Introduction To Operation Research
Introduction To Operation Research
1.2 History of OR
No science has ever been born on a specific day. Operations research is no exception. Its roots are as old
as science and society. Though the roots of OR extend to even early 1800s, it was in 1885 when Frederick
W. Taylor emphasized the application of scientific analysis to methods of production, that the real start
took place.
During World War II, the military management in England called on a team of scientists to study the
strategic and tactical problems of air and land defense. This team was under the direction of Professor
P.M.S. Blackett of the University of Manchester and a former naval officer. “Blackett's circus”, as the group
was called, included three physiologists, two mathematical physicists, one astrophysicist, one army officer,
one surveyor, one general physicist, and two mathematicians. Many of these problems were of executive-
type. The objective was to find out the most effective allocation of limited military resources to the various
military operations and to the activities within each operation. The application included the effective use
of the newly invented radar, allocation of British Air Force Planes to missions and the determination of
best patterns for searching submarines. This group of scientists formed the first OR team.
The name operations research (or operational research) was apparently coined in 1940 because the team
was carrying out research on (military) operations. The encouraging results of these efforts led to the
formation of more such teams in British Armed Services and the use of such scientific teams soon spread
to Western Allies - the United States, Canada, and France. However this science of operations research
originated in England, the United States soon took the lead. In the United States, these OR teams helped
in developing strategies for mining operations, inventing new flight patterns and planning of sea mines.
Post - World War II: Immediately after the war, the success of military teams attracted the attention of
industrial managers who were seeking solutions to their problems. Industrial operations research in the
U.K. and U.S.A. developed along different lines. In the U.K. the critical economic situation required a drastic
increase in production efficiency and creation of new markets. Nationalization of a few key industries
further increased the potential field for OR. Consequently OR soon spread from military to government,
industrial, social and economic planning.
Today, the impact of operations research can be felt in many areas. This is shown by the ever-increasing
number of educational institutions offering this subject at degree level. The fast increasing number of
management consulting firms speaks of the popularity of the subject. OR activities have spread to diverse
fields such as hospitals, libraries, city planning, transportation systems, crime investigation, etc. Some of
the Indian organizations using OR techniques are Indian - Airlines, Railways, Defence Organizations,
Fertilizer Corporation of India, Delhi Cloth Mills, Tata Iron and Steel Co., etc.
1.4 Characteristics of OR
From the definitions of OR following characteristics can be extracted out.
1. Use of Interdisciplinary Teams
OR involves many numbers of variables and constraints. For a single person, it is not possible to
understand and analyze justifiably. Hence people from various disciplines are required to understand the
OR problem, who applies their special knowledge acquired through experience to get a better view of cause
and effects of the events in the problem and to get a better solution to the problem. This type of team
approach will reduce the risk of making wrong decisions.
2. Complete System Orientation
A business may be considered as a system having various sub-systems. The decision made by any
subsystem will have its effect on other sub-systems. When dealing with OR problems, one has to consider
the entire system, and characteristics of subsystems, the inter-relationship between sub-systems and then
analyze the problem, search for a suitable model and get the solution for the problem. Hence it can be
concluded that OR is a Systems Approach rather than an individual approach.
1.5 Phases of OR
An OR study is rooted in teamwork, where the OR analysts and the client work side by side. The OR
analysts’ expertise in modeling must be complemented by the experience and cooperation of the client
for whom the study is being carried out.
The principal phases for implementing OR in practice include
1. Definition of the problem.
2. Construction of the model.
3. Solution of the model.
4. Validation of the model.
5. Implementation of the solution.
1. Definition of the problem
Problem definition involves defining the scope of the problem under investigations. This function should
be carried out by the entire OR team. The aim is to identify three principal elements of the decision
problem: (1) description of the decision alternatives, (2) determination of the objective of the study, and
(3) specification of the limitations under which the modeled system operates.
2. Construction of the model
Model construction entails an attempt to translate the problem definition into mathematical relationships.
If the resulting model fits one of the standard mathematical models, such as linear programming, we can
usually reach a solution by using available algorithms. Alternatively, if the mathematical relationships are
too complex to allow the determination of an analytic solution, the OR team may opt to simplify the model
and use a heuristic approach, or they may consider the use of simulation, if appropriate. In some cases,
mathematical, simulation, and heuristic models may be combined to solve the decision problem.
3. Solution of the model
The model solution is by far the simplest of all OR phases because it entails the use of well-defined
optimization algorithms. An important aspect of the model solution phase is sensitivity analysis. It deals
with obtaining additional information about the behavior of the optimum solution when the model
undergoes some parameter changes. Sensitivity analysis is particularly needed when the parameters of
1.6 Scope of OR
When we broaden the scope of OR, we find that it has really been practiced for hundreds of years even
before World War II. Whenever there is a problem of optimization, there is scope for the application of OR.
Its techniques have been used in a wide range of situations:
1. In Industry
In the field of industrial management, there is of a chain of problems starting from the purchase of raw
materials to the dispatch of finished goods. The management is interested in having an overall view of the
method of optimizing profits. In order to make a decision on a scientific basis, the OR team will have to
consider various alternative methods of producing the goods and the return in each case. OR study should
also point out the possible changes in the overall structure like the installation of a new machine, the
introduction of more automation, etc. OR has been successfully applied in industry in the fields of
production, blending, product mix, inventory control, demand forecast, sale and purchase, transportation,
repair and maintenance, scheduling and sequencing, planning, scheduling and control of projects and
scores of other associated areas.
2. In Defence
OR has a wide scope for application in defense operations. In modern warfare, the defense operations are
carried out by a number of different agencies, namely airforce, army, and navy. The activities performed
by each of them can be further divided into sub-activities viz. operations, intelligence, administration,
training and the like. There is thus a need to coordinate the various activities involved in order to arrive at
optimum strategy and to achieve consistent goals. Operations research, conducted by a team of experts
from all the associated fields, can be quite helpful to achieve the desired results.
1.7 Limitations of OR
The magnitude of Computations:
OR tries to find out optimal solution taking into account all the factors. In modern society, these factors
are enormous and expressing them in quantity and establishing relationships among these require
voluminous calculations which can only be handled by machines.
Non-Quantifiable Factors:
OR provides a solution only when all elements related to a problem can be quantified. All relevant variables
do not lend themselves to quantification. Factors which cannot be quantified, find no place in OR Models
in OR do not take into account qualitative factors or economical factors which may be quite important.
Distance between Manager and Operations Research:
OR being a specialist’s job requires a mathematician or a statistician, who might not be aware of the
business problems. Similarly, a manager fails to understand the complex working of OR. Thus there is a
gap between the two. Management itself may offer a lot of resistance due to conventional thinking.