It had its early roots
inWorldWar II and is
business and industry
with the aid of
The activities carried out in an organization.
The process of observation and testing
characterized by the scientific method.
Situation, problem statement, model
construction, validation, experimentation,
Operations Research is a quantitative approach to
decision making based on the scientific method of
• 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").
More complete data
Consideration of all available options
Careful predictions of outcomes and
estimates of risk
The latest decision tools and techniques
This Situation Provides
Optimization is a word that
comes to mind first in
• 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
– Evaluate the alternatives.
– Choose an alternative.
– Implement the chosen alternative.
– Evaluate the results.
Problem Solving and Decision
Management Science Approach
of a problem
that exists in
“Right solution” can not be
obtained from the “wrong
The first and most
important stage of the
work is defining the
This phase helps examine
the problem at hand
Identification Of The Problem
The Establishment Of The Model
Development of the functional mathematical relationships that describe-
Constraints of the problem and
Non negativity condition
• Generally, experimenting with models
(compared to experimenting with the real
– 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)
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-
Operation research ensures the effective working of organizations by
providing solutions to their various problems.