OPERATION

S
RESEARCH
By Group 7
 OPERATIONS
RESEARCH
is a subfield of applied mathematics that uses advanced
mathematical principles or analytical methods to solve the
problems that business leaders and managers often
experience. It encourages businesspeople to use advanced
analytical tools to make more informed and effective
decisions for organizations.
This type of research has a variety of modern uses in
business, and it uses data mining, statistical analysis and
mathematical modeling to formulate solutions to a wide
variety of problems.
 ESSENTIALS
CHARACTERISTICS OF
OPERATION
Three essential characteristics ofRESEARCH
operations research are a
systems orientation, the use of interdisciplinary teams, and the
application of scientific method to the conditions under which
the research is conducted.
• Systems Orientation

The systems approach to problems recognizes that the behaviour of any

part of a system has some effect on the behaviour of the system as a
whole. Even if the individual components are performing well, however,
the system as a whole is not necessarily performing equally well.
 • The interdisciplinary team

Scientific and technological disciplines have proliferated rapidly in

the last 100 years. The proliferation, resulting from the enormous
increase in scientific knowledge, has provided science with a filing
system that permits a systematic classification of knowledge.

• Methodology

Until the 20th century, laboratory experiments were the principal

and almost the only method of conducting scientific research. But
large systems such as are studied in operations research cannot be
brought into laboratories.
OPERATION RESEARCH
PROCESS
The operations research process involves considering the different aspects
of a specific problem individually and solving them using a defined set of
steps. These steps may include:

• IDENTIFYING A PROBLEM THAT NEEDS SOLVING:

• DETERMINING THE CONSTRAINTS:
• CONSTRUCTING A MODEL BASED ON THE
PROBLEM:
• INCORPORATING DATA INTO THE MODEL:
• TESTING EACH POTENTIAL SOLUTION:
• IMPLEMENTING THE SOLUTION:
 PHASES OF OPERATIONS
• RESEARCH
Problem formulation
To formulate an operations research problem, a suitable
measure of performance must be devised, various possible
courses of action defined (that is, controlled variables and the
constraints upon them), and relevant uncontrolled variables
identified. To devise a measure of performance, objectives are
identified and defined, and then quantified. If objectives cannot
be quantified or expressed in rigorous (usually mathematical)
terms, most operations research techniques cannot be applied.
 PHASES OF OPERATIONS
• RESEARCH
Model construction
A model is a simplified representation of the real world
and, as such, includes only those variables relevant to the
problem at hand. A model of freely falling bodies, for
example, does not refer to the colour, texture, or shape of
the body involved. Furthermore, a model may not include
all relevant variables because a small percentage of these
may account for most of the phenomenon to be explained.
 PHASES OF OPERATIONS
•
RESEARCH
Deriving solutions from models

Procedures for deriving solutions from models are

either deductive or inductive. With deduction one
moves directly from the model to a solution in either
symbolic or numerical form. Such procedures are
supplied by mathematics; for example, the calculus. An
explicit analytical procedure for finding the solution is
called an algorithm.
 PHASES OF OPERATIONS
•
RESEARCH
Testing the model and the solution

A model may be deficient because it includes irrelevant

variables, excludes relevant variables, contains inaccurately
evaluated variables, is incorrectly structured, or contains
incorrectly formulated constraints. Tests for deficiencies of a
model are statistical in nature; their use requires knowledge
of sampling and estimation theory, experimental designs, and
the theory of hypothesis testing (see also statistics).
 PHASES OF OPERATIONS
RESEARCH
• Implementing and controlling the solution

The acceptance of a recommended solution by the responsible

manager depends on the extent to which he believes the solution to
be superior to alternatives. This in turn depends on his faith in the
researchers involved and their methods. Hence, participation by
managers in the research process is essential for success.

Operations researchers are normally expected to oversee

implementation of an accepted solution. This provides them with an
ultimate test of their work and an opportunity to make adjustments if
any deficiencies should appear in application.
EXAMPLES OF OPERATIONS
RESEARCH MODELS AND
APPLICATIONS
Resource allocation

Allocation problems involve the distribution of resources

among competing alternatives in order to minimize total costs
or maximize total return. Such problems have the following
components: a set of resources available in given amounts; a set
of jobs to be done, each consuming a specified amount of
resources; and a set of costs or returns for each job and
resource. The problem is to determine how much of each
resource to allocate to each job.
EXAMPLES OF OPERATIONS
RESEARCH MODELS AND
APPLICATIONS
Linear programming

Linear programming (LP) refers to a family of mathematical

optimization techniques that have proved effective in solving
resource allocation problems, particularly those found in
industrial production systems. Linear programming methods are
algebraic techniques based on a series of equations or
inequalities that limit a problem and are used to optimize a
mathematical expression called an objective function.
EXAMPLES OF OPERATIONS
RESEARCH MODELS AND
APPLICATIONS
Inventory control

