Page 17 - DCOM303_DMGT504_OPERATION_RESEARCH

Operations Research

Notes Self Assessment

Fill in the blanks:
10. OR approach is typically based on the use of …………………. model.
11. Monthly plan of processes to be carried on is an example of …………..model.

12. There are two types of ……………….models—Verbal Models and Mathematical Models.
1.7 Summary

Operations Research (OR) is an analytical method of problem-solving and decision-making that
is useful in the management of organizations. Thus it is also known as a mathematical or
scientific analysis of a process or operation, used in making decisions. In other words, OR
represents the study of optimal resource allocation. The aim of OR is to provide rational basis
for decision making by seeking to understand and structure complex situations, and to utilize
this understanding to predict system behavior and improve system performance.

The tools of OR are not from any one discipline, rather mathematics, statistics, economics,
engineering, psychology etc, have contributed to this newer discipline of knowledge. 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, and
government of defense. The mathematical model can be deterministic or probabilistic in nature.
In deterministic model the parameters are considered to be defined and the outcome related to
a certain course of action is known with certainty. A problem can be modeled in differing ways,
and the choice of the appropriate model may be crucial to the success of the OR project.

1.8 Keywords

Analogue Models: Models which look like the real situation but represent and behave like a
system under study.
Operations Research: Operations Research is a scientific knowledge through interdisciplinary
team effort for the purpose of determining the best utilization of limited resources.
Physical Models: To deal with specific types of problems, models like diagrams, charts, graphs
and drawings are used, which are known as “Physical Models”.

Symbolic models: Models which use symbols and functions to represent variables and their
relationships to describe the properties of the system.
Verbal Models: These models describe a situation in written or spoken language. Written
sentences, books, etc., are examples of a verbal model.

1.9 Review Questions

1. What is Operations Research?

2. Give the historical background of Operations Research.
3. Give any three definitions of Operations Research and explain.
4. Discuss the significance and scope of Operations Research in Modern Management.

5. Define Operations Research and discuss its importance in decision-making.

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