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Operations Research (OR) originated during World War II as a scientific approach to optimize resource allocation in military operations. It involves using analytical methods to improve decision-making in various sectors, including business and government. The discipline has evolved over time, incorporating mathematical models and techniques to address complex problems and enhance system performance.

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23 views4 pages

Split 20250224 1640

Operations Research (OR) originated during World War II as a scientific approach to optimize resource allocation in military operations. It involves using analytical methods to improve decision-making in various sectors, including business and government. The discipline has evolved over time, incorporating mathematical models and techniques to address complex problems and enhance system performance.

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nex.suppovds4460
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Operations Research

History of Operations Research


The term Operation Research has its origin during the Second World War. The
military management of England called a team of scientists to study the strategic
and tactical problems which could raise in air and land defence of the country. As
the resources were limited and those need to be fully but properly utilized. The
team did not involve actually in military operations like fight or attending war but
the team kept off the war but studying and suggesting various operations related
to war.

What is Operations Research?


Several definitions have been given

• Operations research (abbreviated as OR hereafter) is a scientific method of


providing executive departments with a quantitative basis for decisions
regarding the operations under their control: Morse and Kimbal (1944)
• OR is an analytical method of problem-solving and decision-making that is
useful in the management of organizations. In operations research,
problems are broken down into basic components and then solved in
defined steps by mathematical analysis.
• Operational Research (OR) is the use of advanced analytical techniques to
improve decision making. It is sometimes known as Operations Research,
Management Science or Industrial Engineering. People with skills in OR hold
jobs in decision support, business analytics, marketing analysis and logistics
planning – as well as jobs with OR in the title.
• As such a number of definitions can be found in literature, you can express
the term OR with the spirit mentioned in the literature.

1.1 Introduction to Operations Research (OR)


The term Operations Research (to be termed OR hereafter) describes the
discipline that is focused on the application of information technology for
informed decision-making. In other words, OR represents the study of optimal
resource allocation. The goal of OR is to provide rational bases for decision
making by seeking to understand and structure complex situations, and to utilise
this understanding to predict system behaviour and improve system
performance. Much of the actual work is conducted by using analytical and
numerical techniques to develop and manipulate mathematical models of
organisational systems that are composed of people, machines, and procedures.

1.1.1 Brief History of Operations Research

The term operations research (O.R.) was coined during World War II, when the
British military management called upon a group of scientists together to apply a
scientific approach in the study of military operations to win the battle. The main
Objectives was to allocate scarce resources in an effective manner to various
military operations and to the activities within each operation. The effectiveness
of operations research in military, inspired other government departments and
industries.

1.1.2 Indian Context of Operations Research

India used the techniques of operations research in the year of 1949 at


Hyderabad. In Hyderabad, a unit for operations research was set up names
Regional Research Institute. Later on, in 1953, another operations research unit
was established at Calcutta for national planning and survey names Indian
Statistical Institute. Various other Indian companies are using operations research
techniques for solving their problems of advertising, quality control,
transportations, planning and sales promotions.

1.1.3 Definitions of Operations Research


OR has been defined in various ways, however given below are a few opinions
about the definition of OR which have been changed along-with the development
of the subject.
In 1946 Morse & Kimbel has defined O. R. as:
“OR is a scientific method of providing executive departments with a quantitative
basis for decision regarding the operations under their control.”
In 1957, Churchmen Ackoff and Arnoff defined:

“OR is the application of scientific methods, techniques and tools to problems


involving the operations of systems so as to provide those in control of the
operations with optimum solutions to the problem.”

The operational research society of U.K. defines OR as:

“Operational Research is the application of the methods of science to complex


problems arising in the direction and management of large systems of men,
machines, materials and money in industry, business, government and defence.
The distinctive approach is to develop a scientific model of the system,
incorporating measurements of factors, such as chance and risk, with which to
compare the outcome of alternative decisions, strategies and controls. The
purpose is to help management determine its policies and actions scientifically.”

1.2 Phases of Operations Research

Formulate the problem: This is the most important process; it is generally lengthy
and time consuming. The activities that constitute this step are visits,
observations, research, etc. With the help of such activities, the O.R. scientist gets
sufficient information and support to proceed and is better prepared to formulate
the problem. This process starts with understanding of the organisational climate,
its Objectivess and expectations. Further, the alternative courses of action are
discovered in this step.

Models of Operations Research


A model is a representation of the reality. It is an idealised representation or
abstraction of a real life system. A model is helpful in decision making as it
provides a simplified description of complexities and uncertainties of a problem in
logical structure.
Physical model:• It includes all forms of diagrams, graphs and charts. They are
designed to deal with specific problems. They bring out significant factors and
inter-relationship in pictorial firm so as to facilitate analysis.
Mathematical model:• It is known as symbolic models also. It employs a set of
mathematical symbols to represent the decision variable of the system.
By nature of environment:• Deterministic model in which every thing is defined
and the results are certain, for instance: EOQ model; and probabilistic models
in which the input and output variables follow a probability distribution, for
instance: Games Theory.
By the extent of generality: • The two models belonging to this class are: general
models can be applied in general and does not pertain to one problem only, for
instance: Linear programming; and specific model is applicable under specific
condition only, for instance: Sales response curve or equation as a function of
advertising is applicable in the marketing function alone.

Steps of Operations Research


Following are the steps which are involved in solving any operations research
model:

Fig. 1.1 Steps involved in operations research

Management Applications of Operations Research?

• Finance budgeting and investment

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