Inventories include raw materials, component parts, work in process, finished

goods, packing and packaging materials, and general supplies. The control of
inventories, vital to the financial strength of a firm, in general involves
deciding at what points in the production system stocks shall be held and
what their form and size are to be. As some unit costs increase with inventory
size—including storage, obsolescence, deterioration, insurance, investment—
and other unit costs decrease with inventory size—including setup or
preparation costs, delays because of shortages, and so forth—a good part of
inventory management consists of determining optimal purchase or
production lot sizes and base stock levels that will balance the opposing cost
influences.
EXAMPLES OF OPERATIONS
RESEARCH MODELS AND
APPLICATIONS
Japanese approaches

In the 1970s several Japanese firms, led by the Toyota Motor

Corporation, developed radically different approaches to the
management of inventories. Coined the “just-in-time” approach, the
basic element of the new systems was the dramatic reduction of
inventories throughout the total production system. By relying on
careful scheduling and the coordination of supplies, the Japanese
ensured that parts and supplies were available in the right quantity, with
proper quality, at the exact time they were needed in the manufacturing
or assembly process.
EXAMPLES OF OPERATIONS
RESEARCH MODELS AND
APPLICATIONS
Replacement and maintenance
Replacement problems involve items that degenerate with use or with the passage
of time and those that fail after a certain amount of use or time. Items that
deteriorate are likely to be large and costly (e.g., machine tools, trucks, ships, and
home appliances). Nondeteriorating items tend to be small and relatively
inexpensive (e.g., light bulbs, vacuum tubes, ink cartridges). The longer a
deteriorating item is operated the more maintenance it requires to maintain
efficiency. Furthermore, the longer such an item is kept the less is its resale value
and the more likely it is to be made obsolete by new equipment. If the item is
replaced frequently, however, investment costs increase. Thus the problem is to
determine when to replace such items and how much maintenance (particularly
preventive) to perform so that the sum of the operating, maintenance, and
investment costs is minimized.
EXAMPLES OF OPERATIONS
RESEARCH MODELS AND
Queuing APPLICATIONS
A queue is a waiting line, and queuing involves dealing with items or
people in sequence. Thus, a queuing problem consists either of
determining what facilities to provide or scheduling the use of them. The
cost of providing service and the waiting time of users are minimized.
Examples of such problems include determining the number of checkout
counters to provide at a supermarket, runways at an airport, parking
spaces at a shopping centre, or tellers in a bank. Many maintenance
problems can be treated as queuing problems; items requiring repair are
like users of a service. Some inventory problems may also be formulated
as queuing problems in which orders are like users and stocks are like
service facilities.
EXAMPLES OF OPERATIONS
RESEARCH MODELS AND
APPLICATIONS
Job shop sequencing
In queuing problems, the order in which users waiting for
service are served is always specified. Selection of that order
so as to minimize some function of the time to perform all the
tasks is a sequencing problem. The performance measure may
account for total elapsed time, total tardiness in meeting
deadlines or due dates, and the cost of in-process inventories.
EXAMPLES OF OPERATIONS
RESEARCH MODELS AND
APPLICATIONS
Manufacturing progress function
Because of the enormous complexity of a typical mass
production line and the almost infinite number of changes that
can be made and alternatives that can be pursued, a body of
quantitative theory of mass production manufacturing systems
has not yet been developed. The volume of available
observational data is, however, growing, and qualitative facts are
emerging that may eventually serve as a basis for quantitative
theory. An example is the “manufacturing progress function.”
This was first recognized in the airframe industry.
EXAMPLES OF OPERATIONS
RESEARCH MODELS AND
APPLICATIONS
Network routing

A network may be defined by a set of points, or “nodes,” that

are connected by lines, or “links.” A way of going from one
node (the “origin”) to another (the “destination”) is called a
“route” or “path.” Links, which may be one-way or two-way,
are usually characterized by the time, cost, or distance required
to traverse them. The time or cost of traveling in different
directions on the same link may differ.
EXAMPLES OF OPERATIONS
RESEARCH MODELS AND
APPLICATIONS
Search problems
Search problems involve finding the best way to obtain information needed for a
decision. Though every problem contains a search problem in one sense,
situations exist in which search itself is the essential process; for example, in
auditing accounts, inspection and quality control procedures, in exploration for
minerals, in the design of information systems, and in military problems
involving the location of such threats as enemy ships, aircraft, mines, and
missiles.

Two kinds of error are involved in search: those of observation and those of
sampling. Observational errors, in turn, are of two general types: commission,
seeing something that is not there; and omission, not seeing something that is
there. In general, as the chance of making one of these errors is decreased, the
chance of making the other is increased.
THANK
YOU !