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Characteristics of Operations Research Managment

Operations research uses mathematical modeling and statistics to optimize objectives like profit, performance, and yield or minimize losses and risks. It draws on interdisciplinary teams to build scientific models of complex systems and uncover new problems through quantitative analysis and simulation. The management of companies has benefited from operations research providing optimal solutions while accounting for human factors.

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Raghavendra yadav KM
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25K views2 pages

Characteristics of Operations Research Managment

Operations research uses mathematical modeling and statistics to optimize objectives like profit, performance, and yield or minimize losses and risks. It draws on interdisciplinary teams to build scientific models of complex systems and uncover new problems through quantitative analysis and simulation. The management of companies has benefited from operations research providing optimal solutions while accounting for human factors.

Uploaded by

Raghavendra yadav KM
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOC, PDF, TXT or read online on Scribd
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Characteristics of Operations Research

Operations research, an interdisciplinary division of mathematics and science, uses


statistics, algorithms and mathematical modeling techniques to solve complex
problems for the best possible solutions. This science is basically concerned with
optimizing maxima and minima of the objective functions involved. Examples of
maxima could be profit, performance and yield. Minima could be loss and risk. The
management of various companies has benefited immensely from operations research.

Operations research is also known as OR. It has basic characteristics such as systems
orientation, using interdisciplinary groups, applying scientific methodology,
providing quantitative answers, revelation of newer problems and the consideration of
human factors in relation to the state under which research is being conducted.

Systems Orientation
1. This approach recognizes the fact that the behaviour of any part of the system
has an effect on the system as a whole. This stresses the idea that the
interaction between parts of the system is what determines the functioning of
the system. No single part of the system can have a bearing effect on the
whole.
OR attempts appraise the effect the changes of any single part would have on
the performance of the system as a whole. It then searches for the causes of the
problem that has arisen either in one part of the system or in the interrelational
parts.

Interdisciplinary groups
2. The team performing the operational research is drawn from different
disciplines. The disciplines could include mathematics, psychology, statistics,
physics, economics and engineering. The knowledge of all the people involved
aids the research and preparation of the scientific model.

Application of Scientific Methodology


3. OR extensively uses scientific means and methods to solve problems. Most
OR studies cannot be conducted in laboratories, and the findings cannot be
applied to natural environments. Therefore, scientific and mathematical
models are used for studies. Simulation of these models is carried out, and the
findings are then studied with respect to the real environment.
New Problems Revealed
4. Finding a solution to a problem in OR uncovers additional problems. To
obtain maximum benefits from the study, ongoing and continuous research is
necessary. New problems must be pursued immediately to be resolved. A
company looking to reduce costs in manufacturing might discover in the
process that it needs to buy one more component to manufacture the end
product. Such a scenario would result in unexpected costs and budget
overruns. Ensuring flexibility for such contingencies is a key characteristic of
OR.

Provides Quantitative Answers


5. The solutions found by using operations research are always quantitative. OR
considers two or more options and emphasizes the best one. The company
must decide which option is the best alternative for it.

Human Factors
6. In other forms of quantitative research, human factors are not considered, but
in OR, human factors are a prime consideration. People involved in the
process may become sick, which would affect the company's output.

The scientific method in OR study generally involves


the following three phases –
(i)Judgement Phase
(ii)Research Phase
(iii)Action Phase

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