This document discusses operations research (OR), including its definition, advantages, and methodology. OR helps managers make more effective decisions by increasing alternatives and evaluating risks. It also facilitates coordination, control, and improved productivity. The methodology of OR involves formulating the problem, building a mathematical model, obtaining input data, solving the model, validating the model, and implementing the solution. OR uses scientific methods and interdisciplinary teams to find optimal solutions to operational problems in organizations.

1. Operations Research
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Eng. Dahir I. Jibril
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2. What is Operations
Research?
Why do we need to learn
Operations Research?
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3. Advantages of OR
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1. Effective Decisions
 OR helps the managers to take better and quicker
decisions.
 It increases the number of alternatives.
 It helps the managers to evaluate the risk and results
of all the alternative decisions.
 So, OR makes the decisions more effective.
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2. Better Coordination
OR helps to coordinate all the decisions of the organisation.
It coordinates all the decisions taken by the different levels
of management and the various departments of the
organisation.
e.g. It coordinates the decisions taken by the production
department with the decisions taken by the marketing
department.
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3. Facilitates Control
OR helps the manager to control his subordinates. It helps
the manager to decide which work is most important. The
manager does the most important work himself, and he
delegates the less important work to his subordinates.
OR helps a manager to fix standards for all the work. It helps
him/her to measure the performance of the subordinates. It
helps the manager to find out and correct the deviations
(difference) in the performance. So, OR facilitates control
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4. Improves Productivity
OR helps to improve the productivity of the organisation.
It helps to decide about the selection, location and size of the factories,
warehouses, etc. It helps in inventory control. It helps in production
planning and control. It also helps in manpower planning.
OR is used in expansion, modernisation, installation of technology, etc.
OR uses many different mathematical and statistical techniques to
improve productivity.
Simulation is used by many organisations to improve their productivity.
That is, they try out many production improvement techniques on a
small scale. If these techniques are successful then they are used on a
large scale
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7. TIME STARVED EXECUTIVES ARE MAKING
BOLDER DECISIONS WITH LESS RISK AND
BETTER OUTCOMES.
THEIR SECRET?
OPERATIONS RESEARCH
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8. Naming
This course is named as:
Operations Research (Operational Research)
Management Science
Systems Analysis
Decision Analysis
Decision Science
Quantitative Techniques of Decision Making
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9. OPERATIONS
The activities carried out in an organization
related to attaining its goals and objectives.
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10. RESEARCH
The process of observation and testing characterized
by the scientific method.
The steps of the process include observing the
situation and formulating a problem statement,
constructing a mathematical model, hypothesizing
that the model represents the important aspects of
the situation, and validating the model through
experimentation.
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11. ORGANIZATION
The society in which the problem arises or for which the
solution is important. The organization may be a
corporation, a branch of government, a department
within a firm, a group of employees, or perhaps even a
household or individual
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12. DECISION MAKER
An individual or group in the organization capable
of proposing and implementing necessary actions
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13. History of OR
Originated from the British Army during WW2 to examine
strategies and tactics of military operations.
Reason: Efficient allocations (optimization) of scarce
resources for the war effort.
After 1947, OR was introduced to industries.
Optimization means:
Max. Profit/Min. Cost --- Industries
Satisfies/Serves the Public---Governmental
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14. Definition
OR is the application of scientific Methods, Techniques
and Tools to problems involving the operations of
systems so as to provide those in control of operations
with optimum solutions to the problems.
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15. Decision-making is a fundamental part of the management
process and it pervades the activities of every
business/technical manager.
Modern management is adopting and applying
quantitative techniques to aid the process of decision
making.
Intelligent application of appropriate tools can reduce an
otherwise unwieldy and complex problem to one of the
manageable dimensions.
Quantitative techniques are only to supplement—not to
supplant—the manager’s sense of decision making.
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16. Manager can use analytical tools in a wise manner only
if he/she comprehends fully the underlying
assumptions:
 What the analysis achieves
 What compromises the model used makes with the reality,
and above all
 How the conclusions derived are to be adapted to the dynamic
environmental conditions.
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17. Features of OR
1. Decision making:
Primarily OR is addressed to managerial decision
making and problem solving.
Decision making steps:
 Problem definition and Criteria establishment
 Selection of alternative courses of action
 Determine model and value of the parameters of the
process
 Evaluate the alternatives and choose the best
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18. Features cont..
2. Scientific Approach:
OR employs scientific methods for the purpose of
problem-solving, and there is no place for whims
and guesswork.
3. Objective:
OR attempts to locate the best (optimal)solution
to problem under consideration.
4. Inter-disciplinary team approach:
It is inter-discipline in nature and requires a team
approach to a solution to the problem.
Managerial problems have economic, physical, psychological,
sociological and engineering aspects. And this requires a blend of people
with expertise in maths, statistics, engineering, management, economics
and computer science, etc.
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19. Features cont...
5. Digital computers:
The use of digital computers has become an
integral part of the operations research approach
to decision making.
Reasons:
 Complexity of the models
 Volume of the data
 Computations
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20. Methodology of OR
OR approach to decision making consists of:
1. Formulate the problem
2. Model building __ mathematical representations
3. Acquire input data
4. Solve model formulated and interpret results
5. Validate the model
6. Implement the solution obtained
NOTE: One step need not be completed fully before the
next is started. Modifications of the steps are
possible.
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21. Methodology cont...
1. Formulate problem:
Understand and identify the problem in the first place.
Higher cost is a symptom of excessive inventory level or wastage.
2. Model building: Heart of OR.
Model: theoretical abstraction of a real thing.
Types of models:-
 Symbolic/Mathematical Model: Mathematical representation of
a real thing. E.g. LPP
 Physical model: Physical or schematic representation of real
thing.
 Iconic model: the scaled up/down versions of the particular thing
they represent. E.g. Model airplane in wind tunnel, building architect.
 Analogue: they use one set of properties to represent another.
E.g.
Electrical network--- transportation
Contour lines on map--- elevations
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22. Methodology cont...
3. Obtaining the input data:
Sources like company documents/reports, interviews
with employees may be used for collecting data.
4. Solution of model implies the determination of a
specific set of decision variables that would yield a
desired level of output. Solutions may be
feasible/infeasible, optimal/non-optimal, and
unique/multiple solutions.
5. Model validation:
Validation requires determining whether the model
can adequately and reliably predict the behaviour of
the real system it seeks to represent.
6. Implementation:
The process of incorporating the solution in the
organisation.
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