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Operations Research




                    Notes          1.1 Meaning of Operations Research

                                   OR can be defined as:
                                   OR is the application of the methods of science to complex problem arising in the direction and
                                   management of large system of men, machines, materials and money in industry,  business,
                                   government of defense. The distinctive approach is to develop a scientific model of the system,
                                   incorporating measurements of factors such as chance & risk, with which to predict and compare
                                   the outcome of alternative decisions strategies and controls. The purpose is to help management
                                   determine its policies and actions scientifically.
                                                                                     — Journal of OR Society of UK
                                   “OR is an experimental and applied science devoted to observing, understanding and predicting
                                   the behaviour of purposeful man-machine systems; and OR workers are actively engaged in
                                   applying this knowledge to practical problems in business, government and society”
                                                                                          — OR Society of America
                                   This definition is not widely accepted and often criticized as it emphasizes on complex problems
                                   and  large systems  indicating that  OR  can  be used  in  highly  technical  and  sophisticated
                                   environment of large organizations.
                                   In operations research, problems are broken down into basic components and then solved in
                                   defined steps by mathematical analysis. Analytical methods used in OR include mathematical
                                   logic, simulation, network analysis, queuing theory, and game theory.

                                   1.2 Significance of Operations Research


                                   The basic question that comes to the mind is what is the importance of OR. Is knowledge of OR
                                   techniques really required? Can’t we do away with the OR techniques in our decision making
                                   process?
                                   The answer to all these questions is quite simple and lies in the understanding of the significance
                                   of OR. We have to know about different OR techniques because of the following reasons.
                                      The problem may be complex for which normal guess does not work. Or techniques help
                                       in arriving at a feasible solution to the problem that too with full analysis and research.
                                      The problem is very  important and no lethargy on part of the decision-maker can be
                                       entertained. In such a situation also, OR comes to rescue. OR methodologies are so detailed
                                       and meticulous that even a little scope for leaving a point unattended is unaffordable.

                                      The problem is new and no precedence exists to facilitate logical and intelligent decision
                                       making of the problem. In this situation, OR comes to the rescue of analysts and the reason
                                       for this is that OR has a large pool of techniques that aid to solve even new and unthought-
                                       of problems.
                                      The problem is repetitive and a  model may  be developed to enhance faster and better
                                       decisions. Again OR helps like nothing else to aid the analysts in such a situation by
                                       offering either a readymade model, or a readymade process to develop such a model and
                                       pacify the decision making process.







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