What is Operations Research/ Management
Sciences?
Topic 1: Introduction to
Operations Research
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2. “Scientific approach to decision making that involves
the operations for organized systems. O.R. is
concerned with optimal decision making in and
modeling of deterministic and probabilistic systems that
originate from real life,” – Hillier & Lieberman,
Introduction to Operations Research, 7th Ed., Holden-
Day, 1996
3. “Operations Research is the application of scientific
methods to decision problems. It has found wide use
and acceptance in all areas of business, government
and industry.” – Saul L. Gass, College of Business &
Management, University of Maryland, 1979.
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1. The focus of the Operations Research is on applications of
mathematics and logic in research and decision-making on
operations, as well as problem solving in all types of public
and private organization business, industry, government and
state enterprises in order to bring about optimal outcomes in
organizational operations.
4. “The use of analytic methods adapted from
mathematics for solving operational and business
problems” – Computer Dictionary, Charles J. Sippl and
Charles P. Sippl, Howard W. Sams & Co., Inc.,
Indianapolis, 1978.
5. “A scientific method of providing executive department
with a quantitative basis for decisions making
operations under their control.” – Morse & Kimball,
Methods of Operations Research, Columbia University
Press for office of Naval Research, 1943 (9th
printing, 1963).
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 6. “A branch of applied mathematics wherein the
application is to the decision making process,” –
Donald Gross, Department of Operations Research,
The George Washington University, 1979.
7. Operations research employs mathematical models to
suggest how best to operate and coordinate the
activities within an organization. The tools of operations
research are applied in industry, commerce,
government, the military, education, health - in fact in
virtually any area of human activity.
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Applications of Operations Research:
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8. Operations Research (OR) is the study of how to form
mathematical models of complex engineering and
management problems and how to analyze them to
gain insight about possible solutions. - Ronald L.
Rardin, Optimization in Operations Research, prentice-
Hall, Inc., 1998
The Origins of Operations Research:
1. The World War II
2. Industrial Revolution
3. Computer Revolution
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 THE DISCIPLINE THE METHODS AND THEORIES CHARACTERISTICS OPERATIONS RESEARCH
Physical Sciences Decision Theory
Mathematics Mathematical Programming ➢ Operation Research is the applications of scientific
Political Sciences Queuing Theories methods, techniques and tools to problems involving the
Social Sciences Scheduling Theory operations of a system so as to provide those in control
Business Administration Reliability Theory of the system with optimum solutions to the problems.
Industrial Engineering Probability& Statistics The significant features of operation research are as
Behavior Science Stochastic Process below :
Economics Simulation 1. OR is a system approach
Computer Science Inventory Theory
... Network Theory 2. OR is an Inter-disciplinary team approach
↘ ↙ ... 3. OR increases creative abilityof
Operations Research the decision maker
↓
The Applications 4. OR is Scientific approach
↓ 5. OR is Objectivistic approach
Education, Manufacturing, Heath, Finance, Energy and Utilities,
Transportation, Environmental, Military, Forest Management . . .

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Overview of The
Operations Research Modeling Approach
CHARACTERISTICS OPERATIONS RESEARCH
Define the Problem Gathering
6. Digital computer of Interest Relevant Data

7. Quantitative solution revise

8. OR is a continuing process
Formulating a Developing
9. Optimizing Nature Mathematical Computer
Test the
Model
10. Human judgment
Model Algorithm

Applications
Implement
of the Model

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 Define the problem of interest: Determine the
appropriate objectives, constraints, interrelationships
between the area to be studied and other areas of the
organization, possible alternative courses of action,
time limits for making a decision, . . .
Gathering relevant data: e.g. install a new
computer-based management information system to
collect the necessary data.
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Test the model: The early version of a large mathematical
model inevitably contains many flaws. e.g. some interrelationships
have not been incorporated into the model, some parameters have
not been estimated correctly.
Application of the model: If the model is to be used
repeatedly, then it is necessary to install a well-documented
system for applying the model as prescribed by management.
Implementation: The success of the implementation phase
depends a great deal upon the support of both top management
and operating management.
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Formulate a mathematical model:
Build a mathematical model for abstracting
the essence of the subject of inquiry,
showing interrelationships, and facilitating
analysis.
Developing algorithm: Develop a (computer-based)
procedure for deriving solutions to the problem from
this model or using one of a number of readily
available software packages. Samuel Eilon:
"optimizing is the science of the ultimate; satisfying is
the art of the feasible."
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OR Techniques
A brief account of some of the important O.R
techniques is given below:-
1.Allocation models: Involves the allocation of resources to
activities in such a manner that some measure of effectiveness is
optimized. Solution through linear and non linear programming
techniques.
2. Sequencing: Placing item in certain sequence or order for
service.
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3. Waiting or Queuing theory: Interruptions can be occurred
due to many reasons. These cause waiting line problem. Waiting
line theory aims in minimizing the cost of both servicing and
waiting.
4. Inventory model: Regarding the holding or storing the
resources.
5. Competitive Strategy model: These are model which arise
when two or more people are competing. Game model is used to
determine the optimum strategy in a competitive situation.
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6. Decision theory: Concerned with making decisions under the
conditions of certainty, risk and uncertainty.
7. Network analysis: determination of an optimum sequence of
performing certain operations concerning some jobs to minimize
overall time and money.
8. Simulation: Technique of testing a model which resembles a
real life situation. Imitate an operation before actually performing
it.
9. Replacement theory: Concerned with situation that arise when
some items need replacement because the same may be deteriorated.
The model concerned with prediction of replacement cost and
determination of the most economic replacement policy.
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