Operations research emerged during World War II to help with military operations and decision making. After the war, it was applied to civilian problems in business and industry. Operations research uses scientific techniques like linear programming and queuing models to help managers make better decisions. It involves modeling real-world problems and using analysis to solve them and provide optimal solutions to aid decision making. Both qualitative and quantitative approaches can be used in operations research and decision making.
Operations research emerged during World War II to help with military operations and decision making. After the war, it was applied to civilian problems in business and industry. Operations research uses scientific techniques like linear programming and queuing models to help managers make better decisions. It involves modeling real-world problems and using analysis to solve them and provide optimal solutions to aid decision making. Both qualitative and quantitative approaches can be used in operations research and decision making.
Operations research emerged during World War II to help with military operations and decision making. After the war, it was applied to civilian problems in business and industry. Operations research uses scientific techniques like linear programming and queuing models to help managers make better decisions. It involves modeling real-world problems and using analysis to solve them and provide optimal solutions to aid decision making. Both qualitative and quantitative approaches can be used in operations research and decision making.
Operations research emerged during World War II to help with military operations and decision making. After the war, it was applied to civilian problems in business and industry. Operations research uses scientific techniques like linear programming and queuing models to help managers make better decisions. It involves modeling real-world problems and using analysis to solve them and provide optimal solutions to aid decision making. Both qualitative and quantitative approaches can be used in operations research and decision making.
An Overview of Operations Research It is generally agreed that operations research came into existence during the Second World War (WW-II).
However, a particular model and technique
of operations research can be traced back much earlier.
The term operations research was coined as a
result of research on military operations during this war. Introduction to Operations Research 2 Con… After the war ended, scientists who had been active in the military operations research groups made their efforts to apply the operations research approach to civilian problems, related to business, industry, research and development, etc.
And today, operations research is a
dominant and very important quantitative decision making tool. Introduction to Operations Research 3 Con… As its name implies, operations research involves a “research on operations”.
An operation is the process of converting
inputs into goods and services.
Thus, operations research is about
conducting a research on operations of an organization and solving problems related to these operations.
Introduction to Operations Research 4
Con… Operations research also known as management science is the application of a scientific approach to solving management problems in order to help managers make better decisions.
Management science can be used in a variety
of organizations to solve many different types of problems (example: problems in government, military operations, businesses, industries, health sectors, etc).
Introduction to Operations Research 5
Con… The following are some of the operations research techniques that will be discussing in this course: Linear programming Distribution models Queuing Models Inventory Management Techniques Project scheduling (PERT/ CPM) Game theory Introduction to Operations Research 6 The Process of Operations Research Real World Problem
Abstraction
Model Construction
Assessment Analysis
Model Solution
Interpretation
Real World Solution
Introduction to Operations Research 7
Problem Solving and Decision Making
A problem is defined as the difference
between expected and/or desired outcomes and actual outcomes.
Problem solving is, therefore, the process
of identifying a difference between the actual and the desired state of affairs and taking action to resolve the difference.
Introduction to Operations Research 8
Steps in Problem Solving: Identify and Define the Problem: Problem is a necessary condition for a decision. In order to identify a problem in the system, the system must be closely and continuously observed. The existence of a problem implies that the objectives of the firm are not being met. Problem definition should be in a clear and concise manner. Introduction to Operations Research 9 Determine set of Alternative Solutions:
The key to this step is to not limit yourself
to obvious alternatives or what are worked in the past but to be open to new and better alternatives.
Introduction to Operations Research 10
Determine the Criterion:
If the criterion to select the best alternative
is only one, it is called a single-criterion decision problem, otherwise called multiple-criteria decision problem. The criteria are probably not equally important.
Introduction to Operations Research 11
Evaluate the alternatives:
As you evaluate each alternative, you
should be looking at the likely positive and negative cones for each.
It is unusual to find one alternative that
would completely resolve the problem.
Introduction to Operations Research 12
Con… Choose the Best Alternative:
Most of the time, it is subjectively you
select the best alternative.
Introduction to Operations Research 13
Implement the Selected Alternative:
Deciding on the best alternative is not the same as
doing something.
A decision only counts when it is implemented.
As Gerstner (CEO of IBM) said, “there are no
more prizes for predicting rain. There are only prizes for building arks.”
Introduction to Operations Research 14
Evaluate the Results:
Every decision is intended to fix a
problem.
The final test of any decision is whether or
not the problem was fixed.
Introduction to Operations Research 15
Decision Making Making appropriate decision is the most important aspect in business. Decision making is a primary function of management. Every one of us takes number of decisions every day. Decision Making is the process of selecting the best, based on some criteria, among the alternatives to solve a certain problem.
Introduction to Operations Research 16
Con… A decision is a choice between two or more alternatives.
If you only have one alternative, you do
not have a decision.
It is associated with the first five steps of
the problem solving process. Introduction to Operations Research 17 Qualitative and Quantitative Decision Making
Decision making can be either qualitative or
quantitative. In qualitative decision making, intuition, subjective judgment, and past experience are used. Decisions based on quantitative analysis tend to be more objective than based on a purely qualitative analysis. Although operations research is not entirely quantitative, its application falls under the heading of quantitative analysis. Introduction to Operations Research 18 The quantitative approach is usually used when:
The problem is simple.
The problem is familiar.
The costs involved are not so great.
Immediate decisions are needed, etc.
Introduction to Operations Research 19
The qualitative approach is used when:
The problem is complex.
It is impossible to decide without qualitative analysis. The problem is new. The costs involved are substantial Enough time is available to analyze the problem, etc.