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Neha Tikoo, Lovely Professional University Unit 1: Introduction to Operations Research

Unit 1: Introduction to Operations Research Notes

CONTENTS
Objectives
Introduction

1.1 Meaning of Operations Research
1.2 Significance of Operations Research
1.3 Scope of Operations Research

1.4 History of Operations Research
1.5 Applications of Operations Research
1.6 Models of Operations Research
1.7 Summary
1.8 Keywords

1.9 Review Questions
1.10 Further Readings

Objectives

After studying this unit, you will be able to:

 Understand the meaning of Operations research
 Know about the history of operations research
 Discuss the scope and application of operations research
 Explain the various types of models used in operations research

Introduction

Operations Research has gained wider acclaim in the modern complex business world. For
every complex problem of an industry today, well defined Operations Research tools are the
solace. Decision making in today’s social and business environment has become a complex task.
Well structured problems are routinely optimized at the operational level of organizations, and
increased attention is now focused on broader tactical and strategic issues. To effectively address
this problems and provide leadership in the advancing global age, decision makers cannot
afforded to make decisions by simply applying their personal experiences, guesswork’s or
intuitions, because consequences of wrong decisions are serious and costly. Hence, an
understanding of the applicability of the quantitative methods to decision making is of
fundamental importance to decision makers. Operations research is one such tool that helps in
comparison of every possible alternative (course of action) to know the potential outcomes,
permits examination of the sensitivity of the solution to changes or errors.
This unit introduces the basics of operation research to help students to get an overview of
operations research and thereby help in better understanding of the subsequent units.

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