Operations research is a scientific approach to decision making that was developed during World War II and is now used widely in business and industry. It involves defining problems quantitatively and building mathematical models to represent real-world situations. These models are used to evaluate alternative solutions systematically and predict outcomes in order to optimize decisions. The process involves identifying problems, developing models, obtaining optimal solutions using techniques like linear programming, testing the model solutions, and implementing the best solution. Operations research helps organizations make more informed decisions using data, consider all options, and manage resources effectively.

1. By
Rajkumar Gupta
MBA FM-MARKETING
ROLL NO-38

2. Introduction
It had its early roots
inWorldWar II and is
flourishing in
business and industry
with the aid of
computer

3. Operations
The activities carried out in an organization.
Research
The process of observation and testing
characterized by the scientific method.
Situation, problem statement, model
construction, validation, experimentation,
candidate solutions.
Operations Research is a quantitative approach to
decision making based on the scientific method of
problem solving.

5. • 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").
Terminology

6.  In Industry
 Business
 Government
 Defense fields
 People
 Machine
 Material
 Money
management

7.  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

8. .

9. Optimization is a word that
comes to mind first in
operations research.

10. • 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
alternatives.
– Evaluate the alternatives.
– Choose an alternative.
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– Implement the chosen alternative.
– Evaluate the results.
Problem Solving and Decision
Making

11. Management Science Approach
Observation
• Identification
of a problem
that exists in
the system
or
organization.

12.  “Right solution” can not be
obtained from the “wrong
problem
 The first and most
important stage of the
work is defining the
problem well.
 This phase helps examine
the problem at hand
quantitatively.
Identification Of The Problem

13. The Establishment Of The Model
Development of the functional mathematical relationships that describe-
 Decision variables
 Objective function
 Constraints of the problem and
 Non negativity condition

14. • Generally, experimenting with models
(compared to experimenting with the real
situation):
– requires less time
– is less expensive
– involves less risk
Advantages of Models

15. Obtaining Model Solution
 This phase obtains an optimal solution for the
model by using various techniques.

16. 1. Linear Programming Problem (LPP)
2. Transportation Problem (TP)
3. Assignment Problem (AP)
4. Simulation
5. PERT/CPM
Various Techniques/Methods

17.  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

18. If past behavior is repeated when
provided similar inputs (a stable
solution is being obtained), the
model will be valid.

19. 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-
life problems
Implementation
Situation
Procedure
Implement
the Procedure

20. CONCLUSION
Operation research ensures the effective working of organizations by
providing solutions to their various problems.

21. THANK
YOU