LECTURE 3

INTRODUCTION TO OPERATIONS RESEARCH III

DR. ANUP KUMAR TRIPATHI

DEPARTMENT OF MINING ENGINEERING

NATIONAL INSTITUTE OF TECHNOLOGY KARNATAKA (NITK)
SURATHKAL − 575025, INDIA

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 INTRODUCTION TO OPERATIONS RESEARCH III

HISTORICAL DEVELOPMENT OF OPERATIONS RESEARCH

 OR came into existence as a discipline during WW II when there was a critical need to manage scarce
resources.

 Since war involved strategic and tactical problems that were highly complicated, to expect adequate
solutions from individuals or specialists in a single discipline was unrealistic.

Groups of individuals who were collectively considered specialists in mathematics, economics, statistics
and probability theory, engineering, and behavioural and physical sciences were formed as special units
within the armed forces in order to deal with the strategic and tactical problems of various military
operations.

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 After the war was over, scientists who had been active in military OR groups made efforts to apply OR
approach to civilian problems related to business, industry, research development, etc.

 There were three important factors behind rapid development of using OR approach:
1. Economic and industrial boom after WW II resulted in greater mechanization, automation,
decentralization of operations and division of management functions.

Industrialization resulted in complex managerial problems and therefore application of OR to

managerial decision making became popular.

2. Many operations researchers continued their research after the war.

Consequently some important advancements were made in various OR techniques.

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 In 1939, mathematicians L. Kantorvich and T. Koopmans developed mathematical theory of Linear
Programming.

In 1947, G. B. Dantzig developed simplex method for solving linear programs not possible by
graphical method.

Besides LP, many other techniques of OR such as statistical quality control, dynamic programming,
queuing theory and inventory theory were well developed before 1950.

3. Greater analytical power was made available by high-speed computers.

Use of computers made it possible to apply many OR techniques for practical decision analysis.

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 During the 1950s, there was substantial progress in application of OR techniques for civilian activities
along with a greater interest in professional development and education of OR.

Many Colleges and Universities introduced OR in their program curriculum.

Today all organizations recognize usefulness of OR in improving efficiency.

 OR club was formed in England in 1948.

It later changed its name to OR Society of UK.

Its journal OR Quarterly first appeared in 1950.

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 In 1965, project scheduling techniques P.E.R.T. and C.P.M. were developed as efficient tools for
scheduling and monitoring lengthy, complex and expensive projects of that time.

 During the 1960s, OR groups were formed in several organizations.

 Educational and professional development programs were expanded at all levels.

 Certain firms, specializing in decision analysis were also formed.

 Due to OR's multi-disciplinary character and its application in varied fields, it has a bright future →
provided people devoted to study of OR can help meet the needs of society.

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DEFINITIONS OF OPERATIONS RESEARCH

 OR is the application of methods of science to complex problems in the direction and management of
large systems of men, machines, materials and money in industry, business, government and defence.

The distinctive approach is to develop a scientific model of the system incorporating measurement of
factors such as chance and risk, with which to predict and compare outcomes of alternative decisions,
strategies or controls.

The purpose is to help management in determining its policy and actions scientifically.

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 OR is the systematic application of quantitative methods, techniques and tools to the analysis of problems
involving the operation of systems.

 OR utilizes planned approach/ scientific method and an interdisciplinary team in order to represent
complex functional relationships as mathematical models for the purpose of providing a quantitative basis
for decision making and uncovering new problems for quantitative analysis.

 OR is concerned with scientifically deciding how to best design and operate man-machine systems that
usually require allocation of scarce resources.

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 OR is the application of scientific methods, techniques and tools to problems involving the operations of a
system so as to provide those in the control of the system with optimum solutions to the problems.

 OR is the application of the scientific methods by scientists and subject specialists to the study of the
given operation.

Its purpose is to give administration, a basis for predicting quantitatively the most effective results of an
operation under given set of variable conditions and thereby to provide a sound basis for decision-making.

In OR, research techniques and scientific methods are employed for the analysis and also for studying the
current or future problems.

OR offers alternative plans for a problem to the management for decisions.

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Although OR never makes decisions for the management, it presents management with a careful scientific
and quantitative analysis of problem so that the management will be in a more proper position to make
sounder decisions.

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