Meaning of Operations Research
by Mahesh P.Kumar
INTRODUCTION
A person who wants to be a succesful manager must possess the art and skills of rational and logical decision making. It ,however, has been experienced that many managers suffer from what is known as decidophobia. Such managers are not able to make the right type of decision at
proper time as they keep on postponing the decisions . Under such situation the manager feels the need of certain techniques that can help him in the decision
making.Here quantitative techniques comes to the rescue of decision maker . In fact operations research techniques create information base that helps the management in decision making.
WHAT IS OPERATIONS
RESEARCH
Operations Research is collection of various optimizing
techniques.Operations research is a branch of quantitative techniques ,which
are concerned with creation of information base that helps in decision making.
Operations Research is set of certain quantitative techniqus like linear
programming, assignment technique, transportation technique, integer
programming, etc. All these techniques aim at optimizing i.e. maximizing the
profits or minimizing the cost. In operations research the practitioner first
converts the real life problem in a mathematical model and then a suitable
tecnique is applied to solve the problem . During the solution process various
alternatives are developed and finally decision is made.The decision making is
concerned with selection of best alternative among the various alternatives so
developed.Infact OR/MS generates information and provides logic that helps
management in decision making.
OR/MS involves rational approach . It does
so by making optimum utilizaton of the scarce resources. In management
resouces are classified as six M's i.e. Men,Money,Material, Machines,
Methods,and Markets.Operations research involves the use of techniqus that
ensure the best utilization of these resources.
OR/MS Techniques can be
used to solve the problems faced during various 'operations'.In 1940's opertions
research techniques were basically applied in defence operations .But today
OR/MS Techniques are applied in many operations belonging to business, commerce,
industry, and also various areas of management namely production, finance,
personnel, and marketing .
OR/MS is a dynamic field of study.OR/MS
methods are being improved over the period of time.
Operations
Research is a set of quantitative methods of scientific nature in the sense that
it involves the observation of a problem, then defining it and converting it in
a operations research model, solving it manually or through software help and
finally implementing it and ensuring follow up.
The study and
soluton of problem through operations research requires team work. It may
involve help from statistician, mathematician, economist, management expert and
computer expert. Infact many softwares(like TORA, LINDO, etc) have been devloped
by various authors , publishers and software development agencies. These
software help the user to step through the iterative computations and thereby
saves time and effort.
br>
The term is known as operational
research in the UK, where as is better known as operations research
in US. however in any case it is being abbreviated as OR.Some experts
also name it as Mangement Science ,which implies use of scientific methodology
to solve the problems of business mangement .In other words Mangement
Science is concerned with application of quantitative techniques to solve
management problems.
To sum up the meaning ,OR/MS is collection of
advanced quantitative/statistical techniques that ensure better decision to
management problems than the solutions just based on past experience or
manager's personal intitution.
.
WHY TO STUDY *
OR/MS*?
OR/MS provide our decision making process a sense of
direction. Decisions based on OR/MS techniques aim at the
follwing.
1)To make optimum utilization of the resources. We know
that every firm ,company
, or even country has limited amount of resources.
OR/MS techniques ensure effective utilization of the scarce resources
2)To
minimize cost:OR/MS aim at minimization of costs.In the broader sense
minimization of costs includes minimization of time , wastage, and manpower
requirements.
3)To maximize profits:OR/MS techniques include
maximization of profits, and also maximization of efficiency and
productivity.
4)To provide information base for decision making:OR/MS
is concerned with creation of quatitative information base for selection of a
particular corse of action from a set of alternatives.
5)To provide
solutions for management problems :OR/MS helps management in determination
of policies and actions scientifically.
BRIEF HISTORY OF*
OR/MS*Operations Research was a subject of discussion in the days of world war II ,When many countaries involved were facing the problem of scarce resources,available to them in limited quantity. At this point of time operations research originated as a tool of military research.however when the war was over the experts in this field were invited to deal with the problems of limited resource utilisation in the shattered industry.
THE METHODOLOGY OF
*OR/MS*...................
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WHY OPERATIONS RESEARCH IS BECOMING
POPULAR ?
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Mahesh P.Kumar [email protected]
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