ul><li>Decide optimum allocation of various limited resources such as men, machines, material, money, time etc. </li></ul></ul></ul>
  14. 14. <ul><ul><li>In Marketing </li></ul></ul><ul><ul><ul><li>Where to distribute the products for sale so that the total cost of transportation is minimum </li></ul></ul></ul><ul><ul><ul><li>How to select the best advertising media </li></ul></ul></ul><ul><ul><ul><li>How, when and what to purchase at the minimum possible cost </li></ul></ul></ul><ul><ul><li>In Personnel Management </li></ul></ul><ul><ul><ul><li>To appoint the most suitable persons on minimum salary </li></ul></ul></ul><ul><ul><ul><li>To determine the best age of retirement for the employees </li></ul></ul></ul><ul><ul><li>In Production Management </li></ul></ul><ul><ul><ul><li>To find out the number and size of the items to be produced </li></ul></ul></ul><ul><ul><ul><li>In scheduling and sequencing the production run by proper allocation of machines </li></ul></ul></ul>Applications of OR