DEFINITION OF OPERATIONS RESEARCH

It is a scientific methodology analytical, experimental, quantitative by which, assessing the overall implications of various alternative courses of action in a management system, provides an improved basis for management decisions.

CHARACTERISTICS OF OR
Considers the holistic approach Uses mixed team methods Uses scientific methods Interdisciplinary team approach Tries to optimize the total output
Maximize profit Minimize losses

Emphasis on the overall approach to the system Gives bad answers to the problems where worse could by given Determines what factors influence and measure the factors It consists of studying an operation

PHASES/ PROCEDURE OF OR
Formulating the problem Collecting data Constructing a mathematical model to represent the system under study Deriving a solution from the model Testing the model & derived solution Establishing controls over the solution with any degree of satisfaction Putting the solution to work/ implementation

MODELS OF OR
Allocation (Distribution) models: LPP, TP and AP Waiting line models (Queuing) Game theory (Competitive strategy model) Inventory models (Production) Replacement models Job sequencing models Network models Simulation models Markovian models

APPLICATIONS/ SCOPE OF OR
Production management: Product mix, Assembly
line balancing, Production scheduling etc

Marketing

Effectiveness of advertising campaign, advertising media mix, travelling salesmen problems etc)

management:

Manpower management Transportation problems Assignment problems Military applications

APPLICATIONS/ SCOPE OF OR (Cont)

Agriculture applications Facilities location Hydel power generation Portfolio selection Financial mix strategy Airline routing Diet problems Environmental protection Urban development

BASIC REQUIREMENTS OF OR
Objective function must be well defined Must have alternative courses of actions to choose Should have constraints to some of the resources Function obtained must be in linear equation