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Introduction To Operation Research

Introduction, History of OR, Phases of OR, Characteristics of OR, Applications of OR, Decision making and OR
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0% found this document useful (0 votes)
176 views8 pages

Introduction To Operation Research

Introduction, History of OR, Phases of OR, Characteristics of OR, Applications of OR, Decision making and OR
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 8

Contents

1.1 Introduction ................................................................................................................................ 1.2


1.2 History of OR............................................................................................................................... 1.2
1.3 Definitions of Operation Research ............................................................................................ 1.3
1.4 Characteristics of OR ................................................................................................................. 1.3
1.5 Phases of OR ............................................................................................................................. 1.4
1.6 Scope of OR ................................................................................................................................ 1.5
1.7 Limitations of OR ........................................................................................................................ 1.6
1.8 Operations Research and Decision Making ............................................................................. 1.7
1.1 Introduction
The subject operations research is a branch of mathematics - especially applied mathematics used to
provide a scientific base for management to take timely and effective decisions to their problems. It tries
to avoid the dangers of taking decisions merely by guessing or by using thumb rules. Management is a
multidimensional and dynamic concept. It is multidimensional because management problems and their
solutions have consequences in several dimensions, such as human, economic social and political fields.
As the manager operates his system in an environment, which will never remain static, hence is dynamic
in nature. Hence any manager, while making decisions, considers all aspects in addition to the economic
aspect, so that his solution should be useful in all aspects. The general approach is to analyze the problem
in economic terms and then implement the solution if it does not aggressive or violent to other aspects
like human, social and political constraints.

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.

Prof. Darshit S. Dadhaniya, Department of Mechanical Engineering


1.2
Operation Research (2171901) | Unit-1 Introduction to OR
1.3 Definitions of Operation Research
Many definitions of OR. have been suggested from time to time. Some of the different definitions are:
1. OR. is an experimental and applied science developed to observing, understanding and predicting
the behavior of purposeful man-machine systems and OR. workers are actively engaged in applying
this knowledge to practical problems in business, government, and society.
OR. Society of America
2. OR. is a scientific method of providing executive departments with a quantitative basis for decision
regarding the operations under their control.
Morse and Kimbal (1946)
3. OR. is a management activity pursued in two complementary ways – one half by the free and bold
exercise of commonsense untrammeled by any routine, and the other half by the application of a
repertoire of well established pre-created methods and techniques.
Jagjit Singh (1968)
4. OR. is the application of scientific methods, techniques, and tools to problems involving the
operations of systems so as to provide these in control of the operations with optimum solutions
to the problem.
Churchman, Acoff, Arnoff (1957)
5. OR. is a scientific approach to problem-solving for executive management.
H.M. Wagner
6. OR. may be described as a scientific approach to decision making that involves the operations of
an organizational system.
Hiller and Lieberman
7. Operations Research is the art of winning wars without actually fighting.
Aurther Clarke
8. Operations Research is the art of giving bad answers to problems where otherwise worse answers
are given.
T.L. Satty

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.

Prof. Bhavin J. Vegada, Department of Mechanical Engineering


1.3
Engineering Thermodynamics (3131905) | Unit-1 Basic Concepts
3. Involvement of Scientific Method
Various scientific methods are involved in OR to solve different kinds of problems. Scientific methods are
based on derived logics and empirical relations from past experience. So the application of scientific
methods leads to logical and sequential results, which are not depending on irrelevant assumptions.
4. Improvement in Quality of Decisions
OR provides various alternatives and let the user to select an optimal choice. This will definitely help him
in making better and quick decisions. Hence, the quality of a decision can be improved.
5. Uncovering Hidden Problems
Sometimes, during solving the adopted problem, new problems are uncovered. These problems are mostly
overlooked. For example, the excess inventory provides flexibilities in managing the orders but on other
hands, it hides many problems related to manufacturing, human, finance, etc. As an uncovered problem
can also affect the existing problem, it is very essential to solve these problems using different OR
techniques.

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

Prof. Darshit S. Dadhaniya, Department of Mechanical Engineering


1.4
Operation Research (2171901) | Unit-1 Introduction to OR
the model cannot be estimated accurately. In these cases, it is important to study the behavior of the
optimum solution in the neighborhood of the estimated parameters.
4. Validation of the model
Model validity checks whether or not the proposed model does what it purports to do - that is, does it
predict adequately the behavior of the system under study? Initially, the OR team should be convinced that
the model’s output does not include “surprises”. In other words, does the solution make sense? Are the
results intuitively acceptable? On the formal side, a common method for checking the validity of a model
is to compare its output with historical output data. The model is valid if, under similar input conditions, it
reasonably duplicates past performance. Generally, however, there is no assurance that future
performance will continue to duplicate past behavior. Also, because the model is usually based on careful
examination of past data, the proposed comparison is usually favorable.
5. Implementation of the solution
The objective of OR is not only to produce reports but to improve the system performance so the results
of the research must be implemented. For this, the solution obtained above should be translated into an
operating procedure which can be easily understood and applied by those who control the operations.
Changes needed in present procedures and resources must be clearly indicated and should be
implemented. After the solution has been applied to the system, OR group must study the response of the
system to the changes made. The solution obtained should, therefore, be continuously reviewed, modified
and updaed according to the changing situation.

