Dt.30.08.

22
Sub:OR
Ananta Prasad Nanda
Faculty ,IBCS
Sub.Outline:Characterstics of OR
 Evaluation of OR:
The name operations research evolved in the year 1940.
During World War 2, a team of scientist (Blackett's Circus) in UK
applied scientific techniques to research military operations to
win the war and the techniques thus developed was named as
operation research.
Operations research (OR) is an analytical method of problem-
solving and decision-making that is useful in the management
of organizations. In operations research, problems are broken
down into basic components and then solved in defined steps
by mathematical analysis.
Process Of OR:
The process of operations research can be broadly broken down
into the following steps:
Identifying a problem that needs to be solved.
Constructing a model around the problem that resembles the
real world and variables.
Using the model to derive solutions to the problem.
Testing each solution on the model and analyzing its success.
Implementing the solution to the actual problem.
Characteristics of operations research
There are three primary characteristics of all operations research efforts:
1.Optimization- The purpose of operations research is to achieve the best
performance under the given circumstances. Optimization also involves
comparing and narrowing down potential options.
2.Simulation- This involves building models or replications in order to try out
and test solutions before applying them.
3.Probability and statistics- This includes using mathematical algorithms
and data to uncover helpful insights and risks, make reliable predictions
and test possible solutions
Importance of operations research
The field of operations research provides a more powerful approach to
decision making than ordinary software and data analytics tools. Employing
operations research professionals can help companies achieve more
complete datasets, consider all available options, predict all possible
outcomes and estimate risk. Additionally, operations research can be
tailored to specific business processes or use cases to determine which
techniques are most appropriate to solve the problem.
Uses of operations research
Operations research can be applied to a variety of use cases, including:
Scheduling and time management.
Urban and agricultural planning.
Enterprise resource planning (ERP) and supply chain management (SCM
).
Inventory management.
Network optimization and engineering.
Packet routing optimization.
Risk management.
Models in Operation Research:

A map, activity charts balance sheets, PERT network, break-even

equation, economic ordering quantity ,Markov Analysis, Queuing
models etc.
Scope of Operation Research

In recent years of organized development, OR has entered successfully in many different areas of
research. It is useful in the following various important fields

In agriculture:

 With the sudden increase of population and resulting shortage of food, every country is facing
the problem of

 Optimum allocation of land to a variety of crops as per the climatic conditions

 Optimum distribution of water from numerous resources like canal for irrigation purposes
Cont…..
 In finance
 In Industry
 In Marketig
 In Personal Mgt.
 In Production Industry
Basic Assumption Of L.P.P:
1.Proportionality: The basic assumption underlying the linear
programming is that any change in the constraint inequalities will
have the proportional change in the objective function. This means, if
product contributes Rs 20 towards the profit, then the total
contribution would be equal to 20x1, where x1 is the number of units of
the product.For example, if there are 5 units of the product, then the
contribution would be Rs 100 and in the case of 10 units, it would be
Rs 200. Thus, if the output (sales) is doubled, the profit would also be
doubled.
2.Additivity: The assumption of additivity asserts that the total profit
of the objective function is determined by the sum of profit
contributed by each product separately. Similarly, the total amount of
resources used is determined by the sum of resources used by each
product separately. This implies, there is no interaction between the
decision variables.
Cont..
3.Continuity: Another assumption of linear programming is
that the decision variables are continuous. This means a
combination of outputs can be used with the fractional
values along with the integer values.For example, If 52/3
units of product A and 101/3 units of product B to be
produced in a week. In this case, the fractional amount of
production will be taken as a work-in-progress and the
remaining production part is taken in the following week.
Therefore, a production of 17 units of product A and 31 units
of product B over a three-week period implies 52/3 units of
product A and 101/3 units of product B per week.
Cont…
4.Certainty: Another underlying assumption of linear
programming is a certainty, i.e. the parameters of objective
function coefficients and the coefficients of constraint
inequalities is known with certainty. Such as profit per unit of
product, availability of material and labor per unit,
requirement of material and labor per unit are known and is
given in the linear programming problem.
5.Finite Choices: This assumption implies that the decision
maker has certain choices, and the decision variables
assume non-negative values. The non-negative assumption
is true in the sense, the output in the production problem
can not be negative. Thus, this assumption is considered
feasible