OPERATION RESEARCH Operation Research can be

Transcript:OPERATION RESEARCH Operation Research can be:
OPERATION RESEARCH Operation Research can be defined as the use of quantitative methods to assist analysts and decision makers in designing, analysing and improving the performance or operation of system. According to HM Wagner, “ Operation Research is a scientific approach to problem solving for executive management”. DECISION MAKING THROUGH OPERATION RESEARCH Operational Research allow people to analyse a greater number of alternatives and constraints than would usually be possible, if they were to use only an initiative approach. Using Operation Research, It is easier to analyse multiple alternatives, which results in greater confidence in the optimal choice. DECISION MAKING THROUGH OPERATION RESEARCH Business managers face an endless list of complex issue everyday. They must make decisions about financing, where to build a plant, how much of a product to manufacture, how many people to hire, and so on, often, the factors that make up business issues are complicated, and they may be difficult to comprehend. Operation Research is a way to deal with these thorny problems. NATURE & SIGNIFICANCE OF OPERATION RESEARCH Systematic Orientation Operation Research tries to identify all possible interaction in the activities of organization & studies their impact. Interdisciplinary System Approach OR is performed by a team of scientist drawn from different facilities, statistics, economics, engineering, management, physics etc. NATURE & SIGNIFICANCE OF OPERATION RESEARCH Scientific Approach It is a formalised process of reasoning where the problems are defined & analysed scientifically. Decision Making OR is a science which helps management to take better decision. NATURE & SIGNIFICANCE OF OPERATION RESEARCH Optimization Objective It attempts to find the best and optimal solution to a problem using OR techniques. Bad Answers to a Problem OR cannot give perfect solution to a problems. CHARACTERISTICS OF OPERATION RESEARCH OPPORTUNITIES OF OPERATION RESEARCH It compels the decision-maker to be quite explicit about his objective, assump tions and his perspective to constraints. It makes the decision-maker very carefully consider exactly what variables influence decisions. Quickly points out gaps in the data required to support workable solutions to a problem. SHORTCOMINGS OF OPERATION RESEARCH The solution to a problem is often derived either by making it simpler or simplifying assumptions and thus such solutions have limitations. Sometimes models do not represent the realistic situations in which decisions must be made. Often the decision maker is not fully aware of the limitations of the models that he is using. MODELS AND MODELLING IN