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.

Prof. Bhavin J. Vegada, Department of Mechanical Engineering


1.5
Engineering Thermodynamics (3131905) | Unit-1 Basic Concepts
3. Planning
In both developing and developed economies, the OR approach is equally applicable. In developing
economies, there is a great scope of developing an OR approach towards planning. The basic problem is
to orient the planning so that there is maximum growth of per capita income in the shortest possible time,
by taking into consideration the national goals and restrictions imposed by the country. The basic problem
in most of the countries in Asia and Africa is to remove poverty and hunger as quickly as possible. There
is, therefore, great scope for economists, statisticians, administrators, technicians, politicians, and
agriculture experts working together to solve this problem with an OR approach.
4. Agriculture
OR approach needs to be equally developed in the agriculture sector on a national or international basis.
With the population explosion and consequent shortage of food, every country is facing the problem of
optimum allocation of land to various crops in accordance with climatic conditions and available facilities.
The problem of the optimal distribution of water from the various water resources is faced by each
developing country and a good amount of scientific work can be done in this direction.
5. Public Utilities
OR methods can also be applied in big hospitals to reduce waiting time of outdoor patients and to solve
the administrative problems. Monte Carlo methods can be applied in the area of transport to regulate train
arrivals and their running times. Queuing theory can be applied to minimize congestion and passengers’
waiting time. OR is directly applicable to business and society. For instance, it is increasingly being applied
in L.I.C. office to decide the premium rates of various policies. It has also been extensively used in
petroleum, paper, chemical, metal processing, aircraft, rubber, transport and distribution, mining and textile
industries. OR approach is equally applicable to big and small organizations' For example, whenever a
departmental store faces a problem like employing additional sales girls, purchasing an additional van,
etc., techniques of OR can be applied to minimize cost and maximize the benefit for each such decision.
Thus we find that OR has a diversified and wide scope in the social, economic and industrial problems of
today.

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.

Prof. Darshit S. Dadhaniya, Department of Mechanical Engineering


1.6
Operation Research (2171901) | Unit-1 Introduction to OR
Money and Time Costs:
When the basic data are subjected to frequent changes, incorporating them into the OR models is a costly
affair. Moreover, a fairly good solution at present may be more desirable than a perfect OR solution
available after sometimes.
Implementation:
Implementation of decisions is a delicate task. It must take into account the complexities of human
relations and behavior. Sometimes resistance is offered only due to psychological factors.

1.8 Operations Research and Decision Making


Operations research or management science, as the name suggests, is the science of managing. As is
known, management is most of the time making decisions. It is thus a decision science which helps
management to make better decisions. The decision is, in fact, a pivotal word in managing. It is not only
the headache of management; rather all of us make decisions.
Decision-making can be improved and, in fact, there is a scope of large scale improvement. The essential
characteristics of all decisions are
a) Objectives,
b) Alternatives,
c) Influencing factors (constraints).
Once these characteristics are known, one can think of improving the characteristics so as to improve
upon the decisions itself.
For, example, if you have to reach at an exam centre within time, using various modes of conveyance. You
have three conveyance modes. First is to go alone in own car, second is to go by city bus and the third one
is to go in sharing car among friends. If you choose the first conveyance mode than you will definitely
reach the exam centre on time, but it will be definitely costly. If you choose the second conveyance mode,
it will be least costly, but it might take more time in traveling, so you might get late at the exam centre. If
you choose to travel by sharing among friends, it will let you reach within time, as well as it will be both
economical compared to the first options. Although the destination was reached by using any conveyance
mode, the best option is to select the third alternate, which is economical and object-oriented.
It is scientific quantification used in OR, which helps management to make better decisions. Thus in OR,
the essential features of decisions, namely, objectives, alternatives and influencing factors are expressed
in terms of scientific quantifications or mathematical equations. This gives rise to certain mathematical
relations, termed a whole as a mathematical model. Thus the essence of OR is such a mathematical
model.
However, with the advance of science and technology, decision-making in business and industry has
become highly complex and extremely difficult. The decision-maker is not only faced with a large number
of interacting variables, which at times do not lend themselves to neat quantitative treatment but also
finds them too numerous and dynamic. Above all he has to take into consideration the action of the
competitors over which he has no control. This complexity of decision-making make made the decision-
makers look for various aids in decision-making. It is in these situations that operations research comes
to our help.
The managers today make full use of the OR techniques in various functional areas. It has been realized
beyond doubt that intuition alone has no place in decision-making since such a decision becomes highly

Prof. Bhavin J. Vegada, Department of Mechanical Engineering


1.7
Engineering Thermodynamics (3131905) | Unit-1 Basic Concepts
questionable when it involves the choice among several alternatives. OR provides the management with
much-needed tools for improving the various decisions.

Prof. Darshit S. Dadhaniya, Department of Mechanical Engineering


1.8
Operation Research (2171901) | Unit-1 Introduction to OR

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